v3.26.1
Fair Value
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Fair Value
The preparation of the Company’s unaudited condensed consolidated financial statements in accordance with GAAP requires certain assets and liabilities to be reflected at their fair value and others to be reflected on another basis, such as an adjusted historical cost basis. The Company’s assets and liabilities carried at fair value have been classified within one of three levels of a hierarchy established by GAAP. The following are the levels of the hierarchy and a brief description of the type of valuation information (“valuation inputs”) that qualifies a financial asset or liability for each level:

•Level 1 – Unadjusted quoted prices for identical assets or liabilities in active markets.
•Level 2 – Valuation inputs other than Level 1 that are based on observable market data. These include: quoted prices for similar assets in active markets, quoted prices for identical assets in inactive markets, valuation inputs that are observable that are not prices (such as interest rates and credit risks) and valuation inputs that are derived from or corroborated by observable markets.
•Level 3 – Developed from unobservable data, reflecting the Company’s assumptions.

For a description of the methods and assumptions that are used to estimate the fair value and determine the fair value hierarchy classification of each class of financial instrument, see Note 5 ‘‘Fair Value’’ in the 2025 Form 10-K.
There were no financial liabilities measured at fair value on a recurring basis on the unaudited condensed consolidated balance sheets as of March 31, 2026 or December 31, 2025. Financial assets measured at fair value on a recurring basis on the unaudited condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025 were as follows:
In millionsLevel 1Level 2Level 3Total
March 31, 2026    
Cash and cash equivalents$3,188 $6,354 $— $9,542 
Debt securities:   
U.S. government securities2,726 9 — 2,735 
States, municipalities and political subdivisions— 268 — 268 
U.S. corporate securities— 14,929 4 14,933 
Foreign securities— 3,021 — 3,021 
Residential mortgage-backed securities— 1,069 — 1,069 
Commercial mortgage-backed securities— 1,875 — 1,875 
Other asset-backed securities— 4,476 — 4,476 
Redeemable preferred securities— 14 — 14 
Total debt securities2,726 25,661 4 28,391 
Equity securities78 134 198 410 
Total$5,992 $32,149 $202 $38,343 
December 31, 2025    
Cash and cash equivalents$4,030 $4,423 $— $8,453 
Debt securities:   
U.S. government securities2,713 9 — 2,722 
States, municipalities and political subdivisions— 292 — 292 
U.S. corporate securities— 14,682 6 14,688 
Foreign securities— 3,028 — 3,028 
Residential mortgage-backed securities— 1,050 — 1,050 
Commercial mortgage-backed securities— 1,979 — 1,979 
Other asset-backed securities— 4,944 — 4,944 
Redeemable preferred securities— 15 — 15 
Total debt securities2,713 25,999 6 28,718 
Equity securities105 30 198 333 
Total$6,848 $30,452 $204 $37,504 


During the three months ended March 31, 2026 and 2025, transfers into or out of Level 3 were not material.
The carrying value and estimated fair value classified by level of fair value hierarchy for financial instruments carried on the unaudited condensed consolidated balance sheets at adjusted cost or contract value as of March 31, 2026 and December 31, 2025 were as follows:
Carrying
Value		 Estimated Fair Value
In millionsLevel 1Level 2Level 3Total
March 31, 2026
Assets: 
Mortgage loans$1,495 $— $— $1,489 $1,489 
Equity securities (1)
625 N/AN/AN/AN/A
Liabilities:
Long-term debt63,111 59,707 — — 59,707 
December 31, 2025
Assets: 
Mortgage loans$1,524 $— $— $1,524 $1,524 
Equity securities (1)
555 N/AN/AN/AN/A
Liabilities:  
Long-term debt64,570 62,321 — — 62,321 
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(1)It was not practical to estimate the fair value of these investments as they represent shares of unlisted companies.

Separate Accounts

Separate accounts assets relate to the Company’s large case pensions products and represent funds maintained to meet specific objectives of contract holders. Since contract holders bear the investment risk of these assets, a corresponding separate accounts liability has been established equal to the assets. Separate accounts assets and liabilities are carried at fair value and are included in other assets and other long-term liabilities, respectively, on the unaudited condensed consolidated balance sheets. During the three months ended March 31, 2026, changes in separate accounts assets and liabilities were not material. Separate accounts assets as of March 31, 2026 and December 31, 2025 were as follows:
 March 31, 2026December 31, 2025
In millionsLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Cash and cash equivalents$1 $154 $— $155 $1 $155 $— $156 
Debt securities
18 353 2 373 30 361 2 393 
Common/collective trusts— 1,374 — 1,374 — 1,445 — 1,445 
Total (1)
$19 $1,881 $2 $1,902 $31 $1,961 $2 $1,994 
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(1)Excludes $77 million of other receivables as of March 31, 2026.