Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2025

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 was as follows:


	March 31, 2025								December 31, 2024
	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	$	43	$	37	$	—	$	80	$	36	$	44	$	—	$	80
Corporate securities	—		175		—		175		—		188		—		188
Asset-backed securities	—		34		—		34		—		24		—		24
Derivative instruments 2:
Foreign exchange contracts	—		103		—		103		—		206		—		206

Marketable securities 3:
Equity securities	202		—		—		202		237		—		—		237
Deferred compensation plan 4:
Deferred compensation assets	93		—		—		93		107		—		—		107

Liabilities
Derivative instruments 2:
Foreign exchange contracts	$	—	$	36	$	—	$	36	$	—	$	36	$	—	$	36
Interest rate contracts	—		50		—		50		—		63		—		63
Deferred compensation plan 5:
Deferred compensation liabilities	99		—		—		99		105		—		—		105

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, corporate securities and asset-backed 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 measured at fair value are based on observable inputs such as broker quotes for similar derivative instruments. See Note 16 (Derivative and Hedging Instruments) for further details.

3The Company’s Marketable securities are publicly held and fair values are based on unadjusted quoted prices in their respective active markets.

4The Company has a nonqualified deferred compensation plan under which assets are invested primarily in mutual funds held in a rabbi trust or are held as cash equivalents, all of which are restricted for payments to participants of the plan. The Company has elected to use the fair value option for these assets, which are measured using quoted prices of identical instruments in active markets. These are included in prepaid expenses and other current assets and restricted cash and restricted cash equivalents on the consolidated balance sheets.

5The Company has a nonqualified deferred compensation plan under which liabilities are measured at fair value 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 sheets.