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Financial Instruments
6 Months Ended
Jun. 30, 2021
Investments, Debt and Equity Securities [Abstract]  
Financial Instruments Financial Instruments
Cash and Cash Equivalents and Investments

The following tables summarize our cash and available-for-sale securities by significant investment category at June 30, 2021 and December 31, 2020 (in millions):
June 30, 2021
Amortized
Cost
Unrealized
Gains
Unrealized
Losses
Estimated Fair ValueCash and
Cash
Equivalents
Current
Marketable
Securities
Non-
Current
Marketable
Securities
Cash and cash equivalents$5,603 $— $— $5,603 $5,603 $— $— 
Available-for-sale:
Certificates of deposit50 — — 50 — 50 — 
U.S. treasury bills87 — — 87 — 87 — 
U.S. treasury notes4,349 — (3)4,346 — 1,411 2,935 
Corporate debt securities2,113 (3)2,111 — 839 1,272 
$12,202 $$(6)$12,197 $5,603 $2,387 $4,207 
December 31, 2020
Amortized
Cost
Unrealized
Gains
Unrealized
Losses
Estimated Fair ValueCash and
Cash
Equivalents
Current
Marketable
Securities
Non-
Current
Marketable
Securities
Cash and cash equivalents$2,624 $— $— $2,624 $2,624 $— $— 
Available-for-sale:
Certificates of deposit239 — — 239 — 215 24 
U.S. treasury bills492 — — 492 — 492 — 
U.S. treasury notes87 — — 87 — 38 49 
Corporate debt securities1,801 — 1,805 — 1,239 566 
$5,243 $$— $5,247 $2,624 $1,984 $639 

The amortized cost and estimated fair value of marketable securities by contractual maturity at June 30, 2021 and December 31, 2020 were as follows (in millions):
June 30, 2021
Amortized
Cost
Estimated
Fair Value
Due in one year or less$2,386 $2,387 
Due after one year through five years4,213 4,207 
Total$6,599 $6,594 

December 31, 2020
Amortized
Cost
Estimated
Fair Value
Due in one year or less$1,981 $1,984 
Due after one year through five years638 639 
Total$2,619 $2,623 

In accordance with our investment policy, we place investments in investment grade securities with high credit quality issuers, and generally limit the amount of credit exposure to any one issuer. We evaluate securities for impairment at the end of each reporting period. Impairment is evaluated considering numerous factors, and their relative significance varies depending on the situation. Factors considered include whether a decline in fair value below the amortized cost basis is due to credit-related factors or noncredit-related factors, the financial condition and near-term prospects of the issuer, and our intent and ability to hold the investment to allow for an anticipated recovery in fair value. Any impairment that is not credit related is recognized in other comprehensive loss, net of
applicable taxes. A credit-related impairment is recognized as an allowance on the balance sheet with a corresponding adjustment to earnings. We did not recognize any impairment charges related to available-for-sale securities for the three and six months ended June 30, 2021 and 2020. We did not recognize any credit-related allowance to available-for-sale securities as of June 30, 2021 and December 31, 2020.

As of June 30, 2021 and December 31, 2020, we did not have material gross unrealized losses. We neither intend to sell these investments, nor do we believe that we are more-likely-than-not to conclude we will have to sell them before recovery of their carrying values. We also believe that we will be able to collect both principal and interest amounts due to us at maturity.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used to value the assets and liabilities:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2: Quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; or
Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

The following tables summarize our financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020 (in millions):
Fair value at June 30, 2021Fair Value Measurement Using
Level 1Level 2
Assets:
Money market funds$3,838 $3,838 $— 
Certificates of deposit50 — 50 
U.S. treasury bills87 — 87 
U.S. treasury notes4,346 — 4,346 
Corporate debt securities2,111 — 2,111 
Derivative instruments (Note 7)30 — 30 
Total$10,462 $3,838 $6,624 
Liabilities:
Derivative instruments (Note 7)$$— $

Fair value at December 31, 2020Fair Value Measurement Using
Level 1Level 2
Assets:
Money market funds$660 $660 $— 
Certificates of deposit239 — 239 
U.S. treasury bills492 — 492 
U.S. treasury notes87 — 87 
Corporate debt securities1,805 — 1,805 
Total$3,283 $660 $2,623 
As of June 30, 2021 and December 31, 2020, we did not have non-financial assets or liabilities measured at fair value on a recurring basis and did not have any Level 3 financial assets or financial liabilities.