XML 26 R20.htm IDEA: XBRL DOCUMENT
v3.25.1

Fair Value Measurements | 3 Months Ended
--- | ---
Mar. 31, 2025
Fair Value Disclosures [Abstract] |
Fair Value Measurements | NOTE K - Fair Value Measurements Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs to valuation techniques used to measure fair value are either observable or unobservable. These inputs have been categorized into the fair value hierarchy described below. Level 1 – Valuations are based on quoted prices that the Company has the ability to obtain in actively traded markets for identical assets or liabilities. Since valuations are based on quoted prices that are readily and regularly available in an active market or exchange traded market, valuation of these instruments does not require a significant degree of judgment. Level 2 – Valuations are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 – Valuations are based on model-based techniques for which some or all of the assumptions are obtained from indirect market information that is significant to the overall fair value measurement and which require a significant degree of management judgment. The Company uses the following methods and assumptions to measure fair value for assets and liabilities subject to recurring fair value measurements. Marketable Debt Securities: The Company’s marketable debt securities consist of municipal bonds, government obligations, investment-grade corporate obligations, commercial paper, asset-backed securities and term deposits. The fair value of U.S. government obligations is determined using the market approach and is based on quoted prices in active markets and are categorized as Level 1. The fair value of non-U.S. government bonds, municipal bonds, corporate bonds, asset-backed securities, commercial paper and term deposits is determined using the market approach and is primarily based on matrix pricing as a practical expedient which does not rely exclusively on quoted prices for a specific security. Significant inputs used to determine fair value include interest rates, yield curves, credit rating of the security and other observable market information and are categorized as Level 2. Marketable Equity Securities: The Company’s equity securities are traded on active exchanges and are classified as Level 1. Derivative Financial Instruments: The Company’s derivative contracts consist of interest-rate swaps, cross currency swaps, foreign currency exchange and commodity contracts. These derivative contracts are traded over the counter, and their fair value is determined using industry standard valuation models, which are based on the income approach (i.e., discounted cash flows). The significant observable inputs into the valuation models include interest rates, yield curves, currency exchange rates, credit default swap spreads, forward rates and commodity prices and are categorized as Level 2. Assets and Liabilities Subject to Recurring Fair Value Measurement The Company’s assets and liabilities subject to recurring fair value measurements are either Level 1 or Level 2 as follows:
At March 31, 2025 |  | LEVEL 1 |  |  | LEVEL 2 |  |  | TOTAL |
Assets: |  |  |  |  |  |  |  |  |
Marketable debt securities |  |  |  |  |  |  |  |  |
U.S. tax-exempt securities |  |  |  |  | $ | 296.8 |  |  | $ | 296.8 |
U.S. taxable municipal / non-U.S. provincial bonds |  |  |  |  |  | 402.2 |  |  |  | 402.2 |
U.S. corporate securities |  |  |  |  |  | 908.6 |  |  |  | 908.6 |
U.S. government securities |  | $ | 242.4 |  |  |  |  |  |  | 242.4 |
Non-U.S. corporate securities |  |  |  |  |  | 609.2 |  |  |  | 609.2 |
Non-U.S. government securities |  |  |  |  |  | 179.4 |  |  |  | 179.4 |
Other debt securities |  |  |  |  |  | 181.2 |  |  |  | 181.2 |
Total marketable debt securities |  | $ | 242.4 |  |  | $ | 2,577.4 |  |  | $ | 2,819.8 |
Marketable equity securities |  | $ | 6.7 |  |  |  |  |  | $ | 6.7 |
Total marketable securities |  | $ | 249.1 |  |  | $ | 2,577.4 |  |  | $ | 2,826.5 |
Derivatives |  |  |  |  |  |  |  |  |
Cross currency swaps |  |  |  |  | $ | 75.6 |  |  | $ | 75.6 |
