| FAIR VALUE MEASUREMENTS |
NOTE I – FAIR VALUE MEASUREMENTS The following table presents the Company’s assets and liabilities that were measured at fair value on a recurring basis at December 31, 2014 and March 31, 2014: | | | | | | | | | | | | | | | | | | | | | | | | | | | At December 31, 2014 | | At March 31, 2014 | | | Fair Value Measurement Using Input Types | | Estimated Fair Value | | Fair Value Measurement Using Input Types | | Estimated Fair Value | | (in millions) | Level 1 | | Level 2 | | Total | | Level 1 | | Level 2 | | Total | | Assets: | | | | | | | | | | | | | Money market funds | $ | 515 |
| | $ | — |
| | $ | 515 |
| (1) | $ | 1,277 |
| | $ | — |
| | $ | 1,277 |
| (2) | Foreign exchange derivatives (3) | — |
| | 30 |
| | 30 |
| | — |
| | 2 |
| | 2 |
| | Interest rate derivatives (3) | — |
| | — |
| | — |
| | — |
| | 8 |
| | 8 |
| | Total assets | $ | 515 |
| | $ | 30 |
| | $ | 545 |
| | $ | 1,277 |
| | $ | 10 |
| | $ | 1,287 |
| | Liabilities: | | | | | | | | | | | | | Foreign exchange derivatives (3) | $ | — |
| | $ | 8 |
| | $ | 8 |
| | $ | — |
| | $ | 1 |
| | $ | 1 |
| | Total liabilities | $ | — |
| | $ | 8 |
| | $ | 8 |
| | $ | — |
| | $ | 1 |
| | $ | 1 |
| |
| | (1) | At December 31, 2014, the Company had approximately $515 million and less than $1 million of investments in money market funds classified as “Cash and cash equivalents” and “Other noncurrent assets, net” for restricted cash amounts, respectively, in its Condensed Consolidated Balance Sheet. |
| | (2) | At March 31, 2014, the Company had approximately $1,277 million and less than $1 million of investments in money market funds classified as “Cash and cash equivalents” and “Other noncurrent assets, net” for restricted cash amounts, respectively, in its Condensed Consolidated Balance Sheet. |
| | (3) | See Note H, “Derivatives” for additional information. Interest rate derivatives fair value excludes accrued interest. |
At December 31, 2014 and March 31, 2014, the Company did not have any assets or liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). The carrying values of financial instruments classified as current assets and current liabilities, such as cash and cash equivalents, short-term investments, accounts payable, accrued expenses, and short-term borrowings, approximate fair value due to the short-term maturity of the instruments. The following table presents the carrying amounts and estimated fair values of the Company’s other financial instruments that were not measured at fair value on a recurring basis at December 31, 2014 and March 31, 2014: | | | | | | | | | | | | | | | | | | At December 31, 2014 | | At March 31, 2014 | (in millions) | Carrying Value | | Estimated Fair Value | | Carrying Value | | Estimated Fair Value | Liabilities: | | | | | | | | Total debt (1) | $ | 1,260 |
| | $ | 1,366 |
| | $ | 1,766 |
| | $ | 1,884 |
| Facility exit reserve (2) | $ | 21 |
| | $ | 23 |
| | $ | 29 |
| | $ | 33 |
|
| | (1) | Estimated fair value of total debt is based on quoted prices for similar liabilities for which significant inputs are observable except for certain long-term lease obligations, for which fair value approximates carrying value (Level 2). |
| | (2) | Estimated fair value for the facility exit reserve is determined using the Company’s incremental borrowing rate at December 31, 2014 and March 31, 2014. At December 31, 2014 and March 31, 2014, the facility exit reserve included approximately $8 million and $11 million, respectively, in “Accrued expenses and other current liabilities” and approximately $13 million and $18 million, respectively, in “Other noncurrent liabilities” in the Company’s Condensed Consolidated Balance Sheets (Level 3). |
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