Fair Value Measurements

9 Months Ended

Sep. 30, 2020

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 our Annual Report on Form 10-K for 2019.

There were no significant transfers into or out of any level in 2020.


Assets Measured at Fair Value	September		December
	2020		2019
Cash and cash equivalents	$	7,083	$	4,337
Trading marketable securities	154		149
Level 1 - Assets	$	7,237	$	4,486
Available-for-sale marketable securities:
Corporate and asset-backed debt securities	$	37	$	32

United States agency debt securities	6		2
United States Treasury debt securities	34		49
Certificates of deposit	1		5
Total available-for-sale marketable securities	$	78	$	88
Foreign currency exchange forward contracts	67		226
Interest rate swap asset	—		17
Level 2 - Assets	$	145	$	331
Total assets measured at fair value	$	7,382	$	4,817


Liabilities Measured at Fair Value	September		December
	2020		2019
Deferred compensation arrangements	$	154	$	149
Level 1 - Liabilities	$	154	$	149
Foreign currency exchange forward contracts	$	105	$	23
Interest rate swap liability	65		—
Level 2 - Liabilities	$	170	$	23
Contingent consideration:
Beginning	$	306	$	117
Additions	5		298
Change in estimate	6		(10)
Settlements	(30)		(99)
Ending	$	287	$	306
Level 3 - Liabilities	$	287	$	306
Total liabilities measured at fair value	$	611	$	478


Fair Value of Available for Sale Securities by Maturity
	September 2020		December 2019
Due in one year or less	$	40	$	50
Due after one year through three years	$	38	$	38

On September 30, 2020 and December 31, 2019 the aggregate difference between the cost and fair value of available-for-sale marketable securities was nominal. Interest and marketable securities income recorded in other income (expense), net, was $19 and $36 in the three months and $84 and $109 in the nine months 2020 and 2019.

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.

- 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.

+ References + Details