Fair Value Measurements (Tables)

9 Months Ended

Sep. 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 September 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	—		379		—		379
Cross currency swaps	—		707		—		707
Forward starting interest rate swaps	—		88		—		88
Interest rate caps	—		21		—		21
Total	$	37	$	1,195	$	—	$	1,232

Liabilities:
Other liabilities:
Interest rate swaps	$	—	$	1,307	$	—	$	1,307
Cross currency swaps	—		84		—		84
Interest rate caps	—		6		—		6
Total	$	—	$	1,397	$	—	$	1,397

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 September 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	$	112,026	$	120,360	$	116,075	$	128,658

Notional Amounts of Outstanding Derivative Instruments

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



	At September 30,		At December 31,
	2018		2017
(dollars in millions)	Notional Amount		Notional Amount
Interest rate swaps	$	19,844	$	20,173
Cross currency swaps	16,638		16,638
Forward starting interest rate swaps	3,000		—
Interest rate caps	2,840		2,840
Foreign exchange forwards	400		—

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 September 30,			At December 31,
(dollars in millions)	2018			2017
Carrying amount of hedged liabilities	$	18,470		$	19,723
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities	(1,246		)	(316		)