Borrowings (Tables)

3 Months Ended

Mar. 31, 2019

Borrowings

Short-Term Debt

	At March 31,		At December 31,
(Dollars in millions)	2019		2018
Commercial paper	$	2,993	$	2,995
Short-term loans	150		161
Long-term debt — current maturities	7,106		7,051
Total	$	10,250	$	10,207

Long-Term Debt, Pre-Swap Borrowing

		Balance		Balance
(Dollars in millions)	Maturities	3/31/2019		12/31/2018
U.S. dollar debt (weighted-average interest rate at March 31, 2019):*
3.2%	2019	$	3,959	$	5,465
2.6%	2020	4,338		4,344
2.9%	2021	5,531		5,529
2.5%	2022	3,529		3,536
3.2%	2023	2,413		2,428
3.6%	2024	2,046		2,037
7.0%	2025	600		600
3.5%	2026	1,350		1,350
4.7%	2027	969		969
6.5%	2028	313		313
3.7%	2030	149		32
5.9%	2032	600		600
8.0%	2038	83		83
5.6%	2039	745		745
4.0%	2042	1,107		1,107
7.0%	2045	27		27
4.7%	2046	650		650
7.1%	2096	316		316
		$	28,726	$	30,131
Other currencies (weighted-average interest rate at March 31, 2019, in parentheses):*
Euros (1.3%)	2019–2031	$	15,438	$	10,011
Pound sterling (2.7%)	2020–2022	1,368		1,338
Japanese yen (0.3%)	2022–2026	1,314		1,325
Other (6.5%)	2019–2022	500		391
		$	47,346	$	43,196
Less: net unamortized discount		831		802
Less: net unamortized debt issuance costs		88		76
Add: fair value adjustment**		406		337
		$	46,833	$	42,656
Less: current maturities		7,106		7,051
Total		$	39,727	$	35,605

*Includes notes, debentures, bank loans, secured borrowings and finance lease obligations.

**The portion of the company’s fixed-rate debt obligations that is hedged is reflected in the Consolidated Statement of Financial Position 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.

There are no debt securities issued and outstanding by IBM International Group Capital LLC, which is an indirect, 100 percent owned finance subsidiary of IBM, the parent. Any debt securities issued by IBM International Group Capital LLC, would be fully and unconditionally guaranteed by the parent.

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

Pre-swap annual contractual obligations of long-term debt outstanding at March 31, 2019, are as follows:

(Dollars in millions)	Total
2019 (for Q2 - Q4)	$	5,459
2020	7,374
2021	6,700
2022	4,354
2023	5,358
2024 and beyond	18,102
Total	$	47,346

Interest on Debt

(Dollars in millions)
For the three months ended March 31:	2019		2018
Cost of financing	$	179	$	182
Interest expense	210		165
Interest capitalized	2		3
Total interest paid and accrued	$	391	$	349