Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2020:

(dollars in millions)	Level 1(1)		Level 2(2)		Level 3(3)		Total
Assets:
Prepaid expenses and other:
Foreign exchange forwards	$	—	$	5	$	—	$	5
Other assets:
Fixed income securities	—		458		—		458
Interest rate swaps	—		1,935		—		1,935
Cross currency swaps	—		89		—		89
Interest rate caps	—		1		—		1
Total	$	—	$	2,488	$	—	$	2,488
Liabilities:
Other current liabilities:
Forward starting interest rate swaps	$	—	$	568	$	—	$	568
Other liabilities:
Interest rate swaps	—		340		—		340
Cross currency swaps	—		2,590		—		2,590
Forward starting interest rate swaps	—		552		—		552
Interest rate caps	—		1		—		1
Total	$	—	$	4,051	$	—	$	4,051

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 June 30, 2020	111,631		89,504		47,916		—		137,420

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,
(dollars in millions)	2020		2019
Interest rate swaps	$	16,996	$	17,004
Cross currency swaps	24,740		23,070
Forward starting interest rate swaps	2,000		3,000
Interest rate caps	158		679
Foreign exchange forwards	960		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 June 30,		At December 31,
(dollars in millions)	2020		2019
Carrying amount of hedged liabilities	$	18,438	$	17,337
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities	1,544		433