Quarterly report pursuant to Section 13 or 15(d)

MARKETABLE SECURITIES AND NON-CURRENT INVESTMENTS (Tables)

v3.23.2
MARKETABLE SECURITIES AND NON-CURRENT INVESTMENTS (Tables)
 6 Months Ended
Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
Available-for-sale Securities The following is a summary of marketable securities classified as trading and available-for-sale as of June 30, 2023 and December 31, 2022 (in millions):
Cost Unrealized
Gains		 Unrealized
Losses		 Estimated
Fair Value
June 30, 2023:
Current trading marketable securities:
Equity securities $ 6  $ —  $ —  $ 6 
Total trading marketable securities 6  —  —  6 
Current available-for-sale securities:
U.S. government and agency debt securities 975  —  (11) 964 
Mortgage and asset-backed debt securities 8  —  —  8 
Corporate debt securities 2,059  —  (15) 2,044 
U.S. state and local municipal debt securities 3  —  —  3 
Non-U.S. government debt securities 46  —  —  46 
Total available-for-sale marketable securities 3,091  —  (26) 3,065 
Total current marketable securities $ 3,097  $ —  $ (26) $ 3,071 
  Cost Unrealized
Gains		 Unrealized
Losses		 Estimated
Fair Value
December 31, 2022:
Current trading marketable securities:
Equity securities $ 2  $ —  $ —  $ 2 
Total trading marketable securities 2  —  —  2 
Current available-for-sale 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 
Investments Classified by Contractual Maturity Date The amortized cost and estimated fair value of marketable securities as of June 30, 2023 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 $ 1,596  $ 1,591 
Due after one year through three years 1,489  1,468 
Due after three years through five years 6  6 
Due after five years —  — 
3,091  3,065 
Equity securities 6  6 
$ 3,097  $ 3,071 
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, 2023 and December 31, 2022, 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 
June 30, 2023:
Marketable Securities:
U.S. government and agency debt securities $ 964  $ —  $ —  $ 964 
Mortgage and asset-backed debt securities —  8  —  8 
Corporate debt securities —  2,044  —  2,044 
U.S. state and local municipal debt securities —  3  —  3 
Equity securities —  6  —  6 
Non-U.S. government debt securities —  46  —  46 
Total marketable securities 964  2,107  —  3,071 
Other non-current investments(1)
—  19  —  19 
Total $ 964  $ 2,126  $ —  $ 3,090 
(1) Represents a variable life insurance policy funding benefits for the UPS Excess Coordinating Benefit Plan.

December 31, 2022: Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		 Significant Other
Observable Inputs
(Level 2)		 Significant
Unobservable
Inputs
(Level 3)		 Total
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.