Borrowings (Tables)

6 Months Ended

Jun. 30, 2015

Borrowings

Short-Term Debt

	At June 30,		At December 31,
(Dollars in millions)	2015		2014
Commercial paper	$	700	$	650
Short-term loans		703		480
Long-term debt – current maturities		3,926		4,601
Total	$	5,329	$	5,731

Long-Term Debt

Long-Term Debt
Pre-Swap Borrowing
				Balance		Balance
(Dollars in millions)		Maturities	6/30/2015		12/31/2014
U.S. dollar notes and debentures (average interest rate at June 30, 2015):
1.28%	2015–2016		$	5,927	$	9,254
3.91%	2017–2018			8,712		6,835
2.21%	2019–2021			6,582		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
			$	29,981	$	31,404
Other currencies (average interest rate at June 30, 2015, in parentheses):				\
Euros (1.9%)	2015–2025		$	5,019	$	5,463
Pound sterling (2.8%)	2017–2020			1,188		1,176
Japanese yen (0.5%)	2017-2019			718		733
Swiss francs (6.3%)	2020			11		162
Canadian (2.2%)		2017		401		432
Other (4.4%)	2015–2018			75		367
			$	37,393	$	39,737
Less: net unamortized discount				845		853
Add: fair value adjustment*				717		792
			$	37,265	$	39,675
Less: current maturities				3,926		4,601
Total			$	33,339	$	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 Q3-Q4)	$	773
2016		5,222
2017		5,212
2018		4,642
2019		3,999
2020 and beyond		17,545
Total	$	37,393

Interest on Debt

(Dollars in millions)
For the six months ended June 30:	2015		2014
Cost of financing	$	276	$	279
Interest expense		225		239
Net investment derivative activity		(3)		1
Interest capitalized		(3)		3
Total interest paid and accrued	$	496	$	522