XML 38 R19.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Investments | 12 Months Ended
--- | ---
Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract] |
Investments | Investments Available-for-sale investments The amortized cost, gross unrealized gains, gross unrealized losses and fair values of available-for-sale investments by type of security were as follows (in millions):
Types of securities as of December 31, 2018 |  | Amortized cost |  | Gross unrealized gains |  | Gross unrealized losses |  | Fair values
U.S. Treasury notes |  | $ | 2,710 |  |  | $ | — |  |  | $ | (47 | ) |  | $ | 2,663 |
U.S. Treasury bills |  | 8,191 |  |  | — |  |  | — |  |  | 8,191 |
Other government-related debt securities: |  |  |  |  |  |  |  |
U.S. |  | 112 |  |  | — |  |  | (2 | ) |  | 110 |
Foreign and other |  | 972 |  |  | 1 |  |  | (41 | ) |  | 932 |
Corporate debt securities: |  |  |  |  |  |  |  |
Financial |  | 2,778 |  |  | — |  |  | (81 | ) |  | 2,697 |
Industrial |  | 2,603 |  |  | — |  |  | (99 | ) |  | 2,504 |
Other |  | 583 |  |  | — |  |  | (21 | ) |  | 562 |
Residential-mortgage-backed securities |  | 1,458 |  |  | — |  |  | (36 | ) |  | 1,422 |
Other mortgage- and asset-backed securities |  | 483 |  |  | — |  |  | (14 | ) |  | 469 |
Money market mutual funds |  | 5,659 |  |  | — |  |  | — |  |  | 5,659 |
Other short-term interest-bearing securities |  | 3,515 |  |  | — |  |  | — |  |  | 3,515 |
Total available-for-sale investments |  | $ | 29,064 |  |  | $ | 1 |  |  | $ | (341 | ) |  | $ | 28,724 |
Types of securities as of December 31, 2017 |  | Amortized cost |  | Gross unrealized gains |  | Gross unrealized losses |  | Fair values
U.S. Treasury notes |  | $ | 8,313 |  |  | $ | 1 |  |  | $ | (72 | ) |  | $ | 8,242 |
Other government-related debt securities: |  |  |  |  |  |  |  |
U.S. |  | 225 |  |  | — |  |  | (2 | ) |  | 223 |
Foreign and other |  | 2,415 |  |  | 18 |  |  | (11 | ) |  | 2,422 |
Corporate debt securities: |  |  |  |  |  |  |  |
Financial |  | 10,089 |  |  | 17 |  |  | (34 | ) |  | 10,072 |
Industrial |  | 9,688 |  |  | 34 |  |  | (52 | ) |  | 9,670 |
Other |  | 1,393 |  |  | 3 |  |  | (6 | ) |  | 1,390 |
Residential-mortgage-backed securities |  | 2,198 |  |  | — |  |  | (30 | ) |  | 2,168 |
Other mortgage- and asset-backed securities |  | 2,312 |  |  | — |  |  | (15 | ) |  | 2,297 |
Money market mutual funds |  | 3,245 |  |  | — |  |  | — |  |  | 3,245 |
Other short-term interest-bearing securities |  | 1,440 |  |  | — |  |  | — |  |  | 1,440 |
Total interest-bearing securities |  | 41,318 |  |  | 73 |  |  | (222 | ) |  | 41,169 |
Equity securities |  | 135 |  |  | 14 |  |  | — |  |  | 149 |
Total available-for-sale investments |  | $ | 41,453 |  |  | $ | 87 |  |  | $ | (222 | ) |  | $ | 41,318 |
The fair values of available-for-sale investments by location in the Consolidated Balance Sheets were as follows (in millions):
|  | December 31,
Consolidated Balance Sheets locations |  | 2018 |  | 2017
Cash and cash equivalents |  | $ | 6,365 |  |  | $ | 3,291 |
Marketable securities |  | 22,359 |  |  | 37,878 |
Other assets |  | — |  |  | 149 |
Total available-for-sale investments |  | $ | 28,724 |  |  | $ | 41,318 |
Cash and cash equivalents in the above table excludes bank account cash of $580 million and $509 million as of December 31, 2018 and 2017, respectively. Other assets as of December 31, 2017, consisted of equity securities, which are no longer classified as available-for-sale. As a result of the adoption of the new accounting standard related to the classification and measurement of financial instruments on January 1, 2018, equity investments (except for investments accounted for under the equity method of accounting) are now measured at fair value, with changes in fair value recognized in earnings. These investments were previously measured at fair value, with changes in fair value recognized in AOCI. Accordingly, these securities are no longer classified as available-for-sale and their presentation is not comparable to the presentation as of December 31, 2017. See Equity securities, discussed below, and Note 1, Summary of significant accounting policies. The fair values of available-for-sale interest-bearing security investments by contractual maturity, except for mortgage- and asset-backed securities that do not have a single maturity date, were as follows (in millions):
|  | December 31,
Contractual maturities |  | 2018 |  | 2017
Maturing in one year or less |  | $ | 17,424 |  |  | $ | 6,733 |
Maturing after one year through three years |  | 3,356 |  |  | 12,820 |
Maturing after three years through five years |  | 5,168 |  |  | 13,836 |
Maturing after five years through ten years |  | 885 |  |  | 3,263 |
Maturing after ten years |  | — |  |  | 52 |
Mortgage- and asset-backed securities |  | 1,891 |  |  | 4,465 |
Total interest-bearing securities |  | $ | 28,724 |  |  | $ | 41,169 |
For the years ended December 31, 2018, 2017 and 2016, realized gains on interest-bearing securities were $29 million, $147 million and $304 million, respectively, and realized losses on interest-bearing securities were $394 million, $213 million and $367 million, respectively. Realized gains and losses on interest-bearing securities are recorded in Interest and other income, net, in the Consolidated Statements of Income. The cost of securities sold is based on the specific-identification method. The fair values and gross unrealized losses of available-for-sale investments in an unrealized loss position aggregated by type and length of time that the securities have been in a continuous loss position were as follows (in millions):
|  | Less than 12 months |  | 12 months or more
