Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2016

Assets measured at fair value on a recurring basis are summarized below (in millions):


	Fair Value Measurements as of December 31, 2016
	Total		Level 1		Level 2		Level 3
Short-term investments ⁽¹⁾, ⁽²⁾:
Money market funds	$	589	$	589	$	—	$	—
Corporate obligations		2,550		—		2,550		—
Bank notes/certificates of deposit/time deposits		2,898		—		2,898		—

		6,037		589		5,448		—
Restricted cash and short-term investments ⁽¹⁾		638		638		—		—

Total	$	6,675	$	1,227	$	5,448	$	—

⁽¹⁾	Unrealized gains or losses on short-term investments and restricted cash and short-term investments are recorded in accumulated other comprehensive income (loss) at each measurement date.

⁽²⁾	All short-term investments are classified as available-for-sale and stated at fair value. Our short-term investments mature in one year or less except for $385 million of bank notes/certificates of deposit/time deposits and $230 million of corporate obligations.


	Fair Value Measurements as of December 31, 2015
	Total		Level 1		Level 2		Level 3
Short-term investments ⁽¹⁾, ⁽²⁾:
Money market funds	$	1,010	$	1,010	$	—	$	—
Government agency investments		1		—		1		—
Corporate obligations		2,191		—		2,191		—
Bank notes/certificates of deposit/time deposits		2,662		—		2,662		—

		5,864		1,010		4,854		—
Restricted cash and short-term investments ⁽¹⁾		695		695		—		—

Total	$	6,559	$	1,705	$	4,854	$	—

⁽¹⁾	Unrealized gains or losses on short-term investments and restricted cash and short-term investments are recorded in accumulated other comprehensive income (loss) at each measurement date.

⁽²⁾	All short-term investments are classified as available-for-sale and stated at fair value. Our short-term investments mature in one year or less except for $1.2 billion of bank notes/certificates of deposit/time deposits and $734 million of corporate obligations.

The carrying value and estimated fair value of our long-term debt, including current maturities, were as follows (in millions):


	December 31, 2016				December 31, 2015
	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term debt, including current maturities	$	24,344	$	24,983	$	20,561	$	21,111

Assets measured at fair value on a recurring basis are summarized below (in millions):


	Fair Value Measurements as of December 31, 2016
	Total		Level 1		Level 2		Level 3
Short-term investments ⁽¹⁾, ⁽²⁾:
Money market funds	$	587	$	587	$	—	$	—
Corporate obligations		2,550		—		2,550		—
Bank notes/certificates of deposit/time deposits		2,897		—		2,897		—

		6,034		587		5,447		—
Restricted cash and short-term investments ⁽¹⁾		638		638		—		—

Total	$	6,672	$	1,225	$	5,447	$	—

⁽¹⁾	Unrealized gains or losses on short-term investments and restricted cash and short-term investments are recorded in accumulated other comprehensive income (loss) at each measurement date.

⁽²⁾	All short-term investments are classified as available-for-sale and stated at fair value. American’s short-term investments mature in one year or less except for $385 million of bank notes/certificates of deposit/time deposits and $230 million of corporate obligations.


	Fair Value Measurements as of December 31, 2015
	Total		Level 1		Level 2		Level 3
Short-term investments ⁽¹⁾, ⁽²⁾:
Money market funds	$	1,008	$	1,008	$	—	$	—
Government agency investments		1		—		1		—
Corporate obligations		2,191		—		2,191		—
Bank notes/certificates of deposit/time deposits		2,662		—		2,662		—

		5,862		1,008		4,854		—
Restricted cash and short-term investments ⁽¹⁾		695		695		—		—

Total	$	6,557	$	1,703	$	4,854	$	—

⁽¹⁾	Unrealized gains or losses on short-term investments and restricted cash and short-term investments are recorded in accumulated other comprehensive income (loss) at each measurement date.

⁽²⁾	All short-term investments are classified as available-for-sale and stated at fair value. American’s short-term investments mature in one year or less except for $1.2 billion of bank notes/certificates of deposit/time deposits and $734 million of corporate obligations.

The carrying value and estimated fair value of American’s long-term debt, including current maturities, were as follows (in millions):


	December 31, 2016				December 31, 2015
	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term debt, including current maturities	$	22,577	$	23,181	$	18,826	$	19,378