XML 61 R37.htm IDEA: XBRL DOCUMENT v3.6.0.2
FINANCIAL INSTRUMENTS AND RELATED FAIR VALUE MEASUREMENTS (Tables)
 12 Months Ended
Dec. 31, 2016
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Summary of Activity Relating to Securitization Arrangement

The following is a summary of the activity relating to the securitization arrangement.

 

as of and for the years ended December 31 (in millions)

 

2016

 

 

2015

 

 

2014

 

Sold receivables at beginning of year

 

$

81

 

 

$

104

 

 

$

114

 

Proceeds from sales of receivables

 

 

348

 

 

 

361

 

 

 

464

 

Cash collections (remitted to the owners of the receivables)

 

 

(367

)

 

 

(384

)

 

 

(459

)

Effect of currency exchange rate changes

 

 

6

 

 

 

—

 

 

 

(15

)

Sold receivables at end of year

 

$

68

 

 

$

81

 

 

$

104

 

 
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes the bases used to measure financial assets and liabilities that are carried at fair value on a recurring basis in the consolidated balance sheets.

 

 

 

 

 

 

Basis of fair value measurement

 

(in millions)

 

Balance as of

December 31,

2016

 

 

Quoted prices

in active

markets for

identical assets

(Level 1)

 

 

Significant

other

observable

inputs

(Level 2)

 

 

Significant

unobservable

inputs

(Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency hedges

 

$

23

 

 

$

—

 

 

$

23

 

 

$

—

 

Interest rate hedges

 

 

7

 

 

 

—

 

 

 

7

 

 

 

—

 

Available-for-sale securities

 

 

9

 

 

 

9

 

 

 

—

 

 

 

—

 

Total assets

 

$

39

 

 

$

9

 

 

$

30

 

 

$

—

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency hedges

 

$

3

 

 

$

—

 

 

$

3

 

 

$

—

 

Contingent payments related to acquisitions

 

 

19

 

 

 

—

 

 

 

—

 

 

 

19

 

Total liabilities

 

$

22

 

 

$

—

 

 

$

3

 

 

$

19

 

 

 

 

 

 

 

 

Basis of fair value measurement

 

(in millions)

 

Balance as of

December 31,

2015

 

 

Quoted prices

in active

markets for

identical assets

(Level 1)

 

 

Significant

other

observable

inputs

(Level 2)

 

 

Significant

unobservable

inputs

(Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency hedges

 

$

10

 

 

$

—

 

 

$

10

 

 

$

—

 

Interest rate hedges

 

 

46

 

 

 

—

 

 

 

46

 

 

 

—

 

Available-for-sale securities

 

 

5,162

 

 

 

14

 

 

 

5,148

 

 

 

—

 

Total assets

 

$

5,218

 

 

$

14

 

 

$

5,204

 

 

$

—

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency hedges

 

$

2

 

 

$

—

 

 

$

2

 

 

$

—

 

Contingent payments related to acquisitions

 

 

20

 

 

 

—

 

 

 

—

 

 

 

20

 

Total liabilities

 

$

22

 

 

$

—

 

 

$

2

 

 

$

20

 

 
Reconciliation of Fair Value Measurements that Use Significant Unobservable Inputs

The following table is a reconciliation of the fair value measurements that use significant unobservable inputs (Level 3), which consist of contingent payments related to acquisitions.

 

(in millions)

 

Contingent

payments

 

Fair value as of December 31, 2014

 

$

45

 

Additions

 

 

—

 

Payments

 

 

(3

)

Net gains recognized in earnings

 

 

(22

)

Fair value as of December 31, 2015

 

 

20

 

Additions

 

 

—

 

Payments

 

 

(1

)

Net gains recognized in earnings

 

 

—

 

Fair value as of December 31, 2016

 

$

19

 

 
Investments in Available-For-Sale Equity Securities

The following table provides information relating to the company’s investments in available-for-sale equity securities.

 

(in millions)

 

Amortized cost

 

 

Unrealized gains

 

 

Unrealized losses

 

 

Fair value

 

December 31, 2016

 

$

13

 

 

$

—

 

 

$

4

 

 

$

9

 

December 31, 2015

 

$

732

 

 

$

4,430

 

 

$

—

 

 

$

5,162

 

 
Book Values and Fair Values of Financial Instruments

the following table provides the values recognized in the consolidated balance sheets and the approximate fair values.

 

 

 

Book values

 

 

Approximate fair values

 

as of December 31 (in millions)

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

$

31

 

 

$

21

 

 

$

31

 

 

$

21

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term debt

 

 

—

 

 

 

1,775

 

 

 

—

 

 

 

1,775

 

Current maturities of long-term debt and lease obligations

 

 

3

 

 

 

810

 

 

 

3

 

 

 

818

 

Long-term debt and lease obligations

 

 

2,779

 

 

 

3,922

 

 

 

2,756

 

 

 

4,077

 

 
Summarization of Bases Used to Measure Fair Value of Financial Instruments

The following table summarizes the bases used to measure the approximate fair value of the financial instruments as of December 31, 2016 and 2015.

 

 

 

 

 

 

Basis of fair value measurement

 

(in millions)

 

Balance as of

December 31,

2016

 

 

Quoted prices

in active

markets for

identical assets

(Level 1)

 

 

Significant

other

observable

inputs

(Level 2)

 

 

Significant

unobservable

inputs

(Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

$

31

 

 

$

—

 

 

$

—

 

 

$

31

 

Total assets

 

$

31

 

 

$

—

 

 

$

—

 

 

$

31

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term debt

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Current maturities of long-term debt and lease obligations

 

 

3

 

 

 

—

 

 

 

3

 

 

 

—

 

Long-term debt and lease obligations

 

 

2,756

 

 

 

—

 

 

 

2,756

 

 

 

—

 

Total liabilities

 

$

2,759

 

 

$

—

 

 

$

2,759

 

 

$

—

 

 

 

 

 

 

 

Basis of fair value measurement

 

(in millions)

 

Balance as of

December 31,

2015

 

 

Quoted prices

in active

markets for

identical assets

(Level 1)

 

 

Significant

other

observable

inputs

(Level 2)

 

 

Significant

unobservable

inputs

(Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

$

21

 

 

$

—

 

 

$

2

 

 

$

19

 

Total assets

 

$

21

 

 

$

—

 

 

$

2

 

 

$

19

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term debt

 

$

1,775

 

 

$

—

 

 

$

1,775

 

 

$

—

 

Current maturities of long-term debt and lease obligations

 

 

818

 

 

 

—

 

 

 

818

 

 

 

—

 

Long-term debt and lease obligations

 

 

4,077

 

 

 

—

 

 

 

4,077

 

 

 

—

 

Total liabilities

 

$

6,670

 

 

$

—

 

 

$

6,670

 

 

$

—