XML 35 R10.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Financial Instruments and Fair Value Measurements | 9 Months Ended
--- | ---
Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract] |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Fair Value of Financial Instruments Fair value is defined as an exit price, representing the amount 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. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. Our financial assets recorded at fair value on a recurring basis comprise of cash equivalents, available-for-sale marketable securities and certificates of deposits. We measure certain financial assets at fair value for disclosure purposes, as well as on a nonrecurring basis when they are deemed to be other-than-temporarily impaired. Our other current financial assets and our other current financial liabilities, including cash and cash equivalents, restricted cash and cash equivalents, WSE related assets and liabilities excluding insurance loss reserves, line of credit and accrued corporate wages, have fair values that approximate their carrying value due to their short-term nature. Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market to measure fair value, summarized as follows:
• | Level 1—observable inputs for identical assets or liabilities, such as quoted prices in active markets,
• | Level 2—inputs other than the quoted prices in active markets that are observable either directly or indirectly,
• | Level 3—unobservable inputs in which there is little or no market data, which requires that we develop our own assumptions.
The fair value hierarchy requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. We classify our cash equivalents, debt securities and notes payable in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement in its entirety. We use an independent pricing source to determine the fair value of our available-for-sale securities included as Level 2. For purposes of valuing our securities, the independent pricing source utilizes the following market approach by investment class:
• | Money market funds are valued on a spread or discount rate basis,
• | Asset-backed securities are valued using historical and projected prepayments speed and loss scenarios and spreads obtained from the new issue market, dealer quotes and trade prices,
• | U.S. treasuries, corporate bonds, and other debt securities are priced based on dealer quotes from multiple sources, and
• | U.S. government agencies and government sponsored agencies are priced using LIBOR/swap curves, credit spreads and interest rate volatilities.
We have not adjusted the prices obtained from the independent pricing service and we believe the prices received from the independent pricing service are representative of the prices that would be received to sell the assets at the measurement date (exit price). We did not have any Level 3 financial instruments as of September 30, 2018 and December 31, 2017. There were no transfers between levels as of September 30, 2018 and December 31, 2017. Fair Value Measurements on a Recurring Basis The following table summarizes our financial instruments by significant categories and fair value measurement on a recurring basis as of September 30, 2018 and December 31, 2017.
(in millions) | Level 1 | Level 2 | Total
September 30, 2018 |  |  |
Cash equivalents: |  |  |
Money market funds | $ | 3 |  | $ | — |  | $ | 3 |
Total cash equivalents | 3 |  | — |  | 3 |
Investments: |  |  |
Asset-backed securities | — |  | 35 |  | 35 |
Corporate bonds | — |  | 86 |  | 86 |
U.S. government agencies and government-sponsored agencies | — |  | 8 |  | 8 |
U.S. treasuries | — |  | 29 |  | 29 |
Other debt securities | — |  | 10 |  | 10 |
Total investments | — |  | 168 |  | 168 |
Restricted cash equivalents: |  |  |
Money market mutual funds | 241 |  | — |  | 241 |
Commercial paper | 20 |  | — |  | 20 |
Total restricted cash equivalents | 261 |  | — |  | 261 |
Restricted investments: |  |  |
U.S. treasuries | — |  | 5 |  | 5 |
Exchange traded fund | 1 |  | — |  | 1 |
Certificate of deposit | — |  | 2 |  | 2 |
Total restricted investments | 1 |  | 7 |  | 8 |
Total investments and restricted cash equivalents and investments | $ | 265 |  | $ | 175 |  | $ | 440 |
December 31, 2017 |  |  |
Restricted cash equivalents: |  |  |
Money market mutual funds | $ | 199 |  | $ | — |  | $ | 199 |
Commercial paper | 21 |  | — |  | 21 |
Total restricted cash equivalents | 220 |  | — |  | 220 |
Restricted investments: |  |  |
U.S. treasuries | 37 |  | — |  | 37 |
Exchange traded fund | 1 |  | — |  | 1 |
Certificate of deposit | — |  | 2 |  | 2 |
Total restricted investments | 38 |  | 2 |  | 40 |
Total restricted cash equivalents and investments | $ | 258 |  | $ | 2 |  | $ | 260 |
Fair Value of Financial Instruments Disclosure Notes Payable The carrying value of our notes payable at September 30, 2018 and December 31, 2017 was $420 million and $425 million, respectively. The estimated fair values of our notes payable at September 30, 2018 and December 31, 2017 were $419 million and $428 million, respectively. On September 30, 2018 we changed our methodology of estimating the fair values of our notes payable to a discounted cash flow, which incorporates credit spreads and market interest rates to estimate the fair value and is considered Level 3 in the hierarchy for fair value measurement. The valuation at December 31, 2017 is considered Level 2 in the hierarchy for fair value measurement and is based on quoted market prices.

X
- 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
Name: | us-gaap_FinancialInstrumentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

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