IBM 2009 Annual Report Download - page 93

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Notes to Consolidated Financial Statements
INTERNATIONAL BUSINESS MACHINES CORPORATION AND SUBSIDIARY COMPANIES
Long-Term Debt
Pre-Swap Borrowing
($ in millions)
At December 31: Maturities 2009 2008
U.S. Dollar Notes and Debentures (average interest rate at December 31, 2009):
3.33% 2010
–
2012 $ 5,456* $10,496
4.99% 2013
–
2014 3,332 5,053
6.63% 2015
–
2019 5,396 5,511
7.00% 2025 600 600
6.22% 2027 469 469
6.50% 2028 313 313
5.875% 2032 600 600
8.00% 2038 187 1,000
5.60% 2039 1,518 —
7.00% 2045 27 150
7.125% 2096 350 850
18,247 25,041
Other currencies (average interest rate at December 31, 2009, in parentheses):
Euros (4.4%) 2010
–
2014 3,427 3,330
Japanese yen (1.5%) 2010
–
2014 1,565 1,457
Swiss francs (3.4%) 2011
–
2015 484 470
Other (5.5%) 2010
–
2013 285 203
24,008 30,502
Less: Net unamortized discount 527 81
Add: Fair value adjustment** 673 1,210
24,154 31,631
Less: Current maturities 2,222 8,942
Total $21,932 $22,689
* $1.6 billion in debt securities issued by IBM International Group Capital LLC, which is an indirect, 100 percent owned finance subsidiary of the company, is included in
2010–2012. Debt securities issued by IBM International Group Capital LLC are fully and unconditionally guaranteed by the company.
** The portion of the fixed-rate debt obligations that is hedged is reflected in the Consolidated Statement of Financial Position as an amount equal to the sum of the debt’s
carrying value plus a fair value adjustment representing changes in the fair value of the hedged debt obligations attributable to movements in benchmark interest rates.
Post-Swap Borrowing (Long-term Debt, Including Current Portion)
($ in millions)
2009 2008
At December 31: Amount Average Rate Amount Average Rate
Fixed-rate debt* $11,939 6.13% $16,608 6.16%
Floating-rate debt** 12,215 1.22% 15,023 3.35%
Total $24,154 $31,631
* Includes $0 in 2009 and $1,700 million in 2008 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 92 through 96).
** Includes $9,054 million in 2009 and $7,435 million in 2008 of notional interest rate swaps that effectively convert the fixed-rate long-term debt into floating-rate debt.
(See note L, “Derivatives and Hedging Transactions,” on pages 92 through 96).
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