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

Quarterly report pursuant to Section 13 or 15(d)

CASH AND INVESTMENTS (Tables)

CASH AND INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2019

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



	Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
September 30, 2019:
Current trading marketable securities:
Corporate debt securities	$	109	$	—	$	—		$	109
Equity securities	2		—		—			2
Total trading marketable securities	111		—		—			111

Current available-for-sale securities:
U.S. government and agency debt securities	161		2		—			163
Mortgage and asset-backed debt securities	54		1		—			55
Corporate debt securities	150		3		—			153
Non-U.S. government debt securities	16		—		—			16
Total available-for-sale marketable securities	381		6		—			387

Total current marketable securities	$	492	$	6	$	—		$	498

	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 September 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	$	121	$	121
Due after one year through three years	318		321
Due after three years through five years	7		8
Due after five years	44		46
	490		496
Equity securities	2		2
	$	492	$	498

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):



	September 30, 2019		December 31, 2018		September 30, 2018
Cash and cash equivalents	$	4,040	$	4,225	$	4,097
Restricted cash	145		142		278
Total cash, cash equivalents and restricted cash	$	4,185	$	4,367	$	4,375

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, 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
September 30, 2019:
Marketable Securities:
U.S. government and agency debt securities	$	163	$	—	$	—	$	163
Mortgage and asset-backed debt securities	—		55		—		55
Corporate debt securities	—		262		—		262
Equity securities	—		2		—		2
Non-U.S. government debt securities	—		16		—		16
Total marketable securities	163		335		—		498
Other non-current investments	20		—		2		22
Total	$	183	$	335	$	2	$	520



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 nine months ended September 30, 2019 or 2018.