Borrowings (Tables)

6 Months Ended

Jun. 30, 2020


	At June 30,		At December 31,
(Dollars in millions)	2020		2019
Commercial paper	$	115	$	304
Short-term loans		730		971
Long-term debt—current maturities		8,444		7,522
Total	$	9,289	$	8,797

Long-Term Debt

Pre-Swap Borrowing
		Balance		Balance
(Dollars in millions)	Maturities	6/30/2020		12/31/2019
U.S. dollar debt (weighted-average interest rate at June 30, 2020):*
2.2%	2020	$	1,513	$	4,326
1.6%	2021		5,536		8,498
2.6%	2022		6,246		6,289
3.3%	2023		2,403		2,388
3.3%	2024		5,041		5,045
6.6%	2025		654		636
3.3%	2026		4,350		4,350
3.0%	2027		2,219		969
6.5%	2028		313		313
3.5%	2029		3,250		3,250
2.0%	2030		1,350		—
5.9%	2032		600		600
8.0%	2038		83		83
4.5%	2039		2,745		2,745
2.9%	2040		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		—
7.1%	2096		316		316
		$	42,804	$	44,594
Other currencies (weighted-average interest rate at June 30, 2020, in parentheses):*
Euro (1.1%)	2020–2040	$	18,545	$	14,306
Pound sterling (2.7%)	2020–2022		1,301		1,390
Japanese yen (0.3%)	2022–2026		1,349		1,339
Other (3.1%)	2020–2022		203		375
		$	64,203	$	62,003
Finance lease obligations (1.8%)	2021–2030		268		204
		$	64,470	$	62,207
Less: net unamortized discount			892		881
Less: net unamortized debt issuance costs			165		142
Add: fair value adjustment**			480		440
		$	63,893	$	61,624
Less: current maturities			8,444		7,522
Total		$	55,449	$	54,102

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

The portion of the company’s fixed-rate debt obligations that was hedged was 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, 2020, are as follows:


(Dollars in millions)	Total
Remainder of 2020	$	4,366
2021		6,937
2022		7,194
2023		5,417
2024		6,324
Thereafter		34,232
Total	$	64,470

Interest on Debt


(Dollars in millions)
For the six months ended June 30:	2020		2019
Cost of financing	$	237	$	343
Interest expense		649		558
Interest capitalized		5		3
Total interest paid and accrued	$	891	$	904

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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+ Details