Financial Assets & Liabilities (Tables)

6 Months Ended

Jun. 30, 2022

Financial assets and financial liabilities measured at fair value on a recurring basis


	Fair Value
	Hierarchy	At June 30, 2022				At December 31, 2021
(Dollars in millions)	Level	Assets (8)		Liabilities (9)		Assets (8)		Liabilities (9)
Cash equivalents: (1)
Time deposits and certificates of deposit (2)	2	$	2,602	$	N/A	$	1,903	$	N/A
Money market funds	1		933		N/A		263		N/A
U.S. government securities (2)	2		—		N/A		599		N/A
Total cash equivalents		$	3,535	$	N/A	$	2,766	$	N/A
Equity investments (3)	1		—		N/A		0		N/A
Kyndryl common stock (4)	1		436		N/A		807		N/A
Secured borrowing (4)	2		N/A		218		N/A		—
Debt securities-current (2)(5)	2		524		N/A		600		N/A
Debt securities-noncurrent (2)(6)	2,3		31		N/A		37		N/A
Derivatives designated as hedging instruments:
Interest rate contracts	2		2		82		12		—
Foreign exchange contracts	2		717		348		359		117
Derivatives not designated as hedging instruments:
Foreign exchange contracts	2		11		26		21		42
Equity contracts (7)	1,2		5		95		6		4
Total		$	5,261	$	769	$	4,608	$	162

(1)	Included within cash and cash equivalents in the Consolidated Balance Sheet.

(2)	Available-for-sale debt securities with carrying values that approximate fair value.

(3)	Included within investments and sundry assets in the Consolidated Balance Sheet.

(4)	Refer to “Kyndryl Common Stock” below for additional information.

(5)	U.S. treasury bills that are reported within marketable securities in the Consolidated Balance Sheet.

(6)	Includes corporate and government debt securities that are reported within investments and sundry assets in the Consolidated Balance Sheet.

(7)	Level 1 includes immaterial amounts related to equity futures contracts.

(8)

The gross balances of derivative assets contained within prepaid expenses and other current assets, and investments and sundry assets in the Consolidated Balance Sheet at June 30, 2022 were $723 million and $11 million, respectively, and at December 31, 2021 were $358 million and $40 million, respectively.

(9)	The gross balances of derivative liabilities contained within other accrued expenses and liabilities, and other liabilities in the Consolidated Balance Sheet at June 30, 2022 were $266 million and $285 million, respectively, and at December 31, 2021 were $60 million and $103 million, respectively.

N/A – not applicable