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Fair Value Measurements
3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements
14. Fair Value Measurements

The accounting policies of our fair value measurements are the same as those disclosed in Note 3 and Note 19 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report.

The following table presents the carrying amounts and estimated fair values of our financial instruments and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:

Fair Value Measurements UsingTotal
Fair
Value
Total
Carrying
Value
(dollars in millions)Level 1Level 2Level 3
March 31, 2021
Assets
Cash and cash equivalents$1,298 $3 $ $1,301 $1,301 
Investment securities52 1,891 8 1,951 1,951 
Net finance receivables, less allowance for finance receivable losses
  18,447 18,447 15,502 
Restricted cash and restricted cash equivalents 571   571 571 
Other assets *
 3 57 60 60 
Liabilities
Long-term debt $ $18,082 $ $18,082 $16,789 
December 31, 2020
Assets
Cash and cash equivalents$2,255 $17 $— $2,272 $2,272 
Investment securities44 1,870 1,922 1,922 
Net finance receivables, less allowance for finance receivable losses
— — 18,629 18,629 15,815 
Restricted cash and restricted cash equivalents 451 — — 451 451 
Other assets *
— 60 62 62 
Liabilities
Long-term debt$— $19,426 $— $19,426 $17,800 
*Other assets at March 31, 2021 and December 31, 2020 primarily consists of finance receivables held for sale.
FAIR VALUE MEASUREMENTS — RECURRING BASIS

The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value:

Fair Value Measurements UsingTotal Carried At Fair Value
(dollars in millions)Level 1Level 2Level 3
March 31, 2021    
Assets    
Cash equivalents in mutual funds$881 $ $ $881 
Cash equivalents in securities 3  3 
Investment securities:    
Available-for-sale securities    
U.S. government and government sponsored entities 11  11 
Obligations of states, municipalities, and political subdivisions
 88  88 
Commercial paper 49  49 
Non-U.S. government and government sponsored entities 147  147 
Corporate debt5 1,223 6 1,234 
RMBS 195  195 
CMBS 56  56 
CDO/ABS 87  87 
Total available-for-sale securities5 1,856 6 1,867 
Other securities   
Bonds:   
Non-U.S. government and government sponsored entities 1  1 
Corporate debt 12 1 13 
RMBS 1  1 
CDO/ABS 21 1 22 
Total bonds 35 2 37 
Preferred stock18   18 
Common stock29   29 
Total other securities47 35 2 84 
Total investment securities52 1,891 8 1,951 
Restricted cash equivalents in mutual funds560   560 
Total$1,493 $1,894 $8 $3,395 
Fair Value Measurements UsingTotal Carried At Fair Value
(dollars in millions)Level 1Level 2Level 3
December 31, 2020    
Assets    
Cash equivalents in mutual funds$2,018 $— $— $2,018 
Cash equivalents in securities— 17 — 17 
Investment securities:    
Available-for-sale securities    
U.S. government and government sponsored entities— 12 — 12 
Obligations of states, municipalities, and political subdivisions
— 92 — 92 
Certificates of deposit and commercial paper
— 28 — 28 
Non-U.S. government and government sponsored entities— 146 — 146 
Corporate debt1,207 1,218 
RMBS— 215 — 215 
CMBS— 58 — 58 
CDO/ABS— 78 — 78 
Total available-for-sale securities1,836 1,847 
Other securities   
Bonds:    
Non-U.S. government and government sponsored entities— — 
Corporate debt— 16 17 
CDO/ABS— 17 — 17 
Total bonds— 34 35 
Preferred stock13 — — 13 
Common stock26 — 27 
Total other securities39 34 75 
Total investment securities44 1,870 1,922 
Restricted cash equivalents in mutual funds441 — — 441 
Total$2,503 $1,887 $$4,398 

Due to the insignificant activity within the Level 3 assets during the three months ended March 31, 2021 and 2020, we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs.

FAIR VALUE MEASUREMENTS — NON-RECURRING BASIS

We measure the fair value of certain assets on a non-recurring basis when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Net impairment charges recorded on assets measured at fair value on a non-recurring basis were immaterial during the three months ended March 31, 2021 and 2020.

FAIR VALUE MEASUREMENTS — VALUATION METHODOLOGIES AND ASSUMPTIONS

See Note 19 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report for information regarding our methods and assumptions used to estimate fair value.