Cleveland Clinic Health System Obligated Group - FMSbonds.com

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