v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Accounting standards pertaining to fair value measurements establish a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
As of June 30, 2026, the Company held certain items that are required to be measured at fair value on a recurring basis, including cash equivalents. The Company may also from time to time hold short-term investments and available-for-sale securities. The majority of the Company’s cash equivalents consist of instruments classified as Level 1. However, the Company classifies any certificates of deposit and time deposits it holds as Level 2 due to the fact that the fair value for these instruments is determined utilizing observable inputs in non-active markets. Equity securities primarily consist of investments with readily determinable market values associated with the Company’s excess benefit plan.

The Company’s interest rate derivative instruments consist of over-the-counter contracts, which are not traded on a public exchange. Interest rate derivatives currently consist solely of swap agreements. See Note 3 for further information on the Company’s derivative instruments and hedging activities. The fair values of swap contracts are determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. Therefore, the Company has categorized these swap contracts as Level 2. The Company also considered counterparty credit risk and its own credit risk in its determination of all estimated fair values. The Company consistently applied these valuation techniques in all periods presented and believes it obtained the most accurate information available for the types of derivative contracts it holds.

Included in Equity securities are the Company’s investments primarily associated with its deferred compensation plans, which consist of mutual funds that are publicly traded and for which market prices are readily available. These plans are non-qualified deferred compensation plans designed to hold contributions in excess of limits established by the Internal Revenue Code of 1986, as amended. The distribution timing and payment amounts under these plans are made based on the participant’s distribution election and plan balance. Assets related to the funded portions of the deferred compensation plans are held in a rabbi trust, and the Company remains liable to these participants for the unfunded portion of the plans. The Company records changes in the fair value of plan obligations and plan assets, which net to zero, within the Salaries, wages, and benefits line and Other (gains) losses, net line, respectively, of the unaudited Condensed Consolidated Statement of Comprehensive Income.

The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2026, and December 31, 2025:
  Fair value measurements at reporting date using:
Quoted prices in active markets for identical assetsSignificant other observable inputs
DescriptionJune 30, 2026(Level 1)(Level 2)
Assets(in millions)
Cash equivalents:   
Cash equivalents (a)$3,391 $3,391 $— 
Time deposits400 — 400 
Equity Securities393 393 — 
Total assets$4,184 $3,784 $400 
Liabilities   
Interest rate derivatives (see Note 3)
$(28)$— $(28)
(a) Cash equivalents are primarily composed of money market investments.
  Fair value measurements at reporting date using:
Quoted prices in active markets for identical assetsSignificant other observable inputs
DescriptionDecember 31, 2025(Level 1)(Level 2)
Assets(in millions)
Cash equivalents:  
Cash equivalents (a)$2,831 $2,831 $— 
Time deposits400 — 400 
Equity Securities457 457 — 
Total assets$3,688 $3,288 $400 
Liabilities   
Interest rate derivatives (see Note 3)
$(16)$— $(16)
(a) Cash equivalents are primarily composed of money market investments.


The Company did not have any material assets or liabilities measured at fair value on a nonrecurring basis, or on a recurring basis using significant unobservable inputs (Level 3) during the six months ended June 30, 2026, or the year ended December 31, 2025.

The carrying amounts and estimated fair values of the Company’s short-term and long-term debt (including current maturities), as well as the applicable fair value hierarchy tier, as of June 30, 2026, are presented in the table below. The fair values of the Company’s publicly held debt are determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets; therefore, the Company has categorized these agreements as Level 2. All privately held debt agreements are categorized as Level 3. The Company has determined the estimated fair value of this debt to be Level 3, as certain inputs used to determine the fair value of these agreements are unobservable. The Company utilizes indicative pricing from counterparties and a discounted cash flow method to estimate the fair value of the Level 3 items.

(in millions)Maturity dateCarrying valueEstimated fair valueFair value level hierarchy
3.000% Notes
2026$300 $299 Level 2
7.375% Debentures
2027102 104 Level 2
3.450% Notes
2027300 296 Level 2
5.125% Notes
20271,727 1,735 Level 2
4.375% Notes
2028750 744 Level 2
Term Loan Credit Facility20291,500 1,500 Level 3
2.625% Notes
2030500 463 Level 2
5.250% Notes
2035722 697 Level 2