IBM 2012 Annual Report Download - page 93

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92 Notes to Consolidated Financial Statements
International Business Machines Corporation and Subsidiary Companies
92
Note D.
Financial Instruments
Fair Value Measurements
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables present the company’s financial assets and financial liabilities that are measured at fair value on a recurring basis at
December 31, 2012 and 2011.
($ in millions)
At December 31, 2012: Level 1 Level 2 Level 3 To t a l
Assets
Cash equivalents (1)
Time deposits and certificates of deposit $ — $3,694 $— $3,694
Commercial paper — 2,098 — 2,098
Money market funds 1,923 — — 1,923
Other securities — 30 — 30
To ta l 1,923 5,823 — 7,746(6)
Debt securities—current (2) — 717 — 717(6)
Debt securities—noncurrent (3) 2 8 — 10
Available-for-sale equity investments (3) 34 — — 34
Derivative assets (4)
Interest rate contracts — 604 — 604
Foreign exchange contracts — 305 — 305
Equity contracts — 9 — 9
To ta l — 918 — 918 (7)
Total assets $1,959 $7,466 $— $9,424 (7)
Liabilities
Derivative liabilities (5)
Foreign exchange contracts $ — $ 496 $— $ 496
Equity contracts — 7 — 7
Total liabilities $ — $ 503 $— $ 503 (7)
(1) Included within cash and cash equivalents in the Consolidated Statement of Financial Position.
(2) Commercial paper and certificates of deposit reported as marketable securities in the Consolidated Statement of Financial Position.
(3) Included within investments and sundry assets in the Consolidated Statement of Financial Position.
(4)
The gross balances of derivative assets contained within prepaid expenses and other current assets, and investments in sundry assets in the Consolidated Statement of Financial
Position at December 31, 2012 are $333 million and $585 million, respectively.
(5)
The gross balances of derivative liabilities contained within other accrued expenses and liabilities, and other liabilities in the Consolidated Statement of Financial Position
at December 31, 2012 are $426 million and $78 million, respectively.
(6) Available-for-sale securities with carrying values that approximate fair value.
(7)
If derivative exposures covered by a qualifying master netting agreement had been netted in the Consolidated Statement of Financial Position, the total derivative asset and liability
positions would have been reduced by $262 million each.