Annual report pursuant to Section 13 and 15(d)

MARKETABLE SECURITIES

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MARKETABLE SECURITIES
 12 Months Ended
Dec. 31, 2012
MARKETABLE SECURITIES  
MARKETABLE SECURITIES

NOTE 5. MARKETABLE SECURITIES

        A summary of marketable securities, all of which are classified as current, was as follows:

 
   December 31,  
 
   2012   2011  
In millions
   Cost   Gross unrealized
gains/(losses)		   Estimated
Fair Value		   Cost   Gross unrealized
gains/(losses)		   Estimated
Fair Value		  

Available-for-sale

                                      

Debt mutual funds

   $ 139   $ 3   $ 142   $ 115   $ 2   $ 117  

Bank debentures

     45     —     45     82     —     82  

Certificates of deposit

     47     —     47     66     —     66  

Government debt securities-non-U.S. 

     3     —     3     3     —     3  

Corporate debt securities

     1     —     1     2     —     2  

Equity securities and other

     —     9     9     —     7     7  
                           

Total marketable securities

   $ 235   $ 12   $ 247   $ 268   $ 9   $ 277  
                           

        Proceeds from sales and maturities of marketable securities were $585 million, $750 million and $690 million in 2012, 2011 and 2010, respectively. Gross realized gains from the sale of available-for-sale (AFS) securities were $3 million for the year ended 2012, $3 million for the year ended 2011 and less than $1 million for the year ended 2010. Gross realized losses from the sale of AFS securities were less than $1 million for the years ended December 31, 2012, 2011 and 2010.

        At December 31, 2012, the fair value of AFS investments in debt securities by contractual maturity was as follows:

Maturity date
  Fair value  
In millions
    
  

1 year or less

   $ 46  

1 - 5 years

     2  

5 - 10 years

     1  
       

Total

   $ 49