Note 5
Cash and equivalents, marketable securities and short-term investments

Current assets

Cash and equivalents and marketable securities and short-term investments consisted of the following:

December 31, 2018 ($ in millions)

Cost basis

Gross unrealized gains

Gross unrealized losses

Fair value

Cash and equivalents

Marketable securities and short-term investments

(1)

See “New accounting pronouncements – Applicable for current period” in Note 2 for changes applicable in 2018.

Changes in fair value recorded in net income

 

 

 

 

Cash

1,983

 

 

1,983

1,983

 

Time deposits

1,463

 

 

1,463

1,462

1

Other short-term investments

206

 

 

206

 

206

Equity securities(1)

206

 

(3)

203

 

203

 

3,858

(3)

3,855

3,445

410

 

 

 

 

 

 

 

Changes in fair value recorded in other comprehensive income

Debt securities available-for-sale:

 

 

 

 

 

– U.S. government obligations

217

 

(3)

214

 

214

– Corporate

90

 

(2)

88

 

88

 

307

(5)

302

302

Total

4,165

(8)

4,157

3,445

712

December 31, 2017 ($ in millions)

Cost basis

Gross unrealized gains

Gross unrealized losses

Fair value

Cash and equivalents

Marketable securities and short-term investments

Changes in fair value recorded in net income

 

 

 

 

Cash

1,963

 

 

1,963

1,963

 

Time deposits

2,834

 

 

2,834

2,563

271

Other short-term investments

305

 

305

 

305

 

5,102

5,102

4,526

576

 

 

 

 

 

 

 

Changes in fair value recorded in other comprehensive income

Equity securities

152

13

 

165

 

165

Debt securities available-for-sale:

 

 

 

 

 

– U.S. government obligations

127

 

(2)

125

 

125

– Other government obligations

2

 

2

 

2

– Corporate

215

1

(1)

215

 

215

 

496

14

(3)

507

507

Total

5,598

14

(3)

5,609

4,526

1,083

Included in Other short-term investments at December 31, 2018 and 2017, are receivables of $206 million and $305 million, respectively, representing reverse repurchase agreements. These collateralized lendings, made to a financial institution, have maturity dates of less than one year.

Contractual maturities

Contractual maturities of debt securities consisted of the following:

 

Available-for-sale

December 31, 2018 ($ in millions)

Cost basis

Fair value

Less than one year

80

80

One to five years

166

163

Six to ten years

60

58

Due after ten years

1

1

Total

307

302

At December 31, 2018 and 2017, the Company pledged $68 million and $66 million, respectively, of available-for-sale marketable securities as collateral for issued letters of credit and other security arrangements.