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72
NOTE 8. Marketable Securities
The Company invests in agency securities, corporate securities, asset-backed securities and other securities. The
following is a summary of amounts recorded on the Consolidated Balance Sheet for marketable securities (current and
non-current).
December 31,
December 31,
(Millions)
2014
2013
U.S. government agency securities
$
67
$
103
Foreign government agency securities
75
30
Corporate debt securities
241
143
Commercial paper
―
60
Certificates of deposit/time deposits
41
20
U.S. municipal securities
―
2
Asset-backed securities:
Automobile loan related
122
287
Credit card related
59
52
Equipment lease related
21
30
Other
―
29
Asset-backed securities total
202
398
Current marketable securities
$
626
$
756
U.S. government agency securities
$
41
$
131
Foreign government agency securities
20
95
Corporate debt securities
378
638
Certificates of deposit/time deposits
―
20
U.S. treasury securities
38
49
U.S. municipal securities
15
―
Auction rate securities
―
11
Asset-backed securities:
Automobile loan related
160
298
Credit card related
103
128
Equipment lease related
27
37
Other
46
46
Asset-backed securities total
336
509
Non
-
current marketable securities
$
828
$
1,453
Total marke
table securities
$
1,454
$
2,209
Classification of marketable securities as current or non-current is dependent upon management’s intended holding
period, the security’s maturity date and liquidity considerations based on market conditions. If management intends to
hold the securities for longer than one year as of the balance sheet date, they are classified as non-current. At December
31, 2014, gross unrealized losses totaled approximately $1 million (pre-tax), while gross unrealized gains totaled
approximately $1 million (pre-tax). At December 31, 2013, gross unrealized losses totaled approximately $5 million (pre-
tax), while gross unrealized gains totaled approximately $1 million (pre-tax). Refer to Note 5 for a table that provides the
net realized gains (losses) related to sales or impairments of debt and equity securities, which includes marketable
securities. The gross amounts of the realized gains or losses were not material. Cost of securities sold use the first in, first
out (FIFO) method. Since these marketable securities are classified as available-for-sale securities, changes in fair value
will flow through other comprehensive income, with amounts reclassified out of other comprehensive income into earnings
upon sale or “other-than-temporary” impairment.