Borrowings (Tables)

12 Months Ended

Dec. 31, 2014

Borrowings

Short-Term Debt

($ in millions)
At December 31:	2014		2013
Commercial paper	$	650	$	2,458
Short-term loans		480		551
Long-term debt—current maturities		4,601		3,854
Total	$	5,731	$	6,862

Pre-Swap Borrowings (Long-Term Debt)

($ in millions)
At December 31:		Maturities	2014		2013
U.S. dollar notes and debentures (average interest rate at December 31, 2014):
0.97%	2015–2016		$	9,254	$	6,456	**	**
4.73%	2017–2018			6,835		8,465
2.19%	2019–2021			6,555		6,206
1.88%		2022		1,000		1,000
3.38%		2023		1,500		1,500
3.63%		2024		2,000		—
7.00%		2025		600		600
6.22%		2027		469		469
6.50%		2028		313		313
5.88%		2032		600		600
8.00%		2038		83		83
5.60%		2039		745		745
4.00%		2042		1,107		1,107
7.00%		2045		27		27
7.13%		2096		316		316
				31,404		27,887
Other currencies (average interest rate at December 31, 2014, in parentheses):
Euros (1.85%)	2015–2025			5,463		5,894
Pound sterling (2.75%)	2017–2020			1,176		1,254
Japanese yen (0.5%)	2017–2019			733		1,057
Swiss francs (3.8%)	2015–2020			162		181
Canadian (2.2%)		2017		432		471
Other (10.1%)	2015–2017			367		291
				39,737		37,036
Less: net unamortized discount				853		872
Add: fair value adjustment*				792		546
				39,675		36,710
Less: current maturities				4,601		3,854
Total			$	35,073	$	32,856

*      The portion of the company’s fixed-rate debt obligations that is hedged is reflected in the ConsolidatedStatement of Financial Position as an amount equal to the sum of the debt’s carrying value plus a fair value adjustment representing changes in the fair value of the hedged debt obligations attributable to movements in benchmark interest rates.

** Includes $17 million of debt securities issued by IBM International Group Capital, LLC, an indirect 100-percent owned finance subsidiary of the company, which matured in the first half of 2014. Debt securities issued by IBM International Group Capital, LLC are fully and unconditionally guaranteed by the company.

Post-Swap Borrowing (Long-Term Debt, Including Current Portion)

($ in millions)
	2014					2013
For the year ended December 31:	Amount		Average Rate			Amount		Average Rate
Fixed-rate debt	$	27,255		3.09	%	$	30,123		3.07	%
Floating-rate debt*		12,420		0.82	%		6,587		0.87	%
Total	$	39,675				$	36,710

*      Includes $5,839 million in 2014 and $3,106 million in 2013 of notional interest rate swaps that effectively convert fixed-rate long-term debt into floating-rate debt. (See note D, “Financial Instruments,” on pages 105 through 109).

Pre-swap annual contractual maturities of long-term debt outstanding

($ in millions)
	Total
2015	$	4,600
2016		5,331
2017		5,242
2018		2,621
2019		4,069
2020 and beyond		17,874
Total	$	39,737

Interest on Debt

($ in millions)
For the year ended December 31:	2014		2013		2012
Cost of financing	$	542	$	587	$	545
Interest expense		484		405		470
Net investment derivative activity		0		(3)		(11)
Interest capitalized		4		22		18
Total interest paid and accrued	$	1,030	$	1,011	$	1,022