CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES

The fair values of cash, cash equivalents, and marketable securities measured at fair value on a recurring basis on our balance sheet were as follows (in millions):



		December 31, 2017
	Fair Value Level	Automotive		Mobility		Ford Credit		Consolidated
Cash and cash equivalents
U.S. government	1	$	913	$	—	$	—	$	913
U.S. government agencies	2	433		—		300		733
Non-U.S. government and agencies	2	—		—		703		703
Corporate debt	2	55		—		25		80
Total marketable securities classified as cash equivalents		1,401		—		1,028		2,429
Cash, time deposits, and money market funds		7,529		4		8,530		16,063
Total cash and cash equivalents		$	8,930	$	4	$	9,558	$	18,492

Marketable securities
U.S. government	1	$	5,580	$	—	$	966	$	6,546
U.S. government agencies	2	2,484		—		384		2,868
Non-U.S. government and agencies	2	5,270		—		660		5,930
Corporate debt	2	4,031		—		848		4,879
Equities (a)	1	138		—		—		138
Other marketable securities	2	51		—		23		74
Total marketable securities		$	17,554	$	—	$	2,881	$	20,435

		June 30, 2018
	Fair Value Level	Automotive		Mobility		Ford Credit		Consolidated
Cash and cash equivalents
U.S. government	1	$	8	$	—	$	10	$	18
U.S. government agencies	2	3		—		—		3
Non-U.S. government and agencies	2	210		—		587		797
Corporate debt	2	225		—		460		685
Total marketable securities classified as cash equivalents		446		—		1,057		1,503
Cash, time deposits, and money market funds		7,284		19		8,022		15,325
Total cash and cash equivalents		$	7,730	$	19	$	9,079	$	16,828

Marketable securities
U.S. government	1	$	2,949	$	—	$	404	$	3,353
U.S. government agencies	2	1,992		—		164		2,156
Non-U.S. government and agencies	2	6,322		—		1,045		7,367
Corporate debt	2	5,306		—		516		5,822
Equities (a)	1	558		—		—		558
Other marketable securities	2	235		—		157		392
Total marketable securities		$	17,362	$	—	$	2,286	$	19,648

__________

(a) Net unrealized gains/losses on equities were a $27 million loss and a $158 million gain at December 31, 2017 and June 30, 2018, respectively.

NOTE 7. CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES (Continued)

The cash equivalents and marketable securities accounted for as available-for-sale (“AFS”) debt securities on our balance sheet were as follows (in millions):



	December 31, 2017
										Fair Value of Securities with Contractual Maturities
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Within 1 Year		After 1 Year through 5 Years		After 5 Years
Automotive
U.S. government	$	3,669	$	—	$	(18	)	$	3,651	$	1,377	$	2,274	$	—
U.S. government agencies	1,915		—		(15		)	1,900		265		1,620		15
Non-U.S. government and agencies	4,021		—		(28		)	3,993		197		3,771		25
Corporate debt	1,716		1		(8		)	1,709		194		1,509		6
Other marketable securities	17		—		—			17		—		16		1
Total	$	11,338	$	1	$	(69	)	$	11,270	$	2,033	$	9,190	$	47

	June 30, 2018
										Fair Value of Securities with Contractual Maturities
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Within 1 Year		After 1 Year through 5 Years		After 5 Years
Automotive
U.S. government	$	2,634	$	—	$	(21	)	$	2,613	$	1,777	$	836	$	—
U.S. government agencies	1,871		—		(26		)	1,845		309		1,518		18
Non-U.S. government and agencies	4,178		—		(63		)	4,115		6		4,109		—
Corporate debt	2,628		1		(33		)	2,596		190		2,404		2
Other marketable securities	200		—		(1		)	199		—		140		59
Total	$	11,511	$	1	$	(144	)	$	11,368	$	2,282	$	9,007	$	79

Sales proceeds and gross realized gains/(losses) from the sale of AFS debt securities prior to maturity, recorded in the income statement for the periods ended June 30 were as follows (in millions):



	Second Quarter				First Half
	2017		2018		2017		2018
Automotive
Sales proceeds	$	1,315	$	1,507	$	2,616	$	2,846
Gross realized gains	2		1		3		1
Gross realized losses	6		5		8		11

NOTE 7. CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES (Continued)

The present fair values and gross unrealized losses for cash equivalents and marketable securities accounted for as AFS debt securities that were in an unrealized loss position, aggregated by investment category and the length of time that individual securities have been in a continuous loss position, were as follows (in millions):



	December 31, 2017
	Less than 1 year					1 Year or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses

Automotive
U.S. government	$	2,382	$	(9	)	$	903	$	(9	)	$	3,285	$	(18	)
U.S. government agencies	1,625		(12		)	260		(3		)	1,885		(15		)
Non-U.S. government and agencies	3,148		(20		)	510		(8		)	3,658		(28		)
Corporate debt	1,396		(8		)	—		—			1,396		(8		)
Total	$	8,551	$	(49	)	$	1,673	$	(20	)	$	10,224	$	(69	)

	June 30, 2018
	Less than 1 year					1 Year or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Automotive
U.S. government	$	544	$	(5	)	$	1,968	$	(16	)	$	2,512	$	(21	)
U.S. government agencies	966		(14		)	848		(12		)	1,814		(26		)
Non-U.S. government and agencies	2,450		(43		)	1,120		(20		)	3,570		(63		)
Corporate debt	2,033		(29		)	190		(4		)	2,223		(33		)
Other marketable securities	156		(1		)	—		—			156		(1		)
Total	$	6,149	$	(92	)	$	4,126	$	(52	)	$	10,275	$	(144	)

We determine other-than-temporary impairments on cash equivalents and marketable securities using a specific identification method. During the six months ended June 30, 2017 and 2018, we did not recognize any other-than-temporary impairment loss.

Cash, Cash Equivalents, and Restricted Cash

Cash, cash equivalents, and restricted cash as reported in the consolidated statement of cash flows are presented separately on our consolidated balance sheet as follows (in millions):



	December 31, 2017		June 30, 2018
Cash and cash equivalents	$	18,492	$	16,828
Restricted cash (a)	146		193
Total cash, cash equivalents, and restricted cash	$	18,638	$	17,021

__________


(a)	Included in Other assets in the non-current assets section of our consolidated balance sheet.

Other Securities

We have investments in entities for which we do not have the ability to exercise significant influence and fair values are not readily available. We have elected to record these investments at cost (less impairment, if any), adjusted for observable price changes in orderly transactions for the identical or a similar investment of the same issuer. We report the carrying value of these investments in Other assets in the non-current assets section of our consolidated balance sheet. These investments were $363 million and $188 million at December 31, 2017 and June 30, 2018, respectively. There were no material adjustments to the fair values of these investments held at June 30, 2018.