International Business Machines (IBM) 10-Q 30 Oct 24 2024 Q3 Quarterly report Financial data

Cover

Cover	9 Months Ended
	Sep. 30, 2024 shares
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2024
Entity File Number	1-2360
Entity Registrant Name	INTERNATIONAL BUSINESS MACHINES CORPORATION
Entity Incorporation, State or Country Code	NY
Entity Tax Identification Number	13-0871985
Entity Address, Address Line One	One New Orchard Road
Entity Address, City or Town	Armonk
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10504
City Area Code	914
Local Phone Number	499-1900
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	924,645,152
Entity Central Index Key	0000051143
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
NEW YORK STOCK EXCHANGE, INC. | Common Stock
Document Information [Line Items]
Title of 12(b) Security	Capital stock, par value $.20 per share
Trading Symbol	IBM
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. | 2.875% Notes due 2025
Document Information [Line Items]
Title of 12(b) Security	2.875% Notes due 2025
Trading Symbol	IBM 25A
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. | 0.950% Notes due 2025
Document Information [Line Items]
Title of 12(b) Security	0.950% Notes due 2025
Trading Symbol	IBM 25B
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. | 0.875% Notes due 2025
Document Information [Line Items]
Title of 12(b) Security	0.875% Notes due 2025
Trading Symbol	IBM 25C
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. | 0.300% Notes due 2026
Document Information [Line Items]
Title of 12(b) Security	0.300% Notes due 2026
Trading Symbol	IBM 26B
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. | 1.250% Notes due 2027
Document Information [Line Items]
Title of 12(b) Security	1.250% Notes due 2027
Trading Symbol	IBM 27B
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. | 3.375% Notes due 2027
Document Information [Line Items]
Title of 12(b) Security	3.375% Notes due 2027
Trading Symbol	IBM 27F
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. | 0.300% Notes due 2028
Document Information [Line Items]
Title of 12(b) Security	0.300% Notes due 2028
Trading Symbol	IBM 28B
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. | 1.750% Notes due 2028
Document Information [Line Items]
Title of 12(b) Security	1.750% Notes due 2028
Trading Symbol	IBM 28A
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. | 1.500% Notes due 2029
Document Information [Line Items]
Title of 12(b) Security	1.500% Notes due 2029
Trading Symbol	IBM 29
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. | 0.875% Notes due 2030
Document Information [Line Items]
Title of 12(b) Security	0.875% Notes due 2030
Trading Symbol	IBM 30A
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. | 1.750% Notes due 2031
Document Information [Line Items]
Title of 12(b) Security	1.750% Notes due 2031
Trading Symbol	IBM 31
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. | 3.625% Notes due 2031
Document Information [Line Items]
Title of 12(b) Security	3.625% Notes due 2031
Trading Symbol	IBM 31B
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. | 0.650% Notes due 2032
Document Information [Line Items]
Title of 12(b) Security	0.650% Notes due 2032
Trading Symbol	IBM 32A
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. | 1.250% Notes due 2034
Document Information [Line Items]
Title of 12(b) Security	1.250% Notes due 2034
Trading Symbol	IBM 34
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. | 3.750% Notes due 2035
Document Information [Line Items]
Title of 12(b) Security	3.750% Notes due 2035
Trading Symbol	IBM 35
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. | 4.875% Notes due 2038
Document Information [Line Items]
Title of 12(b) Security	4.875% Notes due 2038
Trading Symbol	IBM 38
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. | 1.200% Notes due 2040
Document Information [Line Items]
Title of 12(b) Security	1.200% Notes due 2040
Trading Symbol	IBM 40
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. | 4.000% Notes due 2043
Document Information [Line Items]
Title of 12(b) Security	4.000% Notes due 2043
Trading Symbol	IBM 43
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. | 7.00% Debentures due 2025
Document Information [Line Items]
Title of 12(b) Security	7.00% Debentures due 2025
Trading Symbol	IBM 25
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. | 6.22% Debentures due 2027
Document Information [Line Items]
Title of 12(b) Security	6.22% Debentures due 2027
Trading Symbol	IBM 27
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. | 6.50% Debentures due 2028
Document Information [Line Items]
Title of 12(b) Security	6.50% Debentures due 2028
Trading Symbol	IBM 28
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. | 5.875% Debentures due 2032
Document Information [Line Items]
Title of 12(b) Security	5.875% Debentures due 2032
Trading Symbol	IBM 32D
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. | 7.00% Debentures due 2045
Document Information [Line Items]
Title of 12(b) Security	7.00% Debentures due 2045
Trading Symbol	IBM 45
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. | 7.125% Debentures due 2096
Document Information [Line Items]
Title of 12(b) Security	7.125% Debentures due 2096
Trading Symbol	IBM 96
Security Exchange Name	NYSE
NYSE CHICAGO, INC. | Common Stock
Document Information [Line Items]
Title of 12(b) Security	Capital stock, par value $.20 per share
Trading Symbol	IBM
Security Exchange Name	CHX

CONSOLIDATED INCOME STATEMENT

CONSOLIDATED INCOME STATEMENT - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenue		$ 14,968	$ 14,752	$ 45,199	$ 44,479
Cost		6,548	6,729	20,087	20,446
Gross profit		8,420	8,023	25,112	24,033
Expense and other (income):
Selling, general and administrative		4,911	4,458	14,823	14,212
Research, development and engineering		1,876	1,685	5,512	5,027
Intellectual property and custom development income		(238)	(190)	(696)	(618)
Other (income) and expense		2,244	(215)	1,694	(721)
Interest expense		429	412	1,288	1,202
Total expense and other (income)		9,222	6,150	22,621	19,102
Income/(loss) from continuing operations before income taxes		(802)	1,873	2,491	4,931
Provision for/(benefit from) income taxes		(485)	159	(597)	702
Income/(loss) from continuing operations		(317)	1,714	3,088	4,229
Income/(loss) from discontinued operations, net of tax		(13)	(10)	21	(15)
Net income/(loss)	[1]	$ (330)	$ 1,704	$ 3,109	$ 4,214
Assuming dilution:
Continuing operations (in dollars per share)	[1]	$ (0.34)	$ 1.86	$ 3.30	$ 4.59
Discontinued operations (in dollars per share)	[1]	(0.01)	(0.01)	0.02	(0.02)
Total (in dollars per share)	[1]	(0.36)	1.84	3.32	4.58
Basic:
Continuing operations (in dollars per share)	[1]	(0.34)	1.88	3.36	4.65
Discontinued operations (in dollars per share)	[1]	(0.01)	(0.01)	0.02	(0.02)
Total (in dollars per share)	[1]	$ (0.36)	$ 1.87	$ 3.38	$ 4.63
Weighted-average number of common shares outstanding:
Assuming dilution (in shares)		923,577,526	923,673,300	935,425,233	920,323,692
Basic (in shares)		923,577,526	912,790,387	920,347,948	910,057,739
Services
Revenue		$ 7,453	$ 7,541	$ 22,329	$ 22,618
Cost		5,048	5,217	15,414	15,821
Sales
Revenue		7,334	7,025	22,329	21,296
Cost		1,404	1,419	4,393	4,329
Financing
Revenue		180	186	542	566
Cost		$ 95	$ 94	$ 281	$ 297
[1] 2024 includes the impact of a one-time, non-cash pension settlement charge. Refer to note 18, "Retirement-Related Benefits," for additional information.

CONSOLIDATED STATEMENT OF COMPR

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income/(loss)	[1]	$ (330)	$ 1,704	$ 3,109	$ 4,214
Other comprehensive income/(loss), before tax:
Foreign currency translation adjustments		(330)	151	(273)	180
Net changes related to available-for-sale securities:
Unrealized gains/(losses) arising during the period		0	0	1	(1)
Reclassification of (gains)/losses to net income		0	0	0	0
Total net changes related to available-for-sale securities		0	0	1	(1)
Unrealized gains/(losses) on cash flow hedges:
Unrealized gains/(losses) arising during the period		(215)	131	64	279
Reclassification of (gains)/losses to net income		(234)	202	(206)	51
Total unrealized gains/(losses) on cash flow hedges		(449)	333	(142)	330
Retirement-related benefit plans:
Prior service costs/(credits)		0	0	0	0
Net (losses)/gains arising during the period		100	102	101	104
Curtailments and settlements		2,727	2	2,731	7
Amortization of prior service costs/(credits)		(2)	(2)	(5)	(6)
Amortization of net (gains)/losses		246	128	765	389
Total retirement-related benefit plans		3,072	230	3,592	494
Other comprehensive income/(loss), before tax		2,293	714	3,178	1,003
Income tax (expense)/benefit related to items of other comprehensive income		(392)	(313)	(835)	(361)
Other comprehensive income/(loss), net of tax		1,900	402	2,343	642
Total comprehensive income		$ 1,570	$ 2,105	$ 5,452	$ 4,857
[1] 2024 includes the impact of a one-time, non-cash pension settlement charge. Refer to note 18, "Retirement-Related Benefits," for additional information.

CONSOLIDATED BALANCE SHEET

CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 13,197	$ 13,068
Restricted cash	17	21
Marketable securities	505	373
Notes and accounts receivable — trade (net of allowances of $132 in 2024 and $192 in 2023)	5,390	7,214
Short-term financing receivables:
Held for investment (net of allowances of $115 in 2024 and $129 in 2023)	5,256	6,102
Held for sale	509	692
Other accounts receivable (net of allowances of $35 in 2024 and $109 in 2023)	928	640
Inventory, at lower of average cost or net realizable value:
Finished goods	169	78
Work in process and raw materials	1,199	1,083
Total inventory	1,367	1,161
Deferred costs	966	998
Prepaid expenses and other current assets	2,408	2,639
Total current assets	30,543	32,908
Property, plant and equipment	17,994	18,122
Less: Accumulated depreciation	12,380	12,621
Property, plant and equipment — net	5,614	5,501
Operating right-of-use assets — net	3,355	3,220
Long-term financing receivables (net of allowances of $17 in 2024 and $27 in 2023)	4,931	5,766
Prepaid pension assets	7,975	7,506
Deferred costs	788	842
Deferred taxes	6,943	6,656
Goodwill	61,092	60,178
Intangible assets — net	11,090	11,036
Investments and sundry assets	2,009	1,626
Total assets	134,339	135,241
Current liabilities:
Taxes	1,584	2,270
Short-term debt	3,599	6,426
Accounts payable	3,274	4,132
Compensation and benefits	3,250	3,501
Deferred income	12,882	13,451
Operating lease liabilities	790	820
Other accrued expenses and liabilities	3,474	3,521
Total current liabilities	28,853	34,122
Long-term debt	52,980	50,121
Retirement and nonpension postretirement benefit obligations	10,366	10,808
Deferred income	3,666	3,533
Operating lease liabilities	2,757	2,568
Other liabilities	11,186	11,475
Total liabilities	109,809	112,628
IBM stockholders’ equity:
Common stock	61,013	59,643
Retained earnings	149,789	151,276
Treasury stock - at cost	(169,935)	(169,624)
Accumulated other comprehensive income/(loss)	(16,418)	(18,761)
Total IBM stockholders’ equity	24,448	22,533
Noncontrolling interests	82	80
Total equity	24,530	22,613
Total liabilities and equity	$ 134,339	$ 135,241

CONSOLIDATED BALANCE SHEET (Par

CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Notes and accounts receivable - trade, allowances	$ 132	$ 192
Short-term financing receivables, allowances	115	129
Other accounts receivable, allowances	35	109
Long-term financing receivables, allowances	$ 17	$ 27
Common stock, par value (in dollars per share)	$ 0.20	$ 0.20
Common stock, shares authorized (in shares)	4,687,500,000	4,687,500,000
Common stock, shares issued (in shares)	2,277,669,454	2,266,911,160
Treasury stock, shares (in shares)	1,353,024,302	1,351,897,514

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions		9 Months Ended
		Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net income	[1]	$ 3,109	$ 4,214
Adjustments to reconcile net income to cash provided by operating activities:
Pension settlement charge		2,725	0
Depreciation	[2]	1,644	1,568
Amortization of capitalized software and acquired intangible assets		1,910	1,676
Stock-based compensation		966	843
Net (gain)/loss on divestitures, asset sales and other	[3]	(632)	(100)
Changes in operating assets and liabilities, net of acquisitions/divestitures	[3],[4]	(607)	1,267
Net cash provided by operating activities		9,115	9,468
Cash flows from investing activities:
Payments for property, plant and equipment		(745)	(945)
Proceeds from disposition of property, plant and equipment/other		536	137
Investment in software		(496)	(417)
Acquisition of businesses, net of cash acquired		(2,748)	(4,945)
Divestitures of businesses, net of cash transferred		705	(4)
Purchases of marketable securities and other investments		(6,501)	(10,374)
Proceeds from disposition of marketable securities and other investments		5,691	6,642
Net cash provided by/(used in) investing activities		(3,558)	(9,906)
Cash flows from financing activities:
Proceeds from new debt		5,705	9,586
Payments to settle debt		(6,491)	(4,973)
Short-term borrowings/(repayments) less than 90 days — net		9	6
Common stock repurchases for tax withholdings		(539)	(338)
Financing — other		513	86
Cash dividends paid		(4,601)	(4,522)
Net cash provided by/(used in) financing activities		(5,403)	(154)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(29)	(120)
Net change in cash, cash equivalents and restricted cash		125	(713)
Cash, cash equivalents and restricted cash at January 1		13,089	7,988
Cash, cash equivalents and restricted cash at September 30		$ 13,214	$ 7,275
[1] 2024 includes the impact of a one-time, non-cash pension settlement charge. Refer to note 18, "Retirement-Related Benefits," for additional information.

