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Marketable Securities | 6 Months Ended
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Jun. 30, 2012
Marketable Securities [Abstract] |
Marketable Securities | Marketable Securities We measure the fair value of our marketable securities using a market approach where identical or comparable prices are available and an income approach in other cases. We obtain the majority of the prices used in this valuation from a pricing service. Our pricing service utilizes industry-standard pricing models that consider various inputs, including benchmark yields, reported trades, broker/dealer quotes, issuer spreads and benchmark securities as well as other relevant economic measures. We conduct an annual review of valuations provided by our pricing service, which includes discussion and analysis of the inputs used by the pricing service to provide prices for the types of securities we hold. These inputs include prices for comparable securities, bid/ask quotes, interest rate yields and prepayment spreads. Based on our review we believe the prices received from our pricing service are a reliable representation of exit prices. At June 30, 2012 the carrying amount of our investment in Peugeot S.A. (PSA) exceeded its fair value. The share prices for comparable European automotive companies are currently experiencing significant volatility stemming, in part, from the eurozone debt crisis and its effect on automotive sales within the eurozone, as well as the uncertainty around future sales. We assessed whether the decline in value represented an other-than-temporary impairment and concluded that the impairment is temporary. We believe that the recent economic uncertainty is weighing heavily on the valuation of PSA. Should market conditions not recover in the near-term, we may conclude the impairment is other-than-temporary, resulting in an impairment charge. We currently have the ability and intent to hold the investment until its fair value recovers. The following tables summarize information regarding marketable securities (dollars in millions):
| June 30, 2012
|  |  | Unrealized |  | Fair Value |  | Fair Value Measurements on a Recurring Basis
| Cost |  | Gains |  | Losses |  |  | Level 1 |  | Level 2 |  | Level 3
Cash and cash equivalents |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale securities |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government and agencies | $ | 8,042 |  |  | $ | — |  |  | $ | — |  |  | $ | 8,042 |  |  | $ | — |  |  | $ | 8,042 |  |  | $ | — |
Sovereign debt | 441 |  |  | — |  |  | — |  |  | 441 |  |  | — |  |  | 441 |  |  | — |
Certificates of deposit | 350 |  |  | — |  |  | — |  |  | 350 |  |  | — |  |  | 350 |  |  | — |
Money market funds | 1,309 |  |  | — |  |  | — |  |  | 1,309 |  |  | 1,309 |  |  | — |  |  | — |
Corporate debt | 4,794 |  |  | — |  |  | — |  |  | 4,794 |  |  | — |  |  | 4,794 |  |  | — |
Total marketable securities classified as cash equivalents | $ | 14,936 |  |  | $ | — |  |  | $ | — |  |  | 14,936 |  |  | $ | 1,309 |  |  | $ | 13,627 |  |  | $ | — |
Cash, time deposits, and other cash equivalents |  |  |  |  |  |  | 7,248 |  |  |  |  |  |  |
Total cash and cash equivalents |  |  |  |  |  |  | $ | 22,184 |  |  |  |  |  |  |
Marketable securities - current |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale securities |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government and agencies | $ | 1,370 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,370 |  |  | $ | — |  |  | $ | 1,370 |  |  | $ | — |
Sovereign debt | 67 |  |  | — |  |  | — |  |  | 67 |  |  | — |  |  | 67 |  |  | — |
Certificates of deposit | 40 |  |  | — |  |  | — |  |  | 40 |  |  | — |  |  | 40 |  |  | — |
Corporate debt | 3,479 |  |  | 4 |  |  | 2 |  |  | 3,481 |  |  | — |  |  | 3,481 |  |  | — |
