Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair value of assets measured on recurring basis

Our financial instruments measured at fair value on a recurring basis at December 31, 2019, were as follows:

	Total		Level 1		Level 2		Level 3
	(In millions)
Corporate debt securities	$	1,178	$	—	$	1,178	$	—
Mortgage-backed securities	420		—		420		—
Asset-backed securities	127		—		127		—
U.S. Treasury notes	86		—		86		—
Municipal securities	78		—		78		—
Government-sponsored enterprise securities (“GSEs”)	49		—		49		—
Foreign securities	7		—		7		—
Certificates of deposit	1		—		1		—
Subtotal	1,946		—		1,946		—
1.125% Call Option derivative asset	29		—		—		29
Total assets	$	1,975	$	—	$	1,946	$	29
1.125% Conversion Option derivative liability	$	29	$	—	$	—	$	29
Total liabilities	$	29	$	—	$	—	$	29

Our financial instruments measured at fair value on a recurring basis at December 31, 2018, were as follows:

	Total		Level 1		Level 2		Level 3
	(In millions)
Corporate debt securities	$	1,123	$	—	$	1,123	$	—
Asset-backed securities	82		—		82		—
U.S. Treasury notes	181		—		181		—
Municipal securities	114		—		114		—
GSEs	163		—		163		—
Foreign securities	4		—		4		—
Certificates of deposit	14		—		14		—
Subtotal	1,681		—		1,681		—
1.125% Call Option derivative asset	476		—		—		476
Total assets	$	2,157	$	—	$	1,681	$	476
1.125% Conversion Option derivative liability	$	476	$	—	$	—	$	476
Total liabilities	$	476	$	—	$	—	$	476

Fair value measurements of senior notes

As of December 31, 2019, the carrying amount of the Term Loan Facility approximated fair value because its interest rate is a variable rate that approximates rates currently available to us.

	December 31, 2019				December 31, 2018
	Carrying		Fair Value		Carrying		Fair Value
	Amount				Amount
	(In millions)
5.375% Notes	$	696	$	745	$	694	$	674
4.875% Notes	327		340		326		301
Term Loan Facility	220		220		—		—
1.125% Convertible Notes (1)	12		42		240		732
Total	$	1,255	$	1,347	$	1,260	$	1,707

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(1)

The fair value of the 1.125% Conversion Option (the embedded cash conversion option), which is reflected in the fair value amounts presented above, amounted to $29 million and $476 million as of December 31, 2019 and 2018, respectively. For more information, including information on debt repayments in 2019 and 2020, see Note 11, “Debt,” and Note 12, “Derivatives.”