Fair value measurements (Tables)

6 Months Ended

Jun. 30, 2019

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

Our financial assets and liabilities are summarized below as of June 30, 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)
June 30, 2019
Investments in fixed maturity securities:
U.S. Treasury, U.S. government corporations and agencies	$	4,584	$	4,584	$	2,972	$	1,612	$	—
States, municipalities and political subdivisions		160		160		—		160		—
Foreign governments		7,965		7,965		5,788		2,177		—
Corporate bonds		6,744		6,744		—		6,741		3
Mortgage-backed securities		509		509		—		509		—
Investments in equity securities		200,516		200,516		200,165		50		301
Investment in Kraft Heinz common stock		13,522		10,102		10,102		—		—
Loans and finance receivables		16,807		16,969		—		1,697		15,272
Derivative contract assets ⁽¹⁾		150		150		—		19		131
Derivative contract liabilities:
Railroad, utilities and energy ⁽¹⁾		120		120		4		94		22
Equity index put options		1,470		1,470		—		—		1,470
Notes payable and other borrowings:
Insurance and other		36,025		38,453		—		38,428		25
Railroad, utilities and energy		63,882		72,862		—		72,862		—
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 six months ended June 30, 2019 and 2018 follow (in millions).

				Gains (losses) included in:
	Balance – beginning of year			Earnings		Other comprehensive income			Regulatory assets and liabilities			Acquisitions, dispositions and settlements			Transfers into/out of Level 3		Balance – June 30
Net derivative contract assets (liabilities):
2019	$	(2,343	)	$	1,134	$	(1	)	$	(23	)	$	(128	)	$	—	$	(1,361	)
2018		(2,069	)		256		—			(14	)		(79	)		—		(1,906	)

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

Quantitative information as of June 30, 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

1,470

Option pricing model

Volatility