Investments in Marketable Securities

3 Months Ended

Sep. 30, 2014

Investments in Marketable Securities [Abstract]

Note 3 – 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, 2014
				Amortized		Unrealized		Unrealized		Fair
(Dollars in millions)				cost		gains		losses		value
Available-for-sale securities:
	Debt instruments:
		U.S. government and agency obligations		$	2,246	$	1	$	(1)	$	2,246
		Municipal debt securities			11		1		-		12
		Certificates of deposit			30		-		-		30
		Commercial paper			271		-		-		271
		Corporate debt securities			163		5		(1)		167
		Mortgage-backed securities:
			U.S. government agency		55		2		-		57
			Non-agency residential		3		1		-		4
			Non-agency commercial		46		1		(1)		46
		Asset-backed securities			30		-		-		30
	Equity instruments:
		Fixed income mutual funds:
			Short-term floating NAV fund II		190		-		-		190
			Short-term sector fund		35		2		-		37
			U.S. government sector fund		271		3		-		274
			Municipal sector fund		18		1		-		19
			Investment grade corporate sector fund		239		26		-		265
			High-yield sector fund		32		6		(1)		37
			Real return sector fund		229		-		-		229
			Mortgage sector fund		432		9		-		441
			Asset-backed securities sector fund		33		9		-		42
			Emerging market sector fund		54		1		-		55
			International sector fund		142		4		-		146
		Equity mutual fund			203		270		-		473
Total investments in marketable securities				$	4,733	$	342	$	(4)	$	5,071

Note 3 – Investments in Marketable Securities (Continued)

					March 31, 2014
				Amortized		Unrealized		Unrealized		Fair
(Dollars in millions)				cost		gains		losses		value
Available-for-sale securities:
	Debt instruments:
		U.S. government and agency obligations		$	652	$	1	$	(1)	$	652
		Municipal debt securities			10		1		-		11
		Certificates of deposit			1,599		-		-		1,599
		Commercial paper			507		-		-		507
		Corporate debt securities			164		6		(1)		169
		Mortgage-backed securities:
			U.S. government agency		60		1		(1)		60
			Non-agency residential		4		1		-		5
			Non-agency commercial		44		1		(2)		43
		Asset-backed securities			27		-		-		27
	Equity instruments:
		Fixed income mutual funds:
			Short-term sector fund		41		3		-		44
			U.S. government sector fund		329		-		(2)		327
			Municipal sector fund		21		1		-		22
			Investment grade corporate sector fund		283		33		-		316
			High-yield sector fund		38		7		-		45
			Real return sector fund		275		-		(1)		274
			Mortgage sector fund		519		1		-		520
			Asset-backed securities sector fund		40		10		-		50
			Emerging market sector fund		65		1		-		66
			International sector fund		170		2		(1)		171
		Equity mutual fund			217		264		-		481
Total investments in marketable securities				$	5,065	$	333	$	(9)	$	5,389

The fixed income mutual funds are investments in funds that are privately placed and managed by an open-end investment management company (the “Trust”). The total fair value of private placement fixed income mutual funds was $1.7 billion and $1.8 billion at September 30, 2014 and March 31, 2014, respectively. We may redeem shares during any 90 day period solely in cash up to the lesser of $250 thousand or 1 percent of the Trust's asset value at the beginning of such period. Although the Trust will normally redeem all shares for cash, it may, in unusual circumstances, redeem amounts exceeding the lesser of the two amounts described above, in whole or in part, by payment in kind of securities held by the respective fund.Note 3 – Investments in Marketable Securities (Continued)

Unrealized Losses on Securities

At September 30, 2014 and March 31, 2014, the unrealized losses of investments in marketable securities in a loss position were not significant.

Realized Gains and Losses on Securities

The following table represents realized gains and losses by transaction type for the following:

		Three Months Ended September 30,				Six Months Ended September 30,
(Dollars in millions)		2014		2013		2014		2013
Available-for-sale securities:
	Realized gains on sales	$	32	$	11	$	44	$	16
	Realized losses on sales	$	-	$	(2)	$	-	$	(3)
	Other-than-temporary impairment	$	-	$	(23)	$	-	$	(53)

Other-than-temporary impairment write-downs were not significant during the three and six months ended September 30, 2014. Substantially all of the other-than-temporary impairment write-downs of $23 million and $53 million during the three and six months ended September 30, 2013, respectively, were related to fixed income mutual funds.

Contractual Maturities

The fair value and contractual maturities of available-for-sale debt instruments at September 30, 2014 are summarized in the following table. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations.

		September 30, 2014
(Dollars in millions)		Amortized Cost		Fair Value
Available-for-sale debt instruments:
	Due within 1 year	$	2,427	$	2,427
	Due after 1 year through 5 years		171		172
	Due after 5 years through 10 years		72		73
	Due after 10 years		51		54
	Mortgage-backed and asset-backed securities¹		134		137
Total		$	2,855	$	2,863
¹Mortgage-backed and asset-backed securities are shown separately because these securities do not have a single 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, 2014 and March 31, 2014.