Marketable Securities
The following table summarizes information regarding marketable securities (dollars in millions):
|
| | | | | | | | | | | | | | | | | |
| | | December 31, 2013 | | December 31, 2012 |
| Fair Value Level | | Cost | | Fair Value | | Cost | | Fair Value |
Cash and cash equivalents | | | | | | | | | |
Available-for-sale securities | | | | | | | | | |
U.S. government and agencies | 2 | | $ | 1,437 |
| | $ | 1,437 |
| | $ | 4,190 |
| | $ | 4,190 |
|
Sovereign debt | 2 | | 515 |
| | 515 |
| | — |
| | — |
|
Money market funds | 1 | | 1,262 |
| | 1,262 |
| | 1,799 |
| | 1,799 |
|
Corporate debt | 2 | | 7,598 |
| | 7,598 |
| | 3,222 |
| | 3,222 |
|
Total available-for-sale securities | | | $ | 10,812 |
| | 10,812 |
| | $ | 9,211 |
| | 9,211 |
|
Trading securities | | | | | | | | | |
Sovereign debt | 2 | | | | — |
| | | | 1,408 |
|
Corporate debt | 2 | | | | 25 |
| | | | — |
|
Total trading securities | | | | | 25 |
| | | | 1,408 |
|
Total marketable securities classified as cash equivalents | | | | | 10,837 |
| | | | 10,619 |
|
Cash, cash equivalents and time deposits | | | | | 9,184 |
| | | | 7,803 |
|
Total cash and cash equivalents | | | | | $ | 20,021 |
| | | | $ | 18,422 |
|
Marketable securities - current | | | | | | | | | |
Available-for-sale securities | | | | | | | | | |
U.S. government and agencies | 2 | | $ | 5,343 |
| | $ | 5,344 |
| | $ | 1,231 |
| | $ | 1,231 |
|
Corporate debt | 2 | | 1,867 |
| | 1,869 |
| | 2,465 |
| | 2,505 |
|
Equity and sovereign debt | 1 & 2 | | 22 |
| | 22 |
| | 30 |
| | 51 |
|
Total available-for-sale securities | | | $ | 7,232 |
| | 7,235 |
| | $ | 3,726 |
| | 3,787 |
|
Trading securities - Sovereign debt | 2 | | | | 1,737 |
| | | | 5,201 |
|
Total marketable securities - current | | | | | 8,972 |
| | | | 8,988 |
|
Marketable securities - non-current | | | | | | | | | |
Available-for-sale securities - Investment in Peugeot S.A. | 1 | | $ | — |
| | — |
| | $ | 179 |
| | 179 |
|
Total marketable securities | | | | | $ | 8,972 |
| | | | $ | 9,167 |
|
Restricted cash and marketable securities | | | | | | | | | |
Available-for-sale securities | | | | | | | | | |
Money market funds | 1 | | $ | 897 |
| | $ | 897 |
| | $ | 933 |
| | $ | 933 |
|
Other | 2 | | 34 |
| | 35 |
| | 198 |
| | 199 |
|
Total marketable securities classified as restricted cash and marketable securities | | | $ | 931 |
| | 932 |
| | $ | 1,131 |
| | 1,132 |
|
Restricted cash and cash equivalents and time deposits | | | | | 1,144 |
| | | | 236 |
|
Total restricted cash and marketable securities | | | | | $ | 2,076 |
| | | | $ | 1,368 |
|
We are required to post cash and marketable securities as collateral as part of certain agreements that we enter into as part of our operations. Cash and marketable securities subject to contractual restrictions and not readily available are classified as Restricted cash and marketable securities. Restricted cash and marketable securities are invested in accordance with the terms of the underlying agreements and include amounts related to various deposits, escrows and other cash collateral.
Sales proceeds from investments classified as available-for-sale and sold prior to maturity were $4.7 billion, $4.7 billion and $1.6 billion in the years ended December 31, 2013, 2012 and 2011.
The following table summarizes the amortized cost and the fair value of investments classified as available-for-sale by contractual maturity at December 31, 2013 (dollars in millions):
|
| | | | | | | |
| Amortized Cost | | Fair Value |
Due in one year or less | $ | 14,879 |
| | $ | 14,881 |
|
Due after one year through five years | 1,937 |
| | 1,939 |
|
Total contractual maturities of available-for-sale securities | $ | 16,816 |
| | $ | 16,820 |
|
Cumulative unrealized gains and losses on available-for-sale securities and net unrealized gains (losses) on trading securities were insignificant at and in the years ended December 31, 2013, 2012 and 2011.
Peugeot S.A.
In December 2013 we sold our seven percent investment in Peugeot S. A. (PSA) common stock for $339 million, net of disposal costs and we recorded a net gain of $152 million in Interest income and other non-operating income, net.
At December 31, 2012 we measured the fair value of our investment in PSA common stock using the published stock price and determined the carrying amount of our investment in PSA common stock exceeded its fair value. PSA’s stock price had shown no sustained signs of recovery towards the price at which we acquired it in March 2012. Based upon the 55% decline in PSA common stock price since our acquisition and the nine month duration of the impairment, combined with our fourth quarter reassessment of our European automotive operations, we concluded that the impairment of our investment in PSA common stock was other-than-temporary. As a result we transferred the total unrealized losses from Accumulated other comprehensive loss to Interest income and other non-operating income, net resulting in an impairment charge of $220 million.
