| Schedule of Fair Value Measurements, Recurring and Nonrecurring |
In accordance with the provisions of ASC 820: 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 and non-recurring basis in our Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | (dollars in millions) | | Total | | Level 1 | | Level 2 | | Level 3 | | Recurring fair value measurements: | | | | | | | | | | Marketable securities | | $ | 58 | | | $ | 58 | | | $ | — | | | $ | — | | | Derivative assets | | 105 | | | — | | | 105 | | | — | | | Derivative liabilities | | (30) | | | — | | | (30) | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | (dollars in millions) | | Total | | Level 1 | | Level 2 | | Level 3 | | Recurring fair value measurements: | | | | | | | | | | Marketable securities | | $ | 55 | | | $ | 55 | | | $ | — | | | $ | — | | | Derivative assets | | 20 | | | — | | | 20 | | | — | | | Derivative liabilities | | (32) | | | — | | | (32) | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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| Schedule of Fair Value, by Balance Sheet Grouping |
The following table provides carrying amounts and fair values of financial instruments that are not carried at fair value as of June 30, 2026 and December 31, 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | (dollars in millions) | | Carrying Amount | | Fair Value | | Carrying Amount | | Fair Value | | Long-term receivables, net | | $ | 52 | | | $ | 51 | | | $ | 49 | | | $ | 48 | | | Customer financing notes receivable, net | | 14 | | | 11 | | | 16 | | | 14 | | | Short-term borrowings | | (210) | | | (210) | | | (214) | | | (214) | | | Long-term debt, including current portion (excluding leases and other) | | (8,264) | | | (7,690) | | | (7,779) | | | (7,269) | | | Long-term liabilities, including current portion | | (26) | | | (25) | | | (84) | | | (81) | |
The following tables provide the valuation hierarchy classification of assets and liabilities that are not carried at fair value in the Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | (dollars in millions) | | Total | | Level 1 | | Level 2 | | Level 3 | | Long-term receivables, net | | $ | 51 | | | $ | — | | | $ | 51 | | | $ | — | | | Customer financing notes receivable, net | | 11 | | | — | | | 11 | | | — | | | Short-term borrowings | | (210) | | | — | | | (210) | | | — | | | Long-term debt, including current portion (excluding leases and other) | | (7,690) | | | — | | | (7,690) | | | — | | | Long-term liabilities, including current portion | | (25) | | | — | | | (25) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | (dollars in millions) | | Total | | Level 1 | | Level 2 | | Level 3 | | Long-term receivables, net | | $ | 48 | | | $ | — | | | $ | 48 | | | $ | — | | | Customer financing notes receivable, net | | 14 | | | — | | | 14 | | | — | | | Short-term borrowings | | (214) | | | — | | | (214) | | | — | | | Long-term debt, including current portion (excluding leases and other) | | (7,269) | | | — | | | (7,269) | | | — | | | Long-term liabilities, including current portion | | (81) | | | — | | | (81) | | | — | |
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