IBM 2010 Annual Report Download - page 97

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Notes to Consolidated Financial Statements
International Business Machines Corporation and Subsidiary Companies 95
Long-Term Debt
Pre-Swap Borrowing
($ in millions)
At December 31: Maturities 2010 2009
U.S. dollar notes and debentures (average interest rate at December 31, 2010):
2.88% 2011 – 2012 $ 6,326* $ 5,456
3.76% 2013 – 2014 5,019* 3,332
5.92% 2015 –2019 6,350 5,396
5.00% 2020 9 —
7.00% 2025 600 600
6.22% 2027 469 469
6.50% 2028 313 313
5.875% 2032 600 600
8.00% 2038 187 187
5.60% 2039 1,545 1,518
7.00% 2045 27 27
7.125% 2096 322 350
21,766 18,247
Other currencies (average interest rate at December 31, 2010, in parentheses):
Euros (5.4%) 2011 – 2016 1,897 3,427
Japanese yen (0.9%) 2013 – 2014 1,162 1,565
Swiss francs (3.4%) 2011 – 2020 540 484
Other (4.5%) 2011
–
2013 240 285
25,606 24,008
Less: net unamortized discount 531 527
Add: fair value adjustment** 788 673
25,863 24,154
Less: current maturities 4,017 2,222
Tot a l $21,846 $21,932
* $1.6 billion in debt securities issued by IBM International Group Capital LLC, which is an indirect, 100 percent owned finance subsidiary of the company, is included in 2011-2014.
Debt securities issued by IBM International Group Capital LLC are fully and unconditionally guaranteed by the company.
** The portion of the company’s fixed-rate debt obligations that is hedged is reflected in the Consolidated Statement of Financial Position as an amount equal to the sum of the
debt’s carrying value plus a fair value adjustment representing changes in the fair value of the hedged debt obligations attributable to movements in benchmark interest rates.
Post-Swap Borrowing (Long-Term Debt, Including Current Portion)
($ in millions)
2010 2009
For the year ended December 31: Amount Average Rate Amount Average Rate
Fixed-rate debt $14,446 5.29% $11,939 6.13%
Floating-rate debt* 11,417 1.23% 12,215 1.22%
Tot a l $25,863 $24,154
* Includes $7,078 million in 2010 and $9,054 million in 2009 of notional interest rate swaps that effectively convert the fixed-rate long-term debt into floating-rate debt. (See note L,
“Derivative Financial Instruments,” on pages 96 through 101.)