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Fair Value Measurements
 6 Months Ended
Jun. 30, 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 June 30, 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 June 30, 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 June 30, 2024, with the exception of a $3 million impairment of a developed technology intangible asset recorded during the three months ended March 31, 2024 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 six months ended June 30, 2024, we evaluated these investments and determined that with the exception of a fair value loss on our investments of $3 million, which we recorded during the three months ended March 31, 2024 within other income/(expense), net, in the consolidated statement of income, no other adjustments were necessary. As of June 30, 2024, the carrying amount of our investments without readily determinable fair values was $91 million.
Financial Instruments Not Measured at Fair Value
The table below displays the fair value of our debt as of June 30, 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 June 30, 2024.
As of June 30, 2024
(in millions)
Debt:
Carrying Amount
Fair value
Commercial Paper$1,987 $1,987 
2025 Senior Notes (3.65%; unsecured due May 23, 2025)
1,247 1,230 
2025 Senior Notes (3.75%; unsecured due December 1, 2025)
1,249 1,222 
2027 Senior Notes (4.00%; unsecured due September 15, 2027)
1,490 1,451 
2027 Senior Notes (3.10%; unsecured due September 15, 2027)
498 470 
2028 Senior Notes (3.625%; unsecured due September 1, 2028)
929 943 
2028 Senior Notes (3.75%; unsecured due September 21, 2028)
596 572 
2029 Senior Notes (4.35%; unsecured due June 15, 2029)
1,242 1,211 
2030 Senior Notes (2.10%; unsecured due June 15, 2030)
1,239 1,061 
2031 Senior Notes (5.25%; unsecured due June 15, 2031)
743 756 
2032 Senior Notes (1.85%; unsecured due September 15, 2032)
1,487 1,164 
2033 Senior Notes (4.60%; unsecured due March 15, 2033)
1,490 1,433 
2040 Senior Notes (2.65%; unsecured due September 15, 2040)
1,233 869 
2048 Senior Notes (4.25%; unsecured due September 21, 2048)
1,232 1,026 
2050 Senior Notes (3.00%; unsecured due June 15, 2050)
1,223 813 
2052 Senior Notes (4.95%; unsecured due June 15, 2052)
1,466 1,367 
2060 Senior Notes (3.00%; unsecured due September 15, 2060)
1,472 898 
2062 Senior Notes (5.20%; unsecured due June 15, 2062)
984 933 
Total debt
$21,807 $19,406