Investments In Marketable Securities

12 Months Ended

Dec. 31, 2012

INVESTMENTS IN MARKETABLE SECURITIES

5. INVESTMENTS IN MARKETABLE SECURITIES

The following table sets forth the Company's investments in marketable debt and equity securities classified as trading and available-for-sale as of December 31, 2012 and 2011 by type of investment and by level within the fair value hierarchy. The security types are determined based on the nature and risk of the security and are consistent with how the Company manages, monitors and measures its securities.

		December 31,
		2012								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	$	-	$	448	$	-	$	448	$	-	$	665	$	-	$	665
	Certificates of deposit		-		143		-		143		-		576		-		576
	Government debt securities		-		34		-		34		-		31		-		31
	Subtotal		-		625		-		625		-		1,272		-		1,272
Equity securities:
	Mutual funds		-		56		-		56		-		67		-		67
	Common stock		-		-		-		-		1		-		-		1
	Subtotal		-		56		-		56		1		67		-		68
Total available-for-sale			-		681		-		681		1		1,339		-		1,340
TRADING:
Equity securities:
	Mutual funds		12		-		-		12		12		-		-		12
Total trading			12		-		-		12		12		-		-		12
TOTAL		$	12	$	681	$	-	$	693	$	13	$	1,339	$	-	$	1,352
Held-to-maturity securities									3								4
Total marketable securities								$	696							$	1,356

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(1)Amortized cost approximated fair value at December 31, 2012 and 2011, with the exception of certain common stock investments with a cost basis of $4 million carried at their fair value of $1 million at December 31, 2011.

As of December 31, 2012 and 2011, the Company did not have any Level 3 marketable securities. During 2011, the Company sold Level 3 market securities of $42 million held at the beginning of the year. As of December 31, 2012 and 2011, all available-for-sale debt securities had stated maturities of less than one year.

The following table summarizes the pre-tax gains and losses related to available-for-sale securities for the years ended December 31, 2012, 2011 and 2010.Gains and losses on the sale of investments are determined using the specific identification method.There was no other-than-temporary impairment of marketable securities recognized in earnings or other comprehensive income for the years ended December 31, 2012, 2011 and 2010.

		2012		2011		2010
		(in millions)
Gains (losses) included in earnings that relate to trading securities
	held at the reporting date	$	(1)	$	1	$	-
Unrealized gains (losses) on available-for-sale securities included in
	other comprehensive income		1		2		2
(Gains) reclassified out of other comprehensive income into earnings			(1)		-		-
Gross proceeds from sales of available-for-sale securities			6,489		6,119		5,852
Gross realized gains on sales			2		3		2