XML 71 R46.htm IDEA: XBRL DOCUMENT v3.22.4
Leases (Tables)
12 Months Ended
Dec. 31, 2022
Leases  
Schedule of various components of lease costs

($ in millions)

For the year ended December 31:

2022

2021

2020

Finance lease cost

$

67

$

52

$

35

Operating lease cost

1,050

1,126

1,181

Short-term lease cost

7

21

28

Variable lease cost

262

336

343

Sublease income

(72)

(46)

(28)

Total lease cost

$

1,315

$

1,489

$

1,558

Schedule of supplemental information relating to the cash flows arising from lease transactions

($ in millions)

For the year ended December 31:

2022

    

2021

    

2020

Cash paid for amounts included in the measurement of lease liabilities

  

 

  

 

  

Operating cash outflows from finance leases

$

9

$

8

$

8

Financing cash outflows from finance leases

55

42

25

Operating cash outflows from operating leases

1,020

1,135

1,212

ROU assets obtained in exchange for new finance lease liabilities*

196

46

50

ROU assets obtained in exchange for new operating lease liabilities*

705

779

785

* Includes the impact of currency.

Schedule of weighted-average lease terms and discount rates

At December 31:

2022

    

2021

Finance leases

Weighted-average remaining lease term

3.7

yrs.

4.1

yrs.

Weighted-average discount rate

3.57

%

0.88

%

Operating leases

Weighted-average remaining lease term

4.5

yrs.

4.5

yrs.

Weighted-average discount rate

3.77

%

3.01

%

Schedule of expected undiscounted cash out flows for operating and finance leases

($ in millions)

    

    

    

    

    

    

    

Imputed

    

 

    

2023

    

2024

    

2025

    

2026

    

2027

    

Thereafter

    

Interest

*

Total

**

Finance leases

$

88

$

74

$

54

$

24

$

22

$

19

$

(43)

$

239

Operating leases

960

788

555

430

285

313

(267)

3,064

*

Imputed interest represents the difference between undiscounted cash flows and discounted cash flows.

**

The company entered into lease agreements for certain facilities and equipment with payments totaling approximately $691 million that have not yet commenced as of December 31, 2022, and therefore are not included in this table.

Schedule of finance lease right of use assets and liability

($ in millions)

At December 31:

2022

    

2021

ROU Assets—Property, plant and equipment

$

223

$

86

Lease Liabilities

Short-term debt

75

 

36

Long-term debt

164

63

Schedule of amounts included in the Consolidated Income Statement related to lessor activity

($ in millions)

For the year ended December 31:

2022

2021

2020

Lease income—sales-type and direct financing leases

Sales-type lease selling price

$

1,636

$

1,355

$

1,321

Less: Carrying value of underlying assets*

(385)

(300)

(410)

Gross profit

1,251

1,055

911

Interest income on lease receivables

200

179

249

Total sales-type and direct financing lease income

1,451

1,234

1,160

Lease income—operating leases

116

169

255

Variable lease income

87

120

115

Total lease income

$

1,653

$

1,523

$

1,530

* Excludes unguaranteed residual value.

Schedule of maturity analysis of the lease payments due to IBM on sales-type and direct financing leases

($ in millions)

    

Total

2023

$

1,692

2024

1,173

2025

738

2026

330

2027

87

Thereafter

3

Total undiscounted cash flows

$

4,023

Present value of lease payments (recognized as financing receivables)

3,672

*

Difference between undiscounted cash flows and discounted cash flows

$

351

*

The present value of the lease payments will not equal the financing receivables balances in the Consolidated Balance Sheet due to certain items including IDCs, allowance for credit losses and residual values, which are included in the financing receivable balance, but are not included in the future lease payments.