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Financing Receivables (Tables)
 12 Months Ended
Dec. 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:
($ in millions)   
Client Financing Receivables
Client Loan and
Installment Payment
Receivables
(Loans)		Investment in
Sales-Type and
Direct Financing
Leases		Commercial Financing Receivables
At December 31, 2024:Held for
Investment
Held for
Sale (1)
Total
Financing receivables, gross$7,425 $3,406 $1,322 $900 $13,052 
Unearned income(547)(344)— — (891)
Unguaranteed residual value— 479 — — 479 
Amortized cost$6,878 $3,540 $1,322 $900 $12,639 
Allowance for credit losses(73)(50)(5)— (128)
Total financing receivables, net$6,804 $3,491 $1,317 $900 $12,512 
Current portion$3,535 $1,408 $1,317 $900 $7,159 
Noncurrent portion$3,269 $2,083 $— $— $5,353 
($ in millions)  
Client Financing Receivables
Client Loan and
Installment Payment
Receivables
(Loans)		Investment in
Sales-Type and
Direct Financing
Leases		Commercial Financing Receivables
At December 31, 2023:Held for
Investment
Held for
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 $— $— $5,766 
(1)The carrying value of the receivables classified as held for sale approximates fair value.
Schedule of transfer of commercial financing assets
The following table presents the total amount of commercial financing receivables transferred.
($ in millions) 
For the year ended December 31:20242023
Commercial financing receivables
Receivables transferred during the period$7,860 $9,248 
Receivables uncollected at end of period (1)
$1,150 $1,600 
(1)Of the total amount of commercial financing receivables sold and derecognized from the Consolidated Balance Sheet, the amounts presented remained uncollected from business partners as of December 31, 2024 and 2023.
Schedule of financing receivables and allowance for credit losses by class
The following tables present the amortized cost basis for client financing receivables at December 31, 2024 and 2023, further segmented by three classes: Americas, Europe/Middle East/Africa (EMEA) and Asia Pacific. The commercial financing receivables portfolio segment is excluded from the tables in the sections below as the receivables are short term in nature and the current estimated risk of loss and resulting impact to the company’s financial results are not material.
($ in millions)
At December 31, 2024:AmericasEMEAAsia PacificTotal
Amortized cost$5,861 $3,128 $1,429 $10,418 
Allowance for credit losses
Beginning balance at January 1, 2024$92 $48 $11 $150 
Write-offs(2)(1)0 (3)
Recoveries1 0 0 1 
Additions/(releases)(10)0 (2)(12)
Other (1)
(11)(2)0 (14)
Ending balance at December 31, 2024$69 $45 $9 $123 
($ 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 $150 
(1)Primarily represents translation adjustments.
Schedule of past due financing receivables
($ in millions)    
At December 31, 2024: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)
Americas$5,861 $66 $7 $1 $62 
EMEA3,128 29 1 0 28 
Asia Pacific1,429 8 0 0 7 
Total client financing receivables$10,418 $103 $8 $1 $97 
($ in millions)    
At December 31, 2023: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)
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 $94 million and $106 million at December 31, 2024 and 2023, respectively. Financing income recognized on these receivables was immaterial for the years ended December 31, 2024 and 2023.
Schedule of amortized cost by credit quality indicator
The following tables present the amortized cost basis for client financing receivables by credit quality indicator at December 31, 2024 and 2023, respectively. Receivables with a credit quality indicator ranging from Aaa to Baa3 are considered investment grade. All others are considered non-investment grade. The credit quality indicators reflect mitigating credit enhancement actions taken by customers which reduce the risk to IBM. Gross write-offs by vintage year at December 31, 2024 were not material.
($ in millions)
AmericasEMEAAsia Pacific
At December 31, 2024:Aaa - Baa3Ba1 - CAaa - Baa3Ba1 - CAaa - Baa3Ba1 - C
Vintage year      
2024$2,080 $621 $1,145 $514 $616 $77 
20231,372 310 341 258 285 19 
2022950 113 408 194 254 26 
2021233 24 125 27 69 5 
202043 17 29 15 36 8 
2019 and prior53 44 37 35 26 7 
Total$4,732 $1,129 $2,085 $1,043 $1,287 $142 
($ in millions)
AmericasEMEAAsia Pacific
At December 31, 2023:Aaa - Baa3Ba1 - CAaa - Baa3Ba1 - CAaa - Baa3Ba1 - 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