Financial Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2020

Financial Assets and Liabilities

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

	Fair Value
	Hierarchy	At June 30, 2020				At December 31, 2019
(Dollars in millions)	Level	Assets		Liabilities		Assets		Liabilities
Cash equivalents (1)
Time deposits and certificates of deposit (2)	2	$	666	$	N/A	$	788	$	N/A
Money market funds	1		—		N/A		5		N/A
Total cash equivalents		$	666	$	N/A	$	793	$	N/A
Derivatives designated as hedging instruments (3)
Interest rate contracts with IBM	2		99		—		45		—
Foreign exchange contracts with IBM	2		0		26		—		18
Total		$	765	$	26	$	838	$	18

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

(2) Available-for-sale securities with an amortized cost basis that approximates fair value.

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

N/A – not applicable