Fair Value Measurements

9 Months Ended

Sep. 30, 2019

FAIR VALUE MEASUREMENTS

The following tables summarize the basis used to measure certain assets and liabilities at fair value on a recurring basis:



September 30, 2019	Significant Other Observable Inputs (Level 2)
(In millions)	Significant Other Observable Inputs (Level 2)
Assets at fair value:
Cash equivalents and restricted cash equivalents¹	$	1,568
Marketable securities	117
Derivatives relating to:²
Foreign currency	74
Total assets at fair value	$	1,759
Liabilities at fair value:
Long-term debt including debt due within one year³	$	123
Derivatives relating to:²
Foreign currency	20
Total liabilities at fair value	$	143



December 31, 2018	Significant Other Observable Inputs (Level 2)
(In millions)	Significant Other Observable Inputs (Level 2)
Assets at fair value:
Cash equivalents and restricted cash equivalents¹	$	1,221
Marketable securities	5
Derivatives relating to:²
Foreign currency	72
Total assets at fair value	$	1,298
Liabilities at fair value:
Long-term debt including debt due within one year³	$	6,100
Derivatives relating to:²
Foreign currency	21
Total liabilities at fair value	$	6,121



September 30, 2018	Significant Other Observable Inputs (Level 2)
(In millions)	Significant Other Observable Inputs (Level 2)
Assets at fair value:
Cash equivalents and restricted cash equivalents¹	$	759
Marketable securities	142
Derivatives relating to:²
Foreign currency	55
Total assets at fair value	$	956
Liabilities at fair value:
Long-term debt including debt due within one year³	$	10,397
Derivatives relating to:²
Foreign currency	54
Total liabilities at fair value	$	10,451


1.	Time deposits included in cash and cash equivalents and money market funds included in other current assets in the interim Condensed Consolidated Balance Sheets are held at amortized cost, which approximates fair value.

2. See Note 22 - Financial Instruments for the classification of derivatives in the interim Condensed Consolidated Balance Sheets.

3. See Note 17 - Short-Term Borrowings, Long-Term Debt and Available Credit Facilities, for information on fair value measurements of long-term debt.

Fair Value Measurements on a Nonrecurring Basis

The following table summarizes the bases used to measure certain assets at fair value on a nonrecurring basis:



Basis of Fair Value Measurements on a Nonrecurring Basis at September 30	Significant Other Unobservable Inputs (Level 3)		Total Losses
(In millions)	Significant Other Unobservable Inputs (Level 3)		Total Losses
2019
Assets at fair value:
Developed technology	$	—	$	(1	)
Other intangible assets	$	—	$	(6	)
IPR&D	$	—	$	(47	)

2018
Assets at fair value:
Investment in nonconsolidated affiliates	$	51	$	(41	)
Other intangible assets	$	450	$	(85	)

With the exception of the developed technology, other intangible assets, and IPR&D non-cash impairment charges, there were no other non-recurring fair value adjustments recorded during the three and nine months ended September 30, 2019. With the exception of the goodwill, indefinite-lived intangible asset, and investment in nonconsolidated affiliates non-cash impairment charges, there were no other non-recurring fair value adjustments recorded during the three and nine months ended September 30, 2018. See Note 7 - Restructuring and Asset Related Charges - Net, and Note 15 - Goodwill and Other Intangible Assets, for further discussion of these fair value measurements.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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