Note 10 – Debt

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


					Weighted average
					contractual interest rates
	December 31,		March 31,			December 31,		March 31,
(Dollars in millions)		2011		2011		2011		2011
Commercial paper	$	21,190	$	19,943		0.35	%	0.28	%
Unsecured notes and loans payable		44,486		45,304		2.90	%	3.33	%
Secured notes and loans payable		8,879		10,626		0.75	%	0.74	%
Carrying value adjustment		1,200		1,409
Total debt	$	75,755	$	77,282		1.92	%	2.13	%

The commercial paper balance includes unamortized premium or discount. Included in unsecured notes and loans payable are notes and loans denominated in various foreign currencies, unamortized premium or discount and the effects of foreign currency transaction gains and losses on non-hedged or de-designated foreign currency denominated notes and loans payable. At December 31, 2011 and March 31, 2011, the carrying value of these foreign currency notes payable was $22.0 billion and $27.0 billion, respectively. Concurrent with the issuance of these foreign currency unsecured notes, we entered into foreign 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 December 31, 2011 included $17.4 billion of unsecured floating rate debt with contractual interest rates ranging from 0 percent to 6.0 percent and $28.3 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 December 31, 2011 and March 31, 2011. Secured notes and loans are issued by on-balance sheet securitization trusts, as further discussed in Note 11 – 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.

As of December 31, 2011, our commercial paper had an average remaining maturity of 72 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.