Pitney Bowes 2014 Annual Report Download - page 71

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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share amounts)
61
The Bank's investment securities are classified as available-for-sale and recorded at fair value in the Consolidated Balance Sheets as cash
and cash equivalents, short-term investments and other assets depending on the type of investment and maturity. Unrealized holding gains
and losses are recorded, net of tax, in accumulated other comprehensive income (AOCI).
Available-For-Sale Securities
At December 31, 2014 and 2013, available-for-sale securities consisted of the following:
December 31, 2014
Amortized cost
Gross
unrealized
gains
Gross
unrealized
losses
Estimated fair
value
U.S. and foreign governments, agencies and municipalities $ 135,839 $ 2,905 $ (764) $ 137,980
Corporate 66,170 1,569 (291) 67,448
Mortgage-backed / asset-backed securities 155,330 2,362 (1,078) 156,614
Total $ 357,339 $ 6,836 $ (2,133) $ 362,042
December 31, 2013
Amortized cost
Gross unrealized
gains
Gross unrealized
losses
Estimated fair
value
U.S. and foreign governments, agencies and municipalities $ 121,803 $ 999 $ (3,372) $ 119,430
Corporate 37,901 935 (572) 38,264
Mortgage-backed / asset-backed securities 165,664 1,570 (2,636) 164,598
Total $ 325,368 $ 3,504 $ (6,580) $ 322,292
Investment securities that were in a loss position for 12 or more continuous months at December 31, 2014 had aggregate unrealized
holding losses of $1 million and an estimated fair value of $42 million. Investment securities that were in a loss position for less than 12
continuous months at December 31, 2014 had aggregate unrealized holding losses of $1 million and an estimated fair value of $88 million.
Investment securities that were in a loss position for 12 or more continuous months at December 31, 2013 had aggregate unrealized
holding losses of $1 million and an estimated fair value of $19 million. Investment securities that were in a loss position for less than 12
continuous months at December 31, 2013 had aggregate unrealized holding losses of $6 million and an estimated fair value of $166
million.
We have not recognized an other-than-temporary impairment on any of the investment securities in an unrealized loss position because
we do not intend to sell these securities, it is more likely than not that we will not be required to sell these securities before recovery of
the unrealized losses and we expect to receive the contractual principal and interest on these investment securities.
At December 31, 2014, the amortized cost and estimated fair value of available-for-sale securities have scheduled maturities as follows:
Amortized cost
Estimated fair
value
Within 1 year $ 48,452 $ 48,527
After 1 year through 5 years 70,734 71,526
After 5 years through 10 years 80,426 81,744
After 10 years 157,727 160,245
Total $ 357,339 $ 362,042
The expected payments on mortgage-backed and asset-backed securities may not coincide with their contractual maturities as borrowers
have the right to prepay obligations with or without prepayment penalties.
We have not experienced any write-offs in our investment portfolio. The majority of our mortgage-backed securities are either guaranteed
or supported by the U.S. government. We have no investments in inactive markets that would warrant a possible change in our pricing
methods or classification within the fair value hierarchy. Further, we have no investments in auction rate securities.