IBM 2000 Annual Report Download - page 77

JBORROWINGS
Short-term debt
(dollars in millions)
AT DECEMBER 31: 2000 1999
Commercial paper $«««3,521 $«««5,074
Short-term loans 3,975 3,351
Long-term debt: Current maturities 2,709 5,805
Total $«10,205 $«14,230
The weighted-average interest rates for commercial paper at
December 31, 2000 and 1999, were 6.7 percent and 5.9 per-
cent, respectively. The weighted-average interest rates for
short-term loans at December 31, 2000 and 1999, were
2.9 percent and 4.0 percent, respectively.
Long-term debt
(dollars in millions)
AT DECEMBER 31: Maturities 2000 1999*
U.S. Dollars:
Debentures:
6.22% 2027 $««««««500 $««««««500
6.5% 2028 700 700
7.0% 2025 600 600
7.0% 2045 150 150
7.125% 2096 850 850
7.5% 2013 550 550
8.375% 2019 750 750
Notes: 6.3% average 2001-2014 2,933 4,191
Medium-term note
program: 5.8% average 2001-2014 4,305 6,230
Other: 6.8% average 2001-2012 1,092 1,618
12,430 16,139
Other currencies
(average interest rate
at December 31, 2000,
in parentheses):
Euros (5.3%) 2002-2005 3,042 —
Japanese yen (1.4%) 2001-2014 4,845 3,141
Canadian dollars (5.7%) 2002-2005 302 316
Swiss francs (3.5%) 2001-2003 231 78
Other (8.1%) 2001-2014 275 295
21,125 19,969
Less: Net unamortized
discount 45 40
21,080 19,929
Less: Current maturities 2,709 5,805
Total $«18,371 $«14,124
*Reclassified to conform with 2000 presentation.
Annual maturities in millions of dollars on long-term debt
outstanding at December 31, 2000, are as follows: 2001,
$2,709; 2002, $5,405; 2003, $3,364; 2004, $763; 2005,
$1,873; 2006 and beyond, $7,011.
Interest on Debt
Interest paid and accrued on borrowings of the company and
its subsidiaries was $1,449 million in 2000, $1,475 million in
1999 and $1,585 million in 1998. Of these amounts, the
company capitalized $20 million in 2000, $23 million in
1999 and $28 million in 1998. Of the remainder, the company
charged $717 million in 2000, $727 million in 1999 and
$713 million in 1998 to Interest expense on the Consolidated
Statement of Earnings and charged $712 million in 2000,
$725 million in 1999 and $844 million in 1998 to Cost of
Global Financing in the Consolidated Statement of
Earnings. Refer to the table and related discussion on page
92 in note X, “Segment Information,” for the total interest
expense of the Global Financing segment.
The decrease in total interest in 2000 versus 1999 was
due primarily to lower average interest rates and a decline in
average debt outstanding during 2000. The decrease in total
interest in 1999 versus 1998 was due primarily to lower
average interest rates, partially offset by an increase in
average debt outstanding during 1999. The average effective
interest rate for total debt was 5.0 percent, 5.1 percent and
5.7 percent in 2000, 1999 and 1998, respectively. These rates
include the results of currency and interest rate swaps
applied to the debt previously described.
Lines of Credit
The company maintains a $10.0 billion global credit facility.
The company’s other committed and uncommitted lines of
credit were $4.7 billion and $5.5 billion at December 31,
2000 and 1999, respectively. Interest rates and other terms of
borrowing under these lines of credit vary from country to
country depending on local market conditions at the time of
the borrowing.
(dollars in billions)
AT DECEMBER 31: 2000 1999
Unused lines
From the global credit facility $«««9.1 $«««8.6
From other committed and
uncommitted lines 4.1 4.5
Total unused lines of credit $«13.2 $«13.1
notes to consolidated financial statements
international business machines corporation
and Subsidiary Companies
page no.
seventy-five