FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2023

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

The following tables summarize our assets and liabilities that are measured at fair value on a recurring basis.


			Basis of fair value measurement
(in millions)	Balance as of December 31, 2023		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets
Foreign exchange contracts	$	51	$	—	$	51	$	—

Available-for-sale debt securities	22		—		—		22
Marketable equity securities	44		44		—		—
Total	$	117	$	44	$	51	$	22
Liabilities
Foreign exchange contracts	$	5	$	—	$	5	$	—

Contingent payments related to acquisitions	14		—		—		14
Total	$	19	$	—	$	5	$	14


			Basis of fair value measurement
(in millions)	Balance as of December 31, 2022		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets
Foreign exchange contracts	$	14	$	—	$	14	$	—
Available-for-sale debt securities	47		—		—		47
Marketable equity securities	32		32		—		—
Total	$	93	$	32	$	14	$	47
Liabilities
Foreign exchange contracts	$	12	$	—	$	12	$	—

Contingent payments related to acquisitions	84		—		—		84
Total	$	96	$	—	$	12	$	84

Reconciliation of Fair Value Measurements that Use Significant Unobservable Inputs

The following table is a reconciliation of recurring fair value measurements that use significant unobservable inputs (Level 3), which consist of contingent payments related to acquisitions and available-for-sale debt securities.


	2023				2022
as of and for the years ended December 31 (in millions)	Contingent payments related to acquisitions		Available-for-sale debt securities		Contingent payments related to acquisitions		Available-for-sale debt securities
Fair value at beginning of period	$	84	$	47	$	143	$	30
Additions	—		2		—		23
Change in fair value recognized in earnings	(19)		(22)		(39)		—
Change in fair value recognized in AOCI	—		—		—		4
Payments	(51)		—		(20)		—
Transfers out of Level 3	—		(5)		—		(10)

Fair value at end of period	$	14	$	22	$	84	$	47

Book Values and Fair Values of Financial Instruments

For these financial instruments, the following table provides the values recognized in the consolidated balance sheets and the estimated fair values.


	Book values				Fair values(a)
as of December 31 (in millions)	2023		2022		2023		2022
Liabilities
Short-term debt	$	—	$	299	$	—	$	299
Current maturities of long-term debt and finance lease obligations	2,668		1,105		2,621		1,079
Long-term debt and finance lease obligations	11,130		15,232		10,067		13,657

(a) These fair value amounts are classified as Level 2 within the fair value hierarchy as they are estimated based on observable inputs.