Fair Value Measurements

3 Months Ended

Mar. 31, 2015

Cash equivalents, marketable securities, and derivative financial instruments are remeasured and presented in our financial statements on a recurring basis at fair value, while other assets and liabilities are measured at fair value on a nonrecurring basis, such as when we have an asset impairment. We did not have any material nonrecurring fair value items. There have been no changes to the types of inputs used or valuation techniques since year end.

Input Hierarchy of Items Measured at Fair Value on a Recurring Basis

The following table categorizes the fair values of items measured at fair value on a recurring basis on our balance sheet, none of which are Level 3 (in millions):



	March 31, 2015						December 31, 2014
	Level 1		Level 2		Total		Level 1		Level 2		Total
Assets
Cash equivalents-financial instruments
Non-U.S. government and agencies	$	—	$	320	$	320	$	—	$	341	$	341
Corporate debt	—		80		80		—		10		10
Total cash equivalents-financial instruments (a)	—		400		400		—		351		351
Marketable securities
U.S. government and agencies	1,151		2,855		4,006		17		1,251		1,268
Non-U.S. government and agencies	—		521		521		—		405		405
Corporate debt	—		1,706		1,706		—		1,555		1,555
Other marketable securities	—		31		31		—		30		30
Total marketable securities	1,151		5,113		6,264		17		3,241		3,258
Derivative financial instruments
Derivative financial instruments (b)	—		1,204		1,204		—		859		859
Total assets at fair value	$	1,151	$	6,717	$	7,868	$	17	$	4,451	$	4,468

Liabilities
Derivative financial instruments (b)	$	—	$	297	$	297	$	—	$	167	$	167
Total liabilities at fair value	$	—	$	297	$	297	$	—	$	167	$	167

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(a)	Excludes time deposits, certificates of deposit, and money market accounts reported at par value on our balance sheet totaling $5.1 billion and $3.8 billion at March 31, 2015 and December 31, 2014, respectively. In addition to these cash equivalents, we also had cash on hand totaling $1.8 billion and $2.0 billion at March 31, 2015 and December 31, 2014, respectively.


(b)	See Note 7 for additional information regarding derivatives.

- 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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