Financing Receivables (Tables)
|
6 Months Ended |
Jun. 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 Receivables | | Investment in Sales-Type and Direct Financing | | | | | | | | | Commercial Financing Receivables | | | | ($ in millions) | | | | Held for
Investment | | Held for Sale (1) | | | | At June 30, 2026 | | (Loans) | | Leases | | | | Total | | Financing receivables, gross | | $ | 8,732 | | | $ | 4,142 | | | $ | 777 | | | $ | 874 | | | $ | 14,526 | | | Unearned income | | (663) | | | (438) | | | — | | | — | | | (1,102) | | | Unguaranteed residual value | | — | | | 480 | | | — | | | — | | | 480 | | | Amortized cost | | $ | 8,068 | | | $ | 4,184 | | | $ | 777 | | | $ | 874 | | | $ | 13,904 | | | Allowance for credit losses | | (61) | | | (60) | | | (1) | | | — | | | (122) | | | Total financing receivables, net | | $ | 8,007 | | | $ | 4,124 | | | $ | 776 | | | $ | 874 | | | $ | 13,782 | | | Current portion | | $ | 3,713 | | | $ | 1,293 | | | $ | 776 | | | $ | 874 | | | $ | 6,656 | | | Noncurrent portion | | $ | 4,294 | | | $ | 2,831 | | | $ | — | | | $ | — | | | $ | 7,126 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Client Financing Receivables | | | | | | | | | Client Loan and Installment Payment Receivables | | Investment in Sales-Type and Direct Financing | | | | | | | | | | | Commercial Financing Receivables | | | | ($ in millions) | | | | Held for
Investment | | Held for Sale (1) | | | | At December 31, 2025 | | (Loans) | | Leases | | | | 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 | |
|
| Schedule of transfer of commercial financing assets |
The following table presents the total amount of commercial financing receivables transferred. | | | | | | | | | | | | | | | | ($ in millions) | | | | For the six months ended June 30: | | 2026 | | 2025 | | | | | | | | | | | | | | | | | | | | | | Commercial financing receivables: | | | | | | Receivables transferred during the period | | $ | 4,217 | | | $ | 3,715 | | Receivables uncollected at end of period (1) | | $ | 753 | | | $ | 686 | |
|
| 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 June 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 June 30, 2026: | | Americas | | EMEA | | Asia Pacific | | Total | | Amortized cost | | $ | 6,769 | | | $ | 3,816 | | | $ | 1,667 | | | $ | 12,252 | | | Allowance for credit losses: | | | | | | | | | | Beginning balance at January 1, 2026 | | $ | 69 | | | $ | 60 | | | $ | 7 | | | $ | 136 | | | Write-offs | | (7) | | | 0 | | | (3) | | | (9) | | | Recoveries | | 0 | | | 0 | | | 0 | | | 0 | | | Additions/(releases) | | 1 | | | (8) | | | 0 | | | (7) | | Other (1) | | 1 | | | (1) | | | 0 | | | 1 | | | Ending balance at June 30, 2026 | | $ | 65 | | | $ | 51 | | | $ | 4 | | | $ | 121 | |
(1)Primarily represents translation adjustments. | | | | | | | | | | | | | | | | | | | | | | | | | | | | ($ in millions) | | | | | | | | | | At December 31, 2025: | | Americas | | EMEA | | Asia Pacific | | Total | | 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) | | | Recoveries | | 0 | | | 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 June 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 June 30, 2026 and December 31, 2025 were not material. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ($ in millions) | | Americas | | EMEA | | Asia Pacific | | At June 30, 2026: | | Aaa – Baa3 | | Ba1 – C | | Aaa – Baa3 | | Ba1 – C | | Aaa – Baa3 | | Ba1 – C | | Vintage year: | | | | | | | | | | | | | | 2026 | | $ | 1,218 | | | $ | 429 | | | $ | 383 | | | $ | 271 | | | $ | 479 | | | $ | 48 | | | 2025 | | 2,982 | | | 410 | | | 1,677 | | | 346 | | | 509 | | | 67 | | | 2024 | | 881 | | | 149 | | | 501 | | | 212 | | | 274 | | | 36 | | | 2023 | | 376 | | | 115 | | | 166 | | | 96 | | | 132 | | | 7 | | | 2022 | | 119 | | | 12 | | | 57 | | | 42 | | | 89 | | | 11 | | | 2021 and prior | | 30 | | | 49 | | | 30 | | | 38 | | | 14 | | | 1 | | | Total | | $ | 5,605 | | | $ | 1,164 | | | $ | 2,812 | | | $ | 1,003 | | | $ | 1,497 | | | $ | 170 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ($ in millions) | | Americas | | EMEA | | Asia 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 | | | 2024 | | 1,142 | | | 220 | | | 715 | | | 296 | | | 330 | | | 46 | | | 2023 | | 708 | | | 181 | | | 262 | | | 143 | | | 177 | | | 9 | | | 2022 | | 237 | | | 27 | | | 118 | | | 74 | | | 126 | | | 17 | | | 2021 | | 73 | | | 4 | | | 42 | | | 8 | | | 25 | | | 1 | | | 2020 and prior | | 15 | | | 49 | | | 15 | | | 41 | | | 5 | | | 4 | | | Total | | $ | 6,153 | | | $ | 1,125 | | | $ | 3,376 | | | $ | 1,064 | | | $ | 1,440 | | | $ | 170 | |
|