Fair Value Measurements

9 Months Ended

Sep. 30, 2012

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Instruments Measured at Fair Value on a Recurring Basis. The following tables present our cash and marketable securities’ costs, gross unrealized gains, gross unrealized losses and fair value by major security type recorded as cash and cash equivalents or short-term or long-term marketable securities:

	September 30, 2012
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash and Cash Equivalents		Short-Term Marketable Securities		Long-Term Marketable Securities
							(in millions)
Cash	$	206	$	—	$	—	$	206	$	206	$	—	$	—
Level 1:
Bank and time deposits	386		—		—		386		385		1		—
Money market funds	286		—		—		286		286		—		—
U.S. treasury and agency obligations	893		1		—		894		38		240		616
Corporate bonds	10		—		—		10		—		10		—
Subtotal	1,575		1		—		1,576		709		251		616
Level 2:
Commercial paper	597		—		—		597		496		101		—
Corporate bonds	746		2		—		748		5		360		383
Asset-backed securities and other	63		—		—		63		—		23		40
Subtotal	1,406		2		—		1,408		501		484		423
Level 3:
None	—		—		—		—		—		—		—
Total	$	3,187	$	3	$	—	$	3,190	$	1,416	$	735	$	1,039

	December 31, 2011
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Cash and Cash Equivalents		Short-Term Marketable Securities		Long-Term Marketable Securities
								(in millions)
Cash	$	154	$	—	$	—		$	154	$	154	$	—	$	—
Level 1:
Bank and time deposits	2,717		—		—			2,717		2,716		—		1
Money market funds	914		—		—			914		914		—		—
U.S. treasury and agency obligations	469		—		—			469		—		90		379
Corporate bonds	7		—		—			7		—		7		—
Subtotal	4,107		—		—			4,107		3,630		97		380
Level 2:
Commercial paper	381		—		—			381		311		70		—
Corporate bonds	543		1		(2		)	542		51		211		280
Asset-backed securities and other	21		—		—			21		—		5		16
Subtotal	945		1		(2		)	944		362		286		296
Level 3:
None	—		—		—			—		—		—		—
Total	$	5,206	$	1	$	(2	)	$	5,205	$	4,146	$	383	$	676

There were no transfers between Level 1, Level 2 or Level 3 securities in the nine months ended September 30, 2012. All of our long-term marketable securities had maturities of between one and three years in duration at September 30, 2012. Our cash, cash equivalents and marketable securities at September 30, 2012 consisted of $1.88 billion held domestically, with the remaining balance of $1.31 billion held by foreign subsidiaries.

At September 30, 2012 we had 39 investments with a fair value of $382 million that were in an unrealized loss position for less than 12 months. Our gross unrealized losses of less than one million dollars for these investments at September 30, 2012 were due to changes in interest rates. We have determined that the gross unrealized losses on these investments at September 30, 2012 are temporary in nature. We evaluate securities for other-than-temporary impairment on a quarterly basis. Impairment is evaluated considering numerous factors, and their relative significance varies depending on the situation. Factors considered include the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the issuer, and our intent and ability to hold the investment in order to allow for an anticipated recovery in fair value.

Instruments Not Recorded at Fair Value on a Recurring Basis. We measure the fair value of our long-term debt carried at amortized cost quarterly for disclosure purposes. The estimated fair value of long-term debt is determined by Level 2 inputs and is based primarily on quoted market prices for the same or similar issues. Based on the market prices, the fair value of our long-term debt was $1.76 billion and $1.22 billion as of September 30, 2012 and December 31, 2011 respectively. The recorded values of all our accounts receivable and accounts payable approximate their current fair values because of their nature and respective relatively short maturity dates or durations.

Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis. We measure the fair value of our cost method investments when they are deemed to be other-than-temporarily impaired, assets acquired and liabilities assumed in a business acquisition, and goodwill and other long lived assets when they are held for sale or determined to be impaired. See Notes 3 and 10 for discussion on fair value measurements of certain assets and liabilities recorded at fair value on a non-recurring basis.