Borrowings (Tables)

6 Months Ended

Jun. 30, 2021

Borrowings

Short-Term Debt

	At June 30,		At December 31,
(Dollars in millions)	2021		2020
Short-term loans	$	36	$	130
Long-term debt–current maturities		6,406		7,053
Total	$	6,442	$	7,183

Long-Term Debt

		Balance		Balance
(Dollars in millions)	Maturities	6/30/2021		12/31/2020
U.S. dollar debt (weighted-average interest rate at June 30, 2021):*
0.8%	2021	$	1,117	$	5,499
2.6%	2022		5,696		6,233
3.4%	2023		1,600		2,395
3.3%	2024		5,021		5,029
6.8%	2025		621		631
3.3%	2026		4,505		4,370
3.0%	2027		2,222		2,219
6.5%	2028		313		313
3.5%	2029		3,250		3,250
2.0%	2030		1,350		1,350
5.9%	2032		600		600
8.0%	2038		83		83
4.5%	2039		2,745		2,745
2.9%	2040		650		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		750
7.1%	2096		316		316
		$	35,624	$	41,218
Other currencies (weighted-average interest rate at June 30, 2021, in parentheses):*
Euro (1.1%)	2021–2040	$	17,797	$	18,355
Pound sterling (2.6%)	2022		414		411
Japanese yen (0.3%)	2022–2026		1,311		1,409
Other (5.9%)	2021–2025		306		324
		$	55,452	$	61,718
Finance lease obligations (1.4%)	2021–2030		349		296
		$	55,800	$	62,013
Less: net unamortized discount			860		875
Less: net unamortized debt issuance costs			142		156
Add: fair value adjustment**			342		426
		$	55,140	$	61,408
Less: current maturities			6,406		7,053
Total		$	48,735	$	54,355

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

** The portion of the company’s fixed-rate debt obligations that is hedged is 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 June 30, 2021, were as follows:

(Dollars in millions)
At June 30, 2021:	Total
Remainder of 2021	$	2,470
2022		6,862
2023		5,016
2024		6,498
2025		4,219
Thereafter		30,734
Total	$	55,800

Interest on Debt

(Dollars in millions)
For the six months ended June 30:	2021		2020
Cost of financing	$	210	$	237
Interest expense		562		649
Interest capitalized		3		5
Total interest paid and accrued	$	775	$	891