SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

12 Months Ended

Dec. 31, 2024

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

SCHEDULE II

INTERNATIONAL BUSINESS MACHINES CORPORATION AND SUBSIDIARY COMPANIES

VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

For the Years Ended December 31:

(Dollars in Millions)

Description	Balance at Beginning of Period		Additions/ (Deductions)		Write-offs		Foreign Currency and Other		Balance at End of Period
Allowance For Credit Losses (1) (2)
2024
–Current	$	431	$	(11)	$	(146)	$	(20)	$	254
–Noncurrent	$	27	$	(7)	$	0	$	(1)	$	19
2023
–Current	$	467	$	13	$	(97)	$	48	$	431
–Noncurrent	$	28	$	(2)	$	—	$	0	$	27
2022
–Current	$	418	$	59	$	(55)	$	45	$	467
–Noncurrent	$	25	$	6	$	0	$	(2)	$	28
Allowance For Inventory Losses
2024	$	658	$	122	$	(199)	$	(4)	$	577
2023	$	631	$	201	$	(183)	$	9	$	658
2022	$	633	$	162	$	(148)	$	(15)	$	631
Revenue Based Provisions
2024	$	480	$	348	$	(480)	$	(51)	$	298
2023	$	424	$	500	$	(456)	$	12	$	480
2022	$	435	$	620	$	(629)	$	(2)	$	424

(1) The majority of the write-offs during the period related to receivables which had been previously reserved.

(2) Other includes reserves related to discontinued operations.

Additions/(Deductions) to the allowances represent changes in estimates of unrecoverable amounts in receivables and inventory and are recorded to expense and cost accounts, respectively. Amounts are written-off when they are deemed unrecoverable by the company. Additions/(Deductions) to Revenue Based Provisions represent changes in estimated reductions to revenue, primarily as a result of revenue-related programs, including customer and business partner rebates. Write-offs for Revenue Based Provisions represent reductions in the provision due to amounts remitted to customers and business partners.