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FAIR VALUE MEASUREMENTS | 12 Months Ended
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Dec. 31, 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 that were accounted for at fair value on a recurring basis:
| December 31, 2022 |  | December 31, 2021
| Level 1 | Level 2 |  | Level 3 | Total |  | Level 1 | Level 2 |  | Level 3 | Total
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency exchange contracts |  | $ | — |  |  | $ | 93 |  |  |  |  | $ | — |  |  | $ | 93 |  |  |  | $ | — |  |  | $ | 374 |  |  |  |  | $ | — |  |  | $ | 374 |
Available for sale investments |  | 87 |  |  | 559 |  |  |  |  | — |  |  | 646 |  |  |  | 176 |  |  | 566 |  |  |  |  | — |  |  | 742 |
Interest rate swap agreements |  | — |  |  | 16 |  |  |  |  | — |  |  | 16 |  |  |  | — |  |  | 60 |  |  |  |  | — |  |  | 60 |
Cross currency swap agreements |  | — |  |  | 90 |  |  |  |  | — |  |  | 90 |  |  |  | — |  |  | 39 |  |  |  |  | — |  |  | 39 |
Investments in equity securities |  | 22 |  |  | 32 |  |  |  |  | — |  |  | 54 |  |  |  | 34 |  |  | 23 |  |  |  |  | — |  |  | 57 |
Right to HWI Sale proceeds |  | — |  |  | — |  |  |  |  | 295 |  |  | 295 |  |  |  | — |  |  | — |  |  |  |  | — |  |  | — |
Total assets |  | $ | 109 |  |  | $ | 790 |  |  |  |  | $ | 295 |  |  | $ | 1,194 |  |  |  | $ | 210 |  |  | $ | 1,062 |  |  |  |  | $ | — |  |  | $ | 1,272 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency exchange contracts |  | $ | — |  |  | $ | 8 |  |  |  |  | — |  |  | $ | 8 |  |  |  | $ | — |  |  | $ | 282 |  |  |  |  | — |  |  | $ | 282 |
Interest rate swap agreements |  | — |  |  | 303 |  |  |  |  | — |  |  | 303 |  |  |  | — |  |  | — |  |  |  |  | — |  |  | — |
Commodity contracts |  | — |  |  | 1 |  |  |  |  | — |  |  | 1 |  |  |  | — |  |  | — |  |  |  |  | — |  |  | — |
Total liabilities |  | $ | — |  |  | $ | 312 |  |  |  |  | $ | — |  |  | $ | 312 |  |  |  | $ | — |  |  | $ | 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, and time deposits that are designated as available for sale, as well as investments in equity securities, which are valued using published prices based on observable market data. As such, these investments are classified within level 2. The Company holds certain available for sale investments in U.S. government and corporate debt securities, as well as investments in equity securities, which 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 other short-term borrowings contained in the Consolidated Balance Sheet approximates fair value. As part of the NARCO Buyout, Honeywell holds a right to future proceeds from the HWI Sale. The right to these proceeds is considered a financial instrument and is included in Other current assets in the Consolidated Balance Sheet as of December 31, 2022. The right to these proceeds is valued using the estimated purchase price of HWI. The significant input for the valuation of this right is unobservable, and as such, is classified within level 3. The following table sets forth a reconciliation of beginning and ending balances of assets and liabilities that were accounted for at fair value using level 3 measurements:
| Years Ended December 31,
2022 | 2021
Balance at beginning of period |  | $ | — |  |  | $ | — |
Activity during period: |  |  |  |
Recognition of right to HWI Sale proceeds |  | 295 |  |  | — |
Balance at end of period |  | $ | 295 |  |  | $ | — |
The following table sets forth the Company’s financial assets and liabilities that were not carried at fair value:
| December 31, 2022 |  | December 31, 2021
Carrying Value | Fair Value |  | Carrying Value | Fair Value
Assets: |  |  |  |  |  |  |  |  |
Short-term investments |  | $ | — |  |  | $ | — |  |  |  | $ | 34 |  |  | $ | 34 |
Long-term receivables |  | 229 |  |  | 183 |  |  |  | 170 |  |  | 152 |
Long-term investments |  | — |  |  | — |  |  |  | 366 |  |  | 366 |
Liabilities: |  |  |  |  |  |  |  |  |
Long-term debt and related current maturities |  | $ | 16,853 |  |  | $ | 15,856 |  |  |  | $ | 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 value of these receivables is considered level 2. On April 30, 2021, the Company received shares of Garrett Motion Inc. (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 is considered level 2. Fair Value of the Series B Preferred Stock was not impacted by early redemptions until receipt of payment. As of December 31, 2022, Garrett had fully redeemed all outstanding shares of the Garrett Series B Preferred Stock. See Note 19 Commitments and Contingencies for additional information on the Garrett Series B Preferred Stock. 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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