Fair Value of Financial Investments (Tables)

9 Months Ended

Sep. 30, 2012

Financial Investments Included in Other Assets

Financial investments included in other assets were as follows, in millions:

	September 30,		December 31,
	2012		2011
Auction rate securities	$	22	$	22
Total recurring investments		22		22
Private equity funds		71		86
Other investments		4		4
Total non-recurring investments		75		90
Total	$	97	$	112

Company's Investments in Available-for-Sale Securities

The Company’s investments in available-for-sale securities at September 30, 2012 and December 31, 2011 were as follows, in millions:

			Pre-tax
	Cost Basis		Unrealized Gains		Unrealized Losses		Recorded Basis
September 30, 2012	$	19	$	3	$	—	$	22
December 31, 2011	$	19	$	3	$	—	$	22

Recurring Fair Value Measurements

Recurring Fair Value Measurements. Financial investments measured at fair value on a recurring basis at each reporting period and the amounts for each level within the fair value hierarchy were as follows, in millions:

			Fair Value Measurements Using
	Sep. 30, 2012		Quoted Market Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Auction rate securities	$	22		—		—	$	22
Total	$	22	$	—	$	—	$	22

			Fair Value Measurements Using
	Dec. 31, 2011		Quoted Market Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Auction rate securities		22	$	—	$	—		22
Total	$	22	$	—	$	—	$	22

Changes in Level 3 Financial Assets Measured at Fair Value on Recurring Basis

The following table summarizes the changes in Level 3 financial assets measured at fair value on a recurring basis for the nine months ended September 30, 2012 and the year ended December 31, 2011, in millions:

	September 30, 2012		December 31, 2011
	Auction Rate		Auction Rate
	Securities		Securities
Fair value at beginning of period	$	22	$	22
Total losses included in earnings		—		—
Unrealized (losses)		—		—
Purchases		—		—
Settlements		—		—
Transfer from Level 3 to Level 2		—		—
Fair value at period end	$	22	$	22

Non-Recurring Fair Value Measurements

Financial investments measured at fair value on a non-recurring basis during the nine-month period ended September 30, 2012 and the amounts for each level within the fair value hierarchy were as follows, in millions:

			Fair Value Measurements Using
					Significant
			Quoted		Other		Significant
			Market		Observable		Total
	Sep. 30,		Prices		Inputs		Inputs		Gains
	2012		(Level 1)		(Level 2)		(Level 3)		(Losses)
Private equity funds	$	2		—		—	$	2	$	(2	)
Total	$	2	$	—	$	—	$	2	$	(2	)

Income (Loss) from Financial Investments, Net, Included in Other, Net, Within Other Income (Expense), Net

Realized Gains (Losses). Income (loss) from financial investments, net, included in other, net, within other income (expense), net, was as follows, in millions:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2012		2011		2012			2011
Realized gains - distributions from private equity funds	$	2	$	19	$	20		$	28
Realized gains - sale of TriMas Corporation common stock		—		—		—			41
Total income from financial investments	$	2	$	19	$	20		$	69
Impairment charges - private equity funds	$	—	$	—	$	(2	)	$	—