Fair Value Measurements

12 Months Ended

Dec. 31, 2019

Assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following (in millions):



	December 31, 2019						December 31, 2018
	Total		Level 1		Level 2		Total		Level 1		Level 2
Assets
Mutual funds	$	1,363	$	1,363	$	—	$	978	$	978	$	—
U.S. Government securities	99		—		99		105		—		105
Other securities	319		171		148		144		28		116
Derivatives	18		—		18		22		—		22
Liabilities
Derivatives	23		—		23		61		—		61
Assets measured at NAV
Other commingled funds	19						18

Substantially all assets measured at fair value, other than derivatives, represent investments held in a separate trust to fund certain of our non-qualified deferred compensation plans and are recorded in other noncurrent assets on our consolidated balance sheets. The fair values of mutual funds and certain other securities are determined by reference to the quoted market price per unit in active markets multiplied by the number of units held without consideration of transaction costs. The fair values of U.S. Government and other securities are determined using pricing models that use observable inputs (e.g., interest rates and yield curves observable at commonly quoted intervals), bids provided by brokers or dealers or quoted prices of securities with similar characteristics. The fair values of derivative instruments, which consist of foreign currency forward contracts, including embedded derivatives, and interest rate swap contracts, are primarily determined based on the present value of future cash flows using model-derived valuations that use observable inputs such as interest rates, credit spreads and foreign currency exchange rates.

In addition to the financial instruments listed in the table above, we hold other financial instruments, including cash and cash equivalents, receivables, accounts payable and debt and commercial paper. The carrying amounts for cash and cash equivalents, receivables and accounts payable approximated their fair values. The estimated fair value of our outstanding debt and commercial paper was $15.9 billion and $15.4 billion at December 31, 2019 and 2018. The outstanding principal amount was $13.8 billion and $15.3 billion at December 31, 2019 and 2018, respectively, excluding $1.2 billion of unamortized discounts and issuance

costs. The estimated fair values of our outstanding debt were determined based on quoted prices for similar instruments in active markets (Level 2).