Quarterly report pursuant to Section 13 or 15(d)

INVESTMENTS AND RESTRICTED CASH (Tables)

v3.8.0.1
INVESTMENTS AND RESTRICTED CASH (Tables)
 3 Months Ended
Mar. 31, 2018
Marketable Securities [Abstract]  
Available-for-sale Securities
The following is a summary of marketable securities classified as trading and available-for-sale as of March 31, 2018 and December 31, 2017 (in millions):
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Estimated
Fair Value
March 31, 2018:
 
 
 
 
 
 
 
Current trading marketable securities:
 
 
 
 
 
 
 
Corporate debt securities
$
75

 
$
—

 
$
—

 
$
75

Equity Securities
2

 
—

 
—

 
2

Total trading marketable securities
$
77

 
$
—

 
$
—

 
$
77

 
 
 
 
 
 
 
 
Current available-for-sale securities:
 
 
 
 
 
 
 
U.S. government and agency debt securities
$
312

 
$
—

 
$
(4
)
 
$
308

Mortgage and asset-backed debt securities
32

 
—

 
(1
)
 
31

Corporate debt securities
229

 
1

 
(2
)
 
228

U.S. state and local municipal debt securities
10

 
—

 
—

 
10

Non-U.S. government debt securities
11

 
—

 
—

 
11

Total available-for-sale marketable securities
$
594

 
$
1

 
$
(7
)
 
$
588

 
 
 
 
 
 
 
 
Total current marketable securities
$
671

 
$
1

 
$
(7
)
 
$
665

 
 
 
 
 
 
 
 
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Estimated
Fair Value
December 31, 2017:
 
 
 
 
 
 
 
Current trading marketable securities:
 
 
 
 
 
 
 
Corporate debt securities
$
75

 
$
—

 
$
—

 
$
75

Carbon credit investments (1)
77

 
16

 
—

 
93

Total trading marketable securities
$
152

 
$
16

 
$
—

 
$
168

 
 
 
 
 
 
 
 
Current available-for-sale securities:
 
 
 
 
 
 
 
U.S. government and agency debt securities
$
286

 
$
—

 
$
(3
)
 
$
283

Mortgage and asset-backed debt securities
86

 
—

 
—

 
86

Corporate debt securities
201

 
1

 
(1
)
 
201

Equity securities
2

 
—

 
—

 
2

Non-U.S. government debt securities
9

 
—

 
—

 
9

Total available-for-sale marketable securities
$
584

 
$
1

 
$
(4
)
 
$
581

 
 
 
 
 
 
 
 
Total current marketable securities
$
736

 
$
17

 
$
(4
)
 
$
749

(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.
Investments Classified by Contractual Maturity Date
The amortized cost and estimated fair value of marketable securities at March 31, 2018, 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.
 
Cost
 
Estimated
Fair Value
Due in one year or less
$
129

 
$
129

Due after one year through three years
434

 
429

Due after three years through five years
22

 
21

Due after five years
84

 
84

 
669

 
663

Equity and carbon credit investments
2

 
2

 
$
671

 
$
665

Cash and Cash Equivalents and Restricted Cash
A reconciliation of cash and cash equivalents and restricted cash from the consolidated balance sheets to the statements of consolidated cash flows is shown below (in millions).
 
 
March 31, 2018
 
December 31, 2017
 
March 31, 2017
Cash and cash equivalents
 
$
3,544

 
$
3,320

 
$
2,687

Restricted cash
 
282

 
449

 
455

Total cash, cash equivalents and restricted cash
 
$
3,826

 
$
3,769

 
$
3,142

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 March 31, 2018 and December 31, 2017, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value (in millions):
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Balance 
March 31, 2018:
 
 
 
 
 
 
 
Marketable Securities:
 
 
 
 
 
 
 
U.S. government and agency debt securities
$
308

 
$
—

 
$
—

 
$
308

Mortgage and asset-backed debt securities
—

 
31

 
—

 
31

Corporate debt securities
—

 
303

 
—

 
303

U.S. state and local municipal debt securities
—

 
10

 
—

 
10

Equity securities
—

 
2

 
—

 
2

Non-U.S. government debt securities
—

 
11

 
—

 
11

Total marketable securities
308

 
357

 
—

 
665

Other non-current investments
19

 
—

 
3

 
22

Total
$
327

 
$
357

 
$
3

 
$
687

December 31, 2017:
 
 
 
 
 
 
 
Marketable Securities:
 
 
 
 
 
 
 
U.S. government and agency debt securities
$
283

 
$
—

 
$
—

 
$
283

Mortgage and asset-backed debt securities


 
86

 
—

 
86

Corporate debt securities
—

 
276

 
—

 
276

Equity securities
—

 
2

 
—

 
2

Non-U.S. government debt securities
—

 
9

 
—

 
9

Carbon credit investments
93

 
—

 
—

 
93

Total marketable securities
376

 
373

 
—

 
749

Other non-current investments
19

 
—

 
6

 
25

Total
$
395

 
$
373

 
$
6

 
$
774

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 three months ended March 31, 2018 and 2017 (in millions):    
 
Marketable
Securities
 
Other
Non-Current
Investments
 
Total
Balance on January 1, 2018
$
—

 
$
6

 
$
6

Transfers into (out of) Level 3
—

 
—

 
—

Net realized and unrealized gains (losses):
 
 
 
 
 
Included in earnings (in investment income and other)
—

 
(3
)
 
(3
)
Included in accumulated other comprehensive income (pre-tax)
—

 
—

 
—

Purchases
—

 
—

 
—

Sales
—

 
—

 
—

Balance on March 31, 2018
$
—

 
$
3

 
$
3

 
Marketable
Securities
 
Other
Non-Current
Investments
 
Total
Balance on January 1, 2017
$
—

 
$
13

 
$
13

Transfers into (out of) Level 3
—

 
—

 
—

Net realized and unrealized gains (losses):
 
 
 
 
 
Included in earnings (in investment income and other)
—

 
(2
)
 
(2
)
Included in accumulated other comprehensive income (pre-tax)
—

 
—

 
—

Purchases
—

 
—

 
—

Sales
—

 
—

 
—

Balance on March 31, 2017
$
—

 
$
11

 
$
11


There were no transfers of investments between Level 1 and Level 2 during the three months ended March 31, 2018 and 2017.





 
Marketable
Securities
 
Other
Investments