Investments In Marketable Securities

3 Months Ended

Mar. 31, 2012

INVESTMENTS IN MARKETABLE SECURITIES

4. INVESTMENTS IN MARKETABLE SECURITIES

The following table sets forth the Company's investments in marketable debt and equity securities as of March 31, 2012 and December 31, 2011 by security class and by level within the fair value hierarchy. The security classes are determined based on the nature and risk of a security and are consistent with how the Company manages, monitors and measures its marketable securities.

		March 31, 2012								December 31, 2011
		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
		(in millions)
AVAILABLE-FOR-SALE:(1)
Debt securities:
	Unsecured debentures(2)	$	-	$	975	$	-	$	975	$	-	$	665	$	-	$	665
	Certificates of deposit(2)		-		645		-		645		-		576		-		576
	Government debt securities		-		28		-		28		-		31		-		31
	Subtotal		-		1,648		-		1,648		-		1,272		-		1,272
Equity securities:
	Mutual funds		1		67		-		68		-		67		-		67
	Common stock		1		-		-		1		1		-		-		1
	Subtotal		2		67		-		69		1		67		-		68
Total available-for-sale			2		1,715		-		1,717		1		1,339		-	$	1,340
TRADING:
Equity securities:
	Mutual funds		12		-		-		12		12		-		-		12
Total trading			12		-		-		12		12		-		-		12
TOTAL		$	14	$	1,715	$	-	$	1,729	$	13	$	1,339	$	-	$	1,352
Held-to-maturity securities									11								4
Total marketable securities								$	1,740							$	1,356

(1)Cost/amortized cost approximated fair value at March 31, 2012 and December 31, 2011, with the exception of certaincommon stock investments with a cost basis and fair value of $1 million at March 31, 2012, and a cost basis and fair value of $4 million and $1 million, respectively, at December 31, 2011.

(2)Unsecured debentures are instruments similar to certificates of deposit that are held primarily by our subsidiaries in Brazil. The unsecured debentures and certificates of deposit included here do not qualify as cash equivalents and meet the definition of a security under the relevant guidance and are therefore classified as available-for-sale securities.

As of March 31, 2012, all available-for-sale debt securities had stated maturities within one year.

The following table summarizes the pre-tax gains and losses related to available-for-sale and trading securities for thethree months ended March 31, 2012 and 2011. Gains and losses on the sale of investments are determined using the specific identification method.For the three months ended March 31, 2012 and 2011, there were no realizedlosses on the sale of available-for-sale securities and no other-than-temporary impairment of marketable securities recognized in earnings or other comprehensive income.

		Three Months Ended
		March 31,
		2012		2011
		(in millions)
Gains included in earnings that relate to trading securities held at the reporting date		$	-	$	1
Unrealized gains (losses) on available-for-sale securities included in other
	comprehensive income		-		(2)
Proceeds from sales of available-for-sale securities			1,523		1,237
Gross realized gains on sales			1		1