Fair Value Measurements

3 Months Ended

Mar. 31, 2019

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 2018.

There were no significant transfers into or out of any level in 2019.



Assets Measured at Fair Value	March		December
Assets Measured at Fair Value	2019		2018
Cash and cash equivalents	$	1,674	$	3,616
Trading marketable securities	132		118
Level 1 - Assets	$	1,806	$	3,734
Available-for-sale marketable securities:
Corporate and asset-backed debt securities	$	36	$	38
United States agency debt securities	10		11
United States Treasury debt securities	28		23
Certificates of deposit	10		11
Total available-for-sale marketable securities	$	84	$	83
Foreign currency exchange forward contracts	124		77
Level 2 - Assets	$	208	$	160
Total assets measured at fair value	$	2,014	$	3,894



Liabilities Measured at Fair Value	March			December
Liabilities Measured at Fair Value	2019			2018
Deferred compensation arrangements	$	132		$	118
Level 1 - Liabilities	$	132		$	118
Foreign currency exchange forward contracts	$	18		$	20
Level 2 - Liabilities	$	18		$	20
Contingent consideration:
Beginning	$	117		$	32
Additions	128			77
Change in estimate	—			15
Settlements	(1		)	(7		)
Ending	$	244		$	117
Level 3 - Liabilities	$	244		$	117
Total liabilities measured at fair value	$	394		$	255

On March 31, 2019 and December 31, 2018 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 $39 and $23 in the three months 2019 and 2018.

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 March 31, 2019. On March 31, 2019 the majority of our investments with unrealized losses that were not deemed to be other-than-temporarily impaired were in a continuous unrealized loss position for less than twelve months, and the losses were not material.



Securities in a Continuous Unrealized Loss Position
	Number of Investments	Fair Value
Corporate and asset-backed	29	$	13
United States agency	6	8
United States Treasury	13	12
Certificates of deposit	1	1
Total	49	$	34

- 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.

+ References + Details

Fair Value of Available for Sale Securities by Maturity

March 2019

December 2018

Due in one year or less

Due after one year through three years