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Fair Value Measurements
12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements
7)
Fair Value Measurements

In accordance with the provisions of fair value accounting, a fair value measurement assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability and defines fair value based upon an exit price model.

The fair value measurement guidance establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value:

 

Level 1

 

Quoted prices in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2

 

Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments or securities or derivative contracts that are valued using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data.

Level 3

 

Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the Company categorizes such assets and liabilities based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset.

Assets and liabilities of the Company measured at fair value on a recurring basis as of December 31, 2022, are summarized as follows:

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

Description

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

60

 

 

$

60

 

 

$

 

 

$

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

Time deposits and certificates of deposit

 

 

1

 

 

 

 

 

 

1

 

 

 

 

Group insurance contracts

 

 

6

 

 

 

 

 

 

6

 

 

 

 

Derivatives

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange forward contracts

 

 

7

 

 

 

 

 

 

7

 

 

 

 

Interest rate hedge-non-current

 

 

104

 

 

 

 

 

 

104

 

 

 

 

Pension and deferred compensation plan assets

 

 

17

 

 

 

 

 

 

17

 

 

 

 

Total assets

 

$

195

 

 

$

60

 

 

$

135

 

 

$

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange forward contracts

 

$

8

 

 

$

 

 

$

8

 

 

$

 

Total liabilities

 

$

8

 

 

$

 

 

$

8

 

 

$

 

Reported as follows:

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

60

 

 

$

60

 

 

$

 

 

$

 

Short-term investments

 

 

1

 

 

 

 

 

 

1

 

 

 

 

Other current assets

 

 

8

 

 

 

 

 

 

8

 

 

 

 

Total current assets

 

$

69

 

 

$

60

 

 

$

9

 

 

$

 

Other assets

 

$

126

 

 

$

 

 

$

126

 

 

$

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Other current liabilities

 

$

8

 

 

$

 

 

$

8

 

 

$

 

 

Assets and liabilities of the Company measured at fair value on a recurring basis as of December 31, 2021, are summarized as follows:

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

Description

 

December 31, 2021

 

 

Quoted Prices in
Active Markets for
Identical Assets
(Level 1)

 

 

Significant Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

55

 

 

$

55

 

 

$

 

 

$

 

U.S. treasury obligations

 

 

175

 

 

 

 

 

 

175

 

 

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

Time deposits and certificates of deposit

 

 

22

 

 

 

 

 

 

22

 

 

 

 

Commercial paper

 

 

42

 

 

 

 

 

 

42

 

 

 

 

U.S. treasury obligations

 

 

12

 

 

 

 

 

 

12

 

 

 

 

U.S. agency obligations

 

 

1

 

 

 

 

 

 

1

 

 

 

 

Group insurance contracts

 

 

6

 

 

 

 

 

 

6

 

 

 

 

Derivatives-foreign exchange forward contracts

 

 

4

 

 

 

 

 

 

4

 

 

 

 

Derivatives-foreign currency options

 

 

3

 

 

 

 

 

 

3

 

 

 

 

Derivatives-interest rate hedge-non-current

 

 

9

 

 

 

 

 

 

9

 

 

 

 

Funds in investments and other assets:

 

 

 

 

 

 

 

 

 

 

 

 

Israeli pension assets

 

 

20

 

 

 

 

 

 

20

 

 

 

 

Deferred compensation plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds and exchange traded funds

 

 

2

 

 

 

 

 

 

2

 

 

 

 

Total assets

 

$

351

 

 

$

55

 

 

$

296

 

 

$

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives – foreign exchange forward contracts

 

$

1

 

 

$

 

 

$

1

 

 

$

 

Derivatives – interest rate hedge – non-current

 

 

5

 

 

 

 

 

 

5

 

 

 

 

Total liabilities

 

$

6

 

 

$

 

 

$

6

 

 

$

 

Reported as follows:

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

230

 

 

$

55

 

 

$

175

 

 

$

 

Short-term investments

 

 

77

 

 

 

 

 

 

77

 

 

 

 

Other current assets

 

 

7

 

 

 

 

 

 

7

 

 

 

 

Total current assets

 

$

314

 

 

$

55

 

 

$

259

 

 

$

 

Long-term investments

 

$

6

 

 

$

 

 

$

6

 

 

$

 

Other assets

 

 

31

 

 

 

 

 

 

31

 

 

 

 

Total long-term assets

 

$

37

 

 

$

 

 

$

37

 

 

$

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Other current liabilities

 

$

1

 

 

$

 

 

$

1

 

 

$

 

Other liabilities

 

$

5

 

 

$

 

 

$

5

 

 

$

 

Other Fair Value Disclosures

The estimated fair value and carrying value of the Company’s debt as of December 31, 2022 and 2021 is as follows:

 

 

2022

 

 

2021

 

 

 

Carrying Value

 

 

Fair Value

 

 

Carrying Value

 

 

Fair Value

 

Total debt, excluding deferred financing costs

 

$

5,122

 

 

$

5,071

 

 

$

825

 

 

$

824

 

 

The estimated fair value of the Company’s debt was determined using available market information based on recent trades or activity of debt instruments with substantially similar risks, terms and maturities, which fall within Level 2 under the fair value hierarchy.

Money Market Funds

Money market funds are cash and cash equivalents and are classified within Level 1 of the fair value hierarchy.

Pension and Deferred Compensation Plan Assets

The pension and deferred compensation plan assets represent investments in mutual funds, exchange traded funds, government securities and other time deposits. These investments are set aside for retirement benefits of certain of the Company's subsidiaries.

Derivatives

As a result of the Company’s global operating activities, the Company is exposed to market risks from changes in foreign currency exchange rates and variable interest rates, which may adversely affect its operating results and financial position. When deemed appropriate, the Company minimizes its risks from foreign currency exchange rate and interest rate fluctuations through the use of derivative financial instruments. The principal market in which the Company executes its foreign exchange forward contracts, options and interest rate swaps is the institutional market in an over-the-counter environment with a relatively high level of price transparency. The market participants usually are large commercial banks. The foreign exchange forward contracts, options and interest rate hedge are valued using broker quotations, or market transactions and are classified within Level 2 of the fair value hierarchy.