Long-term debt



		December 31,
(Millions of dollars)	Effective Yield to Maturity ¹	2017		2016
Machinery, Energy & Transportation:
Notes—$1,250 million of 3.900% due 2021 ²	4.01%	$	1,246	$	1,245
Notes—$759 million of 5.200% due 2041 ²	5.27%	752		752
Debentures—$900 million of 7.900% due 2018 ^{2, 4}	7.98%	—		899
Debentures—$120 million of 9.375% due 2021	9.41%	120		120
Debentures—$500 million of 2.600% due 2022 ²	2.70%	498		498
Debentures—$82 million of 8.000% due 2023	8.06%	82		82
Debentures—$1,000 million of 3.400% due 2024	3.46%	997		996
Debentures—$193 million of 6.625% due 2028 ²	6.68%	192		192
Debentures—$242 million of 7.300% due 2031 ²	7.38%	241		241
Debentures—$307 million of 5.300% due 2035 ²	8.64%	216		214
Debentures—$460 million of 6.050% due 2036 ²	6.12%	456		456
Debentures—$65 million of 8.250% due 2038 ²	8.38%	64		64
Debentures—$160 million of 6.950% due 2042 ²	7.02%	159		159
Debentures—$1,722 million of 3.803% due 2042 ²	6.39%	1,236		1,218
Debentures—$500 million of 4.300% due 2044	4.39%	493		493
Debentures—$500 million of 4.750% due 2064	4.81%	494		494
Debentures—$246 million of 7.375% due 2097 ²	7.51%	242		242
Capital lease obligations³		437		68
Other		4		3
Total Machinery, Energy & Transportation		7,929		8,436
Financial Products:
Medium-term notes		15,415		13,869
Other		503		513
Total Financial Products		15,918		14,382
Total long-term debt due after one year		$	23,847	$	22,818


¹	Effective yield to maturity includes the impact of discounts, premiums and debt issuance costs.


²	Redeemable at our option in whole or in part at any time at a redemption price equal to the greater of (i) 100% of the principal amount or (ii) the discounted present value of the notes or debentures, calculated in accordance with the terms of such notes or debentures.


³	Includes $360 million related to a financing transaction in Japan entered into in 2017.


⁴	On October 10, 2017, we called for redemption of all $900 million in aggregate principal amount of our outstanding 7.90% senior notes due in December 2018, payable in cash. The redemption date occurred on November 10, 2017 and included a prepayment fee of $58 million.

All outstanding notes and debentures are unsecured and rank equally with one another.

Cat Financial's medium-term notes are offered by prospectus and are issued through agents at fixed and floating rates. Medium-term notes due after one year have a weighted average interest rate of 1.8% with remaining maturities up to 9 years at December 31, 2017. During September 2016, $381 million of medium-term notes with varying interest rates and maturity dates were exchanged for $366 million of 1.93% medium-term notes due in 2021 and $15 million in cash. In addition, a debt exchange premium of $33 million was paid.

The above table includes $148 million of medium-term notes that can be called at par.

The aggregate amounts of maturities of long-term debt during each of the years 2018 through 2022, including amounts due within one year and classified as current, are:



	December 31,
(Millions of dollars)	2018		2019		2020		2021		2022
Machinery, Energy & Transportation	$	6	$	40	$	6	$	1,388	$	504
Financial Products	6,188		5,681		4,290		1,740		2,048
	$	6,194	$	5,721	$	4,296	$	3,128	$	2,552

Interest paid on short-term and long-term borrowings for 2017, 2016 and 2015 was $1,131 million, $1,075 million and $1,047 million, respectively. Interest paid in 2017 includes a prepayment fee of $58 million related to the early retirement of our 7.90% senior notes due December 2018.

Please refer to Note 18 and Table III for fair value information on long-term debt.