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Financing arrangements | 6 Months Ended
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Jun. 30, 2020
Debt Disclosure [Abstract] |
Financing arrangements | Financing arrangements Our borrowings consisted of the following (in millions):
| June 30, 2020 |  | December 31, 2019
4.50% notes due 2020 (4.50% 2020 Notes) | $ | — |  |  | $ | 300 |
2.125% notes due 2020 (2.125% 2020 Notes) | — |  |  | 750 |
Floating Rate Notes due 2020 | — |  |  | 300 |
2.20% notes due 2020 (2.20% 2020 Notes) | — |  |  | 700 |
3.45% notes due 2020 (3.45% 2020 Notes) | — |  |  | 900 |
4.10% notes due 2021 (4.10% 2021 Notes) | — |  |  | 1,000 |
1.85% notes due 2021 (1.85% 2021 Notes) | — |  |  | 750 |
3.875% notes due 2021 (3.875% 2021 Notes) | 1,450 |  |  | 1,750 |
1.25% €1,250 million notes due 2022 (1.25% 2022 euro Notes) | 1,404 |  |  | 1,402 |
2.70% notes due 2022 (2.70% 2022 Notes) | 500 |  |  | 500 |
2.65% notes due 2022 (2.65% 2022 Notes) | 1,500 |  |  | 1,500 |
3.625% notes due 2022 (3.625% 2022 Notes) | 750 |  |  | 750 |
0.41% CHF700 million bonds due 2023 (0.41% 2023 Swiss franc Bonds) | 739 |  |  | 725 |
2.25% notes due 2023 (2.25% 2023 Notes) | 750 |  |  | 750 |
3.625% notes due 2024 (3.625% 2024 Notes) | 1,400 |  |  | 1,400 |
1.90% notes due 2025 (1.90% 2025 Notes) | 500 |  |  | — |
3.125% notes due 2025 (3.125% 2025 Notes) | 1,000 |  |  | 1,000 |
2.00% €750 million notes due 2026 (2.00% 2026 euro Notes) | 843 |  |  | 841 |
2.60% notes due 2026 (2.60% 2026 Notes) | 1,250 |  |  | 1,250 |
5.50% £475 million notes due 2026 (5.50% 2026 pound sterling Notes) | 589 |  |  | 630 |
2.20% notes due 2027 (2.20% 2027 Notes) | 1,750 |  |  | — |
3.20% notes due 2027 (3.20% 2027 Notes) | 1,000 |  |  | 1,000 |
4.00% £700 million notes due 2029 (4.00% 2029 pound sterling Notes) | 868 |  |  | 928 |
2.45% notes due 2030 (2.45% 2030 Notes) | 1,250 |  |  | — |
2.30% notes due 2031 (2.30% 2031 Notes) | 1,250 |  |  | — |
6.375% notes due 2037 (6.375% 2037 Notes) | 552 |  |  | 552 |
6.90% notes due 2038 (6.90% 2038 Notes) | 291 |  |  | 291 |
6.40% notes due 2039 (6.40% 2039 Notes) | 466 |  |  | 466 |
3.15% notes due 2040 (3.15% 2040 Notes) | 2,000 |  |  | — |
5.75% notes due 2040 (5.75% 2040 Notes) | 412 |  |  | 412 |
4.95% notes due 2041 (4.95% 2041 Notes) | 600 |  |  | 600 |
5.15% notes due 2041 (5.15% 2041 Notes) | 974 |  |  | 974 |
5.65% notes due 2042 (5.65% 2042 Notes) | 487 |  |  | 487 |
5.375% notes due 2043 (5.375% 2043 Notes) | 261 |  |  | 261 |
4.40% notes due 2045 (4.40% 2045 Notes) | 2,250 |  |  | 2,250 |
4.563% notes due 2048 (4.563% 2048 Notes) | 1,415 |  |  | 1,415 |
3.375% notes due 2050 (3.375% 2050 Notes) | 2,250 |  |  | — |
4.663% notes due 2051 (4.663% 2051 Notes) | 3,541 |  |  | 3,541 |
Other notes due 2097 | 100 |  |  | 100 |
Unamortized bond discounts, premiums and issuance costs, net | (849) |  |  | (868) |
Fair value adjustments | 678 |  |  | 296 |
Other | 3 |  |  | — |
Total carrying value of debt | 34,224 |  |  | 29,903 |
Less current portion | (91) |  |  | (2,953) |
Total long-term debt | $ | 34,133 |  |  | $ | 26,950 |
There are no material differences between the effective interest rates and coupon rates of any of our borrowings, except for the 4.563% 2048 Notes and the 4.663% 2051 Notes, which have effective interest rates of 6.3% and 5.6%, respectively. Debt issuances and repayments During the six months ended June 30, 2020, we issued debt securities in the following offerings: • In February 2020, we issued $5.0 billion of debt consisting of $500 million of the 1.90% 2025 Notes, $750 million of the 2.20% 2027 Notes, $1.25 billion of the 2.45% 2030 Notes, $1.25 billion of the 3.15% 2040 Notes and $1.25 billion of the 3.375% 2050 Notes. • In May 2020, we issued $4.0 billion of debt, including $1.0 billion of the 2.20% 