Fair Value Measurements (Tables)

9 Months Ended

Sep. 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 September 30, 2020:

(dollars in millions)	Level 1(1)		Level 2(2)		Level 3(3)		Total
Assets:
Prepaid expenses and other:
Interest rate swaps	$	—	$	28	$	—	$	28
Foreign exchange forwards	—		2		—		2
Other assets:
Fixed income securities	—		462		—		462
Interest rate swaps	—		1,768		—		1,768
Cross currency swaps	—		404		—		404
Total	$	—	$	2,664	$	—	$	2,664
Liabilities:
Other current liabilities:
Forward starting interest rate swaps	$	—	$	499	$	—	$	499
Other liabilities:
Interest rate swaps	—		317		—		317
Cross currency swaps	—		1,383		—		1,383
Forward starting interest rate swaps	—		481		—		481
Total	$	—	$	2,680	$	—	$	2,680

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 September 30, 2020	114,288		92,287		48,593		—		140,880

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,
(dollars in millions)	2020		2019
Interest rate swaps	$	18,156	$	17,004
Cross currency swaps	24,740		23,070
Forward starting interest rate swaps	2,000		3,000
Interest rate caps	—		679
Foreign exchange forwards	1,300		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 September 30,		At December 31,
(dollars in millions)	2020		2019
Carrying amount of hedged liabilities	$	19,485	$	17,337
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities	1,436		433