NOTE 2 – FAIR VALUE

The Partnership's valuation methodologies for financial assets and financial liabilities measured at fair value and the fair value hierarchy are described in Part II, Item 8 – Financial Statements and Supplementary Data – Note 1 of the Partnership's Annual Report. There have been no material changes to the Partnership's valuation methodologies since December 31, 2016.

The Partnership did not have any assets or liabilities categorized as Level III during the nine and twelve month periods ended September 29, 2017 and December 31, 2016, respectively. In addition, there were no transfers into or out of Levels I, II or III during these periods.

The following tables show the Partnership’s financial assets measured at fair value:

	Financial Assets at Fair Value as of
	September 29, 2017
	Level I		Level II		Level III		Total
Cash equivalents:
Certificates of deposit	$	—	$	251	$	—	$	251

Investments segregated under federal regulations:
U.S. treasuries	$	2,600	$	—	$	—	$	2,600

Securities owned:
Investment securities:
Mutual funds⁽¹⁾	$	239	$	—	$	—	$	239
Government and agency obligations		4		—		—		4
Equities		2		—		—		2
Corporate bonds and notes		—		1		—		1
Total investment securities	$	245	$	1	$	—	$	246

Inventory securities:
State and municipal obligations	$	—	$	38	$	—	$	38
Equities		18		—		—		18
Certificates of deposit		—		14		—		14
Mutual funds		8		—		—		8
Corporate bonds and notes		—		3		—		3
Total inventory securities	$	26	$	55	$	—	$	81

⁽¹⁾	The mutual funds balance consists primarily of securities held to economically hedge future liabilities related to the non-qualified deferred compensation plan.

	Financial Assets at Fair Value as of
	December 31, 2016
	Level I		Level II		Level III		Total
Cash equivalents:
Certificates of deposit	$	—	$	150	$	—	$	150

Investments segregated under federal regulations:
U.S. treasuries	$	3,999	$	—	$	—	$	3,999
Certificates of deposit		—		150		—		150
Total investments segregated under federal regulations	$	3,999	$	150	$	—	$	4,149

Securities owned:
Investment securities:
Mutual funds⁽¹⁾	$	209	$	—	$	—	$	209
Government and agency obligations		9		—		—		9
Equities		5		—		—		5
Corporate bonds and notes		—		1		—		1
Total investment securities	$	223	$	1	$	—	$	224

Inventory securities:
Equities	$	17	$	—	$	—	$	17
State and municipal obligations		—		16		—		16
Mutual funds		7		—		—		7
Corporate bonds and notes		—		2		—		2
Other		—		1		—		1
Total inventory securities	$	24	$	19	$	—	$	43