Securities (Tables)

9 Months Ended

Sep. 30, 2012

Summary of Securities Available-for-Sale investments

Securities consisted of the following available-for-sale investments:

September 30, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in millions)
Continuing operations:
Obligations of U.S. states and political subdivisions	$	1	$	-	$	-	$	1
Equity securities		11		-		-		11
Money market funds		104		-		-		104
Subtotal		116		-		-		116
Accrued investment income		-		-		-		-
Securities available-for-sale – continuing operations	$	116	$	-	$	-	$	116
Securities available-for-sale – discontinued operations(4)	$	1,283	$	191	$	-	$	1,474

December 31, 2011	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in millions)
Continuing operations:
U.S. Treasury	$	80	$	-	$	-		$	80
U.S. government sponsored enterprises(1)		1		-		-			1
U.S. corporate debt securities(2)		57		1		(1	)		57
Foreign debt securities(3)		26		-		-			26
Equity securities		10		-		-			10
Money market funds		13		-		-			13
Subtotal		187		1		(1	)		187
Accrued investment income		1		-		-			1
Securities available-for-sale – continuing operations	$	188	$	1	$	(1	)	$	188
Securities available-for-sale – discontinued operations(4)	$	1,694	$	165	$	(8	)	$	1,851

⁽¹⁾  Represents mortgage-backed securities issued by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation as of December 31, 2011.

⁽²⁾  The majority of our U.S. corporate debt securities represented investments in the financial services, consumer products and insurance sectors at December 31, 2011.

⁽³⁾  We did not hold any foreign debt securities issued by the governments of Portugal, Ireland, Italy, Greece or Spain at December 31, 2011. We did not hold any foreign debt securities at September 30, 2012.

⁽⁴⁾  Securities available-for-sale in our discontinued operations relates to our discontinued Insurance business and primarily consists of U.S. corporate debt securities, money market funds and foreign debt securities at September 30, 2012 and December 31, 2011.

Summary of Gross Unrealized Losses and Related Fair Values

The table below provides a summary of gross unrealized losses and related fair values as of December 31, 2011 for available-for-sale securities for continuing operations classified as to the length of time the losses have existed.

	Less Than One Year							Greater Than One Year
December 31, 2011	Number of Securities		Gross Unrealized Losses			Aggregate Fair Value of Investments		Number of Securities		Gross Unrealized Losses		Aggregate Fair Value of Investments
	(dollars are in millions)
U.S. corporate debt securities		17	$	(1	)	$	26		-	$	-	$	-
Foreign debt securities		10		-			15		-		-		-
Equity securities		1		-			5		-		-		-
		28	$	(1	)	$	46		-	$	-	$	-

Summary of Contractual Maturities and Yields on Investments in Debt Securities

Contractual maturities and yields on investments in debt securities for continuing operations for those with set maturities were as follows:

September 30, 2012	Due Within 1 Year		After 1 but Within 5 Years		After 5 but Within 10 Years		After 10 Years			Total
	(dollars are in millions)
Obiligations of U.S. states and political subdivisions:
Amortized cost	$	-	$	-	$	-	$	1		$	1
Fair value		-		-		-		1			1
Yield(1)		-		-		-		5.55	%		5.55	%

⁽¹⁾  Computed by dividing annualized interest by the amortized cost of respective investment securities.