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Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2020
Fair Value Disclosures [Abstract]  
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 Consolidated Balance Sheets as of December 31, 2020 and 2019:

December 31, 2020
(dollars in millions)TotalLevel 1Level 2Level 3
Recurring fair value measurements:
Equity securities$59 $59 $ $ 
Derivative assets46  46  
Derivative liabilities(43) (43) 
December 31, 2019
(dollars in millions)TotalLevel 1Level 2Level 3
Recurring fair value measurements:
Equity securities$$$— $— 
Derivative assets— — 
Derivative liabilities(5)— (5)— 
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 in our Consolidated Balance Sheets at December 31, 2020 and 2019:

 December 31, 2020December 31, 2019
(dollars in millions)Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
Long-term receivables, net$65 $62 $62 $62 
Customer financing notes receivable, net128 126 62 62 
Short-term borrowings(701)(701)(34)(34)
Long-term debt (excluding leases and other)(5,300)(5,717)— — 
Long-term liabilities(263)(234)(4)(4)

Long-term liabilities as of December 31, 2020 includes $239 million of payables to RTX for reimbursement of tax payments RTX is responsible to pay after the Separation as a result of the TMA.

The following tables provide the valuation hierarchy classification of assets and liabilities that are not carried at fair value in the Consolidated Balance Sheets at December 31, 2020 and 2019:

December 31, 2020
(dollars in millions)TotalLevel 1Level 2Level 3
Long-term receivables, net$62 $ $62 $ 
Customer financing notes receivable, net126  126  
Short-term borrowings(701) (701) 
Long-term debt (excluding leases and other)(5,717) (5,717)
Long-term liabilities(234) (234) 
December 31, 2019
(dollars in millions)TotalLevel 1Level 2Level 3
Long-term receivables$62 $— $62 $— 
Customer financing notes receivable, net62 — 62 — 
Short-term borrowings(34)— (34)— 
Long-term liabilities(4)— (4)—