Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2021

Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]

Distribution of Financial Instruments, Measured at Fair Value on a Recurring Basis

The distribution of the Company’s financial instruments measured at fair value on a recurring basis within the Valuation Hierarchy were as follows:

	June 30, 2021								December 31, 2020
	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(in millions)
Assets
Investment securities available for sale 1:
Municipal securities	$	—	$	6	$	—	$	6	$	—	$	10	$	—	$	10
Government and agency securities	41		92		—		133		26		38		—		64
Corporate securities	—		226		—		226		—		247		—		247
Derivative instruments 2:
Foreign exchange contracts	—		30		—		30		—		19		—		19
Marketable securities 3:
Equity securities	661		—		—		661		476		—		—		476
Deferred compensation plan 4:
Deferred compensation assets	85		—		—		85		78		—		—		78
Liabilities
Derivative instruments 2:
Foreign exchange derivative liabilities	$	—	$	(7)	$	—	$	(7)	$	—	$	(28)	$	—	$	(28)
Deferred compensation plan 5:
Deferred compensation liabilities	(84)		—		—		(84)		(81)		—		—		(81)

1The Company’s U.S. government securities are classified within Level 1 of the Valuation Hierarchy as the fair values are based on unadjusted quoted prices for identical assets in active markets. The fair value of the Company’s available-for-sale municipal securities, non-U.S. government and agency securities and corporate securities are based on observable inputs such as quoted prices, benchmark yields and issuer spreads for similar assets in active markets and are therefore included in Level 2 of the Valuation Hierarchy.

2The Company’s foreign exchange derivative asset and liability contracts have been classified within Level 2 of the Valuation Hierarchy as the fair value is based on observable inputs such as broker quotes relating to foreign exchange for similar derivative instruments. See Note 17 (Derivative and Hedging Instruments) for further details.

3The Company’s Marketable securities are publicly held and classified within Level 1 of the Valuation Hierarchy as the fair values are based on unadjusted quoted prices in their respective active markets.

4The Company has a nonqualified deferred compensation plan where assets are invested primarily in mutual funds held in a rabbi trust, which is restricted for payments to participants of the plan. The Company has elected to use the fair value option for these mutual funds, which are measured using quoted prices of identical instruments in active markets and are included in prepaid expenses and other current assets on the consolidated balance sheet.

5The deferred compensation liabilities are measured at fair value based on the quoted prices of identical instruments to the investment vehicles selected by the participants. These are included in other liabilities on the consolidated balance sheet.