XML 22 R11.htm IDEA: XBRL DOCUMENT
v3.7.0.1

FAIR VALUE | 6 Months Ended
--- | ---
Jun. 30, 2017
Fair Value Disclosures [Abstract] |
FAIR VALUE | FAIR VALUE Financial Assets The following table summarizes our fair value measurements at June 30, 2017 and December 31, 2016, respectively, for financial assets measured at fair value on a recurring basis:
| Fair Value Measurements Using
| Fair Value |  | Quoted Prices in Active Markets (Level 1) |  | Other Observable Inputs (Level 2) |  | Unobservable Inputs (Level 3)
| (in millions)
June 30, 2017 |  |  |  |  |  |  |
Cash equivalents | $ | 7,786 |  |  | $ | 7,786 |  |  | $ | — |  |  | $ | — |
Debt securities: |  |  |  |  |  |  |
U.S. Treasury and other U.S. government corporations and agencies: |  |  |  |  |  |  |
U.S. Treasury and agency obligations | 716 |  |  | — |  |  | 716 |  |  | — |
Mortgage-backed securities | 1,546 |  |  | — |  |  | 1,546 |  |  | — |
Tax-exempt municipal securities | 3,306 |  |  | — |  |  | 3,306 |  |  | — |
Mortgage-backed securities: |  |  |  |  |  |  |
Residential | 8 |  |  | — |  |  | 8 |  |  | — |
Commercial | 394 |  |  | — |  |  | 394 |  |  | — |
Asset-backed securities | 135 |  |  | — |  |  | 135 |  |  | — |
Corporate debt securities | 4,680 |  |  | — |  |  | 4,676 |  |  | 4 |
Total debt securities | 10,785 |  |  | — |  |  | 10,781 |  |  | 4 |
Total invested assets | $ | 18,571 |  |  | $ | 7,786 |  |  | $ | 10,781 |  |  | $ | 4 |
December 31, 2016 |  |  |  |  |  |  |
Cash equivalents | $ | 3,654 |  |  | $ | 3,654 |  |  | $ | — |  |  | $ | — |
Debt securities: |  |  |  |  |  |  |
U.S. Treasury and other U.S. government corporations and agencies: |  |  |  |  |  |  |
U.S. Treasury and agency obligations | 786 |  |  | — |  |  | 786 |  |  | — |
Mortgage-backed securities | 1,637 |  |  | — |  |  | 1,637 |  |  | — |
Tax-exempt municipal securities | 3,305 |  |  | — |  |  | 3,302 |  |  | 3 |
Mortgage-backed securities: |  |  |  |  |  |  |
Residential | 9 |  |  | — |  |  | 9 |  |  | — |
Commercial | 304 |  |  | — |  |  | 304 |  |  | — |
Asset-backed securities | 160 |  |  | — |  |  | 160 |  |  | — |
Corporate debt securities | 3,597 |  |  | — |  |  | 3,593 |  |  | 4 |
Total debt securities | 9,798 |  |  | — |  |  | 9,791 |  |  | 7 |
Total invested assets | $ | 13,452 |  |  | $ | 3,654 |  |  | $ | 9,791 |  |  | $ | 7 |
There were no material transfers between Level 1 and Level 2 during the three and six months ended June 30, 2017 or 2016. Our Level 3 assets had a fair value of $4 million at June 30, 2017, or 0.02% of our total invested assets. During the three and six months ended June 30, 2017 and 2016, the changes in the fair value of the assets measured using significant unobservable inputs (Level 3) were comprised of the following:
| For the three months ended June 30,
| 2017 |  | 2016
| Private Placements |  | Auction Rate Securities |  | Total |  | Private Placements |  | Auction Rate Securities |  | Total
| (in millions)
Beginning balance at April 1 | $ | 4 |  |  | $ | 3 |  |  | $ | 7 |  |  | $ | 6 |  |  | $ | 3 |  |  | $ | 9 |
Settlements | — |  |  | (3 | ) |  | (3 | ) |  | — |  |  | — |  |  | — |
Balance at June 30 | $ | 4 |  |  | $ | — |  |  | $ | 4 |  |  | $ | 6 |  |  | $ | 3 |  |  | $ | 9 |
| For the six months ended June 30,
| 2017 |  | 2016
| Private Placements |  | Auction Rate Securities |  | Total |  | Private Placements |  | Auction Rate Securities |  | Total
| (in millions)
Beginning balance at January 1 | $ | 4 |  |  | $ | 3 |  |  | $ | 7 |  |  | $ | 6 |  |  | $ | 5 |  |  | $ | 11 |
Settlements | — |  |  | (3 | ) |  | (3 | ) |  | — |  |  | (2 | ) |  | (2 | )
Balance at June 30 | $ | 4 |  |  | $ | — |  |  | $ | 4 |  |  | $ | 6 |  |  | $ | 3 |  |  | $ | 9 |
Financial Liabilities Our debt is recorded at carrying value in our consolidated balance sheets. The carrying value of our debt outstanding, including the current portion, net of unamortized debt issuance costs, was $4,780 million at June 30, 2017 and $3,792 million at December 31, 2016. The fair value of our debt, including the current portion, was $5,179 million at June 30, 2017 and $4,004 million at December 31, 2016. The fair value of our long-term debt is determined based on Level 2 inputs, including quoted market prices for the same or similar debt, or if no quoted market prices are available, on the current prices estimated to be available to us for debt with similar terms and remaining maturities. Due to the short-term nature, carrying value approximates fair value for our commercial paper borrowings. There were outstanding commercial paper borrowings of $200 million as of June 30, 2017 and $300 million as of December 31, 2016. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis As disclosed in Note 3, we completed the acquisition of certain health and wellness related businesses during 2017 and 2016. The values of net tangible assets acquired and the resulting goodwill and other intangible assets were recorded at fair value using Level 3 inputs. The majority of the tangible assets acquired and liabilities assumed were recorded at their carrying values as of the respective dates of acquisition, as their carrying values approximated their fair values due to their short-term nature. The fair values of goodwill and other intangible assets acquired in these acquisitions were internally estimated primarily based on the income approach. The income approach estimates fair value based on the present value of the cash flows that the assets are expected to generate in the future. We developed internal estimates for the expected cash flows and discount rates used in the present value calculations. Other than assets acquired and liabilities assumed in these acquisitions, there were no material assets or liabilities measured at fair value on a nonrecurring basis during 2017 or 2016.

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

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