INVESTMENTS AND RESTRICTED CASH (Tables)
|
9 Months Ended |
Sep. 30, 2016 |
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| Marketable Securities [Abstract] |
|
| Available-for-sale Securities |
The following is a summary of marketable securities classified as trading and available-for-sale as of September 30, 2016 and December 31, 2015 (in millions):
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Cost |
|
Unrealized
Gains
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Unrealized
Losses
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Estimated
Fair Value
|
September 30, 2016: |
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Current trading marketable securities: |
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|
|
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Corporate debt securities |
$ |
1,156 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,156 |
|
Carbon credit investments (1)
|
433 |
|
|
— |
|
|
(150 |
) |
|
283 |
|
Total trading marketable securities |
$ |
1,589 |
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|
$ |
— |
|
|
$ |
(150 |
) |
|
$ |
1,439 |
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|
|
|
Current available-for-sale securities: |
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U.S. government and agency debt securities |
$ |
321 |
|
|
$ |
2 |
|
|
$ |
— |
|
|
$ |
323 |
|
Mortgage and asset-backed debt securities |
86 |
|
|
1 |
|
|
— |
|
|
87 |
|
Corporate debt securities |
203 |
|
|
2 |
|
|
— |
|
|
205 |
|
Equity Securities |
2 |
|
|
— |
|
|
— |
|
|
2 |
|
Non-U.S. government debt securities |
3 |
|
|
— |
|
|
— |
|
|
3 |
|
Total available-for-sale marketable securities |
$ |
615 |
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|
$ |
5 |
|
|
$ |
— |
|
|
$ |
620 |
|
|
|
|
|
|
|
|
|
Total current marketable securities |
$ |
2,204 |
|
|
$ |
5 |
|
|
$ |
(150 |
) |
|
$ |
2,059 |
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|
Cost |
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Estimated
Fair Value
|
December 31, 2015: |
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|
|
|
|
Current trading marketable securities: |
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|
|
|
|
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Corporate debt securities |
$ |
715 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
715 |
|
Non-U.S. government debt securities (1)
|
363 |
|
|
— |
|
|
— |
|
|
363 |
|
Carbon credit investments (1)
|
347 |
|
|
9 |
|
|
(5 |
) |
|
351 |
|
Total trading marketable securities |
$ |
1,425 |
|
|
$ |
9 |
|
|
$ |
(5 |
) |
|
$ |
1,429 |
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Current available-for-sale securities: |
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U.S. government and agency debt securities |
$ |
341 |
|
|
$ |
— |
|
|
$ |
(1 |
) |
|
$ |
340 |
|
Mortgage and asset-backed debt securities |
74 |
|
|
1 |
|
|
(1 |
) |
|
74 |
|
Corporate debt securities |
147 |
|
|
— |
|
|
(1 |
) |
|
146 |
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U.S. state and local municipal debt securities |
2 |
|
|
— |
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|
— |
|
|
2 |
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Equity securities |
2 |
|
|
— |
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|
— |
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|
2 |
|
Non-U.S. government debt securities |
3 |
|
|
— |
|
|
— |
|
|
3 |
|
Total available-for-sale marketable securities |
$ |
569 |
|
|
$ |
1 |
|
|
$ |
(3 |
) |
|
$ |
567 |
|
|
|
|
|
|
|
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Total current marketable securities |
$ |
1,994 |
|
|
$ |
10 |
|
|
$ |
(8 |
) |
|
$ |
1,996 |
|
(1) These investments are hedged with forward contracts that are not designated in hedging relationships. See Note 14 for offsetting statement of consolidated income impact.
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| Investments Classified by Contractual Maturity Date |
The amortized cost and estimated fair value of marketable securities at September 30, 2016, by contractual maturity, are shown below (in millions). Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.
