Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

v3.19.1
Fair Value Measurements
3 Months Ended
Mar. 31, 2019
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, 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
$
6,345

 
$

 
$

 
$
6,345

Investments available for sale:
 

 
 

 
 

 
 

U.S. Treasury securities and obligations of U.S. government corporations and agencies
$
149

 
$

 
$

 
$
149

Corporate securities

 
3,342

 

 
3,342

Municipal securities

 
2,290

 

 
2,290

Asset-backed securities

 
728

 

 
728

Residential mortgage-backed securities

 
455

 

 
455

Commercial mortgage-backed securities

 
380

 

 
380

Total investments
$
149

 
$
7,195

 
$

 
$
7,344

Restricted deposits available for sale:
 

 
 

 
 

 
 

Cash and cash equivalents
$
6

 
$

 
$

 
$
6

Certificates of deposit

 
474

 

 
474

U.S. Treasury securities and obligations of U.S. government corporations and agencies
102

 

 

 
102

Total restricted deposits
$
108

 
$
474

 
$

 
$
582

 
 
 
 
 
 
 
 
Total assets at fair value
$
6,602

 
$
7,669

 
$

 
$
14,271

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

 
$
61

 
$

 
$
61

Total liabilities at fair value
$

 
$
61

 
$

 
$
61










The following table summarizes fair value measurements by level at December 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
$
5,342

 
$

 
$

 
$
5,342

Investments available for sale:
 

 
 

 
 

 
 

U.S. Treasury securities and obligations of U.S. government corporations and agencies
$
247

 
$

 
$

 
$
247

Corporate securities

 
3,146

 

 
3,146

Municipal securities

 
2,187

 

 
2,187

Asset-backed securities

 
683

 

 
683

Residential mortgage-backed securities

 
444

 

 
444

Commercial mortgage-backed securities

 
361

 

 
361

Total investments
$
247

 
$
6,821

 
$

 
$
7,068

Restricted deposits available for sale:
 

 
 

 
 

 
 

Cash and cash equivalents
$
8

 
$

 
$

 
$
8

Certificates of deposit

 
433

 

 
433

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

 

 

 
114

Total restricted deposits
$
122

 
$
433

 
$

 
$
555

 
 
 
 
 
 
 
 
Total assets at fair value
$
5,711

 
$
7,254

 
$

 
$
12,965

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

 
$
95

 
$

 
$
95

Total liabilities at fair value
$

 
$
95

 
$

 
$
95


 
The Company utilizes matrix-pricing services to estimate fair value for securities that 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 life insurance contracts and other private equity investments, which approximates fair value, was $539 million and $515 million as of March 31, 2019 and December 31, 2018, respectively.