11. Borrowings:

Short-Term Debt

	At March 31,		At December 31,
(Dollars in millions)	2017		2016
Commercial paper	$	—	$	899
Short-term loans	285		375
Long-term debt — current maturities	8,055		6,239

Total	$	8,340	$	7,513

The weighted-average interest rate for commercial paper at December 31, 2016 was 0.7 percent. The weighted-average interest rate for short-term loans was 7.7 percent and 9.5 percent at March 31, 2017 and December 31, 2016, respectively.

Long-Term Debt

Pre-Swap Borrowing

		Balance		Balance
(Dollars in millions)	Maturities	3/31/2017		12/31/2016
U.S. dollar debt (average interest rate at March 31, 2017):*
4.69%	2017	$	3,980	$	5,104
3.24%	2018-2019	8,967		8,856
1.86%	2020-2021	6,198		4,941
1.54%	2022	2,903		1,901
3.38%	2023	1,500		1,500
3.63%	2024	2,000		2,000
7.00%	2025	600		600
3.45%	2026	1,350		1,350
3.01%	2027	969		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		650
7.13%	2096	316		316

		$	32,309	$	30,563
Other currencies (average interest rate at March 31, 2017, in parentheses):*

Euros (1.6%)	2019-2028	$	7,217	$	7,122
Pound sterling (2.7%)	2020-2022	1,312		1,296
Japanese yen (0.9%)	2017-2026	1,649		1,576
Canadian (2.2%)	2017	—		373
Other (10.0%)	2017-2020	305		215

		$	42,792	$	41,145
Less: net unamortized discount		838		839
Less: net unamortized debt issuance costs		84		82
Add: fair value adjustment**		627		669

		$	42,498	$	40,893
Less: current maturities		8,055		6,239

Total		$	34,441	$	34,655

* Includes notes, debentures, bank loans, securitized 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 plus a fair value adjustment representing changes in the fair value of the hedged debt obligations attributable to movements in benchmark interest rates.

There are no debt securities issued and outstanding by IBM International Group Capital LLC, which is an indirect, 100 percent owned finance subsidiary of International Business Machines Corporation, the parent. Any debt securities issued by IBM International Group Capital LLC, would be fully and unconditionally guaranteed by the parent.

The company’s indenture governing its debt securities and its various credit facilities each contain significant covenants which obligate the company to promptly pay principal and interest, limit the aggregate amount of secured indebtedness and sale and leaseback transactions to 10 percent of the company’s consolidated net tangible assets, and restrict the company’s ability to merge or consolidate unless certain conditions are met. The credit facilities also include a covenant on the company’s consolidated net interest expense ratio, which cannot be less than 2.20 to 1.0, as well as a cross default provision with respect to other defaulted indebtedness of at least $500 million.

The company is in compliance with all of its significant debt covenants and provides periodic certifications to its lenders. The failure to comply with its debt covenants could constitute an event of default with respect to the debt to which such provisions apply. If certain events of default were to occur, the principal and interest on the debt to which such event of default applied would become immediately due and payable.

Pre-swap annual contractual maturities of long-term debt outstanding at March 31, 2017, are as follows:

(Dollars in millions)	Total
2017 (for Q2 - Q4)	$	4,845
2018	4,995
2019	5,256
2020	5,889
2021	3,933
2022 and beyond	17,875

Total	$	42,792

Interest on Debt

(Dollars in millions)
For the three months ended March 31:	2017			2016
Cost of financing	$	158		$	138
Interest expense	155			157
Net investment derivative activity	(19		)	(10		)
Interest capitalized	0			1

Total interest paid and accrued	$	293		$	286