Borrowings (Tables)

9 Months Ended

Sep. 30, 2020

Borrowings

Short-Term Debt

	At September 30,		At December 31,
(Dollars in millions)	2020		2019
Commercial paper	$	25	$	304
Short-term loans		584		971
Long-term debt—current maturities		9,677		7,522
Total	$	10,285	$	8,797

Long-Term Debt

		Balance		Balance
(Dollars in millions)	Maturities	9/30/2020		12/31/2019
U.S. dollar debt (weighted-average interest rate at September 30, 2020):*
2.1%	2020	$	1,500	$	4,326
1.4%	2021		5,516		8,498
2.6%	2022		6,245		6,289
3.3%	2023		2,406		2,388
3.3%	2024		5,035		5,045
6.7%	2025		635		636
3.3%	2026		4,373		4,350
3.0%	2027		2,219		969
6.5%	2028		313		313
3.5%	2029		3,250		3,250
2.0%	2030		1,350		—
5.9%	2032		600		600
8.0%	2038		83		83
4.5%	2039		2,745		2,745
2.9%	2040		650		—
4.0%	2042		1,107		1,107
7.0%	2045		27		27
4.7%	2046		650		650
4.3%	2049		3,000		3,000
3.0%	2050		750		—
7.1%	2096		316		316
		$	42,771	$	44,594
Other currencies (weighted-average interest rate at September 30, 2020, in parentheses):*
Euro (1.1%)	2020–2040	$	19,354	$	14,306
Pound sterling (2.7%)	2020–2022		1,360		1,390
Japanese yen (0.3%)	2022–2026		1,379		1,339
Other (3.1%)	2021–2024		242		375
		$	65,106	$	62,003
Finance lease obligations (1.9%)	2021–2030		291		204
		$	65,397	$	62,207
Less: net unamortized discount			884		881
Less: net unamortized debt issuance costs			161		142
Add: fair value adjustment**			453		440
		$	64,805	$	61,624
Less: current maturities			9,677		7,522
Total		$	55,129	$	54,102

*   Includes notes, debentures, bank loans and secured borrowings.

** The portion of the company’s fixed-rate debt obligations that was hedged was reflected in the Consolidated Balance Sheet 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.

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

Pre-swap annual contractual obligations of long-term debt outstanding at September 30, 2020, are as follows:

(Dollars in millions)	Total
Remainder of 2020	$	4,343
2021		7,003
2022		7,276
2023		5,564
2024		6,454
Thereafter		34,757
Total	$	65,397

Interest on Debt

(Dollars in millions)
For the nine months ended September 30:	2020		2019
Cost of financing	$	346	$	483
Interest expense		971		990
Interest capitalized		6		5
Total interest paid and accrued	$	1,323	$	1,478