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CASH AND INVESTMENTS | 9 Months Ended
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Sep. 30, 2021
Marketable Securities [Abstract] |
CASH AND INVESTMENTS | CASH AND INVESTMENTS The following is a summary of marketable securities classified as trading and available-for-sale as of September 30, 2021 and December 31, 2020 (in millions):
| Cost |  | Unrealized Gains |  | Unrealized Losses |  | Estimated Fair Value
September 30, 2021: |  |  |  |  |  |  |
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 | 222 |  |  | 1 |  |  | — |  |  | 223 |
Mortgage and asset-backed debt securities | — |  |  | — |  |  | — |  |  | — |
Corporate debt securities | 113 |  |  | 2 |  |  | — |  |  | 115 |
U.S. state and local municipal debt securities | 5 |  |  | — |  |  | — |  |  | 5 |
Non-U.S. government debt securities | 3 |  |  | — |  |  | — |  |  | 3 |
Total available-for-sale marketable securities | 343 |  |  | 3 |  |  | — |  |  | 346 |
Total current marketable securities | $ | 345 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 348 |
| Cost |  | Unrealized Gains |  | Unrealized Losses |  | Estimated Fair Value
December 31, 2020: |  |  |  |  |  |  |
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 | 181 |  |  | 3 |  |  | — |  |  | 184 |
Mortgage and asset-backed debt securities | 30 |  |  | 1 |  |  | — |  |  | 31 |
Corporate debt securities | 174 |  |  | 4 |  |  | — |  |  | 178 |
U.S. state and local municipal debt securities | — |  |  | — |  |  | — |  |  | — |
Non-U.S. government debt securities | 11 |  |  | — |  |  | — |  |  | 11 |
Total available-for-sale marketable securities | 396 |  |  | 8 |  |  | — |  |  | 404 |
Total current marketable securities | $ | 398 |  |  | $ | 8 |  |  | $ | — |  |  | $ | 406 |
Investment Impairments We have concluded that no material impairment losses existed as of September 30, 2021. In making this determination, we considered the financial condition and prospects of each issuer, the magnitude of the losses compared with the cost, the probability that we will be unable to collect all amounts due according to the contractual terms of the security, the credit rating of the security and our ability and intent to hold these investments until the anticipated recovery in market value occurs. Maturity Information The amortized cost and estimated fair value of marketable securities as of September 30, 2021 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 | $ | 35 |  |  | $ | 35 |
Due after one year through three years | 306 |  |  | 309 |
Due after three years through five years | 2 |  |  | 2 |
Due after five years | — |  |  | — |
| 343 |  |  | 346 |
Equity securities | 2 |  |  | 2 |
| $ | 345 |  |  | $ | 348 |
Non-Current Investments and Restricted Cash We held a $23 million investment in a variable life insurance policy to fund benefits for the UPS Excess Coordinating Benefit Plan as of both September 30, 2021 and December 31, 2020. The change in investment fair value is recognized in Investment income and other in the statements of consolidated income. Additionally, we held escrowed cash related to the acquisition and disposition of certain assets of $1 million and $2 million as of September 30, 2021 and December 31, 2020, respectively. These amounts are classified as Investments and Restricted Cash in the consolidated balance sheets. 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, 2021 |  | December 31, 2020 |  | September 30, 2020
Cash and cash equivalents |  | $ | 10,212 |  |  | $ | 5,910 |  |  | $ | 8,839 |
Restricted cash |  | — |  |  | — |  |  | 1 |
Total cash, cash equivalents and restricted cash |  | $ | 10,212 |  |  | $ | 5,910 |  |  | $ | 8,840 |
Fair Value Measurements Marketable securities valued utilizing Level 1 inputs include active exchange-traded equity securities and equity index funds, and most U.S. government debt securities, as these securities all have quoted prices in active markets. Marketable securities valued utilizing Level 2 inputs include asset-backed securities, corporate bonds and municipal bonds. These securities are valued using market corroborated pricing, matrix pricing or other models that utilize observable inputs such as yield curves. The following table presents information about our investments measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020, 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, 2021: |  |  |  |  |  |  |
Marketable Securities: |  |  |  |  |  |  |
U.S. government and agency debt securities | $ | 217 |  |  | $ | 6 |  |  | $ | — |  |  | $ | 223 |
Mortgage and asset-backed debt securities | — |  |  | — |  |  | — |  |  | — |
Corporate debt securities | — |  |  | 115 |  |  | — |  |  | 115 |
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 | 217 |  |  | 131 |  |  | — |  |  | 348 |
Other non-current investments | 23 |  |  | — |  |  | — |  |  | 23 |
Total | $ | 240 |  |  | $ | 131 |  |  | $ | — |  |  | $ | 371 |
December 31, 2020: |  |  |  |  |  |  |
Marketable Securities: |  |  |  |  |  |  |
U.S. government and agency debt securities | $ | 184 |  |  | $ | — |  |  | $ | — |  |  | $ | 184 |
Mortgage and asset-backed debt securities | — |  |  | 31 |  |  | — |  |  | 31 |
Corporate debt securities | — |  |  | 178 |  |  | — |  |  | 178 |
U.S. state and local municipal debt securities | — |  |  | — |  |  | — |  |  | — |
Equity securities | — |  |  | 2 |  |  | — |  |  | 2 |
Non-U.S. government debt securities | — |  |  | 11 |  |  | — |  |  | 11 |
Total marketable securities | 184 |  |  | 222 |  |  | — |  |  | 406 |
Other non-current investments | 23 |  |  | — |  |  | — |  |  | 23 |
Total | $ | 207 |  |  | $ | 222 |  |  | $ | — |  |  | $ | 429 |
There were no transfers of investments between Level 1 and Level 2 during the nine months ended September 30, 2021 or 2020.

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