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Fair Value Measurements | 12 Months Ended
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Dec. 31, 2022
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Fair Value Measurements Fair Value Hierarchy The Company uses a three-level fair value hierarchy that categorizes assets and liabilities measured at fair value based on the observability of the inputs utilized in the valuation. The fair value hierarchy gives the highest priority to the quoted prices in active markets for identical assets and liabilities and lowest priority to unobservable inputs. •Level 1 – Financial assets and liabilities whose values are based on unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access. •Level 2 – Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable for substantially the full term of the asset or liability. •Level 3 – Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Assets which are valued at net asset value per share ("NAV"), or its equivalent, as a practical expedient are reported outside the fair value hierarchy but are included in the total assets for reporting and reconciliation purposes. The fair value hierarchy for assets and liabilities measured at fair value on a recurring basis are as follows:
|  | December 31, 2022
(In millions) |  | Level 1 |  | Level 2 |  | Level 3 |  | NAV |  | Total
Asset Category: |  |  |  |  |  |  |  |  |  |
Retirement plan assets |  | $ | 7 |  |  | $ | 152 |  |  | $ | 18 |  |  | $ | 512 |  |  | $ | 689 |
Interest rate swaps |  | $ | — |  |  | $ | 10 |  |  | $ | — |  |  | $ | — |  |  | $ | 10 |
Liability Category: |  |  |  |  |  |  |  |  |  |
Cross currency swaps |  | $ | — |  |  | $ | 8 |  |  | $ | — |  |  | $ | — |  |  | $ | 8 |
|  | December 31, 2021
(In millions) |  | Level 1 |  | Level 2 |  | Level 3 |  | NAV |  | Total
Asset Category: |  |  |  |  |  |  |  |  |  |
Retirement plan assets |  | $ | 11 |  |  | $ | 303 |  |  | $ | 18 |  |  | $ | 619 |  |  | $ | 951 |
Cross currency swaps |  | $ | — |  |  | $ | 2 |  |  | $ | — |  |  | $ | — |  |  | $ | 2 |
Liability Category: |  |  |  |  |  |  |  |  |  |
Cross currency swaps |  | $ | — |  |  | $ | 9 |  |  | $ | — |  |  | $ | — |  |  | $ | 9 |
Interest rate swaps |  | $ | — |  |  | $ | 4 |  |  | $ | — |  |  | $ | — |  |  | $ | 4 |
Cross currency swaps and interest rate swaps are valued using industry-standard models that consider various assumptions, including time value, volatility factors, current market, and contractual prices for the underlying and non-performance risk. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace. The carrying amounts of all other non-retirement plan financial instruments approximate their fair values due to their relatively short-term maturities. Retirement plan assets pertain to a diverse set of securities and investment vehicles held by the Company’s defined benefit pension plans. These assets possess varying fair value measurement attributes such that certain portions are categorized within each level of the fair value hierarchy as based upon the level of observability of the inputs utilized in the valuation of the particular asset. The Company may, as a practical expedient, estimate the fair value of certain investments using NAV of the investment as of the reporting date. This practical expedient generally deals with investments that permit an investor to redeem its investment directly with, or receive distributions from, the investee at times specified in the investee’s governing documents. Examples of these investments (often referred to as alternative investments) may include ownership interests in real assets, certain credit strategies, and hedging and diversifying strategies. They are commonly in the form of limited partnership interests. The Company uses NAV as a practical expedient when valuing investments in alternative asset classes and funds which are a limited partnership or similar investment vehicle. Derivative financial instruments Derivative financial instruments are measured at fair value on a recurring basis under an income approach using industry-standard models that consider various assumptions, including time value, volatility factors, current market and contractual prices for the underlying, and non-performance risk. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument or may derived from observable data. Accordingly, the Company's currency instruments are classified as Level 2, "Other Observable Inputs" in the fair value hierarchy. Retirement Plan Assets Retirement plan assets consist of the following: •Short-term investments, such as cash and cash equivalents, are immediately available or are highly liquid and not subject to significant market risk. Assets comprised of cash, short-term sovereign debt, or high credit-quality money market securities and instruments held directly by the plan are categorized as Level 1. Assets in a registered money market fund are reported as registered investment companies. Assets in a short-term investment fund ("STIF") are