Fair Value Measurements

12 Months Ended

Dec. 31, 2019

The following table presents information about assets and liabilities recorded at fair value on the Consolidated Balance Sheet at December 31:



	Total Carrying Value in the Consolidated Balance Sheet				Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
(In millions)	2019		2018		2019		2018		2019		2018		2019		2018
Assets:
Investments	$	11	$	10	$	11	$	10	$	—	$	—	$	—	$	—
Foreign Exchange Contracts	11		18		—		—		11		18		—		—
Total Assets at Fair Value	$	22	$	28	$	11	$	10	$	11	$	18	$	—	$	—

Liabilities:
Foreign Exchange Contracts	$	19	$	7	$	—	$	—	$	19	$	7	$	—	$	—
Total Liabilities at Fair Value	$	19	$	7	$	—	$	—	$	19	$	7	$	—	$	—

The following table presents supplemental fair value information about long term fixed rate and variable rate debt, excluding finance leases, at December 31:



	December 31,		December 31,
(In millions)	2019		2018
Fixed Rate Debt⁽¹⁾:
Carrying amount — liability	$	3,434	$	3,609
Fair value — liability	3,558		3,443

Variable Rate Debt⁽¹⁾:
Carrying amount — liability	$	1,632	$	1,707
Fair value — liability	1,632		1,689


(1)	Excludes Notes Payable and Overdrafts of $348 million and $410 million at December 31, 2019 and 2018, respectively, of which $143 million and $230 million, respectively, are at fixed rates and $205 million and $180 million, respectively, are at variable rates. The carrying value of Notes Payable and Overdrafts approximates fair value due to the short term nature of the facilities.

Long term debt with fair values of $3,808 million and $3,496 million at December 31, 2019 and 2018, respectively, were estimated using quoted Level 1 market prices. The carrying value of the remaining long term debt approximates fair value since the terms of the financing arrangements are similar to terms that could be obtained under current lending market conditions.

- 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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