This excerpt taken from the CF 10-Q filed Apr 30, 2009.
As of March 31, 2009, our short-term investments of $35.2 million consisted of U.S. Treasury Bills with original maturities between three and nine months.
These excerpts taken from the CF 10-K filed Feb 27, 2008.
We had short-term investments of $494.5 million as of December 31, 2007 and $300.2 million as of December 31, 2006. In 2007, our short-term investments generally were available-for-sale tax exempt auction rate securities. Auction rate securities primarily are debt instruments with long-term maturities for which interest rates are reset periodically through an auction process, which typically occurs every 7 to 35 days. The auction process results in the interest rate being reset on the underlying securities until the next reset or auction date. This date is also referred to as the remarketing date, since the holder of the instrument can decide at each auction date to continue to hold the security or allow others to bid for it resulting in liquidation of the original holder's position. Parties bid for these instruments and the lowest interest rate that places all of the securities offered for auction becomes the interest rate earned until the next auction date. A failed auction occurs when there are insufficient bids for the number of instruments being offered. When a failed auction occurs, the present holders of the instruments continue to hold them until the next auction date. Upon a failed auction, the instrument carries an interest rate based upon certain predefined formulas or a fixed rate.
On December 31, 2007, the auction rate securities that we held were issued by various state or local governmental entities, including securities that are backed by student loans that are guaranteed under the Federal Family Education Loan Program. Through February 5, 2008, we had not experienced any failed auctions in these securities and subsequent to December 31, 2007 through February 5, 2008, we sold certain of these investments through the auction process. In February 2008, the market for these securities began to show signs of illiquidity and auctions for several securities failed on their scheduled auction dates. As a result, we continue to hold investments in certain of these securities. These investments, for which auctions have failed, are no longer liquid investments and we will not be able to access these funds until such time as an auction of these investments is successful or a buyer is found outside of the auction process. In accordance with our policies, we review the underlying securities and assess the creditworthiness of these investments. In each case, our review found these investments to be investment grade and in compliance with our investment policy.
At February 22, 2008, we continue to hold $276 million of investments in auction rate securities and for $159 million of this amount, the most recent auction failed. We believe that the underlying credit quality of the assets supporting the auction rate securities has not been impacted by the current market illiquidity. Currently, the market continues to show signs of illiquidity and we have not assessed the impact of the illiquid market on the value of the securities. It is reasonably possible that a change
CF INDUSTRIES HOLDINGS, INC.
in the estimated value of these instruments could occur after an evaluation is completed in the future. For those instruments with recent failed auctions, we believe we have the ability to hold these securities until market liquidity returns and the auction process resumes, and we presently intend to hold the securities until such time. We do not believe the current market liquidity issues in these securities present any operating liquidity issues for the Company.
We believe that our cash, cash equivalents, short term investments, operating cash flow, and credit available under our credit facilities are adequate to fund our cash requirements for the foreseeable future.
We had short-term investments of $494.5 million as of December 31, 2007 and $300.2 million as of December 31, 2006. In 2007, our short-term
CF INDUSTRIES HOLDINGS, INC.