2027 Notes, $750 million of the 3.15% 2040 Notes and $1.0 billion of the 3.375% 2050 Notes, which represents a further issuance of, and which forms a single series with, each of the corresponding series of notes issued in February 2020, and $1.25 billion of 2.30% 2031 Notes. In the event of a change-in-control triggering event, as defined in the terms of the notes, we may be required to purchase all or a portion of these notes at a price equal to 101% of the principal amount of the notes plus accrued and unpaid interest. In addition, these notes may be redeemed at any time at our option, in whole or in part, at the principal amount of the notes being redeemed plus accrued and unpaid interest and a “make-whole” amount, which are defined by the terms of the notes. The notes may be redeemed without payment of make-whole amounts if redemption occurs during specified periods of time immediately prior to the maturity of the notes. Such time periods range from one month to six months prior to maturity. A portion of the proceeds from the issuance of the notes in February 2020 were used to redeem the 3.45% 2020 Notes, the 4.10% 2021 Notes, the 1.85% 2021 Notes and the $300 million aggregate principal amount of our 3.875% 2021 Notes. In connection with the redemption of these notes, we paid a total of $50 million in make-whole amounts plus associated accrued and unpaid interest, all of which was recognized in Interest expense, net, in the Condensed Consolidated Statements of Income. In addition to these redemptions, the 4.50% 2020 Notes, 2.125% 2020 Notes, Floating Rate 2020 Notes and 2.20% 2020 Notes matured and were repaid during the six months ended June 30, 2020. Interest rate swaps In connection with the redemption of certain of the notes discussed above, associated interest rate swap contracts with an aggregate notional value of $2.2 billion were terminated. In addition, because of historically low interest rates, during the three months ended March 31, 2020, we terminated interest rate swaps with an aggregate notional amount of $5.2 billion that hedged the 3.625% 2024 Notes, the 2.60% 2026 Notes, the 4.663% 2051 Notes and portions of the 3.625% 2022 Notes and 3.125% 2025 Notes, which resulted in the receipt of $576 million of cash and reduced counterparty credit risk. Immediately following the terminations of these contracts, we entered into new interest rate swap agreements at then-current interest rates on the same $5.2 billion principal amount of notes. See Note 12, Derivative instruments. The effective interest rates on notes for which we have entered into interest rate swap contracts and the related notional amounts of these contracts were as follows (dollar amounts in millions):
|  | June 30, 2020 |  |  | December 31, 2019 |
Notes |  | Notional amounts | Effective interest rates |  | Notional amounts | Effective interest rates
3.45% 2020 Notes |  | $ | — |  | LIBOR + 1.1% |  | $ | 900 |  | LIBOR + 1.1%
4.10% 2021 Notes |  | — |  | LIBOR + 1.7% |  | 1,000 |  | LIBOR + 1.7%
3.875% 2021 Notes |  | 1,450 |  | LIBOR + 2.0% |  | 1,750 |  | LIBOR + 2.0%
3.625% 2022 Notes |  | 750 |  | LIBOR + 2.7% |  | 750 |  | LIBOR + 1.6%
3.625% 2024 Notes |  | 1,400 |  | LIBOR + 3.2% |  | 1,400 |  | LIBOR + 1.4%
3.125% 2025 Notes |  | 1,000 |  | LIBOR + 1.8% |  | 1,000 |  | LIBOR + 0.9%
2.60% 2026 Notes |  | 1,250 |  | LIBOR + 1.8% |  | 1,250 |  | LIBOR + 0.3%
4.663% 2051 Notes(1) |  | 1,500 |  | LIBOR + 2.6% |  | 1,500 |  | LIBOR + 0.0%
Total notional amounts |  | $ | 7,350 |  |  |  | $ | 9,550 |  |
____________ (1) Excludes an additional 1.5% of interest for the difference between the coupon rate paid to note holders and the fixed rate received under the interest rate swap contracts.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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