UPS 2011 Annual Report Download - page 84

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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, 2011
and 2010 (in millions):
Cost
Unrealized
Gains
Unrealized
Losses
Estimated
Fair Value
2011
Current marketable securities:
U.S. government and agency debt securities ............... $ 184 $ 3 $— $ 187
Mortgage and asset-backed debt securities ................. 188 4 (1) 191
Corporate debt securities ............................... 835 4 (2) 837
U.S. state and local municipal debt securities .............. 15 — — 15
Other debt and equity securities ......................... 10 1 — 11
Total marketable securities ................................. $1,232 $ 12 $ (3) $1,241
Cost
Unrealized
Gains
Unrealized
Losses
Estimated
Fair Value
2010
Current marketable securities:
U.S. government and agency debt securities ............... $ 207 $ 1 $ (2) $ 206
Mortgage and asset-backed debt securities ................. 220 3 (1) 222
Corporate debt securities ............................... 179 5 (1) 183
U.S. state and local municipal debt securities .............. 33 — — 33
Other debt and equity securities ......................... 62 5 — 67
Current marketable securities ............................... 701 14 (4) 711
Non-current marketable securities:
Mortgage and asset-backed debt securities ................. 79 2 (2) 79
U.S. state and local municipal debt securities .............. 49 2 (6) 45
Common equity securities .............................. 20 14 — 34
Preferred equity securities .............................. 16 1 (3) 14
Non-current marketable securities ........................... 164 19 (11) 172
Total marketable securities ................................. $ 865 $ 33 $(15) $ 883
The gross realized gains on sales of marketable securities totaled $49, $24 and $16 million in 2011, 2010,
and 2009, respectively. The gross realized losses totaled $20, $18 and $12 million in 2011, 2010 and 2009,
respectively. There were no impairment losses recognized on marketable securities during 2011, while
impairment losses totaled $21 and $17 million during 2010 and 2009 (discussed further below), respectively.
Auction Rate Securities
During 2011, we sold all remaining investments in auction rate securities, which had been classified as
non-current marketable securities as of December 31, 2010. These sales did not have a material impact on our
statement of consolidated income.
Investment Other-Than-Temporary Impairments
We have concluded that no other-than-temporary impairment losses existed as of December 31, 2011. In
making this determination, we considered the financial condition and prospects of the issuer, the magnitude of
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