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WBMD » Topics » Negative conditions in the market for certain auction rate securities may result in WebMD incurring a loss on such investments

This excerpt taken from the WBMD 8-K filed Jul 2, 2009.
Negative conditions in the market for certain auction rate securities may result in WebMD incurring a loss on such investments
 
As of December 31, 2008, WebMD had a total of approximately $164.8 million (face value) of investments in certain auction rate securities (ARS). Those ARS had a book value of $133.6 million. The types of ARS investments that WebMD owns are backed by student loans, 97% of which are guaranteed under the Federal Family Education Loan Program (FFELP), and all had credit ratings of AAA or Aaa when purchased. WebMD does not own any other type of ARS investments.
 
Since February 2008, negative conditions in the regularly held auctions for these securities have prevented holders from being able to liquidate their holdings through that type of sale. In the event WebMD needs to or wants to sell its ARS investments, it may not be able to do so until a future auction on these types of investments is successful or until a buyer is found outside the auction process. If potential buyers are unwilling to purchase the investments at their carrying amount, WebMD would incur a loss on any such sales. In addition, the credit ratings on some of the ARS investments in our portfolio have been downgraded, and there may be additional such rating downgrades in the future. If uncertainties in the credit and capital markets continue, these markets deteriorate further or ARS investments in our portfolio experience additional credit rating downgrades, there could be further fair value adjustments or other-than-temporary impairments in the carrying value of our ARS investments.
 
This excerpt taken from the WBMD 10-Q filed May 11, 2009.
Negative conditions in the market for certain auction rate securities may result in WebMD incurring a loss on such investments
 
As of March 31, 2009, WebMD had a total of approximately $164.2 million (face value) of investments in certain auction rate securities (ARS). Those ARS had a book value of $127.0 million. The types of ARS investments that WebMD owns are backed by student loans, 97% of which are guaranteed under the Federal Family Education Loan Program (FFELP), and all had credit ratings of AAA or Aaa when purchased. WebMD does not own any other type of ARS investments.
 
Since February 2008, negative conditions in the regularly held auctions for these securities have prevented holders from being able to liquidate their holdings through that type of sale. In the event WebMD needs to or wants to sell its ARS investments, it may not be able to do so until a future auction on these types of investments is successful or until a buyer is found outside the auction process. If potential buyers are unwilling to purchase the investments at their carrying amount, WebMD would incur a loss on any such sales. In addition, the credit ratings on some of the ARS investments in our portfolio have been downgraded, and there may be additional such rating downgrades in the future. If uncertainties in the credit and capital markets continue, these markets deteriorate further or ARS investments in our portfolio experience additional credit rating downgrades, there could be further fair value adjustments or other-than-temporary impairments in the carrying value of our ARS investments.
 
These excerpts taken from the WBMD 10-K filed Feb 27, 2009.
Negative conditions in the market for certain auction rate securities may result in WebMD incurring a loss on such investments
 
As of December 31, 2008, WebMD had a total of approximately $164.8 million (face value) of investments in certain auction rate securities (ARS). Those ARS had a book value of $133.6 million. The types of ARS investments that WebMD owns are backed by student loans, 97% of which are guaranteed under the Federal Family Education Loan Program (FFELP), and all had credit ratings of AAA or Aaa when purchased. WebMD does not own any other type of ARS investments.
 
Since February 2008, negative conditions in the regularly held auctions for these securities have prevented holders from being able to liquidate their holdings through that type of sale. In the event WebMD needs to or wants to sell its ARS investments, it may not be able to do so until a future auction on these types


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of investments is successful or until a buyer is found outside the auction process. If potential buyers are unwilling to purchase the investments at their carrying amount, WebMD would incur a loss on any such sales. In addition, the credit ratings on some of the ARS investments in our portfolio have been downgraded, and there may be additional such rating downgrades in the future. If uncertainties in the credit and capital markets continue, these markets deteriorate further or ARS investments in our portfolio experience additional credit rating downgrades, there could be further fair value adjustments or other-than-temporary impairments in the carrying value of our ARS investments.
 
Negative
conditions in the market for certain auction rate securities may
result in WebMD incurring a loss on such
investments


 



As of December 31, 2008, WebMD had a total of approximately
$164.8 million (face value) of investments in certain
auction rate securities (ARS). Those ARS had a book value of
$133.6 million. The types of ARS investments that WebMD
owns are backed by student loans, 97% of which are guaranteed
under the Federal Family Education Loan Program (FFELP), and all
had credit ratings of AAA or Aaa when purchased. WebMD does not
own any other type of ARS investments.


