Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Income for the reporting periods was as follows:
A summary of marketable securities, all of which are classified as current, was as follows:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | October 1, 2017 | | December 31, 2016 |
In millions | | Cost | | Gross unrealized gains/(losses) | | Estimated fair value | | Cost | | Gross unrealized gains/(losses) | | Estimated fair value |
Available-for-sale (1) | | |
| | |
| | |
| | |
| | |
| | |
|
Debt mutual funds | | $ | 139 |
| | $ | — |
| | $ | 139 |
| | $ | 132 |
| | $ | — |
| | $ | 132 |
|
Bank debentures | | — |
| | — |
| | — |
| | 114 |
| | — |
| | 114 |
|
Equity mutual funds | | 12 |
| | 2 |
| | 14 |
| | 12 |
| | — |
| | 12 |
|
Government debt securities | | 1 |
| | — |
| | 1 |
| | 2 |
| | — |
| | 2 |
|
Total marketable securities | | $ | 152 |
| | $ | 2 |
| | $ | 154 |
| | $ | 260 |
| | $ | — |
| | $ | 260 |
|
____________________________________
(1)
A description of the valuation techniques and inputs used for our Level 2 fair value measures was as follows:
| |
• | Debt mutual funds— The fair value measure for the vast majority of these investments is the daily net asset value published on a regulated governmental website. Daily quoted prices are available from the issuing brokerage and are used on a test basis to corroborate this Level 2 input. |
| |
• | Bank debentures— These investments provide us with a contractual rate of return and generally range in maturity from three months to five years. The counterparties to these investments are reputable financial institutions with investment grade credit ratings. Since these instruments are not tradable and must be settled directly by us with the respective financial institution, our fair value measure is the financial institutions’ month-end statement. |
| |
• | Equity mutual funds— The fair value measure for these investments is the net asset value published by the issuing brokerage. Daily quoted prices are available from reputable third party pricing services and are used on a test basis to corroborate this Level 2 input measure. |
| |
• | Government debt securities— The fair value measure for these securities is broker quotes received from reputable firms. These securities are infrequently traded on a national stock exchange and these values are used on a test basis to corroborate our Level 2 input measure. |