Annual report pursuant to Section 13 and 15(d)

Financial Instruments

v2.4.0.6
Financial Instruments
 12 Months Ended
Dec. 31, 2012
Financial Instruments  
Financial Instruments
Realized and unrealized gains (losses) on financial instruments are comprised of changes in the fair value of the following:
 
Years ended December 31,
 
2012
 
2011
 
2010
 
 
 
 
Non-strategic Securities(1)
$
310

 
254

 
669

Borrowed shares(1)
—

 
(104
)
 
(254
)
    Net change from Non-strategic securities(1)
310

 
150

 
415

Exchangeable senior debentures
—

 
(85
)
 
(111
)
Other
(78
)
 
3

 
(44
)
 
$
232

 
68

 
260



(1) As described above, gains and (losses) on borrowed shares completely offset the gains and (losses) on the same Non-strategic Securities owned by the Company.
Financial Instruments Disclosure [Text Block]
Financial Instruments
Borrowed Shares
From time to time and in connection with certain of its derivative instruments, the Company borrows shares of the underlying securities from a counterparty and delivers these borrowed shares in settlement of maturing derivative positions. In these transactions, a similar number of shares that are owned by the Company have been posted as collateral with the counterparty. These share borrowing arrangements can be terminated at any time at the Company's option by delivering shares to the counterparty. The counterparty can terminate these arrangements at any time. The liability under these share borrowing arrangements is marked to market each reporting period with changes in value recorded in unrealized gains or losses in the consolidated statement of operations. The shares posted as collateral under these arrangements are marked to market each reporting period with changes in value recorded as unrealized gains or losses in the consolidated statement of operations.The Company settled all the outstanding borrowed share arrangements in the fourth quarter of 2011 by releasing the shares posted as collateral to the counterparty. The fair value of the available-for-sale securities at the time the shares were released to the counterparty was $1,134 million, which completely offset the $1,134 million financial instrument liability related to the share borrowing arrangement. During the year ended December 31, 2011, other borrowed share arrangements were settled in a similar manner that retired $189 million in financial instrument liabilities through the delivery of $189 million in fair value of available-for-sale securities.
Realized and Unrealized Gains (Losses) on Financial Instruments

Realized and unrealized gains (losses) on financial instruments are comprised of changes in the fair value of the following:
 
Years ended December 31,
 
2012
 
2011
 
2010
 
 
 
 
Non-strategic Securities(1)
$
310

 
254

 
669

Borrowed shares(1)
—

 
(104
)
 
(254
)
    Net change from Non-strategic securities(1)
310

 
150

 
415

Exchangeable senior debentures
—

 
(85
)
 
(111
)
Other
(78
)
 
3

 
(44
)
 
$
232

 
68

 
260



(1) As described above, gains and (losses) on borrowed shares completely offset the gains and (losses) on the same Non-strategic Securities owned by the Company.