IBM 2014 Annual Report Download - page 117

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Notes to Consolidated Financial Statements
International Business Machines Corporation and Subsidiary Companies
116
Long-Term Debt
Pre-Swap Borrowing
($ in millions)
At December 31: Maturities 2014 2013
U.S. dollar notes and debentures (average interest rate at December 31, 2014):
0.97% 2015 – 2016 $ 9,254 $ 6,456**
4.73% 2017 – 2018 6,835 8,465
2.19% 2019 –2021 6,555 6,206
1.88% 2022 1,000 1,000
3.38% 2023 1,500 1,500
3.63% 2024 2,000 —
7.00% 2025 600 600
6.22% 2027 469 469
6.50% 2028 313 313
5.88% 2032 600 600
8.00% 2038 83 83
5.60% 2039 745 745
4.00% 2042 1,107 1,107
7.00% 2045 27 27
7.13% 2096 316 316
31,404 27,887
Other currencies (average interest rate at December 31, 2014, in parentheses):
Euros (1.85%) 2015 – 2025 5,463 5,894
Pound sterling (2.75%) 2017 – 2020 1,176 1,254
Japanese yen (0.5%) 2017 – 2019 733 1,057
Swiss francs (3.8%) 2015 – 2020 162 181
Canadian (2.2%) 2017 432 471
Other (10.1%) 2015 – 2017 367 291
39,737 37,036
Less: net unamortized discount 853 872
Add: fair value adjustment* 792 546
39,675 36,710
Less: current maturities 4,601 3,854
Total $35,073 $32,856
* 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.
**
Includes $17 million of debt securities issued by IBM International Group Capital, LLC, an indirect 100-percent owned finance subsidiary of the company, which matured in the
first half of 2014. Debt securities issued by IBM International Group Capital, LLC are fully and unconditionally guaranteed by the company.