CONSOLIDATED STATEMENT OF CAS_2

CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) - USD ($) $ in Billions	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Statement of Financial Position [Abstract]
Operating lease right-of-use assets amortization expense	$ 0.7	$ 0.7

CONSOLIDATED STATEMENT OF EQUIT

CONSOLIDATED STATEMENT OF EQUITY - USD ($) $ in Millions	Total		Total IBM Stockholders' Equity	Common Stock and Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income/(Loss)	Non- Controlling Interests
Balance at the beginning of the period at Dec. 31, 2022	$ 22,021		$ 21,944	$ 58,343	$ 149,825	$ (169,484)	$ (16,740)	$ 77
Net income/(loss) plus other comprehensive income/(loss):
Net income/(loss)	4,214	[1]	4,214		4,214
Other comprehensive income/(loss)	642		642				642
Total comprehensive income	4,857		4,857
Cash dividends paid - common stock	(4,522)		(4,522)		(4,522)
Common stock issued under employee plans	970		970	970
Purchases and sales of treasury stock under employee plans - net	(167)		(167)		(11)	(156)
Changes in noncontrolling interests	(2)							(2)
Balance at the end of the period at Sep. 30, 2023	23,156		23,081	59,313	149,506	(169,640)	(16,098)	75
Balance at the beginning of the period at Jun. 30, 2023	22,271		22,201	58,963	149,318	(169,581)	(16,499)	70
Net income/(loss) plus other comprehensive income/(loss):
Net income/(loss)	1,704	[1]	1,704		1,704
Other comprehensive income/(loss)	402		402				402
Total comprehensive income	2,105		2,105
Cash dividends paid - common stock	(1,515)		(1,515)		(1,515)
Common stock issued under employee plans	350		350	350
Purchases and sales of treasury stock under employee plans - net	(60)		(60)		(1)	(60)
Changes in noncontrolling interests	5							5
Balance at the end of the period at Sep. 30, 2023	23,156		23,081	59,313	149,506	(169,640)	(16,098)	75
Balance at the beginning of the period at Dec. 31, 2023	22,613		22,533	59,643	151,276	(169,624)	(18,761)	80
Net income/(loss) plus other comprehensive income/(loss):
Net income/(loss)	3,109	[1]	3,109		3,109
Other comprehensive income/(loss)	2,343		2,343				2,343
Total comprehensive income	5,452		5,452
Cash dividends paid - common stock	(4,601)		(4,601)		(4,601)
Common stock issued under employee plans	1,370		1,370	1,370
Purchases and sales of treasury stock under employee plans - net	(306)		(306)		5	(311)
Changes in noncontrolling interests	2							2
Balance at the end of the period at Sep. 30, 2024	24,530		24,448	61,013	149,789	(169,935)	(16,418)	82
Balance at the beginning of the period at Jun. 30, 2024	24,103		24,026	60,501	151,659	(169,815)	(18,319)	77
Net income/(loss) plus other comprehensive income/(loss):
Net income/(loss)	(330)	[1]	(330)		(330)
Other comprehensive income/(loss)	1,900		1,900				1,900
Total comprehensive income	1,570		1,570
Cash dividends paid - common stock	(1,542)		(1,542)		(1,542)
Common stock issued under employee plans	512		512	512
Purchases and sales of treasury stock under employee plans - net	(118)		(118)		3	(120)
Changes in noncontrolling interests	5							5
Balance at the end of the period at Sep. 30, 2024	$ 24,530		$ 24,448	$ 61,013	$ 149,789	$ (169,935)	$ (16,418)	$ 82
[1] 2024 includes the impact of a one-time, non-cash pension settlement charge. Refer to note 18, "Retirement-Related Benefits," for additional information.

CONSOLIDATED STATEMENT OF EQU_2

CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Stockholders' Equity [Abstract]
Cash dividend per common share (in dollars per share)	$ 1.67	$ 1.66	$ 5	$ 4.97
Common stock issued under employee plans (in shares)	3,948,208	2,501,236	10,758,294	8,081,507
Purchases of treasury stock under employee plans (in shares)	1,000,001	688,254	2,944,556	2,498,567
Sales of treasury stock under employee plans (in shares)	548,750	299,359	1,817,768	1,443,664

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation: The accompanying Consolidated Financial Statements and footnotes of the International Business Machines Corporation (IBM or the company) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The financial statements and footnotes are unaudited. In the opinion of the company’s management, these statements include all adjustments, which are only of a normal recurring nature, necessary to present a fair statement of the company’s results of operations, financial position and cash flows. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amount of assets, liabilities, revenue, costs, expenses and other comprehensive income/(loss) that are reported in the Consolidated Financial Statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events, historical experience, actions that the company may undertake in the future and on various other assumptions that are believed to be reasonable under the circumstances. As a result, actual results may be different from these estimates. In September 2024, the IBM Qualified Personal Pension Plan (Qualified PPP) purchased a nonparticipating single premium group annuity contract from The Prudential Insurance Company of America (the Insurer) and irrevocably transferred to the Insurer approximately $6 billion of the Qualified PPP’s defined benefit pension obligations and related plan assets, thereby reducing the company’s pension obligations and assets by the same amount. The group annuity contract was purchased using assets of the Qualified PPP and no additional funding contribution was required from the company. As a result of this transaction, the company recognized a one-time, non-cash, pre-tax pension settlement charge of $2.7 billion ($2.0 billion net of tax) in the third quarter of 2024, primarily related to the accelerated recognition of accumulated actuarial losses of the Qualified PPP. The $0.7 billion tax benefit associated with the settlement charge is reflected as an adjustment to reconcile net income/(loss) to net cash from operating activities within changes in operating assets and liabilities, net of acquisitions/divestitures in the Consolidated Statement of Cash Flows for the nine months ended September 30, 2024. Refer to note 18, “Retirement-Related Benefits,” for additional information. For the three and nine months ended September 30, 2024, the company reported a benefit from income taxes of $485 million and $597 million, respectively. The tax benefits for the three and nine months ended September 30, 2024 were driven by the transfer to the Insurer of a portion of the Qualified PPP’s defined benefit pension obligations and related plan assets, as described above. The tax benefit for the nine months ended September 30, 2024, was also driven by the resolution of certain tax audit matters in the first quarter. For the three and nine months ended September 30, 2023, the company reported a provision for income taxes of $159 million and $702 million, respectively. Noncontrolling interest amounts, included as a reduction within other (income) and expense in the Consolidated Income Statement, were not material to the consolidated results for the periods presented. The company has supplier finance programs with third-party financial institutions where the company agrees to pay the financial institutions the stated amounts of invoices from participating suppliers on the originally invoiced maturity date, which have an average term of 90 to 120 days, consistent with the company's standard payment terms. The financial institutions offer earlier payment of the invoices at the sole discretion of the supplier for a discounted amount. The company does not provide secured legal assets or other forms of guarantees under the arrangements. The company is not a party to the arrangements between its suppliers and the financial institutions. These obligations are recognized as accounts payable in the Consolidated Balance Sheet. The obligations outstanding under these programs at September 30, 2024 and December 31, 2023 were $99 million and $101 million, respectively. Interim results are not necessarily indicative of financial results for a full year. The information included in this Form 10-Q should be read in conjunction with the company’s 2023 Annual Report. Within the financial statements and tables presented, certain columns and rows may not add due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts. Certain prior-period amounts have been reclassified to conform to the change in current-period presentation. This is annotated where applicable.

Accounting Changes

Accounting Changes	9 Months Ended
	Sep. 30, 2024
Accounting Changes and Error Corrections [Abstract]
Accounting Changes	Accounting Changes: New Standards to be Implemented Income Tax Disclosures Standard/Description –Issuance date: December 2023. This guidance requires disaggregated disclosure of the tax rate reconciliation into eight categories, with further disaggregation required for items greater than a specific threshold. Additionally, the guidance requires the disclosure of income taxes paid disaggregated by federal, state and foreign jurisdictions. Effective Date and Adoption Considerations –The guidance is effective January 1, 2025 and early adoption is permitted. The company expects to adopt the guidance as of the effective date. Effect on Financial Statements or Other Significant Matters –As the guidance is a change to disclosures only, it will impact the “Taxes” note within the company's annual financial statements but will not impact the consolidated financial results. Segment Reporting Disclosures Standard/Description –Issuance date: November 2023. This guidance requires the disclosure of significant segment expenses that are regularly provided to a company's chief operating decision maker and included within each reported measure of segment profit or loss. The company must also disclose “other segment items,” which is the difference between segment revenue less significant expenses for each reported measure of segment profit or loss, and a description of its composition. This guidance also requires all segment annual disclosures to be provided on an interim basis. Effective Date and Adoption Considerations –The guidance is effective for annual periods beginning in 2024, and for interim periods beginning January 1, 2025, and is required to be applied on a retrospective basis to all prior periods presented. Early adoption is permitted. The company will adopt the guidance as of the effective date. Effect on Financial Statements or Other Significant Matters –As the guidance is a change to disclosures only, it will impact the “Segments” note within the company's quarterly and annual financial statements but will not have an impact in the consolidated financial results. Standards Implemented Disclosures of Supplier Finance Program Obligations Standard/Description– Issuance date: September 2022. This guidance requires an entity to provide certain interim and annual disclosures about the use of supplier finance programs in connection with the purchase of goods or services. Effective Date and Adoption Considerations– The guidance was effective January 1, 2023 with certain annual disclosures required beginning in 2024 and early adoption was permitted. The company adopted the guidance as of the effective date. Effect on Financial Statements or Other Significant Matters– As the guidance is a change to disclosures only, it did not have an impact in the consolidated financial results. Refer to note 1, "Basis of Presentation," for additional disclosure information.

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition: Disaggregation of Revenue The following tables provide details of revenue by major products/service offerings and revenue by geography. Revenue by Major Products/Service Offerings Three Months Ended September 30, Nine Months Ended September 30, (Dollars in millions) 2024 2023 (1) 2024 2023 (1) Hybrid Platform & Solutions $ 4,600 $ 4,187 $ 13,272 $ 12,388 Transaction Processing 1,925 1,759 5,889 5,444 Total Software $ 6,524 $ 5,947 $ 19,162 $ 17,832 Business Transformation 2,327 2,291 7,004 6,869 Application Operations 1,921 1,944 5,761 5,924 Technology Consulting 905 943 2,752 2,808 Total Consulting $ 5,152 $ 5,178 $ 15,517 $ 15,601 Hybrid Infrastructure 1,765 1,943 5,928 5,912 Infrastructure Support 1,277 1,329 3,835 4,076 Total Infrastructure $ 3,042 $ 3,272 $ 9,764 $ 9,988 Financing (2) 181 186 543 566 Other 68 170 214 491 Total revenue $ 14,968 $ 14,752 $ 45,199 $ 44,479 (1) Recast to reflect January 2024 segment changes. Refer to note 4, "Segments," for additional information. (2) Contains lease and loan financing arrangements which are not subject to the guidance on revenue from contracts with customers. Revenue by Geography Three Months Ended September 30, Nine Months Ended September 30, (Dollars in millions) 2024 2023 2024 2023 Americas $ 7,453 $ 7,686 $ 22,727 $ 22,810 Europe/Middle East/Africa 4,584 4,223 13,619 13,156 Asia Pacific 2,932 2,843 8,853 8,513 Total $ 14,968 $ 14,752 $ 45,199 $ 44,479 Remaining Performance Obligations The remaining performance obligation (RPO) disclosure provides the aggregate amount of the transaction price yet to be recognized as of the end of the reporting period and an explanation as to when the company expects to recognize these amounts in revenue. It is intended to be a statement of overall work under contract that has not yet been performed and does not include contracts in which the customer is not committed, such as certain as-a-service, governmental, term software license and services offerings. The customer is not considered committed when they are able to terminate for convenience without payment of a substantive penalty. The disclosure includes estimates of variable consideration, except when the variable consideration is a sales-based or usage-based royalty promised in exchange for a license of intellectual property. Additionally, as a practical expedient, the company does not include contracts that have an original duration of one year or less. RPO estimates are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, periodic revalidations, adjustment for revenue that has not materialized and adjustments for currency. At September 30, 2024, the aggregate amount of the transaction price allocated to RPO related to customer contracts that are unsatisfied or partially unsatisfied was approximately $57 billion. Approximately 70 percent of the amount is expected to be recognized as revenue in the subsequent two years, approximately 27 percent in the subsequent three Revenue Recognized for Performance Obligations Satisfied (or Partially Satisfied) in Prior Periods For the three and nine months ended September 30, 2024, revenue recognized for performance obligations satisfied or partially satisfied in prior periods was immaterial. Reconciliation of Contract Balances The following table provides information about notes and accounts receivable–trade, contract assets and deferred income balances. (Dollars in millions) At September 30, 2024 At December 31, 2023 Notes and accounts receivable — trade (net of allowances of $132 in 2024 and $192 in 2023) $ 5,390 $ 7,214 Contract assets (1) $ 572 $ 505 Deferred income (current) $ 12,882 $ 13,451 Deferred income (noncurrent) $ 3,666 $ 3,533 (1) Included within prepaid expenses and other current assets in the Consolidated Balance Sheet. The amount of revenue recognized during the nine months ended September 30, 2024 that was included within the deferred income balance at December 31, 2023 was $9.5 billion and was primarily related to software and services. The following table provides roll forwards of the notes and accounts receivable–trade allowance for expected credit losses for the nine months ended September 30, 2024 and the year ended December 31, 2023. (Dollars in millions) January 1, 2024 Additions / (Releases) Write-offs (1) Foreign currency and other September 30, 2024 $192 $4 $(71) $7 $132 January 1, 2023 Additions / (Releases) Write-offs (1) Foreign currency and other December 31, 2023 $233 $32 $(79) $6 $192 (1) The majority of the write-offs during the period related to receivables which had been previously reserved. The contract assets allowance for expected credit losses was not material in any of the periods presented.

