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Investments in Marketable Securities
 12 Months Ended
Mar. 31, 2015
Marketable Securities [Abstract]  
Investments in Marketable Securities

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:

 

 

 

March 31, 2015

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

(Dollars in millions)

 

cost

 

 

gains

 

 

losses

 

 

value

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agency obligations

 

$

4,357

 

 

$

3

 

 

$

(1

)

 

$

4,359

 

Municipal debt securities

 

 

10

 

 

 

2

 

 

 

-

 

 

 

12

 

Certificates of deposit

 

 

175

 

 

 

-

 

 

 

-

 

 

 

175

 

Commercial paper

 

 

37

 

 

 

-

 

 

 

-

 

 

 

37

 

Corporate debt securities

 

 

138

 

 

 

7

 

 

 

-

 

 

 

145

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government agency

 

 

57

 

 

 

2

 

 

 

-

 

 

 

59

 

Non-agency residential

 

 

3

 

 

 

1

 

 

 

-

 

 

 

4

 

Non-agency commercial

 

 

43

 

 

 

1

 

 

 

-

 

 

 

44

 

Asset-backed securities

 

 

39

 

 

 

-

 

 

 

-

 

 

 

39

 

Equity instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income mutual funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term floating NAV fund II

 

 

148

 

 

 

-

 

 

 

-

 

 

 

148

 

Short-term sector fund

 

 

35

 

 

 

2

 

 

 

-

 

 

 

37

 

U.S. government sector fund

 

 

311

 

 

 

24

 

 

 

-

 

 

 

335

 

Municipal sector fund

 

 

19

 

 

 

1

 

 

 

-

 

 

 

20

 

Investment grade corporate sector fund

 

 

256

 

 

 

15

 

 

 

(3

)

 

 

268

 

High-yield sector fund

 

 

50

 

 

 

6

 

 

 

(1

)

 

 

55

 

Real return sector fund

 

 

235

 

 

 

-

 

 

 

(3

)

 

 

232

 

Mortgage sector fund

 

 

390

 

 

 

9

 

 

 

-

 

 

 

399

 

Asset-backed securities sector fund

 

 

63

 

 

 

9

 

 

 

-

 

 

 

72

 

Emerging market sector fund

 

 

73

 

 

 

-

 

 

 

(2

)

 

 

71

 

International sector fund

 

 

146

 

 

 

14

 

 

 

-

 

 

 

160

 

Equity mutual fund

 

 

190

 

 

 

270

 

 

 

-

 

 

 

460

 

Total investments in marketable securities

 

$

6,775

 

 

$

366

 

 

$

(10

)

 

$

7,131

 

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”).  If we elect to redeem shares, the Trust will normally redeem all shares for cash, but may, in unusual circumstances, redeem amounts exceeding the lesser of $250 thousand or 1 percent of the Trust’s asset value by payment in kind of securities held by the respective fund during any 90-day period.


Note 3 – Investments in Marketable Securities (Continued)

Unrealized Losses on Securities

Investments in marketable securities at a consecutive loss position for less than twelve months and for greater than twelve months were not significant at March 31, 2015 and 2014.

Realized Gains and Losses on Securities

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

 

 

 

Years Ended March 31,

 

(Dollars in millions)

 

2015

 

 

2014

 

 

2013

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

Realized gains on sales

 

$

71

 

 

$

59

 

 

$

23

 

Realized losses on sales

 

$

(1

)

 

$

(4

)

 

$

(2

)

Other-than-temporary impairment

 

$

-

 

 

$

(55

)

 

$

-

 

 

Other-than-temporary impairment write-downs were not significant during the year ended March 31, 2015. Substantially all of the other-than-temporary impairment write-downs of $55 million during the year ended March 31, 2014 were related to fixed income mutual funds. For fiscal 2013, there were no available-for-sale securities with unrealized losses that were deemed to be other-than-temporarily impaired.

Contractual Maturities

The amortized cost, fair value and contractual maturities of available-for-sale debt instruments at March 31, 2015 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.

 

 

 

March 31, 2015

 

(Dollars in millions)

 

Amortized Cost

 

 

Fair Value

 

Available-for-sale debt instruments:

 

 

 

 

 

 

 

 

Due within 1 year

 

$

4,452

 

 

$

4,451

 

Due after 1 year through 5 years

 

 

121

 

 

 

124

 

Due after 5 years through 10 years

 

 

82

 

 

 

85

 

Due after 10 years

 

 

62

 

 

 

68

 

Mortgage-backed and asset-backed securities1

 

 

142

 

 

 

146

 

Total

 

$

4,859

 

 

$

4,874

 

1  Mortgage-backed and asset-backed securities are shown separately from other maturity groupings as 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 March 31, 2015 and 2014.