Borrowings (Tables)

9 Months Ended

Sep. 30, 2016

Borrowings:

Short-Term Debt

Short-Term Debt

	At September 30,		At December 31,
(Dollars in millions)	2016		2015
Commercial paper	$	—	$	600
Short-term loans	359		590
Long-term debt — current maturities	6,561		5,271
Total	$	6,920	$	6,461

Long-Term Debt

Long-Term Debt

Pre-Swap Borrowing

		Balance		Balance
(Dollars in millions)	Maturities	9/30/2016		12/31/2015
U.S. dollar notes and debentures (average interest rate at September 30, 2016):
3.94%	2016–2017	$	5,151	$	9,351
3.20%	2018–2019	8,846		7,591
1.79%	2020–2021	4,944		3,717
2.35%	2022	1,902		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
		$	30,604	$	30,319
Other currencies (average interest rate at September 30, 2016, in parentheses):
Euros (1.6%)	2016–2028	$	7,582	$	4,892
Pound sterling (2.7%)	2017–2022	1,366		1,555
Japanese yen (0.3%)	2017–2022	1,400		1,180
Swiss francs (6.3%)	2020	8		9
Canadian (2.2%)	2017	381		360
Other (15.4%)	2016–2020	659		506
		$	42,001	$	38,820
Less: net unamortized discount		847		838
Less: net unamortized debt issuance cost		86		74
Add: fair value adjustment*		1,057		790
		$	42,124	$	38,699
Less: current maturities		6,561		5,271
Total		$	35,563	$	33,428

*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.

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

(Dollars in millions)	Total
2016 (for Q4)	$	61
2017	6,961
2018	4,749
2019	5,262
2020	4,747
2021 and beyond	20,220
Total	$	42,001

Interest on Debt

(Dollars in millions)
For the nine months ended September 30:	2016			2015
Cost of financing	$	432		$	407
Interest expense	523			346
Net investment derivative activity	(51		)	(6		)
Interest capitalized	3			(1		)
Total interest paid and accrued	$	907		$	746