|
Note 16. Fair Value Measurements
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) |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
$ |
11 |
|
|
$ |
11 |
|
|
$ |
11 |
|
|
$ |
11 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
Foreign Exchange Contracts |
|
|
1 |
|
|
|
11 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
11 |
|
|
|
— |
|
|
|
— |
|
|
Total Assets at Fair Value |
|
$ |
12 |
|
|
$ |
22 |
|
|
$ |
11 |
|
|
$ |
11 |
|
|
$ |
1 |
|
|
$ |
11 |
|
|
$ |
— |
|
|
$ |
— |
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Exchange Contracts |
|
$ |
34 |
|
|
$ |
19 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
34 |
|
|
$ |
19 |
|
|
$ |
— |
|
|
$ |
— |
|
|
Total Liabilities at Fair Value |
|
$ |
34 |
|
|
$ |
19 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
34 |
|
|
$ |
19 |
|
|
$ |
— |
|
|
$ |
— |
|
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) |
|
2020 |
|
|
2019 |
|
|
Fixed Rate Debt(1): |
|
|
|
|
|
|
|
|
|
Carrying amount — liability |
|
$ |
4,094 |
|
|
$ |
3,434 |
|
|
Fair value — liability |
|
|
4,283 |
|
|
|
3,558 |
|
|
Variable Rate Debt(1): |
|
|
|
|
|
|
|
|
|
Carrying amount — liability |
|
$ |
1,240 |
|
|
$ |
1,632 |
|
|
Fair value — liability |
|
|
1,197 |
|
|
|
1,632 |
|
|
(1) |
Excludes Notes Payable and Overdrafts of $406 million and $348 million at December 31, 2020 and 2019, respectively, of which $227 million and $143 million, respectively, are at fixed rates and $179 million and $205 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 $4,391 million and $3,808 million at December 31, 2020 and 2019, respectively, were estimated using quoted Level 1 market prices. The carrying value of the remaining debt was based upon internal estimates of fair value derived from market prices for similar debt.
|