Fair Value Measurements

9 Months Ended

Sep. 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 September 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	$	18,190	$	—	$	—	$	18,190
Investments:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	81	$	—	$	—	$	81
Corporate securities	—		9,142		—		9,142
Municipal securities	—		2,918		—		2,918
Short-term time deposits	—		470		—		470
Asset-backed securities	—		1,583		—		1,583
Residential mortgage-backed securities	—		1,303		—		1,303
Commercial mortgage-backed securities	—		988		—		988
Equity securities	—		2		—		2
Total investments	$	81	$	16,406	$	—	$	16,487
Restricted deposits:
Cash and cash equivalents	$	260	$	—	$	—	$	260
U.S. Treasury securities and obligations of U.S. government corporations and agencies	327		—		—		327
Corporate securities	—		32		—		32
Certificates of deposit	—		4		—		4
Municipal securities	—		720		—		720
Total restricted deposits	$	587	$	756	$	—	$	1,343
Other current assets:
Foreign currency swap agreement	$	—	$	27	$	—	$	27
Total assets at fair value	$	18,858	$	17,189	$	—	$	36,047

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 September 30, 2023 and December 31, 2022, respectively.