REDEMPTION SETTLEMENT ASSETS

3 Months Ended

Mar. 31, 2020

REDEMPTION SETTLEMENT ASSETS

REDEMPTION SETTLEMENT ASSETS

9. REDEMPTION SETTLEMENT ASSETS

Redemption settlement assets consist of restricted cash and securities available-for-sale and are designated for settling redemptions by collectors of the AIR MILES Reward Program in Canada under certain contractual relationships with sponsors of the AIR MILES Reward Program. The principal components of redemption settlement assets, which are carried at fair value, are as follows:

	March 31, 2020								December 31, 2019
		Amortized	Unrealized		Unrealized					Amortized	Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value		Cost		Gains		Losses		Fair Value
	(in millions)
Restricted cash	$	55.9	$	—	$	—	$	55.9	$	39.3	$	—	$	—	$	39.3
Mutual funds		22.9		—		—		22.9		25.1		—		—		25.1
Corporate bonds		490.7		3.0		(4.5)		489.2		536.0		2.4		(2.0)		536.4
Total	$	569.5	$	3.0	$	(4.5)	$	568.0	$	600.4	$	2.4	$	(2.0)	$	600.8

The following tables show the unrealized losses and fair value for those investments that were in an unrealized loss position as of March 31, 2020 and December 31, 2019, aggregated by investment category and the length of time that individual securities have been in a continuous loss position:

	March 31, 2020
	Less than 12 months				12 Months or Greater				Total
			Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(in millions)
Corporate bonds	$	171.8	$	(3.6)	$	116.8	$	(0.9)	$	288.6	$	(4.5)
Total	$	171.8	$	(3.6)	$	116.8	$	(0.9)	$	288.6	$	(4.5)

	December 31, 2019
	Less than 12 months				12 Months or Greater				Total
			Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(in millions)
Corporate bonds	$	166.6	$	(1.3)	$	155.1	$	(0.7)	$	321.7	$	(2.0)
Total	$	166.6	$	(1.3)	$	155.1	$	(0.7)	$	321.7	$	(2.0)

The amortized cost and estimated fair value of the securities at March 31, 2020 by contractual maturity are as follows:

	Amortized		Estimated
	Cost		Fair Value
	(in millions)
Due in one year or less	$	121.9	$	121.6
Due after one year through five years		384.4		383.3
Due after five year through ten years		7.3		7.2
Total	$	513.6	$	512.1

Market values were determined for each individual security in the investment portfolio. Effective January 1, 2020, the Company adopted ASC 326, which replaced the other-than-temporary impairment model for available-for-sale debt securities. For available-for-sale debt securities in which fair value is less than cost, ASC 326 requires that credit-related impairment, if any, be recognized through an allowance for credit losses and adjusted each period for changes in credit risk. The Company typically invests in highly-rated securities with low probabilities of default and has the intent and ability to hold the investments until maturity, and the Company performs an assessment each period for credit-related impairment. As of March 31, 2020, the Company does not consider its investments to be impaired.

There were no realized gains or losses from the sale of investment securities for the three months ended March 31, 2020. Realized losses from the sale of investment securities for the three months ended March 31, 2019 were de minimis.