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Note 11 — Fair Value Measurements
The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis at March 31,
2012 and 2011:
AT MARCH 31, 2012 AT MARCH 31, 2011
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 $ 1,374 $ — $ 1,374(1) $ 2,009 $ — $ 2,009(2)
Marketable securities(3) —— — — 179 179
Foreign exchange derivatives(4) —2 2 —7 7
Interest rate derivatives(4) —27 27 —15 15
Total Assets $ 1,374 $ 29 $ 1,403 $ 2,009 $ 201 $ 2,210
Liabilities:
Foreign exchange derivatives(4) —4 4 —1 1
Total Liabilities $—$4$ 4$—$1$ 1
(1) At March 31, 2012, the Company had approximately $1,324 million and $50 million of investments in money market funds classified as “Cash and cash equivalents” and “Other noncurrent assets,
net” for restricted cash amounts, respectively, in the Company’s Consolidated Balance Sheet.
(2) At March 31, 2011, the Company had approximately $1,959 million and $50 million of investments in money market funds classified as “Cash and cash equivalents” and “Other noncurrent assets,
net” for restricted cash amounts, respectively, in the Company’s Consolidated Balance Sheet.
(3) See Note 5, “Marketable Securities” for additional information.
(4) See Note 10, “Derivatives” for additional information. Interest rate derivatives fair value excludes accrued interest.
At March 31, 2012 and 2011, the Company did not have any assets or liabilities measured at fair value on a recurring basis using
significant unobservable inputs (Level 3).
The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments that are not
measured at fair value on a recurring basis at March 31, 2012 and 2011:
AT MARCH 31, 2012 AT MARCH 31, 2011
(in millions)
CARRYING
VALUE
ESTIMATED
FAIR VALUE
CARRYING
VALUE
ESTIMATED
FAIR VALUE
Liabilities:
Total debt(1) $ 1,301 $ 1,408 $ 1,551 $ 1,619
Facilities abandonment reserve(2) $42$48$52$59
(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 facilities abandonment reserve was determined using the Company’s incremental borrowing rate at each of March 31, 2012 and 2011. At March 31, 2012 and 2011, the
facilities abandonment reserve included approximately $16 million and $15 million, respectively, in “Accrued expenses and other current liabilities” and approximately $26 million and $37
million, respectively, in “Other noncurrent liabilities” in the Company’s Consolidated Balance Sheets (Level 3).
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