Segments

Segments	9 Months Ended
	Sep. 30, 2024
Segment Reporting [Abstract]
Segments	Segments: In the first quarter of 2024, the company made changes to its organization structure and management system to better align its portfolio with the market, increase transparency and improve segment comparability to peers. These changes did not impact the company's Consolidated Financial Statements, but did impact its reportable segments. Due to the removal of certain components of segment profitability, as described below, the company also updated the title of its segment performance metric from pre-tax income from continuing operations to segment profit. The following table displays the segment updates: Reportable Segment Change Resulting Segment Implications The Weather Company asset divestiture (1) - Software Segment + Other-divested businesses Security Services realignment - Software Segment + Consulting Segment Removal of stock-based compensation and net interest allocations from segment profitability - Software Segment, Consulting Segment, Infrastructure Segment, Financing Segment (2) + Other (1) The Weather Company asset divestiture closed January 31, 2024. (2) Presentation of interest for the Financing Segment did not change. The following tables reflect the results of continuing operations of the company’s segments consistent with the management and measurement system utilized within the company and have been recast for the prior-year periods to reflect the company's segment changes described above. These results are used by the chief operating decision maker, both in evaluating the performance of, and in allocating resources to, each of the segments. SEGMENT INFORMATION (Dollars in millions) Software Consulting Infrastructure Financing Total For the three months ended September 30, 2024: Revenue $ 6,524 $ 5,152 $ 3,042 $ 181 $ 14,900 Segment profit $ 1,969 $ 559 $ 422 $ 86 $ 3,037 Revenue year-to-year change 9.7 % (0.5) % (7.0) % (2.5) % 2.2 % Segment profit year-to-year change 14.4 % (1.2) % (13.8) % (5.9) % 5.8 % Segment profit margin 30.2 % 10.9 % 13.9 % 47.5 % 20.4 % For the three months ended September 30, 2023: (1) Revenue $ 5,947 $ 5,178 $ 3,272 $ 186 $ 14,582 Segment profit $ 1,722 $ 566 $ 490 $ 91 $ 2,869 Segment profit margin 29.0 % 10.9 % 15.0 % 49.2 % 19.7 % (1) Recast to reflect January 2024 segment changes. Reconciliations to IBM as Reported: (Dollars in millions) For the three months ended September 30: 2024 2023 (1) Revenue: Total reportable segments $ 14,900 $ 14,582 Other ‒ divested businesses 0 103 Other revenue 68 66 Total revenue from continuing operations $ 14,968 $ 14,752 Pre-tax income/(loss) from continuing operations: Total reportable segment profit $ 3,037 $ 2,869 Amortization of acquired intangible assets (482) (414) Acquisition-related (charges)/income (10) (25) Non-operating retirement-related (costs)/income (2) (2,797) 12 Stock-based compensation (330) (286) Net interest excluding the Financing segment (265) (262) Workforce rebalancing charges (306) (34) Other ‒ divested businesses (4) 28 Unallocated corporate amounts and other (3) 355 (15) Total pre-tax income/(loss) from continuing operations $ (802) $ 1,873 (1) Recast to reflect January 2024 segment changes. (2) 2024 includes the impact of a one-time, non-cash pension settlement charge of $2.7 billion. Refer to note 18, "Retirement-Related Benefits," for additional information. (3) 2024 includes a gain from the sale of certain QRadar SaaS assets. Refer to note 5, "Acquisitions & Divestitures," for additional information. SEGMENT INFORMATION (Dollars in millions) Software Consulting Infrastructure Financing Total For the nine months ended September 30, 2024: Revenue $ 19,162 $ 15,517 $ 9,764 $ 543 $ 44,985 Segment profit $ 5,582 $ 1,447 $ 1,387 $ 254 $ 8,670 Revenue year-to-year change 7.5 % (0.5) % (2.3) % (4.1) % 2.3 % Segment profit year-to-year change 15.1 % (1.9) % (9.3) % (0.5) % 6.9 % Segment profit margin 29.1 % 9.3 % 14.2 % 46.9 % 19.3 % For the nine months ended September 30, 2023: (1) Revenue $ 17,832 $ 15,601 $ 9,988 $ 566 $ 43,988 Segment profit $ 4,850 $ 1,476 $ 1,529 $ 256 $ 8,110 Segment profit margin 27.2 % 9.5 % 15.3 % 45.2 % 18.4 % (1) Recast to reflect January 2024 segment changes. Reconciliations to IBM as Reported: (Dollars in millions) For the nine months ended September 30: 2024 2023 (1) Revenue: Total reportable segments $ 44,985 $ 43,988 Other ‒ divested businesses 35 298 Other revenue 178 193 Total revenue from continuing operations $ 45,199 $ 44,479 Pre-tax income from continuing operations: Total reportable segment profit $ 8,670 $ 8,110 Amortization of acquired intangible assets (1,348) (1,194) Acquisition-related (charges)/income (2) (106) (35) Non-operating retirement-related (costs)/income (3) (2,991) 16 Stock-based compensation (966) (843) Net interest excluding the Finance segment (706) (704) Workforce rebalancing changes (698) (410) Other ‒ divested businesses (4) 231 63 Unallocated corporate amounts and other (5) 404 (72) Total pre-tax income from continuing operations $ 2,491 $ 4,931 (1) Recast to reflect January 2024 segment changes. (2) 2024 includes the impact of foreign exchange derivative contracts entered into by the company prior to the acquisition of StreamSets and webMethods from Software AG. Refer to note 16, "Derivative Financial Instruments," for additional information. (3) 2024 includes the impact of a one-time, non-cash pension settlement charge of $2.7 billion. Refer to note 18, "Retirement-Related Benefits," for additional information. (4) 2024 includes a gain from the divestiture of The Weather Company assets. Refer to note 5, "Acquisitions & Divestitures," for additional information. (5) 2024 includes a gain from the sale of certain QRadar SaaS assets. Refer to note 5, "Acquisitions & Divestitures," for additional information.

Acquisitions & Divestitures

Acquisitions & Divestitures	9 Months Ended
	Sep. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Acquisitions & Divestitures	Acquisitions & Divestitures: Acquisitions Purchase price consideration for all acquisitions was paid primarily in cash. All acquisitions, unless otherwise stated, were for 100 percent of the acquired business and are reported in the Consolidated Statement of Cash Flows, net of acquired cash and cash equivalents. During the nine months ended September 30, 2024, the company completed five acquisitions within the Software segment and three acquisitions within the Consulting segment at an aggregate cost of $2,798 million. These acquisitions are expected to enhance the company’s portfolio of products and services capabilities and further advance IBM’s hybrid cloud and AI strategy. At September 30, 2024, the remaining cash to be remitted by the company related to 2024 acquisitions was not material. The following table reflects the purchase price related to these acquisitions and the resulting purchase price allocation as of September 30, 2024. (Dollars in millions) Amortization StreamSets and webMethods Other Current assets $ 364 $ 57 Property, plant and equipment/noncurrent assets 12 9 Intangible assets: Goodwill N/A 1,072 390 Client relationships 1-7 680 82 Completed technology 5-7 550 63 Trademarks 2-7 45 4 Total assets acquired $ 2,723 $ 605 Current liabilities 209 39 Noncurrent liabilities 251 31 Total liabilities assumed $ 461 $ 70 Total purchase price $ 2,262 $ 535 N/A – not applicable The goodwill generated is primarily attributable to the assembled workforce of the acquired businesses and the increased synergies expected to be achieved from the integration of the acquired businesses into the company’s various integrated solutions and services, neither of which qualifies as an amortizable intangible asset. The valuation of the assets acquired and liabilities assumed is subject to revision. If additional information becomes available, the company may further revise the purchase price allocation as soon as practical, but no later than one year from the acquisition date. StreamSets and webMethods — On July 1, 2024, the company completed the acquisition of StreamSets and webMethods from Software AG for approximately $2.3 billion (€2.13 billion) in cash. StreamSets will add new data ingestion capabilities to IBM's data platform and webMethods will bring integration platform-as-a-service (iPaaS) capabilities to IBM's automation solutions. Goodwill of $1,072 million was assigned to the Software segment. It is expected that 56 percent of the goodwill will be deductible for tax purposes. The overall weighted-average useful life of the identified amortizable intangible assets acquired was 7.0 years. The acquisition will be integrated into the Software segment. Prior to the acquisition, the company entered into foreign currency derivative contracts which expired by June 28, 2024. Refer to note 16, “Derivative Financial Instruments,” for financial impacts and additional information. Other Acquisitions — Goodwill of $216 million, $166 million and $8 million was assigned to the Consulting, Software and Infrastructure segments, respectively. It is expected that 12 percent of the goodwill will be deductible for tax purposes. The overall weighted-average useful life of the identified amortizable intangible assets acquired was 6.5 years. The identified intangible assets will be amortized on a straight-line basis over their useful lives, which approximates the pattern that the assets’ economic benefits are expected to be consumed over time. Transactions Closed in Fourth-Quarter 2024 — On October 10, 2024, the company completed an acquisition within the Software segment which is not expected to have a material impact on the company's Consolidated Financial Statements. Transactions Announced — On April 24, 2024, the company announced its intent to acquire all of the outstanding shares of HashiCorp, Inc. (HashiCorp). IBM’s and HashiCorp’s combined portfolios will help clients manage growing application and infrastructure complexity and create a comprehensive end-to-end hybrid cloud platform designed for the AI era. Under the terms of the definitive agreement, HashiCorp's shareholders on record immediately prior to the effective time on the closing date will receive $35 per share in cash, representing a total enterprise value of approximately $6.4 billion. On July 15, 2024, HashiCorp stockholders voted to approve the merger with IBM. The transaction is expected to close by the end of 2024, subject to regulatory approvals and other customary closing conditions. Upon closing, HashiCorp will be integrated into the Software segment. On September 9, 2024, the company announced its intent to acquire a global Oracle services provider. The acquisition is expected to close in the fourth quarter of 2024, subject to regulatory approvals and other customary closing conditions. Upon closing, the acquisition will be included in "Other Acquisitions" in the purchase price allocation table and will be integrated into the Consulting segment. Divestitures The Weather Company Assets — On January 31, 2024, the company completed the sale of The Weather Company assets to Zephyr Buyer, L.P., a wholly-owned subsidiary of Francisco Partners (collectively, Francisco). Under the agreement, Francisco acquired The Weather Company assets from IBM for $1,100 million inclusive of $250 million of contingent consideration, of which $200 million is contingent on Francisco’s attainment of certain investment return metrics. The assets include The Weather Company's digital consumer-facing offerings, The Weather Channel mobile and cloud-based digital properties including Weather.com, Weather Underground and Storm Radar, as well as its enterprise offerings for broadcast, media, aviation, advertising technology and data solutions for other emerging industries. Upon closing, the company received cash proceeds of $750 million and provided seller financing to Francisco in the form of a $100 million loan with a term of 7 years. The cash proceeds from the sale were primarily included in cash from investing activities within the Consolidated Statement of Cash Flows. The seller financing is a non-cash investing activity. For the nine months ended September 30, 2024, the company recognized a pre-tax gain on sale of $241 million in other (income) and expense in the Consolidated Income Statement. As discussed in note 4, “Segments,” in the first quarter of 2024, The Weather Company assets previously reported in the Software segment were moved and recast to the Sale of Assets On August 31, 2024, the company completed the sale of certain QRadar SaaS (software-as-a-service) assets including QRadar intellectual property, customer relationships and customer contracts to Palo Alto Networks (Palo Alto). Upon closing, the company received cash proceeds of $500 million from Palo Alto. Proceeds of $437 million from the sale were included in proceeds from disposition of property, plant and equipment/other within cash from investing activities and the remaining $63 million related to transition and migration services described below were included within cash from operating activities in the Consolidated Statement of Cash Flows. The company recognized a pre-tax gain on sale of $351 million at closing in other (income) and expense in the Consolidated Income Statement.

