000000051143--12-312021Q110-QCapital stock, par value $.20 per shareIBMibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMember00CHXP3YP2Y0181000000213000000ibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberibm:OtherIncomeExpenseMemberfalse0000051143ibm:FinancingForPurchaseAgreementsMember2021-03-310000051143ibm:ExtendedLinesOfCreditMember2021-03-310000051143ibm:FinancingForPurchaseAgreementsMember2020-12-310000051143ibm:ExtendedLinesOfCreditMember2020-12-310000051143us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2021-01-012021-03-310000051143us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2020-01-012020-03-310000051143us-gaap:TreasuryStockCommonMember2021-03-310000051143us-gaap:RetainedEarningsMember2021-03-310000051143us-gaap:ParentMember2021-03-310000051143us-gaap:NoncontrollingInterestMember2021-03-310000051143us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2021-03-310000051143us-gaap:AccumulatedTranslationAdjustmentMember2021-03-310000051143us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310000051143us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-03-310000051143us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-03-310000051143us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-03-310000051143us-gaap:TreasuryStockCommonMember2020-12-310000051143us-gaap:RetainedEarningsMember2020-12-310000051143us-gaap:ParentMember2020-12-310000051143us-gaap:NoncontrollingInterestMember2020-12-310000051143us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2020-12-310000051143us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310000051143us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000051143us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-12-310000051143us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-12-310000051143us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-310000051143us-gaap:TreasuryStockCommonMember2020-03-310000051143us-gaap:RetainedEarningsMember2020-03-310000051143us-gaap:ParentMember2020-03-310000051143us-gaap:NoncontrollingInterestMember2020-03-310000051143us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2020-03-310000051143us-gaap:AccumulatedTranslationAdjustmentMember2020-03-310000051143us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310000051143us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-03-310000051143us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-03-310000051143us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-03-310000051143srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:RetainedEarningsMember2019-12-310000051143srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:ParentMember2019-12-310000051143us-gaap:TreasuryStockCommonMember2019-12-310000051143us-gaap:RetainedEarningsMember2019-12-310000051143us-gaap:ParentMember2019-12-310000051143us-gaap:NoncontrollingInterestMember2019-12-310000051143us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2019-12-310000051143us-gaap:AccumulatedTranslationAdjustmentMember2019-12-310000051143us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310000051143us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2019-12-310000051143us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2019-12-310000051143us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-12-310000051143srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310000051143us-gaap:LoansPayableMember2021-03-310000051143us-gaap:LoansPayableMember2020-12-310000051143us-gaap:IntersegmentEliminationMemberibm:SystemsMember2021-01-012021-03-310000051143us-gaap:IntersegmentEliminationMemberibm:GlobalTechnologyServicesMember2021-01-012021-03-310000051143us-gaap:IntersegmentEliminationMemberibm:GlobalFinancingMember2021-01-012021-03-310000051143us-gaap:IntersegmentEliminationMemberibm:GlobalBusinessServicesMember2021-01-012021-03-310000051143us-gaap:IntersegmentEliminationMemberibm:CloudAndCognitiveSoftwareMember2021-01-012021-03-310000051143us-gaap:EMEAMember2021-01-012021-03-310000051143srt:AsiaPacificMember2021-01-012021-03-310000051143srt:AmericasMember2021-01-012021-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMember2021-01-012021-03-310000051143us-gaap:IntersegmentEliminationMemberibm:SystemsMember2020-01-012020-03-310000051143us-gaap:IntersegmentEliminationMemberibm:GlobalTechnologyServicesMember2020-01-012020-03-310000051143us-gaap:IntersegmentEliminationMemberibm:GlobalFinancingMember2020-01-012020-03-310000051143us-gaap:IntersegmentEliminationMemberibm:GlobalBusinessServicesMember2020-01-012020-03-310000051143us-gaap:IntersegmentEliminationMemberibm:CloudAndCognitiveSoftwareMember2020-01-012020-03-310000051143us-gaap:EMEAMember2020-01-012020-03-310000051143srt:AsiaPacificMember2020-01-012020-03-310000051143srt:AmericasMember2020-01-012020-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMember2020-01-012020-03-310000051143srt:MinimumMember2023-04-012021-03-310000051143srt:MaximumMember2023-04-012021-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:TransactionProcessingPlatformsMemberibm:CloudAndCognitiveSoftwareMember2021-01-012021-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:TechnologySupportServicesMemberibm:GlobalTechnologyServicesMember2021-01-012021-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:SystemsHardwareMemberibm:SystemsMember2021-01-012021-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:OperatingSystemsSoftwareMemberibm:SystemsMember2021-01-012021-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:InfrastructureAndCloudServicesMemberibm:GlobalTechnologyServicesMember2021-01-012021-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:GlobalProcessServicesMemberibm:GlobalBusinessServicesMember2021-01-012021-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:ConsultingServicesMemberibm:GlobalBusinessServicesMember2021-01-012021-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:CognitiveApplicationsMemberibm:CloudAndCognitiveSoftwareMember2021-01-012021-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:CloudAndDataPlatformsMemberibm:CloudAndCognitiveSoftwareMember2021-01-012021-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:ApplicationManagementServicesMemberibm:GlobalBusinessServicesMember2021-01-012021-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:SystemsMember2021-01-012021-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:GlobalTechnologyServicesMember2021-01-012021-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:GlobalBusinessServicesMember2021-01-012021-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:CloudAndCognitiveSoftwareMember2021-01-012021-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:TransactionProcessingPlatformsMemberibm:CloudAndCognitiveSoftwareMember2020-01-012020-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:TechnologySupportServicesMemberibm:GlobalTechnologyServicesMember2020-01-012020-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:SystemsHardwareMemberibm:SystemsMember2020-01-012020-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:OperatingSystemsSoftwareMemberibm:SystemsMember2020-01-012020-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:InfrastructureAndCloudServicesMemberibm:GlobalTechnologyServicesMember2020-01-012020-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:GlobalProcessServicesMemberibm:GlobalBusinessServicesMember2020-01-012020-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:ConsultingServicesMemberibm:GlobalBusinessServicesMember2020-01-012020-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:CognitiveApplicationsMemberibm:CloudAndCognitiveSoftwareMember2020-01-012020-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:CloudAndDataPlatformsMemberibm:CloudAndCognitiveSoftwareMember2020-01-012020-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:ApplicationManagementServicesMemberibm:GlobalBusinessServicesMember2020-01-012020-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:SystemsMember2020-01-012020-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:GlobalTechnologyServicesMember2020-01-012020-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:GlobalBusinessServicesMember2020-01-012020-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:CloudAndCognitiveSoftwareMember2020-01-012020-03-310000051143ibm:AcquisitionsCompletedIn2020Member2020-12-310000051143us-gaap:InterestRateContractMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestExpenseMember2021-01-012021-03-310000051143us-gaap:InterestRateContractMemberus-gaap:CashFlowHedgingMemberibm:CostOfFinancingMember2021-01-012021-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-012021-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestExpenseMember2021-01-012021-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMemberus-gaap:CostOfSalesMember2021-01-012021-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMemberibm:OtherIncomeExpenseMember2021-01-012021-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMemberibm:CostOfServicesMember2021-01-012021-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMemberibm:CostOfFinancingMember2021-01-012021-03-310000051143us-gaap:InterestRateContractMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestExpenseMember2020-01-012020-03-310000051143us-gaap:InterestRateContractMemberus-gaap:CashFlowHedgingMemberibm:CostOfFinancingMember2020-01-012020-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-01-012020-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestExpenseMember2020-01-012020-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMemberus-gaap:CostOfSalesMember2020-01-012020-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMemberibm:OtherIncomeExpenseMember2020-01-012020-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMemberibm:CostOfServicesMember2020-01-012020-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMemberibm:CostOfFinancingMember2020-01-012020-03-310000051143us-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-03-310000051143us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310000051143us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-01-012021-03-310000051143us-gaap:AccumulatedTranslationAdjustmentMember2020-01-012020-03-310000051143us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310000051143us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-01-012020-03-310000051143us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-01-012021-03-310000051143us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-012021-03-310000051143us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2021-01-012021-03-310000051143us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember2021-01-012021-03-310000051143ibm:AccumulatedDefinedBenefitPlansAdjustmentCurtailmentsAndSettlementsMember2021-01-012021-03-310000051143us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-01-012020-03-310000051143us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-01-012020-03-310000051143us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2020-01-012020-03-310000051143us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember2020-01-012020-03-310000051143ibm:AccumulatedDefinedBenefitPlansAdjustmentCurtailmentsAndSettlementsMember2020-01-012020-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMember2021-01-012021-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2021-01-012021-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMember2020-01-012020-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2020-01-012020-03-310000051143srt:MinimumMember2021-03-310000051143us-gaap:NoncontrollingInterestMember2021-01-012021-03-310000051143us-gaap:NoncontrollingInterestMember2020-01-012020-03-310000051143ibm:BrazilTaxMattersMember2021-01-012021-03-310000051143ibm:CisgilVsIbmUkMember2021-02-012021-02-280000051143ibm:ThreeYearCreditAgreementMember2021-03-310000051143ibm:FiveYearCreditAgreementMember2021-03-310000051143ibm:CreditAgreement364DaysMember2021-03-310000051143us-gaap:RevolvingCreditFacilityMember2021-03-310000051143us-gaap:InterestExpenseMember2020-01-012020-12-310000051143ibm:CostOfFinancingMember2020-01-012020-12-310000051143us-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-012021-03-310000051143us-gaap:InterestExpenseMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-012021-03-310000051143us-gaap:CostOfSalesMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-012021-03-310000051143ibm:OtherIncomeExpenseMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-012021-03-310000051143ibm:CostOfServicesMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-012021-03-310000051143ibm:CostOfFinancingMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-012021-03-310000051143us-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-01-012020-03-310000051143us-gaap:InterestExpenseMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-01-012020-03-310000051143us-gaap:CostOfSalesMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-01-012020-03-310000051143ibm:OtherIncomeExpenseMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-01-012020-03-310000051143ibm:CostOfServicesMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-01-012020-03-310000051143ibm:CostOfFinancingMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-01-012020-03-310000051143us-gaap:IntersegmentEliminationMember2021-01-012021-03-310000051143us-gaap:CorporateNonSegmentMember2021-01-012021-03-310000051143us-gaap:IntersegmentEliminationMember2020-01-012020-03-310000051143us-gaap:CorporateNonSegmentMember2020-01-012020-03-310000051143ibm:DebtCurrentMember2020-12-310000051143ibm:DebtNoncurrentMember2021-03-310000051143ibm:DebtNoncurrentMember2020-12-310000051143us-gaap:OperatingSegmentsMemberibm:GlobalTechnologyServicesMember2020-01-012020-12-310000051143us-gaap:OperatingSegmentsMemberibm:SystemsMember2020-01-012020-12-310000051143us-gaap:OperatingSegmentsMemberibm:GlobalBusinessServicesMember2020-01-012020-12-310000051143us-gaap:OperatingSegmentsMemberibm:CloudAndCognitiveSoftwareMember2020-01-012020-12-310000051143us-gaap:OperatingSegmentsMemberibm:SystemsMember2021-03-310000051143us-gaap:OperatingSegmentsMemberibm:GlobalTechnologyServicesMember2021-03-310000051143us-gaap:OperatingSegmentsMemberibm:GlobalBusinessServicesMember2021-03-310000051143us-gaap:OperatingSegmentsMemberibm:CloudAndCognitiveSoftwareMember2021-03-310000051143ibm:AcquisitionsCompletedIn2021Memberibm:GlobalBusinessServicesMember2021-03-310000051143ibm:AcquisitionsCompletedIn2021Memberibm:CloudAndCognitiveSoftwareMember2021-03-310000051143us-gaap:OperatingSegmentsMemberibm:SystemsMember2020-12-310000051143us-gaap:OperatingSegmentsMemberibm:GlobalTechnologyServicesMember2020-12-310000051143us-gaap:OperatingSegmentsMemberibm:GlobalBusinessServicesMember2020-12-310000051143us-gaap:OperatingSegmentsMemberibm:CloudAndCognitiveSoftwareMember2020-12-310000051143us-gaap:OperatingSegmentsMemberibm:SystemsMember2019-12-310000051143us-gaap:OperatingSegmentsMemberibm:GlobalTechnologyServicesMember2019-12-310000051143us-gaap:OperatingSegmentsMemberibm:GlobalBusinessServicesMember2019-12-310000051143us-gaap:OperatingSegmentsMemberibm:CloudAndCognitiveSoftwareMember2019-12-310000051143us-gaap:InterestExpenseMember2021-01-012021-03-310000051143us-gaap:CostOfSalesMember2021-01-012021-03-310000051143ibm:OtherIncomeExpenseMember2021-01-012021-03-310000051143ibm:CostOfServicesMember2021-01-012021-03-310000051143ibm:CostOfFinancingMember2021-01-012021-03-310000051143us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-01-012020-03-310000051143us-gaap:InterestExpenseMember2020-01-012020-03-310000051143us-gaap:CostOfSalesMember2020-01-012020-03-310000051143ibm:OtherIncomeExpenseMember2020-01-012020-03-310000051143ibm:CostOfServicesMember2020-01-012020-03-310000051143ibm:CostOfFinancingMember2020-01-012020-03-310000051143us-gaap:OtherIntangibleAssetsMember2021-03-310000051143us-gaap:DevelopedTechnologyRightsMember2021-03-310000051143us-gaap:CustomerRelationshipsMember2021-03-310000051143us-gaap:ComputerSoftwareIntangibleAssetMember2021-03-310000051143ibm:PatentsAndTrademarksMember2021-03-310000051143us-gaap:OtherIntangibleAssetsMember2020-12-310000051143us-gaap:DevelopedTechnologyRightsMember2020-12-310000051143us-gaap:CustomerRelationshipsMember2020-12-310000051143us-gaap:ComputerSoftwareIntangibleAssetMember2020-12-310000051143ibm:PatentsAndTrademarksMember2020-12-310000051143ibm:ThirdPartyInvestorMemberus-gaap:CommercialLoanMember2021-01-012021-03-310000051143us-gaap:LoansReceivableMember2021-01-012021-03-310000051143us-gaap:FinanceLeasesPortfolioSegmentMember2021-01-012021-03-310000051143ibm:MoodysBa1ToDRatingMemberus-gaap:EMEAMember2021-03-310000051143ibm:MoodysBa1ToDRatingMembersrt:AsiaPacificMember2021-03-310000051143ibm:MoodysBa1ToDRatingMembersrt:AmericasMember2021-03-310000051143ibm:MoodysAaaToBaa3RatingMemberus-gaap:EMEAMember2021-03-310000051143ibm:MoodysAaaToBaa3RatingMembersrt:AsiaPacificMember2021-03-310000051143ibm:MoodysAaaToBaa3RatingMembersrt:AmericasMember2021-03-310000051143ibm:MoodysBa1ToDRatingMemberus-gaap:EMEAMember2020-12-310000051143ibm:MoodysBa1ToDRatingMembersrt:AsiaPacificMember2020-12-310000051143ibm:MoodysBa1ToDRatingMembersrt:AmericasMember2020-12-310000051143ibm:MoodysAaaToBaa3RatingMemberus-gaap:EMEAMember2020-12-310000051143ibm:MoodysAaaToBaa3RatingMembersrt:AsiaPacificMember2020-12-310000051143ibm:MoodysAaaToBaa3RatingMembersrt:AmericasMember2020-12-310000051143us-gaap:EMEAMemberibm:ClientFinancingReceivablesPortfolioSegmentMember2021-03-310000051143srt:AsiaPacificMemberibm:ClientFinancingReceivablesPortfolioSegmentMember2021-03-310000051143srt:AmericasMemberibm:ClientFinancingReceivablesPortfolioSegmentMember2021-03-310000051143us-gaap:LoansReceivableMember2021-03-310000051143us-gaap:CommercialLoanMember2021-03-310000051143ibm:ClientFinancingReceivablesPortfolioSegmentMember2021-03-310000051143us-gaap:EMEAMemberibm:ClientFinancingReceivablesPortfolioSegmentMember2020-12-310000051143srt:AsiaPacificMemberibm:ClientFinancingReceivablesPortfolioSegmentMember2020-12-310000051143srt:AmericasMemberibm:ClientFinancingReceivablesPortfolioSegmentMember2020-12-310000051143us-gaap:LoansReceivableMember2020-12-310000051143us-gaap:CommercialLoanMember2020-12-310000051143ibm:ClientFinancingReceivablesPortfolioSegmentMember2020-12-310000051143us-gaap:EMEAMemberibm:ClientFinancingReceivablesPortfolioSegmentMember2019-12-310000051143srt:AsiaPacificMemberibm:ClientFinancingReceivablesPortfolioSegmentMember2019-12-310000051143srt:AmericasMemberibm:ClientFinancingReceivablesPortfolioSegmentMember2019-12-310000051143ibm:ClientFinancingReceivablesPortfolioSegmentMember2019-12-310000051143us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-03-310000051143us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000051143srt:MaximumMemberus-gaap:ForeignExchangeContractMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2021-01-012021-03-310000051143us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2021-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2021-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMember2021-03-310000051143ibm:EquityContractEmployeeCompensationHedgeMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2021-03-310000051143us-gaap:NetInvestmentHedgingMember2021-03-310000051143us-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMember2020-12-310000051143us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2020-12-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2020-12-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMember2020-12-310000051143ibm:EquityContractEmployeeCompensationHedgeMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2020-12-310000051143us-gaap:NetInvestmentHedgingMember2020-12-310000051143us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-03-310000051143us-gaap:OtherCurrentLiabilitiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-03-310000051143us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000051143us-gaap:OtherCurrentLiabilitiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000051143us-gaap:EquityContractMemberibm:FairValueInputsLevel1AndLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-03-310000051143us-gaap:EquityContractMemberibm:FairValueInputsLevel1AndLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000051143us-gaap:InterestRateContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-03-310000051143us-gaap:InterestRateContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMemberibm:OtherIncomeExpenseMember2021-01-012021-03-310000051143us-gaap:EquityContractMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-012021-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMemberibm:OtherIncomeExpenseMember2020-01-012020-03-310000051143us-gaap:EquityContractMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-01-012020-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMemberus-gaap:InterestExpenseMember2021-01-012021-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMemberibm:CostOfFinancingMember2021-01-012021-03-310000051143ibm:CashFlowHedgingAndNetInvestmentHedgingMember2021-01-012021-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMemberus-gaap:InterestExpenseMember2020-01-012020-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMemberibm:CostOfFinancingMember2020-01-012020-03-310000051143ibm:CashFlowHedgingAndNetInvestmentHedgingMember2020-01-012020-03-310000051143ibm:OtherReceivablesMember2021-03-310000051143ibm:OtherReceivablesMember2020-12-310000051143us-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMember2021-01-012021-03-310000051143us-gaap:NetInvestmentHedgingMember2021-01-012021-03-310000051143us-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMember2020-01-012020-12-310000051143us-gaap:ForeignExchangeForwardMemberus-gaap:CashFlowHedgingMember2020-01-012020-12-310000051143us-gaap:NetInvestmentHedgingMember2020-01-012020-12-310000051143us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMember2021-03-310000051143us-gaap:OtherNoncurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMember2021-03-310000051143us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000051143us-gaap:OtherNoncurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000051143us-gaap:ForeignPlanMember2021-01-012021-03-310000051143country:US2021-01-012021-03-310000051143us-gaap:ForeignPlanMember2020-01-012020-03-310000051143country:US2020-01-012020-03-310000051143us-gaap:ForeignPlanMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-01-012021-03-310000051143country:USus-gaap:PensionPlansDefinedBenefitMember2021-01-012021-03-310000051143country:USus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-01-012021-03-310000051143us-gaap:ForeignPlanMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-01-012020-03-310000051143country:USus-gaap:PensionPlansDefinedBenefitMember2020-01-012020-03-310000051143country:USus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-01-012020-03-310000051