PACCAR 2009 Annual Report Download - page 49

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46 B. INVESTMENTS IN MARKETABLE SECURITIES
The Company’s investments in marketable securities are classified as available-for-sale. These investments are stated
at fair value with any unrealized gains or losses, net of tax, included as a component of accumulated other
comprehensive income. The proceeds from sales and maturities of marketable securities during 2009 were $245.5.
Gross realized gains and losses were $1.2, $5.1, and nil, and $.1, $.1 and $.1 for the years ended December 31, 2009,
2008 and 2007, respectively.
The cost of marketable debt securities is adjusted for amortization of premiums and accretion of discounts to
maturity. Amortization, accretion, interest and dividend income and realized gains and losses are included in
investment income. The cost of securities sold is based on the specific identification method.
Marketable debt securities consisted of the following at December 31:
amortized unrealized unrealized fair
2009 cost gains losses value
U.S. government and agency securities $ 6.5 $ 6.5
U.S. tax-exempt securities 141.2 $ 1.3 142.5
U.S. corporate securities 22.0 .2 $ .1 22.1
Non U.S. corporate securities 22.0 22.0
Non U.S. government securities 12.2 12.2
Other debt securities 14.2 14.2
$ 218.1 $ 1.5 $ .1 $ 219.5
amortized unrealized unrealized fair
2008 cost gains losses value
U.S. tax-exempt securities $ 167.2 $ 1.7 $ .4 $ 168.5
Non U.S. corporate securities 4.3 .3 4.0
Non U.S. government securities 2.9 2.9
$ 174.4 $ 1.7 $ .7 $ 175.4
The fair value of marketable debt securities that have been in a continuous unrealized loss position for 12 months
or greater at December 31, 2009 and 2008, were $27.4 and $16.7, and their unrealized losses were $.1 and $.6,
respectively.
Contractual maturities at December 31, 2009, were as follows:
amortized fair
Maturities: cost value
Within one year $ 99.7 $ 100.3
One to five years 104.5 105.3
Ten or more years 13.9 13.9
$ 218.1 $ 219.5
Marketable debt securities included $11.6 and $65.9 of variable-rate demand obligations (VRDOs) at December 31,
2009 and 2008, respectively. VRDOs are debt instruments with long-term scheduled maturities which have interest
rates that reset periodically.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2009, 2008 and 2007 (currencies in millions)