IBM 2010 Annual Report Download - page 91

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Notes to Consolidated Financial Statements
International Business Machines Corporation and Subsidiary Companies 89
Based on an evaluation of available evidence as of December 31,
2010, the company believes that unrealized losses on debt and
marketable equity securities are temporary and do not represent
a requirement for an other-than-temporary impairment provision.
Proceeds from sales of debt securities and marketable equity
securities were approximately $16 million and $24 million during
2010 and 2009, respectively. The gross realized gains and losses
(before taxes) on these sales totaled $6 million and less than $(1)
million, respectively, in 2010. The gross realized gains and losses
(before taxes) on these sales totaled $3 million and $(40) million,
respectively, in 2009.
The after-tax net unrealized holding gains/(losses) on available-
for-sale debt and marketable equity securities that have been
included in accumulated other comprehensive income/(loss) and
the after tax net gains/(losses) reclassified from accumulated other
comprehensive income/(loss) into net income were as follows:
Net Change in Unrealized Gains/(Losses)
on Marketable Securities (Net of Tax)
($ in millions)
For the period ended December 31: 2010 2009
Net unrealized gains/(losses)
arising during the period $51 $ 72
Less: Net (losses)/gains included
in net income for the period* (0) (39)
Net unrealized gains/(losses)
on marketable securities $51 $111
* Includes writedowns of $3.6 million and $16.2 million in 2010 and 2009, respectively.
The contractual maturities of substantially all available-for-sale
debt securities are less than one year at December 31, 2010.
($ in millions)
Gross Gross
Adjusted Unrealized Unrealized Fair
At December 31, 2009: Cost Gains Losses Value
Cash and cash equivalents
(1)
Time deposits and certificates of deposit $4,324 $ 0 $ — $4,324
Commercial paper 2,099 — (0) 2,099
Money market funds 2,780 — — 2,780
Other securities 74 — — 74
Tot a l $9,277 $ 0 $ (0) $9,277
Debt securities—current
(2)
Commercial paper $1,491 $ — $ (0) $1,491
U.S. government securities 300 0 — 300
Tot a l $1,791 $ 0 $ (0) $1,791
Debt securities—noncurrent
(3)
Other securities $ 9 $ 0 $ (0) $ 9
Tot a l $ 9 $ 0 $ (0) $ 9
Non-equity method alliance investments(3) $ 183 $201 $(10) $ 374
(1) Included within cash and cash equivalents in the Consolidated Statement of Financial Position.
(2)
Reported as marketable securities in the Consolidated Statement of Financial Position.
(3) Included within investments and sundry assets in the Consolidated Statement of Financial Position.