FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2015

Financial Assets Measured at Fair Value on Recurring Basis

The following table summarizes our fair value measurements at March 31, 2015 and December 31, 2014, respectively, for financial assets measured at fair value on a recurring basis:



	Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
	(in millions)
March 31, 2015
Cash equivalents	$	1,779	$	1,779	$	—	$	—
Debt securities:
U.S. Treasury and other U.S. government corporations and agencies:
U.S. Treasury and agency obligations	366		—		366		—
Mortgage-backed securities	1,758		—		1,758		—
Tax-exempt municipal securities	2,756		—		2,750		6
Mortgage-backed securities:
Residential	16		—		16		—
Commercial	891		—		891		—
Asset-backed securities	139		—		138		1
Corporate debt securities	3,646		—		3,641		5
Total debt securities	9,572		—		9,560		12
Total invested assets	$	11,351	$	1,779	$	9,560	$	12

December 31, 2014
Cash equivalents	$	1,712	$	1,712	$	—	$	—
Debt securities:
U.S. Treasury and other U.S. government corporations and agencies:
U.S. Treasury and agency obligations	374		—		374		—
Mortgage-backed securities	1,498		—		1,498		—
Tax-exempt municipal securities	3,068		—		3,060		8
Mortgage-backed securities:
Residential	17		—		17		—
Commercial	843		—		843		—
Asset-backed securities	29		—		28		1
Corporate debt securities	3,718		—		3,695		23
Total debt securities	9,547		—		9,515		32
Total invested assets	$	11,259	$	1,712	$	9,515	$	32

Changes in Fair Value of Assets Measured Using Significant Unobservable Inputs

During the three months ended March 31, 2015 and 2014, the changes in the fair value of the assets measured using significant unobservable inputs (Level 3) were comprised of the following:



	For the three months ended March 31,
	2015									2014
	Private Placements			Auction Rate Securities			Total			Private Placements		Auction Rate Securities		Total
	(in millions)
Beginning balance at January 1	$	24		$	8		$	32		$	24	$	13	$	37
Total gains or losses:
Realized in earnings	—			—			—			—		—		—
Unrealized in other comprehensive income	—			—			—			—		—		—
Purchases	—			—			—			—		—		—
Sales	(18		)	(2		)	(20		)	—		—		—
Settlements	—			—			—			—		—		—
Balance at March 31	$	6		$	6		$	12		$	24	$	13	$	37

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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