Fair value measurements (Tables)

9 Months Ended

Sep. 30, 2011

Fair values of financial assets and liabilities

The estimated fair values of our financial instruments are shown in the following table (in millions). The carrying values of cash and cash equivalents, accounts receivable and accounts payable, accruals and other liabilities are deemed to be reasonable estimates of their fair values.

	Carrying Value				Fair Value
	September 30, 2011		December 31, 2010		September 30, 2011		December 31, 2010
Investments in fixed maturity securities	$	34,048	$	34,883	$	34,048	$	34,883
Investments in equity securities		68,062		61,513		68,062		61,513
Other investments		20,519		23,009		21,555		24,147
Loans and finance receivables		14,003		15,226		13,335		14,453
Derivative contract assets (1)		278		574		278		574
Notes payable and other borrowings:
Insurance and other		13,748		12,471		14,200		12,705
Railroad, utilities and energy		32,644		31,626		37,289		33,932
Finance and financial products		14,092		14,477		14,934		15,191
Derivative contract liabilities:
Railroad, utilities and energy (2)		492		621		492		621
Finance and financial products		10,421		8,371		10,421		8,371

(1) Included in Other assets

(2) Included in Accounts payable, accruals and other liabilities

Financial assets and liabilities measured and carried at fair value on a recurring basis in the financial statements

Financial assets and liabilities measured and carried at fair value on a recurring basis in our financial statements are summarized, according to the hierarchy previously described, as follows (in millions).

	Total Fair Value		Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2011
Investments in fixed maturity securities:
U.S. Treasury, U.S. government corporations and agencies	$	2,292	$	686	$	1,603	$	3
States, municipalities and political subdivisions		3,154		—		3,153		1
Foreign governments		13,196		5,765		7,309		122
Corporate bonds		12,601		—		11,947		654
Mortgage-backed securities		2,805		—		2,805		—
Investments in equity securities		68,062		67,964		82		16
Other investments		15,276		—		3,300		11,976
Net derivative contract (assets)/liabilities:
Railroad, utilities and energy		413		18		188		207
Finance and financial products:
Equity index put options		8,849		—		—		8,849
Credit default obligations		1,324		—		—		1,324
Other		49		—		26		23

	Total Fair Value		Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2010
Investments in fixed maturity securities:
U.S. Treasury, U.S. government corporations and agencies	$	2,197	$	535	$	1,658	$	4
States, municipalities and political subdivisions		3,581		—		3,581		—
Foreign governments		11,912		5,633		6,167		112
Corporate bonds		14,054		23		13,346		685
Mortgage-backed securities		3,139		—		3,139		—
Investments in equity securities		61,513		61,390		88		35
Other investments		17,589		—		—		17,589
Net derivative contract (assets)/liabilities:
Railroad, utilities and energy		390		7		52		331
Finance and financial products:
Equity index put options		6,712		—		—		6,712
Credit default obligations		1,239		—		—		1,239
Other		77		—		137		(60	)

Reconciliations of assets and liabilities measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3)

Reconciliations of assets and liabilities measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) for the first nine months ended September 30, 2011 and 2010 follow (in millions).

	Investments in fixed maturity securities			Investments in equity securities			Other investments			Net derivative contract liabilities
Balance at December 31, 2009	$	918		$	304		$	18,562		$	(9,196	)
Gains (losses) included in:
Earnings		—			—			—			(1,914	)
Other comprehensive income		30			(22	)		(610	)		—
Regulatory assets and liabilities		—			—			—			(35	)
Purchases, sales, issuances and settlements		(1	)		(1	)		—			130
Transfers into (out of) Level 3		(140	)		(260	)		—			3
Balance at September 30, 2010	$	807		$	21		$	17,952		$	(11,012	)
Balance at December 31, 2010	$	801		$	35		$	17,589		$	(8,222	)
Gains (losses) included in:
Earnings		—			—			—			(2,244	)
Other comprehensive income		7			(19	)		(1,813	)		—
Regulatory assets and liabilities		—			—			—			87
Acquisitions		6			—			5,000			(51	)
Dispositions		(34	)		—			—			26
Transfers into (out of) Level 3		—			—			(8,800	)		1
Balance at September 30, 2011	$	780		$	16		$	11,976		$	(10,403	)