IBM 2008 Annual Report Download - page 91

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
Notes to Consolidated Financial Statements
INTERNATIONAL BUSINESS MACHINES CORPORATION and Subsidiary Companies
- 
Pre-Swap Borrowing
($  )
At December : Maturities 2008 2007
U.S. Dollar Notes and Debentures (average interest rate at December 31, 2008):
3.55% 2009 – 2011 $10,496*$12,295
5.67% 2012 – 2013 5,053*3,545
6.25% 2014 – 2018 4,761*3,026
8.375% 2019 750 750
7.00% 2025 600 600
6.22% 2027 469 469
6.50% 2028 313 313
5.875% 2032 600 600
8.00% 2038 1,000 —
7.00% 2045 150 150
7.125% 2096 850 850
25,041 22,598
Other currencies (average interest rate at December 31, 2008, in parentheses):
Euros (4.4%) 2010 – 2014 3,330 2,466
Japanese yen (1.8%) 2010 – 2014 1,457 767
Swiss francs (3.4%) 2011 – 2014 470 442
Other (10.2%) 2009 – 2013 203 89
30,502 26,362
Less: Net unamortized discount 81 65
Add: SFAS No. 133 fair value adjustment** 1,210 432
31,631 26,729
Less: Current maturities 8,942 3,690
TOTAL $22,689 $23,039
* $8.1 billion in debt securities issued by IBM International Group Capital LLC, which is an indirect, 100 percent owned finance subsidiary of the company, is included in 2009-2011
($6.5 billion), 2012-2013 ($1.5 billion) and 2014-2018 ($0.1 billion). Debt securities issued by IBM International Group Capital LLC are fully and unconditionally guaranteed by the company.
** In accordance with the requirements of SFAS No. 133, the portion of the company’s fixed-rate debt obligations that is hedged is reflected in the Consolidated Statement of Financial
Position as an amount equal to the sum of the debt’s carrying value plus an SFAS No. 133 fair value adjustment representing changes in the fair value of the hedged debt obligations
attributable to movements in benchmark interest rates.
-  (- ,   )
($  )
2008 2007
At December : Amount Average Rate Amount Average Rate
Fixed-rate debt* $16,608 6.16% $10,922 5.48%
Floating-rate debt** 15,023 3.35% 15,807 4.76%
TOTAL $31,631 $26,729
* Includes $1,700 million in 2008 and $2,600 million in 2007 of notional interest rate swaps that effectively convert floating-rate long-term debt into fixed-rate debt. (See note L, “Derivatives
and Hedging Transactions,” on pages 90 to 94).
** Includes $7,435 million in 2008 and $9,606 million in 2007 of notional interest rate swaps that effectively convert the fixed-rate long-term debt into floating-rate debt.