UPS 2009 Annual Report Download - page 74

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
NOTE 2. CASH AND INVESTMENTS
The following is a summary of marketable securities classified as available-for-sale at December 31, 2009
and 2008 (in millions):
Cost
Unrealized
Gains
Unrealized
Losses
Estimated
Fair Value
2009
Current marketable securities:
U.S. government and agency debt securities ................. $126 $— $ (1) $125
Mortgage and asset-backed debt securities ................... 158 2 (1) 159
Corporate debt securities ................................ 213 6 — 219
U.S. state and local municipal debt securities ................ 22 — — 22
Other debt and equity securities ........................... 28 5 — 33
Current marketable securities ................................. 547 13 (2) 558
Non-current marketable securities:
Mortgage and asset-backed debt securities ................... 150 — (38) 112
U.S. state and local municipal debt securities ................ 115 — (26) 89
Common equity securities ............................... 21 10 — 31
Preferred equity securities ............................... 16 — (1) 15
Non-current marketable securities ............................. 302 10 (65) 247
Total marketable securities ................................... $849 $ 23 $ (67) $805
Cost
Unrealized
Gains
Unrealized
Losses
Estimated
Fair Value
2008
Current marketable securities:
U.S. government and agency debt securities ................. $ 93 $ 2 $— $ 95
Mortgage and asset-backed debt securities ................... 278 3 (11) 270
Corporate debt securities ................................ 158 5 (3) 160
Other debt and equity securities ........................... 30 — (13) 17
Current marketable securities ................................. 559 10 (27) 542
Non-current marketable securities:
Mortgage and asset-backed debt securities ................... 150 — (34) 116
U.S. state and local municipal debt securities ................ 116 — (29) 87
Common equity securities ............................... 25 3 — 28
Preferred equity securities ............................... 21 — (8) 13
Non-current marketable securities ............................. 312 3 (71) 244
Total marketable securities ................................... $871 $ 13 $ (98) $786
The gross realized gains on sales of marketable securities totaled $16, $19, and $23 million in 2009, 2008,
and 2007, respectively. The gross realized losses totaled $12, $10, and $9 million in 2009, 2008, and 2007,
respectively. Impairment losses recognized on marketable securities and short-term investments totaled $17 and
$23 million during 2009 and 2008 (discussed further below), with no such losses recognized in 2007.
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