Note 12 - Fair Value Measurements

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Fair Value Disclosures [Text Block]

12. Fair Value Measurements

Fair value standards under GAAP define fair value, establish a framework for measuring fair value in applying generally accepted accounting principles, and require disclosures about fair value measurements. The standards identify two kinds of inputs that are used to determine the fair value of assets and liabilities: observable and unobservable. Observable inputs are based on market data or independent sources, while unobservable inputs are based on the Company’s own market assumptions. Once inputs have been characterized, the inputs are prioritized into one of three broad levels (provided in the table below) used to measure fair value. Fair value standards apply whenever an entity is measuring fair value under other accounting pronouncements that require or permit fair value measurement and require the use of observable market data when available.

The following table provides fair value measurement information for the Company’s major categories of financial assets and liabilities measured on a recurring basis; Level 1 (“L1”), quoted market prices in active markets for identical assets, Level 2 (“L2”), significant other observable inputs, and Level 3 (“L3”), significant unobservable inputs as of our reportable dates (in millions):

	September 30, 2022								December 31, 2021
	L1		L2		L3		Total		L1		L2		L3		Total
Current assets:
Other current assets (1)	$	2	$	880	$	46	$	928	$	10	$	336	$	6	$	352
Non-current assets:
Other assets (1)			$	231	$	3	$	234			$	164	$	11	$	175
Current liabilities:
Other accrued liabilities (1)			$	494			$	494			$	144			$	144
Non-current liabilities:
Other liabilities (1)			$	255			$	255			$	66			$	66

⁽¹⁾ Derivative assets and liabilities mainly consist of foreign exchange contracts which were measured using observable inputs for similar assets and liabilities.

Assets and Liabilities Measured on a Non-Recurring Basis

There were no significant financial assets and liabilities measured on a non-recurring basis as of September 30, 2022 and December 31, 2021.