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Fair Value Measurements
 3 Months Ended
Mar. 31, 2013
Fair Value Disclosures [Abstract]  
Fair Value Measurements
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 when changes in circumstances require such transfers.
Investment
The following table summarizes the valuation of the Investment Funds' investments and derivative contracts by the above fair value hierarchy levels as of March 31, 2013 and December 31, 2012: 
 
March 31, 2013
 
December 31, 2012
  
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets
(in millions)
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Basic materials
$
53

 
$
9

 
$
—

 
$
62

 
$
144

 
$
9

 
$
—

 
$
153

      Communications
1,036

 
14

 
—

 
1,050

 
560

 
16

 
—

 
576

      Consumer, non-cyclical
1,894

 
—

 
—

 
1,894

 
1,340

 
—

 
—

 
1,340

      Consumer, cyclical
337

 
—

 
—

 
337

 
261

 
—

 
—

 
261

      Diversified
28

 
—

 
—

 
28

 
—

 
—

 
—

 
—

      Energy
1,921

 
19

 
—

 
1,940

 
1,052

 
55

 
—

 
1,107

      Financial
234

 
—

 
—

 
234

 
244

 
—

 
—

 
244

      Funds
—

 
—

 
—

 
—

 
—

 
308

 
—

 
308

      Technology
641

 
525

 
—

 
1,166

 
325

 
—

 
—

 
325

      Utilities
2

 
—

 
—

 
2

 
208

 
—

 
—

 
208

 
6,146

 
567

 
—

 
6,713

 
4,134

 
388

 
—

 
4,522

   Corporate debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Consumer, cyclical
—

 
—

 
290

 
290

 
—

 
—

 
288

 
288

      Financial
—

 
15

 
—

 
15

 
—

 
50

 
—

 
50

      Sovereign debt
—

 
3

 
—

 
3

 
—

 
5

 
—

 
5

      Utilities
—

 
30

 
—

 
30

 
—

 
31

 
—

 
31

 
—

 
48

 
290

 
338

 
—

 
86

 
288

 
374

   Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Financial
—

 
175

 
—

 
175

 
—

 
188

 
—

 
188

 
6,146

 
790

 
290

 
7,226

 
4,134

 
662

 
288

 
5,084

Derivative contracts, at fair value(1)
—

 
1

 
—

 
1

 
—

 
—

 
—

 
—

 
$
6,146

 
$
791

 
$
290

 
$
7,227

 
$
4,134

 
$
662

 
$
288

 
$
5,084

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities sold, not yet purchased, at fair value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Consumer, cyclical
$
620

 
$
—

 
$
—

 
$
620

 
$
473

 
$
—

 
$
—

 
$
473

      Funds
—

 
—

 
—

 
—

 
—

 
60

 
—

 
60

 
620

 
—

 
—

 
620

 
473

 
60

 
—

 
533

Derivative contracts, at fair value(2)
—

 
478

 
—

 
478

 
—

 
84

 
—

 
84

 
$
620

 
$
478

 
$
—

 
$
1,098

 
$
473

 
$
144

 
$
—

 
$
617


(1) 
Included in other assets in our consolidated balance sheets.
(2) 
Included in accrued expenses and other liabilities in our consolidated balance sheets.
The changes in investments measured at fair value for which our Investment segment has used Level 3 input to determine fair value are as follows:
 
Three Months Ended March 31,
  
2013
 
2012
 
(in millions)
Balance at January 1
$
288


$
289

Gross realized and unrealized gains (losses)
4

 
(13
)
Gross proceeds
(2
)
 
(3
)
Balance at March 31
$
290


$
273


Unrealized gains of $4 million are included in earnings related to Level 3 investments still held at March 31, 2013. Total realized and unrealized gains and losses recorded for Level 3 investments, if any, are reported in net gain from investment activities in our consolidated statements of operations.
The Investment Funds held one Level 3 corporate debt investment at March 31, 2013.  Fair value was determined through yield analysis of comparable loans to which we applied a risk premium that we determined to be appropriate, which resulted in a lower valuation for our Level 3 investment.  Adjusting the risk premium by 1% in either direction would result in a 2% change in the fair value of the loan.
Other Segments and Holding Company
The following table summarizes the valuation of our Automotive and Energy segments and our Holding Company investments, derivative contracts and other liabilities by the above fair value hierarchy levels as of March 31, 2013 and December 31, 2012:
 
March 31, 2013
 
December 31, 2012
  
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets
(in millions)
Marketable equity and debt securities
$
1

 
$
—

 
$
—

 
$
1

 
$
1

 
$
—

 
$
—

 
$
1

Trading securities
—

 
—

 
125

 
125

 
—

 
—

 
60

 
60

Derivative contracts, at fair value(1)
—

 
1

 
—

 
1

 
—

 
1

 
21

 
22

 
$
1

 
$
1

 
$
125


$
127

 
$
1

 
$
1

 
$
81

 
$
83

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other liabilities
$
—

 
$
32

 
$
—

 
$
32

 
$
—

 
$
1

 
$
—

 
$
1

Derivative contracts, at fair value(2)
—

 
45

 
—

 
45

 
—

 
89

 
—

 
89

 
$
—

 
$
77

 
$
—

 
$
77

 
$
—

 
$
90

 
$
—

 
$
90


(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.

The changes in trading securities measured at fair value for which our Holding Company have used Level 3 input to determine fair value are as follows:
 
Three Months Ended March 31,
 
2013
 
2012
 
(in millions)
Balance at January 1
$
81

 
$
—

Purchase
46

 
—

Gross unrealized losses
(2
)
 
—

Balance at March 31
$
125

 
$
—