Other (Income) and Expense

Other (Income) and Expense	9 Months Ended
	Sep. 30, 2024
Other Income and Expenses [Abstract]
Other (Income) and Expense	Other (Income) and Expense : Components of other (income) and expense are as follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in millions) 2024 2023 2024 2023 Other (income) and expense: (Gains)/losses on foreign currency transactions (1) $ 470 $ (260) $ 126 $ (338) (Gains)/losses on derivative instruments (1) (428) 316 (1) 315 Interest income (170) (156) (597) (527) Net (gains)/losses from securities and investment assets (4) (5) (14) 3 Retirement-related costs/(income) (2) 2,797 (12) 2,991 (16) Other (3) (422) (97) (810) (158) Total other (income) and expense $ 2,244 $ (215) $ 1,694 $ (721) (1) The company uses financial hedging instruments to limit specific currency risks related to foreign currency-based transactions. The hedging program does not hedge 100 percent of currency exposures and defers, versus eliminates, the impact of currency. Refer to note 16, "Derivative Financial Instruments," for additional information on foreign exchange risk. (2) 2024 amounts include the impact of a one-time, non-cash, pre-tax pension settlement charge of $2.7 billion. Refer to note 18, "Retirement-Related Benefits," for additional information. (3) 2024 amounts include a pre-tax gain of $351 million from the sale of certain QRadar SaaS assets. The nine months ended September 30, 2024 also includes a pre-tax gain of $241 million from the divestiture of The Weather Company assets. Refer to note 5, "Acquisitions & Divestitures," for additional information.

Earnings Per Share of Common St

Earnings Per Share of Common Stock	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
Earnings Per Share of Common Stock	Earnings Per Share of Common Stock : The following tables provide the computation of basic and diluted earnings per share of common stock for the three and nine months ended September 30, 2024 and 2023. (Dollars in millions except per share amounts) For the three months ended September 30: 2024 2023 Number of shares on which basic earnings per share is calculated: Weighted-average shares outstanding during period 923,577,526 912,790,387 Add — Incremental shares under stock-based compensation plans — 8,531,982 Add — Incremental shares associated with contingently issuable shares — 2,350,932 Number of shares on which diluted earnings per share is calculated 923,577,526 923,673,300 Income/(loss) from continuing operations $ (317) $ 1,714 (Loss) from discontinued operations, net of tax (13) (10) Net income/(loss) on which basic earnings per share is calculated $ (330) $ 1,704 Income/(loss) from continuing operations $ (317) $ 1,714 Net income applicable to contingently issuable shares — — Income/(loss) from continuing operations on which diluted earnings per share is calculated $ (317) $ 1,714 (Loss) from discontinued operations, net of tax, on which diluted earnings per share is calculated (13) (10) Net income/(loss) on which diluted earnings per share is calculated $ (330) $ 1,704 Earnings/(loss) per share of common stock: Assuming dilution Continuing operations $ (0.34) $ 1.86 Discontinued operations (0.01) (0.01) Total $ (0.36) $ 1.84 Basic Continuing operations $ (0.34) $ 1.88 Discontinued operations (0.01) (0.01) Total $ (0.36) $ 1.87 Stock options to purchase 9,189 shares and 536,391 shares were outstanding as of September 30, 2024 and 2023, respectively, but were not included in the computation of diluted earnings per share because the exercise price of the options during the respective period was greater than the average market price of the common shares, and therefore, the effect would have been antidilutive. Due to the net loss for the three months ended September 30, 2024, otherwise dilutive potential shares of common stock under stock-based compensation plans and contingently issuable shares of 12,348,507 and 2,520,759, respectively, have been excluded from the computation of diluted earnings/(loss) per share as the effect would have been antidilutive. (Dollars in millions except per share amounts) For the nine months ended September 30: 2024 2023 Number of shares on which basic earnings per share is calculated: Weighted-average shares outstanding during period 920,347,948 910,057,739 Add — Incremental shares under stock-based compensation plans 12,829,572 8,241,752 Add — Incremental shares associated with contingently issuable shares 2,247,712 2,024,201 Number of shares on which diluted earnings per share is calculated 935,425,233 920,323,692 Income from continuing operations $ 3,088 $ 4,229 Income/(loss) from discontinued operations, net of tax 21 (15) Net income on which basic earnings per share is calculated $ 3,109 $ 4,214 Income from continuing operations $ 3,088 $ 4,229 Net income applicable to contingently issuable shares — — Income from continuing operations on which diluted earnings per share is calculated $ 3,088 $ 4,229 Income/(loss) from discontinued operations, net of tax, on which diluted earnings per share is calculated 21 (15) Net income on which diluted earnings per share is calculated $ 3,109 $ 4,214 Earnings/(loss) per share of common stock: Assuming dilution Continuing operations $ 3.30 $ 4.59 Discontinued operations 0.02 (0.02) Total $ 3.32 $ 4.58 Basic Continuing operations $ 3.36 $ 4.65 Discontinued operations 0.02 (0.02) Total $ 3.38 $ 4.63 Stock options to purchase 1,018,714 shares and 2,346,268 shares (average of first, second and third quarter share amounts) were outstanding as of September 30, 2024 and 2023, respectively, but were not included in the computation of diluted earnings per share because the exercise price of the options during the respective period was greater than the average market price of the common shares, and therefore, the effect would

Financial Assets & Liabilities

Financial Assets & Liabilities	9 Months Ended
	Sep. 30, 2024
Investments, All Other Investments [Abstract]
Financial Assets & Liabilities	Financial Assets & Liabilities: Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The company classifies certain assets and liabilities based on the following fair value hierarchy: • Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that can be accessed at the measurement date; • Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and • Level 3 – Unobservable inputs for the asset or liability. When available, the company uses unadjusted quoted market prices in active markets to measure the fair value and classifies such items as Level 1. If quoted market prices are not available, fair value is based upon internally developed models that use current market-based or independently sourced market parameters such as interest rates and currency rates. Items valued using internally generated models are classified according to the lowest level input or value driver that is significant to the valuation. The determination of fair value considers various factors including interest rate yield curves and time value underlying the financial instruments. For derivatives and debt securities, the company uses a discounted cash flow analysis using discount rates commensurate with the duration of the instrument. In determining the fair value of financial instruments, the company considers certain market valuation adjustments to the “base valuations” calculated using the methodologies described below for several parameters that market participants would consider in determining fair value: • Counterparty credit risk adjustments are applied to financial instruments, taking into account the actual credit risk of a counterparty as observed in the credit default swap market to determine the true fair value of such an instrument. • Credit risk adjustments are applied to reflect the company’s own credit risk when valuing all liabilities measured at fair value. The methodology is consistent with that applied in developing counterparty credit risk adjustments, but incorporates the company’s own credit risk as observed in the credit default swap market. The company holds investments primarily in time deposits, certificates of deposit, and U.S. government debt that are designated as available-for-sale. The primary objective of the company’s cash and debt investment portfolio is to protect principal by investing in very liquid investment securities with highly rated counterparties. The company’s standard practice is to hold all of its debt security investments classified as available-for-sale until maturity. No impairments for credit losses and no material non-credit impairments were recorded for the three and nine months ended September 30, 2024 and 2023, respectively. Certain non-financial assets such as property, plant and equipment (PP&E), operating right-of-use assets, goodwill and intangible assets are also subject to nonrecurring fair value measurements if they are deemed to be impaired. The impairment models used for non-financial assets depend on the type of asset. There were no material impairments of non-financial assets for the three and nine months ended September 30, 2024 and 2023, respectively. The following table presents the company’s financial assets and financial liabilities that are measured at fair value on a recurring basis at September 30, 2024 and December 31, 2023. Fair Value At September 30, 2024 At December 31, 2023 (Dollars in millions) Assets (6) Liabilities (7) Assets (6) Liabilities (7) Cash equivalents: (1) Time deposits and certificates of deposit (2) 2 $ 6,331 N/A $ 7,206 N/A Money market funds 1 432 N/A 494 N/A Total cash equivalents $ 6,763 N/A $ 7,699 N/A Equity investments 1 — N/A 25 N/A Debt securities-current (2)(3) 2 505 N/A 373 N/A Debt securities-noncurrent (2)(4) 2,3 107 N/A 8 N/A Derivatives designated as hedging instruments: Interest rate contracts 2 11 218 2 299 Foreign exchange contracts 2 60 276 131 275 Derivatives not designated as hedging instruments: Foreign exchange contracts (5) 2 17 6 115 19 Equity contracts 2 37 0 93 — Total $ 7,499 $ 500 $ 8,446 $ 593 (1) Included within cash and cash equivalents in the Consolidated Balance Sheet. (2) Available-for-sale debt securities with carrying values that approximate fair value. (3) Term deposits and U.S. treasury bills that are reported within marketable securities in the Consolidated Balance Sheet. (4) September 30, 2024 amount includes a $100 million seller financing loan in connection with the divestiture of The Weather Company assets reported within investments and sundry assets in the Consolidated Balance Sheet. Refer to note 5, "Acquisitions & Divestitures," for additional information. (5) December 31, 2023 asset amount includes $62 million in foreign exchange call option contracts in connection with the acquisition of StreamSets and webMethods from Software AG. There were no associated derivatives outstanding at September 30, 2024. Refer to note 16, "Derivative Financial Instruments," for additional information. (6) The gross balances of derivative assets contained within prepaid expenses and other current assets, and investments and sundry assets in the Consolidated Balance Sheet at September 30, 2024 were $84 million and $41 million, respectively, and at December 31, 2023 were $304 million and $37 million, respectively. (7) The gross balances of derivative liabilities contained within other accrued expenses and liabilities, and other liabilities in the Consolidated Balance Sheet at September 30, 2024 were $248 million and $252 million, respectively, and at December 31, 2023 were $294 million and $299 million, respectively. N/A – not applicable Financial Assets and Liabilities Not Measured at Fair Value Short-Term Receivables and Payables Short-term receivables (excluding the current portion of long-term receivables) and other investments are financial assets with carrying values that approximate fair value. Accounts payable, other accrued expenses and short-term debt (excluding the current portion of long-term debt) are financial liabilities with carrying values that approximate fair value. If measured at fair value in the financial statements, these financial instruments would be classified as Level 3 in the fair value hierarchy, except for short-term debt which would be classified as Level 2. Loans and Long-Term Receivables Fair values are based on discounted future cash flows using current interest rates offered for similar loans to clients with similar credit ratings for the same remaining maturities. At September 30, 2024 and December 31, 2023, the difference between the carrying amount and estimated fair value for loans and long-term receivables was immaterial. If measured at fair value in the financial statements, these financial instruments would be classified as Level 3 in the fair value hierarchy. Long-Term Debt Fair value of publicly traded long-term debt is based on quoted market prices for the identical liability when traded as an asset in an active market. For other long-term debt (including long-term finance lease liabilities) for which a quoted market price is not available, an expected present value technique that uses rates currently available to the company for debt with similar terms and remaining maturities is used to estimate fair value. The carrying amount of long-term debt was $52,980 million and $50,121 million, and the estimated fair value was $51,718 million and $48,284 million at September 30, 2024 and December 31, 2023, respectively. If measured at fair value in the financial statements, long-term debt (including the current portion) would be classified as Level 2 in the fair value hierarchy.

