v3.26.1
Fair Value Measurements
6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Note 13: Fair Value Measurements
The following tables provide the valuation hierarchy classification of assets and liabilities that are carried at fair value and measured on a recurring basis in our Condensed Consolidated Balance Sheet:
June 30, 2026
(dollars in millions)TotalLevel 1Level 2Level 3
Recurring fair value measurements:
Marketable securities held in trusts$711 $638 $73 $ 
Derivative assets300  300  
Derivative liabilities472  472  
December 31, 2025
(dollars in millions)TotalLevel 1Level 2Level 3
Recurring fair value measurements:
Marketable securities held in trusts$750 $676 $74 $— 
Derivative assets436 — 436 — 
Derivative liabilities265 — 265 — 
Valuation Techniques. Our derivative assets and liabilities include foreign exchange contracts that are measured at fair value using internal models based on observable market inputs such as forward rates, interest rates, our own credit risk, and our counterparties’ credit risks.
As of June 30, 2026, there has not been any significant impact to the fair value of our derivative liabilities due to our own credit risk. Similarly, there has not been any significant adverse impact to our derivative assets based on our evaluation of our counterparties’ credit risks.
The following table provides carrying amounts and fair values of financial instruments that are not carried at fair value in our Condensed Consolidated Balance Sheet:
 June 30, 2026December 31, 2025
(dollars in millions)Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
Long-term debt (excluding finance leases)$37,088 $34,887 $37,627 $35,733 
The following tables provide the valuation hierarchy classification of assets and liabilities that are not carried at fair value in our Condensed Consolidated Balance Sheet:
June 30, 2026
(dollars in millions)TotalLevel 1Level 2Level 3
Long-term debt (excluding finance leases)$34,887 $ $33,949 $938 
December 31, 2025
(dollars in millions)TotalLevel 1Level 2Level 3
Long-term debt (excluding finance leases)$35,733 $— $34,800 $933 
The fair value of our Short-term borrowings approximates the carrying value due to their short-term nature and is classified as level 3 within the fair value hierarchy.