Financial Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2020

Financial Assets and Liabilities

Financial assets and financial liabilities measured at fair value on a recurring basis

	Fair Value
	Hierarchy	At March 31, 2020				At December 31, 2019
(Dollars in millions)	Level	Assets		Liabilities		Assets		Liabilities
Cash equivalents (1)
Time deposits and certificates of deposit	2	$	576	$	N/A	$	788	$	N/A
Money market funds	1		—		N/A		5		N/A
Total cash equivalents		$	576	$	N/A	$	793	$	N/A
Derivatives designated as hedging instruments (2)
Interest rate contracts with IBM	2		79		—		45		—
Foreign exchange contracts with IBM	2		—		14		—		18
Total		$	655	$	14	$	838	$	18

(1) Included within cash and cash equivalents in the Consolidated Balance Sheet.

(2) Included within other assets and other liabilities in the Consolidated Balance Sheet.

N/A – not applicable