United Parcel Service, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

INVESTMENTS AND RESTRICTED CASH (Tables)

INVESTMENTS AND RESTRICTED CASH (Tables)

6 Months Ended

Jun. 30, 2019

The following is a summary of marketable securities classified as trading and available-for-sale as of June 30, 2019 and December 31, 2018 (in millions):



	Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
June 30, 2019:
Current trading marketable securities:
Corporate debt securities	$	114	$	—	$	—		$	114
Equity securities	2		—		—			2
Total trading marketable securities	116		—		—			116

Current available-for-sale securities:
U.S. government and agency debt securities	295		4		(1		)	298
Mortgage and asset-backed debt securities	69		1		—			70
Corporate debt securities	220		2		—			222
Non-U.S. government debt securities	19		—		—			19
Total available-for-sale marketable securities	603		7		(1		)	609

Total current marketable securities	$	719	$	7	$	(1	)	$	725

	Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
December 31, 2018:
Current trading marketable securities:
Corporate debt securities	$	137	$	—	$	—		$	137
Equity securities	2		—		—			2
Total trading marketable securities	139		—		—			139

Current available-for-sale securities:
U.S. government and agency debt securities	297		1		(1		)	297
Mortgage and asset-backed debt securities	82		—		(1		)	81
Corporate debt securities	275		—		(2		)	273
Non-U.S. government debt securities	20		—		—			20
Total available-for-sale marketable securities	674		1		(4		)	671

Total current marketable securities	$	813	$	1	$	(4	)	$	810

Investments Classified by Contractual Maturity Date

The amortized cost and estimated fair value of marketable securities at June 30, 2019, 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 with or without prepayment penalties.



	Cost		Estimated Fair Value
Due in one year or less	$	147	$	147
Due after one year through three years	472		474
Due after three years through five years	21		22
Due after five years	77		80
	717		723
Equity securities	2		2
	$	719	$	725

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):



	June 30, 2019		December 31, 2018		June 30, 2018
Cash and cash equivalents	$	4,072	$	4,225	$	4,214
Restricted cash	144		142		277
Total cash, cash equivalents and restricted cash	$	4,216	$	4,367	$	4,491

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 June 30, 2019 and December 31, 2018, 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
June 30, 2019:
Marketable Securities:
U.S. government and agency debt securities	$	298	$	—	$	—	$	298
Mortgage and asset-backed debt securities	—		70		—		70
Corporate debt securities	—		336		—		336
Equity securities	—		2		—		2
Non-U.S. government debt securities	—		19		—		19
Total marketable securities	298		427		—		725
Other non-current investments	20		—		1		21
Total	$	318	$	427	$	1	$	746



December 31, 2018:
Marketable Securities:
U.S. government and agency debt securities	$	297	$	—	$	—	$	297
Mortgage and asset-backed debt securities	—		81		—		81
Corporate debt securities	—		410		—		410
Equity securities	—		2		—		2
Non-U.S. government debt securities	—		20		—		20
Total marketable securities	297		513		—		810
Other non-current investments	19		—		2		21
Total	$	316	$	513	$	2	$	831

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

There were no transfers of investments between Level 1 and Level 2 during the six months ended June 30, 2019 or 2018.