Borrowings (Tables)

9 Months Ended

Sep. 30, 2019

Borrowings

Short-Term Debt

	At September 30,		At December 31,
(Dollars in millions)	2019		2018
Commercial paper	$	2,988	$	2,995
Short-term loans		395		161
Long-term debt — current maturities		5,147		7,051
Total	$	8,530	$	10,207

Long-Term Debt, Pre-Swap Borrowing

		Balance		Balance
(Dollars in millions)	Maturities	9/30/2019		12/31/2018
U.S. dollar debt (weighted-average interest rate at September 30, 2019):*
8.4%	2019	$	752	$	5,465
2.4%	2020		4,333		4,344
2.7%	2021		8,527		5,529
2.7%	2022		6,305		3,536
3.2%	2023		2,391		2,428
3.2%	2024		5,061		2,037
6.8%	2025		624		600
3.3%	2026		4,350		1,350
4.7%	2027		969		969
6.5%	2028		313		313
3.5%	2029		3,250		—
3.7%	2030		33		32
5.9%	2032		600		600
8.0%	2038		83		83
4.5%	2039		2,745		745
4.0%	2042		1,107		1,107
7.0%	2045		27		27
4.7%	2046		650		650
4.3%	2049		3,000		—
7.1%	2096		316		316
		$	45,438	$	30,131
Other currencies (weighted-average interest rate at September 30, 2019, in parentheses):*
Euros (1.3%)	2019–2031	$	15,022	$	10,011
Pound sterling (2.7%)	2020–2025		1,346		1,338
Japanese yen (0.2%)	2022–2026		1,347		1,325
Other (6.2%)	2020–2022		360		391
		$	63,512	$	43,196
Less: net unamortized discount			890		802
Less: net unamortized debt issuance costs			148		76
Add: fair value adjustment**			470		337
		$	62,944	$	42,656
Less: current maturities			5,147		7,051
Total		$	57,797	$	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 September 30, 2019, are as follows:

(Dollars in millions)	Total
2019 (for Q4)	$	1,949
2020		7,352
2021		9,741
2022		7,121
2023		5,278
2024 and beyond		32,071
Total	$	63,512

Interest on Debt

(Dollars in millions)
For the nine months ended September 30:	2019		2018
Cost of financing	$	483	$	568
Interest expense		990		530
Interest capitalized		5		3
Total interest paid and accrued	$	1,478	$	1,101