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Financing Receivables (Tables)
 9 Months Ended
Sep. 30, 2025
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, 2025(Loans)LeasesInvestment
Sale (1)
Total
Financing receivables, gross$7,912 $3,704 $479 $745 $12,840 
Unearned income(631)(405)— — (1,036)
Unguaranteed residual value— 485 — — 485 
Amortized cost$7,281 $3,784 $479 $745 $12,289 
Allowance for credit losses(74)(51)(5)— (130)
Total financing receivables, net$7,207 $3,733 $475 $745 $12,159 
Current portion$3,396 $1,286 $475 $745 $5,901 
Noncurrent portion$3,811 $2,447 $— $— $6,258 
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, 2024(Loans)LeasesInvestment
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 
(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 nine months ended September 30:20252024
Commercial financing receivables:
Receivables transferred during the period$5,681 $5,590 
Receivables uncollected at end of period (1)
$712 $691 
(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 September 30, 2025 and 2024.
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, 2025 and December 31, 2024, 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, 2025:AmericasEMEAAsia PacificTotal
Amortized cost$6,306 $3,347 $1,412 $11,065 
Allowance for credit losses:    
Beginning balance at January 1, 2025$69 $45 $9 $123 
Write-offs$(14)$0 $(5)$(19)
Recoveries0 0 0 0 
Additions/(releases)7 0 2 10 
Other (1)
6 6 0 12 
Ending balance at September 30, 2025$68 $51 $7 $125 
(1)Primarily represents translation adjustments.
(Dollars 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 
(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 September 30, 2025:
Americas$6,306 $57 $6 $1 $51 
EMEA3,347 33 1 0 32 
Asia Pacific1,412 3 1 0 3 
Total client financing receivables$11,065 $93 $9 $2 $86 
(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, 2024:
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 
(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 $84 million and $94 million at September 30, 2025 and December 31, 2024, respectively. Financing income recognized on these receivables was immaterial for the three and nine months ended September 30, 2025 and 2024, 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, 2025 and December 31, 2024, 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, 2025 and December 31, 2024 were not material.
(Dollars in millions)AmericasEMEAAsia Pacific
At September 30, 2025:Aaa – Baa3
Ba1 – C
Aaa – Baa3
Ba1 – C
Aaa – Baa3
Ba1 – C
Vintage year:      
2025$2,637 $406 $991 $275 $446 $97 
20241,329 267 743 378 373 49 
2023817 238 287 167 207 12 
2022395 43 262 104 146 17 
202187 9 54 13 34 2 
2020 and prior27 51 31 44 22 7 
Total$5,292 $1,014 $2,368 $980 $1,228 $184 
(Dollars in millions)AmericasEMEAAsia Pacific
At December 31, 2024:Aaa – Baa3
Ba1 – C
Aaa – Baa3
Ba1 – C
Aaa – Baa3
Ba1 – 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