Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value of Assets and Liabilities Measured on Recurring Basis

Our assets and liabilities that are measured at fair value on a recurring basis include the following (in millions):


	September 30,		December 31,
	2021		2020
Fair Value Measurements Using:
Quoted prices in active markets (Level 1):
Cash equivalents and money market funds (a)	$	48	$	530
Equity securities		16		—
Significant other observable inputs (Level 2):
Available-for-sale securities (b)		413		390
Significant unobservable inputs (Level 3):
Redeemable preferred stock (c)		49		49
Total Assets	$	526	$	969

(a)	The decrease is primarily due to the use of available cash to retire certain high-coupon senior notes in May 2021, which is discussed further in Note 3.

(b)	Our available-for-sale securities primarily relate to debt securities with maturities over the next nine years.

(c)

When available, Level 3 investments have been measured based on third-party investors’ recent or pending transactions in these securities, which are considered the best evidence of fair value. When this evidence is not available, we use other valuation techniques as appropriate and available. These valuation methodologies may include transactions in similar instruments, discounted cash flow techniques, third-party appraisals or industry multiples and public company comparable transactions.