Borrowings (Tables)

3 Months Ended

Mar. 31, 2020

Borrowings

Short-Term Debt

	Balance		Balance
(Dollars in millions)	3/31/2020		12/31/2019
Commercial paper	$	—	$	304
Short-term loans		31		49
Secured borrowings		240		280
Debt	$	271	$	633
Debt payable to IBM		6,210		8,194
Total	$	6,480	$	8,827

Long-Term Debt

		Balance		Balance
(Dollars in millions)	Maturities	3/31/2020		12/31/2019
Long-term notes (weighted-average interest rate at March 31, 2020)
2.8%	2020	$	1,500	$	1,500
2.4%	2021		2,850		2,850
2.2%	2022		500		500
3.0%	2023		750		750
		$	5,600	$	5,600
Long-term loans (4.3% weighted-average interest rate at March 31, 2020)	2020-2021		93		113
Secured borrowings (4.5% weighted-average interest rate at March 31, 2020)	2020-2025		674		781
Long-term debt		$	6,367	$	6,495
Less: net unamortized discount			1		1
Less: net unamortized debt issuance costs			4		5
Add: fair value adjustment*			76		28
Debt		$	6,438	$	6,517
Debt payable to IBM (1.4% weighted-average interest rate at March 31, 2020)			8,517		8,751
Total		$	14,956	$	15,268

* The portion of the company's fixed-rate debt obligations that is hedged is reflected in the Consolidated Balance Sheet as an amount equal to the sum of the debt's carrying value and a fair value adjustment representing changes in the fair value of the hedged debt obligations attributable to movements in benchmark interest rates.

Contractual obligations of long-term debt and long-term debt payable to IBM outstanding

	2020										2025 and
(Dollars in millions)	(Q2-Q4)		2021		2022		2023		2024		beyond		Total
Long-term debt	$	1,839	$	3,133	$	603	$	786	$	5	$	0	$	6,367
Debt payable to IBM		3,210		2,615		1,761		675		201		56		8,517
Total	$	5,049	$	5,748	$	2,365	$	1,461	$	205	$	56	$	14,884