Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2026

Schedule of Fair Value Measurement Inputs and Valuation Techniques

The three input levels in the hierarchy of fair value measurements are defined by the FASB generally as follows:


Input Level						Description of Input
Level 1						Observable inputs such as quoted market prices in active markets.
Level 2						Inputs other than quoted prices in active markets that are either directly or indirectly observable.
Level 3						Unobservable inputs in which little or no market data exists.

Schedule of Carrying Amounts and Estimated Fair Values of Financial Assets and Liabilities

The following table presents the carrying amounts and estimated fair values of our financial liabilities, as well as the input level used to determine the fair values indicated below:


		March 31, 2026			December 31, 2025
	Input Level	Carrying Amount		Fair Value	Carrying Amount	Fair Value
		(Dollars in millions)

Long-term debt, excluding finance lease and other obligations	2	$	12,737	12,406	17,221	17,101
Indemnifications related to the sale of the Latin American business(1)	3	85		82	86	82
Regulatory cost liability related to the sale of the Mass Markets Fiber-to-the-Home business(2)	3	36		36	—	—

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(1)Nonrecurring fair value is measured as of August 1, 2022.

(2)Nonrecurring fair value is measured as of February 2, 2026.