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Fair Value Measurements
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Investments and Derivatives
The fair values of the Company’s financial assets and liabilities by level in the fair value hierarchy as of December 31, 2022 and December 31, 2021 were as follows: 
December 31, 2022Level 1Level 2Total
Assets:
Foreign exchange derivative contracts$— $15 $15 
Common stock and equivalents21 — 21 
Liabilities:
Foreign exchange derivative contracts$— $5 $5 
December 31, 2021Level 1Level 2Total
Assets:
Foreign exchange derivative contracts$— $7 $7 
Common stock and equivalents69 — 69 
Liabilities:
Foreign exchange derivative contracts$— $5 $5 
Pension and Postretirement Health Care Benefits Plan Assets
The fair values of the various pension and postretirement health care benefits plans’ assets by level in the fair value hierarchy as of December 31, 2022 and 2021 were as follows:
U.S. Pension Benefit Plans
December 31, 2022Level 1Level 2Level 3Total
Equities$48 $— $— $48 
Commingled funds1,159 488 — 1,647 
Government fixed income securities— 159 — 159 
Corporate fixed income securities— 863 — 863 
Short-term investment funds186 — — 186 
Private assets— — 111 111 
Total investment securities$1,393 $1,510 $111 $3,014 
Accrued income receivable45 
Cash17 
Fair value plan assets$3,076 
The following table summarizes the changes in fair value of the Level 3 assets:
2022
Fair value at January 1, 202260 
Actual return on plan assets(1)
Purchases52 
Fair value at December 31, 2022111 
December 31, 2021Level 1Level 2Level 3Total
Equities$41 $— — $41 
Commingled funds1,601 505 — 2,106 
Government fixed income securities— 412 — 412 
Corporate fixed income securities— 1,145 — 1,145 
Short-term investment funds338 — — 338 
Private Assets— — 60 60 
Total investment securities$1,980 $2,062 $60 $4,102 
Accrued income receivable49 
Cash6 
Fair value plan assets   $4,157 
Non-U.S. Pension Benefit Plans
December 31, 2022Level 1Level 2Total
Equities$55 $— $55 
Commingled funds252 41 293 
Government fixed income securities— 491 491 
Short-term investment funds83 — 83 
Total investment securities$390 $532 $922 
Cash3 
Accrued income receivable121 
Insurance contracts46 
Fair value plan assets  $1,092 
December 31, 2021Level 1Level 2Total
Equities$94 $— $94 
Commingled funds458 75 533 
Government fixed income securities2 1,004 1,006 
Short-term investment funds105 — 105 
Total investment securities$659 $1,079 $1,738 
Cash4 
Accrued income receivable78 
Insurance contracts50 
Fair value plan assets  $1,870 
Postretirement Health Care Benefits Plan 
December 31, 2022Level 1Level 2Level 3Total
Equities$2 $— $— $2 
Commingled funds49 22 — 71 
Government fixed income securities— 7 — 7 
Corporate fixed income securities— 39 — 39 
Short-term investment funds8 — — 8 
Private funds— — 5 5 
Total investment securities$59 $68 5 132 
Accrued income receivable2 
Fair value plan assets$134 
The following table summarizes the changes in fair value of the Level 3 assets:
2022
Fair value at January 1, 20223 
Purchases2 
Fair value at December 31, 20225 
December 31, 2021Level 1Level 2Level 3Total
Equities$2 $— $— $2 
Commingled funds72 23 — 95 
Government fixed income securities— 18 — 18 
Corporate fixed income securities— 51 — 51 
Short-term investment funds15 — — 15 
Private funds— — 3 3 
Total investment securities$89 $92 3$184 
Accrued income receivable2 
Fair value plan assets$186 
The following is a description of the categories of investments:
Equities — A diversified portfolio of corporate common and preferred stocks.
Commingled funds — A diversified portfolio of assets that includes corporate common and preferred stocks, emerging market and high-yield fixed income securities among others.
Government fixed income securities — Securities issued by municipal, domestic and foreign government agencies, index-linked government bonds as well as interest rate derivatives.
Corporate fixed income securities — A diversified portfolio of primarily investment grade bonds issued by corporations.
Short-term investment funds — Investments in money market accounts and derivatives with a liquidity of less than 90 days.
Private funds — A diversified portfolio of assets that includes private equity funds and private loans.
Level 1 investments include securities which are valued at the closing price reported on the active market in which the individual securities are traded. Level 2 investments consist principally of securities which are valued using independent third party pricing sources. Level 3 investments include securities with valuations derived from valuation techniques, in which one or more significant inputs are unobservable. A variety of inputs are utilized by the independent pricing sources including market based inputs, binding quotes, indicative quotes, and ongoing redemption and subscription activity. Inputs may be weighted differently for any security, and not all inputs are used for each security evaluation.
At December 31, 2022, the Company had $490 million of investments in money market government and U.S. treasury funds (Level 1) classified as Cash and cash equivalents in its Consolidated Balance Sheet, compared to $685 million at December 31, 2021. The money market funds had quoted market prices that are approximately at par.
Using quoted market prices and market interest rates, the Company determined that the fair value of long-term debt at December 31, 2022 was $5.9 billion, of which the Senior Convertible Notes were $1.3 billion (Level 2). The fair value of long-term debt at December 31, 2021 was 6.2 billion (Level 2). Since considerable judgment is required in interpreting market information, the fair value of the long-term debt is not necessarily indicative of the amount which could be realized in a current market exchange.
All other financial instruments are carried at cost, which is not materially different from the instruments’ fair values.