Quarterly report pursuant to Section 13 or 15(d)

CASH AND INVESTMENTS (Tables)

v2.4.0.8
CASH AND INVESTMENTS (Tables)
 3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2013
Marketable Securities [Abstract]    
Available-for-sale Securities  
The following is a summary of marketable securities classified as available-for-sale as of September 30, 2013 and December 31, 2012 (in millions):
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Estimated
Fair Value
September 30, 2013
 
 
 
 
 
 
 
Current marketable securities:
 
 
 
 
 
 
 
U.S. government and agency debt securities
$
342

 
$
1

 
$
(2
)
 
$
341

Mortgage and asset-backed debt securities
70

 
—

 
(1
)
 
69

Corporate debt securities
713

 
1

 
(1
)
 
713

U.S. state and local municipal debt securities
19

 
—

 
—

 
19

Other debt and equity securities
325

 
—

 
—

 
325

Total marketable securities
$
1,469

 
$
2

 
$
(4
)
 
$
1,467

 
 
 
 
 
 
 
 
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Estimated
Fair Value
December 31, 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

Investments Classified by Contractual Maturity Date  
The amortized cost and estimated fair value of marketable securities at September 30, 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
$
918

 
$
918

Due after one year through three years
424

 
424

Due after three years through five years
25

 
24

Due after five years
100

 
98

 
1,467

 
1,464

Equity securities
2

 
3

 
$
1,469

 
$
1,467

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 September 30, 2013 and December 31, 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)
 
Balance 
September 30, 2013
 
 
 
 
 
 
 
Marketable Securities:
 
 
 
 
 
 
 
U.S. government and agency debt securities
$
340

 
$
1

 
$
—

 
$
341

Mortgage and asset-backed debt securities
—

 
69

 
—

 
69

Corporate debt securities
—

 
713

 
—

 
713

U.S. state and local municipal debt securities
—

 
19

 
—

 
19

Other debt and equity securities
—

 
325

 
—

 
325

Total marketable securities
340

 
1,127

 
—

 
1,467

Other investments
19

 
—

 
123

 
142

Total
$
359

 
$
1,127

 
$
123

 
$
1,609

 

 
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Balance 
December 31, 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

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 September 30, 2013 and 2012 (in millions):
 
Marketable
Securities
 
Other
Investments
 
Total
Balance on July 1, 2013
$
—

 
$
136

 
$
136

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 September 30, 2013
$
—

 
$
123

 
$
123

 
 
 
 
 
 
 
Marketable
Securities
 
Other
Investments
 
Total
Balance on July 1, 2012
$
—

 
$
190

 
$
190

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 September 30, 2012
$
—

 
$
177

 
$
177

The following table presents the changes in the above Level 3 instruments measured on a recurring basis for the nine months ended September 30, 2013 and 2012 (in millions):
 
Marketable
Securities
 
Other
Investments
 
Total
Balance on January 1, 2013
$
—

 
163

 
163

Transfers into (out of) Level 3
—

 
—

 
—

Net realized and unrealized gains (losses):
 
 
—

 
 
Included in earnings (in investment income)
—

 
(40
)
 
(40
)
 
 
 
 
 
 
Included in accumulated other comprehensive income (pre-tax)
—

 
—

 
—

Purchases
—

 
—

 
—

Sales
—

 
—

 
—

Balance on September 30, 2013
$
—

 
$
123

 
$
123

 
 
 
 
 
 
 
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)
—

 
(40
)
 
(40
)
Included in accumulated other comprehensive income (pre-tax)
—

 
—

 
—

Purchases
—

 
—

 
—

Sales
—

 
—

 
—

Balance on September 30, 2012
$
—

 
$
177


$
177