Note 9 – Debt

Debt and the related weighted average contractual interest rates are summarized as follows:


					Weighted average
					contractual interest rates
	March 31,				March 31,
(Dollars in millions)		2012		2011	2012		2011
Commercial paper	$	21,247	$	19,943	0.38	%	0.28	%
Unsecured notes and loans payable		41,415		45,304	2.63	%	3.33	%
Secured notes and loans payable		9,789		10,626	0.67	%	0.74	%
Carrying value adjustment		783		1,409
Total debt	$	73,234	$	77,282	1.70	%	2.13	%

The commercial paper balance includes unamortized premiums and discounts. Included in unsecured notes and loans payable are notes and loans denominated in various foreign currencies, unamortized premiums and discounts and the effects of foreign currency transaction gains and losses on non-hedged or de-designated foreign currency denominated notes and loans payable. At March 31, 2012 and March 31, 2011, the carrying values of these foreign currency denominated notes payable were $15.8 billion and $27.0 billion, respectively. Concurrent with the issuance of these foreign currency unsecured notes, we entered into currency swaps in the same notional amount to convert non-U.S. currency payments to U.S. dollar denominated payments.

Additionally, the carrying value of our unsecured notes and loans payable at March 31, 2012 included $16.7 billion of unsecured floating rate debt with contractual interest rates ranging from 0 percent to 6.0 percent and $25.5 billion of unsecured fixed rate debt with contractual interest rates ranging from 0.5 percent to 9.4 percent. The carrying value of our unsecured notes and loans payable at March 31, 2011 included $14.1 billion of unsecured floating rate debt with contractual interest rates ranging from 0 percent to 6.0 percent and $32.6 billion of unsecured fixed rate debt with contractual interest rates ranging from 0.3 percent to 15.3 percent. Upon issuance of fixed rate notes, we generally elect to enter into interest rate swaps to convert fixed rate payments on notes to floating rate payments.

Our secured notes and loans payable are denominated in U.S. dollars and consist of both fixed and variable rate debt with interest rates ranging from 0.5 percent to 1.9 percent at both March 31, 2012 and March 31, 2011. Secured notes and loans are issued by on-balance sheet securitization trusts, as further discussed in Note 10 – Variable Interest Entities. These notes are repayable only from collections on the underlying pledged receivables and related credit enhancements.

The carrying value adjustment on debt represents the effects of fair value adjustments to debt in hedging relationships, accrued redemption premiums, and the unamortized fair value adjustments on the hedged item for terminated fair value hedge accounting relationships. The carrying value adjustment on debt decreased by $626 million at March 31, 2012 compared to March 31, 2011 primarily as a result of a stronger U.S. dollar relative to certain other currencies in which some of our debt is denominated.

As of March 31, 2012, our commercial paper had a weighted average remaining maturity of 82 days, while our notes and loans payable mature on various dates through fiscal 2047. Weighted average contractual interest rates are calculated based on original notional or par value before consideration of premium or discount.

Note 9 – Debt (Continued)

Scheduled maturities of our debt portfolio are summarized below. Actual repayment of secured debt will vary based on the repayment activity on the related pledged assets.

	Future
Years ending March 31,	debt maturities
(Dollars in millions)
2013		$	39,022
2014			9,370
2015			6,191
2016			7,576
2017			4,657
Thereafter			6,418
Total debt		$	73,234

Interest payments on commercial paper and debt, including net settlements on interest rate swaps, were
$1.6 billion, $1.7 billion, and $2.1 billion in fiscal 2012, 2011 and 2010, respectively.