Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]

Distribution of Financial Instruments, Measured at Fair Value on a Recurring Basis

The distribution of the Company’s financial instruments measured at fair value on a recurring basis within the Valuation Hierarchy were as follows:


	September 30, 2023								December 31, 2022
	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(in millions)
Assets
Investment securities available-for-sale 1:

Government and agency securities	$	37	$	55	$	—	$	92	$	35	$	54	$	—	$	89
Corporate securities	—		184		—		184		—		183		—		183


Derivative instruments 2:
Foreign exchange contracts	—		120		—		120		—		108		—		108

Marketable securities 3:
Equity securities	457		—		—		457		399		—		—		399
Deferred compensation plan 4:
Deferred compensation assets	84		—		—		84		74		—		—		74

Liabilities
Derivative instruments 2:
Foreign exchange contracts	$	—	$	22	$	—	$	22	$	—	$	21	$	—	$	21
Interest rate contracts	—		109		—		109		—		105		—		105
Deferred compensation plan 5:
Deferred compensation liabilities	83		—		—		83		73		—		—		73

1The Company’s U.S. government securities are classified within Level 1 of the Valuation Hierarchy as the fair values are based on unadjusted quoted prices for identical assets in active markets. The fair value of the Company’s available-for-sale non-U.S. government and agency securities and corporate securities are based on observable inputs such as quoted prices, benchmark yields and issuer spreads for similar assets in active markets and are therefore included in Level 2 of the Valuation Hierarchy.

2The Company’s foreign exchange and interest rate derivative asset and liability contracts have been classified within Level 2 of the Valuation Hierarchy as the fair value is based on observable inputs such as broker quotes for similar derivative instruments. See Note 17 (Derivative and Hedging Instruments) for further details.

3The Company’s Marketable securities are publicly held and classified within Level 1 of the Valuation Hierarchy as the fair values are based on unadjusted quoted prices in their respective active markets.

4The Company has a nonqualified deferred compensation plan where assets are invested primarily in mutual funds held in a rabbi trust, which is restricted for payments to participants of the plan. The Company has elected to use the fair value option for these mutual funds and are classified within Level 1 of the Valuation Hierarchy, which are measured using quoted prices of identical instruments in active markets and are included in prepaid expenses and other current assets on the consolidated balance sheet.

5The deferred compensation liabilities are classified within Level 1 of the Valuation Hierarchy as the fair value is measured based on the quoted prices of identical instruments to the investment vehicles selected by the participants. These are included in other liabilities on the consolidated balance sheet.