Financing Receivables

Financing Receivables	9 Months Ended
	Sep. 30, 2024
Receivables [Abstract]
Financing Receivables	Financing Receivables: Financing receivables primarily consist of client loan and installment payment receivables (loans), investment in sales-type and direct financing leases (collectively referred to as client financing receivables) and commercial financing receivables. Loans are provided primarily to clients to finance the purchase of IBM hardware, software and services. Payment terms on these financing arrangements are for terms generally up to seven years. Investment in sales-type and direct financing leases relate principally to the company’s Infrastructure products and are for terms generally up to five years. Commercial financing receivables, which consist of both held-for-investment and held-for-sale receivables, relate primarily to working capital financing for business partners and distributors of IBM products and services. Payment terms for working capital financing generally range from 30 to 60 days. 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 (Dollars in millions) Held for Held for At September 30, 2024 (Loans) Leases Investment Sale (1) Total Financing receivables, gross $ 6,286 $ 3,750 $ 675 $ 509 $ 11,220 Unearned income (480) (370) — — (850) Unguaranteed residual value — 457 — — 457 Amortized cost $ 5,806 $ 3,837 $ 675 $ 509 $ 10,827 Allowance for credit losses (75) (51) (5) — (131) Total financing receivables, net $ 5,731 $ 3,786 $ 670 $ 509 $ 10,696 Current portion $ 3,017 $ 1,570 $ 670 $ 509 $ 5,765 Noncurrent portion $ 2,714 $ 2,216 $ — $ — $ 4,931 Client Financing Receivables Client Loan and Installment Payment Receivables Investment in Sales-Type and Direct Financing Commercial Financing Receivables (Dollars in millions) Held for Held for At December 31, 2023 (Loans) Leases Investment Sale (1) Total Financing receivables, gross $ 7,060 $ 4,261 $ 1,160 $ 692 $ 13,173 Unearned income (486) (429) — — (915) Unguaranteed residual value — 458 — — 458 Amortized cost $ 6,574 $ 4,290 $ 1,160 $ 692 $ 12,716 Allowance for credit losses (87) (63) (6) — (156) Total financing receivables, net $ 6,486 $ 4,227 $ 1,155 $ 692 $ 12,560 Current portion $ 3,427 $ 1,520 $ 1,155 $ 692 $ 6,793 Noncurrent portion $ 3,059 $ 2,707 $ — $ — $ 5,766 (1) The carrying value of the receivables classified as held for sale approximates fair value. The company has a long-standing practice of taking mitigation actions, in certain circumstances, to transfer credit risk to third parties. These actions may include credit insurance, financial guarantees, nonrecourse secured borrowings, transfers of receivables recorded as true sales in accordance with accounting guidance or sales of equipment under operating lease. Sale of receivables arrangements are also utilized in the normal course of business as part of the company’s cash and liquidity management. Financing receivables pledged as collateral for secured borrowings were $289 million and $232 million at September 30, 2024 and December 31, 2023, respectively. These borrowings are included in note 12, “Borrowings.” Transfer of Financial Assets The company has an existing agreement with a third-party investor to sell IBM short-term commercial financing receivables on a revolving basis. This agreement previously allowed for sales up to $3.0 billion. In December 2023, the company amended and renewed its agreement for a one-year term, which reduced the limit to $1.3 billion in January 2024. In addition, the company enters into agreements with third-party financial institutions to sell certain of its client financing receivables, including both loan and lease receivables, for cash proceeds. There were no material client financing receivables transferred for the nine months ended September 30, 2024 and 2023. The following table presents the total amount of commercial financing receivables transferred. (Dollars in millions) For the nine months ended September 30: 2024 2023 Commercial financing receivables: Receivables transferred during the period $ 5,590 $ 6,453 Receivables uncollected at end of period (1) $ 691 $ 836 (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, 2024 and 2023. The transfer of these receivables qualified as true sales and therefore reduced financing receivables. The cash proceeds from the sales are included in cash flows from operating activities. For the nine months ended September 30, 2024 and 2023, the net loss, including fees, associated with the transfer of commercial financing receivables was $49 million and $69 million, respectively, and is included in other (income) and expense in the Consolidated Income Statement. Financing Receivables by Portfolio Segment The following tables present the amortized cost basis for client financing receivables at September 30, 2024 and December 31, 2023, 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. (Dollars in millions) At September 30, 2024: Americas EMEA Asia Pacific Total Amortized cost $ 5,731 $ 2,531 $ 1,381 $ 9,643 Allowance for credit losses: Beginning balance at January 1, 2024 $ 92 $ 48 $ 11 $ 150 Write-offs $ (1) $ (1) $ 0 $ (2) Recoveries 0 0 0 1 Additions/(releases) (8) (6) (2) (16) Other (1) (7) 0 0 (7) Ending balance at September 30, 2024 $ 75 $ 41 $ 10 $ 126 (1) Primarily represents translation adjustments. (Dollars in millions) At December 31, 2023: Americas EMEA Asia Pacific Total Amortized cost $ 6,488 $ 3,007 $ 1,368 $ 10,863 Allowance for credit losses: Beginning balance at January 1, 2023 $ 88 $ 60 $ 20 $ 168 Write-offs $ (9) $ (1) $ (8) $ (18) Recoveries 0 2 3 5 Additions/(releases) 5 (14) (4) (12) Other (1) 7 1 (1) 8 Ending balance at December 31, 2023 $ 92 $ 48 $ 11 $ 150 (1) Primarily represents translation adjustments. When determining the allowances, financing receivables are evaluated either on an individual or a collective basis. For the company’s policy on determining allowances for credit losses, refer to note A, “Significant Accounting Policies,” in the company’s 2023 Annual Report. Past Due Financing Receivables The company summarizes information about the amortized cost basis for client financing receivables, including amortized cost aged over 90 days and still accruing, billed invoices aged over 90 days and still accruing, and amortized cost not accruing. (Dollars in millions) Total Amortized Cost > 90 Days (1) Amortized Cost > 90 Days and Accruing (1) Billed Amortized Cost Not Accruing (2) At September 30, 2024: Americas $ 5,731 $ 80 $ 17 $ 1 $ 66 EMEA 2,531 32 3 3 30 Asia Pacific 1,381 8 1 0 7 Total client financing receivables $ 9,643 $ 120 $ 20 $ 4 $ 103 (Dollars in millions) Total Amortized Cost > 90 Days (1) Amortized Cost > 90 Days and Accruing (1) Billed Amortized Cost Not Accruing (2) At December 31, 2023: Americas $ 6,488 $ 111 $ 40 $ 6 $ 71 EMEA 3,007 31 1 1 31 Asia Pacific 1,368 9 1 0 8 Total client financing receivables $ 10,863 $ 151 $ 43 $ 7 $ 110 (1) At a contract level, which includes total billed and unbilled amounts for financing receivables aged greater than 90 days. (2) Of the amortized cost not accruing, there was a related allowance of $99 million and $106 million at September 30, 2024 and December 31, 2023, respectively. Financing income recognized on these receivables was immaterial for the three and nine months ended September 30, 2024 and 2023, respectively. Credit Quality Indicators The company’s credit quality indicators, which are based on rating agency data, publicly available information and information provided by customers, are reviewed periodically based on the relative level of risk. The resulting indicators are a numerical rating system that maps to Moody’s Investors Service credit ratings as shown below. The company uses information provided by Moody’s, where available, as one of many inputs in its determination of customer credit ratings. The credit quality of the customer is evaluated based on these indicators and is assigned the same risk rating whether the receivable is a lease or a loan. The following tables present the amortized cost basis for client financing receivables by credit quality indicator at September 30, 2024 and December 31, 2023, 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, 2024 and December 31, 2023 were not material. (Dollars in millions) Americas EMEA Asia Pacific At September 30, 2024: Aaa – Baa3 Ba1 – C Aaa – Baa3 Ba1 – C Aaa – Baa3 Ba1 – C Vintage year: 2024 $ 1,377 $ 481 $ 448 $ 264 $ 423 $ 97 2023 1,589 467 419 314 321 29 2022 1,106 141 479 245 287 30 2021 335 35 158 45 64 25 2020 57 26 42 27 48 13 2019 and prior 67 50 46 45 32 12 Total $ 4,531 $ 1,201 $ 1,591 $ 940 $ 1,175 $ 206 (Dollars in millions) Americas EMEA Asia Pacific At December 31, 2023: Aaa – Baa3 Ba1 – C Aaa – Baa3 Ba1 – C Aaa – Baa3 Ba1 – C Vintage year: 2023 $ 2,292 $ 1,028 $ 750 $ 520 $ 501 $ 70 2022 1,645 268 687 374 386 42 2021 655 85 284 83 110 40 2020 205 79 106 60 97 22 2019 104 23 58 38 40 8 2018 and prior 55 50 16 30 39 12 Total $ 4,955 $ 1,533 $ 1,901 $ 1,106 $ 1,174 $ 195 Modifications The company did not have any significant modifications due to clients experiencing financial difficulty during the nine months ended September 30, 2024 or for the year ended December 31, 2023.

Leases

Leases	9 Months Ended
	Sep. 30, 2024
Leases [Abstract]
Leases	Leases: Accounting for Leases as a Lessor The following table presents amounts included in the Consolidated Income Statement related to lessor activity. Three Months Ended September 30, Nine Months Ended September 30, (Dollars in millions) 2024 2023 2024 2023 Lease income — sales-type and direct financing leases: Sales-type lease selling price $ 48 $ 190 $ 528 $ 528 Less: Carrying value of underlying assets (1) (12) (42) (106) (133) Gross profit $ 37 $ 148 $ 423 $ 395 Interest income on lease receivables 67 58 206 176 Total sales-type and direct financing lease income $ 104 $ 206 $ 628 $ 571 Lease income — operating leases 13 20 47 71 Variable lease income 16 12 54 47 Total lease income $ 133 $ 238 $ 729 $ 689 (1) Excludes unguaranteed residual value.
Leases	Leases: Accounting for Leases as a Lessor The following table presents amounts included in the Consolidated Income Statement related to lessor activity. Three Months Ended September 30, Nine Months Ended September 30, (Dollars in millions) 2024 2023 2024 2023 Lease income — sales-type and direct financing leases: Sales-type lease selling price $ 48 $ 190 $ 528 $ 528 Less: Carrying value of underlying assets (1) (12) (42) (106) (133) Gross profit $ 37 $ 148 $ 423 $ 395 Interest income on lease receivables 67 58 206 176 Total sales-type and direct financing lease income $ 104 $ 206 $ 628 $ 571 Lease income — operating leases 13 20 47 71 Variable lease income 16 12 54 47 Total lease income $ 133 $ 238 $ 729 $ 689 (1) Excludes unguaranteed residual value.
Leases	Leases: Accounting for Leases as a Lessor The following table presents amounts included in the Consolidated Income Statement related to lessor activity. Three Months Ended September 30, Nine Months Ended September 30, (Dollars in millions) 2024 2023 2024 2023 Lease income — sales-type and direct financing leases: Sales-type lease selling price $ 48 $ 190 $ 528 $ 528 Less: Carrying value of underlying assets (1) (12) (42) (106) (133) Gross profit $ 37 $ 148 $ 423 $ 395 Interest income on lease receivables 67 58 206 176 Total sales-type and direct financing lease income $ 104 $ 206 $ 628 $ 571 Lease income — operating leases 13 20 47 71 Variable lease income 16 12 54 47 Total lease income $ 133 $ 238 $ 729 $ 689 (1) Excludes unguaranteed residual value.

Intangible Assets Including Goo

Intangible Assets Including Goodwill	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets Including Goodwill	Intangible Assets Including Goodwill: Intangible Assets The following tables present the company's intangible asset balances by major asset class. At September 30, 2024 (Dollars in millions) Gross Carrying Accumulated Net Carrying Amount (1) Intangible asset class: Capitalized software $ 1,450 $ (634) $ 816 Client relationships 9,793 (4,218) 5,574 Completed technology 6,258 (3,019) 3,239 Patents/trademarks 1,869 (514) 1,355 Other (2) 136 (30) 106 Total $ 19,506 $ (8,416) $ 11,090 At December 31, 2023 (Dollars in millions) Gross Carrying Accumulated Net Carrying Amount (1) Intangible asset class: Capitalized software $ 1,636 $ (762) $ 874 Client relationships 9,053 (3,500) 5,553 Completed technology 5,713 (2,510) 3,203 Patents/trademarks 1,821 (436) 1,385 Other (2) 41 (20) 22 Total $ 18,265 $ (7,229) $ 11,036 (1) Amounts as of September 30, 2024 and December 31, 2023 include an increase in net intangible asset balances of $6 million and $50 million, respectively, due to foreign currency translation. (2) Other intangibles are primarily acquired proprietary and non-proprietary technology licenses, data, business processes, methodologies and systems. The net carrying amount of intangible assets increased $53 million during the first nine months of 2024, primarily due to additions of acquired intangibles of $1,424 million, driven by the acquisition of StreamSets and webMethods in the current quarter, and additions of capitalized software, partially offset by intangible asset amortization. The aggregate intangible asset amortization expense was $705 million and $1,910 million for the three and nine months ended September 30, 2024, respectively, compared to $572 million and $1,676 million for the three and nine months ended September 30, 2023, respectively. During the nine months ended September 30, 2024, the company retired $681 million of fully amortized intangible assets, impacting both the gross carrying amount and accumulated amortization by this amount. The future amortization expense relating to intangible assets currently recorded in the Consolidated Balance Sheet was estimated to be the following at September 30, 2024: (Dollars in millions) Capitalized Acquired Total Remainder of 2024 $ 155 $ 488 $ 643 2025 383 1,923 2,306 2026 217 1,899 2,116 2027 60 1,879 1,939 2028 0 1,576 1,576 Thereafter 0 2,510 2,510 Goodwill The changes in the goodwill balances by segment for the nine months ended September 30, 2024 and for the year ended December 31, 2023 were as follows: (Dollars in millions) Balance Goodwill Purchase Price Adjustments (1) Foreign Currency Translation and Other Adjustments (2) Balance Segment 1/1/2024 Divestitures 9/30/2024 Software $ 46,447 $ 1,237 $ (44) $ — $ (59) $ 47,581 Consulting 8,883 215 (3) (1) 27 9,122 Infrastructure 4,384 8 (1) — (2) 4,390 Other (3) 464 — — (464) — — Total $ 60,178 $ 1,460 $ (48) $ (465) $ (33) $ 61,092 (Dollars in millions) Balance Goodwill Purchase Price Adjustments (1) Foreign Currency Translation and Other Adjustments (2) Balance Segment 1/1/2023 Divestitures 12/31/2023 Software (4) $ 42,712 $ 3,538 $ (17) $ — $ 214 $ 46,447 Consulting (4) 8,409 403 2 — 69 8,883 Infrastructure 4,363 12 — — 8 4,384 Other (4) 464 — — — — 464 Total $ 55,949 $ 3,953 $ (15) $ — $ 291 $ 60,178 (1) Includes measurement period adjustments related to business combinations that closed in the current and prior year. (2) Primarily driven by foreign currency translation. (3) In the first quarter of 2024, the company derecognized goodwill related to the divestiture of The Weather Company assets. Refer to note 5, "Acquisitions & Divestitures," for additional information. (4) Recast to reflect January 2024 segment changes. Refer to note 4, "Segments," for additional information. There were no goodwill impairment losses recorded during the nine months ended September 30, 2024 or the year ended December 31, 2023 and the company has no accumulated impairment losses. Purchase price adjustments recorded during the nine months ended September 30, 2024 and the year ended December 31, 2023 were related to acquisitions that were still subject to the measurement period that ends at the earlier of 12 months from the acquisition date or when information becomes available. Net purchase price adjustments recorded in the nine months ended September 30, 2024 and the year ended December 31, 2023 were not material.

