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Fair Value | 6 Months Ended
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Jun. 29, 2024
Fair Value Disclosures [Abstract] |
Fair Value | Fair Value The estimated fair value of our financial instruments held, and when applicable, issued to finance our operations, is summarized below. Certain estimates and judgments were required to develop the fair value amounts. The fair value amounts shown below are not necessarily indicative of the amounts that we would realize upon disposition, nor do they indicate our intent or ability to dispose of the financial instrument. Assets and liabilities that are carried at fair value are required to be classified and disclosed in one of the following three categories: Level 1—quoted market prices in active markets for identical assets and liabilities Level 2—observable market-based inputs or unobservable inputs that are corroborated by market data Level 3—unobservable inputs that are not corroborated by market data Financial and non-financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. There were no changes in the methodologies used in our valuation practices as of June 29, 2024. The fair values of long-term debt instruments were determined using quoted market prices in inactive markets or discounted cash flows based upon current observable market interest rates and therefore were classified as Level 2 measurements in the fair value hierarchy. The following table provides a summary of the carrying amount and fair value of outstanding debt:
| June 29, 2024 |  | December 31, 2023
(in millions) | Carrying Value |  | Fair Value |  | Carrying Value |  | Fair Value
Debt |  |  |  |  |  |  |
4.000% Senior Notes due 2029 | $ | 300 |  |  | $ | 265 |  |  | $ | 300 |  |  | $ | 266 |
Variable rate A&R Term B Facility | 1,714 |  |  | 1,717 |  |  | 1,119 |  |  | 1,122 |
Total debt | $ | 2,014 |  |  | $ | 1,982 |  |  | $ | 1,419 |  |  | $ | 1,388 |
Refer to Note 12. Long-Term Debt to the Unaudited Consolidated Financial Statements for further discussion. Interest Rate Risk—We have exposure to movements in interest rates associated with cash and borrowings. We have entered, and in the future may enter, into various interest rate protection agreements in order to limit the impact of movements in interest rates. The fair values of interest rate swaps have been determined based on market value equivalents at the balance sheet date, taking into account the current interest rate environment and therefore, were classified as Level 2 measurements in the fair value hierarchy. The following table provides a summary of the carrying amount and fair value of our interest rate derivatives:
| June 29, 2024 |  | December 31, 2023
(in millions) | Carrying Value |  |  |  | Fair Value |  | Carrying Value |  |  |  | Fair Value
Assets: |  |  |  |  |  |  |  |  |  |  |
Interest rate derivatives | $ | 27 |  |  |  |  | $ | 27 |  |  | $ | 30 |  |  |  |  | $ | 30 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |
Interest rate derivatives | 6 |  |  |  |  | 6 |  |  | — |  |  |  |  | — |
Total, net | $ | 21 |  |  |  |  | $ | 21 |  |  | $ | 30 |  |  |  |  | $ | 30 |
Refer to Note 13. Derivative Financial Instruments to the Unaudited Consolidated Financial Statements for further discussion. There are no material Level 1 or Level 3 assets or liabilities for the periods presented. The carrying amounts of cash and cash equivalents, accounts receivable, other current assets, accounts payable, accrued liabilities approximate fair value because of the short-term maturity of these amounts.

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- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
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