XML 32 R13.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Financial Instruments and Fair Value Measurements | 3 Months Ended
--- | ---
Mar. 31, 2017
Financial Instruments and Fair Value Measurements | NOTE 6 - FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS The table below presents disclosures about the financial assets and liabilities measured at fair value on a recurring basis in the Company’s financial statements (in millions):
|  | March 31, 2017 |  |  | December 31, 2016 |
|  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Cash and cash equivalents |  | $ | 2,164 |  |  | $ | 2,164 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,179 |  |  | $ | 2,179 |  |  | $ | — |  |  | $ | — |
Short-term investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt |  |  | 804 |  |  |  | — |  |  |  | 804 |  |  |  | — |  |  |  | 835 |  |  |  | — |  |  |  | 835 |  |  |  | — |
Asset-backed securities |  |  | 757 |  |  |  | — |  |  |  | 757 |  |  |  | — |  |  |  | 792 |  |  |  | — |  |  |  | 792 |  |  |  | — |
Certificates of deposit placed through an account registry service (“CDARS”) |  |  | 224 |  |  |  | — |  |  |  | 224 |  |  |  | — |  |  |  | 246 |  |  |  | — |  |  |  | 246 |  |  |  | — |
U.S. government and agency notes |  |  | 101 |  |  |  | — |  |  |  | 101 |  |  |  | — |  |  |  | 140 |  |  |  | — |  |  |  | 140 |  |  |  | — |
Other fixed-income securities |  |  | 146 |  |  |  | — |  |  |  | 146 |  |  |  | — |  |  |  | 54 |  |  |  | — |  |  |  | 54 |  |  |  | — |
Other investments measured at NAV |  |  | 183 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 182 |  |  |  | — |  |  |  | — |  |  |  | — |
Restricted cash |  |  | 129 |  |  |  | 129 |  |  |  | — |  |  |  | — |  |  |  | 124 |  |  |  | 124 |  |  |  | — |  |  |  | — |
Enhanced equipment trust certificates (“EETC”) |  |  | 22 |  |  |  | — |  |  |  | — |  |  |  | 22 |  |  |  | 23 |  |  |  | — |  |  |  | — |  |  |  | 23 |
Available-for-sale investment maturities - The short-term investments shown in the table above are classified as available-for-sale. As of March 31, 2017, asset-backed securities have remaining maturities of less than one year to approximately 19 years, corporate debt securities have remaining maturities of less than one year to approximately five years and CDARS have maturities of less than one year. U.S. government and other securities have maturities of less than one year to approximately three years. The EETC securities mature in 2019. Restricted Cash - Restricted cash primarily includes cash collateral associated with workers’ compensation obligations and collateral for letters of credit. Investments presented in the table above have the same fair value as their carrying value. The table below presents the carrying values and estimated fair values of financial instruments not presented in the tables above (in millions):
|  | Fair Value of Debt by Fair Value Hierarchy Level |
|  | March 31, 2017 |  |  | December 31, 2016 |
|  | Carrying Amount |  |  | Fair Value |  |  | Carrying Amount |  |  | Fair Value |
|  |  |  |  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  |  |  |  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Long-term debt |  | $ | 11,894 |  |  | $ | 12,321 |  |  | $ | — |  |  | $ | 9,040 |  |  | $ | 3,281 |  |  | $ | 10,767 |  |  | $ | 11,055 |  |  | $ | — |  |  | $ | 8,184 |  |  | $ | 2,871 |
Fair value of the financial instruments included in the tables above was determined as follows:
Description |  | Fair Value Methodology
Cash and cash equivalents |  | The carrying amounts approximate fair value because of the short-term maturity of these assets.
Short-term investments and Restricted cash |  | Fair value is based on (a) the trading prices of the investment or similar instruments, (b) an income approach, which uses valuation techniques to convert future amounts into a single present amount based on current market expectations about those future amounts when observable trading prices are not available, or (c) broker quotes obtained by third-party valuation services.
Debt |  | Fair values were based on either market prices or the discounted amount of future cash flows using our current incremental rate of borrowing for similar liabilities.
Other investments measured at NAV |  | In accordance with the relevant accounting standards, certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. The investments measured using NAV are shares of mutual funds that invest in fixed-income instruments including bonds, debt securities, and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities. The Company can redeem its shares at any time at NAV subject to a three-day settlement period.

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13537-108611 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13504-108611 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13433-108611 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration