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Investments In Marketable Securities | 12 Months Ended
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Dec. 31, 2011
INVESTMENTS IN MARKETABLE SECURITIES | 5. INVESTMENTS IN MARKETABLE SECURITIES The following table sets forth the Company's investments in marketable debt and equity securities classified as trading and available-for-sale as of December 31, 2011 and 2010 by type of investment and by level within the fair value hierarchy. The security types are determined based on the nature and risk of the security and are consistent with how the Company manages, monitors and measures its securities.
|  |  | December 31,
|  |  | 2011 |  | 2010
|  |  | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  |  | Total
|  |  | (in millions)
AVAILABLE-FOR-SALE:(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Unsecured debentures(2) |  | $ | - |  | $ | 665 |  | $ | - |  | $ | 665 |  | $ | - |  | $ | 719 |  | $ | - |  | $ | 719
| Certificates of deposit(2) |  |  | - |  |  | 576 |  |  | - |  |  | 576 |  |  | - |  |  | 873 |  |  | - |  |  | 873
| Government debt securities |  |  | - |  |  | 31 |  |  | - |  |  | 31 |  |  | - |  |  | 47 |  |  | - |  |  | 47
| Other |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 42 |  |  | 42
| Subtotal |  |  | - |  |  | 1,272 |  |  | - |  |  | 1,272 |  |  | - |  |  | 1,639 |  |  | 42 |  |  | 1,681
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Mutual funds |  |  | - |  |  | 67 |  |  | - |  |  | 67 |  |  | 1 |  |  | 61 |  |  | - |  |  | 62
| Common stock |  |  | 1 |  |  | - |  |  | - |  |  | 1 |  |  | 7 |  |  | - |  |  | - |  |  | 7
| Subtotal |  |  | 1 |  |  | 67 |  |  | - |  |  | 68 |  |  | 8 |  |  | 61 |  |  | - |  |  | 69
Total available-for-sale |  |  | 1 |  |  | 1,339 |  |  | - |  |  | 1,340 |  |  | 8 |  |  | 1,700 |  |  | 42 |  |  | 1,750
TRADING: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Mutual funds |  |  | 12 |  |  | - |  |  | - |  |  | 12 |  |  | 10 |  |  | - |  |  | - |  |  | 10
Total trading |  |  | 12 |  |  | - |  |  | - |  |  | 12 |  |  | 10 |  |  | - |  |  | - |  |  | 10
TOTAL |  | $ | 13 |  | $ | 1,339 |  | $ | - |  | $ | 1,352 |  | $ | 18 |  | $ | 1,700 |  | $ | 42 |  | $ | 1,760
Held-to-maturity securities |  |  |  |  |  |  |  |  |  |  |  | 4 |  |  |  |  |  |  |  |  |  |  |  | -
Total marketable securities |  |  |  |  |  |  |  |  |  |  | $ | 1,356 |  |  |  |  |  |  |  |  |  |  | $ | 1,760
(1) A mortized cost approximated fair value at December 31, 2011 and 2010, with the exception of certain common stock investments with a cost basis of $4 million and $6 million carried at their fair value of $1 million and $7 million at December 31, 2011 and 2010, respectively. In 2011, the Company recognized an other than temporary impairment of $3 million in net income on these investments. (2) Unsecured debentures are instruments similar to certificates of deposit that are held primarily by our subsidiaries in Brazil. The unsecured debentures and certificates of deposit included here do not qualify as cash equivalents and meet the definition of a security under the relevant guidance and are therefore classified as available-for-sale securities. As of December 31, 2011, all available-for-sale debt securities had st ated maturities less than one year. As of December 31, 2010, all available-for-sale debt securities had stated maturities less than one year with the exception of $42 million of securities, primarily variable rate demand notes, held by IPL, a subsidiary of the Company in Indiana. These securities, classified as other debt securities in the table above, had stated maturities of greater than ten years, and were called at par during 2011. The following table summarizes the pre-tax gains and losses related to available-for-sale securities for the years ended December 31, 2011, 2010 and 2009. As noted above, the Company recognized an other than temporary impairment of $3 million in 2011. There was no other-than-temporary impairment of marketable securities recognized in earnings or other comprehensive income for the years ended December 31, 2010 or 2009.
|  |  | 2011 |  | 2010 |  | 2009
|  |  | (in millions)
Gains included in earnings that relate to trading securities held at |  |  |  |  |  |  |  |  |
| the reporting date |  | $ | 1 |  | $ | - |  | $ | 1
Unrealized gains (losses) on available-for-sale securities included in |  |  |  |  |  |  |  |  |
| other comprehensive income |  |  | 2 |  |  | 2 |  |  | 10
Gains reclassified out of other comprehensive income into earnings |  |  | - |  |  | - |  |  | 2
Proceeds from sales of available-for-sale securities |  |  | 6,119 |  |  | 5,852 |  |  | 4,440
Gross realized gains on sales |  |  | 3 |  |  | 2 |  |  | 3

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- Definition Tabular disclosure of investments in certain debt and equity securities (and certain other trading assets) which include all debt and equity securities (other than those equity securities accounted for under the equity or cost methods of accounting) with readily determinable fair values. Other trading assets include assets that are carried on the balance sheet at fair value and held for trading purposes. A debt security represents a creditor relationship with an enterprise that is in the form of a security. 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 (and other trading assets). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27405-111563 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Equity Security -URI http://asc.fasb.org/extlink&oid=6511694 -Topic 320 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Debt Security -URI http://asc.fasb.org/extlink&oid=6509901 -Topic 320 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 3, 19, 20, 21, 22, 137 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27232-111563 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563 + Details
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