Note 9 – Debt

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


					Weighted average
					contractual interest rates
	June 30,		March 31,			June 30,		March 31,
(Dollars in millions)		2012		2012		2012		2012
Commercial paper	$	24,634	$	21,247		0.34	%	0.38	%
Unsecured notes and loans payable		40,393		41,415		2.56	%	2.63	%
Secured notes and loans payable		9,484		9,789		0.69	%	0.67	%
Carrying value adjustment		721		783
Total debt	$	75,232	$	73,234		1.59	%	1.70	%

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 June 30, 2012 and March 31, 2012, the carrying values of these foreign currency denominated notes payable were $13.4 billion and $15.8 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 June 30, 2012 and March 31, 2012 included unsecured floating rate debt of $15.9 billion and $16.7 billion, respectively, with contractual interest rates ranging from 0 percent to 6.0 percent. The carrying value of our unsecured notes and loans payable at June 30, 2012 and March 31, 2012 also included unsecured fixed rate debt of $25.2 billion and $25.5 billion, respectively, with contractual interest rates ranging from 0.5 percent to 9.4 percent.

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 June 30, 2012 and March 31, 2012. 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 retail finance receivables, investments in operating leases 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 $62 million at June 30, 2012 compared to March 31, 2012 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 June 30, 2012, our commercial paper had a weighted average remaining maturity of 87 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.