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 nonmarketable investments, which are not measured at fair value. These investments consist of interests in venture capital funds and other nonmarketable securities. Gains and losses from equity-method investments are recognized in OI&E based on our ownership share of the investee’s financial results. Nonmarketable securities are measured at cost with adjustments for observable changes in price or impairments. Gains and losses on nonmarketable investments are recognized in OI&E.

Details of our investments are as follows:


	June 30, 2025						December 31, 2024
	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	$	682	$	—	$	—	$	762	$	—	$	—
Corporate obligations	502		623		—		694		796		—
U.S. government and agency securities	1,334		1,593		—		752		3,485		—
Non-U.S. government and agency securities	149		99		—		249		99		—
Mutual funds	—		—		11		—		—		11
Total	2,667		2,315		11		2,457		4,380		11

Other measurement basis:
Equity-method investments	—		—		2		—		—		8
Nonmarketable investments	—		—		4		—		—		4
Total	—		—		6		—		—		12

Cash on hand	377		—		—		743		—		—
Total	$	3,044	$	2,315	$	17	$	3,200	$	4,380	$	23

As of June 30, 2025, and December 31, 2024, unrealized gains and losses associated with our debt investments were not material. We did not recognize any credit losses related to debt investments for the first six months of 2025 and 2024.

Proceeds from sales, redemptions and maturities of short-term debt investments were $1.13 billion and $3.13 billion for the second quarters of 2025 and 2024, respectively, and $3.94 billion and $5.76 billion for the first six months of 2025 and 2024, respectively. Gross realized gains and losses from these sales were not material.

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 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 measurement date through correlation with market data. Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active and models or other pricing methodologies that do not require significant judgment. We utilize a third-party data service to provide Level 2 valuations, and we verify these valuations for reasonableness.

•Level 3 – Uses inputs that are unobservable, supported by little or no market activity and reflect the use of significant management judgment. As of June 30, 2025, and December 31, 2024, 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.


	June 30, 2025						December 31, 2024
	Level 1		Level 2		Total		Level 1		Level 2		Total
Assets:
Money market funds	$	682	$	—	$	682	$	762	$	—	$	762
Corporate obligations	—		1,125		1,125		—		1,490		1,490
U.S. government and agency securities	2,130		797		2,927		2,591		1,646		4,237
Non-U.S. government and agency securities	—		248		248		—		348		348
Mutual funds	11		—		11		11		—		11
Total assets	$	2,823	$	2,170	$	4,993	$	3,364	$	3,484	$	6,848

Liabilities:
Deferred compensation	$	445	$	—	$	445	$	443	$	—	$	443
Total liabilities	$	445	$	—	$	445	$	443	$	—	$	443