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WBMD » Topics » Negative conditions in the market for certain investments may result in us incurring a loss on such investmentsThese excerpts taken from the WBMD 10-K filed Feb 29, 2008. Negative
conditions in the market for certain investments may result in
us incurring a loss on such investments
As of the date of this Annual Report, WebMD currently has a
total of approximately $327 million in consolidated cash,
cash equivalents and marketable securities, which includes
approximately $169 million 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,
we are in the process of evaluating the extent of any impairment
in its ARS investments resulting from the current lack of
liquidity; however, we are not yet able to quantify the amount
of any impairment. 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, we would incur a loss on any such sales.
Negative conditions in the market for certain investments may result in us incurring a loss on such investments As of the date of this Annual Report, WebMD currently has a total of approximately $327 million in consolidated cash, cash equivalents and marketable securities, which includes approximately $169 million 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, we are in the process of evaluating the extent of any impairment in its ARS investments resulting from the current lack of liquidity; however, we are not yet able to quantify the amount of any impairment. 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, we would incur a loss on any such sales. | EXCERPTS ON THIS PAGE:
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