v3.25.4
Fair Value Measurements and Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2025
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 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 securities
453 — — 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.

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2024:
(dollars in millions)
Level 1(1)
Level 2(2)
Level 3(3)
Total
Assets:
Prepaid expenses and other:
Fixed income securities$— $16 $— $16 
Interest rate caps— 3 — 3 
Other assets:
  Fixed income securities— 269 — 269 
  Cross currency swaps— 500 — 500 
Total$— $788 $— $788 
Liabilities:
Other current liabilities:
Interest rate swaps$— $1,964 $— $1,964 
Cross currency swaps— 345 — 345 
  Foreign exchange forwards— 5 — 5 
Interest rate caps— 3 — 3 
Other liabilities:
  Interest rate swaps— 3,338 — 3,338 
  Cross currency swaps— 2,344 — 2,344 
Total$— $7,999 $— $7,999 
(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
Amount		Level 1Level 2Level 3Total
At December 31, 2025
$155,639 $91,664 $62,640 $— $154,304 
At December 31, 2024
141,665 81,552 55,464 — 137,016 
Notional Amounts of Outstanding Derivative Instruments
The following table sets forth the notional amounts of our outstanding derivative instruments:
(dollars in millions)
At December 31,20252024
Interest rate swaps$23,674 $24,025 
Cross currency swaps36,074 32,053 
Foreign exchange forwards570 620 
Schedule Of Derivative Instruments Activity
The following tables summarize the activities of our designated derivatives:
(dollars in millions)
Years Ended December 31,20252024
Interest Rate Swaps:
Notional value entered into$634 $— 
Notional value settled985 2,046 
Pre-tax gain (loss) recognized in Interest expense(10)4 
Cross Currency Swaps:
Notional value entered into6,191 2,146 
Notional value settled2,170 3,619 
Pre-tax gain (loss) on cross currency swaps recognized in Interest expense3,476 (1,839)
Pre-tax gain (loss) on hedged debt recognized in Interest expense(3,476)1,839 
Excluded components recognized in Other comprehensive income (loss)
(1,131)730 
Initial value of the excluded component amortized into Interest expense92 96 
Treasury Rate Locks:
Notional value entered into6,000 1,000 
    Notional value settled6,000 1,000 
Pre-tax gain (loss) recognized in Other comprehensive income (loss)
(121)(21)

(dollars in millions)
Years Ended December 31,20252024
Other, net Cash Flows from Operating Activities:
  Cash paid for settlement of interest rate swaps
$(45)$(57)
  Cash received (paid) for settlement of treasury rate locks(1)
— (21)
Other, net Cash Flows from Financing Activities:
Cash paid for settlement of cross currency swaps, net(91)(243)
(1) In 2025, treasury rate locks settlement payments amounting to $121 million were deferred by incorporating the settlement amounts into the cash flows due of certain fixed-to-float interest rate swaps executed in November 2025. Inclusion of the treasury rate locks settlement amounts into the cash flows of these fixed-to-float interest rate swaps resulted in an other-than-insignificant financing element at inception. As such, the cash flows associated with these interest rate swaps will be classified as financing activities in the consolidated statements of cash flows.
The following table summarizes the activity of our derivatives not designated in hedging relationships:
(dollars in millions)
Years Ended December 31,20252024
Foreign Exchange Forwards:
Notional value entered into$7,740 $8,640 
Notional value settled7,790 9,070 
Pre-tax gain (loss) recognized in Other income (expense), net
75 (50)
Treasury Rate Locks:
Notional value entered into1,250 — 
Notional value settled1,250 — 
Pre-tax gain (loss) recognized in Interest expense(5)— 
Schedule of Cumulative Basis Adjustments for Fair Value Hedges
The following table displays the amounts recorded in Long-term debt in our 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.
(dollars in millions)
At December 31,20252024
Carrying amount of hedged liabilities$18,815 $18,863 
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities(4,841)(5,192)
Cumulative amount of fair value hedging adjustment remaining for which hedge accounting has been discontinued214 281