Annual report pursuant to Section 13 and 15(d)

CASH AND INVESTMENTS (Tables)

v3.10.0.1
CASH AND INVESTMENTS (Tables)
 12 Months Ended
Dec. 31, 2018
Investments and Cash [Abstract]  
Schedule of Unrealized Loss on Investments [Table Text Block]
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, 2018 (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
$
54

 
$
—

 
$
111

 
$
(2
)
 
$
165

 
$
(2
)
Mortgage and asset-backed debt securities
24

 
—

 
36

 
(1
)
 
60

 
(1
)
Corporate debt securities
99

 
—

 
81

 
(2
)
 
180

 
(2
)
Non-U.S. government debt securities
—

 
—

 
5

 
—

 
5

 
—

Total marketable securities
$
177

 
$
—

 
$
233

 
$
(5
)
 
$
410

 
$
(5
)
Summary of Marketable Securities
The following is a summary of marketable securities classified as trading and available-for-sale at December 31, 2018 and 2017 (in millions):
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Estimated
Fair Value
2018
 
 
 
 
 
 
 
Current trading marketable securities:
 
 
 
 
 
 
 
Corporate debt securities
$
137

 
$
—

 
$
—

 
$
137

Equity securities
2

 
—

 
—

 
2

Total trading marketable securities
139

 
—

 
—

 
139

 
 
 
 
 
 
 
 
Current available-for-sale marketable 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

 
 
 
 
 
 
 
 
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Estimated
Fair Value
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 marketable 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 15 for offsetting statement of consolidated income impact.
Amortized Cost and Estimated Fair Value of Marketable Securities by Contractual Maturity
The amortized cost and estimated fair value of marketable securities at December 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
$
268

 
$
267

Due after one year through three years
448

 
447

Due after three years through five years
22

 
22

Due after five years
73

 
72

 
811

 
808

Equity securities
2

 
2

 
$
813

 
$
810

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 in shown below (in millions):
 
December 31, 2018
 
December 31, 2017
 
December 31, 2016
Cash and cash equivalents
$
4,225

 
$
3,320

 
$
3,476

Restricted cash
$
142

 
$
449

 
$
445

Total cash, cash equivalents and restricted cash
$
4,367

 
$
3,769

 
$
3,921

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, 2018 and 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)
 
Total
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

 
 
 
 
 
 
 
 
 
Quoted Prices in
Active Markets 
for Identical
Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
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

Changes in Level 3 Instruments Measured on a Recurring Basis
There were no transfers of investments between Level 1 and Level 2 during the years ended December 31, 2018 and 2017.