FAIR VALUE MEASUREMENTS

A summary of the Company's recurring and nonrecurring fair value measurements can be found in Note 22 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. If applicable, updates have been included in the respective section below.

Fair Value Measurements on a Recurring Basis

The following tables summarize the bases used to measure certain assets and liabilities at fair value on a recurring basis:



Basis of Fair Value Measurements on a Recurring Basis at Mar 31, 2018 In millions	Quoted Prices in Active Markets for Identical Items (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets at fair value:
Cash equivalents ¹	$	—	$	1,422	$	—	$	1,422
Marketable securities	—		11		—		11
Interests in trade accounts receivable conduits ²	—		—		234		234
Equity securities ³	24		127		—		151
Debt securities: ³
Government debt ⁴	—		542		—		542
Corporate bonds	—		993		—		993
Derivatives relating to: ⁵
Commodities	22		84		—		106
Foreign currency	—		116		—		116
Total assets at fair value	$	46	$	3,295	$	234	$	3,575
Liabilities at fair value:
Long-term debt including debt due within one year ⁶	$	—	$	22,091	$	—	$	22,091
Derivatives relating to: ⁵
Interest rates	—		3		—		3
Commodities	20		250		—		270
Foreign currency	—		166		—		166
Total liabilities at fair value	$	20	$	22,510	$	—	$	22,530


1.	Treasury bills, time deposits, and money market funds included in "Cash and cash equivalents" in the consolidated balance sheets and held at amortized cost, which approximates fair value. Also includes investments with maturities of less than three months at time of acquisition.


2.	Included in "Accounts and notes receivable - Other" in the consolidated balance sheets. See Note 9 for additional information on transfers of financial assets.


3.	The Company’s investments in debt securities, which are primarily available-for-sale, and equity securities are included in “Other investments” in the consolidated balance sheets.


4.	U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations.


5.	See Note 16 for the classification of derivatives in the consolidated balance sheets.


6.	See Note 16 for information on fair value measurements of long-term debt.



Basis of Fair Value Measurements on a Recurring Basis at Dec 31, 2017 In millions	Quoted Prices in Active Markets for Identical Items (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets at fair value:
Cash equivalents ¹	$	—	$	2,280	$	—	$	2,280
Marketable securities	—		4		—		4
Interests in trade accounts receivable conduits ²	—		—		677		677
Equity securities ³	88		52		—		140
Debt securities: ³
Government debt ⁴	—		639		—		639
Corporate bonds	—		733		—		733
Derivatives relating to: ⁵
Commodities	47		100		—		147
Foreign currency	—		126		—		126
Total assets at fair value	$	135	$	3,934	$	677	$	4,746
Liabilities at fair value:
Long-term debt including debt due within one year ⁶	$	—	$	22,615	$	—	$	22,615
Derivatives relating to: ⁵
Interest rates	—		4		—		4
Commodities	31		261		—		292
Foreign currency	—		216		—		216
Total liabilities at fair value	$	31	$	23,096	$	—	$	23,127


1.	Treasury bills, time deposits, and money market funds included in "Cash and cash equivalents" in the consolidated balance sheets and held at amortized cost, which approximates fair value.


2.	Included in "Accounts and notes receivable - Other" in the consolidated balance sheets. See Note 9 for additional information on transfers of financial assets.


3.	The Company’s investments in debt securities, which are primarily available-for-sale, and equity securities are included in “Other investments” in the consolidated balance sheets.


4.	U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations.


5.	See Note 16 for the classification of derivatives in the consolidated balance sheets.


6.	See Note 16 for information on fair value measurements of long-term debt.

The following table summarizes the changes in fair value measurements of interests held in trade receivable conduits using Level 3 inputs for the three months ended March 31, 2018 and 2017:



Fair Value Measurements Using Level 3 Inputs for Interests Held in Trade Receivable Conduits ¹	Three Months Ended
	Mar 31, 2018			Mar 31, 2017
In millions	Mar 31, 2018			Mar 31, 2017
Balance at beginning of period	$	677		$	1,237
Gain included in earnings ²	2			—
Purchases ³	—			977
Settlements ³	(445		)	(551		)
Balance at end of period	$	234		$	1,663


1.	Included in “Accounts and notes receivable – Other” in the consolidated balance sheets.


2.	Included in “Selling, general and administrative expenses” in the consolidated statements of income.


3.	Presented in accordance with ASU 2016-15. See Notes 1 and 2 for additional information. In connection with the review and implementation of ASU 2016-15, the Company also changed the prior year value of “Purchases” and "Settlements" due to additional interpretive guidance of the required method for calculating the cash received from beneficial interests in the conduits.