Short-term Borrowings and Other Debt Obligations Fair value and carrying value of long-term debt (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value, by Balance Sheet Grouping [Table Text Block]

Fair Value of Short and Long-term Borrowings

The carrying value of our short-term borrowings approximates their fair value due to their short maturities. These short-term borrowings are classified as Level 2 in the fair value hierarchy.

The fair value of our long-term debt fluctuates with changes in applicable interest rates among other factors. Fair value will exceed carrying value when the current market interest rate is lower than the interest rate at which the debt was originally issued and will be less than the carrying value when the market rate is greater than the interest rate at which the debt was originally issued. The fair value of our long-term debt is classified as Level 2 in the fair value hierarchy and is established based on observable inputs in less active markets. The discussion on fair value is continued at “Note 10 – Fair Value of Financial Instruments, Assets and Other Assets.” The fair value and carrying value of our senior notes were as follows:



(Dollars in millions)	March 31, 2019		December 31, 2018
Fair Value	$	5,310	$	4,455
Carrying Value	7,295		7,285