Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

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 March 31, 2020:

(dollars in millions)	Level 1(1)		Level 2(2)		Level 3(3)		Total
Assets:
Other assets:
Fixed income securities	$	—	$	444	$	—	$	444
Interest rate swaps	—		1,874		—		1,874
Foreign exchange forwards	—		31		—		31
Total	$	—	$	2,349	$	—	$	2,349
Liabilities:
Other liabilities:
Interest rate swaps	$	—	$	344	$	—	$	344
Cross currency swaps	—		3,651		—		3,651
Forward starting interest rate swaps	—		1,151		—		1,151
Total	$	—	$	5,146	$	—	$	5,146

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2019:

(dollars in millions)	Level 1(1)		Level 2(2)		Level 3(3)		Total
Assets:
Other assets:
Fixed income securities	$	—	$	442	$	—	$	442
Interest rate swaps	—		568		—		568
Cross currency swaps	—		211		—		211
Foreign exchange forwards	—		5		—		5
Total	$	—	$	1,226	$	—	$	1,226
Liabilities:
Other liabilities:
Interest rate swaps	$	—	$	173	$	—	$	173
Cross currency swaps	—		912		—		912
Forward starting interest rate swaps	—		604		—		604
Total	$	—	$	1,689	$	—	$	1,689

⁽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 finance leases, was as follows:

			Fair Value
(dollars in millions)	Carrying Amount		Level 1		Level 2		Level 3		Total
At December 31, 2019	$	110,373	$	86,712	$	42,488	$	—	$	129,200
At March 31, 2020	116,557		91,754		44,794		—		136,548

Notional Amounts of Outstanding Derivative Instruments

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

	At March 31,		At December 31,
(dollars in millions)	2020		2019
Interest rate swaps	$	17,909	$	17,004
Cross currency swaps	23,070		23,070
Forward starting interest rate swaps	2,000		3,000
Interest rate caps	409		679
Foreign exchange forwards	955		1,130

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 March 31,		At December 31,
(dollars in millions)	2020		2019
Carrying amount of hedged liabilities	$	19,296	$	17,337
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities	1,491		433