Cleveland Clinic Health System Obligated Group - FMSbonds.com
Cleveland Clinic Health System Obligated Group - FMSbonds.com Cleveland Clinic Health System Obligated Group - FMSbonds.com
Cleveland Clinic Health SystemNotes to Consolidated Financial Statements (continued)4. Cash, Cash Equivalents, and InvestmentsThe composition of cash, cash equivalents, and investments at December 31, 2007 and 2006 is asfollows (in thousands):2007 2006Cash and cash equivalents $ 745,073 $ 736,390Fixed income securities:U.S. Government 62,867 47,391U.S. Government agencies 63,805 119,240U.S. Corporate 251,929 222,517U.S. Government agencies asset-backed securities 18,193 137,274Corporate asset-backed securities 33,676 17,257Foreign 82,984 106,380Common and preferred stocks:U.S. 895,305 730,750Foreign 202,331 223,820Alternative investments:Venture capital 39,858 28,899Hedge funds 431,827 314,025Private equities 29,399 5,215Real estate 56,294 6,258Total cash, cash equivalents, and investments $ 2,913,541 $ 2,695,416Investments are primarily maintained in a master trust fund administered using a bank as trustee.External investment managers are contracted to manage the investment of the portfolio assets,which have investment advisors. Of these investment managers, ten managers focus on equityinvestments, one manager focuses on fixed income investments and 44 managers focus on directalternative investments (venture capital, hedge funds, private equity, and real estate). Thealternative investments have separate administrators and custodian arrangements. Alternativeinvestments also includes seven limited partnership holdings in which the System investsdirectly. Included in fixed income securities were $220.9 million and $220.2 million ofinvestments in collective trusts at December 31, 2007 and 2006, respectively. Included incommon and preferred stocks were $128.0 million and $13.3 million of investments in collectivetrusts at December 31, 2007 and 2006, respectively.18
Cleveland Clinic Health SystemNotes to Consolidated Financial Statements (continued)4. Cash, Cash Equivalents, and Investments (continued)The System has an arrangement with its investment custodian whereby certain securities in theSystem’s portfolio were loaned to other institutions generally for a short period of time. TheSystem receives as collateral the market value of securities borrowed plus a premiumapproximating 3% of the market value of those securities. At December 31, 2007 and 2006,investment securities with an aggregate market value of $349.7 million and $202.7 million,respectively, were loaned to various brokers and are returnable on demand. In accordance withSFAS No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishmentof Liabilities, the System recorded the collateral received as both a current asset and a currentliability since the System is obligated to return the collateral upon the return of the borrowedsecurities.5. Other Current Assets and Liabilities and Other Noncurrent Assets and LiabilitiesOther current and noncurrent assets at December 31, 2007 and 2006 consist of the following (inthousands):2007 2006Current:Securities lending collateral (Note 4) $ 359,684 $ 208,774Research and other receivables 74,036 63,801Inventories 61,394 63,166Pledge receivable current (Note 7) 61,114 47,107Prepaid expenses 14,214 14,119Total other current assets $ 570,442 $ 396,9672007 2006Noncurrent:Prepaid benefit cost (Note 12) $ – $ 110,426Deferred compensation plan assets 29,698 22,286Unamortized bond financing costs 22,032 22,874Investments in affiliates 13,333 18,492Other 9,986 25,912Total other assets $ 75,049 $ 199,99019
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- Page 179 and 180: period of three months from the com
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- Page 183 and 184: direct, express or charitable trust
- Page 185 and 186: Rate Hedge” for purposes of this
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<strong>Cleveland</strong> <strong>Clinic</strong> <strong>Health</strong> <strong>System</strong>Notes to Consolidated Financial Statements (continued)4. Cash, Cash Equivalents, and InvestmentsThe <strong>com</strong>position of cash, cash equivalents, and investments at December 31, 2007 and 2006 is asfollows (in thousands):2007 2006Cash and cash equivalents $ 745,073 $ 736,390Fixed in<strong>com</strong>e securities:U.S. Government 62,867 47,391U.S. Government agencies 63,805 119,240U.S. Corporate 251,929 222,517U.S. Government agencies asset-backed securities 18,193 137,274Corporate asset-backed securities 33,676 17,257Foreign 82,984 106,380Common and preferred stocks:U.S. 895,305 730,750Foreign 202,331 223,820Alternative investments:Venture capital 39,858 28,899Hedge funds 431,827 314,025Private equities 29,399 5,215Real estate 56,294 6,258Total cash, cash equivalents, and investments $ 2,913,541 $ 2,695,416Investments are primarily maintained in a master trust fund administered using a bank as trustee.External investment managers are contracted to manage the investment of the portfolio assets,which have investment advisors. Of these investment managers, ten managers focus on equityinvestments, one manager focuses on fixed in<strong>com</strong>e investments and 44 managers focus on directalternative investments (venture capital, hedge funds, private equity, and real estate). Thealternative investments have separate administrators and custodian arrangements. Alternativeinvestments also includes seven limited partnership holdings in which the <strong>System</strong> investsdirectly. Included in fixed in<strong>com</strong>e securities were $220.9 million and $220.2 million ofinvestments in collective trusts at December 31, 2007 and 2006, respectively. Included in<strong>com</strong>mon and preferred stocks were $128.0 million and $13.3 million of investments in collectivetrusts at December 31, 2007 and 2006, respectively.18