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Financing Receivables (Tables)
 9 Months Ended
Sep. 30, 2023
Receivables [Abstract]  
Summary of the components of financing receivables
A summary of the components of the company’s financing receivables is presented as follows:
Client Financing Receivables
Client Loan and Installment Payment ReceivablesInvestment in Sales-Type and Direct Financing
Commercial Financing Receivables
(Dollars in millions)Held forHeld for
At September 30, 2023(Loans)LeasesInvestmentSale*Total
Financing receivables, gross$6,398 $3,628 $313 $593 $10,932 
Unearned income(406)(355)— — (761)
Unguaranteed residual value— 403 — — 403 
Amortized cost$5,992 $3,676 $313 $593 $10,573 
Allowance for credit losses(95)(59)(5)— (159)
Total financing receivables, net$5,897 $3,617 $308 $593 $10,414 
Current portion$3,337 $1,387 $308 $593 $5,625 
Noncurrent portion$2,560 $2,230 $— $— $4,789 
Client Financing Receivables
Client Loan and Installment Payment ReceivablesInvestment in Sales-Type and Direct Financing
Commercial Financing Receivables
(Dollars in millions)Held forHeld for
At December 31, 2022(Loans)LeasesInvestmentSale*Total
Financing receivables, gross$8,875 $4,023 $299 $939 $14,136 
Unearned income(439)(351)— — (790)
Unguaranteed residual value— 422 — — 422 
Amortized cost$8,437 $4,094 $299 $939 $13,769 
Allowance for credit losses(108)(60)(5)— (173)
Total financing receivables, net$8,329 $4,034 $293 $939 $13,596 
Current portion$5,073 $1,485 $293 $939 $7,790 
Noncurrent portion$3,256 $2,549 $— $— $5,806 
*The carrying value of the receivables classified as held for sale approximates fair value.
Schedule of transfer of commercial financing assets
The following table presents the total amount of commercial financing receivables transferred.
(Dollars in millions)
For the nine months ended September 30:20232022
Commercial financing receivables:
Receivables transferred during the period$6,453 $6,091 
Receivables uncollected at end of period*$836 $816 
*Of the total amount of commercial financing receivables sold and derecognized from the Consolidated Balance Sheet, the amounts presented remained uncollected from business partners as of September 30, 2023 and 2022.
Schedule of client financing receivables and allowance for credit losses by class
The following tables present the amortized cost basis for client financing receivables at September 30, 2023 and December 31, 2022, further segmented by three classes: Americas, Europe/Middle East/Africa (EMEA) and Asia Pacific. The commercial financing receivables portfolio segment is excluded from the tables in the sections below as the receivables are short term in nature and the current estimated risk of loss and resulting impact to the company’s financial results are not material.
(Dollars in millions)    
At September 30, 2023:AmericasEMEAAsia PacificTotal
Amortized cost$5,841 $2,636 $1,190 $9,668 
Allowance for credit losses:    
Beginning balance at January 1, 2023$88 $60 $20 $168 
Write-offs$(9)$0 $0 $(9)
Recoveries0 0 3 3 
Additions/(releases)6 (14)(4)(11)
Other*6 (1)(1)3 
Ending balance at September 30, 2023$92 $44 $18 $154 
*Primarily represents translation adjustments.
(Dollars in millions)    
At December 31, 2022:AmericasEMEAAsia PacificTotal
Amortized cost$7,281 $3,546 $1,704 $12,531 
Allowance for credit losses:    
Beginning balance at January 1, 2022$111 $61 $23 $195 
Write-offs$(20)$(3)$(2)$(25)
Recoveries1 0 4 5 
Additions/(releases)(5)6 (4)(3)
Other*2 (5)(2)(4)
Ending balance at December 31, 2022$88 $60 $20 $168 
*Primarily represents translation adjustments.
Schedule of past due client financing receivables
(Dollars in millions)Total
Amortized
Cost		Amortized
Cost
> 90 Days*		Amortized
Cost
> 90 Days and
Accruing*		Billed
Invoices
> 90 Days and
Accruing		Amortized
Cost
Not
Accruing**
At September 30, 2023:
Americas$5,841 $101 $33 $7 $70 
EMEA2,636 34 4 1 30 
Asia Pacific1,190 17 1 1 15 
Total client financing receivables$9,668 $152 $37 $9 $115 
(Dollars in millions)Total
Amortized
Cost		Amortized
Cost
> 90 Days*		Amortized
Cost
> 90 Days and
Accruing*		Billed
Invoices
> 90 Days and
Accruing		Amortized
Cost
Not
Accruing**
At December 31, 2022:
Americas$7,281 $272 $198 $22 $74 
EMEA3,546 52 8 1 46 
Asia Pacific1,704 20 3 1 17 
Total client financing receivables$12,531 $344 $208 $23 $137 
*At a contract level, which includes total billed and unbilled amounts for financing receivables aged greater than 90 days.
**Of the amortized cost not accruing, there was a related allowance of $112 million and $122 million at September 30, 2023 and December 31, 2022, respectively. Financing income recognized on these receivables was immaterial for the three and nine months ended September 30, 2023, respectively.
Schedule of amortized cost by credit quality indicator
The following tables present the amortized cost basis for client financing receivables by credit quality indicator at September 30, 2023 and December 31, 2022, respectively. Receivables with a credit quality indicator ranging from Aaa to Baa3 are considered investment grade. All others are considered non-investment grade. The credit quality indicators reflect mitigating credit enhancement actions taken by customers which reduce the risk to IBM. Gross write-offs by vintage year at September 30, 2023 were not material.
(Dollars in millions)AmericasEMEAAsia Pacific
At September 30, 2023:Aaa – Baa3
Ba1 – C
Aaa – Baa3
Ba1 – C
Aaa – Baa3
Ba1 – C
Vintage year:      
2023$1,242 $718 $385 $384 $281 $59 
20221,962 307 737 395 381 45 
2021780 160 290 94 120 43 
2020283 120 120 73 105 26 
2019124 33 66 45 52 10 
2018 and prior58 54 16 32 46 21 
Total$4,449 $1,393 $1,613 $1,023 $986 $204 
(Dollars in millions)AmericasEMEAAsia Pacific
At December 31, 2022:Aaa – Baa3
Ba1 – C
Aaa – Baa3
Ba1 – C
Aaa – Baa3
Ba1 – C
Vintage year:      
2022$3,316 $1,097 $1,447 $704 $799 $96 
20211,197 323 451 159 203 65 
2020559 217 258 158 210 49 
2019251 91 161 99 127 22 
2018128 26 42 16 84 21 
2017 and prior32 45 14 38 12 17 
Total$5,482 $1,800 $2,373 $1,173 $1,434 $269