Discover 2014 Annual Report Download - page 163

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Financial Instruments Measured at Other Than Fair Value
The following tables disclose the estimated fair value of the Company's financial assets and financial liabilities
that are not required to be carried at fair value (dollars in millions):
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3) Total Carrying Value
Balance at December 31, 2014
Assets
U.S. Treasury securities ....................................................... $ 1 $ — $ — $ 1 $ 1
States and political subdivisions of states .............................. — 10 — 10 10
Residential mortgage-backed securities - Agency .................. — 93 — 93 91
Held-to-maturity investment securities ............................... $ 1 $ 103 $ — $ 104 $ 102
Cash and cash equivalents ................................................. $7,284 $ — $ — $ 7,284 $7,284
Restricted cash ................................................................... $ 106 $ — $ — $ 106 $ 106
Net loan receivables(1) ........................................................ $ — $ — $ 69,316 $ 69,316 $ 68,101
Accrued interest receivables ................................................ $ — $ 618 $ — $ 618 $ 618
Liabilities
Deposits ........................................................................... $ — $ 46,242 $ — $ 46,242 $ 46,089
Short-term borrowings ....................................................... $ — $ 113 $ — $ 113 $ 113
Long-term borrowings - owed to securitization investors......... $ — $ 16,067 $ 1,561 $ 17,628 $ 17,395
Other long-term borrowings ............................................... $ — $ 5,721 $ 1 $ 5,722 $5,149
Accrued interest payables ................................................... $ — $ 132 $ — $ 132 $ 132
Balance at December 31, 2013
Assets
U.S. Treasury securities ....................................................... $ 1 $ — $ — $ 1 $ 1
States and political subdivisions of states .............................. — 14 — 14 15
Residential mortgage-backed securities - Agency .................. — 43 — 43 44
Held-to-maturity investment securities ............................... $ 1 $ 57 $ — $ 58 $ 60
Cash and cash equivalents ................................................. $6,554 $ — $ — $ 6,554 $6,554
Restricted cash ................................................................... $ 182 $ — $ — $ 182 $ 182
Net loan receivables(1) ........................................................ $ — $ — $ 64,968 $ 64,968 $ 63,975
Accrued interest receivables ................................................ $ — $ 556 $ — $ 556 $ 556
Liabilities
Deposits ........................................................................... $ — $ 45,231 $ — $ 45,231 $ 44,959
Short-term borrowings ....................................................... $ — $ 140 $ — $ 140 $ 140
Long-term borrowings - owed to securitization investors......... $ — $ 15,312 $ 1,971 $ 17,283 $ 16,986
Other long-term borrowings ............................................... $ — $ 3,934 $ 1 $ 3,935 $3,488
Accrued interest payables ................................................... $ — $ 117 $ — $ 117 $ 117
(1) Net loan receivables exclude mortgage loans held for sale that are measured at fair value on a recurring basis.
The fair values of these financial assets and liabilities, which are not carried at fair value on the consolidated
statements of financial condition, were determined by applying the fair value provisions discussed herein. The use of
different assumptions or estimation techniques may have a material effect on these estimated fair value amounts. The