Quarterly report pursuant to Section 13 or 15(d)

Note 10 - Fair Value

v3.22.2.2
Note 10 - Fair Value
9 Months Ended
Sep. 30, 2022
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

10. FAIR VALUE

The fair values of financial instruments were as follows (dollars in millions):

   

September 30, 2022

   

December 31, 2021

 
   

Carrying

   

Estimated

   

Carrying

   

Estimated

 
   

value

   

fair value

   

value

   

fair value

 

Non-qualified employee benefit plan investments

  $ 15     $ 15     $ 25     $ 25  

Investment in Venator

    9       9       25       25  

Option agreement for remaining Venator shares

                (7 )     (7 )

Long-term debt (including current portion)

    (1,488 )     (1,304 )     (1,550 )     (1,698 )

The carrying amounts reported in the balance sheets of cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the immediate or short-term maturity of these financial instruments. Our investment in Venator is marked to fair value, which is obtained through market observable pricing using prevailing market prices (Level 1). Additionally, the estimated fair value of the option agreement related to the remaining ordinary shares we hold in Venator, which rounds to nil as of September 30, 2022, is based on a valuation technique using market observable inputs (Level 2). See “Note 4. Discontinued Operations and Business Dispositions—Sale of Venator Interest.” The fair values of non-qualified employee benefit plan investments are obtained through market observable pricing using prevailing market prices (Level 1). The estimated fair values of our long-term debt are based on quoted market prices for the identical liability when traded in an active market (Level 1). The fair value estimates presented herein are based on pertinent information available to management as of  September 30, 2022 and December 31, 2021. Although we are not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since September 30, 2022, and current estimates of fair value may differ significantly from the amounts presented herein.

During the nine months ended September 30, 2022, we held no instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3), and there were no gains or losses (realized and unrealized) included in our earnings for instruments categorized as Level 3 within the fair value hierarchy.