Investments in Marketable Securities (Disclosure)

3 Months Ended

Jun. 30, 2011

Investments In Marketable Securities Disclosure Abstract

Available For Sale Securities Text Block

Note 4 – Investments in Marketable Securities

We classify all of our investments in marketable securities as available-for-sale. The amortized cost and estimated fair value of investments in marketable securities and related unrealized gains and losses were as follows:

				June 30, 2011
				Amortized		Unrealized		Unrealized			Fair
(Dollars in millions)				cost		gains		losses			value
Available-for-sale securities:
	Debt instruments:
		U.S. government and agency obligations		$	73	$	-	$	(1)	$	72
		Municipal debt securities			15		1		-		16
		Certificates of deposit and commercial paper			2,665		-		-		2,665
		Foreign government debt securities			5		-		-		5
		Corporate debt securities			134		6		-		140
		Mortgage-backed securities:
			U.S. government agency		73		3		(1)		75
			Non-agency residential		10		1		-		11
			Non-agency commercial		27		1		-		28
		Asset-backed securities			22		-		-		22
	Equity instruments:
		Fixed income mutual funds:
			Short-term sector fund		37		1		-		38
			U.S. government sector fund		584		-		(38)		546
			Municipal sector fund		18		1		-		19
			Investment grade corporate sector fund		283		41		-		324
			High-yield sector fund		27		8		-		35
			Real return sector fund		112		-		-		112
			Mortgage sector fund		442		-		(9)		433
			Asset-backed securities sector fund		34		5		-		39
			Emerging market sector fund		56		4		-		60
			International sector fund		138		2		(2)		138
		Equity mutual fund – S&P 500 Index			262		154		-		416
Total investments in marketable securities				$	5,017	$	228	$	(51)	$	5,194

Note 4 – Investments in Marketable Securities (Continued)

					March 31, 2011
				Amortized		Unrealized		Unrealized			Fair
(Dollars in millions)					cost		gains		losses		value
Available-for-sale securities:
	Debt instruments:
		U.S. government and agency obligations		$	96	$	1	$	(2)	$	95
		Municipal debt securities			15		-		-		15
		Certificates of deposit and commercial paper			2,205		1		-		2,206
		Foreign government debt securities			5		-		-		5
		Corporate debt securities			121		5		-		126
		Mortgage-backed securities:
			U.S. government agency		77		2		(1)		78
			Non-agency residential		7		1		-		8
			Non-agency commercial		17		-		-		17
		Asset-backed securities			22		-		-		22
	Equity instruments:
		Fixed income mutual funds:
			Short-term sector fund		37		2		-		39
			U.S. government sector fund		526		-		(48)		478
			Municipal sector fund		18		-		-		18
			Investment grade corporate sector fund		279		38		-		317
			High-yield sector fund		27		8		-		35
			Real return sector fund		77		-		(1)		76
			Mortgage sector fund		644		-		(5)		639
			Asset-backed securities sector fund		34		5		-		39
			Emerging market sector fund		56		2		-		58
			International sector fund		136		2		(2)		136
		Equity mutual fund – S&P 500 Index			259		156		-		415
Total investments in marketable securities				$	4,658	$	223	$	(59)	$	4,822

Note 4 – Investments in Marketable Securities (Continued)

The fixed income mutual funds are private placement funds. The total fair value of private placement fixed income mutual funds was $1.7 billion and $1.8 billion at June 30, and March 31, 2011, respectively. For each fund, cash redemption limits may apply to each 90 day period.

OTTI Securities

For the three months ended June 30, 2011 and 2010, there were no available-for-sale (“AFS”) debt or equity securities deemed to be other-than-temporarily impaired, and therefore, all unrealized losses on AFS debt and equity securities were recognized in Accumulated Other Comprehensive Income.

