Borrowings (Tables)

3 Months Ended

Mar. 31, 2015

Borrowings

Short-Term Debt

	At March 31,		At December 31,
(Dollars in millions)	2015		2014
Commercial paper	$	‒	$	650
Short-term loans		460		480
Long-term debt—current maturities		4,072		4,601
Total	$	4,532	$	5,731

Long-Term Debt

Long-Term Debt
Pre-Swap Borrowing
				Balance		Balance
(Dollars in millions)		Maturities	3/31/2015		12/31/2014
U.S. dollar notes and debentures (average interest rate at March 31, 2015):
1.20%	2015–2016		$	6,859	$	9,254
3.90%	2017–2018			8,709		6,835
2.20%	2019–2021			6,555		6,555
1.88%		2022		1,000		1,000
3.38%		2023		1,500		1,500
3.63%		2024		2,000		2,000
7.00%		2025		600		600
6.22%		2027		469		469
6.50%		2028		313		313
5.88%		2032		600		600
8.00%		2038		83		83
5.60%		2039		745		745
4.00%		2042		1,107		1,107
7.00%		2045		27		27
7.13%		2096		316		316
			$	30,884	$	31,404
Other currencies (average interest rate at March 31, 2015, in parentheses):				\
Euros (1.9%)	2015–2025		$	4,843	$	5,463
Pound sterling (2.8%)	2017–2020			1,118		1,176
Japanese yen (0.5%)	2017-2019			732		733
Swiss francs (3.8%)	2015–2020			165		162
Canadian (2.2%)		2017		394		432
Other (9.8%)	2015–2018			169		367
			$	38,306	$	39,737
Less: net unamortized discount				851		853
Add: fair value adjustment*				911		792
			$	38,367	$	39,675
Less: current maturities				4,072		4,601
Total			$	34,295	$	35,073

* The portion of the company’s fixed-rate debt obligations that is hedged is reflected in the ConsolidatedStatement of Financial Position as an amount equal to the sum of the debt’s carrying value plus a fair value adjustment representing changes in the fair value of the hedged debt obligations attributable to movements in benchmark interest rates.

Pre-swap annual contractual maturities of long-term debt outstanding

(Dollars in millions)	Total
2015 (for Q2-Q4)	$	1,880
2016		5,316
2017		5,218
2018		4,622
2019		3,931
2020 and beyond		17,339
Total	$	38,306

Interest on Debt

(Dollars in millions)
For the three months ended March 31:	2015		2014
Cost of financing	$	140	$	155
Interest expense		108		105
Net investment derivative activity		0		0
Interest capitalized		(2)		21
Total interest paid and accrued	$	245	$	281