Investments in Marketable Securities (Disclosure)

6 Months Ended

Sep. 30, 2011

Investments In Marketable Securities Disclosure [Abstract]

Available For Sale Securities Text Block

Note 4 – Investments in Marketable Securities

We classify all of our investments in marketable securities as available-for-sale. The amortized cost and estimated fair value of investments in marketable securities and related unrealized gains and losses were as follows:

				September 30, 2011
				Amortized		Unrealized		Unrealized			Fair
(Dollars in millions)				cost		gains		losses			value
Available-for-sale securities:
	Debt instruments:
		U.S. government and agency obligations		$	82	$	1	$	-	$	83
		Municipal debt securities			15		3		-		18
		Certificates of deposit and commercial paper			1,906		-		-		1,906
		Foreign government debt securities			3		-		-		3
		Corporate debt securities			130		5		(2)		133
		Mortgage-backed securities:
			U.S. government agency		88		5		-		93
			Non-agency residential		9		1		-		10
			Non-agency commercial		26		-		-		26
		Asset-backed securities			19		-		-		19
	Equity instruments:
		Fixed income mutual funds:
			Short-term sector fund		38		-		-		38
			U.S. government sector fund		327		-		(10)		317
			Municipal sector fund		18		1		-		19
			Investment grade corporate sector fund		285		26		-		311
			High-yield sector fund		28		5		-		33
			Real return sector fund		191		7		-		198
			Mortgage sector fund		630		-		(1)		629
			Asset-backed securities sector fund		35		5		-		40
			Emerging market sector fund		56		1		(2)		55
			International sector fund		140		11		-		151
		Equity mutual fund – S&P 500 Index			264		95		-		359
Total investments in marketable securities				$	4,290	$	166	$	(15)	$	4,441

Note 4 – Investments in Marketable Securities (Continued)
					March 31, 2011
				Amortized		Unrealized		Unrealized			Fair
(Dollars in millions)					cost		gains		losses		value
Available-for-sale securities:
	Debt instruments:
		U.S. government and agency obligations		$	96	$	1	$	(2)	$	95
		Municipal debt securities			15		-		-		15
		Certificates of deposit and commercial paper			2,205		1		-		2,206
		Foreign government debt securities			5		-		-		5
		Corporate debt securities			121		5		-		126
		Mortgage-backed securities:
			U.S. government agency		77		2		(1)		78
			Non-agency residential		7		1		-		8
			Non-agency commercial		17		-		-		17
		Asset-backed securities			22		-		-		22
	Equity instruments:
		Fixed income mutual funds:
			Short-term sector fund		37		2		-		39
			U.S. government sector fund		526		-		(48)		478
			Municipal sector fund		18		-		-		18
			Investment grade corporate sector fund		279		38		-		317
			High-yield sector fund		27		8		-		35
			Real return sector fund		77		-		(1)		76
			Mortgage sector fund		644		-		(5)		639
			Asset-backed securities sector fund		34		5		-		39
			Emerging market sector fund		56		2		-		58
			International sector fund		136		2		(2)		136
		Equity mutual fund – S&P 500 Index			259		156		-		415
Total investments in marketable securities				$	4,658	$	223	$	(59)	$	4,822

Note 4 – Investments in Marketable Securities (Continued)

The fixed income mutual funds are private placement funds. The total fair value of private placement fixed income mutual funds was $1.8 billion at both September 30, 2011 and March 31, 2011. For each fund, cash redemption limits may apply to each 90 day period.

OTTI Securities

For the three and six months endedSeptember 30, 2011and 2010, there were no available-for-sale (“AFS”)debt or equity securities deemed to be other-than-temporarilyimpaired, and therefore, all unrealized losses on AFS debt and equity securities were recognized in Accumulated Other Comprehensive Income.

Unrealized Losses on Securities
The following tables present the aging of fair value and gross unrealized losses for AFS securities:
				Less than 12 months as of
			September 30, 2011				March 31, 2011
			Fair		Unrealized		Fair		Unrealized
(Dollars in millions)			value		losses		value		losses
Available-for-sale securities:
Debt instruments:
	Corporate debt securities		$	38	$	(2)	$	-	$	-
	U.S. government and agency
		obligations		-		-		55		(2)
	U.S. government agency mortgage-
		backed securities		-		-		38		(1)
Equity instruments:
	U.S. government sector fund			317		(10)		478		(48)
	Real return sector fund			-		-		76		(1)
	Mortgage sector fund			629		(1)		639		(5)
	Emerging market sector fund			44		(2)		-		-
	International sector fund			-		-		109		(2)
Total investments in marketable
	securities		$	1,028	$	(15)	$	1,395	$	(59)

At September 30, 2011 and March 31, 2011, we did not own any investments that were in a continuous unrealized loss position for 12 consecutive months or more.

Note 4 – Investments in Marketable Securities (Continued)

Contractual Maturities and Yields

The contractual maturities of investments in marketable securities at September 30, 2011 are summarized in the following table. Prepayments may cause actual maturities to differ from scheduled maturities.

		Due in 1 Year or				Due after 1 Year				Due after 5 Years
			Less			through 5 Years				through 10 Years				Due after 10 Years					Total
(Dollars in millions)		Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield
Fair Value of Available-
for-Sales Securities:
Debt instruments:
U.S. government and
	agency obligations	$	14	1.07	%	$	-	-	%	$	68	2.20	%	$	1	6.58	%	$	83	2.09	%
Municipal debt securities			-	-			-	-			-	-			18	6.08			18	6.08
Certificates of deposit and
	commercial paper		1,906	0.14			-	-			-	-			-	-			1,906	0.14
Foreign government debt
	securities		-	-			3	2.93			-	-			-	-			3	2.93
Corporate debt
	securities		8	5.10			62	4.28			53	5.33			10	6.06			133	4.84
Mortgage-backed securities:
	U.S. government agency		-	-			-	-			3	5.05			90	4.14			93	4.18
	Non-agency residential		-	-			-	-			-	-			10	7.21			10	7.21
	Non-agency commercial		-	-			-	-			4	4.78			22	4.28			26	4.29
Asset-backed securities			-	-			9	2.37			3	0.94			7	1.86			19	2.00
Debt instruments total			1,928	0.17			74	4.01			131	3.60			158	4.59			2,291	0.79
Equity instruments:
Fixed income mutual funds																			1,791	3.16
Equity mutual funds																			359	3.03
Equity instruments total			-				-				-				-				2,150	3.14
Total fair value		$	1,928	0.17	%	$	74	4.01	%	$	131	3.60	%	$	158	4.59	%	$	4,441	1.93	%
Total amortized cost		$	1,929			$	73			$	128			$	148			$	4,290

Yields are based on the amortized cost balances of securities held at September 30, 2011. Yields are derived by aggregating the monthly result of interest and dividend income (including the effect of related amortization of premiums and accretion of discounts) divided by amortized cost. The total amortized cost includes amortized cost on equity securities that do not have a maturity date.

Securities on Deposit

In accordance with statutory requirements, we had on deposit with state insurance authorities U.S. debt securities with amortized cost and fair value of $6 million at both September 30, 2011 and March 31, 2011.

Realized Gains and Losses on Sales of Available-for-Sale Securities

Realized gains from the sale of AFS securities were $12 million for the first half of fiscal 2012. There were no gains in the second quarter of fiscal 2012. This compares to gains of $47 million and $34 million for the same periods in fiscal 2011. Realized losses from the sale of AFS securities were $35 million for both the first half and second quarter of fiscal 2012, compared to $16 million and $14 million for the same periods in fiscal 2011.