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FAIR VALUE MEASUREMENTS | 9 Months Ended
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Sep. 30, 2022
Fair Value Disclosures [Abstract] |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The accounting guidance for fair value measurements and disclosures establishes a three-level fair value hierarchy: •Level 1 - Inputs are based on quoted prices in active markets for identical assets and liabilities. •Level 2 - Inputs are based on observable inputs other than quoted prices in active markets for identical or similar assets and liabilities. •Level 3 - One or more inputs are unobservable and significant. Financial and nonfinancial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table sets forth the Company’s financial assets and liabilities accounted for at fair value on a recurring basis:
| September 30, 2022 |  | December 31, 2021
| Level 1 | Level 2 |  | Total |  | Level 1 | Level 2 |  | Total
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency exchange contracts |  | $ | — |  |  | $ | 687 |  |  |  |  | $ | 687 |  |  |  | $ | — |  |  | $ | 374 |  |  |  |  | $ | 374 |
Available for sale investments |  | 83 |  |  | 581 |  |  |  |  | 664 |  |  |  | 176 |  |  | 566 |  |  |  |  | 742 |
Interest rate swap agreements |  | — |  |  | — |  |  |  |  | — |  |  |  | — |  |  | 60 |  |  |  |  | 60 |
Cross currency swap agreements |  | — |  |  | 203 |  |  |  |  | 203 |  |  |  | — |  |  | 39 |  |  |  |  | 39 |
Investments in equity securities |  | 16 |  |  | 24 |  |  |  |  | 40 |  |  |  | 34 |  |  | 23 |  |  |  |  | 57 |
Total assets |  | $ | 99 |  |  | $ | 1,495 |  |  |  |  | $ | 1,594 |  |  |  | $ | 210 |  |  | $ | 1,062 |  |  |  |  | $ | 1,272 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency exchange contracts |  | $ | — |  |  | $ | 498 |  |  |  |  | $ | 498 |  |  |  | $ | — |  |  | $ | 282 |  |  |  |  | $ | 282 |
Interest rate swap agreements |  | — |  |  | 294 |  |  |  |  | 294 |  |  |  | — |  |  | — |  |  |  |  | — |
Commodity contracts |  | — |  |  | 1 |  |  |  |  | 1 |  |  |  | — |  |  | — |  |  |  |  | — |
Total liabilities |  | $ | — |  |  | $ | 793 |  |  |  |  | $ | 793 |  |  |  | $ | — |  |  | $ | 282 |  |  |  |  | $ | 282 |
The foreign currency exchange contracts, interest rate swap agreements, cross currency swap agreements and commodity contracts are valued using broker quotations or market transactions in either the listed or over-the-counter markets. As such, these derivative instruments are classified within level 2. The Company also holds investments in commercial paper, certificates of deposits, time deposits, and corporate debt securities that are designated as available for sale, as well as investments in equity securities, which includes holdings of Garrett Motion Inc. (Garrett) Series A Preferred Stock. These investments are valued using published prices based off observable market data. As such, these investments are classified within level 2. The Company holds certain available for sale investments in U.S. government securities, and investments in equity securities, which includes holdings of Garrett common stock. These investments are valued utilizing published prices based on quoted market pricing, which are classified within level 1. The carrying value of cash and cash equivalents, trade accounts and notes receivables, payables, commercial paper, and short-term borrowings approximates fair value. As of September 30, 2022, the Company does not consider any assets or liabilities measured at fair value as level 3. The following table sets forth the Company’s financial assets and liabilities that were not carried at fair value:
| September 30, 2022 |  | December 31, 2021
| Carrying Value | Fair Value |  | Carrying Value | Fair Value
Assets |  |  |  |  |  |  |  |  |
Short-term investment |  | $ | — |  |  | $ | — |  |  |  | $ | 34 |  |  | $ | 34 |
Long-term receivables |  | 159 |  |  | 129 |  |  |  | 170 |  |  | 152 |
Long-term investment |  | — |  |  | — |  |  |  | 366 |  |  | 366 |
Liabilities |  |  |  |  |  |  |  |  |
Long-term debt and related current maturities |  | $ | 13,551 |  |  | $ | 15,572 |  |  |  | $ | 16,057 |  |  | $ | 17,022 |
The Company determined the fair value of the long-term receivables by utilizing transactions in the listed markets for identical or similar assets. As such, the fair values of these receivables are considered level 2. On April 30, 2021, the Company received shares of Garrett Series B Preferred Stock in full and final satisfaction of the Garrett Indemnity and Tax Matters Agreement. As of December 31, 2021, the fair value of the short-term and long-term investments were based on the present value of the mandatory redemptions as reflected within Garrett's Second and Amended and Restated Series B Preferred Stock (Series B Preferred Stock) Certificate of Designation. The present value reflected amortized cost determined by the present value of the mandatory redemptions discounted at 7.25%, which was the rate reflected in the Second Amended and Restated Series B Preferred Stock Certificate of Designation. The discount accreted to interest income over the mandatory redemption period. The investment was designated as held to maturity and was initially recognized at fair value. The fair value of Garrett's Series B Preferred Stock was determined using observable market data and was considered level 2. Fair Value of the Series B Preferred Stock was not impacted by early redemptions until receipt of payment. On February 18, 2022, Garrett early redeemed $197 million of the Series B Preferred Stock, pursuant to the terms and conditions of the Second Amended and Restated Series B Preferred Stock Certificate of Designation. Immediately following the early redemption, the fair value of the Series B Preferred Stock was $207 million. On June 28, 2022, Garrett early redeemed all remaining shares of the Series B Preferred Stock in the amount of $212 million, pursuant to the terms and conditions of the Second Amended and Restated Series B Preferred Stock Certificate of Designation. Following the redemption, the Series B Preferred Stock were no longer outstanding. The Company determined the fair value of the long-term debt and related current maturities utilizing transactions in the listed markets for identical or similar liabilities. As such, the fair value of the long-term debt and related current maturities is considered level 2.

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- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
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