Total available-for-sale securities | $ | 4,956 |  |  | $ | 4 |  |  | $ | 2 |  |  | 4,958 |  |  | — |  |  | 4,958 |  |  | — |
Trading securities(a) |  |  |  |  |  |  |  |  |  |  |  |  |
Sovereign debt |  |  |  |  |  |  | 6,423 |  |  | — |  |  | 6,423 |  |  | — |
Total trading securities |  |  |  |  |  |  | 6,423 |  |  | — |  |  | 6,423 |  |  | — |
Total marketable securities - current |  |  |  |  |  |  | 11,381 |  |  | — |  |  | 11,381 |  |  | — |
Marketable securities - non-current |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale securities |  |  |  |  |  |  |  |  |  |  |  |  |
Equity(b) | $ | 404 |  |  | $ | — |  |  | $ | 160 |  |  | 244 |  |  | 244 |  |  | — |  |  | — |
Total marketable securities - non-current | $ | 404 |  |  | $ | — |  |  | $ | 160 |  |  | 244 |  |  | 244 |  |  | — |  |  | — |
Total marketable securities |  |  |  |  |  |  | $ | 11,625 |  |  | $ | 244 |  |  | $ | 11,381 |  |  | $ | — |
Restricted cash and marketable securities |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale securities |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds | $ | 1,027 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,027 |  |  | $ | 1,027 |  |  | $ | — |  |  | $ | — |
Sovereign debt | 20 |  |  | — |  |  | — |  |  | 20 |  |  | — |  |  | 20 |  |  | — |
Other | 169 |  |  | — |  |  | — |  |  | 169 |  |  | — |  |  | 169 |  |  | — |
Total marketable securities classified as restricted cash and marketable securities | $ | 1,216 |  |  | $ | — |  |  | $ | — |  |  | 1,216 |  |  | $ | 1,027 |  |  | $ | 189 |  |  | $ | — |
Restricted cash, time deposits, and other restricted cash equivalents |  |  |  |  |  |  | 564 |  |  |  |  |  |  |
Total restricted cash and marketable securities |  |  |  |  |  |  | $ | 1,780 |  |  |  |  |  |  |
________
(a) | Net unrealized losses on trading securities were $111 million and $61 million in the three and six months ended June 30, 2012. Net unrealized gains (losses) were insignificant in the three and six months ended June 30, 2011. Unrealized gains (losses) are primarily related to remeasurement of Canadian Dollar (CAD) denominated securities.
(b) | Represents our seven percent ownership in PSA acquired in connection with our agreement with PSA to create a long-term and strategic alliance. The investment is recorded in Other assets and deferred income taxes.
| December 31, 2011
|  |  | Unrealized |  | Fair Value |  | Fair Value Measurements on a Recurring Basis
| Cost |  | Gains |  | Losses |  |  | Level 1 |  | Level 2 |  | Level 3
Cash and cash equivalents |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale securities |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government and agencies | $ | 239 |  |  | $ | — |  |  | $ | — |  |  | $ | 239 |  |  | $ | — |  |  | $ | 239 |  |  | $ | — |
Sovereign debt | 490 |  |  | — |  |  | — |  |  | 490 |  |  | — |  |  | 490 |  |  | — |
Certificates of deposit | 2,028 |  |  | — |  |  | — |  |  | 2,028 |  |  | — |  |  | 2,028 |  |  | — |
Money market funds | 1,794 |  |  | — |  |  | — |  |  | 1,794 |  |  | 1,794 |  |  | — |  |  | — |
Corporate debt | 5,112 |  |  | — |  |  | — |  |  | 5,112 |  |  | — |  |  | 5,112 |  |  | — |
Total available-for-sale securities | $ | 9,663 |  |  | $ | — |  |  | $ | — |  |  | 9,663 |  |  | 1,794 |  |  | 7,869 |  |  | — |
Trading securities |  |  |  |  |  |  |  |  |  |  |  |  |
Sovereign debt |  |  |  |  |  |  | 497 |  |  | — |  |  | 497 |  |  | — |
Total trading securities |  |  |  |  |  |  | 497 |  |  | — |  |  | 497 |  |  | — |
Total marketable securities classified as cash equivalents |  |  |  |  |  |  | 10,160 |  |  | $ | 1,794 |  |  | $ | 8,366 |  |  | $ | — |
Cash, time deposits, and other cash equivalents |  |  |  |  |  |  | 5,911 |  |  |  |  |  |  |
Total cash and cash equivalents |  |  |  |  |  |  | $ | 16,071 |  |  |  |  |  |  |
