Quarterly report pursuant to Section 13 or 15(d)

INVESTMENTS AND RESTRICTED CASH (Tables)

v3.10.0.1
INVESTMENTS AND RESTRICTED CASH (Tables)
 9 Months Ended
Sep. 30, 2018
Marketable Securities [Abstract]  
Available-for-sale Securities The following is a summary of marketable securities classified as trading and available-for-sale as of September 30, 2018 and December 31, 2017 (in millions):
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Estimated
Fair Value
September 30, 2018:
 
 
 
 
 
 
 
Current trading marketable securities:
 
 
 
 
 
 
 
Corporate debt securities
$
75

 
$
—

 
$
—

 
$
75

Equity securities
2

 
—

 
—

 
2

Total trading marketable securities
77

 
—

 
—

 
77

 
 
 
 
 
 
 
 
Current available-for-sale securities:
 
 
 
 
 
 
 
U.S. government and agency debt securities
297

 
—

 
(5
)
 
292

Mortgage and asset-backed debt securities
85

 
—

 
(1
)
 
84

Corporate debt securities
277

 
—

 
(2
)
 
275

Non-U.S. government debt securities
16

 
—

 
—

 
16

Total available-for-sale marketable securities
675

 
—

 
(8
)
 
667

 
 
 
 
 
 
 
 
Total current marketable securities
$
752

 
$
—

 
$
(8
)
 
$
744

 
 
 
 
 
 
 
 
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Estimated
Fair Value
December 31, 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 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 14 for offsetting statement of consolidated income impact.
Investments Classified by Contractual Maturity Date The amortized cost and estimated fair value of marketable securities at September 30, 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
$
230

 
$
228

Due after one year through three years
424

 
420

Due after three years through five years
21

 
21

Due after five years
75

 
73

 
750

 
742

Equity securities
2

 
2

 
$
752

 
$
744

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, 2018
 
December 31, 2017
 
September 30, 2017
Cash and cash equivalents
 
$
4,097

 
$
3,320

 
$
3,418

Restricted cash
 
278

 
449

 
448

Total cash, cash equivalents and restricted cash
 
$
4,375

 
$
3,769

 
$
3,866

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, 2018 and December 31, 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)
 
Balance 
September 30, 2018:
 
 
 
 
 
 
 
Marketable Securities:
 
 
 
 
 
 
 
U.S. government and agency debt securities
$
292

 
$
—

 
$
—

 
$
292

Mortgage and asset-backed debt securities
—

 
84

 
—

 
84

Corporate debt securities
—

 
350

 
—

 
350

Equity securities
—

 
2

 
—

 
2

Non-U.S. government debt securities
—

 
16

 
—

 
16

Total marketable securities
292

 
452

 
—

 
744

Other non-current investments
19

 
—

 
2

 
21

Total
$
311

 
$
452

 
$
2

 
$
765

December 31, 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

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation There were no transfers of investments between Level 1 and Level 2 during the three or nine months ended September 30, 2018 or 2017.