Debt

The following table presents the components of notes payable at April 1, 2017 and December 31, 2016:



	April 1, 2017				December 31, 2016
(millions)	Principal amount		Effective interest rate (a)		Principal amount		Effective interest rate (a)
U.S. commercial paper	$	242	0.85	%	$	80	0.61	%
Europe commercial paper	315		(0.17	)%	306		(0.18	)%
Bank borrowings	72				52
Total	$	629			$	438

(a) Negative effective interest rates on certain borrowings in Europe are the result of efforts by the European Central Bank to stimulate the economy in the eurozone.

The Company has entered into interest rate swaps with notional amounts totaling $2.2 billion, which effectively converts a portion of the associated U.S. Dollar Notes from fixed rate to floating rate obligations. These derivative instruments are designated as fair value hedges. The effective interest rates on debt obligations resulting from the Company’s interest rate swaps as of April 1, 2017 were as follows: (a) five-year 1.75% U.S. Dollar Notes due 2017 – 1.94%; (b) seven-year 3.25% U.S. Dollar Notes due 2018 – 2.56%; (c) ten-year 4.15% U.S. Dollar Notes due 2019 – 3.53%; (d) ten-year 4.00% U.S. Dollar Notes due 2020 – 2.91%; (e) ten-year 3.125% U.S. Dollar Notes due 2022 – 2.32%; (f) ten-year 2.75% U.S. Dollar Notes due 2023 – 2.47%; (g) seven-year 2.65% U.S. Dollar Notes due 2023 – 2.23%; (h) eight-year 1.00% Euro Notes due 2024 – 0.74% and (i) ten-year 3.25% U.S. Notes due 2026 – 3.52%.