Fair Value Measurements
The following table summarizes our assets measured at fair value on a recurring basis and the classification by level of input within the fair value hierarchy (in millions): 
  Fair Value Measurement at Reporting Date Using
Description December 31,
2022
Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Cash equivalents:   
Money market funds$8,305 $8,305 $— $— 
U.S. government agency securities16 16 — — 
Certificates of deposit and time deposits156 — 156 — 
Corporate debt securities28 — 28 — 
Marketable securities:   
U.S. government securities8,708 8,708 — — 
U.S. government agency securities4,989 4,989 — — 
Corporate debt securities12,335 — 12,335 — 
Marketable equity securities25 25 — — 
Restricted cash equivalents583 583 — — 
Other assets157 — — 157 
Total$35,302 $22,626 $12,519 $157 
  Fair Value Measurement at Reporting Date Using
DescriptionDecember 31,
2021
Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Cash equivalents:   
Money market funds$8,850 $8,850 $— $— 
U.S. government securities25 25 — — 
U.S. government agency securities108 108 — — 
Certificates of deposit and time deposits250 — 250 — 
Corporate debt securities60 — 60 — 
Marketable securities:
U.S. government securities10,901 10,901 — — 
U.S. government agency securities5,927 5,927 — — 
Corporate debt securities14,569 — 14,569 — 
Restricted cash equivalents71 71 — — 
Other assets160 — — 160 
Total$40,921 $25,882 $14,879 $160 

We classify our cash equivalents and marketable debt securities within Level 1 or Level 2 because we use quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value. Our marketable equity securities are publicly traded stocks measured at fair value and classified within Level 1 in the fair value hierarchy because we use quoted prices for identical assets in active markets to estimate their fair value. Certain other assets are classified within Level 3 because factors used to develop the estimated fair value are unobservable inputs that are not supported by market activity.
Our non-marketable equity securities accounted for using the measurement alternative are measured at fair value on a non-recurring basis and are classified within Level 3 of the fair value hierarchy because we use significant unobservable inputs to estimate their fair value. Assets remeasured at fair value within Level 3 during the years ended December 31, 2022 and 2021 were immaterial and $913 million, respectively. For additional information, see Note 6 — Non-marketable Equity Securities.

Historical Timeline

Fiscal YearFiled
2022Feb 2, 2023Showing above
2021Feb 3, 2022
2020Jan 28, 2021
2019Jan 30, 2020
2018Jan 31, 2019
2017Feb 1, 2018
2016Feb 3, 2017
2015Jan 28, 2016

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.