Interest-rate swaps |  |  |  |  |  | 9.2 |  |  |  | 9.2 |
Foreign-exchange contracts |  |  |  |  |  | 9.9 |  |  |  | 9.9 |
Commodity contracts |  |  |  |  |  | .2 |  |  |  | .2 |
Total derivative assets |  |  |  |  | $ | 94.9 |  |  | $ | 94.9 |
Liabilities: |  |  |  |  |  |  |  |  |
Derivatives |  |  |  |  |  |  |  |  |
Cross currency swaps |  |  |  |  | $ | 46.3 |  |  | $ | 46.3 |
Interest-rate swaps |  |  |  |  |  | 6.6 |  |  |  | 6.6 |
Foreign-exchange contracts |  |  |  |  |  | 38.7 |  |  |  | 38.7 |
Commodity contracts |  |  |  |  |  | 1.4 |  |  |  | 1.4 |
Total derivative liabilities |  |  |  |  | $ | 93.0 |  |  | $ | 93.0 |
At December 31, 2024 |  | LEVEL 1 |  |  | LEVEL 2 |  |  | TOTAL |
Assets: |  |  |  |  |  |  |  |  |
Marketable debt securities |  |  |  |  |  |  |  |  |
U.S. tax-exempt securities |  |  |  |  | $ | 303.7 |  |  | $ | 303.7 |
U.S. taxable municipal / non-U.S. provincial bonds |  |  |  |  |  | 380.1 |  |  |  | 380.1 |
U.S. corporate securities |  |  |  |  |  | 864.2 |  |  |  | 864.2 |
U.S. government securities |  | $ | 285.7 |  |  |  |  |  |  | 285.7 |
Non-U.S. corporate securities |  |  |  |  |  | 608.1 |  |  |  | 608.1 |
Non-U.S. government securities |  |  |  |  |  | 164.3 |  |  |  | 164.3 |
Other debt securities |  |  |  |  |  | 166.4 |  |  |  | 166.4 |
Total marketable debt securities |  | $ | 285.7 |  |  | $ | 2,486.8 |  |  | $ | 2,772.5 |
Marketable equity securities |  | $ | 6.3 |  |  |  |  |  | $ | 6.3 |
Total marketable securities |  | $ | 292.0 |  |  | $ | 2,486.8 |  |  | $ | 2,778.8 |
Derivatives |  |  |  |  |  |  |  |  |
Cross currency swaps |  |  |  |  | $ | 121.3 |  |  | $ | 121.3 |
Interest-rate swaps |  |  |  |  |  | 10.9 |  |  |  | 10.9 |
Foreign-exchange contracts |  |  |  |  |  | 74.8 |  |  |  | 74.8 |
Total derivative assets |  |  |  |  | $ | 207.0 |  |  | $ | 207.0 |
Liabilities: |  |  |  |  |  |  |  |  |
Derivatives |  |  |  |  |  |  |  |  |
Cross currency swaps |  |  |  |  | $ | 28.7 |  |  | $ | 28.7 |
Interest-rate swaps |  |  |  |  |  | 12.4 |  |  |  | 12.4 |
Foreign-exchange contracts |  |  |  |  |  | 5.6 |  |  |  | 5.6 |
Total derivative liabilities |  |  |  |  | $ | 46.7 |  |  | $ | 46.7 |
Fair Value Disclosure of Other Financial Instruments For financial instruments that are not recognized at fair value, the Company uses the following methods and assumptions to determine the fair value. These instruments are categorized as Level 2, except cash which is categorized as Level 1 and fixed rate loans which are categorized as Level 3. Cash and Cash Equivalents: Carrying amounts approximate fair value. Financial Services Net Receivables: For floating-rate loans, floating-rate wholesale financing, and operating lease and other trade receivables, carrying values approximate fair values. For fixed rate loans, fair values are estimated using the income approach by discounting cash flows to their present value based on assumptions regarding the credit and market risks to approximate current rates for comparable loans. Finance lease receivables and related allowance for credit losses have been excluded from the accompanying table. Debt: The carrying amounts of Financial Services commercial paper, variable rate bank loans and variable rate term notes approximate fair value. For fixed rate debt, fair values are estimated using the income approach by discounting cash flows to their present value based on current rates for comparable debt. The Company’s estimate of fair value for fixed rate loans and debt that are not carried at fair value was as follows:
|  | March 31, 2025 |  |  | December 31, 2024 |
|  | CARRYING |  |  | FAIR |  |  | CARRYING |  |  | FAIR |
|  | AMOUNT |  |  | VALUE |  |  | AMOUNT |  |  | VALUE |
Assets: |  |  |  |  |  |  |  |  |  |  |  |
Financial Services fixed rate loans |  | $ | 9,178.1 |  |  | $ | 9,226.4 |  |  | $ | 8,900.6 |  |  | $ | 8,889.3 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Financial Services fixed rate debt |  |  | 9,882.3 |  |  |  | 9,934.3 |  |  |  | 9,922.2 |  |  |  | 9,917.6 |

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration