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Fair Value Measurements
9 Months Ended
Sep. 30, 2011
Fair Value Measurements [Abstract] 
Fair Value Measurements Disclosures [Text Block]
Fair Value Measurements.
U.S. GAAP requires enhanced disclosures about investments and non-recurring non-financial assets and non-financial liabilities that are measured and reported at fair value and has established a hierarchal disclosure framework that prioritizes and ranks the level of market price observability used in measuring investments or non-financial assets and liabilities at fair value. Market price observability is impacted by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.
Investments and non-financial assets and/or liabilities measured and reported at fair value are classified and disclosed in one of the following categories:
Level 1 - Quoted prices are available in active markets for identical investments as of the reporting date. The types of investments included in Level 1 include listed equities and listed derivatives. We do not adjust the quoted price for these investments, even in situations where we hold a large position.
Level 2 - Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. Investments that are generally included in this category include corporate bonds and loans, less liquid and restricted equity securities and certain over-the-counter derivatives. The inputs and assumptions of our Level 2 investments are derived from market observable sources including: reported trades, broker/dealer quotes and other pertinent data.
Level 3 - Pricing inputs are unobservable for the investment and non-financial asset and/or liability and include situations where there is little, if any, market activity for the investment or non-financial asset and/or liability. The inputs into the determination of fair value require significant management judgment or estimation. Fair value is determined using comparable market transactions and other valuation methodologies, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. Significant transfers, if any, between the levels within the fair value hierarchy are recognized at the beginning of the reporting period.
Investment Management
The following table summarizes the valuation of the Investment Funds' investments by the above fair value hierarchy levels as of September 30, 2011 and December 31, 2010: 
 
September 30, 2011
 
December 31, 2010
  
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets
(in millions)
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Communications
$
2,385

 
$
3

 
$
—

 
$
2,388

 
$
1,945

 
$
—

 
$
—

 
$
1,945

      Consumer, non-cyclical
2,494

 
10

 
—

 
2,504

 
2,227

 
7

 
—

 
2,234

      Consumer, cyclical(1)
283

 
287

 
—

 
570

 
295

 
318

 
1

 
614

      Energy
923

 
—

 
—

 
923

 
541

 
317

 
—

 
858

      Financial
203

 
—

 
—

 
203

 
137

 
—

 
—

 
137

      Index
—

 
29

 
—

 
29

 
—

 
—

 
—

 
—

      Industrial
88

 
37

 
—

 
125

 
114

 
1

 
—

 
115

      Technology
235

 
—

 
—

 
235

 
405

 
—

 
—

 
405

      Utilities
110

 
41

 
—

 
151

 
100

 
43

 
—

 
143

 
6,721

 
407

 
—

 
7,128

 
5,764

 
686

 
1

 
6,451

   Corporate debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Communications
—

 
48

 
—

 
48

 
—

 
—

 
—

 
—

      Consumer, cyclical
—

 
147

 
284

 
431

 
—

 
157

 
328

 
485

      Utilities
—

 
33

 
—

 
33

 
—

 
—

 
—

 
—

      Financial
—

 
4

 
—

 
4

 
—

 
5

 
—

 
5

 
—

 
232

 
284

 
516

 
—

 
162

 
328

 
490

   Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Financial
—

 
183

 
—

 
183

 
—

 
206

 
—

 
206

 
6,721

 
822

 
284

 
7,827

 
5,764

 
1,054

 
329

 
7,147

Derivative contracts, at fair value(2):
—

 
2

 
—

 
2

 
—

 
6

 
—

 
6

 
$
6,721

 
$
824

 
$
284

 
$
7,829

 
$
5,764

 
$
1,060

 
$
329

 
$
7,153

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities sold, not yet purchased, at fair value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Consumer, non-cyclical
$
1

 
$
—

 
$
—

 
$
1

 
$
—

 
$
—

 
$
—

 
$
—

      Consumer, cyclical
135

 
—

 
—

 
135

 
356

 
—

 
—

 
356

      Financial
24

 
—

 
—

 
24

 
58

 
—

 
—

 
58

      Index
—

 
—

 
—

 
—

 
—

 
5

 
—

 
5

      Funds
1,941

 
41

 
—

 
1,982

 
800

 
—

 
—

 
800

 
2,101

 
41

 
—

 
2,142

 
1,214

 
5

 
—

 
1,219

Derivative contracts, at fair value(3):
—

 
3

 
—

 
3

 
—

 
60

 
—

 
60

 
$
2,101

 
$
44

 
$
—

 
$
2,145

 
$
1,214

 
$
65

 
$
—

 
$
1,279


(1) 
We consolidated the financial results of Tropicana effective November 15, 2010. As a result, we eliminated our investment in Tropicana at December 31, 2010. As of April 29, 2011, our Investment Management segment no longer held an investment in Tropicana common stock. See Note 2, "Operating Units-Gaming," for further discussion regarding the history of the Investment Funds' investment in Tropicana.
(2) 
Included in other assets in our consolidated balance sheets.
(3) 
Included in accrued expenses and other liabilities in our consolidated balance sheets.

The changes in investments measured at fair value for which the Investment Management segment has used Level 3 input to determine fair value are as follows:
 
Nine Months Ended September 30,
  
2011
 
2010
 
(in millions)
Balance at January 1
$
329

 
$
228

Gross realized and unrealized gains
2

 
18

Gross proceeds
(47
)
 
(137
)
Gross purchases
—

 
221

Balance at September 30
$
284

 
$
330

Unrealized gains of $2 million are included in earnings related to Level 3 investments still held at September 30, 2011. Total realized and unrealized gains and losses recorded for Level 3 investments, if any, are reported in net gain (loss) from investment activities in our consolidated statements of operations.
Other Segments
The following table summarizes the valuation of our Automotive and Metals segments and Holding Company investments by the above fair value hierarchy levels as of September 30, 2011 and December 31, 2010: 
 
September 30, 2011
 
December 31, 2010
  
Level 1
 
Level 2
 
Total
 
Level 1
 
Level 2
 
Total
Assets
(in millions)
Marketable equity and debt securities
$
14

 
$
—

 
$
14

 
$
19

 
$
—

 
$
19

Investments in precious metals
150

 
—

 
150

 
—

 
—

 
—

Derivative contracts, at fair value(1):
—

 
—

 
—

 
—

 
12

 
12

 
$
164

 
$
—

 
$
164

 
$
19

 
$
12

 
$
31

Liabilities
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts, at fair value(2):
$
—

 
$
100

 
$
100

 
$
—

 
$
94

 
$
94


(1) 
Amounts are classified within other assets in our consolidated balance sheets.
(2) 
Amounts are classified within accrued expenses and other liabilities in our consolidated balance sheets.

Assets and liabilities measured at fair value on a nonrecurring basis at September 30, 2011 are set forth in the table below:
 
 
Level 3
 
 
 
 
Asset
 
Recognized
Category
 
(Liability)
 
Loss
 
 
(in millions)
Property, plant and equipment
 
$
6

 
$
3

Asset retirement obligation
 
(2
)
 
—

Property, plant and equipment with a carrying value of $9 million were written down to their fair value of $6 million, resulting in an impairment charge of $3 million, which was recorded within other income (loss), net for the nine months ended September 30, 2011. We determined the fair value of these assets by applying probability weighted, expected present value techniques to the estimated future cash flows using assumptions a market participant would utilize. The discount rate used is consistent with our reporting units' goodwill fair value measurements.
An asset retirement obligation of $2 million was recorded as of September 30, 2011. The fair value of this liability was determined with the assistance of an outside third-party specialist.