143ibm:ExtendedWarrantyMember2021-03-310000051143ibm:ExtendedWarrantyMember2020-12-310000051143ibm:ExtendedWarrantyMember2020-03-310000051143ibm:ExtendedWarrantyMember2019-12-310000051143ibm:ThreeYearCreditAgreementMember2021-01-012021-03-310000051143ibm:FiveYearCreditAgreementMember2021-01-012021-03-310000051143ibm:CreditAgreement364DaysMember2021-01-012021-03-310000051143ibm:IbmCreditLlcMemberibm:FixedRateDebtDue2021To2023Member2021-01-012021-03-310000051143ibm:FixedRateDebtDueIn2021Member2020-01-012020-03-310000051143ibm:EuroFixedRateNotesMember2020-03-310000051143currency:USDibm:NotesPayableMaturing2096Member2021-03-310000051143currency:USDibm:NotesPayableMaturing2050Member2021-03-310000051143currency:USDibm:NotesPayableMaturing2049Member2021-03-310000051143currency:USDibm:NotesPayableMaturing2046Member2021-03-310000051143currency:USDibm:NotesPayableMaturing2045Member2021-03-310000051143currency:USDibm:NotesPayableMaturing2042Member2021-03-310000051143currency:USDibm:NotesPayableMaturing2040Member2021-03-310000051143currency:USDibm:NotesPayableMaturing2039Member2021-03-310000051143currency:USDibm:NotesPayableMaturing2038Member2021-03-310000051143currency:USDibm:NotesPayableMaturing2032Member2021-03-310000051143currency:USDibm:NotesPayableMaturing2030Member2021-03-310000051143currency:USDibm:NotesPayableMaturing2029Member2021-03-310000051143currency:USDibm:NotesPayableMaturing2028Member2021-03-310000051143currency:USDibm:NotesPayableMaturing2027Member2021-03-310000051143currency:USDibm:NotesPayableMaturing2026Member2021-03-310000051143currency:USDibm:NotesPayableMaturing2025Member2021-03-310000051143currency:USDibm:NotesPayableMaturing2024Member2021-03-310000051143currency:USDibm:NotesPayableMaturing2023Member2021-03-310000051143currency:USDibm:NotesPayableMaturing2022Member2021-03-310000051143currency:USDibm:NotesPayableMaturing2021Member2021-03-310000051143ibm:OtherCurrencyMember2021-03-310000051143currency:USD2021-03-310000051143currency:JPY2021-03-310000051143currency:GBP2021-03-310000051143currency:EUR2021-03-310000051143currency:USDibm:NotesPayableMaturing2096Member2020-12-310000051143currency:USDibm:NotesPayableMaturing2050Member2020-12-310000051143currency:USDibm:NotesPayableMaturing2049Member2020-12-310000051143currency:USDibm:NotesPayableMaturing2046Member2020-12-310000051143currency:USDibm:NotesPayableMaturing2045Member2020-12-310000051143currency:USDibm:NotesPayableMaturing2042Member2020-12-310000051143currency:USDibm:NotesPayableMaturing2040Member2020-12-310000051143currency:USDibm:NotesPayableMaturing2039Member2020-12-310000051143currency:USDibm:NotesPayableMaturing2038Member2020-12-310000051143currency:USDibm:NotesPayableMaturing2032Member2020-12-310000051143currency:USDibm:NotesPayableMaturing2030Member2020-12-310000051143currency:USDibm:NotesPayableMaturing2029Member2020-12-310000051143currency:USDibm:NotesPayableMaturing2028Member2020-12-310000051143currency:USDibm:NotesPayableMaturing2027Member2020-12-310000051143currency:USDibm:NotesPayableMaturing2026Member2020-12-310000051143currency:USDibm:NotesPayableMaturing2025Member2020-12-310000051143currency:USDibm:NotesPayableMaturing2024Member2020-12-310000051143currency:USDibm:NotesPayableMaturing2023Member2020-12-310000051143currency:USDibm:NotesPayableMaturing2022Member2020-12-310000051143currency:USDibm:NotesPayableMaturing2021Member2020-12-310000051143ibm:OtherCurrencyMember2020-12-310000051143currency:USD2020-12-310000051143currency:JPY2020-12-310000051143currency:GBP2020-12-310000051143currency:EUR2020-12-310000051143us-gaap:TechnologyServiceMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-012021-03-310000051143us-gaap:ProductMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-012021-03-310000051143us-gaap:FinancialServiceMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-012021-03-310000051143us-gaap:TechnologyServiceMember2021-01-012021-03-310000051143us-gaap:ProductMember2021-01-012021-03-310000051143us-gaap:FinancialServiceMember2021-01-012021-03-310000051143us-gaap:TechnologyServiceMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-01-012020-03-310000051143us-gaap:ProductMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-01-012020-03-310000051143us-gaap:FinancialServiceMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-01-012020-03-310000051143us-gaap:TechnologyServiceMember2020-01-012020-03-310000051143us-gaap:ProductMember2020-01-012020-03-310000051143us-gaap:FinancialServiceMember2020-01-012020-03-310000051143us-gaap:SubsequentEventMember2021-04-272021-04-270000051143us-gaap:InterestRateContractMemberus-gaap:FairValueHedgingMemberus-gaap:InterestExpenseMember2021-01-012021-03-310000051143us-gaap:InterestRateContractMemberus-gaap:FairValueHedgingMemberibm:CostOfFinancingMember2021-01-012021-03-310000051143us-gaap:InterestRateContractMemberus-gaap:FairValueHedgingMemberus-gaap:InterestExpenseMember2020-01-012020-03-310000051143us-gaap:InterestRateContractMemberus-gaap:FairValueHedgingMemberibm:CostOfFinancingMember2020-01-012020-03-310000051143us-gaap:ForeignExchangeForwardMemberus-gaap:CashFlowHedgingMember2021-01-012021-03-310000051143us-gaap:CurrencySwapMemberus-gaap:CashFlowHedgingMember2021-01-012021-03-310000051143ibm:ForwardStartingInterestRateSwapMemberus-gaap:CashFlowHedgingMember2021-01-012021-03-3100000511432020-03-310000051143us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-03-310000051143us-gaap:BankTimeDepositsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-03-310000051143us-gaap:USGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000051143us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000051143us-gaap:BankTimeDepositsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000051143ibm:AcquisitionsCompletedIn2021Memberus-gaap:TrademarksMember2021-03-310000051143ibm:AcquisitionsCompletedIn2021Memberus-gaap:DevelopedTechnologyRightsMember2021-03-310000051143ibm:AcquisitionsCompletedIn2021Memberus-gaap:CustomerRelationshipsMember2021-03-310000051143us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-03-310000051143us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000051143us-gaap:FairValueMeasurementsRecurringMember2021-03-310000051143us-gaap:FairValueMeasurementsRecurringMember2020-12-310000051143us-gaap:ForeignExchangeForwardMemberus-gaap:CashFlowHedgingMember2021-03-310000051143us-gaap:CurrencySwapMemberus-gaap:CashFlowHedgingMember2021-03-310000051143ibm:ForwardStartingInterestRateSwapMemberus-gaap:CashFlowHedgingMember2021-03-310000051143us-gaap:ForeignExchangeForwardMemberus-gaap:CashFlowHedgingMember2020-12-310000051143us-gaap:CurrencySwapMemberus-gaap:CashFlowHedgingMember2020-12-310000051143ibm:ForwardStartingInterestRateSwapMemberus-gaap:CashFlowHedgingMember2020-12-310000051143us-gaap:EmployeeStockOptionMember2021-01-012021-03-310000051143us-gaap:EmployeeStockOptionMember2020-01-012020-03-310000051143us-gaap:EMEAMemberibm:ClientFinancingReceivablesPortfolioSegmentMember2021-01-012021-03-310000051143srt:AsiaPacificMemberibm:ClientFinancingReceivablesPortfolioSegmentMember2021-01-012021-03-310000051143srt:AmericasMemberibm:ClientFinancingReceivablesPortfolioSegmentMember2021-01-012021-03-310000051143ibm:ClientFinancingReceivablesPortfolioSegmentMember2021-01-012021-03-310000051143us-gaap:EMEAMemberibm:ClientFinancingReceivablesPortfolioSegmentMember2020-01-012020-12-310000051143srt:AsiaPacificMemberibm:ClientFinancingReceivablesPortfolioSegmentMember2020-01-012020-12-310000051143srt:AmericasMemberibm:ClientFinancingReceivablesPortfolioSegmentMember2020-01-012020-12-310000051143ibm:ClientFinancingReceivablesPortfolioSegmentMember2020-01-012020-12-3100000511432019-12