
(5)	Investments and Nonregulated Property, Net

Investments and nonregulated property, net consists of the following amounts as of December 31 (in millions):



	2012		2011

Nuclear decommissioning trust	$	337	$	306
Rabbi trusts	168		156
Auction rate securities	21		16
Nonregulated property, net of accumulated depreciation of $9 and $9, respectively	9		15
Coal transportation property, net of accumulated depreciation of $- and $4, respectively	—		8
Other	—		2
Total	$	535	$	503

MidAmerican Energy has established a trust for the investment of funds for decommissioning the Quad Cities Station. These investments in debt and equity securities are classified as available-for-sale and are reported at fair value. Funds are invested in the trust in accordance with applicable federal and state investment guidelines and are restricted for use as reimbursement for costs of decommissioning the Quad Cities Station, which are currently licensed for operation until December 2032. As of December 31, 2012 and 2011, the fair value of the trust's funds was invested as follows: 56% and 55%, respectively, in domestic common equity securities, 31% and 29%, respectively, in United States government securities, 10% and 10%, respectively, in domestic corporate debt securities and 3% and 6%, respectively, in other securities.

Rabbi trusts primarily hold corporate-owned life insurance on certain key executives and directors. The Rabbi trusts were established to hold investments used to fund the obligations of various nonqualified executive and director compensation plans and to pay the costs of the trusts. The amount represents the cash surrender value of all of the policies included in the Rabbi trusts, net of amounts borrowed against the cash surrender value. Changes in the cash surrender value of the policies are reflected in non-operating income - other, net on the Consolidated Statements of Operation.

MidAmerican Energy has investments in interest bearing auction rate securities with a par value of $35 million as of December 31, 2012 and 2011, and remaining maturities of 5 to 23 years. MidAmerican Energy considers the securities to be temporarily impaired, except for an other-than-temporary impairment of $3 million, after-tax, recorded in 2008, and has recorded unrealized losses on the securities of $5 million and $8 million, after tax, in AOCI as of December 31, 2012 and 2011, respectively. MidAmerican Energy does not intend to sell or expect to be required to sell the securities until the remaining principal investment is collected.

Nonregulated property includes computer software, land and other assets not recoverable for regulated utility purposes. Depreciable property consists primarily of computer software, which is amortized on a straight-line basis over five years. During 2012, MidAmerican Energy transferred $9 million of previously non-recoverable utility transmission assets from nonregulated property to utility plant along with the related accumulated depreciation. The coal transportation property is owned and operated by CBEC Railway Inc., a former subsidiary of MidAmerican Energy. MidAmerican Energy sold its 86.6% ownership interest in CBEC Railway Inc. in the fourth quarter of 2012.