Financing Receivables (Tables)

12 Months Ended

Dec. 31, 2022

Financing Receivables

Summary of the components of financing receivables

($ in millions)
	Client Financing Receivables
	Client Loan and		Investment in
	Installment Payment		Sales-Type and		Commercial Financing Receivables
	Receivables		Direct Financing		Held for		Held for
At December 31, 2022:	(Loans)		Leases		Investment		Sale		*	Total
Financing receivables, gross	$	8,875	$	4,023	$	299	$	939		$	14,136
Unearned income		(439)		(351)		—		—			(790)
Unguaranteed residual value		—		422		—		—			422
Amortized cost	$	8,437	$	4,094	$	299	$	939		$	13,769
Allowance for credit losses		(108)		(60)		(5)		—			(173)
Total financing receivables, net	$	8,329	$	4,034	$	293	$	939		$	13,596
Current portion	$	5,073	$	1,485	$	293	$	939		$	7,790
Noncurrent portion	$	3,256	$	2,549	$	—	$	—		$	5,806

($ in millions)
	Client Financing Receivables
	Client Loan and		Investment in
	Installment Payment		Sales-Type and		Commercial Financing Receivables
	Receivables		Direct Financing		Held for		Held for
At December 31, 2021:	(Loans)		Leases		Investment		Sale		*	Total
Financing receivables, gross	$	9,303	$	3,336	$	450	$	793		$	13,881
Unearned income		(353)		(223)		—		—			(576)
Unguaranteed residual value		—		335		—		—			335
Amortized cost	$	8,949	$	3,448	$	450	$	793		$	13,640
Allowance for credit losses		(131)		(64)		(6)		—			(201)
Total financing receivables, net	$	8,818	$	3,384	$	444	$	793		$	13,439
Current portion	$	5,371	$	1,406	$	444	$	793		$	8,014
Noncurrent portion	$	3,447	$	1,978	$	—	$	—		$	5,425

* The carrying value of the receivables classified as held for sale approximates fair value.

Schedule of transfer of client and commercial financing assets

($ in millions)
For the year ended December 31:	2022		2021
Commercial financing receivables
Receivables transferred during the period	$	9,029	$	7,359
Receivables uncollected at end of period*	$	1,561	$	1,653
Client financing receivables
Lease receivables	$	15	$	819
Loan receivables		2		2,224
Total client financing receivables transferred	$	17	$	3,043

* 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, 2022 and 2021.

Schedule of financing receivables and allowance for credit losses by class

($ in millions)
At December 31, 2022:	Americas		EMEA		Asia Pacific		Total
Amortized cost	$	7,281	$	3,546	$	1,704	$	12,531
Allowance for credit losses
Beginning balance at January 1, 2022	$	111	$	61	$	23	$	195
Write-offs		(20)		(3)		(2)		(25)
Recoveries		1		0		4		5
Additions/(releases)		(5)		6		(4)		(3)
Other*		2		(5)		(2)		(4)
Ending balance at December 31, 2022	$	88	$	60	$	20	$	168

($ in millions)
At December 31, 2021:	Americas		EMEA		Asia Pacific		Total
Amortized cost	$	6,573	$	3,793	$	2,031	$	12,397
Allowance for credit losses
Beginning balance at January 1, 2021	$	141	$	77	$	37	$	255
Write-offs		(8)		(2)		(7)		(17)
Recoveries		0		0		1		1
Additions/(releases)		(19)		(11)		(7)		(38)
Other*		(3)		(3)		0		(7)
Ending balance at December 31, 2021	$	111	$	61	$	23	$	195

* Primarily represents translation adjustments.

Schedule of past due financing receivables

($ in millions)
						Amortized			Billed		Amortized
	Total		Amortized			Cost			Invoices		Cost
	Amortized		Cost			> 90 Days and			> 90 Days and		Not
At December 31, 2022:	Cost		> 90 Days		*	Accruing		*	Accruing		Accruing		**
Americas	$	7,281	$	272		$	198		$	22	$	74
EMEA		3,546		52			8			1		46
Asia Pacific		1,704		20			3			1		17
Total client financing receivables	$	12,531	$	344		$	208		$	23	$	137

($ in millions)
						Amortized			Billed		Amortized
	Total		Amortized			Cost			Invoices		Cost
	Amortized		Cost			> 90 Days and			> 90 Days and		Not
At December 31, 2021:	Cost		> 90 Days		*	Accruing		*	Accruing		Accruing		**
Americas	$	6,573	$	188		$	100		$	6	$	90
EMEA		3,793		99			7			2		95
Asia Pacific		2,031		25			5			2		20
Total client financing receivables	$	12,397	$	312		$	112		$	10	$	205

* At a contract level, which includes total billed and unbilled amounts for financing receivables aged greater than 90 days.

** Of the amortized cost not accruing, there was a related allowance of $122 million and $153 million at December 31, 2022 and 2021, respectively. Financing income recognized on these receivables was immaterial for the years ended December 31, 2022 and 2021, respectively.

Schedule of amortized cost by credit quality indicator

($ in millions)
	Americas				EMEA				Asia Pacific
At December 31, 2022:	Aaa - Baa3		Ba1 - D		Aaa - Baa3		Ba1 - D		Aaa - Baa3		Ba1 - D
Vintage year
2022	$	3,316	$	1,097	$	1,447	$	704	$	799	$	96
2021		1,197		323		451		159		203		65
2020		559		217		258		158		210		49
2019		251		91		161		99		127		22
2018		128		26		42		16		84		21
2017 and prior		32		45		14		38		12		17
Total	$	5,482	$	1,800	$	2,373	$	1,173	$	1,434	$	269

($ in millions)
	Americas				EMEA				Asia Pacific
At December 31, 2021:	Aaa - Baa3		Ba1 - D		Aaa - Baa3		Ba1 - D		Aaa - Baa3		Ba1 - D
Vintage year
2021	$	2,556	$	1,147	$	1,181	$	778	$	565	$	226
2020		1,013		392		506		342		381		86
2019		544		236		287		291		297		51
2018		338		117		189		85		211		64
2017		108		50		15		52		74		17
2016 and prior		20		53		21		46		38		20
Total	$	4,579	$	1,994	$	2,198	$	1,595	$	1,567	$	464