Registration of securities issued in business combination transactions

FAIR VALUE (Tables)

v2.4.0.8
FAIR VALUE (Tables)
 3 Months Ended 12 Months Ended
Mar. 31, 2014
Dec. 31, 2013
FAIR VALUE    
Fair values of financial instruments

   The fair values of financial instruments were as follows (dollars in millions):

 
   March 31, 2014   December 31, 2013  
 
   Carrying
Value		   Estimated
Fair Value		   Carrying
Value		   Estimated
Fair Value		  

Non-qualified employee benefit plan investments

   $ 21   $ 21   $ 21   $ 21  

Cross-currency interest rate contracts

     1     1     2     2  

Interest rate contracts

     (9 )   (9 )   (10 )   (10 )

Long-term debt (including current portion)

     (3,891 )   (4,006 )   (3,910 )   (4,010 )

The fair values of our financial instruments were as follows (dollars in millions):

 
   December 31,  
 
   2013   2012  
 
   Carrying
Value		   Estimated
Fair Value		   Carrying
Value		   Estimated
Fair Value		  

Non-qualified employee benefit plan investments

   $ 21   $ 21   $ 14   $ 14  

Cross-currency interest rate contacts

     2     2     18     18  

Interest rate contracts

     (10 )   (10 )   (18 )   (18 )

Long-term debt (including current portion)

     (3,910 )   (4,010 )   (3,702 )   (3,869 )
Assets and liabilities are measured at fair value on a recurring basis

   The following assets and liabilities are measured at fair value on a recurring basis (dollars in millions):

 
    
   Fair Value Amounts Using  
Description
  March 31,
2014		   Quoted prices
in active
markets for
identical
assets
(Level 1)(3)		   Significant
other
observable
inputs
(Level 2)(3)		   Significant
unobservable
inputs
(Level 3)(3)		  

Assets:

                          

Available-for sale equity securities:

                          

Equity mutual funds

   $ 21   $ 21   $ —   $ —  

Derivatives:

                          

Cross-currency interest rate contracts(1)

     1     —     1     —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total assets

   $ 22   $ 21   $ 1   $ —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Liabilities:

                          

Derivatives:

                          

Interest rate contracts(2)

   $ (9 ) $ —   $ (9 ) $ —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   


 

 
    
   Fair Value Amounts Using  
Description
  December 31,
2013		   Quoted prices
in active
markets for
identical
assets
(Level 1)(3)		   Significant
other
observable
inputs
(Level 2)(3)		   Significant
unobservable
inputs
(Level 3)(3)		  

Assets:

                          

Available-for sale equity securities:

                          

Equity mutual funds

   $ 21   $ 21   $ —   $ —  

Derivatives:

                          

Cross-currency interest rate contracts(1)

     2     —     2     —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total assets

   $ 23   $ 21   $ 2   $ —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Liabilities:

                          

Derivatives:

                          

Interest rate contracts(2)

   $ (10 ) $ —   $ (10 ) $ —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   
(1)
The income approach is used to calculate the fair value of these instruments. Fair value represents the present value of estimated future cash flows, calculated using relevant interest rates, exchange rates, and yield curves at stated intervals. There were no material changes to the valuation methods or assumptions used to determine the fair value during the current period.

(2)
The income approach is used to calculate the fair value of these instruments. Fair value represents the present value of estimated future cash flows, calculated using relevant interest rates and yield curves at stated intervals. There were no material changes to the valuation methods or assumptions used to determine the fair value during the current period.

(3)
There were no transfers between Levels 1 and 2 within the fair value hierarchy for the three months ended March 31, 2014 and the year ended December 31, 2013. During the three months ended March 31, 2014 and 2013, there were no instruments categorized as Level 3 within the fair value hierarchy.

The following assets and liabilities are measured at fair value on a recurring basis (dollars in millions):

 
    
   Fair Value Amounts Using  
Description
  December 31,
2013		   Quoted prices
in active
markets for
identical
assets
(Level 1)(3)		   Significant
other
observable
inputs
(Level 2)(3)		   Significant
unobservable
inputs
(Level 3)		  

Assets:

                          

Available-for sale equity securities:

                          

Equity mutual funds

   $ 21   $ 21   $ —   $ —  

Derivatives:

                          

Cross-currency interest rate contracts(1)

     2     —     2     —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total assets

   $ 23   $ 21   $ 2   $ —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Liabilities:

                          

Derivatives:

                          

Interest rate contracts(2)

   $ (10 ) $ —   $ (10 ) $ —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

 

 
    
   Fair Value Amounts Using  
Description
  December 31,
2012		   Quoted prices
in active
markets for
identical assets
(Level 1)(3)		   Significant
other
observable
inputs
(Level 2)(3)		   Significant
unobservable
inputs
(Level 3)		  

Assets:

                          

Available-for sale equity securities:

                          

Equity mutual funds

   $ 14   $ 14   $ —   $ —  

Derivatives:

                          

Cross-currency interest rate contracts(1)

     18     —     18     —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total assets

   $ 32   $ 14   $ 18   $ —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Liabilities:

                          

Derivatives:

                          

Interest rate contracts(2)

   $ (18 ) $ —   $ (18 ) $ —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   
(1)
The income approach is used to calculate the fair value of these instruments. Fair value represents the present value of estimated future cash flows, calculated using relevant interest rates, exchange rates, and yield curves at stated intervals.

(2)
The income approach is used to calculate the fair value of these instruments. Fair value represents the present value of estimated future cash flows, calculated using relevant interest rates and yield curves at stated intervals. There were no material changes to the valuation methods or assumptions used to determine the fair value during the current period.

(3)
There were no transfers between Levels 1 and 2 within the fair value hierarchy for the years ended December 31, 2013 and 2012. During the year ended December 31, 2013, there were no instruments categorized as Level 3 within the fair value hierarchy.