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Borrowings
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Borrowings Borrowings:
Short-Term Debt
The company's total short-term debt at September 30, 2024 and December 31, 2023 was $3,599 million and $6,426 million, respectively, and primarily consisted of current maturities of long-term debt detailed in "Long-Term Debt" below.
Long-Term Debt
Pre-Swap Borrowing
 BalanceBalance
(Dollars in millions)Maturities9/30/202412/31/2023
U.S. dollar debt (weighted-average interest rate at September 30, 2024): (1)
   
3.5%2024$1 $5,003 
5.1%20251,602 1,601 
3.7%20265,800 5,201 
3.3%20274,119 3,619 
5.0%20281,313 1,313 
3.6%20293,750 3,250 
2.0%20301,350 1,350 
4.8%2031500 — 
4.4%20321,850 1,850 
4.8%2033750 750 
4.9%20341,000 — 
8.0%203883 83 
4.5%20392,745 2,745 
2.9%2040650 650 
4.0%20421,107 1,107 
5.3%20441,000 — 
7.0%204527 27 
4.7%2046650 650 
4.3%20493,000 3,000 
3.0%2050750 750 
4.2%20521,400 1,400 
5.1%2053650 650 
5.3%20541,400 — 
7.1%2096316 316 
$35,815 $35,317 
Euro debt (weighted-average interest rate at September 30, 2024): (1)
1.1%2024$— $829 
1.6%20253,348 3,315 
2.3%20272,232 2,210 
0.7%20282,009 1,989 
1.5%20291,116 1,105 
0.9%20301,116 1,105 
2.7%20312,790 2,762 
0.7%20321,786 1,768 
1.3%20341,116 1,105 
3.8%20351,116 1,105 
1.2%2040949 939 
4.0%20431,116 1,105 
$18,693 $19,335 
Other currencies (weighted-average interest rate at September 30, 2024 in parentheses): (1)
  
Pound sterling (4.9%)
2038$1,006 $955 
Japanese yen (0.7%)
2026–2028887 1,251 
Other (13.8%)
2024–2027285 241 
$56,686 $57,099 
Finance lease obligations (4.9%)
2024–2034878 499 
$57,565 $57,598 
Less: net unamortized discount 837 838 
Less: net unamortized debt issuance costs 176 154 
Add: fair value adjustment (2)
 19 (60)
$56,570 $56,546 
Less: current maturities 3,590 6,425 
Total $52,980 $50,121 
(1)Includes notes, debentures, bank loans and secured borrowings.
(2)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.
The company’s indenture governing its debt securities and its various credit facilities each contain significant covenants which obligate the company to promptly pay principal and interest, limit the aggregate amount of secured indebtedness and sale and leaseback transactions to 10 percent of the company’s consolidated net tangible assets, and restrict the company’s ability to merge or consolidate unless certain conditions are met. The credit facilities also include a covenant on the company’s consolidated net interest expense ratio, which cannot be less than 2.20 to 1.0, as well as a cross default provision with respect to other defaulted indebtedness of at least $500 million.
The company is in compliance with its debt covenants and provides periodic certifications to its lenders. The failure to comply with its debt covenants could constitute an event of default with respect to the debt to which such provisions apply. If certain events of default were to occur, the principal and interest on the debt to which such event of default applied would become immediately due and payable.
On February 5, 2024, IBM International Capital Pte. Ltd (IIC), a wholly owned finance subsidiary of the company, issued $5.5 billion of U.S. dollar fixed rate notes (IIC Notes) in tranches with maturities ranging from 2 to 30 years and coupons ranging from 4.6 to 5.3 percent. These notes are fully and unconditionally guaranteed by the company.

IIC is a 100 percent owned finance subsidiary of IBM, as described by the SEC in Rule 13-01(a)(4)(vi) of Regulation S-X, the primary purpose of which is to borrow money to be made available for the benefit of IBM and its affiliates. The IIC Notes are fully and unconditionally guaranteed by IBM, and no other subsidiary of IBM guarantees the IIC Notes.

Pre-swap annual contractual obligations of long-term debt outstanding at September 30, 2024, were as follows:
(Dollars in millions)Total
Remainder of 2024$93 
20255,296 
20266,321 
20276,501 
20284,043 
Thereafter35,311 
Total$57,565 
Interest on Debt
(Dollars in millions)  
For the nine months ended September 30:20242023
Cost of financing$254 $255 
Interest expense1,288 1,202 
Interest capitalized10 7 
Total interest paid and accrued$1,552 $1,464 
Lines of Credit
The company has a $2.5 billion Three-Year Credit Agreement and a $7.5 billion Five-Year Credit Agreement (the Credit Agreements) with maturity dates of June 20, 2027 and June 22, 2029, respectively. The Credit Agreements permit the company and its subsidiary borrowers to borrow up to $10 billion on a revolving basis. At September 30, 2024, there were no borrowings by the company, or its subsidiaries, under these credit facilities.