TD Ameritrade 2018 Annual Report

TD AMERITRADE HOLDING CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) 90 As of September 30, 2017 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents: Money market mutual funds . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,081 $ — $ — $ 1,081 Investments segregated and on deposit for regulatory purposes: U.S. government debt securities . . . . . . . . . . . . . . . . . . . . . . . . — 4,094 — 4,094 U.S. government agency mortgage-backed securities . . . . . . . . — 1,486 — 1,486 Subtotal - Investments segregated for regulatory purposes — 5,580 — 5,580 Securities owned: U.S. government debt securities . . . . . . . . . . . . . . . . . . . . . . . . — 498 — 498 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 4 — 5 Subtotal - Securities owned . . . . . . . . . . . . . . . . . . . . . . . . 1 502 — 503 Investments available-for-sale: U.S. government debt securities . . . . . . . . . . . . . . . . . . . . . . . . — 746 — 746 Other assets: Pay-variable interest rate swaps (1) . . . . . . . . . . . . . . . . . . . . . . . — 26 — 26 U.S. government debt securities . . . . . . . . . . . . . . . . . . . . . . . . — 1 — 1 Auction rate securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 1 1 Subtotal - Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 27 1 28 Total assets at fair value. . . . . . . . . . . . . . . . . . . . . . . . . $ 1,082 $ 6,855 $ 1 $ 7,938 Liabilities: Accounts payable and other liabilities: Pay-variable interest rate swaps (1) . . . . . . . . . . . . . . . . . . . . . . $ — $ 3 $ — $ 3 (1) See " Fair Value Hedging " in Note 10 for details. There were no transfers between any levels of the fair value hierarchy during the periods covered by this report. Valuation Techniques In general, and where applicable, the Company uses quoted prices in active markets for identical assets or liabilities to determine fair value. This pricing methodology applies to the Company's Level 1 assets and liabilities. If quoted prices in active markets for identical assets and liabilities are not available to determine fair value, then the Company uses quoted prices for similar assets and liabilities or inputs other than the quoted prices that are observable, either directly or indirectly. This pricing methodology applies to the Company's Level 2 assets and liabilities. Level 2 Measurements: Debt securities — Fair values for debt securities are based on prices obtained from an independent pricing vendor. The primary inputs to the valuation include quoted prices for similar assets in active markets, quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads. The Company validates the vendor pricing by periodically comparing it to pricing from another independent pricing