XML 96 R36.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Financing Receivables (Tables)
 3 Months Ended
Mar. 31, 2024
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 March 31, 2024(Loans)LeasesInvestment
Sale (1)
Total
Financing receivables, gross$5,983 $3,949 $441 $644 $11,017 
Unearned income(446)(402)— — (848)
Unguaranteed residual value— 424 — — 424 
Amortized cost$5,537 $3,971 $441 $644 $10,593 
Allowance for credit losses(82)(57)(6)— (145)
Total financing receivables, net$5,455 $3,914 $435 $644 $10,448 
Current portion$2,949 $1,493 $435 $644 $5,521 
Noncurrent portion$2,506 $2,421 $— $— $4,927 
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, 2023(Loans)LeasesInvestment
Sale (1)
Total
Financing receivables, gross$7,060 $4,261 $1,160 $692 $13,173 
Unearned income(486)(429)— — (915)
Unguaranteed residual value— 458 — — 458 
Amortized cost$6,574 $4,290 $1,160 $692 $12,716 
Allowance for credit losses(87)(63)(6)— (156)
Total financing receivables, net$6,486 $4,227 $1,155 $692 $12,560 
Current portion$3,427 $1,520 $1,155 $692 $6,793 
Noncurrent portion$3,059 $2,707 $— $— $5,766 
(1)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 three months ended March 31:20242023
Commercial financing receivables:
Receivables transferred during the period$1,802 $2,233 
Receivables uncollected at end of period (1)
$655 $780 
(1)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 March 31, 2024 and 2023.
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 March 31, 2024 and December 31, 2023, 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 March 31, 2024:AmericasEMEAAsia PacificTotal
Amortized cost$5,722 $2,511 $1,275 $9,508 
Allowance for credit losses:    
Beginning balance at January 1, 2024$92 $48 $11 $150 
Write-offs$0 $0 $— $0 
Recoveries0 0 0 0 
Additions/(releases)(10)0 1 (10)
Other (1)
0 (1)0 (1)
Ending balance at March 31, 2024$82 $46 $12 $139 
(1)Primarily represents translation adjustments.
(Dollars in millions)    
At December 31, 2023:AmericasEMEAAsia PacificTotal
Amortized cost$6,488 $3,007 $1,368 $10,863 
Allowance for credit losses:   
Beginning balance at January 1, 2023$88 $60 $20 $168 
Write-offs$(9)$(1)$(8)$(18)
Recoveries0 2 3 5 
Additions/(releases)5 (14)(4)(12)
Other (1)
7 1 (1)8 
Ending balance at December 31, 2023$92 $48 $11 $150 
(1)Primarily represents translation adjustments.
Schedule of past due client financing receivables
(Dollars in millions)Total
Amortized
Cost
Amortized
Cost
> 90 Days (1)
Amortized
Cost
> 90 Days and
Accruing (1)
Billed
Invoices
> 90 Days and
Accruing
Amortized
Cost
Not
Accruing (2)
At March 31, 2024:
Americas$5,722 $102 $33 $3 $71 
EMEA2,511 41 12 4 30 
Asia Pacific1,275 8 0 0 8 
Total client financing receivables$9,508 $152 $45 $8 $109 
(Dollars in millions)Total
Amortized
Cost
Amortized
Cost
> 90 Days (1)
Amortized
Cost
> 90 Days and
Accruing (1)
Billed
Invoices
> 90 Days and
Accruing
Amortized
Cost
Not
Accruing (2)
At December 31, 2023:
Americas$6,488 $111 $40 $6 $71 
EMEA3,007 31 1 1 31 
Asia Pacific1,368 9 1 0 8 
Total client financing receivables$10,863 $151 $43 $7 $110 
(1)At a contract level, which includes total billed and unbilled amounts for financing receivables aged greater than 90 days.
(2)Of the amortized cost not accruing, there was a related allowance of $105 million and $106 million at March 31, 2024 and December 31, 2023, respectively. Financing income recognized on these receivables was immaterial for the three months ended March 31, 2024 and 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 March 31, 2024 and December 31, 2023, 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 March 31, 2024 and December 31, 2023 were not material.
(Dollars in millions)AmericasEMEAAsia Pacific
At March 31, 2024:Aaa – Baa3
Ba1 – C
Aaa – Baa3
Ba1 – C
Aaa – Baa3
Ba1 – C
Vintage year:      
2024$241 $219 $73 $108 $125 $26 
20231,929 782 552 413 398 57 
20221,426 216 557 297 349 38 
2021504 61 227 60 83 33 
2020115 54 66 44 74 19 
2019 and prior111 63 56 57 56 17 
Total$4,327 $1,395 $1,531 $980 $1,085 $189 
(Dollars in millions)AmericasEMEAAsia Pacific
At December 31, 2023:Aaa – Baa3
Ba1 – C
Aaa – Baa3
Ba1 – C
Aaa – Baa3
Ba1 – C
Vintage year:      
2023$2,292 $1,028 $750 $520 $501 $70 
20221,645 268 687 374 386 42 
2021655 85 284 83 110 40 
2020205 79 106 60 97 22 
2019104 23 58 38 40 8 
2018 and prior55 50 16 30 39 12 
Total$4,955 $1,533 $1,901 $1,106 $1,174 $195