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Financing Receivables (Tables)
 3 Months Ended
Mar. 31, 2026
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
($ in millions)Held forHeld for
At March 31, 2026(Loans)LeasesInvestment
Sale (1)
Total
Financing receivables, gross$8,822 $4,165 $574 $743 $14,304 
Unearned income(679)(456)— — (1,136)
Unguaranteed residual value— 482 — — 482 
Amortized cost$8,143 $4,191 $574 $743 $13,651 
Allowance for credit losses(64)(59)(5)— (128)
Total financing receivables, net$8,079 $4,132 $569 $743 $13,523 
Current portion$3,920 $1,277 $569 $743 $6,509 
Noncurrent portion$4,158 $2,855 $— $— $7,014 
Client Financing Receivables
Client Loan and Installment Payment ReceivablesInvestment in Sales-Type and Direct Financing
Commercial Financing Receivables
($ in millions)Held forHeld for
At December 31, 2025(Loans)LeasesInvestment
Sale (1)
Total
Financing receivables, gross$9,634 $4,338 $1,865 $1,131 $16,968 
Unearned income(710)(479)— — (1,189)
Unguaranteed residual value— 545 — — 545 
Amortized cost$8,925 $4,403 $1,865 $1,131 $16,324 
Allowance for credit losses(69)(67)(5)— (141)
Total financing receivables, net$8,856 $4,336 $1,861 $1,131 $16,184 
Current portion$4,226 $1,257 $1,861 $1,131 $8,475 
Noncurrent portion$4,630 $3,079 $— $— $7,708 
(1)The carrying value of the receivables classified as held for sale approximates fair value.
Schedule of transfer of commercial financing assets
The following table presents the total amount of commercial financing receivables transferred.
($ in millions)
For the three months ended March 31:20262025
Commercial financing receivables:
Receivables transferred during the period$2,262 $1,942 
Receivables uncollected at end of period (1)
$690 $680 
(1)Of the total amount of commercial financing receivables sold and derecognized from the Consolidated Balance Sheet, the amounts presented remained uncollected from business partners as of March 31, 2026 and 2025.
Schedule of client financing receivables and allowance for credit losses by class
The following tables present the amortized cost basis for client financing receivables at March 31, 2026 and December 31, 2025, further segmented by three classes: Americas, Europe/Middle East/Africa (EMEA) and Asia Pacific. The commercial financing receivables portfolio segment is excluded from the tables in the sections below as the receivables are short term in nature and the current estimated risk of loss and resulting impact to the company’s financial results are not material.
($ in millions)    
At March 31, 2026:AmericasEMEAAsia PacificTotal
Amortized cost$6,761 $3,998 $1,575 $12,334 
Allowance for credit losses:    
Beginning balance at January 1, 2026$69 $60 $7 $136 
Write-offs(5)0 — (5)
Recoveries0 0 — 0 
Additions/(releases)1 (8)0 (7)
Other (1)
0 (1)0 (1)
Ending balance at March 31, 2026$66 $51 $7 $123 
(1)Primarily represents translation adjustments.
($ in millions)    
At December 31, 2025:AmericasEMEAAsia PacificTotal
Amortized cost$7,278 $4,440 $1,610 $13,328 
Allowance for credit losses:   
Beginning balance at January 1, 2025$69 $45 $9 $123 
Write-offs(16)(1)(5)(22)
Recoveries0 0 0 1 
Additions/(releases)10 10 2 22 
Other (1)
7 6 0 13 
Ending balance at December 31, 2025$69 $60 $7 $136 
(1)Primarily represents translation adjustments.
Schedule of amortized cost by credit quality indicator
The following tables present the amortized cost basis for client financing receivables by credit quality indicator at March 31, 2026 and December 31, 2025, respectively. Receivables with a credit quality indicator ranging from Aaa to Baa3 are considered investment grade. All others are considered non-investment grade. The credit quality indicators reflect mitigating credit enhancement actions taken by customers which reduce the risk to IBM. Gross write-offs by vintage year at March 31, 2026 and December 31, 2025 were not material.
($ in millions)AmericasEMEAAsia Pacific
At March 31, 2026:Aaa – Baa3
Ba1 – C
Aaa – Baa3
Ba1 – C
Aaa – Baa3
Ba1 – C
Vintage year:      
2026$646 $116 $180 $194 $270 $38 
20253,418 540 1,882 432 560 79 
2024974 171 565 234 282 41 
2023524 124 194 115 146 8 
2022151 14 72 51 112 13 
2021 and prior35 49 35 44 20 4 
Total$5,748 $1,013 $2,928 $1,070 $1,391 $184 
($ in millions)AmericasEMEAAsia Pacific
At December 31, 2025:Aaa – Baa3
Ba1 – C
Aaa – Baa3
Ba1 – C
Aaa – Baa3
Ba1 – C
Vintage year:      
2025$3,979 $644 $2,223 $501 $777 $93 
20241,142 220 715 296 330 46 
2023708 181 262 143 177 9 
2022237 27 118 74 126 17 
202173 4 42 8 25 1 
2020 and prior15 49 15 41 5 4 
Total$6,153 $1,125 $3,376 $1,064 $1,440 $170