Types of securities as of December 31, 2018 |  | Fair values |  | Unrealized losses |  | Fair values |  | Unrealized losses
U.S. Treasury notes |  | $ | 1,219 |  |  | $ | (21 | ) |  | $ | 1,444 |  |  | $ | (26 | )
Other government-related debt securities: |  |  |  |  |  |  |  |
U.S. |  | — |  |  | — |  |  | 110 |  |  | (2 | )
Foreign and other |  | 631 |  |  | (31 | ) |  | 240 |  |  | (10 | )
Corporate debt securities: |  |  |  |  |  |  |  |
Financial |  | 1,968 |  |  | (59 | ) |  | 718 |  |  | (22 | )
Industrial |  | 1,898 |  |  | (81 | ) |  | 529 |  |  | (18 | )
Other |  | 529 |  |  | (20 | ) |  | 28 |  |  | (1 | )
Residential-mortgage-backed securities |  | 576 |  |  | (14 | ) |  | 840 |  |  | (22 | )
Other mortgage- and asset-backed securities |  | 17 |  |  | — |  |  | 451 |  |  | (14 | )
Total |  | $ | 6,838 |  |  | $ | (226 | ) |  | $ | 4,360 |  |  | $ | (115 | )
|  | Less than 12 months |  | 12 months or more
Types of securities as of December 31, 2017 |  | Fair values |  | Unrealized losses |  | Fair values |  | Unrealized losses
U.S. Treasury notes |  | $ | 7,728 |  |  | $ | (70 | ) |  | $ | 195 |  |  | $ | (2 | )
Other government-related debt securities: |  |  |  |  |  |  |  |
U.S. |  | 188 |  |  | (1 | ) |  | 34 |  |  | (1 | )
Foreign and other |  | 1,163 |  |  | (9 | ) |  | 115 |  |  | (2 | )
Corporate debt securities: |  |  |  |  |  |  |  |
Financial |  | 5,928 |  |  | (28 | ) |  | 462 |  |  | (6 | )
Industrial |  | 5,760 |  |  | (43 | ) |  | 612 |  |  | (9 | )
Other |  | 868 |  |  | (4 | ) |  | 117 |  |  | (2 | )
Residential-mortgage-backed securities |  | 1,838 |  |  | (24 | ) |  | 276 |  |  | (6 | )
Other mortgage- and asset-backed securities |  | 1,777 |  |  | (12 | ) |  | 250 |  |  | (3 | )
Total |  | $ | 25,250 |  |  | $ | (191 | ) |  | $ | 2,061 |  |  | $ | (31 | )
The primary objective of our investment portfolio is to enhance overall returns in an efficient manner while maintaining safety of principal, prudent levels of liquidity and acceptable levels of risk. Our investment policy limits interest-bearing security investments to certain types of debt and money market instruments issued by institutions with primarily investment-grade credit ratings, and it places restrictions on maturities and concentration by asset class and issuer. We review our available-for-sale investments for other-than-temporary declines in fair value below our cost basis each quarter and whenever events or changes in circumstances indicate that the cost basis of an asset may not be recoverable. The evaluation is based on a number of factors, including the length of time and the extent to which the fair value has been below our cost basis, as well as adverse conditions related specifically to the security such as any changes to the credit rating of the security and the intent to sell or whether we will more likely than not be required to sell the security before recovery of its amortized cost basis. Our assessment of whether a security is other-than-temporarily impaired could change in the future based on new developments or changes in assumptions related to that particular security. As of December 31, 2018, unrealized losses on available-for-sale investments were due primarily to higher interest rates on that date than at the time the securities were purchased. As of December 31, 2018 and 2017, we believe the cost bases for our available-for-sale investments were recoverable in all material respects. Equity securities We held investments in equity securities with readily determinable fair values of $176 million and $149 million as of December 31, 2018 and 2017, respectively, which are included in Other assets in the Consolidated Balance Sheets. As a result of the adoption of the new accounting standard related to the classification and measurement of financial instruments on January 1, 2018, equity investments (except for investments accounted for under the equity method of accounting) are now measured at fair value, with changes in fair value recognized in earnings. These investments were previously measured at fair value, with changes in fair value recognized in AOCI. Accordingly, these securities are no longer classified as available-for-sale and their presentation is not comparable to the presentation as of December 31, 2017. See Available-for-sale investments, discussed above, and Note 1, Summary of significant accounting policies. Gains and losses recognized on equity securities with readily determinable fair values, including gains and losses recognized on sales, were not material for the years ended December 31, 2018, 2017 and 2016. We held investments in equity securities without readily determinable fair values of $222 million and $95 million as of December 31, 2018 and 2017, respectively, which are included in Other assets in the Consolidated Balance Sheets. Adjustments to the carrying values of these securities were not material for the years ended December 31, 2018, 2017 and 2016. Limited partnership investments We held limited partnership investments of $285 million and $213 million as of December 31, 2018 and 2017, respectively, which are included in Other assets in the Consolidated Balance Sheets. These investments are measured by using the net asset values of the underlying investments as a practical expedient. These investments are typically redeemable only through distributions upon liquidation of the underlying assets. As of December 31, 2018, unfunded additional commitments to be made during the next several years for these investments were not material. Gains and losses recognized on our limited partnership investments were not material for the years ended December 31, 2018, 2017 and 2016.

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration