Borrowings (Tables)

3 Months Ended

Mar. 31, 2016

Borrowings

Short-Term Debt

	At March 31,		At December 31,
(Dollars in millions)	2016		2015
Commercial paper	$	—	$	600
Short-term loans		302		590
Long-term debt – current maturities		5,000		5,271
Total	$	5,303	$	6,461

Long-Term Debt

Long-Term Debt
Pre-Swap Borrowing
				Balance		Balance
(Dollars in millions)		Maturities	3/31/2016		12/31/2015
U.S. dollar notes and debentures (average interest rate at March 31, 2016):
3.00%	2016–2017		$	8,239	$	9,351
3.17%	2018–2019			8,826		7,591
1.71%	2020–2021			4,940		3,717
2.35%		2022		1,901		1,900
3.38%		2023		1,500		1,500
3.63%		2024		2,000		2,000
7.00%		2025		600		600
3.45%		2026		1,350		—
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
4.70%		2046		650		—
7.13%		2096		316		316
			$	33,667	$	30,319
Other currencies (average interest rate at March 31, 2016, in parentheses):				\
Euros (1.6%)	2016–2028		$	7,691	$	4,892
Pound sterling (2.7%)	2017–2022			1,514		1,555
Japanese yen (0.4%)	2017–2022			1,262		1,180
Swiss francs (6.3%)	2020			9		9
Canadian (2.2%)		2017		386		360
Other (13.6%)	2016–2020			658		506
			$	45,188	$	38,820
Less: net unamortized discount				861		838
Less: net unamortized debt issuance cost				95		74
Add: fair value adjustment*				1,022		790
			$	45,254	$	38,699
Less: current maturities				5,000		5,271
Total			$	40,254	$	33,428

* 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
2016 (for Q2-Q4)	$	3,198
2017		6,798
2018		4,777
2019		5,271
2020		4,873
2021 and beyond		20,272
Total	$	45,188

Interest on Debt

(Dollars in millions)
For the three months ended March 31:	2016		2015
Cost of financing	$	138	$	140
Interest expense		157		108
Net investment derivative activity		(10)		0
Interest capitalized		1		(2)
Total interest paid and accrued	$	286	$	245