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Fair Value Measurements | 3 Months Ended
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Mar. 31, 2024
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Fair Value Measurements Fair value is the price that would be received from selling an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Our financial instruments consist primarily of certain short-term and long-term assets and liabilities, customer accounts receivable, margin deposits and guaranty funds, equity and equity method investments, and short-term and long-term debt. The fair value of our financial instruments is measured based on a three-level hierarchy: •Level 1 inputs — quoted prices for identical assets or liabilities in active markets. •Level 2 inputs — observable inputs other than Level 1 inputs such as quoted prices for similar assets and liabilities in active markets or inputs other than quoted prices that are directly observable. •Level 3 inputs — unobservable inputs supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Financial assets and liabilities recorded or disclosed at fair value in the consolidated balance sheets as of March 31, 2024 and December 31, 2023 were classified in their entirety based on the lowest level of input that is significant to the asset or liability’s fair value measurement. Recurring Fair Value Measurements Our mutual funds are equity and fixed income mutual funds held for the purpose of providing future payments for our supplemental executive savings plan and our supplemental executive retirement plan. These mutual funds are classified as equity investments and measured at fair value using Level 1 inputs with adjustments recorded in net income. Excluding our equity investments without a readily determinable fair value, all other financial instruments are determined to approximate carrying value due to the short period of time to their maturities. As described in Note 3, we measured the right to receive the net proceeds of the sale of the Promissory Note obtained in connection with the Optimal Blue sale using Level 3 inputs. In February 2024, the FTC approved the buyer of the Promissory Note, and we completed the sale of the Promissory Note and received the $75 million of proceeds thereafter. Subsequent to the sale and as of March 31, 2024, we did not use Level 3 inputs to determine the fair value of assets or liabilities measured at fair value on a recurring basis. See Note 12 for the fair value considerations related to our margin deposits, guaranty funds and delivery contracts receivable. Non-Recurring Fair Value Measurements We measure certain assets, such as intangible assets and equity investments, including equity method investments, at fair value on a non-recurring basis. These assets are recognized at fair value if they are deemed to be impaired. As of December 31, 2023, certain equity method investments were measured at fair value on a non-recurring basis. As of March 31, 2024, with the exception of a $3 million impairment of a developed technology intangible asset within the Exchanges segment, none of our intangible assets or equity method investments were required to be recorded at fair value since no impairments were recorded. We measure certain equity investments at fair value on a non-recurring basis using our policy election under ASC 321, Investments - Equity Securities. During the three months ended March 31, 2024, we evaluated these investments and determined that we had a fair value loss on our investments of $3 million, which we recorded within other income/(expense), net, in the consolidated statement of income. As of March 31, 2024, the carrying amount of our investments without readily determinable fair values was $84 million. Financial Instruments Not Measured at Fair Value The table below displays the fair value of our debt as of March 31, 2024. The fair values of our fixed rate notes were estimated using Level 2 inputs including quoted market prices for these instruments. The fair value of other short-term debt approximates par value since the interest rates on this short-term debt approximate market rates as of March 31, 2024.
| As of March 31, 2024
| (in millions)
Debt: | Carrying Amount |  | Fair value
Commercial Paper | $ | 1,916 |  |  | $ | 1,916 |
2025 Term Loan due August 31, 2025 | 1,000 |  |  | 1,000 |
3.65% Senior Notes due May 23, 2025 | 1,247 |  |  | 1,227 |
3.75% Senior Notes due December 1, 2025 | 1,248 |  |  | 1,223 |
4.00% Senior Notes due September 15, 2027 | 1,490 |  |  | 1,458 |
3.10% Senior Notes due September 15, 2027 | 498 |  |  | 472 |
3.625% Senior Notes due September 1, 2028 | 925 |  |  | 946 |
3.75% Senior Notes due September 21, 2028 | 596 |  |  | 576 |
4.35% Senior Notes due June 15, 2029 | 1,242 |  |  | 1,220 |
2.10% Senior Notes due June 15, 2030 | 1,238 |  |  | 1,062 |
1.85% Senior Notes due September 15, 2032 | 1,487 |  |  | 1,174 |
4.60% Senior Notes due March 15, 2033 | 1,489 |  |  | 1,455 |
2.65% Senior Notes due September 15, 2040 | 1,232 |  |  | 903 |
4.25% Senior Notes due September 21, 2048 | 1,232 |  |  | 1,073 |
3.00% Senior Notes due June 15, 2050 | 1,222 |  |  | 846 |
4.95% Senior Notes due June 15, 2052 | 1,466 |  |  | 1,425 |
3.00% Senior Notes due September 15, 2060 | 1,472 |  |  | 949 |
5.20% Senior Notes due June 15, 2062 | 984 |  |  | 979 |
Total debt | $ | 21,984 |  |  | $ | 19,904 |

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- 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 Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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