DEBT

We have a commercial paper program with qualified institutional investors. We also obtain other short-term funding from the issuance of demand notes to retail investors through our floating rate demand notes program. We have certain securitization programs that issue short-term asset-backed debt securities that are sold to institutional investors. Bank borrowings by several of our international affiliates in the ordinary course of business are an additional source of short-term funding. We obtain long-term debt funding through the issuance of a variety of unsecured and asset-backed debt securities in the U.S. and international capital markets.

Asset-backed debt issued in securitizations is the obligation of the consolidated securitization entity that issued the debt and is payable only out of collections on the underlying securitized assets and related enhancements. This asset-backed debt is not the obligation of Ford Credit or our other subsidiaries.

Debt is recorded on our balance sheet at par value adjusted for unamortized discount or premium (with the exception of fair value adjustments related to debt in designated hedge relationships). Debt due within one year at issuance is classified as short-term. Debt due after one year at issuance is classified as long-term. Discounts, premiums, and costs directly related to the issuance of debt generally are capitalized and amortized over the life of the debt or put date and recorded in Interest expense using the effective interest method. Gains and losses on the extinguishment of debt are recorded in Other income, net.

Interest rates and debt outstanding were as follows (in millions):



	Interest Rates
	Average Contractual				Average Effective				Debt
	2015		2014		2015		2014		March 31, 2015			December 31, 2014
Short-term debt
Unsecured debt
Floating rate demand notes									$	5,731		$	5,559
Commercial paper									1,986			1,651
Other short-term debt									2,340			2,564
Asset-backed debt									1,541			1,377
Total short-term debt	1.8	%	1.9	%	1.8	%	1.9	%	11,598			11,151
Long-term debt
Unsecured debt
Notes payable within one year									7,845			9,102
Notes payable after one year									45,493			42,488
Asset-backed debt
Notes payable within one year									17,567			16,722
Notes payable after one year									25,999			25,197
Unamortized discount									(45		)	(51		)
Fair value adjustments									619			428
Total long-term debt	2.6	%	2.7	%	2.7	%	2.8	%	97,478			93,886
Total debt	2.5	%	2.6	%	2.6	%	2.7	%	$	109,076		$	105,037

Fair value of debt									$	111,268		$	107,190
Interest rate characteristics of debt payable after one year
Fixed interest rate									51,962			49,148
Variable interest rate (generally based on LIBOR or other short-term rates)									19,530			18,537
Total payable after one year									$	71,492		$	67,685

NOTE 9. DEBT (Continued)

With the exception of commercial paper, which is issued at a discount, the average contractual rates reflect the stated contractual interest rate. Average effective rates reflect the average contractual interest rate plus amortization of discounts, premiums, and issuance fees. Fair value adjustments relate to designated fair value hedges of unsecured debt.

The fair value of debt reflects interest accrued but not yet paid of $553 million and $586 million at March 31, 2015 and December 31, 2014, respectively. Interest accrued is reported in Other liabilities and deferred income for outside debt and Accounts payable - affiliated companies for debt with affiliated companies. The fair value of debt also includes $10.1 billion and $9.8 billion of short-term debt at March 31, 2015 and December 31, 2014, respectively, carried at cost which approximates fair value. See Note 12 for additional information.

Debt with affiliated companies included in the above table was as follows (in millions):



	March 31, 2015		December 31, 2014
Other short-term debt	$	92	$	13
Notes payable within one year	202		307
Notes payable after one year	4		5
Total debt with affiliated companies	$	298	$	325

Debt Maturities. Short-term and long-term debt matures at various dates through 2048. At March 31, 2015, maturities were as follows (in millions):



	2015 (a)		2016 (b)		2017		2018		2019		Thereafter (c)		Total
Unsecured debt	$	16,036	$	10,628	$	12,044	$	7,968	$	5,418	$	11,301	$	63,395
Asset-backed debt	14,204		14,632		8,477		2,265		2,906		2,623		45,107
Total	30,240		25,260		20,521		10,233		8,324		13,924		108,502
Unamortized discount													(45		)
Fair value adjustments													619
Total debt													$	109,076

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(a)	Includes $10,914 million for short-term and $19,326 million for long-term debt.


(b)	Includes $684 million for short-term and $24,576 million for long-term debt.


(c)	Includes $11,284 million of unsecured debt maturing between 2020 and 2025 with the remaining balance maturing after 2032.