Fair Value Measurements

6 Months Ended

Jun. 30, 2023

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, 2023, 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	$	17,170	$	—	$	—	$	17,170
Investments:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	112	$	—	$	—	$	112
Corporate securities	—		9,833		—		9,833
Municipal securities	—		3,310		—		3,310
Short-term time deposits	—		419		—		419
Asset-backed securities	—		1,448		—		1,448
Residential mortgage-backed securities	—		1,227		—		1,227
Commercial mortgage-backed securities	—		981		—		981
Equity securities	—		2		—		2
Total investments	$	112	$	17,220	$	—	$	17,332
Restricted deposits:
Cash and cash equivalents	$	358	$	—	$	—	$	358
U.S. Treasury securities and obligations of U.S. government corporations and agencies	338		—		—		338
Corporate securities	—		34		—		34
Certificates of deposit	—		4		—		4
Municipal securities	—		621		—		621
Total restricted deposits	$	696	$	659	$	—	$	1,355
Total assets at fair value	$	17,978	$	17,879	$	—	$	35,857

The following table summarizes fair value measurements by level at December 31, 2022, 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	$	12,074	$	—	$	—	$	12,074
Investments:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	366	$	5	$	—	$	371
Corporate securities	—		9,328		—		9,328
Municipal securities	—		3,165		—		3,165
Short-term time deposits	—		204		—		204
Asset backed securities	—		1,326		—		1,326
Residential mortgage-backed securities	—		1,046		—		1,046
Commercial mortgage-backed securities	—		862		—		862
Equity securities	3		2		—		5
Total investments	$	369	$	15,938	$	—	$	16,307
Restricted deposits:
Cash and cash equivalents	$	256	$	—	$	—	$	256
U.S. Treasury securities and obligations of U.S. government corporations and agencies	308		—		—		308
Corporate securities	—		33		—		33
Certificates of deposit	—		4		—		4
Municipal securities	—		616		—		616
Total restricted deposits	$	564	$	653	$	—	$	1,217
Total assets at fair value	$	13,007	$	16,591	$	—	$	29,598

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 $988 million and $698 million as of June 30, 2023 and December 31, 2022, respectively.