v3.26.3
Fair Value Measurements and Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2026
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 September 30, 2026:
(dollars in millions)
Level 1(1)
Level 2(2)
Level 3(3)
Total
Assets:
Prepaid expenses and other:
Fixed income securities$— $26 $— $26 
Cross currency swaps— 18 — 18 
Interest rate caps— 14 — 14 
Other assets:
Marketable equity securities
369 — — 369 
Fixed income securities— 353 — 353 
Cross currency swaps— 1,037 — 1,037 
Total$369 $1,448 $— $1,817 
Liabilities:
Other current liabilities:
Interest rate swaps$— $2,702 $— $2,702 
Cross currency swaps— 309 — 309 
Interest rate caps— 14 — 14 
Foreign exchange forwards— 6 — 6 
Other liabilities:
Interest rate swaps— 3,610 — 3,610 
Cross currency swaps— 950 — 950 
Variable prepaid forward— — 313 313 
Total$— $7,591 $313 $7,904 
(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, 2025:
(dollars in millions)
Level 1(1)
Level 2(2)
Level 3(3)
Total
Assets:
Prepaid expenses and other:
Fixed income securities$— $40 $— $40 
Cross currency swaps— 4 — 4 
Foreign exchange forwards— 1 — 1 
Other assets:
Marketable equity securities453 — — 453 
Fixed income securities— 344 — 344 
Cross currency swaps— 1,417 — 1,417 
Total$453 $1,806 $— $2,259 
Liabilities:
Other current liabilities:
Interest rate swaps
$— $1,910 $— $1,910 
Cross currency swaps
— 222 — 222 
Foreign exchange forwards
— 1 — 1 
Other liabilities:
Interest rate swaps
— 3,171 — 3,171 
Cross currency swaps
— 951 — 951 
Total$— $6,255 $— $6,255 
(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 AmountLevel 1Level 2Level 3Total
At September 30, 2026$162,381 $88,344 $66,140 $— $154,484 
At December 31, 2025155,639 91,664 62,640 — 154,304 
Notional Amounts of Outstanding Derivative Instruments
The following table sets forth the notional amounts of our outstanding derivative instruments:
At September 30,At December 31,
(dollars in millions)20262025
Interest rate swaps$22,417 $23,674 
Cross currency swaps40,173 36,074 
Foreign exchange forwards360 570 
Variable prepaid forward422 — 
Schedule Of Derivative Instruments Activity
The following tables summarize the activities of our designated derivatives:
Three Months EndedNine Months Ended
September 30,September 30,
(dollars in millions)2026202520262025
Interest Rate Swaps:
Notional value entered into$— $— $— $— 
Notional value settled1,250 — 1,250 985 
Pre-tax gain recognized in Interest expense
6 — 14 — 
Cross Currency Swaps:
Notional value entered into— 2,294 3,836 2,294 
Notional value settled— 995 309 2,170 
Pre-tax gain (loss) on cross currency swaps recognized in Interest expense
(238)(206)(1,175)3,293 
Pre-tax gain (loss) on hedged debt recognized in Interest expense
238 206 1,175 (3,293)
Excluded components recognized in Other comprehensive income (loss)
209 (191)725 (1,068)
    Initial value of the excluded component amortized into Interest expense
22 23 65 70 
Treasury Rate Locks:
Notional value entered into— 1,100 — 6,000 
Notional value settled— — — — 
Pre-tax loss recognized in Other comprehensive income (loss)
— (42)— (97)

Nine Months Ended
September 30,
(dollars in millions)20262025
Other, net Cash Flows from Operating Activities:
Cash paid for settlement of interest rate swaps$(54)$(45)
Other, net Cash Flows from Financing Activities:
Cash received (paid) for settlement of cross currency swaps, net17 (91)
The following table summarizes the activity of our derivatives not designated in hedging relationships:
Three Months EndedNine Months Ended
September 30,September 30,
(dollars in millions)2026202520262025
Foreign Exchange Forwards:
    Notional value entered into$1,430 $2,050 $4,605 $6,030 
Notional value settled1,670 2,030 4,815 5,900 
Pre-tax gain (loss) recognized in Other income, net
(4)(8)(26)80 
Cross Currency Swaps:
Notional value entered into— — 572 — 
Notional value settled— — — — 
Pre-tax gain recognized in Interest expense
25 — 14 — 
Treasury Rate Locks:
Notional value entered into— — — 1,250 
Notional value settled— — — 1,250 
Pre-tax loss recognized in Interest expense
— — — (5)
Variable Prepaid Forward:
Notional value entered into— — 422 — 
Notional value settled— — — — 
Pre-tax gain recognized in Other income, net
181 — 46 — 
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 September 30,At December 31,
(dollars in millions)20262025
Carrying amount of hedged liabilities$16,320 $18,815 
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities(6,089)(4,841)
Cumulative amount of fair value hedging adjustment remaining for which hedge accounting has been discontinued193 214