UPS 2006 Annual Report Download - page 74

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
NOTE 2. MARKETABLE SECURITIES AND SHORT-TERM INVESTMENTS
The following is a summary of marketable securities and short-term investments classified as available-for-
sale at December 31, 2006 and 2005 (in millions):
Cost
Unrealized
Gains
Unrealized
Losses
Estimated
Fair Value
2006
U.S. government & agency securities ......................... $ 124 $— $— $ 124
U.S. mortgage & asset-backed securities ...................... 234 1 2 233
U.S. corporate securities ................................... 79 — 1 78
U.S. state and local municipal securities ....................... 582 — — 582
Other debt securities ...................................... 2 — — 2
Total debt securities ................................... 1,021 1 3 1,019
Common equity securities .................................. 38 10 — 48
Preferred equity securities .................................. 122 — — 122
Current marketable securities & short-term investments .......... 1,181 11 3 1,189
Non-current common equity securities ........................ 24 8 — 32
Total marketable securities & short-term investments ............ $1,205 $ 19 $ 3 $1,221
Cost
Unrealized
Gains
Unrealized
Losses
Estimated
Fair Value
2005
U.S. government & agency securities ......................... $ 400 $ 1 $ 3 $ 398
U.S. mortgage & asset-backed securities ...................... 393 1 5 389
U.S. corporate securities ................................... 425 — 4 421
U.S. state and local municipal securities ....................... 70 — — 70
Other debt securities ...................................... 2 — — 2
Total debt securities ................................... 1,290 2 12 1,280
Common equity securities .................................. 42 19 — 61
Preferred equity securities .................................. 331 — — 331
Current marketable securities & short-term investments .......... 1,663 21 12 1,672
Non-current common equity securities ........................ 21 7 — 28
Total marketable securities & short-term investments ............ $1,684 $ 28 $ 12 $1,700
The gross realized gains on sales of marketable securities totaled $12, $2, and $7 million in 2006, 2005, and
2004, respectively. The gross realized losses totaled $21, $12, and $5 million in 2006, 2005, and 2004,
respectively. Impairment losses recognized on marketable securities and short-term investments totaled $16
million during 2005, with no such losses recognized in 2006 or 2004.
F-14