Money market funds, debt investments and mutual funds are stated at fair value, which is generally based on market prices or broker quotes. We classify all debt investments as available-for-sale. See Fair-value considerations. Unrealized gains and losses are recorded as an increase or decrease, net of taxes, in AOCI on our Consolidated Balance Sheets, and any credit losses are recorded as an allowance for credit losses with an offset recognized in OI&E in our Consolidated Statements of Income.

Our mutual funds hold a variety of debt and equity investments intended to generate returns that offset changes in certain deferred compensation liabilities. We record changes in the fair value of these mutual funds and the related deferred compensation liabilities in SG&A.

Our other investments include equity-method investments and non-marketable investments, which are not measured at fair value. These investments consist of interests in venture capital funds and other non-marketable securities. Gains and losses from equity-method investments are recognized in OI&E based on our ownership share of the investee’s financial results.

Non-marketable securities are measured at cost with adjustments for observable changes in price or impairments. Gains and losses on non-marketable investments are recognized in OI&E.

Details of our investments are as follows:


	December 31, 2022						December 31, 2021
	Cash and Cash Equivalents		Short-Term Investments		Long-Term Investments		Cash and Cash Equivalents		Short-Term Investments		Long-Term Investments
Measured at fair value:
Money market funds	$	1,238	$	—	$	—	$	1,824	$	—	$	—
Corporate obligations	276		1,535		—		1,060		1,070		—
U.S. government and agency securities	680		4,234		—		642		3,388		—
Non-U.S. government and agency securities	149		248		—		300		650		—
Mutual funds	—		—		11		—		—		16
Total	2,343		6,017		11		3,826		5,108		16

Other measurement basis:
Equity-method investments	—		—		18		—		—		42
Non-marketable investments	—		—		5		—		—		4
Cash on hand	707		—		—		805		—		—
Total	$	3,050	$	6,017	$	34	$	4,631	$	5,108	$	62

As of December 31, 2022 and 2021, unrealized gains and losses associated with our debt investments were not material. We did not recognize any credit losses related to debt investments in 2022, 2021 or 2020.

In 2022, 2021 and 2020, the proceeds from sales, redemptions and maturities of short-term debt investments were $13.66 billion, $8.48 billion and $5.29 billion, respectively. Gross realized gains and losses from these sales were not material.

In 2020, we entered into total return swaps to economically hedge the variability of certain deferred compensation obligations to employees. As a result, in 2020, we received proceeds of $253 million from the sale of investments in mutual funds that were previously being utilized to offset this exposure.

We measure and report certain financial assets and liabilities at fair value on a recurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

•Level 2 – Uses inputs other than Level 1 that are either directly or indirectly observable as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data. We utilize a third-party data service to provide Level 2 valuations. We verify these valuations for reasonableness relative to unadjusted quotes obtained from brokers or dealers based on observable prices for similar assets in active markets.

•Level 3 – Uses inputs that are unobservable, supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models that utilize management estimates of market participant assumptions. As of December 31, 2022 and 2021, we had no Level 3 assets or liabilities.

The following are our assets and liabilities that were accounted for at fair value on a recurring basis. These tables do not include cash on hand, assets held by our postretirement plans, or assets and liabilities that are measured at historical cost or any basis other than fair value.


	December 31, 2022						December 31, 2021
	Level 1		Level 2		Total		Level 1		Level 2		Total
Assets:
Money market funds	$	1,238	$	—	$	1,238	$	1,824	$	—	$	1,824
Corporate obligations	—		1,811		1,811		—		2,130		2,130
U.S. government and agency securities	4,914		—		4,914		3,629		401		4,030
Non-U.S. government and agency securities	—		397		397		—		950		950
Mutual funds	11		—		11		16		—		16
Total assets	$	6,163	$	2,208	$	8,371	$	5,469	$	3,481	$	8,950

Liabilities:
Deferred compensation	$	326	$	—	$	326	$	395	$	—	$	395
Total liabilities	$	326	$	—	$	326	$	395	$	—	$	395