($ in millions) | ||||||||||
For the year ended December 31: | 2013 | 2012 | 2011 | |||||||
Cost of financing | $ | 587 | $ | 545 | $ | 553 | ||||
Interest expense | 405 | 470 | 402 | |||||||
Net investment derivative activity | (3) | (11) | 9 | |||||||
Interest capitalized | 22 | 18 | 9 | |||||||
Total interest paid and accrued | $ | 1,011 | $ | 1,022 | $ | 973 |
($ in millions) | ||||||||||||||
2013 | 2012 | |||||||||||||
For the year ended December 31: | Amount | Average Rate | Amount | Average Rate | ||||||||||
Fixed-rate debt | $ | 30,123 | 3.07 | % | $ | 24,049 | 3.43 | % | ||||||
Floating-rate debt* | 6,587 | 0.87 | % | 5,631 | 1.91 | % | ||||||||
Total | $ | 36,710 | $ | 29,680 | ||||||||||
* Includes $3,106 million in 2013 and $4,252 million in 2012 of notional interest rate swaps that effectively convert the fixed-rate long-term debt into floating-rate debt. (See note D, “Financial Instruments,” on pages 102 through 106.
($ in millions) | ||||||||||
At December 31: | Maturities | 2013 | 2012 | |||||||
U.S. dollar notes and debentures (average interest rate at December 31, 2013): | ||||||||||
0.70% | 2014–2015 | $ | 6,456 | ** | $ | 7,131 | ||||
3.05% | 2016–2017 | 8,465 | 5,807 | |||||||
3.99% | 2018–2021 | 6,206 | 7,457 | |||||||
1.88% | 2022 | 1,000 | 1,000 | |||||||
3.38% | 2023 | 1,500 | — | |||||||
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 | |||||||
27,887 | 25,656 | |||||||||
Other currencies (average interest rate at December 31, 2013, in parentheses): | ||||||||||
Euros (2.8%) | 2014–2025 | 5,894 | 2,338 | |||||||
Pound sterling (2.75%) | 2017–2020 | 1,254 | 12 | |||||||
Japanese yen (0.6%) | 2014–2017 | 1,057 | 878 | |||||||
Swiss francs (3.8%) | 2015–2020 | 181 | 178 | |||||||
Canadian (2.2%) | 2017 | 471 | 502 | |||||||
Other (8.81%) | 2015–2017 | 291 | 95 | |||||||
37,036 | 29,660 | |||||||||
Less: net unamortized discount | 872 | 865 | ||||||||
Add: fair value adjustment* | 546 | 886 | ||||||||
36,710 | 29,680 | |||||||||
Less: current maturities | 3,854 | 5,593 | ||||||||
Total | $ | 32,856 | $ | 24,088 | ||||||
* 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 plus a fair value adjustment representing changes in the fair value of the hedged debt obligations attributable to movements in benchmark interest rates.
** Includes $17 million of debt securities issued by IBM International Group Capital, LLC, which is an indirect, 100 percent owned finance subsidiary of the company and will mature in 2014. Debt securities issued by IBM International Group Capital LLC are fully and unconditionally guaranteed by the company.
($ in millions) | ||||
Total | ||||
2014 | $ | 3,854 | ||
2015 | 4,566 | |||
2016 | 4,114 | |||
2017 | 5,386 | |||
2018 | 2,662 | |||
2019 and beyond | 16,453 | |||
Total | $ | 37,036 |
($ in millions) | |||||||
At December 31: | 2013 | 2012 | |||||
Commercial paper | $ | 2,458 | $ | 1,800 | |||
Short-term loans | 551 | 1,789 | |||||
Long-term debt—current maturities | 3,854 | 5,593 | |||||
Total | $ | 6,862 | $ | 9,181 |