Annual report pursuant to Section 13 and 15(d)

CASH AND INVESTMENTS (Tables)

v2.4.0.8
CASH AND INVESTMENTS (Tables)
 12 Months Ended
Dec. 31, 2013
Investments and Cash [Abstract]  
Schedule of Unrealized Loss on Investments [Table Text Block]
The following table presents the age of gross unrealized losses and fair value by investment category for all securities in a loss position as of December 31, 2013 (in millions):
 
Less Than 12 Months
 
12 Months or More
 
Total
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
U.S. government and agency debt securities
$
183

 
$
(1
)
 
$
—

 
$
—

 
$
183

 
$
(1
)
Mortgage and asset-backed debt securities
50

 
(2
)
 
4

 
—

 
54

 
(2
)
Corporate debt securities
47

 
(1
)
 
—

 
—

 
47

 
(1
)
U.S. state and local municipal debt securities
—

 
—

 
—

 
—

 
—

 
—

Other debt and equity securities
—

 
—

 
—

 
—

 
—

 
—

Total marketable securities
$
280

 
$
(4
)
 
$
4

 
$
—

 
$
284

 
$
(4
)
Summary of Marketable Securities
The following is a summary of marketable securities classified as available-for-sale at December 31, 2013 and 2012 (in millions):
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Estimated
Fair Value
2013
 
 
 
 
 
 
 
Current marketable securities:
 
 
 
 
 
 
 
U.S. government and agency debt securities
$
355

 
$
—

 
$
(1
)
 
$
354

Mortgage and asset-backed debt securities
76

 
1

 
(2
)
 
75

Corporate debt securities
146

 
1

 
(1
)
 
146

U.S. state and local municipal debt securities
2

 
—

 
—

 
2

Other debt and equity securities
3

 
—

 
—

 
3

Total marketable securities
$
582

 
$
2

 
$
(4
)
 
$
580

 
 
 
 
 
 
 
 


 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Estimated
Fair Value
2012
 
 
 
 
 
 
 
Current marketable securities:
 
 
 
 
 
 
 
U.S. government and agency debt securities
$
236

 
$
2

 
$
—

 
$
238

Mortgage and asset-backed debt securities
171

 
3

 
—

 
174

Corporate debt securities
158

 
5

 
—

 
163

U.S. state and local municipal debt securities
15

 
—

 
—

 
15

Other debt and equity securities
7

 
—

 
—

 
7

Total marketable securities
$
587

 
$
10

 
$
—

 
$
597

Amortized Cost and Estimated Fair Value of Marketable Securities by Contractual Maturity
The amortized cost and estimated fair value of marketable securities at December 31, 2013, 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
$
33

 
$
33

Due after one year through three years
432

 
432

Due after three years through five years
21

 
21

Due after five years
93

 
91

 
579

 
577

Equity securities
3

 
3

 
$
582

 
$
580

Investments Measured at Fair Value on a Recurring Basis
The following table presents information about our investments measured at fair value on a recurring basis as of December 31, 2013 and 2012, 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)
 
Total
2013
 
 
 
 
 
 
 
Marketable securities:
 
 
 
 
 
 
 
U.S. government and agency debt securities
$
353

 
$
1

 
$
—

 
$
354

Mortgage and asset-backed debt securities
—

 
75

 
—

 
75

Corporate debt securities
—

 
146

 
—

 
146

U.S. state and local municipal debt securities
—

 
2

 
—

 
2

Other debt and equity securities
—

 
3

 
—

 
3

Total marketable securities
353

 
227

 
—

 
580

Other investments
19

 
—

 
110

 
129

Total
$
372

 
$
227

 
$
110

 
$
709

 
 
 
 
 
 
 
 
 
Quoted Prices in
Active Markets 
for Identical
Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
2012
 
 
 
 
 
 
 
Marketable securities:
 
 
 
 
 
 
 
U.S. government and agency debt securities
$
237

 
$
1

 
$
—

 
$
238

Mortgage and asset-backed debt securities
—

 
174

 
—

 
174

Corporate debt securities
—

 
163

 
—

 
163

U.S. state and local municipal debt securities
—

 
15

 
—

 
15

Other debt and equity securities
—

 
7

 
—

 
7

Total marketable securities
237

 
360

 
—

 
597

Other investments
19

 
—

 
163

 
182

Total
$
256

 
$
360

 
$
163

 
$
779

Changes in Level 3 Instruments Measured on a Recurring Basis
The following table presents the changes in the above Level 3 instruments measured on a recurring basis for the years ended December 31, 2013 and 2012 (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)
—

 
(54
)
 
(54
)
Included in accumulated other comprehensive income (pre-tax)
—

 
—

 
—

Purchases
—

 
—

 
—

Settlements
—

 
—

 
—

Balance on December 31, 2012
$
—

 
$
163

 
$
163

Transfers into (out of) Level 3
—

 
—

 
—

Net realized and unrealized gains (losses):
 
 
 
 
 
Included in earnings (in investment income)
—

 
(53
)
 
(53
)
Included in accumulated other comprehensive income (pre-tax)
—

 
—

 
—

Purchases
—

 
—

 
—

Settlements
—

 
—

 
—

Balance on December 31, 2013
$
—

 
$
110

 
$
110