Borrowings (Tables)

6 Months Ended

Jun. 30, 2020

Borrowings

Short-Term Debt

	Balance		Balance
(Dollars in millions)	6/30/2020		12/31/2019
Commercial paper	$	—	$	304
Short-term loans		77		49
Secured borrowings		169		280
Debt	$	245	$	633
Debt payable to IBM		5,938		8,194
Total	$	6,184	$	8,827

Long-Term Debt

		Balance		Balance
(Dollars in millions)	Maturities	6/30/2020		12/31/2019
Long-term notes (weighted-average interest rate at June 30, 2020)
2.1%	2020	$	1,500	$	1,500
2.1%	2021		2,850		2,850
2.2%	2022		500		500
3.0%	2023		750		750
		$	5,600	$	5,600
Long-term loans (4.2% weighted-average interest rate at June 30, 2020)	2020-2021		49		113
Secured borrowings (4.1% weighted-average interest rate at June 30, 2020)	2020-2026		590		781
Long-term debt		$	6,239	$	6,495
Less: net unamortized discount			1		1
Less: net unamortized debt issuance costs			3		5
Add: fair value adjustment*			77		28
Debt		$	6,312	$	6,517
Debt payable to IBM (1.4% weighted-average interest rate at June 30, 2020)			8,370		8,751
Total		$	14,682	$	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)	(Q3-Q4)		2021		2022		2023		2024		beyond		Total
Long-term debt	$	1,702	$	3,135	$	609	$	786	$	5	$	0	$	6,239
Debt payable to IBM		2,297		2,832		2,113		786		267		75		8,370
Total	$	3,999	$	5,967	$	2,723	$	1,572	$	272	$	76	$	14,609