Fair Value (Tables)

6 Months Ended

Jun. 30, 2020

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Financial assets measured at fair value on a recurring basis on the condensed consolidated balance sheets at June 30, 2020 and December 31, 2019 were as follows:



In millions	Level 1		Level 2		Level 3		Total
June 30, 2020
Cash and cash equivalents	$	9,101	$	5,768	$	—	$	14,869
Debt securities:
U.S. government securities	1,955		125		—		2,080
States, municipalities and political subdivisions	—		2,448		—		2,448
U.S. corporate securities	—		8,122		48		8,170
Foreign securities	—		2,485		—		2,485
Residential mortgage-backed securities	—		702		—		702
Commercial mortgage-backed securities	—		823		—		823
Other asset-backed securities	—		1,820		2		1,822
Redeemable preferred securities	—		23		1		24
Total debt securities	1,955		16,548		51		18,554
Equity securities	19		—		26		45
Total	$	11,075	$	22,316	$	77	$	33,468

December 31, 2019
Cash and cash equivalents	$	3,397	$	2,286	$	—	$	5,683
Debt securities:
U.S. government securities	1,785		67		—		1,852
States, municipalities and political subdivisions	—		2,309		—		2,309
U.S. corporate securities	—		7,700		37		7,737
Foreign securities	—		2,348		—		2,348
Residential mortgage-backed securities	—		533		—		533
Commercial mortgage-backed securities	—		700		—		700
Other asset-backed securities	—		1,405		—		1,405
Redeemable preferred securities	—		26		12		38
Total debt securities	1,785		15,088		49		16,922
Equity securities	34		—		39		73
Total	$	5,216	$	17,374	$	88	$	22,678

During the three and six months ended June 30, 2020 and 2019, there were no transfers into or out of Level 3.

Fair Value, by Balance Sheet Grouping

The carrying value and estimated fair value classified by level of fair value hierarchy for financial instruments carried on the condensed consolidated balance sheets at adjusted cost or contract value at June 30, 2020 and December 31, 2019 were as follows:



	Carrying Value		Estimated Fair Value
In millions			Level 1		Level 2		Level 3		Total
June 30, 2020
Assets:
Mortgage loans	$	1,138	$	—	$	—	$	1,163	$	1,163
Equity securities ⁽¹⁾	154		N/A		N/A		N/A		N/A
Liabilities:
Investment contract liabilities:
With a fixed maturity	5		—		—		5		5
Without a fixed maturity	322		—		—		367		367
Long-term debt	71,673		82,823		—		—		82,823

December 31, 2019
Assets:
Mortgage loans	$	1,213	$	—	$	—	$	1,239	$	1,239
Equity securities ⁽¹⁾	149		N/A		N/A		N/A		N/A
Liabilities:
Investment contract liabilities:
With a fixed maturity	5		—		—		5		5
Without a fixed maturity	372		—		—		392		392
Long-term debt	68,480		74,306		—		—		74,306

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(1)	It was not practical to estimate the fair value of these cost-method investments as it represents shares of unlisted companies.

Schedule of Fair Value of Separate Accounts by Major Category of Investment

Separate Accounts financial assets as of June 30, 2020 and December 31, 2019 were as follows:



	June 30, 2020								December 31, 2019
In millions	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	4	$	263	$	—	$	267	$	2	$	143	$	—	$	145
Debt securities	1,353		2,479		—		3,832		1,224		2,589		—		3,813
Equity securities	—		2		—		2		—		2		—		2
Common/collective trusts	—		538		—		538		—		499		—		499
Total	$	1,357	$	3,282	$	—	$	4,639	$	1,226	$	3,233	$	—	$	4,459