IBM 2011 Annual Report Download - page 109

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Notes to Consolidated Financial Statements
International Business Machines Corporation and Subsidiary Companies 107
Long-Term Debt
Pre-Swap Borrowing
($ in millions)
At December 31: Maturities 2011 2010
U.S. dollar notes and debentures (average interest rate at December 31, 2011):
3.72% 2012 – 2013 $ 8,615*$ 6,326
1.02% 2014 – 2015 2,414* 5,019
4.94% 2016 –2020 8,600 6,359
2.90% 2021 500 —
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 1,545
7.00% 2045 27 27
7.125% 2096 322 322
24,192 21 ,766
Other currencies (average interest rate at December 31, 2011, in parentheses):
Euros (6.6%) 2012 – 2016 1,037 1 ,897
Japanese yen (0.8%) 2013 – 2014 1,123 1,162
Swiss francs (3.8%) 2012 – 2020 173 540
Other (5.1%) 2012 – 2014 177 240
26,702 25,606
Less: net unamortized discount 533 531
Add: fair value adjustment** 994 788
27,161 25,863
Less: current maturities 4,306 4,017
To t a l $22,857 $21,846
*
$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 2012-2015.
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)
2011 2010
For the year ended December 31: Amount Average Rate Amount Average Rate
Fixed-rate debt $18,547 4.38% $14,446 5.29%
Floating-rate debt* 8,614 1.54% 11,417 1.23%
To t a l $27,161 $25,863
* Includes $5,898 million in 2011 and $7,078 million in 2010 of notional interest rate swaps that effectively convert the fixed-rate long-term debt into floating-rate debt. (See note D,
“Financial Instruments,” on pages 96 to 100.)