Notes to Consolidated Financial Statements

NOTE 5

MARKETABLE SECURITIES AND OTHER INVESTMENTS

We have investments in marketable securities which are considered “available-for-sale” under the provisions of SFAS No. 115. These investments have been included in our consolidated balance sheets in Short-term investments, Other investments, Investments in unconsolidated businesses and Other assets.

Investment Impairment Charge

During 2008, we recorded a pretax charge of $48 million ($31 million after-tax) related to an other-than-temporary decline in the fair value of our investments in certain marketable securities.

The following table shows certain summarized information related to our investments in marketable securities:

(dollars in millions)

 

 

 

Gross Unrealized

 

 

 

Cost

 

Gains

 

Losses

 

Fair Value

 

At December 31, 2008

Short-term investments

$

362

 

$

2

 

$

(5

)

$

359

 

Investments in unconsolidated businesses (Note 7)

 

342

 

 

 

 

(52

)

 

290

 

Other investments (Notes 2 and 12)

 

4,781

 

 

 

 

 

 

4,781

 

Other assets

 

684

 

 

4

 

 

(9

)

 

679

 

 

$

6,169

 

$

6

 

$

(66

)

$

6,109

 

At December 31, 2007

Short-term investments

$

497

 

$

21

 

$

 

$

518

 

Investments in unconsolidated businesses (Note 7)

 

286

 

 

42

 

 

 

 

328

 

Other assets

 

661

 

 

31

 

 

 

 

692

 

 

$

1,444

 

$

94

 

$

 

$

1,538

 

Our short-term investments are primarily bonds and mutual funds.

Certain other investments in securities that we hold are not adjusted to market values because those values are not readily determinable and/or the securities are not marketable. We do, however, adjust the carrying values of these securities in situations where we believe declines in value below cost were other–than-temporary. The carrying values for investments not adjusted to market value were $28 million at December 31, 2008 and $15 million at December 31, 2007.