Annual report pursuant to Section 13 and 15(d)

MARKETABLE SECURITIES AND LONG-TERM INVESTMENTS (Tables)

v3.22.4
MARKETABLE SECURITIES AND LONG-TERM INVESTMENTS (Tables)
 12 Months Ended
Dec. 31, 2022
Investments and Cash [Abstract]  
Summary of Marketable Securities The following is a summary of marketable securities classified as trading and available-for-sale as of December 31, 2022 and 2021 (in millions):
Cost Unrealized
Gains		 Unrealized
Losses		 Estimated
Fair Value
2022
Current trading marketable securities:
Corporate debt securities $ —  $ —  $ —  $ — 
Equity securities 2  —  —  2 
Total trading marketable securities 2  —  —  2 
Current available-for-sale marketable securities:
U.S. government and agency debt securities 355  —  (8) 347 
Mortgage and asset-backed debt securities 9  —  —  9 
Corporate debt securities 1,472  —  (6) 1,466 
U.S. state and local municipal debt securities 4  —  —  4 
Non-U.S. government debt securities 165  —  —  165 
Total available-for-sale marketable securities 2,005  —  (14) 1,991 
Total current marketable securities $ 2,007  $ —  $ (14) $ 1,993 
Cost Unrealized
Gains		 Unrealized
Losses		 Estimated
Fair Value
2021
Current trading marketable securities:
Corporate debt securities $ —  $ —  $ —  $ — 
Equity securities 2  —  —  2 
Total trading marketable securities 2  —  —  2 
Current available-for-sale marketable securities:
U.S. government and agency debt securities 199  2  (1) 200 
Mortgage and asset-backed debt securities 7  —  —  7 
Corporate debt securities 121  —  —  121 
U.S. state and local municipal debt securities 5  —  —  5 
Non-U.S. government debt securities 3  —  —  3 
Total available-for-sale marketable securities 335  2  (1) 336 
Total current marketable securities $ 337  $ 2  $ (1) $ 338 
Schedule of Unrealized Loss on Investments
The following table presents the age of gross unrealized losses and fair value by investment category for all securities in a loss position as of December 31, 2022 (in millions):
Less Than 12 Months 12 Months or More Total
Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses
U.S. government and agency debt securities $ 209  $ (4) $ 68  $ (4) $ 277  $ (8)
Mortgage and asset-backed debt securities 7  —  —  —  7  — 
Corporate debt securities 592  (3) 51  (3) 643  (6)
U.S. state and local municipal debt securities —  —  4  —  4  — 
Total marketable securities $ 808  $ (7) $ 123  $ (7) $ 931  $ (14)
Amortized Cost and Estimated Fair Value of Marketable Securities by Contractual Maturity
The amortized cost and estimated fair value of marketable securities as of December 31, 2022 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 $ 1,187  $ 1,187 
Due after one year through three years 791  777 
Due after three years through five years 27  27 
Due after five years —  — 
2,005  1,991 
Equity securities 2  2 
$ 2,007  $ 1,993 
Investments Measured at Fair Value on a Recurring Basis The following table presents information about our investments measured at fair value on a recurring basis as of December 31, 2022 and 2021, 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)		 Total
2022
Marketable Securities:
U.S. government and agency debt securities $ 279  $ 68  $ —  $ 347 
Mortgage and asset-backed debt securities —  9  —  9 
Corporate debt securities —  1,466  —  1,466 
U.S. state and local municipal debt securities —  4  —  4 
Equity securities —  2  —  2 
Non-U.S. government debt securities —  165  —  165 
Total marketable securities 279  1,714  —  1,993 
Other non-current investments(1)
—  18  —  18 
Total $ 279  $ 1,732  $ —  $ 2,011 
(1) Represents a variable life insurance policy funding benefits for the UPS Excess Coordinating Benefit Plan.
  Quoted Prices in
Active Markets 
for Identical
Assets
(Level 1)		 Significant Other
Observable Inputs
(Level 2)		 Significant
Unobservable
Inputs
(Level 3)		 Total
2021
Marketable Securities:
U.S. government and agency debt securities $ 200  $ —  $ —  $ 200 
Mortgage and asset-backed debt securities —  7  —  7 
Corporate debt securities —  121  —  121 
U.S. state and local municipal debt securities —  5  —  5 
Equity securities —  2  —  2 
Non-U.S. government debt securities —  3  —  3 
Total marketable securities 200  138  —  338 
Other non-current investments(1)
—  23  —  23 
Total $ 200  $ 161  $ —  $ 361 
(1) Represents a variable life insurance policy funding benefits for the UPS Excess Coordinating Benefit Plan.