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Financing Receivables (Tables)
 9 Months Ended
Sep. 30, 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 for
Investment
Held for
Sale (1)
At September 30, 2026(Loans)LeasesTotal
Financing receivables, gross$8,530 $3,877 $775 $774 $13,956 
Unearned income(653)(411)— — (1,064)
Unguaranteed residual value— 485 — — 485 
Amortized cost$7,877 $3,951 $775 $774 $13,377 
Allowance for credit losses(61)(58)(1)— (120)
Total financing receivables, net$7,815 $3,893 $774 $774 $13,257 
Current portion$3,639 $1,225 $774 $774 $6,413 
Noncurrent portion$4,176 $2,668 $— $— $6,844 
Client Financing Receivables
Client Loan and Installment Payment ReceivablesInvestment in Sales-Type and Direct Financing
Commercial Financing Receivables
($ in millions)Held for
Investment
Held for
Sale (1)
At December 31, 2025(Loans)LeasesTotal
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 nine months ended September 30:20262025
Commercial financing receivables:
Receivables transferred during the period$6,265 $5,681 
Receivables uncollected at end of period (1)
$659 $712 
(1)Of the total amount of commercial financing receivables sold and derecognized from the Consolidated Balance Sheet, the amounts presented remained uncollected from business partners as of September 30, 2026 and 2025.
Schedule of client financing receivables and allowance for credit losses by class
The following tables present the amortized cost basis for client financing receivables at September 30, 2026 and December 31, 2025, further segmented by three classes: Americas, Europe/Middle East/Africa (EMEA) and Asia Pacific. The commercial financing receivables portfolio segment is excluded from the tables in the sections below as the receivables are short term in nature and the current estimated risk of loss and resulting impact to the company’s financial results are not material.
($ in millions)
At September 30, 2026:AmericasEMEAAsia PacificTotal
Amortized cost$6,674 $3,657 $1,497 $11,828 
Allowance for credit losses:
Beginning balance at January 1, 2026$69 $60 $7 $136 
Write-offs(7)0 (3)(10)
Recoveries0 0 0 0 
Additions/(releases)3 (9)(1)(7)
Other (1)
0 (1)0 (1)
Ending balance at September 30, 2026$66 $49 $4 $119 
(1)Primarily represents translation adjustments.
($ 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 $136 
(1)Primarily represents translation adjustments.
Schedule of amortized cost by credit quality indicator
The following tables present the amortized cost basis for client financing receivables by credit quality indicator at September 30, 2026 and December 31, 2025, respectively. Receivables with a credit quality indicator ranging from Aaa to Baa3 are considered investment grade. All others are considered non-investment grade. The credit quality indicators reflect mitigating credit enhancement actions taken by customers which reduce the risk to IBM. Gross write-offs by vintage year at September 30, 2026 and December 31, 2025 were not material.
($ in millions)AmericasEMEAAsia Pacific
At September 30, 2026:Aaa – Baa3
Ba1 – C
Aaa – Baa3
Ba1 – C
Aaa – Baa3
Ba1 – C
Vintage year:
2026$1,806 $520 $449 $452 $478 $60 
20252,608 322 1,512 274 418 57 
2024776 113 441 183 241 32 
2023303 57 149 73 115 6 
202289 6 41 30 67 9 
2021 and prior26 47 19 35 14 0 
Total$5,608 $1,066 $2,611 $1,047 $1,332 $164 
($ 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