Fair Value Disclosures
The following tables present the carrying amounts and estimated fair values of financial instruments held or issued by the Company using available market information. Determining fair value is judgmental in nature and requires market assumptions and/or estimation methodologies. The tables exclude cash, restricted cash, accounts receivable, net, and accounts payable, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments.
December 31, 2025
Hierarchy Level
Carrying
   Amount(1)
Level 1
Level 2
(in millions)
Assets:
Cash equivalents
Cash deposits
$1,878 $1,878 
Money market funds
$288 $288 
U.S. Treasury Bills$218 $218 
Loan Receivable(2)
$1,264 $1,232 
Liabilities:
Debt(3)(4)
$15,770 $15,784 
Other long-term liabilities:
2024 SCL Swaps(3)(5)
$63 $63 
MBS Net Investment Hedge(3)(6)
$$
December 31, 2024
Hierarchy Level
Carrying
   Amount(1)
Level 1
Level 2
(in millions)
Assets:
Cash equivalents
Cash deposits
$2,294 $2,294 
Money market funds
$72 $72 
U.S. Treasury Bills$465 $465 
Loan Receivable(2)
$1,264 $1,192 
Liabilities:
Other accrued liabilities:
2021 SCL Swaps(3)
$$
Debt(3)(4)
$13,689 $13,353 
Other long-term liabilities:
2024 SCL Swaps(3)(5)
$52 $52 
__________________
(1)The cross-currency swaps and net investment hedges are accounted for at fair value in the accompanying consolidated financial statements. The other items included in this table are not accounted for at fair value.
(2)The fair value is estimated based on level 2 inputs and reflects the increase in market interest rates since finalizing the terms of the loan receivable at a fixed interest rate on March 2, 2021.
(3)The estimated fair value is based on recent trades, if available, and indicative pricing from market information (level 2 inputs).
(4)The carrying amount of debt is exclusive of finance leases and represents its contractual value.
(5)This amount excludes the accrued interest portion of the fair value related to the periodic interest payment swaps. This accrual component, amounting to $4 million as of December 31, 2025 and 2024, was recorded in “Accounts receivable, net” in the accompanying consolidated balance sheets.
(6)This amount excludes the accrued interest portion of the fair value related to the periodic interest payment swaps. This accrual component, amounting to $3 million as of December 31, 2025, was recorded in “Accounts receivable, net” in the accompanying consolidated balance sheet.
As of December 31, 2025 and 2024, the amounts of the Companys other assets and liabilities that were accounted for at fair value were immaterial.

Historical Timeline

Fiscal YearFiled
2025Feb 6, 2026Showing above
2024Feb 7, 2025
2023Feb 7, 2024
2022Feb 3, 2023
2020Feb 5, 2021
2019Feb 7, 2020
2017Feb 23, 2018
2016Feb 24, 2017
2015Feb 26, 2016

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.