v3.22.4
Borrowings
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Borrowings BORROWINGS
The carrying value of our short-term and long-term borrowings are comprised of the following at December 31:
20222021
Amount
Effective Interest
Rate (1)
Amount
Effective Interest
Rate (1)
Short-term borrowings
1.231% Senior Notes due December 2023
$649 1.5 %$— — 
Other borrowings29 2.9 %40 4.5 %
Total short-term borrowings677 40 
Long-term borrowings  
1.231% Senior Notes due December 2023
— — %647 1.5 %
8.55% Debentures due June 2024 (2)
114 4.1 %118 4.1 %
2.061% Senior Notes due December 2026
597 2.4 %597 2.2 %
3.337% Senior Notes due December 2027
1,277 3.8 %1,335 3.2 %
6.875% Notes due January 2029 (2)
273 3.9 %279 4.0 %
3.138% Senior Notes due November 2029
523 3.2 %522 3.2 %
4.486% Senior Notes due May 2030
497 4.6 %497 4.6 %
5.125% Senior Notes due September 2040 (2)
1,286 4.2 %1,292 4.2 %
4.080% Senior Notes due December 2047
1,338 4.1 %1,337 4.1 %
Other long-term borrowings75 4.2 %63 2.9 %
Total long-term borrowings5,980 6,687 
Total borrowings$6,658 $6,727 
(1)Effective interest rate is based on the carrying value including issuance costs, interest rate swaps, and step-up adjustments from the Baker Hughes Incorporated ("BHI") acquisition recorded for certain Senior Notes and Debentures.
(2)Represents long-term fixed rate debt obligations assumed in connection with the acquisition of BHI.
The carrying value of our short-term and long-term borrowings include issuance costs, changes in fair value of the debt instrument hedged by interest rate swaps, and step-up adjustments for the BHI acquisition. At December 31, 2022 and 2021, these adjustments resulted in a net increase to the carrying value of our borrowings totaling $91 million and $162 million, respectively. The estimated fair value of total borrowings at December 31, 2022 and 2021 was $5,863 million and $7,328 million, respectively. For a majority of our borrowings the fair value was determined using quoted period-end market prices. Where market prices are not available, we estimate fair values based on valuation methodologies using current market interest rate data adjusted for our non-performance risk.
Maturities of debt for each of the five years in the period ending December 31, 2027, and in the aggregate thereafter, are listed in the table below:
20232024202520262027Thereafter
Total debt
$677 $150 $14 $611 $1,280 $3,926 
BHH LLC has a $3 billion committed unsecured revolving credit facility ("the Credit Agreement") with commercial banks maturing in December 2024. In addition, we have a commercial paper program with authorization up to $3 billion under which we may issue from time to time commercial paper with maturities of no more than 397 days. The Credit Agreement contains certain customary representations and warranties, certain customary affirmative covenants and certain customary negative covenants. Upon the occurrence of certain events of default, BHH LLC's obligations under the Credit Agreement may be accelerated. Such events of default include payment defaults to lenders under the Credit Agreement and other customary defaults. No such events of default have occurred. At December 31, 2022 and 2021, there were no borrowings under either the Credit Agreement or the commercial paper program.
Baker Hughes Co-Obligor, Inc. is a co-obligor, jointly and severally with BHH LLC on our long-term debt securities. This co-obligor is a 100%-owned finance subsidiary of BHH LLC that was incorporated for the sole purpose of serving as a corporate co-obligor of long-term debt securities and has no assets or operations other than those related to its sole purpose. As of December 31, 2022, Baker Hughes Co-Obligor, Inc. is a co-obligor of our long-term debt securities totaling $6,554 million.
Certain Senior Notes contain covenants that restrict BHH LLC's ability to take certain actions, including, but not limited to, the creation of certain liens securing debt, the entry into certain sale-leaseback transactions and engaging in certain merger, consolidation and asset sale transactions in excess of specified limits. At December 31, 2022, we were in compliance with all debt covenants.