-310000051143us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-012021-03-310000051143us-gaap:ResearchAndDevelopmentExpenseMember2021-01-012021-03-310000051143ibm:CostOfRevenueMember2021-01-012021-03-310000051143us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-01-012020-12-310000051143us-gaap:ResearchAndDevelopmentExpenseMember2020-01-012020-12-310000051143ibm:CostOfRevenueMember2020-01-012020-12-310000051143srt:MinimumMemberibm:AcquisitionsCompletedIn2021Memberus-gaap:TrademarksMember2021-01-012021-03-310000051143srt:MinimumMemberibm:AcquisitionsCompletedIn2021Memberus-gaap:DevelopedTechnologyRightsMember2021-01-012021-03-310000051143srt:MaximumMemberibm:AcquisitionsCompletedIn2021Memberus-gaap:TrademarksMember2021-01-012021-03-310000051143srt:MaximumMemberibm:AcquisitionsCompletedIn2021Memberus-gaap:DevelopedTechnologyRightsMember2021-01-012021-03-310000051143ibm:AcquisitionsCompletedIn2021Memberus-gaap:CustomerRelationshipsMember2021-01-012021-03-310000051143srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate201613Member2019-12-310000051143us-gaap:OperatingSegmentsMemberibm:SystemsMember2021-01-012021-03-310000051143us-gaap:OperatingSegmentsMemberibm:GlobalTechnologyServicesMember2021-01-012021-03-310000051143us-gaap:OperatingSegmentsMemberibm:SystemsMember2020-01-012020-03-310000051143us-gaap:OperatingSegmentsMemberibm:GlobalTechnologyServicesMember2020-01-012020-03-310000051143us-gaap:OperatingSegmentsMemberibm:GlobalFinancingMember2020-01-012020-03-310000051143us-gaap:OperatingSegmentsMemberibm:GlobalBusinessServicesMember2020-01-012020-03-310000051143us-gaap:OperatingSegmentsMemberibm:CloudAndCognitiveSoftwareMember2020-01-012020-03-310000051143us-gaap:OperatingSegmentsMember2020-01-012020-03-310000051143us-gaap:OperatingSegmentsMemberibm:GlobalFinancingMember2021-01-012021-03-310000051143us-gaap:OperatingSegmentsMemberibm:GlobalBusinessServicesMember2021-01-012021-03-310000051143us-gaap:OperatingSegmentsMemberibm:CloudAndCognitiveSoftwareMember2021-01-012021-03-310000051143us-gaap:OperatingSegmentsMember2021-01-012021-03-310000051143us-gaap:MaterialReconcilingItemsMember2021-01-012021-03-310000051143us-gaap:MaterialReconcilingItemsMember2020-01-012020-03-3100000511432023-04-012021-03-3100000511432021-04-012021-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:GlobalFinancingMember2021-01-012021-03-310000051143ibm:OperatingSegmentsExcludingIntersegmentEliminationMemberibm:GlobalFinancingMember2020-01-012020-03-310000051143us-gaap:TreasuryStockCommonMember2021-01-012021-03-310000051143us-gaap:RetainedEarningsMember2021-01-012021-03-310000051143us-gaap:ParentMember2021-01-012021-03-310000051143us-gaap:TreasuryStockCommonMember2020-01-012020-03-310000051143us-gaap:RetainedEarningsMember2020-01-012020-03-310000051143us-gaap:ParentMember2020-01-012020-03-310000051143us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-012021-03-310000051143us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-01-012020-03-310000051143ibm:LitigationCaseRelatedToViolationsOfEmployeeRetirementIncomeSecurityActInUnitedStatesDistrictCourtRegardingDivestingMicroelectronicsBusinessMember2015-05-012015-05-310000051143us-gaap:ForeignPlanMemberus-gaap:PensionPlansDefinedBenefitMember2021-01-012021-03-310000051143us-gaap:ForeignPlanMemberus-gaap:PensionPlansDefinedBenefitMember2020-01-012020-03-310000051143ibm:ScoVsIbmMember2017-10-300000051143ibm:AcquiredIntangiblesMember2021-03-310000051143ibm:ThirdPartyInvestorMembersrt:MaximumMemberus-gaap:CommercialLoanMember2020-12-240000051143srt:MinimumMemberus-gaap:FinanceLeasesPortfolioSegmentMember2021-01-012021-03-310000051143srt:MinimumMemberus-gaap:CommercialLoanMember2021-01-012021-03-310000051143srt:MaximumMemberus-gaap:LoansReceivableMember2021-01-012021-03-310000051143srt:MaximumMemberus-gaap:FinanceLeasesPortfolioSegmentMember2021-01-012021-03-310000051143srt:MaximumMemberus-gaap:CommercialLoanMember2021-01-012021-03-310000051143us-gaap:FinanceLeasesPortfolioSegmentMember2021-03-310000051143us-gaap:FinanceLeasesPortfolioSegmentMember2020-12-310000051143us-gaap:EMEAMemberibm:ClientFinancingReceivablesPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2021-03-310000051143srt:AsiaPacificMemberibm:ClientFinancingReceivablesPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2021-03-310000051143srt:AmericasMemberibm:ClientFinancingReceivablesPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2021-03-310000051143ibm:ClientFinancingReceivablesPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2021-03-310000051143us-gaap:EMEAMemberibm:ClientFinancingReceivablesPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-12-310000051143srt:AsiaPacificMemberibm:ClientFinancingReceivablesPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-12-310000051143srt:AmericasMemberibm:ClientFinancingReceivablesPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-12-310000051143ibm:ClientFinancingReceivablesPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-12-310000051143us-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMember2021-03-310000051143ibm:ForeignPlanAndDefinedBenefitPlansMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-01-012021-03-310000051143ibm:ForeignPlanAndDefinedBenefitPlansMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-01-012020-03-310000051143us-gaap:RevolvingCreditFacilityMember2021-01-012021-03-310000051143ibm:ExtendedWarrantyMember2021-01-012021-03-310000051143ibm:ExtendedWarrantyMember2020-01-012020-03-310000051143us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-03-310000051143us-gaap:PerformanceSharesMember2021-01-012021-03-310000051143ibm:AcquisitionsCompletedIn2021Member2021-03-310000051143ibm:AcquisitionsCompletedIn2021Member2021-01-012021-03-3100000511432020-01-012020-12-3100000511432020-01-012020-03-3100000511432020-12-310000051143exch:XNYSus-gaap:CommonStockMember2021-01-012021-03-310000051143exch:XNYSibm:Notes2.875PercentDue2025Member2021-01-012021-03-310000051143exch:XNYSibm:Notes2.625PercentDue2022Member2021-01-012021-03-310000051143exch:XNYSibm:Notes1.750PercentDue2031Member2021-01-012021-03-310000051143exch:XNYSibm:Notes1.750PercentDue2028Member2021-01-012021-03-310000051143exch:XNYSibm:Notes1.500PercentDue2029Member2021-01-012021-03-310000051143exch:XNYSibm:Notes1.25PercentDue2023Member2021-01-012021-03-310000051143exch:XNYSibm:Notes1.250PercentDue2027Member2021-01-012021-03-310000051143exch:XNYSibm:Notes1.200PercentDue2040Member2021-01-012021-03-310000051143exch:XNYSibm:Notes1.125PercentDue2024Member2021-01-012021-03-310000051143exch:XNYSibm:Notes0.950PercentDue2025Member2021-01-012021-03-310000051143exch:XNYSibm:Notes0.875PercentDue2025Member2021-01-012021-03-310000051143exch:XNYSibm:Notes0.650PercentDue2032Member2021-01-012021-03-310000051143exch:XNYSibm:Notes0.500PercentDue2021Member2021-01-012021-03-310000051143exch:XNYSibm:Notes0.375PercentDue2023Member2021-01-012021-03-310000051143exch:XNYSibm:Notes0.300PercentDue2028Member2021-01-012021-03-310000051143exch:XNYSibm:Notes0.300PercentDue2026Member2021-01-012021-03-310000051143exch:XNYSibm:Debentures7.125PercentDue2096Member2021-01-012021-03-310000051143exch:XNYSibm:Debentures7.00PercentDue2045Member2021-01-012021-03-310000051143exch:XNYSibm:Debentures7.00PercentDue2025Member2021-01-012021-03-310000051143exch:XNYSibm:Debentures6.50PercentDue2028Member2021-01-012021-03-310000051143exch:XNYSibm:Debentures6.22PercentDue2027Member2021-01-012021-03-310000051143exch:XCHIus-gaap:CommonStockMember2021-01-012021-03-3100000511432021-03-3100000511432021-01-012021-03-31xbrli:sharesiso4217:USDxbrli:pureibm:itemibm:claimibm:defendantiso4217:USDxbrli:sharesibm:country

