BORROWINGS (Tables)

12 Months Ended

Dec. 31, 2017

BORROWINGS

Short-Term Debt

($ in millions)

At December 31:	2017		2016
Commercial paper	$	1,496	$	899
Short-term loans	276		375
Long-term debt—current maturities	5,214		6,239
Total	$	6,987	$	7,513

Long-Term Debt

Pre-Swap Borrowing

($ in millions)

At December 31:	Maturities	2017		2016
U.S. dollar debt (average interest rate at December 31, 2017):*
4.0%	2017	$	—	$	5,104
3.5%	2018	4,640		4,724
2.7%	2019	5,540		4,132
1.9%	2020	3,416		2,054
2.2%	2021	4,129		2,887
2.4%	2022	3,481		1,901
3.3%	2023	1,547		1,500
3.6%	2024	2,000		2,000
7.0%	2025	600		600
3.5%	2026	1,350		1,350
4.7%	2027	969		469
6.5%	2028	313		313
5.9%	2032	600		600
8.0%	2038	83		83
5.6%	2039	745		745
4.0%	2042	1,107		1,107
7.0%	2045	27		27
4.7%	2046	650		650
7.1%	2096	316		316
		31,515		30,563
Other currencies (average interest rate at December 31, 2017, in parentheses):*
Euros (1.5%)	2019—2029	10,502		7,122
Pound sterling (2.7%)	2020—2022	1,420		1,296
Japanese yen (0.3%)	2022—2026	1,291		1,576
Canadian (2.2%)	2017	—		373
Other (5.4%)	2018—2020	717		215
		45,445		41,145
Less: net unamortized discount		826		839
Less: net unamortized debt issuance costs		93		82
Add: fair value adjustment**		526		669
		45,052		40,893
Less: current maturities		5,214		6,239
Total		$	39,837	$	34,655

*Includes notes, debentures, bank loans, secured borrowings and capital lease obligations.

**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 and 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)

	2017				2016
For the year ended December 31:	Amount		Average Rate		Amount		Average Rate
Fixed-rate debt	$	29,007	2.73	%	$	27,414	3.18	%
Floating-rate debt*	16,044		2.10	%	13,480		1.59	%
Total	$	45,052			$	40,893

*Includes $9,138 million in 2017 and $7,338 million in 2016 of notional interest rate swaps that effectively convert fixed-rate long-term debt into floating-rate debt. See note D, “Financial Instruments,” on pages 102 to 107.

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

($ in millions)

	Total
2018	$	5,217
2019	7,128
2020	6,242
2021	5,196
2022	4,288
2023 and beyond	17,374
Total	$	45,445

Interest on Debt

($ in millions)

For the year ended December 31:	2017		2016		2015
Cost of financing	$	658	$	576	$	540
Interest expense	615		630		468
Interest capitalized	5		2		0
Total interest paid and accrued	$	1,278	$	1,208	$	1,008