UPS 2009 Annual Report Download - page 78

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table presents information about our investments measured at fair value on a recurring basis
as of December 31, 2009 and 2008, and indicates the fair value hierarchy of the valuation techniques utilized to
determine such fair value (in millions).
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Balance as of
December 31, 2009
2009
Marketable Securities:
U.S. Government and Agency Debt Securities .... $125 $— $— $ 125
Mortgage and Asset-Backed Debt Securities ..... — 159 112 271
Corporate Debt Securities .................... — 219 — 219
U.S. State and Local Municipal Debt Securities . . . — 22 89 111
Other Debt and Equity Securities ............... 54 10 15 79
Other investments .............................. — — 301 301
Total ................................. $179 $410 $517 $1,106
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Balance as of
December 31, 2008
2008
Marketable Securities:
U.S. Government and Agency Debt Securities .... $ 90 $ 5 $— $ 95
Mortgage and Asset-Backed Debt Securities ..... — 270 116 386
Corporate Debt Securities .................... — 160 — 160
U.S. State and Local Municipal Debt Securities . . . — — 87 87
Other Debt and Equity Securities ............... 43 2 13 58
Other investments .............................. — — 331 331
Total ................................. $133 $437 $547 $1,117
The following table presents the changes in the above Level 3 instruments measured on a recurring basis for
the year ended December 31, 2009 (in millions).
Marketable
Securities
Other
Investments Total
Balance on January 1, 2009 .......................................... $216 $331 $547
Transfers into (out of) Level 3 ........................................ — — —
Net realized and unrealized gains (losses):
Included in earnings (in investment income) ......................... (5) (30) (35)
Included in accumulated other comprehensive income (pre-tax) .......... 7 — 7
Purchases, issuances, and settlements .................................. (2) — (2)
Balance on December 31, 2009 ....................................... $216 $301 $517
66