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTER ENDED MARCH 31, 2021

1-2360

(Commission file number)

INTERNATIONAL BUSINESS MACHINES CORPORATION

(Exact name of registrant as specified in its charter)

New York

13-0871985

(State of incorporation)

(IRS employer identification number)

One New Orchard Road

Armonk, New York

10504

(Address of principal executive offices)

(Zip Code)

914-499-1900

(Registrant’s telephone number)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

    

Trading symbol

    

Name of each exchange
on which registered

Capital stock, par value $.20 per share

 

IBM

 

New York Stock Exchange

 

 

 

 

NYSE Chicago

0.500%  Notes due 2021

 

IBM 21B

 

New York Stock Exchange

2.625%  Notes due 2022

 

IBM 22A

 

New York Stock Exchange

1.250%  Notes due 2023

 

IBM 23A

 

New York Stock Exchange

0.375%  Notes due 2023

 

IBM 23B

 

New York Stock Exchange

1.125%  Notes due 2024

 

IBM 24A

 

New York Stock Exchange

2.875%  Notes due 2025

 

IBM 25A

 

New York Stock Exchange

0.950%  Notes due 2025

 

IBM 25B

 

New York Stock Exchange

0.875%  Notes due 2025

 

IBM 25C

 

New York Stock Exchange

0.300%  Notes due 2026

 

IBM 26B

 

New York Stock Exchange

1.250%  Notes due 2027

 

IBM 27B

 

New York Stock Exchange

0.300% Notes due 2028

IBM 28B

New York Stock Exchange

1.750%  Notes due 2028

 

IBM 28A

 

New York Stock Exchange

1.500%  Notes due 2029

 

IBM 29

 

New York Stock Exchange

1.750%  Notes due 2031

 

IBM 31

 

New York Stock Exchange

0.650% Notes due 2032

IBM 32A

New York Stock Exchange

1.200% Notes due 2040

IBM 40

New York Stock Exchange

7.00%    Debentures due 2025

 

IBM 25

 

New York Stock Exchange

6.22%    Debentures due 2027

 

IBM 27

 

New York Stock Exchange

6.50%    Debentures due 2028

 

IBM 28

 

New York Stock Exchange

7.00%    Debentures due 2045

 

IBM 45

 

New York Stock Exchange

7.125%  Debentures due 2096

 

IBM 96

 

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section l3 or l5(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes     No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes     No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer 

Accelerated filer 

Non-accelerated filer 

Smaller reporting company

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes     No 

The registrant had 893,522,828 shares of common stock outstanding at March 31, 2021.

