Investments in Marketable Securities (Disclosure)

9 Months Ended

Dec. 31, 2011

Investments In Marketable Securities Disclosure [Abstract]

Marketable Securities Disclosure Text Block

Note 4 – Investments in Marketable Securities

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

				December 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		$	75	$	2	$	-	$	77
		Municipal debt securities			17		2		-		19
		Certificates of deposit and commercial paper			2,681		-		(1)		2,680
		Foreign government debt securities			3		-		-		3
		Corporate debt securities			126		6		(1)		131
		Mortgage-backed securities:
			U.S. government agency		105		5		-		110
			Non-agency residential		9		-		-		9
			Non-agency commercial		25		1		-		26
		Asset-backed securities			16		-		-		16
	Equity instruments:
		Fixed income mutual funds:
			Short-term sector fund		39		-		(1)		38
			U.S. government sector fund		248		-		(7)		241
			Municipal sector fund		18		2		-		20
			Investment grade corporate sector fund		260		21		-		281
			High-yield sector fund		30		4		-		34
			Real return sector fund		229		2		-		231
			Mortgage sector fund		649		-		(16)		633
			Asset-backed securities sector fund		37		3		-		40
			Emerging market sector fund		60		1		(3)		58
			International sector fund		142		20		-		162
		Equity mutual fund			266		135		-		401
Total investments in marketable securities				$	5,035	$	204	$	(29)	$	5,210

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			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 include investments in funds that are privately placed. The total fair value of our investments in such funds was $1.7 billion and $1.8 billion at December 31, 2011 and March 31, 2011. For each fund, cash redemption limits may apply to each 90 day period.

OTTI Securities

For the three and nine months ended December 31, 2011, unrealized losses for AFS debt securities deemed to be other-than-temporarily impaired were recognized in investment and other income, net and were not material to our Consolidated Statement of Income. For the three and nine months ended December 31, 2010 there were no AFS debt or equity securities deemed to be other-than-temporarily impaired.

Unrealized Losses on Securities

The following table presents the fair value and gross unrealized losses of investments in marketable securities that had been in a continuous unrealized loss position for less than twelve consecutive months. These unrealized losses are recorded in Accumulated Other Comprehensive Income:

			Less than 12 months as of
			December 31, 2011				March 31, 2011
			Fair		Unrealized		Fair		Unrealized
(Dollars in millions)			value		losses		value		losses
Available-for-sale securities:
Debt instruments:
	Corporate debt securities		$	34	$	(1)	$	-	$	-
	Certificates of deposits &			1,517		(1)		-		-
		commercial paper
	U.S. government and agency
		obligations		-		-		55		(2)
	U.S. government agency mortgage-
		backed securities		-		-		38		(1)
Equity instruments:
	U.S. government sector fund			166		(2)		478		(48)
	Short-term sector fund			31		(1)		-		-
	Real return sector fund			-		-		76		(1)
	Mortgage sector fund			633		(16)		639		(5)
	Emerging market sector fund			47		(3)		-		-
	International sector fund			-		-		109		(2)
Total investments in marketable
	securities		$	2,428	$	(24)	$	1,395	$	(59)

At December 31, 2011 and March 31, 2011, total gross unrealized loss and fair value of investments that had been in a continuous unrealized loss position for 12 consecutive months or more were not material to our Consolidated Balance Sheet.

Note 4 – Investments in Marketable Securities (Continued)

Contractual Maturities and Yields

The contractual maturities of investments in marketable securities at December 31, 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-Sale Securities:
Debt instruments:
U.S. government and
	agency obligations	$	8	1.43	%	$	-	-	%	$	68	2.09	%	$	1	6.59	%	$	77	2.11	%
Municipal debt securities			-	-			-	-			-	-			19	6.06			19	6.06
Certificates of deposit and
	commercial paper		2,680	0.07			-	-			-	-			-	-			2,680	0.07
Foreign government debt
	securities		-	-			3	2.93			-	-			-	-			3	2.93
Corporate debt
	securities		8	5.02			62	4.33			51	5.37			10	6.02			131	4.87
Mortgage-backed securities:
	U.S. government agency		-	-			-	-			5	4.81			105	4.06			110	4.09
	Non-agency residential		-	-			-	-			-	-			9	7.40			9	7.40
	Non-agency commercial		-	-			3	1.76			1	5.40			22	4.28			26	4.20
Asset-backed securities			-	-			7	2.36			3	0.99			6	1.09			16	1.71
Debt instruments total			2,696	0.09			75	4.01			128	3.51			172	4.50			3,071	0.58

Equity instruments:
Fixed income mutual funds																			1,738	6.09
Equity mutual fund																			401	3.21
Equity instruments total			-				-				-				-				2,139	5.55
Total fair value		$	2,696	0.09	%	$	75	4.01	%	$	128	3.51	%	$	172	4.50	%	$	5,210	2.62	%
Total amortized cost		$	2,696			$	74			$	123			$	164			$	5,035

Yields are based on the amortized cost balances of securities held at December 31, 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. Equity instruments do not have a stated 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 December 31, 2011 and March 31, 2011.

Realized Gains and Losses on Sales of AFS Securities

Realized gains from the sale of AFS securities were $14 million and $2 million for the first nine months and third quarter of fiscal 2012, compared to gains of $58 million and $11 million for the same periods in fiscal 2011. Realized losses from the sale of AFS securities were $41 million and $6 million for the first nine months and third quarter of fiscal 2012, compared to $18 million and $2 million for the same periods in fiscal 2011.