Fair value measurements (Tables)

3 Months Ended

Mar. 31, 2019

Financial assets and liabilities measured at fair value on a recurring basis

Our financial assets and liabilities are summarized below as of March 31, 2019 and December 31, 2018, with fair values shown according to the fair value hierarchy (in millions). The carrying values of cash and cash equivalents, U.S. Treasury Bills, receivables and accounts payable, accruals and other liabilities are considered to be reasonable estimates of their fair values.


	Carrying Value		Fair Value		Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
March 31, 2019
Investments in fixed maturity securities:
U.S. Treasury, U.S. government corporations and agencies	$	3,918	$	3,918	$	2,846	$	1,072	$	—
States, municipalities and political subdivisions		151		151		—		151		—
Foreign governments		8,091		8,091		5,840		2,251		—
Corporate bonds		6,724		6,724		—		6,720		4
Mortgage-backed securities		531		531		—		531		—
Investments in equity securities		191,771		191,771		191,420		50		301
Investment in Kraft Heinz common stock		13,686		10,626		10,626		—		—
Loans and finance receivables		16,432		16,459		—		1,641		14,818
Derivative contract assets ⁽¹⁾		171		171		—		52		119
Derivative contract liabilities:
Railroad, utilities and energy ⁽¹⁾		99		99		1		83		15
Equity index put options		1,682		1,682		—		—		1,682
Notes payable and other borrowings:
Insurance and other		33,847		35,242		—		35,216		26
Railroad, utilities and energy		63,346		69,937		—		69,937		—

December 31, 2018
Investments in fixed maturity securities:
U.S. Treasury, U.S. government corporations and agencies	$	4,223	$	4,223	$	2,933	$	1,290	$	—
States, municipalities and political subdivisions		189		189		—		189		—
Foreign governments		7,502		7,502		5,417		2,085		—
Corporate bonds		7,440		7,440		—		7,434		6
Mortgage-backed securities		544		544		—		544		—
Investments in equity securities		172,757		172,757		172,253		203		301
Investment in Kraft Heinz common stock		13,813		14,007		14,007		—		—
Loans and finance receivables		16,280		16,377		—		1,531		14,846
Derivative contract assets ⁽¹⁾		172		172		2		52		118
Derivative contract liabilities:
Railroad, utilities and energy ⁽¹⁾		111		111		1		101		9
Equity index put options		2,452		2,452		—		—		2,452
Notes payable and other borrowings:
Insurance and other		34,975		35,361		—		35,335		26
Railroad, utilities and energy		62,515		66,422		—		66,422		—

⁽¹⁾

Assets are included in other assets and liabilities are included in accounts payable, accruals and other liabilities.

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

Reconciliations of significant assets and liabilities measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) for the three months ended March 31, 2019 and 2018 follow (in millions).


	Net derivative contract liabilities
Three months ending March 31, 2019
Balance at December 31, 2018	$	(2,343	)
Gains (losses) included in:
Earnings		820
Other comprehensive income		—
Regulatory assets and liabilities		(11	)
Acquisitions, dispositions and settlements		(44	)
Transfers into/out of Level 3		—

Balance at March 31, 2019	$	(1,578	)

Three months ending March 31, 2018
Balance at December 31, 2017	$	(2,069	)
Gains (losses) included in:
Earnings		(176	)
Other comprehensive income		(1	)
Regulatory assets and liabilities		(9	)
Acquisitions, dispositions and settlements		(26	)

Balance at March 31, 2018	$	(2,281	)

Fair value assets and liabilities measured on recurring basis, unobservable inputs, additional information

Quantitative information as of March 31, 2019, with respect to assets and liabilities measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) follows (in millions).

Fair
Value

Principal Valuation
Techniques

Unobservable Inputs

Weighted
Average

Derivative contract liabilities – Equity index put options

1,682

Option pricing model

Volatility