Fair Value Measurements and Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2025

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, 2025:

(dollars in millions)	Level 1(1)		Level 2(2)		Level 3(3)		Total
Assets:
Prepaid expenses and other:
Fixed income securities	$	—	$	26	$	—	$	26
Foreign exchange forwards	—		3		—		3
Interest rate caps	—		1		—		1
Other assets:
Fixed income securities	—		307		—		307
Cross currency swaps	—		528		—		528
Total	$	—	$	865	$	—	$	865
Liabilities:
Other current liabilities:
Interest rate swaps	$	—	$	1,932	$	—	$	1,932
Cross currency swaps	—		332		—		332
Foreign exchange forwards	—		1		—		1
Interest rate caps	—		1		—		1
Other liabilities:
Interest rate swaps	—		2,886		—		2,886
Cross currency swaps	—		2,081		—		2,081
Total	$	—	$	7,233	$	—	$	7,233

(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.

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2024:

(dollars in millions)	Level 1(1)		Level 2(2)		Level 3(3)		Total
Assets:
Prepaid expenses and other:
Fixed income securities	$	—	$	16	$	—	$	16
Interest rate caps	—		3		—		3
Other assets:
Fixed income securities	—		269		—		269
Cross currency swaps	—		500		—		500
Total	$	—	$	788	$	—	$	788
Liabilities:
Other current liabilities:
Interest rate swaps	$	—	$	1,964	$	—	$	1,964
Cross currency swaps	—		345		—		345
Foreign exchange forwards	—		5		—		5
Interest rate caps	—		3		—		3
Other liabilities:
Interest rate swaps	—		3,338		—		3,338
Cross currency swaps	—		2,344		—		2,344
Total	$	—	$	7,999	$	—	$	7,999

(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 March 31, 2025	$	141,217	$	82,646	$	54,369	$	—	$	137,015
At December 31, 2024	141,665		81,552		55,464		—		137,016

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)	2025		2024
Interest rate swaps	$	24,025	$	24,025
Cross currency swaps	31,694		32,053
Foreign exchange forwards	730		620

Schedule Of Derivative Instruments Activity

The following tables summarize the activities of our designated derivatives:

	Three Months Ended
	March 31,
(dollars in millions)	2025		2024
Interest Rate Swaps:
Notional value entered into	$	—	$	—
Notional value settled	—		—
Pre-tax gain recognized in Interest expense	—		2
Cross Currency Swaps:
Notional value entered into	—		2,146
Notional value settled	359		3,067
Pre-tax gain (loss) on cross currency swaps recognized in Interest expense	1,078		(742)
Pre-tax gain (loss) on hedged debt recognized in Interest expense	(1,078)		742
Excluded components recognized in Other comprehensive income (loss)	(848)		282
Initial value of the excluded component amortized into Interest expense	23		26

	Three Months Ended
	March 31,
(dollars in millions)	2025		2024
Other, net Cash Flows from Financing Activities:
Cash paid for settlement of cross currency swaps, net	$	(73)	$	(216)

The following table summarizes the activity of our derivatives not designated in hedging relationships:

	Three Months Ended
	March 31,
(dollars in millions)	2025		2024
Foreign Exchange Forwards:
Notional value entered into	$	1,990	$	3,140
Notional value settled	1,880		3,060
Pre-tax gain (loss) recognized in Other income, net	29		(22)
Treasury Rate Locks:
Notional value entered into	250		—
Notional value settled	250		—
Pre-tax gain recognized in Interest expense	3		—

Schedule of Cumulative Basis Adjustments for Fair Value hedges

The following table displays the amounts recorded in Long-term debt in our condensed consolidated balance sheets related to cumulative basis adjustments for our interest rate swaps designated as fair value hedges. The cumulative amounts exclude cumulative basis adjustments related to foreign exchange risk.

	At March 31,		At December 31,
(dollars in millions)	2025		2024
Carrying amount of hedged liabilities	$	19,341	$	18,863
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities	(4,706)		(5,192)
Cumulative amount of fair value hedging adjustment remaining for which hedge accounting has been discontinued	267		281