Humana 2010 Annual Report Download - page 103

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Humana Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
4. INVESTMENT SECURITIES
Investment securities classified as current and long-term were as follows at December 31, 2010 and 2009,
respectively:
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses Fair Value
(in thousands)
December 31, 2010
U.S. Treasury and other U.S. government corporations and
agencies:
U.S. Treasury and agency obligations .............. $ 697,816 $ 14,412 $ (615) $ 711,613
Mortgage-backed securities ...................... 1,614,569 49,783 (1,173) 1,663,179
Tax-exempt municipal securities ..................... 2,439,659 37,294 (43,619) 2,433,334
Mortgage-backed securities:
Residential ................................... 58,017 545 (2,675) 55,887
Commercial .................................. 306,291 14,911 (171) 321,031
Asset-backed securities ............................. 148,068 1,727 (44) 149,751
Corporate debt securities ............................ 2,906,228 139,793 (13,710) 3,032,311
Redeemable preferred stock ......................... 5,333 0 0 5,333
Total debt securities ....................... $8,175,981 $258,465 $(62,007) $8,372,439
December 31, 2009
U.S. Treasury and other U.S. government corporations and
agencies:
U.S. Treasury and agency obligations .............. $1,005,203 $ 6,683 $ (2,534) $1,009,352
Mortgage-backed securities ...................... 1,675,667 24,324 (11,328) 1,688,663
Tax-exempt municipal securities ..................... 2,195,077 52,381 (23,417) 2,224,041
Mortgage-backed securities:
Residential ................................... 106,191 220 (10,999) 95,412
Commercial .................................. 285,014 3,252 (8,640) 279,626
Asset-backed securities ............................. 106,471 824 (107) 107,188
Corporate debt securities ............................ 2,043,721 57,173 (21,326) 2,079,568
Redeemable preferred stock ......................... 8,400 4,900 0 13,300
Total debt securities ....................... $7,425,744 $149,757 $(78,351) $7,497,150
We participate in a securities lending program where we loan certain investment securities for short periods
of time in exchange for collateral, consisting of cash or U.S. Government securities, initially equal to at least
102% of the fair value of the investment securities on loan. Investment securities with a fair value of $54.0
million at December 31, 2010 and $126.1 million at December 31, 2009 were on loan. At December 31, 2010, all
collateral from lending our investment securities was in the form of cash which has been reinvested in money
market funds and short-term asset-backed securities.
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