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FINANCIAL INSTRUMENTS AND RELATED FAIR VALUE MEASUREMENTS (Tables)
 12 Months Ended
Dec. 31, 2017
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)

 

2017

 

 

2016

 

 

2015

 

Sold receivables at beginning of year

 

$

68

 

 

$

81

 

 

$

104

 

Proceeds from sales of receivables

 

 

270

 

 

 

348

 

 

 

361

 

Cash collections (remitted to the owners of the receivables)

 

 

(270

)

 

 

(367

)

 

 

(384

)

Effect of currency exchange rate changes

 

 

3

 

 

 

6

 

 

 

—

 

Sold receivables at end of year

 

$

71

 

 

$

68

 

 

$

81

 

 
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,

2017

 

 

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

 

$

15

 

 

$

—

 

 

$

15

 

 

$

—

 

Interest rate hedges

 

 

4

 

 

 

—

 

 

 

4

 

 

 

—

 

Available-for-sale securities

 

 

8

 

 

 

8

 

 

 

—

 

 

 

—

 

Total assets

 

$

27

 

 

$

8

 

 

$

19

 

 

$

—

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency hedges

 

$

4

 

 

$

—

 

 

$

4

 

 

$

—

 

Contingent payments related to acquisitions

 

 

9

 

 

 

—

 

 

 

—

 

 

 

9

 

Total liabilities

 

$

13

 

 

$

—

 

 

$

4

 

 

$

9

 

 

 

 

 

 

 

 

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

 

 
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, 2015

 

$

20

 

Additions

 

 

—

 

Payments

 

 

(1

)

Net gains recognized in earnings

 

 

—

 

Fair value as of December 31, 2016

 

 

19

 

Additions

 

 

—

 

Payments

 

 

(9

)

Net gains recognized in earnings

 

 

(1

)

Fair value as of December 31, 2017

 

$

9

 

 
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, 2017

 

$

8

 

 

$

—

 

 

$

—

 

 

$

8

 

December 31, 2016

 

$

13

 

 

$

—

 

 

$

4

 

 

$

9

 

 
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)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

$

43

 

 

$

31

 

 

$

43

 

 

$

31

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current maturities of long-term debt and lease obligations

 

 

3

 

 

 

3

 

 

 

3

 

 

 

3

 

Long-term debt and lease obligations

 

 

3,509

 

 

 

2,779

 

 

 

3,595

 

 

 

2,756

 

 
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, 2017 and 2016.

 

 

 

 

 

 

 

Basis of fair value measurement

 

(in millions)

 

Balance as of

December 31,

2017

 

 

Quoted prices

in active

markets for

identical assets

(Level 1)

 

 

Significant

other

observable

inputs

(Level 2)

 

 

Significant

unobservable

inputs

(Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

$

43

 

 

$

—

 

 

$

—

 

 

$

43

 

Total assets

 

$

43

 

 

$

—

 

 

$

—

 

 

$

43

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current maturities of long-term debt and lease obligations

 

 

3

 

 

 

—

 

 

 

3

 

 

 

—

 

Long-term debt and lease obligations

 

 

3,595

 

 

 

—

 

 

 

3,595

 

 

 

—

 

Total liabilities

 

$

3,598

 

 

$

—

 

 

$

3,598

 

 

$

—

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

$

—