Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2013

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of June 30, 2013:

(dollars in millions)	Level 1 (1)		Level 2 (2)		Level 3 (3)		Total
Assets:
Short-term investments:
Equity securities	$	333	$	–	$	–	$	333
Fixed income securities		–		285		–		285
Other assets:
Fixed income securities		–		866		–		866
Cross currency swaps		–		52		–		52
Total	$	333	$	1,203	$	–	$	1,536
Liabilities:
Other liabilities:
Cross currency swaps	$	–	$	4	$	–	$	4
Total	$	–	$	4	$	–	$	4

⁽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⁾ no observable 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 June 30, 2013				At December 31, 2012
(dollars in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Short- and long-term debt, excluding capital leases	$	49,432	$	54,928	$	51,689	$	61,552