Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

v3.20.2
Fair Value Measurements
6 Months Ended
Jun. 30, 2020
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 June 30, 2020, 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
$
12,798

 
$

 
$

 
$
12,798

Investments:
 

 
 

 
 

 
 

U.S. Treasury securities and obligations of U.S. government corporations and agencies
$
238

 
$

 
$

 
$
238

Corporate securities

 
5,013

 

 
5,013

Municipal securities

 
2,507

 

 
2,507

Short-term time deposits

 
56

 

 
56

Asset-backed securities

 
971

 

 
971

Residential mortgage-backed securities

 
920

 

 
920

Commercial mortgage-backed securities

 
599

 

 
599

Equity securities
559

 
2

 

 
561

Total investments
$
797

 
$
10,068

 
$

 
$
10,865

Restricted deposits:
 

 
 

 
 

 
 

Cash and cash equivalents
$
157

 
$

 
$

 
$
157

Certificates of deposit

 
104

 

 
104

Corporate securities

 
18

 

 
18

Municipal securities

 
28

 

 
28

U.S. Treasury securities and obligations of U.S. government corporations and agencies
743

 

 

 
743

Total restricted deposits
$
900

 
$
150

 
$

 
$
1,050

Total assets at fair value
$
14,495

 
$
10,218

 
$

 
$
24,713



The following table summarizes fair value measurements by level at December 31, 2019, 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
$
12,123

 
$

 
$

 
$
12,123

Investments:
 

 
 

 
 

 
 

U.S. Treasury securities and obligations of U.S. government corporations and agencies
$
73

 
$

 
$

 
$
73

Corporate securities

 
3,713

 

 
3,713

Municipal securities

 
2,379

 

 
2,379

Asset-backed securities

 
744

 

 
744

Residential mortgage-backed securities

 
471

 

 
471

Commercial mortgage-backed securities

 
388

 

 
388

Total investments
$
73

 
$
7,695

 
$

 
$
7,768

Restricted deposits:
 

 
 

 
 

 
 

Cash and cash equivalents
$
8

 
$

 
$

 
$
8

Certificates of deposit

 
482

 

 
482

Corporate securities

 
20

 

 
20

Municipal securities

 
9

 

 
9

U.S. Treasury securities and obligations of U.S. government corporations and agencies
139

 

 

 
139

Total restricted deposits
$
147

 
$
511

 
$

 
$
658

Other long-term assets:
 
 
 
 
 
 
 
Interest rate swap agreements
$

 
$
10

 
$

 
$
10

Total assets at fair value
$
12,343

 
$
8,216

 
$

 
$
20,559

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

 
$
11

 
$

 
$
11

Total liabilities at fair value
$

 
$
11

 
$

 
$
11


 
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. In addition, the aggregate carrying amount of the Company’s private equity investments and life insurance contracts, which approximates fair value, was $924 million and $812 million as of June 30, 2020 and December 31, 2019, respectively.