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FINANCIALS
49
A summary of the fair value of available-for-sale securities in an unrealized gain or loss position and the
amount of unrealized gains and losses (pretax) in other comprehensive income at December 31 follows:
2008 2007
Unrealized gross gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 69.9 $ 43.5
Unrealized gross losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239.0 22.0
Fair value of securities in an unrealized gain position . . . . . . . . . . . . 767.5 921.7
Fair value of securities in an unrealized loss position. . . . . . . . . . . . . 1,046.1 964.6
The securities in an unrealized loss position are comprised of fi xed-rate debt securities of varying maturities.
The value of fi xed income securities is sensitive to changes to the yield curve and other market conditions which
led to the decline in value during 2008. Approximately 90 percent of the securities in a loss position are investment-
grade debt securities. The majority of these securities fi rst moved into an unrealized loss position during 2008. At
this time, there is no indication of default on interest or principal payments for asset-backed securities. We have
the intent and ability to hold the securities in a loss position until the market values recover or all of the underlying
cash fl ows have been received and we have concluded that no other-than-temporary loss exists at December 31,
2008. The fair values of all of our auction rate securities and collateralized debt obligations held at December 31,
2008 were determined using Level 3 inputs. We do not hold securities issued by structured investment vehicles at
December 31, 2008.
The net adjustment to unrealized gains and losses (net of tax) on available-for-sale securities increased
(decreased) other comprehensive income by $(125.8) million, $(5.4) million, and $0.3 million in 2008, 2007, and
2006, respectively. Activity related to our available-for-sale investment portfolio was as follows:
2008 2007 2006
Proceeds from sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,876.4 $1,212.1 $2,848.4
Realized gross gains on sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45.7 21.4 63.5
Realized gross losses on sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.7 6.1 9.0
During the years ended December 31, 2008, 2007, and 2006, net losses related to ineffectiveness and net loss-
es related to the portion of our risk-management hedging instruments, fair value and cash fl ow hedges, excluded
from the assessment of effectiveness were not material.
We expect to reclassify an estimated $10.2 million of pretax net losses on cash fl ow hedges of the variability in
expected future interest payments on fl oating rate debt from accumulated other comprehensive loss to earnings
during 2009.
Available-for-sale investment securities are classifi ed as long-term investments when they are likely to be
held for more than one year because of our intent to hold securities in an unrealized loss position until the market
values recover or all of the underlying cash fl ows have been received.
Note 7: Borrowings
Long-term debt at December 31 consisted of the following:
2008 2007
4.50 to 7.13 percent notes (due 2012–2037). . . . . . . . . . . . . . . . . . . . . . $3,987.4 $3,987.4
Floating rate bonds (due 2037). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400.0 400.0
2.90 percent notes (due 2008). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 300.0
Other, including capitalized leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116.8 222.0
SFAS 133 fair value adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 531.9 79.2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,036.1 4,988.6
Less current portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (420.4) (395.1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,615.7 $4,593.5
In March 2007, we issued $2.50 billion of fi xed-rate notes ($1.00 billion at 5.20 percent due in 2017; $700.0 mil-
lion at 5.50 percent due in 2027; and $800.0 million at 5.55 percent due in 2037).
The $400.0 million of fl oating rate bonds outstanding at December 31, 2008 are due in 2037 and have variable