Fair Value Measurements and Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2014

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, 2014:

					(dollars in millions)
	Level 1(1)		Level 2(2)		Level 3(3)		Total
Assets:
Short-term investments:
Equity securities	$	295	$	–	$	–	$	295
Fixed income securities		–		260		–		260
Other assets:
Fixed income securities		250		893		–		1,143
Interest rate swaps		–		72		–		72
Cross currency swaps		–		6		–		6
Total	$	545	$	1,231	$	–	$	1,776
Liabilities:
Other current liabilities:
Cross currency swaps and other	$	–	$	74	$	–	$	74
Other liabilities:
Forward interest rate swaps		–		216		–		216
Cross currency swaps		–		528		–		528
Total	$	–	$	818	$	–	$	818

⁽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⁾  no observable 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 capital leases, was as follows:

					(dollars in millions)
At December 31,	2014				2013
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Short- and long-term debt, excluding capital leases	$	112,755	$	126,549	$	93,298	$	103,527