Borrowings

Borrowings	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Borrowings	Borrowings: Short-Term Debt The company's total short-term debt at September 30, 2024 and December 31, 2023 was $3,599 million and $6,426 million, respectively, and primarily consisted of current maturities of long-term debt detailed in "Long-Term Debt" below. Long-Term Debt Pre-Swap Borrowing Balance Balance (Dollars in millions) Maturities 9/30/2024 12/31/2023 U.S. dollar debt (weighted-average interest rate at September 30, 2024): (1) 3.5% 2024 $ 1 $ 5,003 5.1% 2025 1,602 1,601 3.7% 2026 5,800 5,201 3.3% 2027 4,119 3,619 5.0% 2028 1,313 1,313 3.6% 2029 3,750 3,250 2.0% 2030 1,350 1,350 4.8% 2031 500 — 4.4% 2032 1,850 1,850 4.8% 2033 750 750 4.9% 2034 1,000 — 8.0% 2038 83 83 4.5% 2039 2,745 2,745 2.9% 2040 650 650 4.0% 2042 1,107 1,107 5.3% 2044 1,000 — 7.0% 2045 27 27 4.7% 2046 650 650 4.3% 2049 3,000 3,000 3.0% 2050 750 750 4.2% 2052 1,400 1,400 5.1% 2053 650 650 5.3% 2054 1,400 — 7.1% 2096 316 316 $ 35,815 $ 35,317 Euro debt (weighted-average interest rate at September 30, 2024): (1) 1.1% 2024 $ — $ 829 1.6% 2025 3,348 3,315 2.3% 2027 2,232 2,210 0.7% 2028 2,009 1,989 1.5% 2029 1,116 1,105 0.9% 2030 1,116 1,105 2.7% 2031 2,790 2,762 0.7% 2032 1,786 1,768 1.3% 2034 1,116 1,105 3.8% 2035 1,116 1,105 1.2% 2040 949 939 4.0% 2043 1,116 1,105 $ 18,693 $ 19,335 Other currencies (weighted-average interest rate at September 30, 2024 in parentheses): (1) Pound sterling (4.9%) 2038 $ 1,006 $ 955 Japanese yen (0.7%) 2026–2028 887 1,251 Other (13.8%) 2024–2027 285 241 $ 56,686 $ 57,099 Finance lease obligations (4.9%) 2024–2034 878 499 $ 57,565 $ 57,598 Less: net unamortized discount 837 838 Less: net unamortized debt issuance costs 176 154 Add: fair value adjustment (2) 19 (60) $ 56,570 $ 56,546 Less: current maturities 3,590 6,425 Total $ 52,980 $ 50,121 (1) Includes notes, debentures, bank loans and secured borrowings. (2) The portion of the company’s fixed-rate debt obligations that is hedged is reflected in the Consolidated Balance Sheet as an amount equal to the sum of the debt’s carrying value and a fair value adjustment representing changes in the fair value of the hedged debt obligations attributable to movements in benchmark interest rates. The company’s indenture governing its debt securities and its various credit facilities each contain significant covenants which obligate the company to promptly pay principal and interest, limit the aggregate amount of secured indebtedness and sale and leaseback transactions to 10 percent of the company’s consolidated net tangible assets, and restrict the company’s ability to merge or consolidate unless certain conditions are met. The credit facilities also include a covenant on the company’s consolidated net interest expense ratio, which cannot be less than 2.20 to 1.0, as well as a cross default provision with respect to other defaulted indebtedness of at least $500 million. The company is in compliance with its debt covenants and provides periodic certifications to its lenders. The failure to comply with its debt covenants could constitute an event of default with respect to the debt to which such provisions apply. If certain events of default were to occur, the principal and interest on the debt to which such event of default applied would become immediately due and payable. On February 5, 2024, IBM International Capital Pte. Ltd (IIC), a wholly owned finance subsidiary of the company, issued $5.5 billion of U.S. dollar fixed rate notes (IIC Notes) in tranches with maturities ranging from 2 to 30 years and coupons ranging from 4.6 to 5.3 percent. These notes are fully and unconditionally guaranteed by the company. IIC is a 100 percent owned finance subsidiary of IBM, as described by the SEC in Rule 13-01(a)(4)(vi) of Regulation S-X, the primary purpose of which is to borrow money to be made available for the benefit of IBM and its affiliates. The IIC Notes are fully and unconditionally guaranteed by IBM, and no other subsidiary of IBM guarantees the IIC Notes. Pre-swap annual contractual obligations of long-term debt outstanding at September 30, 2024, were as follows: (Dollars in millions) Total Remainder of 2024 $ 93 2025 5,296 2026 6,321 2027 6,501 2028 4,043 Thereafter 35,311 Total $ 57,565 Interest on Debt (Dollars in millions) For the nine months ended September 30: 2024 2023 Cost of financing $ 254 $ 255 Interest expense 1,288 1,202 Interest capitalized 10 7 Total interest paid and accrued $ 1,552 $ 1,464 Lines of Credit The company has a $2.5 billion Three-Year Credit Agreement and a $7.5 billion Five-Year Credit Agreement (the Credit Agreements) with maturity dates of June 20, 2027 and June 22, 2029, respectively . The Credit Agreements permit the company and its subsidiary borrowers to borrow up to $10 billion on a revolving basis. At September 30, 2024, there were no borrowings by the company, or its subsidiaries, under these credit facilities.

Commitments

Commitments	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments	Commitments: The company’s extended lines of credit to third-party entities include unused amounts of $1.8 billion and $1.4 billion at September 30, 2024 and December 31, 2023, respectively. A portion of these amounts was available to the company’s business partners to support their working capital needs. In addition, the company has committed to provide future financing to its clients in connection with client purchase agreements for $1.8 billion and $1.9 billion at September 30, 2024 and December 31, 2023, respectively. The company collectively evaluates the allowance for these arrangements using a provision methodology consistent with the portfolio of the commitments. Refer to note A, “Significant Accounting Policies,” in the company’s 2023 Annual Report for additional information. The allowance for these commitments is recorded in other liabilities in the Consolidated Balance Sheet and was not material at September 30, 2024. The company has applied the guidance requiring a guarantor to disclose certain types of guarantees, even if the likelihood of requiring the guarantor’s performance is remote. The following is a description of arrangements in which the company is the guarantor. The company is a party to a variety of agreements pursuant to which it may be obligated to indemnify the other party with respect to certain matters. Typically, these obligations arise in the context of contracts entered into by the company, under which the company customarily agrees to hold the party harmless against losses arising from a breach of representations and covenants related to such matters as title to the assets sold, certain intellectual property rights, specified environmental matters, third-party performance of nonfinancial contractual obligations and certain income taxes. In each of these circumstances, payment by the company is conditioned on the other party making a claim pursuant to the procedures specified in the particular contract, the procedures of which typically allow the company to challenge the other party’s claims. While indemnification provisions typically do not include a contractual maximum on the company’s payment, the company’s obligations under these agreements may be limited in terms of time and/or nature of claim, and in some instances, the company may have recourse against third parties for certain payments made by the company. It is not possible to predict the maximum potential amount of future payments under these or similar agreements due to the conditional nature of the company’s obligations and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the company under these agreements have not had a material effect on the company’s business, financial condition or results of operations. In addition, the company guarantees certain loans and financial commitments. The maximum potential future payment under these financial guarantees and the fair value of these guarantees recognized in the Consolidated Balance Sheet at September 30, 2024 and December 31, 2023 was not material. Changes in the company’s warranty liability for standard warranties, which are included in other accrued expenses and liabilities and other liabilities in the Consolidated Balance Sheet, and for extended warranty contracts, which are included in deferred income in the Consolidated Balance Sheet, are presented in the following tables. Standard Warranty Liability (Dollars in millions) 2024 2023 Balance at January 1 $ 65 $ 79 Current-period accruals 53 53 Accrual adjustments to reflect actual experience 7 (14) Charges incurred (61) (64) Balance at September 30 $ 64 $ 54 Extended Warranty Liability (Dollars in millions) 2024 2023 Balance at January 1 $ 184 $ 272 Revenue deferred for new extended warranty contracts 20 55 Amortization of deferred revenue (88) (122) Other (1) (3) (4) Balance at September 30 $ 112 $ 201 Current portion $ 72 $ 119 Noncurrent portion $ 40 $ 82 (1) Other primarily consists of foreign currency translation adjustments. The decrease in extended warranty liability is primarily due to the company’s shift to alternative maintenance and support offerings without a warranty element.

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies: As a company with a substantial employee population and with clients in more than 175 countries, IBM is involved, either as plaintiff or defendant, in a variety of ongoing claims, demands, suits, investigations, tax matters and proceedings that arise from time to time in the ordinary course of its business. The company is a leader in the information technology industry and, as such, has been and will continue to be subject to claims challenging its IP rights and associated products and offerings, including claims of copyright and patent infringement and violations of trade secrets and other IP rights. In addition, the company enforces its own IP against infringement, through license negotiations, lawsuits or otherwise. Further, given the rapidly evolving external landscape of cybersecurity, AI, privacy and data protection laws, regulations and threat actors, the company and its clients have been and will continue to be subject to actions or proceedings in various jurisdictions. Also, as is typical for companies of IBM’s scope and scale, the company is party to actions and proceedings in various jurisdictions involving a wide range of labor and employment issues (including matters related to contested employment decisions, country-specific labor and employment laws, and the company’s pension, retirement and other benefit plans), as well as actions with respect to contracts, product liability, cybersecurity, data privacy, securities, foreign operations, competition law and environmental matters. These actions may be commenced by a number of different parties, including competitors, clients, current or former employees, government and regulatory agencies, stockholders and representatives of the locations in which the company does business. Some of the actions to which the company is party may involve particularly complex technical issues, and some actions may raise novel questions under the laws of the various jurisdictions in which these matters arise. The company records a provision with respect to a claim, suit, investigation or proceeding when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Any recorded liabilities, including any changes to such liabilities for the quarter ended September 30, 2024 were not material to the Consolidated Financial Statements. In accordance with the relevant accounting guidance, the company provides disclosures of matters for which the likelihood of material loss is at least reasonably possible. In addition, the company also discloses matters based on its consideration of other matters and qualitative factors, including the experience of other companies in the industry, and investor, customer and employee relations considerations. With respect to certain of the claims, suits, investigations and proceedings discussed herein, the company believes at this time that the likelihood of any material loss is remote, given, for example, the procedural status, court rulings, and/or the strength of the company’s defenses in those matters. With respect to the remaining claims, suits, investigations and proceedings discussed in this note, except as specifically discussed herein, the company is unable to provide estimates of reasonably possible losses or range of losses, including losses in excess of amounts accrued, if any, for the following reasons. Claims, suits, investigations and proceedings are inherently uncertain, and it is not possible to predict the ultimate outcome of these matters. It is the company’s experience that damage amounts claimed in litigation against it are unreliable and unrelated to possible outcomes, and as such are not meaningful indicators of the company’s potential liability. Further, the company is unable to provide such an estimate due to a number of other factors with respect to these claims, suits, investigations and proceedings, including considerations of the procedural status of the matter in question, the presence of complex or novel legal theories, and/or the ongoing discovery and development of information important to the matters. The company reviews claims, suits, investigations and proceedings at least quarterly, and decisions are made with respect to recording or adjusting provisions and disclosing reasonably possible losses or range of losses (individually or in the aggregate), to reflect the impact and status of settlement discussions, discovery, procedural and substantive rulings, reviews by counsel and other information pertinent to a particular matter. Whether any losses, damages or remedies finally determined in any claim, suit, investigation or proceeding could reasonably have a material effect on the company’s business, financial condition, results of operations or cash flows will depend on a number of variables, including: the timing and amount of such losses or damages; the structure and type of any such remedies; the significance of the impact any such losses, damages or remedies may have in the Consolidated Financial Statements; and the unique facts and circumstances of the particular matter that may give rise to additional factors. While the company will continue to defend itself vigorously, it is possible that the company’s business, financial condition, results of operations or cash flows could be affected in any particular period by the resolution of one or more of these matters. The following is a summary of the more significant legal matters involving the company. On June 8, 2021, IBM sued GlobalFoundries U.S. Inc. (GF) in New York State Supreme Court for claims including fraud and breach of contract relating to a long-term strategic relationship between IBM and GF for researching, developing, and manufacturing advanced semiconductor chips for IBM. GF walked away from its obligations and IBM is now suing to recover amounts paid to GF, and other compensatory and punitive damages, totaling more than $1.5 billion. On September 14, 2021, the court ruled on GF’s motion to dismiss. On April 7, 2022, the Appellate Division unanimously reversed the lower court’s dismissal of IBM’s fraud claim. IBM’s claims for breaches of contract, promissory estoppel, and fraud are proceeding. On June 2, 2022, a putative class action lawsuit was filed in the United States District Court for the Southern District of New York alleging that the IBM Pension Plan miscalculated certain joint and survivor annuity pension benefits by using outdated actuarial tables in violation of the Employee Retirement Income Security Act of 1974. IBM, the Plan Administrator Committee, and the IBM Pension Plan are named as defendants. On April 4, 2024, the court dismissed the lawsuit with prejudice. On May 6, 2024, the plaintiffs appealed. As disclosed in the Kyndryl Form 10 and subsequent Kyndryl public filings, in 2017 BMC Software, Inc. (BMC) filed suit against IBM in the United States District Court for the Southern District of Texas in a dispute involving IBM’s former managed infrastructure services business. On May 30, 2022, the trial court awarded BMC $718 million in direct damages and $718 million in punitive damages, plus interest and fees. On April 30, 2024, the United States Court of Appeals for the Fifth Circuit reversed and rendered the district court’s judgment in IBM’s favor. IBM does not believe it has any material exposure relating to this litigation. No material liability or related indemnification asset has been recorded by IBM. The company is party to, or otherwise involved in, proceedings brought by U.S. federal or state environmental agencies under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), known as “Superfund,” or laws similar to CERCLA. Such statutes require potentially responsible parties to participate in remediation activities regardless of fault or ownership of sites. The company is also conducting environmental investigations, assessments or remediations at or in the vicinity of several current or former operating sites globally pursuant to permits, administrative orders or agreements with country, state or local environmental agencies, and is involved in lawsuits and claims concerning certain current or former operating sites. The company is also subject to ongoing tax examinations and governmental assessments in various jurisdictions. Along with many other U.S. companies doing business in Brazil, the company is involved in various challenges with Brazilian tax authorities regarding non-income tax assessments and non-income tax litigation matters. The total potential amount related to all these matters for all applicable years is approximately $300 million. The company believes it will prevail on these matters and that this amount is not a meaningful indicator of