Marketable securities - current |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale securities |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government and agencies | $ | 5,214 |  |  | $ | 2 |  |  | $ | — |  |  | $ | 5,216 |  |  | $ | — |  |  | $ | 5,216 |  |  | $ | — |
Sovereign debt | 143 |  |  | — |  |  | — |  |  | 143 |  |  | — |  |  | 143 |  |  | — |
Certificates of deposit | 178 |  |  | — |  |  | — |  |  | 178 |  |  | — |  |  | 178 |  |  | — |
Corporate debt | 4,566 |  |  | 3 |  |  | 4 |  |  | 4,565 |  |  | — |  |  | 4,565 |  |  | — |
Total available-for-sale securities | $ | 10,101 |  |  | $ | 5 |  |  | $ | 4 |  |  | 10,102 |  |  | — |  |  | 10,102 |  |  | — |
Trading securities |  |  |  |  |  |  |  |  |  |  |  |  |
Equity |  |  |  |  |  |  | 34 |  |  | 34 |  |  | — |  |  | — |
Sovereign debt |  |  |  |  |  |  | 5,936 |  |  | — |  |  | 5,936 |  |  | — |
Other debt |  |  |  |  |  |  | 76 |  |  | — |  |  | 76 |  |  | — |
Total trading securities |  |  |  |  |  |  | 6,046 |  |  | 34 |  |  | 6,012 |  |  | — |
Total marketable securities - current |  |  |  |  |  |  | $ | 16,148 |  |  | $ | 34 |  |  | $ | 16,114 |  |  | $ | — |
Restricted cash and marketable securities |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale securities |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds | $ | 1,363 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,363 |  |  | $ | 1,363 |  |  | $ | — |  |  | $ | — |
Sovereign debt | 15 |  |  | — |  |  | — |  |  | 15 |  |  | — |  |  | 15 |  |  | — |
Other | 161 |  |  | 3 |  |  | — |  |  | 164 |  |  | — |  |  | 164 |  |  | — |
Total marketable securities classified as restricted cash and marketable securities | $ | 1,539 |  |  | $ | 3 |  |  | $ | — |  |  | 1,542 |  |  | $ | 1,363 |  |  | $ | 179 |  |  | $ | — |
Restricted cash, time deposits, and other restricted cash equivalents |  |  |  |  |  |  | 691 |  |  |  |  |  |  |
Total restricted cash and marketable securities |  |  |  |  |  |  | $ | 2,233 |  |  |  |  |  |  |
| June 30, 2012 |  | December 31, 2011
Classification of Restricted cash and marketable securities |  |  |
Current | $ | 734 |  |  | $ | 1,005 |
Non-current | 1,046 |  |  | 1,228 |
Total restricted cash and marketable securities | $ | 1,780 |  |  | $ | 2,233 |
We maintained securities of $84 million as compensating balances to support letters of credit of $70 million at June 30, 2012 and December 31, 2011. We have access to these securities in the normal course of business; however, the letters of credit may be withdrawn if the minimum collateral balance is not maintained. Sales proceeds from investments in marketable securities classified as available-for-sale and sold prior to maturity were $551 million and $132 million in the three months ended June 30, 2012 and 2011 and $978 million and $249 million in the six months ended June 30, 2012 and 2011. The following table summarizes the amortized cost and the fair value of investments classified as available-for-sale within cash equivalents, marketable securities and restricted cash by contractual maturity at June 30, 2012 (dollars in millions):
| Amortized Cost |  | Fair Value
Due in one year or less | $ | 17,136 |  |  | $ | 17,136 |
Due after one year through five years | 1,479 |  |  | 1,482 |
Total contractual maturities of available-for-sale securities | $ | 18,615 |  |  | $ | 18,618 |

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- Definition Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03.4) -URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 5 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27232-111563 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6871852&loc=d3e26626-111562 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.2,12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6871852&loc=d3e26610-111562 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563 + Details
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