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Investments In Marketable Securities
 3 Months Ended
Sep. 30, 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 September 30, 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.

   September 30, 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 $ - $ 440 $ - $ 440 $ - $ 665 $ - $ 665
 Certificates of deposit   -   338   -   338   -   576   -   576
 Government debt securities   -   26   -   26   -   31   -   31
 Subtotal    -   804   -   804   -   1,272   -   1,272
Equity securities:                        
 Mutual funds   -   52   -   52   -   67   -   67
 Common stock   1   -   -   1   1   -   -   1
 Subtotal    1   52   -   53   1   67   -   68
Total available-for-sale   1   856   -   857   1   1,339   - $ 1,340
TRADING:                        
Equity securities:                        
 Mutual funds   12   -   -   12   12   -   -   12
Total trading   12   -   -   12   12   -   -   12
TOTAL  $ 13 $ 856 $ - $ 869 $ 13 $ 1,339 $ - $ 1,352
                          
Held-to-maturity securities            4            4
Total marketable securities          $ 873          $ 1,356

(1)        Cost/amortized cost approximated fair value at September 30, 2012 and December 31, 2011, with the exception of certain common stock investments with a cost basis and fair value of $1 million at September 30, 2012, and a cost basis and fair value of $4 million and $1 million, respectively, at December 31, 2011.

As of September 30, 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 the three and nine months ended September 30, 2012 and 2011. Gains and losses on the sale of investments are determined using the specific identification method. For the three and nine months ended September 30, 2012 and 2011, there were no realized losses 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 Nine Months Ended
   September 30, September 30,
   2012 2011 2012 2011
              
   (in millions)
              
Losses included in earnings that relate to trading securities             
 held at the reporting date $ - $ (2) $ - $ (1)
Unrealized gains (losses) on available-for-sale securities             
 included in other comprehensive income   (1)   (1)   (1)   (4)
Proceeds from sales of available-for-sale securities   1,513   1,134   5,160   4,218
Gross realized gains on sales   -   1   1   5