Table of Contents

Index

9

Page

Part I - Financial Information:

Item 1. Consolidated Financial Statements (Unaudited):

Consolidated Income Statement for the three months ended March 31, 2021 and 2020

3

Consolidated Statement of Comprehensive Income for the three months ended March 31, 2021 and 2020

4

Consolidated Balance Sheet at March 31, 2021 and December 31, 2020

5

Consolidated Statement of Cash Flows for the three months ended March 31, 2021 and 2020

7

Consolidated Statement of Equity for the three months ended March 31, 2021 and 2020

8

Notes to Consolidated Financial Statements

9

Item 2. Management’s Discussion and Analysis of Results of Operations and Financial Condition

41

Item 4. Controls and Procedures

72

Part II - Other Information:

Item 1. Legal Proceedings

73

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Repurchases of Equity Securities

73

Item 6. Exhibits

74

2

Table of Contents

Part I - Financial Information

Item 1. Consolidated Financial Statements:

INTERNATIONAL BUSINESS MACHINES CORPORATION

AND SUBSIDIARY COMPANIES

CONSOLIDATED INCOME STATEMENT

(UNAUDITED)

 

Three Months Ended March 31, 

(Dollars in millions except per share amounts)

     

2021

    

2020

Revenue:

  

 

  

Services

$

11,404

$

11,373

Sales

 

6,083

 

5,895

Financing

 

242

 

302

Total revenue

 

17,730

 

17,571

Cost:

 

  

 

  

Services

 

7,775

 

7,843

Sales

 

1,585

 

1,624

Financing

 

165

 

181

Total cost

 

9,525

 

9,649

Gross profit

 

8,204

 

7,922

Expense and other (income):

 

  

 

  

Selling, general and administrative

 

5,174

 

5,955

Research, development and engineering

 

1,630

 

1,625

Intellectual property and custom development income

 

(147)

 

(116)

Other (income) and expense

 

362

 

182

Interest expense

 

280

 

326

Total expense and other (income)

 

7,299

 

7,972

Income/(loss) from continuing operations before income taxes

 

905

 

(49)

Provision for/(benefit from) income taxes

 

(51)

 

(1,226)

Income from continuing operations

$

956

$

1,176

Income/(loss) from discontinued operations, net of tax

 

(1)

 

(1)

Net income

$

955

$

1,175

Earnings/(loss) per share of common stock:

 

  

 

  

Assuming dilution:

 

  

 

  

Continuing operations

$

1.06

$

1.31

Discontinued operations

 

0.00

 

0.00

Total

$

1.06

$

1.31

Basic:

 

  

 

  

Continuing operations

$

1.07

$

1.32

Discontinued operations

 

0.00

 

0.00

Total

$

1.07

$

1.32

Weighted-average number of common shares outstanding: (millions)

 

  

 

  

Assuming dilution

 

901.7

 

895.0

Basic

 

893.6

 

888.0

(Amounts may not add due to rounding.)

(The accompanying notes are an integral part of the financial statements.)

3

Table of Contents

INTERNATIONAL BUSINESS MACHINES CORPORATION

AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(UNAUDITED)

 

Three Months Ended March 31, 

(Dollars in millions)

     

2021

    

2020

Net income

$

955

$

1,175

Other comprehensive income/(loss), before tax:

 

  

 

  

Foreign currency translation adjustments

 

549

 

(919)

Net changes related to available-for-sale securities:

 

  

 

  

Unrealized gains/(losses) arising during the period

 

0

 

0

Reclassification of (gains)/losses to net income

 

 

Total net changes related to available-for-sale securities

 

0

 

0

Unrealized gains/(losses) on cash flow hedges:

 

  

 

  

Unrealized gains/(losses) arising during the period

 

187

 

(180)

Reclassification of (gains)/losses to net income

 

160

 

91

Total unrealized gains/(losses) on cash flow hedges

 

347

 

(90)

Retirement-related benefit plans:

 

  

 

  

Prior service costs/(credits)

 

0

 

(4)

Net (losses)/gains arising during the period

 

20

 

8

Curtailments and settlements

 

17

 

8

Amortization of prior service (credits)/costs

 

3

 

1

Amortization of net (gains)/losses

 

648

 

570

Total retirement-related benefit plans

 

689

 

582

Other comprehensive income/(loss), before tax

 

1,586

 

(427)

Income tax (expense)/benefit related to items of other comprehensive income

 

(505)

 

(260)

Other comprehensive income/(loss), net of tax

 

1,080

 

(686)

Total comprehensive income/(loss)

$

2,036

$

489

(Amounts may not add due to rounding.)

(The accompanying notes are an integral part of the financial statements.)

4

Table of Contents

INTERNATIONAL BUSINESS MACHINES CORPORATION

AND SUBSIDIARY COMPANIES

CONSOLIDATED BALANCE SHEET

(UNAUDITED)

ASSETS

    

At March 31, 

    

At December 31, 

(Dollars in millions)

2021

    

2020

Assets:

 

  

 

  

Current assets:

 

  

 

  

Cash and cash equivalents

$

10,531

$

13,212

Restricted cash

 

142

 

463

Marketable securities

 

600

 

600

Notes and accounts receivable — trade (net of allowances of $345 in 2021 and $351 in 2020)

 

6,458

 

7,132

Short-term financing receivables (net of allowances of $200 in 2021 and $218 in 2020)

 

8,822

 

10,892

Other accounts receivable (net of allowances of $16 in 2021 and $28 in 2020)

 

787

 

714

Inventory, at lower of average cost or net realizable value:

 

 

  

Finished goods

 

234

 

190

Work in process and raw materials

 

1,594

 

1,649

Total inventory

 

1,828

 

1,839

Deferred costs

 

2,223

 

2,107

Prepaid expenses and other current assets

 

2,647

 

2,206

Total current assets

 

34,038

 

39,165

Property, plant and equipment

 

32,269

 

33,176

Less: Accumulated depreciation

 

22,817

 

23,136

Property, plant and equipment — net

 

9,452

 

10,040

Operating right-of-use assets — net

 

4,483

 

4,686

Long-term financing receivables (net of allowances of $36 in 2021 and $45 in 2020)

 

5,922

 

7,086

Prepaid pension assets

 

7,800

 

7,610

Deferred costs

 

2,336

 

2,449

Deferred taxes

 

8,953

 

9,241

Goodwill

 

59,984

 

59,617

Intangible assets — net

 

13,535

 

13,796

Investments and sundry assets

 

2,125

 

2,282

Total assets

$

148,629

$

155,971

(Amounts may not add due to rounding.)

(The accompanying notes are an integral part of the financial statements.)

