Investment Portfolio

12 Months Ended

Dec. 31, 2020

The Company's portfolio is invested in cash and cash equivalents, interest-bearing investments and available-for-sale investments as described in Note 2 — Summary of Significant Accounting Policies. The following table shows the components of the investment portfolio as of December 31:


(Amounts in millions)	2020		2019
Cash	$	2,076.8	$	1,675.4
Money market securities	2.5		2.5

Cash and cash equivalents (1)	2,079.3		1,677.9
Interest-bearing investments	991.2		985.9
Available-for-sale investments	3.5		4.5
Total investment portfolio	$	3,074.0	$	2,668.3

(1) For purposes of the disclosure of the investment portfolio as a whole, the cash and cash equivalents balance includes settlement cash and cash equivalents.

Cash and Cash Equivalents — Cash and cash equivalents consist of interest-bearing deposit accounts, non-interest-bearing transaction accounts and money market securities. The Company's money market securities are invested in one fund, which is AAA rated and consists of U.S. Treasury bills, notes or other obligations issued or guaranteed by the U.S. government and its agencies, as well as repurchase agreements secured by such instruments.

Interest-bearing Investments — Interest-bearing investments consist of time deposits and certificates of deposit with maturities of up to 24 months and are issued from financial institutions rated A- or better as of December 31, 2020.

Available-for-sale Investments — Available-for-sale investments consist of residential mortgage-backed securities and asset-backed and other securities. The following table is a summary of the amortized cost and fair value of available-for-sale investments:


(Amounts in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2020
Residential mortgage-backed securities	$	2.6	$	0.4	$	—	$	3.0
Asset-backed and other securities	0.2		0.5		(0.2)		0.5
Total	$	2.8	$	0.9	$	(0.2)	$	3.5

December 31, 2019
Residential mortgage-backed securities	$	3.3	$	0.3	$	—	$	3.6
Asset-backed and other securities	0.2		0.7		—		0.9
Total	$	3.5	$	1.0	$	—	$	4.5

As of December 31, 2020 and 2019, 86% and 80%, respectively, of the fair value of the available-for-sale portfolio were invested in residential mortgage-backed securities issued by U.S. government agencies. These securities have the implicit backing of the U.S. government and the Company expects to receive full par value upon maturity or pay-down, as well as all interest payments.

Gains and Losses — For the years ended December 31, 2020 and 2019, the Company had no realized gains or losses. The company had nominal realized gains and losses in 2018. As of December 31, 2020 and 2019, net unrealized gains, net of tax of $1.2 million and $1.6 million, respectively, were included in the Consolidated Balance Sheets within "Accumulated other comprehensive loss."

Investment Ratings — In rating the securities in its investment portfolio, the Company uses ratings from Moody's Investor Service ("Moody's"), Standard & Poor's ("S&P") and Fitch Ratings ("Fitch"). If the rating agencies have split ratings, the Company uses the lower of the highest two out of three ratings across the rating agencies for disclosure purposes. If the institution has only two ratings, the Company uses the lower of the two ratings for disclosure purposes. Securities issued or backed by U.S. government agencies are included in the AAA rating category. Investment grade is defined as a security having a Moody's equivalent rating of Aaa, Aa, A or Baa or an S&P or Fitch equivalent rating of AAA, AA, A or BBB. The Company's investments consisted of the following ratings as of December 31:


	2020					2019
(Amounts in millions, except percentages)	Number of Securities	Fair Value		Percent of Investments		Number of Securities	Fair Value		Percent of Investments
Investment grade	9	$	3.0	86	%	10	$	3.6	80	%
Below investment grade	35	0.5		14	%	35	0.9		20	%
Total	44	$	3.5	100	%	45	$	4.5	100	%

Had the Company used the lowest rating from the rating agencies in the information presented above, there would be no change to the classifications as of December 31, 2020 and 2019.

Contractual Maturities — Actual maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations, sometimes without call or prepayment penalties. Maturities of residential mortgage-backed and asset-backed and other securities depend on the repayment characteristics and experience of the underlying obligations.

Fair Value Determination — The Company uses various sources of pricing for its fair value estimates of its available-for-sale portfolio. The percentage of the portfolio for which the various pricing sources were used is as follows as of December 31, 2020 and 2019: 95% and 94% used a third-party pricing service and 5% and 6% used broker quotes, respectively.