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## NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

December 31, 2011, 2010 and 2009 (currencies in millions) 

## B. INVESTMENTS IN MARKETABLE DEBT SECURITIES 

Marketable debt securities consisted of the following at December 31: 

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The cost of marketable debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Amortization, accretion, interest and dividend income and realized gains and losses are included in investment income. The cost of securities sold is based on the specific identification method. The proceeds from sales and maturities of marketable securities during 2011 were $1,142.4. Gross realized gains were $3.2, $.7 and $1.2 and gross realized losses were $1.3, $.1 and $.1 for the years ended December 31, 2011, 2010 and 2009, respectively. 

The fair value of marketable debt securities that have been in an unrealized loss position for 12 months or greater at December 31, 2011 was $8.0 and the associated unrealized loss was $.1. The Company had no marketable debt securities in an unrealized loss position for 12 months or greater at December 31, 2010. 

For the investment securities in gross unrealized loss positions identified above, the Company does not intend to sell the investment securities, it is more likely than not that the Company will not be required to sell the investment securities before recovery of the unrealized losses, and the Company expects that the contractual principal and interest will be received on the investment securities. As a result, the Company recognized no other-than-temporary impairments during the periods presented. 

Contractual maturities at December 31, 2011 were as follows: 

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Marketable debt securities included $7.1 and $12.2 of variable-rate demand obligations (VRDOs) at December 31, 2011 and 2010, respectively. VRDOs are debt instruments with long-term scheduled maturities which have interest rates that reset periodically. 

