PACCAR 2011 Annual Report Download - page 58

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
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2011, 2010 and 2009 (currencies in millions)
B. INVESTMENTS IN MARKETABLE DEBT SECURITIES
Marketable debt securities consisted of the following at December 31:
AMORTIZED UNREALIZED UNREALIZED FAIR
2011 COST GAINS LOSSES VALUE
U.S. tax-exempt securities $ 291.9 $ 2.6 $ .1 $ 294.4
U.S. corporate securities 27.4 .3 .2 27.5
U.S. government and agency securities 1.9 1.9
Non-U.S. government securities 361.2 6.0 .1 367.1
Non-U.S. corporate securities 148.0 .5 .2 148.3
Other debt securities 70.3 .6 70.9
$ 900.7 $ 10.0 $ .6 $ 910.1
AMORTIZED UNREALIZED UNREALIZED FAIR
2010 COST GAINS LOSSES VALUE
U.S. tax-exempt securities $ 364.9 $ .8 $ .3 $ 365.4
U.S. corporate securities 27.3 .3 27.6
U.S. government and agency securities 2.7 2.7
Non-U.S. corporate securities 37.0 37.0
Other debt securities 17.8 17.8
$ 449.7 $ 1.1 $ .3 $ 450.5
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. The proceeds from
sales and maturities of marketable securities during 2011 were $1,142.4. Gross realized gains were $3.2, $.7 and $1.2
and gross realized losses were $1.3, $.1 and $.1 for the years ended December 31, 2011, 2010 and 2009, respectively.
The fair value of marketable debt securities that have been in an unrealized loss position for 12 months or greater
at December 31, 2011 was $8.0 and the associated unrealized loss was $.1. The Company had no marketable debt
securities in an unrealized loss position for 12 months or greater at December 31, 2010.
For the investment securities in gross unrealized loss positions identified above, the Company does not intend to
sell the investment securities, it is more likely than not that the Company will not be required to sell the investment
securities before recovery of the unrealized losses, and the Company expects that the contractual principal and
interest will be received on the investment securities. As a result, the Company recognized no other-than-temporary
impairments during the periods presented.
Contractual maturities at December 31, 2011 were as follows:
AMORTIZED FAIR
Maturities: COST VALUE
Within one year $ 259.7 $ 260.1
One to five years 633.9 642.9
Ten or more years 7.1 7.1
$ 900.7 $ 910.1
Marketable debt securities included $7.1 and $12.2 of variable-rate demand obligations (VRDOs) at December 31,
2011 and 2010, respectively. VRDOs are debt instruments with long-term scheduled maturities which have interest
rates that reset periodically.