Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

v3.8.0.1
Fair Value Measurements
3 Months Ended
Mar. 31, 2018
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair Value Measurements

Assets and liabilities recorded at fair value in the Consolidated Balance Sheets are categorized based upon observable or unobservable inputs used to estimate fair value. Level inputs are as follows:
 
Level Input:
 
Input Definition:
Level I
 
Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.
 
 
 
Level II
 
Inputs other than quoted prices included in Level I that are observable for the asset or liability through corroboration with market data at the measurement date.
 
 
 
Level III
 
Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date.
 
The following table summarizes fair value measurements by level at March 31, 2018, for assets and liabilities measured at fair value on a recurring basis ($ in millions):  
 
Level I
 
Level II
 
Level III
 
Total
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
5,668

 
$

 
$

 
$
5,668

Investments available for sale:
 

 
 

 
 

 
 

U.S. Treasury securities and obligations of U.S. government corporations and agencies
$
137

 
$

 
$

 
$
137

Corporate securities

 
2,214

 

 
2,214

Municipal securities

 
2,162

 

 
2,162

Asset-backed securities

 
490

 

 
490

Residential mortgage-backed securities

 
335

 

 
335

Commercial mortgage-backed securities

 
281

 

 
281

Total investments
$
137

 
$
5,482

 
$

 
$
5,619

Restricted deposits available for sale:
 

 
 

 
 

 
 

Cash and cash equivalents
$
16

 
$

 
$

 
$
16

Certificates of deposit
4

 

 

 
4

U.S. Treasury securities and obligations of U.S. government corporations and agencies
120

 

 

 
120

Total restricted deposits
$
140

 
$

 
$

 
$
140

Other long-term assets: Interest rate swap agreements
$

 
$

 
$

 
$

Total assets at fair value
$
5,945

 
$
5,482

 
$

 
$
11,427

Liabilities
 
 
 
 
 
 
 
Other long-term liabilities:
 
 
 
 
 
 
 
Interest rate swap agreements
$

 
$
120

 
$

 
$
120

Total liabilities at fair value
$

 
$
120

 
$

 
$
120



























The following table summarizes fair value measurements by level at December 31, 2017, for assets and liabilities measured at fair value on a recurring basis ($ in millions): 
 
Level I
 
Level II
 
Level III
 
Total
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
4,072

 
$

 
$

 
$
4,072

Investments available for sale:
 

 
 

 
 

 
 

U.S. Treasury securities and obligations of U.S. government corporations and agencies
$
195

 
$

 
$

 
$
195

Corporate securities

 
2,210

 

 
2,210

Municipal securities

 
2,087

 

 
2,087

Asset-backed securities

 
437

 

 
437

Residential mortgage-backed securities

 
332

 

 
332

Commercial mortgage-backed securities

 
271

 

 
271

Total investments
$
195

 
$
5,337

 
$

 
$
5,532

Restricted deposits available for sale:
 

 
 

 
 

 
 

Cash and cash equivalents
$
17

 
$

 
$

 
$
17

Certificates of deposit
4

 

 

 
4

U.S. Treasury securities and obligations of U.S. government corporations and agencies
114

 

 

 
114

Total restricted deposits
$
135

 
$

 
$

 
$
135

Other long-term assets:
 
 
 
 
 
 
 
Interest rate swap agreements
$

 
$
1

 
$

 
$
1

Total assets at fair value
$
4,402

 
$
5,338

 
$

 
$
9,740

Liabilities
 
 
 
 
 
 
 
Other long-term liabilities:
 
 
 
 
 
 
 
Interest rate swap agreements
$

 
$
72

 
$

 
$
72

Total liabilities at fair value
$

 
$
72

 
$

 
$
72


 
The Company periodically transfers U.S. Treasury securities and obligations of U.S. government corporations and agencies between Level I and Level II fair value measurements dependent upon the level of trading activity for the specific securities at the measurement date. The Company’s policy regarding the timing of transfers between Level I and Level II is to measure and record the transfers at the end of the reporting period. At March 31, 2018, there were no transfers from Level I to Level II and no transfers from Level II to Level I. The Company utilizes matrix pricing services to estimate fair value for securities which are not actively traded on the measurement date. The Company designates these securities as Level II fair value measurements. The aggregate carrying amount of the Company’s life insurance contracts and other non-majority owned investments, which approximates fair value, was $423 million and $311 million as of March 31, 2018 and December 31, 2017, respectively.