Quarterly report pursuant to Section 13 or 15(d)

CASH AND INVESTMENTS (Tables)

v2.4.0.6
CASH AND INVESTMENTS (Tables)
 3 Months Ended
Mar. 31, 2012
Marketable Securities [Abstract]  
Available-for-sale Securities
The following is a summary of marketable securities classified as available-for-sale as of March 31, 2012 and December 31, 2011 (in millions):
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Estimated
Fair Value
March 31, 2012
 
 
 
 
 
 
 
Current marketable securities:
 
 
 
 
 
 
 
U.S. government and agency debt securities
$
216

 
$
1

 
$
(1
)
 
$
216

Mortgage and asset-backed debt securities
175

 
3

 
—

 
178

Corporate debt securities
382

 
4

 
—

 
386

U.S. state and local municipal debt securities
15

 
—

 
—

 
15

Other debt and equity securities
152

 
—

 
—

 
152

Total marketable securities
$
940

 
$
8

 
$
(1
)
 
$
947

 
 
 
 
 
 
 
 
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Estimated
Fair Value
December 31, 2011
 
 
 
 
 
 
 
Current marketable securities:
 
 
 
 
 
 
 
U.S. government and agency debt securities
$
184

 
$
3

 
$
—

 
$
187

Mortgage and asset-backed debt securities
188

 
4

 
(1
)
 
191

Corporate debt securities
835

 
4

 
(2
)
 
837

U.S. state and local municipal debt securities
15

 
—

 
—

 
15

Other debt and equity securities
10

 
1

 
—

 
11

Total marketable securities
$
1,232

 
$
12

 
$
(3
)
 
$
1,241

Investments Classified by Contractual Maturity Date
The amortized cost and estimated fair value of marketable securities at March 31, 2012, by contractual maturity, are shown below (in millions). Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.
 
Cost
 
Estimated
Fair Value
Due in one year or less
$
385

 
$
385

Due after one year through three years
252

 
253

Due after three years through five years
44

 
45

Due after five years
256

 
261

 
937

 
944

Equity securities
3

 
3

 
$
940

 
$
947

Fair Value, Assets Measured on Recurring Basis
The following table presents information about our investments measured at fair value on a recurring basis as of March 31, 2012 and December 31, 2011, 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 
March 31, 2012
 
 
 
 
 
 
 
Marketable Securities:
 
 
 
 
 
 
 
U.S. government and agency debt securities
$
216

 
$
—

 
$
—

 
$
216

Mortgage and asset-backed debt securities
—

 
178

 
—

 
178

Corporate debt securities
—

 
386

 
—

 
386

U.S. state and local municipal debt securities
—

 
15

 
—

 
15

Other debt and equity securities
—

 
152

 
—

 
152

Total marketable securities
216

 
731

 
—

 
947

Other investments
18

 
—

 
204

 
222

Total
$
234

 
$
731

 
$
204

 
$
1,169

 

 
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Balance 
December 31, 2011
 
 
 
 
 
 
 
Marketable Securities:
 
 
 
 
 
 
 
U.S. government and agency debt securities
$
187

 
$
—

 
$
—

 
$
187

Mortgage and asset-backed debt securities
—

 
191

 
—

 
191

Corporate debt securities
—

 
837

 
—

 
837

U.S. state and local municipal debt securities
—

 
15

 
—

 
15

Other debt and equity securities
—

 
11

 
—

 
11

Total marketable securities
187

 
1,054

 
—

 
1,241

Other investments
17

 
—

 
217

 
234

Total
$
204

 
$
1,054

 
$
217

 
$
1,475

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
The following table presents the changes in the above Level 3 instruments measured on a recurring basis for the three months ended March 31, 2012 and 2011 (in millions):
 
Marketable
Securities
 
Other
Investments
 
Total
Balance on January 1, 2012
$
—

 
$
217

 
$
217

Transfers into (out of) Level 3
—

 
—

 
—

Net realized and unrealized gains (losses):
—

 
—

 
—

Included in earnings (in investment income)
—

 
(13
)
 
(13
)
Included in accumulated other comprehensive income (pre-tax)
—

 
—

 
—

Purchases
—

 
—

 
—

Sales
—

 
—

 
—

Balance on March 31, 2012
$
—

 
$
204

 
$
204

 
 
 
 
 
 
 
 
 
 
 
 
Balance on January 1, 2011
$
138

 
$
267

 
$
405

Transfers into (out of) Level 3
—

 
—

 
—

Net realized and unrealized gains (losses):
—

 
—

 
—

Included in earnings (in investment income)
—

 
(13
)
 
(13
)
Included in accumulated other comprehensive income (pre-tax)
—

 
—

 
—

Purchases
—

 
—

 
—

Sales
(138
)
 
—

 
(138
)
Balance on March 31, 2011
$
—

 
$
254

 
$
254