Fair Value Measurements

3 Months Ended

Mar. 31, 2018

FAIR VALUE MEASUREMENTS

Our policies for managing risk related to foreign currency, interest rates, credit and markets and our process for determining fair value have not changed from those described in Note 1 Significant Accounting Policies and Note 2 Fair Value Measurements of Notes to Consolidated Financial Statements in our 2017 Annual Report on Form 10-K.

There were no significant transfers into or out of any level in 2018.



Assets Measured at Fair Value
	March		December
	2018		2017
Cash and cash equivalents	$	2,179	$	2,542
Trading marketable securities	125		121
Level 1 - Assets	$	2,304	$	2,663
Available-for-sale marketable securities:
Corporate and asset-backed debt securities	$	113	$	125
Foreign government debt securities	4		2
United States agency debt securities	28		27
United States Treasury debt securities	74		70
Certificates of deposit	57		27
Total available-for-sale marketable securities	$	276	$	251
Foreign currency exchange forward contracts	15		15
Interest rate swap asset	—		49
Level 2 - Assets	$	291	$	315
Total assets measured at fair value	$	2,595	$	2,978



Liabilities Measured at Fair Value
	March			December
	2018			2017
Deferred compensation arrangements	$	125		$	121
Level 1 - Liabilities	$	125		$	121
Foreign currency exchange forward contracts	$	80		$	37
Level 2 - Liabilities	$	80		$	37
Contingent consideration:
Beginning	$	32		$	86
Additions	78			3
Change in estimate	—			2
Settlements	(2		)	(59		)
Ending	$	108		$	32
Level 3 - Liabilities	$	108		$	32
Total liabilities measured at fair value	$	313		$	190



Fair Value of Available for Sale Securities by Maturity
	March 2018		December 2017
Due in one year or less	$	128	$	107
Due after one year through three years	$	148	$	144

On March 31, 2018 and December 31, 2017 the aggregate difference between the cost and fair value of available-for-sale marketable securities was nominal. Interest and marketable securities income was $23 and $11 in the three months 2018 and 2017, which was recorded in other income (expense), net.

Our investments in available-for-sale marketable securities had a minimum credit quality rating of A2 (Moody's), A (Standard & Poor's) and A (Fitch). We do not plan to sell the investments, and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost basis, which may be maturity. We do not consider these investments to be other-than-temporarily impaired on March 31, 2018. On March 31, 2018 substantially all our investments with unrealized losses that were not deemed to be other-than-temporarily impaired were in a continuous unrealized loss position for less than twelve months, and the losses were nominal.



Securities in a Continuous Unrealized Loss Position
	Number of Investments	Fair Value
Corporate and asset-backed	124	$	100
Foreign government	1	2
United States agency	17	28
United States Treasury	25	74
Certificates of deposit	44	54
Total	211	$	258

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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