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Cost |
|
Estimated
Fair Value
|
Due in one year or less |
$ |
1,227 |
|
|
$ |
1,228 |
|
Due after one year through three years |
453 |
|
|
454 |
|
Due after three years through five years |
17 |
|
|
17 |
|
Due after five years |
72 |
|
|
75 |
|
|
1,769 |
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|
1,774 |
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Equity and carbon credit investments |
435 |
|
|
285 |
|
|
$ |
2,204 |
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|
$ |
2,059 |
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| Fair Value, Assets Measured on Recurring Basis |
The following table presents information about our investments measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2015, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value (in millions):
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Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
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Significant Other
Observable Inputs
(Level 2)
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Significant
Unobservable
Inputs
(Level 3)
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Balance |
September 30, 2016: |
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Marketable Securities: |
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|
|
|
|
U.S. government and agency debt securities |
$ |
323 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
323 |
|
Mortgage and asset-backed debt securities |
— |
|
|
87 |
|
|
— |
|
|
87 |
|
Corporate debt securities |
— |
|
|
1,361 |
|
|
— |
|
|
1,361 |
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Equity securities |
— |
|
|
2 |
|
|
— |
|
|
2 |
|
Non-U.S. government debt securities |
— |
|
|
3 |
|
|
— |
|
|
3 |
|
Carbon credit investments |
283 |
|
|
— |
|
|
— |
|
|
283 |
|
Total marketable securities |
606 |
|
|
1,453 |
|
|
— |
|
|
2,059 |
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Other non-current investments |
19 |
|
|
— |
|
|
18 |
|
|
37 |
|
Total |
$ |
625 |
|
|
$ |
1,453 |
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|
$ |
18 |
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|
$ |
2,096 |
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December 31, 2015: |
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Marketable Securities: |
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|
|
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|
U.S. government and agency debt securities |
$ |
340 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
340 |
|
Mortgage and asset-backed debt securities |
— |
|
|
74 |
|
|
— |
|
|
74 |
|
Corporate debt securities |
— |
|
|
861 |
|
|
— |
|
|
861 |
|
U.S. state and local municipal debt securities |
— |
|
|
2 |
|
|
— |
|
|
2 |
|
Equity securities |
— |
|
|
2 |
|
|
— |
|
|
2 |
|
Non-U.S. government debt securities |
— |
|
|
366 |
|
|
— |
|
|
366 |
|
Carbon credit investments |
351 |
|
|
— |
|
|
— |
|
|
351 |
|
Total marketable securities |
691 |
|
|
1,305 |
|
|
— |
|
|
1,996 |
|
Other non-current investments |
19 |
|
|
— |
|
|
32 |
|
|
51 |
|
Total |
$ |
710 |
|
|
$ |
1,305 |
|
|
$ |
32 |
|
|
$ |
2,047 |
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| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation |
The following table presents the changes in the above Level 3 instruments measured on a recurring basis for the nine months ended September 30, 2016 and 2015 (in millions):
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Marketable
Securities
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Other
Investments
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Total |
Balance on January 1, 2016 |
$ |
— |
|
|
32 |
|
|
32 |
|
Transfers into (out of) Level 3 |
— |
|
|
— |
|
|
— |
|
Net realized and unrealized gains (losses): |
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|
|
|
Included in earnings (in investment income and other) |
— |
|
|
(14 |
) |
|
(14 |
) |
Included in accumulated other comprehensive income (pre-tax) |
— |
|
|
— |
|
|
— |
|
Purchases |
— |
|
|
— |
|
|
— |
|
Sales |
— |
|
|
— |
|
|
— |
|
Balance on September 30, 2016 |
$ |
— |
|
|
$ |
18 |
|
|
$ |
18 |
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|
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Marketable
Securities
|
|
Other
Investments
|
|
Total |
Balance on January 1, 2015 |
$ |
— |
|
|
64 |
|
|
64 |
|
Transfers into (out of) Level 3 |
— |
|
|
— |
|
|
— |
|
Net realized and unrealized gains (losses): |
|
|
|
|
|
Included in earnings (in investment income and other) |
— |
|
|
(24 |
) |
|
(24 |
) |
Included in accumulated other comprehensive income (pre-tax) |
— |
|
|
— |
|
|
— |
|
Purchases |
— |
|
|
— |
|
|
— |
|
Sales |
— |
|
|
— |
|
|
— |
|
Balance on September 30, 2015 |
$ |
— |
|
|
$ |
40 |
|
|
$ |
40 |
|
The following table presents the changes in the above Level 3 instruments measured on a recurring basis for the three months ended September 30, 2016 and 2015 (in millions):
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Marketable
Securities
|
|
Other
Non-Current
Investments
|
|
Total |
Balance on July 1, 2016 |
$ |
— |
|
|
$ |
22 |
|
|
$ |
22 |
|
Transfers into (out of) Level 3 |
— |
|
|
— |
|
|
— |
|
Net realized and unrealized gains (losses): |
|
|
|
|
|
Included in earnings (in investment income and other) |
— |
|
|
(4 |
) |
|
(4 |
) |
Included in accumulated other comprehensive income (pre-tax) |
— |
|
|
— |
|
|
— |
|
Purchases |
— |
|
|
— |
|
|
— |
|
Sales |
— |
|
|
— |
|
|
— |
|
Balance on September 30, 2016 |
$ |
— |
|
|
$ |
18 |
|
|
$ |
18 |
|
|
|
|
|
|
|
|
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|
|
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|
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Marketable
Securities
|
|
Other
Non-Current
Investments
|
|
Total |
Balance on July 1, 2015 |
$ |
— |
|
|
$ |
48 |
|
|
$ |
48 |
|
Transfers into (out of) Level 3 |
— |
|
|
— |
|
|
— |
|
Net realized and unrealized gains (losses): |
|
|
|
|
|
Included in earnings (in investment income and other) |
— |
|
|
(8 |
) |
|
(8 |
) |
Included in accumulated other comprehensive income (pre-tax) |
— |
|
|
— |
|
|
— |
|
Purchases |
— |
|
|
— |
|
|
— |
|
Sales |
— |
|
|
— |
|
|
— |
|
Balance on September 30, 2015 |
$ |
— |
|
|
$ |
40 |
|
|
$ |
40 |
|
|