Borrowings (Tables)

9 Months Ended

Sep. 30, 2021

Borrowings

Short-Term Debt

	At September 30,		At December 31,
(Dollars in millions)	2021		2020
Commercial paper	$	900	$	—
Short-term loans		43		130
Long-term debt — current maturities		6,632		7,053
Total	$	7,575	$	7,183

Long-Term Debt

		Balance		Balance
(Dollars in millions)	Maturities	9/30/2021		12/31/2020
U.S. dollar debt (weighted-average interest rate at September 30, 2021):*
0.7%	2021	$	1,107	$	5,499
2.6%	2022		5,682		6,233
3.4%	2023		1,589		2,395
3.3%	2024		5,018		5,029
6.9%	2025		617		631
3.3%	2026		4,498		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
		$	35,575	$	41,218
Other currencies (weighted-average interest rate at September 30, 2021, in parentheses):*
Euro (1.1%)	2023–2040	$	16,222	$	18,355
Pound sterling (2.6%)	2022		405		411
Japanese yen (0.3%)	2022–2026		1,304		1,409
Other (7.8%)	2021–2025		354		324
		$	53,859	$	61,718
Finance lease obligations (1.4%)	2021–2030		357		296
		$	54,216	$	62,013
Less: net unamortized discount			849		875
Less: net unamortized debt issuance costs			136		156
Add: fair value adjustment**			327		426
		$	53,558	$	61,408
Less: current maturities			6,632		7,053
Total		$	46,926	$	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 September 30, 2021, were as follows:

(Dollars in millions)	Total
Remainder of 2021	$	1,189
2022		6,889
2023		4,973
2024		6,497
2025		4,142
Thereafter		30,526
Total	$	54,216

Interest on Debt

(Dollars in millions)
For the nine months ended September 30:	2021		2020
Cost of financing	$	312	$	346
Interest expense		852		971
Interest capitalized		3		6
Total interest paid and accrued	$	1,167	$	1,323