Short-term investments expected to mature in one year or less

Notes to the Consolidated Financial StatementsNOTE 3. FAIR VALUE MEASUREMENTS  
Assets/(Liabilities) Measured at Fair Value on a Recurring Basis

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| (in millions) | September 30,2022 | Level 1 | Level 2 | Level 3 |
| Cash equivalents | $ | 4,443  |  | $ | 4,443  |  | $ | —  |  | $ | —  |  |
| Restricted cash equivalents | 302  |  | 302  |  | —  |  | —  |  |
| Short-term investments | 1,345  |  | 75  |  | 1,270  |  | —  |  |
| Long-term investments | 899  |  | 767  |  | 35  |  | 97  |  |
| Fuel hedge contracts | 23  |  | —  |  | 23  |  | —  |  |
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| (in millions) | December 31,2021 | Level 1 | Level 2 | Level 3 |
| Cash equivalents | $ | 5,450  |  | $ | 5,450  |  | $ | —  |  | $ | —  |  |
| Restricted cash equivalents | 635  |  | 635  |  | —  |  | —  |  |
| Short-term investments | 3,386  |  | 1,376  |  | 2,010  |  | —  |  |
| Long-term investments | 1,459  |  | 1,326  |  | 36  |  | 97  |  |
| Fuel hedge contracts | (18) |  | —  |  | (18) |  | —  |  |
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Cash Equivalents and Restricted Cash Equivalents. Cash equivalents generally consist of money market funds. Restricted cash equivalents generally consist of money market funds, time deposits, commercial paper and negotiable certificates of deposit, which primarily relate to certain self-insurance obligations and airport commitments as well as proceeds from debt issued to finance, among other things, a portion of the construction costs for our new terminal facilities at New York's LaGuardia Airport. Restricted cash equivalents are recorded in prepaid expenses and other and other noncurrent assets on our Consolidated Balance Sheet ("balance sheet"). The fair value of these cash equivalents is based on a market approach using prices generated by market transactions involving identical or comparable assets.  
Short-Term Investments. Short-term investments consist of U.S. government and agency securities. The fair values of these investments are based on a market approach using industry standard valuation techniques that incorporate observable inputs such as quoted market prices, interest rates, benchmark curves, credit ratings of the security and other observable information.  
As of September 30, 2022, the estimated fair value of our short-term investments was $1.3 billion. Of these investments, $711 million are expected to mature in one year or less, with the remainder maturing by the first half of 2024. Investments with maturities beyond one year when purchased are classified as short-term investments if they are expected to be available to support our short-term liquidity needs.  
Long-Term Investments. Our long-term investments measured at fair value primarily consist of equity investments, which are valued based on market prices or other observable transactions and inputs, and are recorded in equity investments on our balance sheet. Our equity investments in private companies are classified as Level 3 in the fair value hierarchy as their equity is not traded on a public exchange and our valuations incorporate certain unobservable inputs, including non-public equity issuances and forecasts provided by our investees. Fair value measurement using unobservable inputs is inherently uncertain, and a change in significant inputs could result in different fair values. See Note 4, "Investments," for further information on our equity investments.   
Fuel Hedge Contracts. Our derivative contracts to hedge the financial risk from changing fuel prices are primarily related to inventory at our wholly-owned subsidiary, Monroe Energy, LLC ("Monroe"). Our fuel hedge portfolio may consist of a combination of options, swaps or futures contracts, most of which have a duration of less than three months. Option and swap contracts are valued under income approaches using option pricing models and discounted cash flow models, respectively, based on data either readily observable in public markets, derived from public markets or provided by counterparties who regularly trade in public markets. Futures contracts and options on futures contracts are traded on a public exchange and valued based on quoted market prices. We recognized gains of $139 million and losses of $339 million on our fuel hedge contracts in aircraft fuel and related taxes on our Condensed Consolidated Statements of Operations and Comprehensive Income ("income statement") for the three and nine months ended September 30, 2022, respectively, compared to losses of $22 million and $143 million for the three and nine months ended September 30, 2021, respectively. The losses recognized during the nine months ended September 30, 2022 were composed of $380 million of settlements on contracts, partially offset by $41 million of mark-to-market adjustments. Expense from the settlement of closed contracts is offset by higher operating profits at Monroe from higher pricing. See Note 9, "Segments," for further information on our Monroe refinery segment. Delta Air Lines, Inc. September 2022 Form 10-Q                                 10
