Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

v3.20.1
Fair Value Measurements
3 Months Ended
Mar. 31, 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 March 31, 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
$
9,308

 
$

 
$

 
$
9,308

Investments:
 

 
 

 
 

 
 

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

 
$

 
$

 
$
114

Corporate securities

 
4,960

 

 
4,960

Municipal securities

 
2,554

 

 
2,554

Short-term time deposits

 
84

 

 
84

Asset-backed securities

 
1,018

 

 
1,018

Residential mortgage-backed securities

 
1,027

 

 
1,027

Commercial mortgage-backed securities

 
587

 

 
587

Equity securities
683

 
2

 

 
685

Total investments
$
797

 
$
10,232

 
$

 
$
11,029

Restricted deposits:
 

 
 

 
 

 
 

Cash and cash equivalents
$
149

 
$

 
$

 
$
149

Certificates of deposit

 
153

 

 
153

Corporate securities

 
18

 

 
$
18

Municipal securities

 
30

 

 
30

U.S. Treasury securities and obligations of U.S. government corporations and agencies
664

 

 

 
664

Total restricted deposits
$
813

 
$
201

 
$

 
$
1,014

Total assets at fair value
$
10,918

 
$
10,433

 
$

 
$
21,351



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 life insurance contracts and other private equity investments, which approximates fair value, was $878 million and $812 million as of March 31, 2020 and December 31, 2019, respectively.