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:
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Level Input: |
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Input Definition: |
Level I |
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Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. |
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Level II |
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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. |
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Level III |
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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, 2022, for assets and liabilities measured at fair value on a recurring basis ($ in millions):
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Level I |
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Level II |
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Level III |
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Total |
Assets |
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Cash and cash equivalents |
$ |
11,237 |
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$ |
— |
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$ |
— |
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$ |
11,237 |
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Investments: |
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U.S. Treasury securities and obligations of U.S. government corporations and agencies |
$ |
154 |
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$ |
— |
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$ |
— |
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$ |
154 |
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Corporate securities |
— |
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8,380 |
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— |
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8,380 |
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Municipal securities |
— |
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2,959 |
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— |
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2,959 |
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Short-term time deposits |
— |
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130 |
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— |
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130 |
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Asset-backed securities |
— |
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1,279 |
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— |
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1,279 |
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Residential mortgage-backed securities |
— |
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875 |
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— |
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875 |
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Commercial mortgage-backed securities |
— |
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897 |
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— |
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897 |
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Equity securities |
299 |
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2 |
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— |
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301 |
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Total investments |
$ |
453 |
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$ |
14,522 |
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$ |
— |
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$ |
14,975 |
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Restricted deposits: |
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Cash and cash equivalents |
$ |
262 |
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$ |
— |
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$ |
— |
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$ |
262 |
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Certificates of deposit |
— |
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4 |
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— |
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4 |
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Corporate securities |
— |
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30 |
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— |
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30 |
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Municipal securities |
— |
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525 |
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— |
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525 |
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U.S. Treasury securities and obligations of U.S. government corporations and agencies |
389 |
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— |
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— |
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389 |
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Total restricted deposits |
$ |
651 |
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$ |
559 |
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$ |
— |
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$ |
1,210 |
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Total assets at fair value |
$ |
12,341 |
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$ |
15,081 |
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$ |
— |
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$ |
27,422 |
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The following table summarizes fair value measurements by level at December 31, 2021, for assets and liabilities measured at fair value on a recurring basis ($ in millions):
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Level I |
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Level II |
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Level III |
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Total |
Assets |
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Cash and cash equivalents |
$ |
13,118 |
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$ |
— |
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$ |
— |
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$ |
13,118 |
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Investments: |
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U.S. Treasury securities and obligations of U.S. government corporations and agencies |
$ |
171 |
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$ |
— |
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$ |
— |
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$ |
171 |
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Corporate securities |
— |
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8,170 |
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— |
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8,170 |
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Municipal securities |
— |
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2,999 |
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— |
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2,999 |
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Short-term time deposits |
— |
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109 |
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— |
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109 |
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Asset backed securities |
— |
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1,308 |
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— |
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1,308 |
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Residential mortgage backed securities |
— |
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853 |
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— |
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853 |
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Commercial mortgage backed securities |
— |
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873 |
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— |
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873 |
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Equity securities |
324 |
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2 |
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— |
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326 |
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Total investments |
$ |
495 |
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$ |
14,314 |
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$ |
— |
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$ |
14,809 |
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Restricted deposits: |
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Cash and cash equivalents |
$ |
96 |
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$ |
— |
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$ |
— |
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$ |
96 |
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Certificates of deposit |
— |
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4 |
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— |
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4 |
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Corporate securities |
— |
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30 |
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— |
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30 |
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Municipal securities |
— |
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469 |
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— |
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469 |
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U.S. Treasury securities and obligations of U.S. government corporations and agencies |
469 |
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— |
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— |
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469 |
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Total restricted deposits |
$ |
565 |
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$ |
503 |
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$ |
— |
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$ |
1,068 |
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Other long-term assets: |
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Interest rate swap agreements |
$ |
— |
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$ |
15 |
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$ |
— |
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$ |
15 |
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Total assets at fair value |
$ |
14,178 |
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$ |
14,832 |
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$ |
— |
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$ |
29,010 |
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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 $822 million and $773 million as of March 31, 2022 and December 31, 2021, respectively.
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