Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of June 30, 2018:



(dollars in millions)	Level 1⁽¹⁾		Level 2⁽²⁾		Level 3⁽³⁾		Total
Assets:
Other assets:
Equity securities	$	37	$	—	$	—	$	37
Fixed income securities	5		372		—		377
Cross currency swaps	—		472		—		472
Interest rate caps	—		19		—		19
Total	$	42	$	863	$	—	$	905

Liabilities:
Other liabilities:
Interest rate swaps	$	—	$	1,053	$	—	$	1,053
Cross currency swaps	—		63		—		63
Interest rate caps	—		5		—		5
Total	$	—	$	1,121	$	—	$	1,121

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2017:



(dollars in millions)	Level 1⁽¹⁾		Level 2⁽²⁾		Level 3⁽³⁾		Total
Assets:
Other assets:
Equity securities	$	74	$	—	$	—	$	74
Fixed income securities	—		366		—		366
Interest rate swaps	—		54		—		54
Cross currency swaps	—		450		—		450
Interest rate caps	—		6		—		6
Total	$	74	$	876	$	—	$	950

Liabilities:
Other liabilities:
Interest rate swaps	$	—	$	413	$	—	$	413
Cross currency swaps	—		46		—		46
Total	$	—	$	459	$	—	$	459


⁽¹⁾	Quoted prices in active markets for identical assets or liabilities


⁽²⁾	Observable inputs other than quoted prices in active markets for identical assets and liabilities


⁽³⁾	Unobservable pricing inputs in the market

Schedule of Fair Value of Short-Term and Long-Term Debt, Excluding Capital Leases

The fair value of our short-term and long-term debt, excluding capital leases, was as follows:



	At June 30,				At December 31,
	2018				2017
(dollars in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Short- and long-term debt, excluding capital leases	$	113,695	$	119,760	$	116,075	$	128,658

Notional Amounts of Outstanding Derivative Instruments

The following table sets forth the notional amounts of our outstanding derivative instruments:



	At June 30,		At December 31,
	2018		2017
(dollars in millions)	Notional Amount		Notional Amount
Interest rate swaps	$	19,835	$	20,173
Cross currency swaps	16,638		16,638
Interest rate caps	2,840		2,840

Schedule of Cumulative Basis Adjustments for Fair Value hedges

The following amounts were recorded in Long-term debt in our condensed consolidated balance sheets related to cumulative basis adjustments for fair value hedges:



	At June 30,			At December 31,
(dollars in millions)	2018			2017
Carrying amount of hedged liabilities	$	18,685		$	19,723
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities	(1,005		)	(316		)