Quarterly report pursuant to Section 13 or 15(d)

INVESTMENTS AND RESTRICTED CASH (tables)

v2.4.0.8
INVESTMENTS AND RESTRICTED CASH (tables)
 9 Months Ended
Sep. 30, 2014
Marketable Securities [Abstract]  
Available-for-sale Securities
The following is a summary of marketable securities classified as trading and available-for-sale as of September 30, 2014 and December 31, 2013 (in millions):
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Estimated
Fair Value
September 30, 2014
 
 
 
 
 
 
 
Current marketable securities:
 
 
 
 
 
 
 
U.S. government and agency debt securities
$
338

 
$
—

 
$
(1
)
 
$
337

Mortgage and asset-backed debt securities
95

 
1

 
(1
)
 
95

Corporate debt securities
817

 
1

 
—

 
818

Other debt and equity securities
117

 
—

 
—

 
117

Total marketable securities
$
1,367

 
$
2

 
$
(2
)
 
$
1,367

 
 
 
 
 
 
 
 
December 31, 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

Other debt and equity securities
5

 
—

 
—

 
5

Total marketable securities
$
582

 
$
2

 
$
(4
)
 
$
580

Investments Classified by Contractual Maturity Date
The amortized cost and estimated fair value of marketable securities at September 30, 2014, 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
$
807

 
$
807

Due after one year through three years
450

 
450

Due after three years through five years
15

 
15

Due after five years
93

 
93

 
1,365

 
1,365

Equity securities
2

 
2

 
$
1,367

 
$
1,367

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, 2014 and December 31, 2013, 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, 2014
 
 
 
 
 
 
 
Marketable Securities:
 
 
 
 
 
 
 
U.S. government and agency debt securities
$
337

 
$
—

 
$
—

 
$
337

Mortgage and asset-backed debt securities
—

 
95

 
—

 
95

Corporate debt securities
—

 
818

 
—

 
818

Other debt and equity securities
—

 
117

 
—

 
117

Total marketable securities
337

 
1,030

 
—

 
1,367

Other investments
19

 
—

 
84

 
103

Total
$
356

 
$
1,030

 
$
84

 
$
1,470

December 31, 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

Other debt and equity securities
—

 
5

 
—

 
5

Total marketable securities
353

 
227

 
—

 
580

Other investments
19

 
—

 
110

 
129

Total
$
372

 
$
227

 
$
110

 
$
709

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
 
Marketable
Securities
 
Other
Investments
 
Total
Balance on January 1, 2014
$
—

 
110

 
110

Transfers into (out of) Level 3
—

 
—

 
—

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

 
(26
)
 
(26
)
Included in accumulated other comprehensive income (pre-tax)
—

 
—

 
—

Purchases
—

 
—

 
—

Sales
—

 
—

 
—

Balance on September 30, 2014
$
—

 
$
84

 
$
84

 
 
 
 
 
 
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

The following table presents the changes in the above Level 3 instruments measured on a recurring basis for the three months ended September 30, 2014 and 2013 (in millions):
 
Marketable
Securities
 
Other
Investments
 
Total
Balance on July 1, 2014
$
—

 
$
95

 
$
95

Transfers into (out of) Level 3
—

 
—

 
—

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

 
(11
)
 
(11
)
Included in accumulated other comprehensive income (pre-tax)
—

 
—

 
—

Purchases
—

 
—

 
—

Sales
—

 
—

 
—

Balance on September 30, 2014
$
—

 
$
84

 
$
84

 
 
 
 
 
 
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