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Fair Value of Financial Investments and Liabilities
 9 Months Ended
Sep. 30, 2013
Fair Value Disclosures [Abstract]  
Fair Value of Financial Investments and Liabilities
F. The Company has maintained investments in available-for-sale securities and a number of private equity funds, principally as part of its tax planning strategies, as any gains enhance the utilization of any current and future tax capital losses. Financial investments included in other assets were as follows, in millions:

September 30,
2013		 December 31,
2012

Auction rate securities

 $ 22 $ 22

Total recurring investments

 22 22

Private equity funds

 63 69

Other investments

 4 4

Total non-recurring investments

 67 73

Total

 $ 89 $ 95

The Company’s investments in available-for-sale securities at September 30, 2013 and December 31, 2012 were as follows, in millions:

Pre-tax
Cost Basis Unrealized
Gains		 Unrealized
Losses		 Recorded
Basis

September 30, 2013

 $ 19 $ 3 $ — $ 22

December 31, 2012

 $ 19 $ 3 $ — $ 22

Recurring Fair Value Measurements. Financial investments measured at fair value on a recurring basis at each reporting period and the amounts for each level within the fair value hierarchy were as follows, in millions:

Fair Value Measurements Using
Sep. 30,
2013		 Quoted
Market
Prices
(Level 1)		 Significant
Other
Observable
Inputs
(Level 2)		 Significant
Unobservable
Inputs
(Level 3)

Auction rate securities

 $ 22 — — $ 22

Total

 $ 22 $ — $ — $ 22

Fair Value Measurements Using
Dec. 31,
2012		 Quoted
Market
Prices
(Level 1)		 Significant
Other
Observable
Inputs
(Level 2)		 Significant
Unobservable
Inputs
(Level3)

Auction rate securities

 $ 22 $ — $ — $ 22

Total

 $ 22 $ — $ — $ 22

The fair value of the auction rate securities held by the Company have been estimated, on a recurring basis, using a discounted cash flow model (Level 3 input). The significant inputs in the discounted cash flow model used to value the auction rate securities include: expected maturity of auction rate securities, discount rate used to determine the present value of expected cash flows and the assumptions for credit defaults, since the auction rate securities are backed by credit default swap agreements.

The following table summarizes the changes in Level 3 financial assets measured at fair value on a recurring basis for the nine months ended September 30, 2013 and the year ended December 31, 2012, in millions:

Sep. 30, 2013
Auction Rate
Securities		 December 31, 2012
Auction Rate
Securities

Fair value at beginning of period

 $ 22 $ 22

Total losses included in earnings

 — —

Unrealized (losses)

 — —

Purchases

 — —

Settlements

 — —

Transfer from Level 3 to Level 2

 — —

Fair value at period end

 $ 22 $ 22

Non-Recurring Fair Value Measurements. During the three months and nine months ended September 30, 2013, the Company did not measure any financial investments at fair value on a non-recurring basis, as there was no other-than-temporary decline in the estimated value of private equity funds.

During the three months and nine months ended September 30, 2012, the Company measured $4 million of private equity investments using level 3 inputs due to an other-than-temporary decline in the estimated value, resulting in a $2 million impairment.

The Company did not have any transfers between Level 1 and Level 2 financial assets in the three months or nine months ended September 30, 2013 or 2012.

Realized Gains (Losses). Income (loss) from financial investments, net, included in other, net, within other income (expense), net, was as follows, in millions:

Three Months Ended
September 30,		 Nine Months Ended
September 30,
2013 2012 2013 2012

Realized gains from private equity funds

 $ — $ 2 $ 7 $ 20

Income from other investments, net

 — — 1 —

Total income from financial investments

 $ — $ 2 $ 8 $ 20

Impairment charges — private equity funds

 $ — $ — $ — $ (2 )

The fair value of the Company’s short-term and long-term fixed-rate debt instruments is based principally upon modeled market prices for the same or similar issues or the current rates available to the Company for debt with similar terms and remaining maturities. The aggregate estimated market value of short-term and long-term debt at September 30, 2013 was approximately $3.7 billion, compared with the aggregate carrying value of $3.4 billion. The aggregate estimated market value of short-term and long-term debt at December 31, 2012 was approximately $4.0 billion, compared with the aggregate carrying value of $3.6 billion.