Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2017

Fair Value of Financial Assets and Liabilities

The following tables detail the fair value of our financial assets and liabilities that are required to be measured at fair value on a recurring basis (in millions):

	Fair Value at Measurement Date Using
	Balance at March 31, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Fair Value Measurements on a Recurring Basis:
Assets
Foreign currency forward sale contracts⁽¹⁾	$	10	$	—	$	10	$	—


	Fair Value at Measurement Date Using
	Balance at December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Fair Value Measurements on a Recurring Basis:
Assets
Foreign currency forward sale contracts⁽¹⁾	$	12	$	—	$	12	$	—
___________

(1)

These derivative contracts have been designated as hedging instruments.

Foreign Currency Sale Contracts

The following table summarizes our foreign currency forward sale contracts (in millions):

Currently Outstanding						Change in Fair Value - All Contracts
	Total
	Transaction Amount in		Total Transaction				Gain (Loss)
Transaction Date	Foreign		Amount		Forward Purchase		Quarter ended March 31,
Range	Currency		in Dollars		Date Range		2017			2016
May 2014-January 2016	€	100	$	118	May 2017-January 2018		$	(1	)	$	(4	)
November 2016	C$	25	$	19	November 2018		$	—		$	(1	)

Draws on Credit Facility that are Designated as Net Investments in Foreign Operations

The following table summarizes the draws on our credit facility that are designated as hedges of net investments in foreign operations (in millions):

		Balance		Balance			Gain (Loss)
		Outstanding		Outstanding in			Quarter ended March 31,
Currency		US$		Foreign Currency			2017				2016
Canadian dollars ⁽¹⁾	$		35	C$	46	$		—		$		2
Euros	$		82	€	77	$		(1	)	$		4
Australian dollars	$		38	A$	50	$		(2	)	$		—
___________

(1)

We have drawn an additional $45 million on the credit facility in Canadian dollars, which has not been designated as a hedging instrument.

Fair Values of Certain Financial Liabilities and Other Financial Instruments

The fair value of certain financial liabilities is shown below (in millions):

	March 31, 2017				December 31, 2016
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial liabilities
Senior notes (Level 1)	$	2,776	$	2,913	$	2,380	$	2,477
Credit facility (Level 2)		1,211		1,215		1,206		1,211
Mortgage debt and other, excluding capital leases (Level 2)		—		—		62		62