Fair Value

Fair Value Measurements on a Recurring Basis

The following table presents the Company’s assets and liabilities, excluding pension assets, see Note 12 - "Pension and Other Benefit Plans" and derivative assets and liabilities, see Note 7 - "Derivative Instruments", that are measured at fair value on a recurring basis. There were no transfers between any of the levels during the periods presented.



			Fair Value Hierarchy
(in millions)	Fair Value		Level 1		Level 2		Level 3
Assets:	June 30, 2017
Money market funds and money market deposit accounts⁽¹⁾	$	545	$	545	$	—	$	—
Time deposits⁽¹⁾	214		214		—		—
Foreign bonds⁽²⁾	49		—		49		—
Other debt securities	7		—		—		7
Deferred purchase price receivable	242		—		—		242
Total assets	$	1,057	$	759	$	49	$	249

Liabilities:
Contingent consideration	$	7	$	—	$	—	$	7
Total liabilities	$	7	$	—	$	—	$	7

⁽¹⁾Cost basis approximated fair value due to the short period of time to maturity.

⁽²⁾The contractual maturities of investments in available-for-sale debt securities is due in more than five years.



	March 31, 2017
Assets:	Fair Value		Level 1		Level 2		Level 3
Money market funds and money market deposit accounts	$	406	$	406	$	—	$	—
Deferred purchase price receivable	252		—		—		252
Total assets	$	658	$	406	$	—	$	252

Liabilities:
Contingent consideration	$	7	$	—	$	—	$	7
Total liabilities	$	7	$	—	$	—	$	7

The fair value of money market funds, money market deposit accounts, and time deposits, reported as cash and cash equivalents, are based on quoted market prices. The fair value of foreign government bonds is based on actual market prices and included in Other long-term assets. Fair value of the DPP, included in Receivables, net, is determined by calculating the expected amount of cash to be received and is principally based on unobservable inputs consisting primarily of the face amount of the receivables adjusted for anticipated credit losses. The fair value of contingent consideration, presented in Other liabilities, is based on contractually defined targets of financial performance and other considerations.

Other Fair Value Disclosures

The carrying amounts of the Company’s other financial instruments with short-term maturities, primarily accounts receivable, accounts payable, short-term debt, and financial liabilities included in Other accrued liabilities, are deemed to approximate their market values. If measured at fair value, these financial instruments would be classified in Level 2 or Level 3 of the fair value hierarchy.

The Company estimates the fair value of its long-term debt primarily using an expected present value technique, which is based on observable market inputs, using interest rates currently available to the Company for instruments with similar terms and remaining maturities. The estimated fair value of the Company's long-term debt, excluding capital leases, was $6.2 billion as of June 30, 2017, as compared with carrying value of $6.1 billion. If measured at fair value, long-term debt, excluding capital lease would be classified in Level 2 of the fair value hierarchy.

Non-financial assets such as goodwill, tangible assets, intangible assets and other contract related long-lived assets are recorded at fair value in the period an impairment charge is recognized. The fair value measurements, in such instances, would be classified in Level 3. There were no significant impairments recorded during the three months ended June 30, 2017 and July 1, 2016.

The Company is subject to counterparty risk in connection with its derivative instruments, see Note 7 - "Derivative Instruments". With respect to its foreign currency derivatives, as of June 30, 2017 there were seven counterparties with concentration of credit risk. Based on gross fair value of these foreign currency derivative instruments, the maximum amount of loss that the Company could incur is approximately $51 million.