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INVESTMENTS | 12 Months Ended
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Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract] |
INVESTMENTS | INVESTMENTS The following tables summarize our financial instruments by significant categories and fair value measurement on a recurring basis as of December 31, 2023 and December 31, 2022 and the amortized cost, gross unrealized gains, gross unrealized losses, and fair value of our AFS investments:
(in millions) | Fair Value Level | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Cash and Cash Equivalents | Investments | Restricted Cash, Cash Equivalents and Investments
December 31, 2023 |  |  |  |  |  |  |  |
Cash equivalents: |  |  |  |  |  |  |  |
Money market mutual funds | Level 1 | $ | 183 |  | $ | — |  | $ | — |  | $ | 183 |  | $ | 96 |  | $ | — |  | $ | 87 |
U.S. treasuries | Level 2 | 7 |  | — |  | — |  | 7 |  | 5 |  | — |  | 2 |
Total cash equivalents |  | 190 |  | — |  | — |  | 190 | 101 |  | — |  | 89 |
AFS Investments: |  |  |  |  |  |  |  |
Asset-backed securities | Level 2 | 41 |  | — |  | (1) |  | 40 |  | — |  | 40 |  | — |
Corporate bonds | Level 2 | 135 |  | 1 |  | — |  | 136 |  | — |  | 103 |  | 33 |
Agency securities | Level 2 | 40 |  | — |  | (1) |  | 39 |  | — |  | 10 |  | 29 |
U.S. treasuries | Level 2 | 231 |  | 1 |  | (1) |  | 231 |  | — |  | 47 |  | 184 |
Certificate of deposit | Level 2 | 2 |  | — |  | — |  | 2 |  | — |  | — |  | 2 |
Other debt securities | Level 2 | 8 |  | — |  | — |  | 8 |  | — |  | 8 |  | — |
Total AFS Investments |  | $ | 457 |  | $ | 2 |  | $ | (3) |  | $ | 456 |  | $ | — |  | $ | 208 |  | $ | 248 |
(in millions) | Fair Value Level | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Cash and Cash Equivalents | Investments | Restricted Cash, Cash Equivalents and Investments
December 31, 2022 |  |  |  |  |  |  |  |
Cash equivalents: |  |  |  |  |  |  |  |
Money market mutual funds | Level 1 | $ | 314 |  | $ | — |  | $ | — |  | $ | 314 |  | $ | 225 |  | $ | — |  | $ | 89 |
U.S. treasuries | Level 2 | 18 |  | — |  | — |  | 18 | 18 |  | — |  | — |
Total cash equivalents |  | 332 |  | — |  | — |  | 332 | 243 |  | — |  | 89 |
AFS Investments: |  |  |  |  |  |  |  |
Asset-backed securities | Level 2 | 42 |  | — |  | (2) |  | 40 |  | — |  | 40 |  | — |
Corporate bonds | Level 2 | 140 |  | — |  | (1) |  | 139 |  | — |  | 112 |  | 27 |
Agency securities | Level 2 | 33 |  | — |  | (1) |  | 32 |  | — |  | 5 |  | 27 |
U.S. treasuries | Level 2 | 229 |  | — |  | — |  | 229 |  | — |  | 62 |  | 167 |
Certificate of deposit | Level 2 | 12 |  | — |  | — |  | 12 |  | — |  | — |  | 12 |
Other debt securities | Level 2 | 8 |  | — |  | — |  | 8 |  | — |  | 7 |  | 1 |
Total AFS Investments |  | $ | 464 |  | $ | — |  | $ | (4) |  | $ | 460 |  | $ | — |  | $ | 226 |  | $ | 234 |
Fair Value of Financial Instruments We use an independent pricing source to determine the fair value of our securities. The independent pricing source utilizes various pricing models for each asset class, including the market approach. The inputs and assumptions for the pricing models are market observable inputs including trades of comparable securities, dealer quotes, credit spreads, yield curves and other market-related data. We have not adjusted the prices obtained from the independent pricing service and we believe the prices received from the independent pricing service are representative of the prices that would be received to sell the assets at the measurement date (exit price). The carrying value of the Company's cash equivalents and restricted cash equivalents approximate their fair values due to their short-term maturities. We did not have any Level 3 financial instruments recognized in our balance sheets as of December 31, 2023 and December 31, 2022. There were no transfers between levels as of December 31, 2023 and December 31, 2022. Sales and Maturities The fair value of debt investments by contractual maturity are shown below:
(in millions) |  | December 31, 2023 |  |  |
One year or less |  | $ | 93 |  |  |  |
Over one year through five years |  | 332 |  |  |  |
Over five years through ten years |  | 11 |  |  |  |
Over ten years |  | 20 |  |  |  |
Total fair value |  | $ | 456 |  |  |  |
The gross proceeds from sales and maturities of AFS securities for the years ended December 31, 2023, 2022, and 2021 are presented below. We had immaterial gross realized gains and losses from sales of investments for the year ended December 31, 2021.
| Year Ended December 31,
(in millions) | 2023 | 2022 | 2021
Gross realized losses | $ | (1) |  | $ | (18) |  | $ | — |
Gross proceeds from sales | 150 |  | 227 |  | 162 |
Gross proceeds from maturities | 137 |  | 253 |  | 187 |
Total | $ | 286 |  | $ | 462 |  | $ | 349 |
Unrealized Losses on AFS Investments Unrealized losses on fixed income securities are principally caused by changes in market interest rates and the financial condition of the issuer. In analyzing an issuer's financial condition, we consider whether the securities are issued by the federal government or its agencies, whether downgrades by credit rating agencies have occurred, and industry analysts' reports. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. As of December 31, 2022, management recorded an impairment loss of $7 million on fixed income securities due to the probability that management could sell these securities before they recover in value. None of this impairment was credit-related. After this recognized impairment, gross unrealized losses related to AFS investments in an unrealized loss position were $4 million. Gross unrealized losses were immaterial at December 31, 2023 and December 31, 2021. Fair Value of Long-Term Debt The fair value of our 2029 Notes and 2031 Notes was obtained from a third-party pricing service and is based on observable market inputs. As such, the fair value of the senior notes is considered Level 2 in the hierarchy for fair value measurement. As of December 31, 2023, our 2029 Notes and 2031 Notes were carried at their cost, net of issuance costs, and had a fair value of $443 million and $414 million, respectively. As of December 31, 2022, our 2029 Notes were carried at their cost, net of issuance costs, and had a fair value of $413 million. Our 2021 Revolver is a floating rate debt. At December 31, 2023, the fair value of our 2021 Revolver approximated its carrying value (exclusive of issuance costs). The fair value of our floating rate debt is estimated based on a discounted cash flow, which incorporates credit spreads, market interest rates and contractual maturities to estimate the fair value and is considered Level 3 in the hierarchy for fair value measurement.

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