5

Table of Contents

INTERNATIONAL BUSINESS MACHINES CORPORATION

AND SUBSIDIARY COMPANIES

CONSOLIDATED BALANCE SHEET – (CONTINUED)

(UNAUDITED)

LIABILITIES AND EQUITY

    

At March 31, 

    

At December 31, 

(Dollars in millions except per share amounts)

2021

    

2020

Liabilities:

Current liabilities:

 

  

 

  

Taxes

$

2,640

$

3,301

Short-term debt

 

5,198

 

7,183

Accounts payable

 

4,140

 

4,908

Compensation and benefits

 

3,256

 

3,440

Deferred income

 

14,197

 

12,833

Operating lease liabilities

 

1,337

 

1,357

Other accrued expenses and liabilities

 

5,775

 

6,847

Total current liabilities

 

36,542

 

39,869

Long-term debt

 

51,206

 

54,355

Retirement and nonpension postretirement benefit obligations

 

17,346

 

18,248

Deferred income

 

4,153

 

4,301

Operating lease liabilities

 

3,379

 

3,574

Other liabilities

 

14,489

 

14,897

Total liabilities

 

127,116

 

135,244

Equity:

 

 

  

IBM stockholders’ equity:

 

 

  

Common stock, par value $0.20 per share, and additional paid-in capital

 

56,788

 

56,556

Shares authorized: 4,687,500,000

 

 

  

Shares issued: 2021 - 2,244,015,188

 

 

  

2020 - 2,242,969,004

 

 

  

Retained earnings

 

162,218

 

162,717

Treasury stock - at cost

 

(169,360)

 

(169,339)

Shares: 2021 - 1,350,492,360

 

 

  

2020 - 1,350,315,580

 

 

  

Accumulated other comprehensive income/(loss)

 

(28,257)

 

(29,337)

Total IBM stockholders’ equity

 

21,389

 

20,597

Noncontrolling interests

 

124

 

129

Total equity

 

21,513

 

20,727

Total liabilities and equity

$

148,629

$

155,971

(Amounts may not add due to rounding.)

(The accompanying notes are an integral part of the financial statements.)

6

Table of Contents

INTERNATIONAL BUSINESS MACHINES CORPORATION

AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)

Three Months Ended March 31, 

(Dollars in millions)

    

2021

    

2020

Cash flows from operating activities:

 

  

 

  

Net income

$

955

$

1,175

Adjustments to reconcile net income to cash provided by operating activities

 

  

 

  

Depreciation

 

1,052

 

1,012

Amortization of intangibles

 

620

 

622

Stock-based compensation

 

213

 

189

Net (gain)/loss on asset sales and other

 

7

 

315

Changes in operating assets and liabilities, net of acquisitions/divestitures

 

2,066

 

1,162

Net cash provided by operating activities

 

4,914

 

4,476

Cash flows from investing activities:

 

  

 

  

Payments for property, plant and equipment

 

(494)

 

(630)

Proceeds from disposition of property, plant and equipment

 

139

 

46

Investment in software

 

(175)

 

(153)

Acquisition of businesses, net of cash acquired

 

(1,120)

 

(13)

Divestitures of businesses, net of cash transferred

 

(15)

 

26

Non-operating finance receivables — net

 

(9)

 

(20)

Purchases of marketable securities and other investments

 

(875)

 

(1,096)

Proceeds from disposition of marketable securities and other investments

 

549

 

938

Net cash provided by/(used in) investing activities

 

(2,000)

 

(902)

Cash flows from financing activities:

 

  

 

  

Proceeds from new debt

 

51

 

6,055

Payments to settle debt

 

(4,261)

 

(5,285)

Short-term borrowings/(repayments) less than 90 days — net

 

(89)

 

586

Common stock repurchases for tax withholdings

 

(41)

 

(44)

Financing — other

 

15

 

13

Cash dividends paid

 

(1,457)

 

(1,440)

Net cash provided by/(used in) financing activities

 

(5,783)

 

(115)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

(134)

 

(403)

Net change in cash, cash equivalents and restricted cash

 

(3,002)

 

3,057

Cash, cash equivalents and restricted cash at January 1

 

13,675

 

8,314

Cash, cash equivalents and restricted cash at March 31

$

10,673

$

11,371

(Amounts may not add due to rounding.)

(The accompanying notes are an integral part of the financial statements.)

7

Table of Contents

INTERNATIONAL BUSINESS MACHINES CORPORATION

AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENT OF EQUITY

(UNAUDITED)

 

Common

Stock and

Accumulated

Additional

Other

Total IBM

Non-

Paid-in

Retained

Treasury

Comprehensive

Stockholders’

Controlling

Total

(Dollars in millions except per share amounts)

  

Capital

  

Earnings

 

Stock

 

Income/(Loss)

 

Equity

 

Interests

 

Equity

Equity - January 1, 2021

$

56,556

$

162,717

$

(169,339)

$

(29,337)

$

20,597

$

129

$

20,727

Net income plus other comprehensive income/(loss):

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Net income

 

  

 

955

 

  

 

  

 

955

 

  

 

955

Other comprehensive income/(loss)

 

  

 

  

 

  

 

1,080

 

1,080

 

  

 

1,080

Total comprehensive income/(loss)

 

  

 

  

 

  

 

  

$

2,036

 

  

$

2,036

Cash dividends paid — common stock ($1.63 per share)

 

  

 

(1,457)

 

  

 

  

 

(1,457)

 

  

 

(1,457)

Common stock issued under employee plans (1,046,184 shares)

 

232

 

  

 

  

 

  

 

232

 

  

 

232

Purchases (339,506 shares) and sales (162,726 shares) of treasury stock under employee plans — net

 

  

 

2

 

(21)

 

  

 

(18)

 

  

 

(18)

Changes in noncontrolling interests

 

  

 

 

  

 

  

 

  

 

(6)

 

(6)

Equity – March 31, 2021

$

56,788

$

162,218

$

(169,360)

$

(28,257)

$

21,389

$

124

$

21,513

  

Common

  

  

  

  

  

  

Stock and

Accumulated

Additional

Other

Total IBM

Non-

Paid-in

Retained

Treasury

Comprehensive

Stockholders’

Controlling

Total

(Dollars in millions except per share amounts)

Capital

Earnings

Stock

Income/(Loss)

Equity

Interests

Equity

Equity - January 1, 2020

$

55,895

$

162,954

$

(169,413)

$

(28,597)

$

20,841

$

144

$

20,985

Cumulative effect of change in accounting principle*

(66)

(66)

(66)

Net income plus other comprehensive income/(loss):

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Net income

 

  

 

1,175

 

  

 

  

 

1,175

 

  

 

1,175

Other comprehensive income/(loss)

 

  

 

  

 

  

 

(686)

 

(686)

 

  

 

(686)

Total comprehensive income/(loss)

 

  

 

  

 

  

 

  

$

489

 

  

$

489

Cash dividends paid — common stock ($1.62 per share)

 

  

 

(1,440)

 

  

 

  

 

(1,440)

 

  

 

(1,440)

Common stock issued under employee plans (935,486 shares)

 

197

 

  

 

  

 

  

 

197

 

  

 

197

Purchases (