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FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2024

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, 2024		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	$	7	$	—	$	7	$	—

Available-for-sale debt securities	1		—		—		1
Marketable equity securities	13		13		—		—
Total	$	21	$	13	$	7	$	1
Liabilities
Foreign exchange contracts	$	2	$	—	$	2	$	—

Contingent payments related to acquisitions	12		—		—		12
Total	$	14	$	—	$	2	$	12


			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	$	45	$	—	$	45	$	—
Available-for-sale debt securities	1		—		—		1
Marketable equity securities	44		44		—		—
Total	$	90	$	44	$	45	$	1
Liabilities
Foreign exchange contracts	$	5	$	—	$	5	$	—

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

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.


	2024				2023
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	$	14	$	1	$	84	$	27

Change in fair value recognized in earnings	—		—		(19)		(21)

Payments	(2)		—		(51)		—
Transfers out of Level 3	—		—		—		(5)

Fair value at end of period	$	12	$	1	$	14	$	1

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)	2024		2023		2024		2023
Liabilities
Short-term debt	$	2,126	$	—	$	2,126	$	—
Current maturities of long-term debt and finance lease obligations	626		2,667		619		2,621
Long-term debt and finance lease obligations	10,374		11,089		9,295		10,026

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

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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