Borrowings (Tables)

12 Months Ended

Dec. 31, 2012

Borrowings

Short-Term Debt

($ in millions)

At December 31:	2012		2011
Commercial paper	$	1,800	$	2,300
Short-term loans	1,789		1,859
Long-term debt—current maturities	5,593		4,306
Total	$	9,181	$	8,463

Long-Term Debt

($ in millions)

At December 31:	Maturities	2012		2011
U.S. dollar notes and debentures (average interest rate at December 31, 2012):
2.79%	2013–2014	$	7,131	$	8,615
1.46%	2015–2016	5,807		2,414
5.29%	2017–2021	7,457		8,600
1.88%	2022	1,000		500
7.00%	2025	600		600
6.22%	2027	469		469
6.50%	2028	313		313
5.875%	2032	600		600
8.00%	2038	83		187
5.60%	2039	745		1,545
4.00%	2042	1,107		—
7.00%	2045	27		27
7.125%	2096	316		322
		25,656		24,192
Other currencies (average interest rate at December 31, 2012, in parentheses):
Euros(3.6 %)	2013–2019	2,338		1,037
Japanese yen (0.7%)	2013–2014	878		1,123
Swiss francs (3.8%)	2015–2020	178		173
Canadian (2.2%)	2017	502		—
Other(4.6 %)	2013–2017	107		177
		29,660		26,702
Less: net unamortized discount		865		533
Add: fair value adjustment*		886		994
		29,680		27,161
Less: current maturities		5,593		4,306
Total		$	24,088	$	22,857

* The portion of the company’s fixed-rate debt obligations that is hedged is reflected in the Consolidated Statement 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.

Post-Swap Borrowing (Long-Term Debt, Including Current Portion)

(in millions)

	2012				2011
For the year ended December 31:	Amount		Average Rate		Amount		Average Rate
Fixed-rate debt	$	24,049	3.43	%	$	18,547	4.38	%
Floating-rate debt*	5,631		1.91	%	8,614		1.54	%
Total	$	29,680			$	27,161

* Includes $4,252 million in 2012 and $5,898 million in 2011 of notional interest rate swaps that effectively convert the fixed-rate long-term debt into floating-rate debt. (See note D, “Financial Instruments,” on pages 92 to 98.)

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

($ in millions)

	Total
2013	$	5,561
2014	3,791
2015	2,677
2016	3,058
2017	4,531
2018 and beyond	10,042
Total	$	29,660

Interest on Debt

($ in millions)

For the year ended December 31:	2012			2011		2010
Cost of financing	$	545		$	553	$	555
Interest expense	470			402		365
Net investment derivative activity	(11		)	9		3
Interest capitalized	18			9		5
Total interest paid and accrued	$	1,022		$	973	$	928