categorized as Level 2. Cash and cash equivalent assets denominated in currencies other than the U.S. dollar are reflected in U.S. dollar terms at the exchange rate prevailing at the balance sheet dates. •Registered investment companies are mutual funds that are registered with the Securities and Exchange Commission. Mutual funds may invest in various types of securities or combinations thereof including equities, fixed income securities, and other assets that are subject to varying levels of market risk and are categorized as Level 2. The share prices for mutual funds are published at the close of each business day. •Treasury and government securities consist of debt securities issued by the U.S. and non-U.S. sovereign governments and agencies, thereof. Assets with a high degree of liquidity and frequent trading activity are categorized as Level 1 while others are valued by independent valuation firms that employ standard methodologies associated with valuing fixed-income securities and are categorized as Level 2. •Corporate debt securities consist of fixed income securities issued by corporations. Assets with a high degree of liquidity and frequent trading activity are categorized as Level 1 while others are valued by independent valuation firms that employ standard methodologies associated with valuing fixed-income securities and are categorized as Level 2. •Bond funds are comprised of corporate and municipal bonds. These securities are generally priced by independent pricing services. The spreads are sourced from broker/dealers, trade prices and the new issue market. As the significant inputs used to price corporate bonds are observable market inputs, the fair values of corporate bonds are included in the Level 2 fair value hierarchy. •Common and preferred stocks consist of shares of equity securities. These are directly-held assets that are generally publicly traded in regulated markets that provide readily available market prices and are categorized as Level 1. •Common trust funds are comprised of shares or units in commingled funds that are not publicly traded. The underlying assets in these funds, including equities and fixed income securities, are generally publicly traded in regulated markets that provide readily available market prices. The entire balance of an investment in a common trust fund that does not have a readily observable market prices as available on a third-party information source, notwithstanding whether the investment has daily liquidity, is categorized as Level 2; unless the investment fund has investment holdings significant to its valuation that are considered as Level 3; or the fund is considered as an alternative strategy (including hedge and diversifying strategies) for which valuation is established by NAV as a practical expedient. •Liability Driven Investments (“LDI”) utilizes certain funds that invest in instruments and securities, interest-rate swaps and other financial derivative instruments intended to hedge a portion of the changes in pension liabilities associated with changes in the actuarial discount rate as applied to the plan’s liabilities. The valuation methodology of the funds that invest in fixed income derivative instruments, the assets contained in this category utilize standard pricing models associated with fixed income derivative instruments and are categorized as Level 2. •Other investments include miscellaneous assets and liabilities and are primarily comprised of pending transactions and collateral settlements and are categorized as Level 1, Level 2, and NAV. •Limited partnerships and hedge funds represent investment vehicles with underlying exposures in alternative credit, hedge and diversifying strategies (including hedge fund of funds), real assets, and certain equity exposures. The underlying assets in these funds may include securities transacted in active markets as well as other assets that have values less readily observable and may require valuation techniques that require inputs that are not readily observable. Investment in these funds may be subject to a specific notice period prior to the intended transaction date. In addition, transactions in these funds may require longer settlement terms than traditional mutual funds. These assets are valued based on their respective NAV as a practical expedient to estimate fair value due to the absence of readily available market prices. •Insurance contracts are reported at cash surrender value and have significant unobservable inputs and are categorized as Level 3. The fair values of the Company’s U.S. retirement plan assets are as follows:
(In millions) |  | December 31, 2022
Asset Category |  | Level 1 |  | Level 2 |  | NAV |  | Total
Common trust funds |  | $ | — |  |  | $ | — |  |  | $ | 343 |  |  | $ | 343 |
LDI |  | — |  |  | 55 |  |  | — |  |  | 55 |
Limited partnerships and hedge funds |  | — |  |  | — |  |  | 124 |  |  | 124 |
Cash and cash equivalents |  | — |  |  | 10 |  |  | — |  |  | 10 |
Total |  | $ | — |  |  | $ | 65 |  |  | $ | 467 |  |  | $ | 532 |
