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Fair Value Measurements
6 Months Ended
Jun. 30, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
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, 2021 and December 31, 2020: 

June 30, 2021
(dollars in millions)TotalLevel 1Level 2Level 3
Recurring fair value measurements:
Equity securities$24 $24 $ $ 
Derivative assets29  29  
Derivative liabilities(18) (18) 

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)— 

Valuation Techniques. Our equity securities include equity investments that are traded in active markets, either domestically or internationally, and are measured at fair value using closing stock prices from active markets. The fair value gains or losses related to our equity securities are recorded through Other income (expense), net. 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. Our notes, as described in Note 9, "Borrowings and Lines of Credit", are measured at fair value using closing bond prices from active markets.
As of June 30, 2021, 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 at June 30, 2021 and December 31, 2020:

 June 30, 2021December 31, 2020
(dollars in millions)Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
Long-term receivables, net$71 $70 $65 $62 
Customer financing notes receivable, net121 120 128 126 
Short-term borrowings(343)(343)(701)(701)
Long-term debt (excluding leases and other)(5,494)(5,682)(5,300)(5,717)
Long-term liabilities (including current portion)(261)(252)(263)(234)

The following tables provide the valuation hierarchy classification of assets and liabilities that are not carried at fair value in the Condensed Consolidated Balance Sheet at June 30, 2021 and December 31, 2020:

June 30, 2021
(dollars in millions)TotalLevel 1Level 2Level 3
Long-term receivables, net$70 $ $70 $ 
Customer financing notes receivable, net120  120  
Short-term borrowings(343) (343) 
Long-term debt (excluding leases and other)(5,682) (5,682) 
Long-term liabilities (including current portion)(252) (252) 
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 (including current portion)(234)— (234)—