Cash and cash equivalents represent highly liquid investments with maturities of three months or less from the date of acquisition and may include money market instruments, commercial paper, certificates of deposit, U.S. government and agency obligations, or similar instruments.

Restricted cash and cash equivalents include customer collections on securitized receivables to be distributed to investors as payments on the related secured notes and loans payable, which are primarily related to securitization trusts. Restricted cash equivalents may also contain proceeds from certain debt issuances for which the use of the cash is restricted.

Investments in marketable securities consist of debt securities and equity investments.

Debt securities are designated as available-for-sale (“AFS”) and are recorded at fair value with unrealized gains or losses included in accumulated other comprehensive income (“AOCI”), net of applicable taxes.

We adopted ASU 2016-13 on April 1, 2020, on a modified retrospective basis, as further described in Note 1 – Basis of Presentation and Significant Accounting Policies. Under the new guidance, once it is determined that a credit loss has occurred, an allowance for credit losses is established. Prior to the adoption of this standard, when a decline in fair value of a debt security was determined to be other-than-temporary, an impairment charge for the credit component was recorded in Investment and other income, net and a new cost basis in the investment was established. As of March 31, 2021, management determined that credit losses did not exist for securities in an unrealized loss position. This analysis considered a variety of factors including, but not limited to, performance indicators of the issuer, default rates, industry analyst reports, credit ratings, and other relevant information, which indicated that contractual cash flows are expected to occur.

All equity investments are recorded at fair value with changes in fair value included in Investment and other income, net in our Consolidated Statements of Income. Realized gains and losses from sales of equity investments are determined using the first in first out method and are included in Investment and other income, net within our Consolidated Statements of Income.

Note 2 – Cash and Cash Equivalents and Investments in Marketable Securities (Continued)

	March 31, 2021
	Amortized		Unrealized		Unrealized			Fair
	cost		gains		losses			value
Available-for-sale debt securities:
U.S. government and agency obligations	$	217	$	4	$	(10	)	$	211
Municipal debt securities		8		2		-			10
Commercial paper		196		-		-			196
Corporate debt securities		177		12		(2	)		187
Mortgage-backed securities:
U.S. government agency		31		1		-			32
Non-agency residential		1		-		-			1
Non-agency commercial		47		2		(2	)		47
Asset-backed securities		49		3		-			52
Total available-for-sale debt securities	$	726	$	24	$	(14	)	$	736
Equity investments									4,084
Total investments in marketable securities								$	4,820

	March 31, 2020
	Amortized		Unrealized		Unrealized			Fair
	cost		gains		losses			value
Available-for-sale debt securities:
U.S. government and agency obligations	$	160	$	16	$	-		$	176
Municipal debt securities		9		2		-			11
Certificates of deposit		250		-		(1	)		249
Commercial paper		604		-		(3	)		601
Corporate debt securities		188		10		(1	)		197
Mortgage-backed securities:
U.S. government agency		47		2		-			49
Non-agency residential		1		-		-			1
Non-agency commercial		47		-		(2	)		45
Asset-backed securities		75		-		(3	)		72
Total available-for-sale debt securities	$	1,381	$	30	$	(10	)	$	1,401
Equity investments									2,419
Total investments in marketable securities								$	3,820

A portion of our equity investments are investments in funds that are privately placed and managed by an open-end investment management company (the “Trust”). If we elect to redeem shares, the Trust will normally redeem all shares for cash, but may, in unusual circumstances, redeem amounts exceeding the lesser of $250 thousand or 1 percent of the Trust’s asset value by payment in kind of securities held by the respective fund during any 90-day period.

We also invest in actively traded open-end mutual funds. Redemptions are subject to normal terms and conditions as described in each fund’s prospectus.

Available-for-sale debt securities in a continuous loss position for less than twelve months and greater than twelve months were not significant as of March 31, 2021 and 2020.

Note 2 – Cash and Cash Equivalents and Investments in Marketable Securities (Continued)

The following table represents gains and losses on our investments in marketable securities presented in our Consolidated Statements of Income:


	Years ended March 31,
	2021		2020			2019
Available-for-sale debt securities:
Realized gains (losses)	$	20	$	9		$	(12	)
Other-than-temporary impairment			$	(8	)	$	-

Equity investments:
Unrealized gains recognized	$	114	$	41		$	14
Realized gains on sales	$	15	$	5		$	-

The amortized cost and fair value by contractual maturities of available-for-sale debt securities are summarized in the following table. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations.

	March 31, 2021
	Amortized cost		Fair value
Available-for-sale debt securities:
Due within 1 year	$	232	$	232
Due after 1 year through 5 years		133		139
Due after 5 years through 10 years		153		156
Due after 10 years		80		77
Mortgage-backed and asset-backed securities ¹		128		132
Total	$	726	$	736