 



Since February 2008, negative conditions in the regularly held
auctions for these securities have prevented holders from being
able to liquidate their holdings through that type of sale. In
the event WebMD needs to or wants to sell its ARS investments,
it may not be able to do so until a future auction on these
types





40




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of investments is successful or until a buyer is found outside
the auction process. If potential buyers are unwilling to
purchase the investments at their carrying amount, WebMD would
incur a loss on any such sales. In addition, the credit ratings
on some of the ARS investments in our portfolio have been
downgraded, and there may be additional such rating downgrades
in the future. If uncertainties in the credit and capital
markets continue, these markets deteriorate further or ARS
investments in our portfolio experience additional credit rating
downgrades, there could be further fair value adjustments or
other-than-temporary impairments in the carrying value of our
ARS investments.


 




This excerpt taken from the WBMD 10-Q filed Nov 10, 2008.
Negative conditions in the market for certain auction rate securities may result in WebMD incurring a loss on such investments
 
As of September 30, 2008, WebMD had a total of approximately $165.5 million (face value) of investments in certain auction rate securities (ARS). Those ARS had a book value of $132.8 million, net of an impairment charge taken during the quarter ended March 31, 2008. The types of ARS investments that WebMD owns are backed by student loans, 97% of which are guaranteed under the Federal Family Education Loan Program (FFELP), and all had credit ratings of AAA or Aaa when purchased. WebMD does not own any other type of ARS investments.
 
Since February 2008, negative conditions in the regularly held auctions for these securities have prevented holders from being able to liquidate their holdings through that type of sale. In the event WebMD needs to or wants to sell its ARS investments, it may not be able to do so until a future auction on these types of investments is successful or until a buyer is found outside the auction process. If potential buyers are unwilling to purchase the investments at their carrying amount, WebMD would incur a loss on any such sales.
 
This excerpt taken from the WBMD 10-Q filed Aug 11, 2008.
Negative conditions in the market for certain auction rate securities may result in WebMD incurring a loss on such investments
 
As of June 30, 2008, WebMD had a total of approximately $167.5 million (face value) of investments in certain auction rate securities (ARS). Those ARS had a book value of $138.8 million, net of an impairment charge taken during the quarter ended March 31, 2008. The types of ARS investments that WebMD owns are backed by student loans, 97% of which are guaranteed under the Federal Family Education Loan Program (FFELP), and all had credit ratings of AAA or Aaa when purchased. WebMD does not own any other type of ARS investments.


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Since February 2008, negative conditions in the regularly held auctions for these securities have prevented holders from being able to liquidate their holdings through that type of sale. In the event WebMD needs to or wants to sell its ARS investments, it may not be able to do so until a future auction on these types of investments is successful or until a buyer is found outside the auction process. If potential buyers are unwilling to purchase the investments at their carrying amount, WebMD would incur a loss on any such sales.
 
This excerpt taken from the WBMD 10-Q filed May 12, 2008.
Negative conditions in the market for certain auction rate securities may result in WebMD incurring a loss on such investments
 
As of March 31, 2008, WebMD had a total of approximately $168.4 million (face value) of investments in certain auction rate securities (ARS). The types of ARS investments that WebMD owns are backed by student loans, 97% of which are guaranteed under the Federal Family Education Loan Program (FFELP), and all had credit ratings of AAA or Aaa when purchased. WebMD does not own any other type of ARS investments.
 
Recent negative conditions in the regularly held auctions for these securities have prevented holders from being able to liquidate their holdings through that type of sale. As a result, WebMD has determined that the fair value of the ARS as of March 31, 2008 was $141.0 million. Accordingly, WebMD has recorded an impairment charge of $27.4 million related to these securities in its results for the quarter ended March 31, 2008. In the event WebMD needs to or wants to sell its ARS investments, it may not be able to do so until a future auction on these types of investments is successful or until a buyer is found outside the auction process. If potential buyers are unwilling to purchase the investments at their carrying amount, WebMD would incur a loss on any such sales.
 

EXCERPTS ON THIS PAGE:

8-K
Jul 2, 2009
10-Q
May 11, 2009
10-K (2 sections)
Feb 27, 2009
10-Q
Nov 10, 2008
10-Q
Aug 11, 2008
10-Q
May 12, 2008

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