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Fair Value Measurements
 6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements We consider the carrying amounts of current assets and current liabilities to approximate their fair values because of the relatively short period of time between the origination of these instruments and their expected realization or payment. For our financial instruments measured at fair value on a recurring basis, we prioritize the inputs used in measuring fair value according to the three-tier fair value hierarchy. For a description of the methods and assumptions that we use to a) estimate the fair value; and b) determine the classification according to the fair value hierarchy for each financial instrument, refer to our 2019 Annual Report on Form 10-K, Note 4, “Fair Value Measurements.”
Our financial instruments measured at fair value on a recurring basis at June 30, 2020, were as follows:
Observable InputsDirectly or Indirectly Observable InputsUnobservable Inputs
Total(Level 1) (Level 2) (Level 3)
 (In millions)
Corporate debt securities$1,139  $—  $1,139  $—  
Mortgage-backed securities439  —  439  —  
Municipal securities176  —  176  —  
Asset-backed securities139  —  139  —  
Certificates of deposit7  —  7  —  
U.S. Treasury notes4  —  4  —  
Government-sponsored enterprise securities (“GSEs”)2  —  2  —  
Total$1,906  $—  $1,906  $—  
Our financial instruments measured at fair value on a recurring basis at December 31, 2019, were as follows:
Observable InputsDirectly or Indirectly Observable InputsUnobservable Inputs
Total(Level 1)(Level 2)(Level 3)
 (In millions)
Corporate debt securities$1,178  $—  $1,178  $—  
Mortgage-backed securities420  —  420  —  
Municipal securities78  —  78  —  
Asset-backed securities127  —  127  —  
Certificates of deposit1  —  1  —  
U.S. Treasury notes86  —  86  —  
GSEs49  —  49  —  
Other7  —  7  —  
Subtotal1,946  —  1,946  —  
Call option derivative asset29  —  —  29  
Total assets $1,975  $—  $1,946  $29  
Conversion option derivative liability$29  $—  $—  $29  
Total liabilities$29  $—  $—  $29  
The net changes in fair value of Level 3 financial instruments were insignificant to our results of operations for the six months ended June 30, 2020.
Derivatives
The following table summarizes the fair values and the presentation of our derivative financial instruments in the accompanying consolidated balance sheets:
Balance Sheet LocationJune 30,
2020		December 31,
2019
 (In millions)
Derivative asset:
Call optionCurrent assets: Prepaid expenses and other current assets$—  $29  
Derivative liability:
Conversion optionCurrent liabilities: Accounts payable, accrued liabilities and other$—  $29  
For additional description of our derivative financial instruments, see Note 11, “Debt,” and Note 12, “Derivatives,” in our 2019 Annual Report on Form 10-K. Our derivative financial instruments did not qualify for hedge treatment; therefore, the change in fair value of these instruments is recognized immediately in our consolidated statements of income, and reported in “Other expense (income), net.” Gains and losses for our derivative financial instruments are presented individually in the accompanying consolidated statements of cash flows, “Supplemental cash flow information.”
In the first quarter of 2020, we received $27 million for the settlement of the call option derivative asset, and we paid $39 million to settle the outstanding $12 million principal amount of the 1.125% Convertible Notes, and settle the related conversion option. For more information, refer to Notes 7, “Debt,” and 8, “Stockholders' Equity.”
Fair Value Measurements – Disclosure Only
The carrying amounts and estimated fair values of our notes payable are classified as Level 2 financial instruments. Fair value for these securities is determined using a market approach based on quoted market prices for similar securities in active markets or quoted prices for identical securities in inactive markets.
 June 30, 2020December 31, 2019
Carrying
Amount		Fair ValueCarrying
Amount		Fair Value
 (In millions)
4.375% Notes
$789  $802  $—  $—  
5.375% Notes
696  723  696  745  
4.875% Notes
327  333  327  340  
Term loan facility (1)
—  —  220  220  
1.125% Convertible Notes (1)
—  —  12  42  
Total$1,812  $1,858  $1,255  $1,347  
______________________
(1)For more information on debt repayments, refer to Note 7, “Debt.”