Fair Value Measurements

9 Months Ended

Sep. 30, 2021

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 September 30, 2021, 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	$	13,423	$	—	$	—	$	13,423
Investments:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	216	$	—	$	—	$	216
Corporate securities	—		7,796		—		7,796
Municipal securities	—		3,042		—		3,042
Short-term time deposits	—		78		—		78
Asset-backed securities	—		1,148		—		1,148
Residential mortgage-backed securities	—		911		—		911
Commercial mortgage-backed securities	—		830		—		830
Equity securities	315		2		—		317
Total investments	$	531	$	13,807	$	—	$	14,338
Restricted deposits:
Cash and cash equivalents	$	211	$	—	$	—	$	211
Certificates of deposit	—		4		—		4
Corporate securities	—		31		—		31
Municipal securities	—		428		—		428
U.S. Treasury securities and obligations of U.S. government corporations and agencies	440		—		—		440
Total restricted deposits	$	651	$	463	$	—	$	1,114
Other current assets:
Foreign currency swap agreement	$	—	$	18	$	—	$	18
Total assets at fair value	$	14,605	$	14,288	$	—	$	28,893

The following table summarizes fair value measurements by level at December 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	$	10,800	$	—	$	—	$	10,800
Investments:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	165	$	—	$	—	$	165
Corporate securities	—		6,789		—		6,789
Municipal securities	—		3,070		—		3,070
Short-term time deposits	—		53		—		53
Asset backed securities	—		1,164		—		1,164
Residential mortgage backed securities	—		1,095		—		1,095
Commercial mortgage backed securities	—		773		—		773
Equity securities	316		2		—		318
Total investments	$	481	$	12,946	$	—	$	13,427
Restricted deposits:
Cash and cash equivalents	$	157	$	—	$	—	$	157
Certificates of deposit	—		105		—		105
Corporate securities	—		25		—		25
Municipal securities	—		27		—		27
U.S. Treasury securities and obligations of U.S. government corporations and agencies	746		—		—		746
Total restricted deposits	$	903	$	157	$	—	$	1,060
Total assets at fair value	$	12,184	$	13,103	$	—	$	25,287

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 $740 million and $1,006 million as of September 30, 2021 and December 31, 2020, respectively.