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Borrowings
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Borrowings BORROWINGS
Short-term and long-term borrowings are comprised of the following at December 31:
20212020
Amount
Effective Interest
Rate (1)
Amount
Effective Interest
Rate (1)
Short-term borrowings
Commercial paper$— n/a$801 0.5 %
Short-term borrowings from GE— n/a45 n/a
Other borrowings40 4.5 %43 4.2 %
Total short-term borrowings40 889 
Long-term borrowings  
2.773% Senior Notes due December 2022
— — %1,247 2.9 %
1.231% Senior Notes due December 2023
647 1.5 %— — 
8.55% Debentures due June 2024 (2)
118 4.1 %123 4.1 %
2.061% Senior Notes due December 2026
597 2.2 %— — 
3.337% Senior Notes due December 2027
1,335 3.2 %1,344 3.4 %
6.875% Notes due January 2029 (2)
279 4.0 %284 3.9 %
3.138% Senior Notes due November 2029
522 3.2 %522 3.2 %
4.486% Senior Notes due May 2030
497 4.6 %497 4.6 %
5.125% Senior Notes due September 2040 (2)
1,292 4.2 %1,297 4.2 %
4.080% Senior Notes due December 2047
1,337 4.1 %1,337 4.1 %
Other long-term borrowings63 2.9 %93 3.0 %
Total long-term borrowings6,687 6,744 
Total borrowings$6,727 $7,633 
(1)Effective interest rate is based on the carrying value including issuance costs and step-up adjustments, as applicable, recorded for certain Senior Notes and Debentures assumed in connection with the acquisition of BHI.
(2)Represents long-term fixed rate debt obligations assumed in connection with the acquisition of BHI.
In December 2021, BHH LLC issued $1,250 million aggregate principal amount of Senior Notes, consisting of $650 million aggregate principal amount of 1.231% Senior Notes due December 2023 and $600 million aggregate principal amount of 2.061% Senior Notes due December 2026 (collectively, "the Notes"). BHH LLC will pay interest on each series of Notes semi-annually on June 15 and December 15 of each year, beginning on June 15, 2022. These Notes are presented net of issuance costs in our consolidated statements of financial position.
On December 9, 2021, BHH LLC issued a notice to redeem the entire principal amount outstanding of its 2.773% Senior Notes due December 2022 ("the 2022 Notes") using the proceeds from the offering of the Notes. As a result, as of December 31, 2021, we incurred a $28 million charge related to the early redemption, which was recorded within "Interest expense, net" in our consolidated statement of income (loss). On January 10, 2022, the 2022 Notes were redeemed using funds irrevocably deposited in trust with the trustee on December 16, 2021.
In May 2020, BHH LLC issued $500 million aggregate principal amount of 4.486% Senior Notes due May 2030. BHH LLC pays interest on these Senior Notes semi-annually on May 15 and November 15 of each year, which began on November 15, 2020. These Senior Notes are presented net of issuance costs in our consolidated statements of financial position.
The estimated fair value of total borrowings at December 31, 2021 and 2020 was $7,328 million and $8,502 million, respectively. For a majority of our borrowings the fair value was determined using quoted period-end market prices. Where market prices are not available, we estimate fair values based on valuation methodologies using current market interest rate data adjusted for our non-performance risk.
Maturities of debt for each of the five years in the period ending December 31, 2026, and in the aggregate thereafter, are listed in the table below:
20222023202420252026Thereafter
Total debt
$40 $649 $151 $14 $597 $5,276 
BHH LLC has a $3 billion committed unsecured revolving credit facility ("the Credit Agreement") with commercial banks maturing in December 2024. The Credit Agreement contains certain customary representations and warranties, certain customary affirmative covenants and certain customary negative covenants. Upon the occurrence of certain events of default, BHH LLC's obligations under the Credit Agreement may be accelerated. Such events of default include payment defaults to lenders under the Credit Agreement and other customary defaults. No such events of default have occurred. During 2021 and 2020, there were no borrowings under the Credit Agreement.
We have a commercial paper program under which we may issue from time to time commercial paper with maturities of no more than 397 days. As a result of the repayment of our commercial paper that matured on April 30, 2021, our authorized commercial paper program was reduced from $3.8 billion to $3 billion.
Baker Hughes Co-Obligor, Inc. is a co-obligor, jointly and severally with BHH LLC on our long-term debt securities. This co-obligor is a 100%-owned finance subsidiary of BHH LLC that was incorporated for the sole purpose of serving as a corporate co-obligor of long-term debt securities and has no assets or operations other than those related to its sole purpose. As of December 31, 2021, Baker Hughes Co-Obligor, Inc. is a co-obligor of our long-term debt securities totaling $6,624 million.
Certain Senior Notes contain covenants that restrict BHH LLC's ability to take certain actions, including, but not limited to, the creation of certain liens securing debt, the entry into certain sale-leaseback transactions and engaging in certain merger, consolidation and asset sale transactions in excess of specified limits. At December 31, 2021, we were in compliance with all debt covenants.
See "Note 16. Related Party Transactions" for additional information on the short-term borrowings with GE.