Equity Activity

Equity Activity	9 Months Ended
	Sep. 30, 2024
Stockholders' Equity Note [Abstract]
Equity Activity	Equity Activity: Reclassifications and Taxes Related to Items of Other Comprehensive Income (Dollars in millions) Before Tax Tax (Expense)/ Net of Tax For the three months ended September 30, 2024: Other comprehensive income/(loss): Foreign currency translation adjustments $ (330) $ 270 $ (60) Net changes related to available-for-sale securities: Unrealized gains/(losses) arising during the period $ 0 $ 0 $ 0 Reclassification of (gains)/losses to other (income) and expense — — — Total net changes related to available-for-sale securities $ 0 $ 0 $ 0 Unrealized gains/(losses) on cash flow hedges: Unrealized gains/(losses) arising during the period $ (215) $ 57 $ (158) Reclassification of (gains)/losses to: Cost of services (5) 1 (4) Cost of sales (3) 1 (2) Cost of financing 2 0 1 SG&A expense 0 0 0 Other (income) and expense (234) 59 (175) Interest expense 8 (2) 6 Total unrealized gains/(losses) on cash flow hedges $ (449) $ 116 $ (333) Retirement-related benefit plans: (1) Prior service costs/(credits) $ — $ — $ — Net (losses)/gains arising during the period 100 (25) 75 Curtailments and settlements 2,727 (686) 2,041 Amortization of prior service costs/(credits) (2) 0 (1) Amortization of net (gains)/losses 246 (68) 178 Total retirement-related benefit plans $ 3,072 $ (779) $ 2,293 Other comprehensive income/(loss) $ 2,293 $ (392) $ 1,900 (1) These accumulated other comprehensive income (AOCI) components are included in the computation of net periodic pension cost and include the impact of a one-time, non-cash pension settlement charge of $2.7 billion ($2.0 billion net of tax) in the third quarter of 2024. Refer to note 18, “Retirement-Related Benefits,” for additional information. Reclassifications and Taxes Related to Items of Other Comprehensive Income (Dollars in millions) Before Tax Tax (Expense)/ Net of Tax For the three months ended September 30, 2023: Other comprehensive income/(loss): Foreign currency translation adjustments $ 151 $ (164) $ (13) Net changes related to available-for-sale securities: Unrealized gains/(losses) arising during the period $ 0 $ 0 $ 0 Reclassification of (gains)/losses to other (income) and expense — — — Total net changes related to available-for-sale securities $ 0 $ 0 $ 0 Unrealized gains/(losses) on cash flow hedges: Unrealized gains/(losses) arising during the period $ 131 $ (35) $ 95 Reclassification of (gains)/losses to: Cost of services 2 0 1 Cost of sales 5 (1) 4 Cost of financing 3 (1) 2 SG&A expense 4 (1) 3 Other (income) and expense 175 (44) 131 Interest expense 14 (4) 11 Total unrealized gains/(losses) on cash flow hedges $ 333 $ (85) $ 248 Retirement-related benefit plans: (1) Prior service costs/(credits) $ — $ — $ — Net (losses)/gains arising during the period 102 (26) 77 Curtailments and settlements 2 (1) 1 Amortization of prior service costs/(credits) (2) 1 (2) Amortization of net (gains)/losses 128 (37) 91 Total retirement-related benefit plans $ 230 $ (63) $ 167 Other comprehensive income/(loss) $ 714 $ (313) $ 402 (1) These AOCI components are included in the computation of net periodic pension cost. Refer to note 18, “Retirement-Related Benefits,” for additional information. (Dollars in millions) Before Tax Tax (Expense)/ Net of Tax For the nine months ended September 30, 2024: Other comprehensive income/(loss): Foreign currency translation adjustments $ (273) $ 49 $ (224) Net changes related to available-for-sale securities: Unrealized gains/(losses) arising during the period $ 1 $ 0 $ 1 Reclassification of (gains)/losses to other (income) and expense — — — Total net changes related to available-for-sale securities $ 1 $ 0 $ 1 Unrealized gains/(losses) on cash flow hedges: Unrealized gains/(losses) arising during the period $ 64 $ (18) $ 46 Reclassification of (gains)/losses to: Cost of services (19) 5 (14) Cost of sales (30) 10 (20) Cost of financing 5 (1) 4 SG&A expense (10) 3 (7) Other (income) and expense (176) 44 (132) Interest expense 24 (6) 18 Total unrealized gains/(losses) on cash flow hedges $ (142) $ 37 $ (105) Retirement-related benefit plans: (1) Prior service costs/(credits) $ — $ — $ — Net (losses)/gains arising during the period 101 (23) 78 Curtailments and settlements 2,731 (687) 2,044 Amortization of prior service costs/(credits) (5) 1 (4) Amortization of net (gains)/losses 765 (212) 554 Total retirement-related benefit plans $ 3,592 $ (921) $ 2,672 Other comprehensive income/(loss) $ 3,178 $ (835) $ 2,343 (1) These AOCI components are included in the computation of net periodic pension cost and include the impact of a one-time, non-cash pension settlement charge of $2.7 billion ($2.0 billion net of tax) in the third quarter of 2024. Refer to note 18, “Retirement-Related Benefits,” for additional information. Reclassifications and Taxes Related to Items of Other Comprehensive Income (Dollars in millions) Before Tax Tax (Expense)/ Net of Tax For the nine months ended September 30, 2023: Other comprehensive income/(loss): Foreign currency translation adjustments $ 180 $ (142) $ 39 Net changes related to available-for-sale securities: Unrealized gains/(losses) arising during the period $ (1) $ 0 $ (1) Reclassification of (gains)/losses to other (income) and expense — — — Total net changes related to available-for-sale securities $ (1) $ 0 $ (1) Unrealized gains/(losses) on cash flow hedges: Unrealized gains/(losses) arising during the period $ 279 $ (77) $ 203 Reclassification of (gains)/losses to: Cost of services 6 (1) 5 Cost of sales (12) 4 (8) Cost of financing 12 (3) 9 SG&A expense (7) 2 (4) Other (income) and expense (6) 1 (4) Interest expense 57 (14) 43 Total unrealized gains/(losses) on cash flow hedges $ 330 $ (87) $ 243 Retirement-related benefit plans: (1) Prior service costs/(credits) $ — $ 1 $ 1 Net (losses)/gains arising during the period 104 (19) 85 Curtailments and settlements 7 (2) 5 Amortization of prior service costs/(credits) (6) 2 (5) Amortization of net (gains)/losses 389 (113) 276 Total retirement-related benefit plans $ 494 $ (132) $ 361 Other comprehensive income/(loss) $ 1,003 $ (361) $ 642 (1) These AOCI components are included in the computation of net periodic pension cost. Refer to note 18, “Retirement-Related Benefits,” for additional information. Accumulated Other Comprehensive Income/(Loss) (net of tax) (Dollars in millions) Net Unrealized Foreign Currency Translation Adjustments (1) Net Change Net Unrealized Accumulated January 1, 2024 $ (106) $ (3,488) $ (15,165) $ (1) $ (18,761) Other comprehensive income before reclassifications 46 (224) 78 1 (100) Amount reclassified from accumulated other comprehensive income (2) (151) — 2,594 — 2,443 Total change for the period $ (105) $ (224) $ 2,672 $ 1 $ 2,343 September 30, 2024 $ (211) $ (3,713) $ (12,493) $ (1) $ (16,418) (1) Foreign currency translation adjustments are presented gross except for any associated hedges which are presented net of tax. (2) Net change in retirement-related benefit plans includes the impact of a one-time, non-cash, pre-tax pension settlement charge of $2.7 billion ($2.0 billion net of tax) in the third quarter of 2024. Refer to note 18, "Retirement-Related Benefits," for additional information. (Dollars in millions) Net Unrealized Foreign Currency Translation Adjustments (1) Net Change Net Unrealized Accumulated January 1, 2023 $ (135) $ (3,591) $ (13,013) $ (1) $ (16,740) Other comprehensive income before reclassifications 203 39 86 (1) 326 Amount reclassified from accumulated other comprehensive income 40 — 276 — 316 Total change for the period $ 243 $ 39 $ 361 $ (1) $ 642 September 30, 2023 $ 109 $ (3,552) $ (12,652) $ (2) $ (16,098) (1) Foreign currency translation adjustments are presented gross except for any associated hedges which are presented net of tax.

