Discover 2010 Annual Report Download - page 118

to $6.2 million of gross unrealized losses at November 30, 2009. The Company believes the unrealized loss on these
investments is the result of changes in interest rates subsequent to the Company’s acquisitions of these securities and that
the reduction in value is temporary. The Company does not intend to sell these investments nor does it expect to be
required to sell these investments before recovery of their amortized cost bases, but rather expects to collect all amounts
due according to the contractual terms of these securities.
Maturities and weighted average yields of available-for-sale debt securities and held-to-maturity debt securities at
November 30, 2010 are provided in the tables below (dollars in thousands):
One Year
or
Less
After One
Year
Through
Five
Years
After
Five
Years
Through
Ten
Years
After Ten
Years Total
Available-for-sale – Amortized Cost(1)
U.S Treasury securities ......................................................................................... $ 201,094 $1,375,000 $ 0 $ 0 $1,576,094
U.S government agency securities .......................................................................... 241,119 1,647,790 0 0 1,888,909
Credit card asset-backed securities of other issuers ................................................... 742,832 274,351 0 0 1,017,183
Corporate debt securities ...................................................................................... 51,271 456,486 0 0 507,757
Total available-for-sale investment securities ......................................................... $1,236,316 $3,753,627 $ 0 $ 0 $4,989,943
Held-to-maturity – Amortized Cost(2)
U.S. Treasury securities ........................................................................................ $ 550 $ 0 $ 0 $ 0 $ 550
State and political subdivisions of states .................................................................. 0 2,905 5,630 43,239 51,774
Residential mortgage-backed securities ................................................................... 0 0 0 9,800 9,800
Other debt securities ............................................................................................ 619 4,210 2,072 3,791 10,692
Total held-to-maturity investment securities ........................................................... $ 1,169 $ 7,115 $7,702 $56,830 $ 72,816
Available-for-sale – Fair Values(1)
U.S Treasury securities ......................................................................................... $ 201,067 $1,373,786 $ 0 $ 0 $1,574,853
U.S government agency securities .......................................................................... 240,825 1,647,876 0 0 1,888,701
Credit card asset-backed securities of other issuers ................................................... 745,410 285,702 0 0 1,031,112
Corporate debt securities ...................................................................................... 51,239 456,657 0 0 507,896
Total available-for-sale investment securities ......................................................... $1,238,541 $3,764,021 $ 0 $ 0 $5,002,562
Held-to-maturity – Fair Values(2)
U.S. Treasury securities ........................................................................................ $ 550 $ 0 $ 0 $ 0 $ 550
State and political subdivisions of states .................................................................. 0 3,004 5,784 39,496 48,284
Residential mortgage-backed securities ................................................................... 0 0 0 10,669 10,669
Other debt securities ............................................................................................ 619 4,210 2,072 3,791 10,692
Total held-to-maturity investment securities ........................................................... $ 1,169 $ 7,214 $7,856 $53,956 $ 70,195
(1) Available-for-sale investment securities are reported at fair value.
(2) Held-to-maturity investment securities are reported at amortized cost.
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