(In millions) |  | December 31, 2021
Asset Category |  | Level 1 |  | Level 2 |  | NAV |  | Total
Common trust funds |  | $ | — |  |  | $ | — |  |  | $ | 463 |  |  | $ | 463 |
LDI |  | — |  |  | 93 |  |  | — |  |  | 93 |
Limited partnerships and hedge funds |  | — |  |  | — |  |  | 127 |  |  | 127 |
Cash and cash equivalents |  | — |  |  | 10 |  |  | — |  |  | 10 |
Total |  | $ | — |  |  | $ | 103 |  |  | $ | 590 |  |  | $ | 693 |
The fair values of the Company’s Non-U.S. retirement plan assets are as follows:
(In millions) |  | December 31, 2022
Asset Category |  | Level 1 |  | Level 2 |  | Level 3 |  | NAV |  | Total
Treasury and government securities |  | $ | — |  |  | $ | 8 |  |  | $ | — |  |  | $ | — |  |  | $ | 8 |
Cash and cash equivalents |  | 3 |  |  | — |  |  | — |  |  | — |  |  | 3 |
Corporate debt securities |  | — |  |  | 9 |  |  | — |  |  | — |  |  | 9 |
Common and preferred stock |  | 3 |  |  | — |  |  | — |  |  | — |  |  | 3 |
Common trust funds |  | — |  |  | 1 |  |  | — |  |  | — |  |  | 1 |
Limited partnerships |  | — |  |  | — |  |  | — |  |  | 10 |  |  | 10 |
Insurance contracts |  | — |  |  | — |  |  | 18 |  |  | — |  |  | 18 |
Bond funds |  | — |  |  | 59 |  |  | — |  |  | — |  |  | 59 |
Other investment funds |  | 1 |  |  | 10 |  |  | — |  |  | 35 |  |  | 46 |
Total |  | $ | 7 |  |  | $ | 87 |  |  | $ | 18 |  |  | $ | 45 |  |  | $ | 157 |
(In millions) |  | December 31, 2021
Asset Category |  | Level 1 |  | Level 2 |  | Level 3 |  | NAV |  | Total
Registered investment companies |  | $ | — |  |  | $ | 21 |  |  | $ | — |  |  | $ | — |  |  | $ | 21 |
Treasury and government securities |  | — |  |  | 10 |  |  | — |  |  | — |  |  | 10 |
Cash and cash equivalents |  | 9 |  |  | 1 |  |  | — |  |  | — |  |  | 10 |
Corporate debt securities |  | — |  |  | 7 |  | — |  |  | — |  |  | 7 |
Common and preferred stock |  | 2 |  |  | — |  |  | — |  |  | — |  |  | 2 |
Common trust funds |  | — |  |  | 138 |  |  | — |  |  | 5 |  |  | 143 |
Limited partnerships |  | — |  |  | — |  |  | — |  |  | 24 |  |  | 24 |
Insurance contracts |  | — |  |  | — |  |  | 18 |  |  | — |  |  | 18 |
Derivative instruments |  | — |  |  | 23 |  |  | — |  |  | — |  |  | 23 |
Total |  | $ | 11 |  |  | $ | 200 |  |  | $ | 18 |  |  | $ | 29 |  |  | $ | 258 |
The change in fair value of insurance contracts which used significant unobservable inputs was primarily due to purchases during the years ended December 31, 2022. Items Measured at Fair Value on a Non-recurring Basis The Company measures certain assets and liabilities at fair value on a non-recurring basis, which are not included in the table above. As these non-recurring fair value measurements are generally determined using unobservable inputs, these fair value measurements are classified within Level 3 of the fair value hierarchy. The Company evaluates its long-lived assets for impairment whenever events or circumstances indicate the value of these long-lived asset groups are not recoverable. In 2022, due to the geopolitical situation in Eastern Europe the Company elected to close the Russian facility resulting in a non-cash impairment charge of $5 million to fully impair property and equipment and reduce inventory to its net realizable value. During 2021, the Company recognized an impairment charge of $9 million related to its long-lived asset group in Brazil. The fair value measurements related to the long-lived asset group rely primarily on Company-specific inputs and the Company’s assumptions about the use of the assets, as observable inputs are not available (Level 3). To determine the fair value of the long-lived asset group, the Company utilized a cost and market approach, measuring fair value on the standalone basis value premise. The Company believes the assumptions and estimates used to determine the estimated fair value of the long-lived asset group is reasonable; however, these estimates and assumptions are subject to a high degree of uncertainty. Due to many variables inherent in estimating fair value, differences in assumptions could have a material effect on the analysis. As the net carrying value of the long-lived asset group in Brazil exceeded its fair values, the Company recorded a long-lived asset impairment charge of $9 million related to property and equipment during the year ended December 31, 2021. No impairment charges were recorded for the year ended December 31, 2020. Fair Value of Debt The fair value of debt was $336 million and $354 million as of December 31, 2022 and 2021, respectively. Fair value estimates were based on quoted market prices or current rates for the same or similar issues or on the current rates offered to the Company for debt of the same remaining maturities. Accordingly, the Company's debt is classified as Level 1 "Market Prices" and Level 2 "Other Observable Inputs" in the fair value hierarchy.

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- 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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