Unrealized Losses on Securities

The following tables present the aging of fair value and gross unrealized losses for AFS securities:

				June 30, 2011
			Less than 12 months				12 months or more				Total
			Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in millions)			value		losses		value		losses		value		losses
Available-for-sale securities:
Debt instruments:
	U.S. government and agency obligations		$	45	$	(1)	$	-	$	-	$	45	$	(1)
	U.S. government agency mortgage-
		backed securities		38		(1)		-		-		38		(1)
Equity instruments:
	U.S. government sector fund			546		(38)		-		-		546		(38)
	Mortgage sector fund			433		(9)		-		-		433		(9)
	International sector fund			111		(2)		-		-		111		(2)
Total investments in marketable
	securities		$	1,173	$	(51)	$	-	$	-	$	1,173	$	(51)

Note 4 – Investments in Marketable Securities (Continued)

		March 31, 2011
		Less than 12 months				12 months or more						Total
		Fair		Unrealized		Fair		Unrealized			Fair		Unrealized
(Dollars in millions)		value		losses		value		losses			value		losses
Available-for-sale securities:
Debt instruments:
	U.S. government and agency
	obligations	$	55	$	(2)	$	-		$	-	$	55		$	(2)
	U.S. government agency mortgage-
	backed securities		38		(1)		-			-		38			(1)
Equity instruments:
	U.S. government sector fund		478		(48)		-			-		478			(48)
	Real return sector fund		76		(1)		-			-		76			(1)
	Mortgage sector fund		639		(5)		-			-		639			(5)
	International sector fund		109		(2)		-			-		109			(2)
Total investments in marketable
	securities	$	1,395	$	(59)	$	-		$	-	$	1,395		$	(59)

At June 30, 2011 and March 31, 2011, we did not own any investments that have been in a continuous unrealized loss position for 12 consecutive months or more.

Note 4 – Investments in Marketable Securities (Continued)

Contractual Maturities and Yields

The contractual maturities of investments in marketable securities at June 30, 2011 are summarized in the following table. Prepayments may cause actual maturities to differ from scheduled maturities.

		Due in 1 Year or				Due after 1 Year				Due after 5 Years
			Less			through 5 Years				through 10 Years				Due after 10 Years					Total
(Dollars in millions)		Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield
Fair Value of Available-
for-Sales Securities:
Debt instruments:
U.S. government and
	agency obligations	$	11	1.22	%	$	8	2.68	%	$	52	2.28	%	$	1	6.62	%	$	72	2.26	%
Municipal debt securities			-	-			-	-			-	-			16	6.09			16	6.09
Certificates of deposit and
	commercial paper		2,665	0.36			-	-			-	-			-	-			2,665	0.36
Foreign government debt
	securities		2	1.87			3	2.93			-	-			-	-			5	2.52
Corporate debt
	securities		8	5.20			72	4.07			54	5.29			6	5.95			140	4.70
Mortgage-backed securities:
	U.S. government agency		-	-			-	-			4	5.04			71	4.38			75	4.41
	Non-agency residential		-	-			-	-			-	-			11	8.06			11	8.06
	Non-agency commercial		-	-			-	-			3	0.25			25	4.59			28	4.46
Asset-backed securities			-	-			10	2.24			3	1.27			9	1.80			22	1.95
Debt instruments total			2,686	0.38			93	3.73			116	3.70			139	4.82			3,034	0.81

Equity instruments:
Fixed income mutual funds																			1,744	3.20
Equity mutual funds																			416	2.95
Equity instruments total			-				-				-				-				2,160	3.15

Total fair value		$	2,686	0.38	%	$	93	3.73	%	$	116	3.70	%	$	139	4.82	%	$	5,194	1.79	%
Total amortized cost		$	2,685			$	90			$	114			$	135			$	5,017

Yields are based on the amortized cost balances of securities held at June 30, 2011. Yields are derived by aggregating the monthly result of interest and dividend income (including the effect of related amortization of premiums and accretion of discounts) divided by amortized cost. The total amortized cost includes amortized cost on equity securities that do not have a maturity date.

Securities on Deposit

In accordance with statutory requirements, we had on deposit with state insurance authorities U.S. debt securities with amortized cost and fair value of $6 million at both June 30, 2011 and March 31, 2011.

- Definition

This item represents the entire disclosure related to Available-for-sale Securities which consist of all investments in certain debt and equity securities neither classified as trading or held-to-maturity securities. A debt security represents a creditor relationship with an enterprise. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities which are categorized as Available-for-sale.

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