Fair Value Measurements
Assets and liabilities recorded at fair value in the Consolidated Balance Sheets are categorized based upon observable or unobservable inputs used to estimate fair value. Level inputs are as follows:
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| Level Input: | | Input Definition: |
| Level I | | Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. |
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| Level II | | Inputs other than quoted prices included in Level I that are observable for the asset or liability through corroboration with market data at the measurement date. |
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| Level III | | Unobservable inputs that reflect management's best estimate of what market participants would use in pricing the asset or liability at the measurement date. |
The following table summarizes fair value measurements by level at December 31, 2025, for assets and liabilities measured at fair value on a recurring basis ($ in millions):
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| | Level I | | Level II | | Level III | | Total |
| Assets | | | | | | | |
| Cash and cash equivalents | $ | 17,888 | | | $ | — | | | $ | — | | | $ | 17,888 | |
| Investments: | | | | | | | |
| U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 55 | | | $ | — | | | $ | — | | | $ | 55 | |
| Corporate securities | — | | | 10,652 | | | — | | | 10,652 | |
| Municipal securities | — | | | 2,906 | | | — | | | 2,906 | |
| Short-term time deposits | — | | | 205 | | | — | | | 205 | |
| Asset-backed securities | — | | | 1,666 | | | — | | | 1,666 | |
| Residential mortgage-backed securities | — | | | 1,714 | | | — | | | 1,714 | |
| Commercial mortgage-backed securities | — | | | 1,136 | | | — | | | 1,136 | |
| Equity securities | — | | | 1 | | | — | | | 1 | |
| Total investments | $ | 55 | | | $ | 18,280 | | | $ | — | | | $ | 18,335 | |
| Restricted deposits: | | | | | | | |
| Cash and cash equivalents | $ | 69 | | | $ | — | | | $ | — | | | $ | 69 | |
| U.S. Treasury securities and obligations of U.S. government corporations and agencies | 480 | | | — | | | — | | | 480 | |
| Corporate securities | — | | | 10 | | | — | | | 10 | |
| Certificates of deposit | — | | | 1 | | | — | | | 1 | |
| Municipal securities | — | | | 852 | | | — | | | 852 | |
| Total restricted deposits | $ | 549 | | | $ | 863 | | | $ | — | | | $ | 1,412 | |
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| Total assets at fair value | $ | 18,492 | | | $ | 19,143 | | | $ | — | | | $ | 37,635 | |
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The following table summarizes fair value measurements by level at December 31, 2024, for assets and liabilities measured at fair value on a recurring basis ($ in millions):
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| | Level I | | Level II | | Level III | | Total |
| Assets | | | | | | | |
| Cash and cash equivalents | $ | 14,063 | | | $ | — | | | $ | — | | | $ | 14,063 | |
| Investments: | | | | | | | |
| U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 58 | | | $ | — | | | $ | — | | | $ | 58 | |
| Corporate securities | — | | | 10,505 | | | — | | | 10,505 | |
| Municipal securities | — | | | 3,272 | | | — | | | 3,272 | |
| Short-term time deposits | — | | | 425 | | | — | | | 425 | |
| Asset-backed securities | — | | | 1,812 | | | — | | | 1,812 | |
| Residential mortgage-backed securities | — | | | 1,679 | | | — | | | 1,679 | |
| Commercial mortgage-backed securities | — | | | 1,239 | | | — | | | 1,239 | |
| Equity securities | 13 | | | 1 | | | — | | | 14 | |
| Total investments | $ | 71 | | | $ | 18,933 | | | $ | — | | | $ | 19,004 | |
| Restricted deposits: | | | | | | | |
| Cash and cash equivalents | $ | 93 | | | $ | — | | | $ | — | | | $ | 93 | |
| U.S. Treasury securities and obligations of U.S. government corporations and agencies | 533 | | | — | | | — | | | 533 | |
| Corporate securities | — | | | 2 | | | — | | | 2 | |
| Certificates of deposit | — | | | 4 | | | — | | | 4 | |
| Municipal securities | — | | | 758 | | | — | | | 758 | |
| Total restricted deposits | $ | 626 | | | $ | 764 | | | $ | — | | | $ | 1,390 | |
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| Total assets at fair value | $ | 14,760 | | | $ | 19,697 | | | $ | — | | | $ | 34,457 | |
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The Company utilizes matrix pricing services to estimate fair value for securities which are not actively traded on the measurement date. The Company designates these securities as Level II fair value measurements. In addition, the aggregate carrying amount of the Company's private equity investments and life insurance contracts, which approximates fair value, was $1,132 million and $1,047 million as of December 31, 2025 and December 31, 2024, respectively.
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.