Fair Value Measurements

9 Months Ended

Sep. 30, 2018

FAIR VALUE MEASUREMENTS

Our policies for managing risk related to foreign currency, interest rates, credit and markets and our process for determining fair value have not changed from those described in our Annual Report on Form 10-K for 2017.

There were no significant transfers into or out of any level in 2018.



Assets Measured at Fair Value	September		December
Assets Measured at Fair Value	2018		2017
Cash and cash equivalents	$	1,918	$	2,542
Trading marketable securities	130		121
Level 1 - Assets	$	2,048	$	2,663
Available-for-sale marketable securities:
Corporate and asset-backed debt securities	$	53	$	125
Foreign government debt securities	112		2
United States agency debt securities	2		27
United States Treasury debt securities	33		70
Certificates of deposit	92		27
Total available-for-sale marketable securities	$	292	$	251
Foreign currency exchange forward contracts	40		15
Interest rate swap asset	—		49
Level 2 - Assets	$	332	$	315
Total assets measured at fair value	$	2,380	$	2,978



Liabilities Measured at Fair Value	September			December
Liabilities Measured at Fair Value	2018			2017
Deferred compensation arrangements	$	130		$	121
Level 1 - Liabilities	$	130		$	121
Foreign currency exchange forward contracts	$	18		$	37
Level 2 - Liabilities	$	18		$	37
Contingent consideration:
Beginning	$	32		$	86
Additions	78			3
Change in estimate	—			2
Settlements	(9		)	(59		)
Ending	$	101		$	32
Level 3 - Liabilities	$	101		$	32
Total liabilities measured at fair value	$	249		$	190



Fair Value of Available for Sale Securities by Maturity
	September 2018		December 2017
Due in one year or less	$	140	$	107
Due after one year through three years	$	152	$	144

On September 30, 2018 and December 31, 2017 the aggregate difference between the cost and fair value of available-for-sale marketable securities was nominal. Interest and marketable securities income recorded in other income (expense), net, was $29 and $15 in the three months and was $79 and $38 in the nine months 2018 and 2017.

Our investments in available-for-sale marketable securities had a minimum credit quality rating of A2 (Moody's), A (Standard & Poor's) and A (Fitch). We do not plan to sell the investments, and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost basis, which may be maturity. We do not consider these investments to be other-than-temporarily impaired on September 30, 2018. On September 30, 2018 substantially all our investments with unrealized losses that were not deemed to be other-than-temporarily impaired were nominal and were in a continuous unrealized loss position for less than 12 months.



Securities in a Continuous Unrealized Loss Position
	Number of Investments	Fair Value
Corporate and asset-backed	116	$	87
Foreign government	1	2
United States agency	14	24
United States Treasury	39	86
Certificates of deposit	32	48
Total	202	$	247

- 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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