Investments and Restricted Cash and Cash Equivalents and Investments

Investments and restricted cash and cash equivalents and investments consists of the following (in millions):



	As of
	September 30,		December 31,
	2018		2017
Investments:
BYD Company Limited common stock	$	1,616	$	1,961
Rabbi trusts	398		441
Other	186		124
Total investments	2,200		2,526

Equity method investments:
BHE Renewables tax equity investments	1,221		1,025
Electric Transmission Texas, LLC	530		524
Bridger Coal Company	116		137
Other	163		148
Total equity method investments	2,030		1,834

Restricted cash and cash equivalents and investments:
Quad Cities Station nuclear decommissioning trust funds	543		515
Restricted cash and cash equivalents	385		348
Total restricted cash and cash equivalents and investments	928		863

Total investments and restricted cash and cash equivalents and investments	$	5,158	$	5,223

Reflected as:
Current assets	$	404	$	351
Noncurrent assets	4,754		4,872
Total investments and restricted cash and cash equivalents and investments	$	5,158	$	5,223

Investments

In January 2016, the FASB issued ASU 2016-01 which amended FASB ASC Subtopic 825-10, "Financial Instruments - Overall." The amendments in this guidance addressed certain aspects of recognition, measurement, presentation and disclosure of financial instruments including a requirement that all investments in equity securities that do not qualify for equity method accounting or result in consolidation of the investee be measured at fair value with changes in fair value recognized in net income. The Company adopted this guidance effective January 1, 2018 with a cumulative-effect increase to retained earnings of $1,085 million and a corresponding decrease to accumulated other comprehensive income (loss) ("AOCI").

The portion of unrealized losses related to investments still held as of September 30, 2018 is calculated as follows (in millions):



	Three-Month Period		Nine-Month Period
	Ended September 30,		Ended September 30,
	2018		2018
Gains (losses) on marketable securities recognized during the period	$	260	$	(336	)
Less: Net gains recognized during the period on marketable securities sold during the period	—		1
Unrealized gains (losses) recognized during the period on marketable securities still held at the reporting date	$	260	$	(337	)

Equity Method Investments

In August 2016, the FASB issued ASU No. 2016-15, which amends FASB ASC Topic 230, "Statement of Cash Flows." The amendments in this guidance address the classification of eight specific cash flow issues within the statement of cash flows with the objective of reducing the existing diversity in practice. The Company adopted this guidance retrospectively effective January 1, 2018 which resulted in the reclassification of certain cash distributions received from equity method investees of $26 million previously recognized within investing cash flows to operating cash flows for the nine-month period ended September 30, 2017.

Cash and Cash Equivalents and Restricted Cash and Cash Equivalents

In November 2016, the FASB issued ASU No. 2016-18, which amends FASB ASC Subtopic 230-10, "Statement of Cash Flows - Overall." The amendments in this guidance require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash and restricted cash equivalents. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company adopted this guidance January 1, 2018.

Cash equivalents consist of funds invested in money market mutual funds, United States Treasury Bills and other investments with a maturity of three months or less when purchased. Cash and cash equivalents exclude amounts where availability is restricted by legal requirements, loan agreements or other contractual provisions. Restricted cash and cash equivalents as of September 30, 2018 and December 31, 2017, consist substantially of funds restricted for the purpose of constructing solid waste facilities under tax-exempt bond obligation agreements and debt service obligations for certain of the Company's nonregulated renewable energy projects. A reconciliation of cash and cash equivalents and restricted cash and cash equivalents as of September 30, 2018 and December 31, 2017, as presented in the Consolidated Statements of Cash Flows is outlined below and disaggregated by the line items in which they appear on the Consolidated Balance Sheets (in millions):



	As of
	September 30,		December 31,
	2018		2017
Cash and cash equivalents	$	1,016	$	935
Restricted cash and cash equivalents	358		327
Investments and restricted cash and cash equivalents and investments	28		21
Total cash and cash equivalents and restricted cash and cash equivalents	$	1,402	$	1,283