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments: The company operates in multiple functional currencies and is a significant lender and borrower in the global markets. In the normal course of business, the company is exposed to the impact of interest rate changes and foreign currency fluctuations, and to a lesser extent equity and commodity price changes and client credit risk. The company limits these risks by following established risk management policies and procedures, including the use of derivatives, and, where cost effective, financing with debt in the currencies in which assets are denominated. For interest rate exposures, derivatives are used to better align rate movements between the interest rates associated with the company’s lease and other financial assets and the interest rates associated with its financing debt. Derivatives are also used to manage the related cost of debt. For foreign currency exposures, derivatives are used to better manage the cash flow volatility arising from foreign exchange rate fluctuations. In the Consolidated Balance Sheet, the company does not offset derivative assets against liabilities in master netting arrangements nor does it offset receivables or payables recognized upon payment or receipt of cash collateral against the fair values of the related derivative instruments. At September 30, 2024 and December 31, 2023, the amount recognized in other accounts receivables for the right to reclaim cash collateral was $5 million and $11 million, respectively. At September 30, 2024, there was no amount recognized in accounts payable for the obligation to return cash collateral. At December 31, 2023, the amount recognized in accounts payable for such obligation was $7 million. The company restricts the use of cash collateral received to rehypothecation, and therefore reports it in restricted cash in the Consolidated Balance Sheet. There was no cash collateral rehypothecated at September 30, 2024. At December 31, 2023, the amount rehypothecated was $7 million. Additionally, if derivative exposures covered by a qualifying master netting agreement had been netted in the Consolidated Balance Sheet at September 30, 2024 and December 31, 2023, the total derivative asset and liability positions each would have been reduced by $94 million and $235 million, respectively. As discussed in note 5, “Acquisitions & Divestitures,” the company completed the acquisition of StreamSets and webMethods from Software AG on July 1, 2024. In December 2023, in connection with the announcement of the acquisition, the company entered into foreign exchange call option contracts (the call options) with a total notional amount of $2.3 billion (€2.13 billion) and a total premium paid of $49 million. The call options were accounted for as non-hedge derivatives and expired on June 18, 2024 with no economic value. From June 18, 2024 to June 28, 2024, the company replaced the majority of the options with foreign currency forward contracts with notional values of $1.8 billion to cover the economic exposure. For the nine months ended September 30, 2024, the company recorded a realized loss of $68 million in other (income) and expense in the Consolidated Income Statement. At December 31, 2023, the fair value of the call options was $62 million, and was included in prepaid expenses and other current assets in the Consolidated Balance Sheet. There were no associated derivatives outstanding at September 30, 2024. In its hedging programs, the company may use forward contracts, futures contracts, interest-rate swaps, cross-currency swaps, equity swaps, and options depending upon the underlying exposure. The company is not a party to leveraged derivative instruments. A brief description of the major hedging programs, categorized by underlying risk, follows. Interest Rate Risk Fixed and Variable Rate Borrowings The company issues debt in the global capital markets to fund its operations and financing business. Access to cost-effective financing can result in interest rate mismatches with the underlying assets. To manage these mismatches and to reduce overall interest cost, the company may use interest-rate swaps to convert specific fixed-rate debt issuances into variable-rate debt (i.e., fair value hedges) and to convert specific variable-rate debt issuances into fixed-rate debt (i.e., cash flow hedges). At both September 30, 2024 and December 31, 2023, the total notional amount of the company’s interest-rate swaps was $6.7 billion. The weighted-average remaining maturity of these instruments at September 30, 2024 and December 31, 2023 was approximately 4.7 years and 5.5 years, respectively. These interest-rate contracts were accounted for as fair value hedges. The company did not have any cash flow hedges relating to this program outstanding at September 30, 2024 and December 31, 2023. Forecasted Debt Issuance The company is exposed to interest rate volatility on future debt issuances. To manage this risk, the company may use instruments such as forward starting interest-rate swaps to lock in the rate on the interest payments related to the forecasted debt issuances. There were no instruments outstanding at September 30, 2024 and December 31, 2023. In connection with cash flow hedges of forecasted interest payments related to the company's borrowings, the company recorded net losses (before taxes) of $110 million and $121 million at September 30, 2024 and December 31, 2023, respectively, in AOCI. The company estimates that $14 million of the deferred net losses (before taxes) on derivatives in AOCI at September 30, 2024 will be reclassified to net income within the next 12 months, providing an offsetting economic impact against the underlying interest payments. Foreign Exchange Risk Long-Term Investments in Foreign Subsidiaries (Net Investment) A large portion of the company’s foreign currency denominated debt portfolio is designated as a hedge of net investment in major foreign subsidiaries to reduce the volatility in stockholders’ equity caused by changes in foreign currency exchange rates in the subsidiaries' functional currency with respect to the U.S. dollar. At September 30, 2024 and December 31, 2023, the carrying value of debt designated as hedging instruments was $15.1 billion and $15.9 billion, respectively. The company also uses foreign currency derivatives, such as forward contracts and long-term cross currency swaps, for this risk management purpose. In the third quarter of 2024, the company entered into long-term cross currency swaps designated as hedge of net investment instruments with a $2.2 billion notional value that the company also relates to its U.S. dollar denominated debt. The interim net interest cash settlements of these swaps will be included as cash flows from operating activities in the Consolidated Statement of Cash Flows. There were no net interest settlements during the three months ended September 30, 2024. At September 30, 2024 and December 31, 2023, the total notional amount of derivative instruments designated as net investment hedges was $6.9 billion and $4.9 billion, respectively. At September 30, 2024 and December 31, 2023, the weighted-average remaining maturity of these instruments was approximately 0.8 years and 0.1 years, respectively. In conjunction with the company entering into long-term cross currency swaps as described above, the company records unrealized gains and losses on the excluded component of net investment hedging derivatives in other comprehensive income (loss) and recognizes the excluded component on a straight-line basis over the life of the hedge in interest expense and cost of financing in the Consolidated Income Statement. Anticipated Royalties and Cost Transactions The company’s operations generate significant nonfunctional currency, third-party vendor payments and intercompany payments for royalties and goods and services among the company’s non-U.S. subsidiaries and with the company. In anticipation of these foreign currency cash flows and in view of the volatility of the currency markets, the company selectively employs foreign exchange forward contracts to manage its currency risk. These forward contracts are accounted for as cash flow hedges. At September 30, 2024, the maximum remaining length of time over which the company hedged its exposure is approximately two years. At September 30, 2024 and December 31, 2023, the total notional amount of forward contracts designated as cash flow hedges of forecasted royalty and cost transactions was $9.8 billion and $9.2 billion, respectively. At September 30, 2024 and December 31, 2023, the weighted-average remaining maturity of these instruments was approximately 0.5 years and 0.6 years, respectively. At September 30, 2024 and December 31, 2023, in connection with cash flow hedges of anticipated royalties and cost transactions, the company recorded net losses (before taxes) of $105 million and net gains (before taxes) of $40 million, respectively, in AOCI. The company estimates that $160 million of deferred net losses (before taxes) on derivatives in AOCI at September 30, 2024 will be reclassified to net income within the next 12 months, providing an offsetting economic impact against the underlying anticipated transactions. Foreign Currency Denominated Borrowings The company is exposed to exchange rate volatility on foreign currency denominated debt. To manage this risk, the company may employ forward contracts or cross-currency swaps to convert the principal, or principal and interest payments of foreign currency denominated debt, to debt denominated in the functional currency of the borrowing entity. These derivatives are accounted for as cash flow hedges. At September 30, 2024, the maximum length of time remaining over which the company hedged its exposure was approximately six years. At September 30, 2024 and December 31, 2023, the total notional amount of derivative instruments designated as cash flow hedges of foreign-currency denominated debt was $5.0 billion and $5.2 billion respectively. At September 30, 2024 and December 31, 2023, in connection with previously terminated cross-currency swaps, the company recorded net losses (before taxes) of $51 million and $68 million, respectively, in AOCI, of which $16 million of deferred net losses (before taxes) is estimated to be reclassified to net income within the next 12 months. At September 30, 2024 and December 31, 2023, in connection with forward contracts, the company has recorded net losses (before taxes) of $4 million and net gains (before taxes) of $23 million, respectively, in AOCI. Approximately $63 million of losses (before taxes) related to the initial forward points excluded from the assessment of hedge effectiveness is expected to be amortized to other (income) and expense within the next 12 months. Subsidiary Cash and Foreign Currency Asset/Liability Management The company uses its Global Treasury Centers to manage the cash of its subsidiaries. These centers principally use currency swaps to convert cash flows in a cost-effective manner. In addition, the company uses forward contracts to economically hedge, on a net basis, the foreign currency exposure of a portion of the company’s nonfunctional currency assets and liabilities. The terms of these forward and swap contracts are generally less than one year. The changes in the fair values of these contracts and of the underlying hedged exposures are generally offsetting and are recorded in other (income) and expense in the Consolidated Income Statement. At September 30, 2024 and December 31, 2023, the total notional amount of derivative instruments in economic hedges of foreign currency exposure was $5.7 billion and $6.7 billion, respectively. Equity Risk Management The company is exposed to market price changes in certain broad market indices and in the company’s own stock primarily related to certain obligations to employees. Changes in the overall value of these employee compensation obligations are recorded in SG&A expense in the Consolidated Income Statement. Although not designated as accounting hedges, the company utilizes derivatives, including equity swaps and futures, to economically hedge the exposures related to its employee compensation obligations. The derivatives are linked to the total return on certain broad market indices or the total return on the company’s common stock, and are recorded at fair value with gains or losses also reported in SG&A expense in the Consolidated Income Statement. At September 30, 2024 and December 31, 2023, the total notional amount of derivative instruments in economic hedges of these compensation obligations was $1.4 billion and $1.2 billion, respectively. Cumulative Basis Adjustments for Fair Value Hedges At September 30, 2024 and December 31, 2023, the following amounts were recorded in the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges: (Dollars in millions) September 30, December 31, Short-term debt: Carrying amount of the hedged item $ — $ (1) Cumulative hedging adjustments included in the carrying amount — assets/(liabilities) $ — $ (1) Long-term debt: Carrying amount of the hedged item $ (6,704) $ (6,629) Cumulative hedging adjustments included in the carrying amount — assets/(liabilities) (1) $ (19) $ 61 (1) Includes ($166) million and ($200) million of hedging adjustments on discontinued hedging relationships at September 30, 2024 and December 31, 2023, respectively. The Effect of Derivative Instruments in the Consolidated Income Statement The total amounts of income and expense line items presented in the Consolidated Income Statement in which the effects of fair value hedges, cash flow hedges, net investment hedges and derivatives not designated as hedging instruments are recorded and the total effect of hedge activity on these income and expense line items are as follows: (Dollars in millions) Total Gains/(Losses) of For the three months ended September 30: 2024 2023 2024 2023 Cost of services $ 5,048 $ 5,217 $ 5 $ (2) Cost of sales $ 1,404 $ 1,419 $ 3 $ (5) Cost of financing $ 95 $ 94 $ (2) $ (3) SG&A expense $ 4,911 $ 4,458 $ 83 $ (58) Other (income) and expense $ 2,244 $ (215) $ 428 $ (316) Interest expense $ 429 $ 412 $ (11) $ (15) Gain (Loss) Recognized in Consolidated Income Statement (Dollars in millions) Consolidated Recognized on Attributable to Risk Being Hedged (2) For the three months ended September 30: 2024 2023 2024 2023 Derivative instruments in fair value hedges: (1) Interest rate contracts Cost of financing $ 31 $ (33) $ (37) $ 28 Interest expense 155 (166) (185) 139 Derivative instruments not designated as hedging instruments: Foreign exchange contracts Other (income) and expense 194 (141) N/A N/A Equity contracts SG&A expense 83 (54) N/A N/A Total $ 463 $ (394) $ (222) $ 167 Gain (Loss) Recognized in Consolidated Income Statement and Other Comprehensive Income Recognized in OCI Consolidated Reclassified Amounts Excluded from Effectiveness Testing (3) (Dollars in millions) For the three months ended September 30: 2024 2023 2024 2023 2024 2023 Derivative instruments in cash flow hedges: Interest rate contracts $ — $ — Cost of financing $ (1) $ (1) $ — $ — Interest expense (3) (4) — — Foreign exchange contracts Cost of services 5 (2) — — Amount included in the assessment of effectiveness (153) 101 Cost of sales 3 (5) — — Amount excluded from the assessment of effectiveness (62) 29 Cost of financing (1) (2) — — SG&A expense 0 (4) — — Other (income) and expense 255 (164) (20) (11) Interest expense (5) (11) — — Instruments in net investment hedges: (4) Foreign exchange contracts Cost of financing — — 5 5 Amount included in the assessment of effectiveness (1,086) 652 Interest expense — — 26 26 Amount excluded from the assessment of effectiveness 10 — Total $ (1,290) $ 782 $ 254 $ (192) $ 11 $ 21 (1) The amount includes changes in clean fair values of the derivative instruments in fair value hedging relationships and the periodic accrual for coupon payments required under these derivative contracts. (2) The amount includes basis adjustments to the carrying value of the hedged item recorded during the period and amortization of basis adjustments recorded on de-designated hedging relationships during the period. (3) Amounts excluded from effectiveness testing for both net investment hedges and cash flow hedges of foreign currency debt are amortized to net income on a straight-line basis over the life of the relevant hedging instrument. (4) Instruments in net investment hedges include derivative and non-derivative instruments with the amounts recognized in OCI providing an offset to the translation of foreign subsidiaries. N/A - not applicable (Dollars in millions) Total Gains/(Losses) of For the nine months ended September 30: 2024 2023 2024 2023 Cost of services $ 15,414 $ 15,821 $ 19 $ (6) Cost of sales $ 4,393 $ 4,329 $ 30 $ 12 Cost of financing $ 281 $ 297 $ (9) $ (10) SG&A expense $ 14,823 $ 14,212 $ 168 $ 44 Other (income) and expense $ 1,694 $ (721) $ 1 $ (315) Interest expense $ 1,288 $ 1,202 $ (45) $ (46) Gain (Loss) Recognized in Consolidated Income Statement (Dollars in millions) Consolidated Recognized on Attributable to Risk Being Hedged (2) For the nine months ended September 30: 2024 2023 2024 2023 Derivative instruments in fair value hedges: (1) Interest rate contracts Cost of financing $ (5) $ (55) $ (13) $ 42 Interest expense (24) (261) (66) 196 Derivative instruments not designated as hedging instruments: Foreign exchange contracts Other (income) and expense (174) (321) N/A N/A Equity contracts SG&A expense 158 37 N/A N/A Total $ (46) $ (600) $ (79) $ 238 Gain (Loss) Recognized in Consolidated Income Statement and Other Comprehensive Income Recognized in OCI Consolidated Reclassified Amounts Excluded from Effectiveness Testing (3) (Dollars in millions) For the nine months ended September 30: 2024 2023 2024 2023 2024 2023 Derivative instruments in cash flow hedges: Interest rate contracts $ — $ — Cost of financing $ (2) $ (2) $ — $ — Interest expense (10) (11) — — Foreign exchange contracts Cost of services 19 (6) — — Amount included in the assessment of effectiveness 147 250 Cost of sales 30 12 — — Amount excluded from the assessment of effectiveness (84) 29 Cost of financing (3) (10) — — SG&A expense 10 7 — — Other (income) and expense 233 16 (57) (11) Interest expense (15) (46) — — Instruments in net investment hedges: (4) Foreign exchange contracts Cost of financing — — 14 16 Amount included in the assessment of effectiveness (205) 564 Interest expense — — 69 75 Amount excluded from the assessment of effectiveness 10 — Total $ (131) $ 843 $ 263 $ (40) $ 26 $ 81 (1) The amount includes changes in clean fair values of the derivative instruments in fair value hedging relationships and the periodic accrual for coupon payments required under these derivative contracts. (2) The amount includes basis adjustments to the carrying value of the hedged item recorded during the period and amortization of basis adjustments recorded on de-designated hedging relationships during the period. (3) Amounts excluded from effectiveness testing for both net investment hedges and cash flow hedges of foreign currency debt are amortized to net income on a straight line basis over the life of the relevant hedging instrument. (4) Instruments in net investment hedges include derivative and non-derivative instruments with the amounts recognized in OCI providing an offset to the translation of foreign subsidiaries. N/A - not applicable For the three and nine months ended September 30, 2024 and 2023, there were no material gains or losses excluded from the assessment of hedge effectiveness (for fair value or cash flow hedges), or associated with an underlying exposure that did not or was not expected to occur (for cash flow hedges); nor are there any anticipated in the normal course of business.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation: Stock-based compensation cost for stock awards and stock options is measured at grant date, based on the fair value of the award, and is recognized over the employee requisite service period. The following table presents total stock-based compensation cost included in income from continuing operations. Three Months Ended September 30, Nine Months Ended September 30, (Dollars in millions) 2024 2023 2024 2023 Cost $ 56 $ 48 $ 165 $ 141 Selling, general and administrative 167 148 511 465 Research, development and engineering 107 91 290 237 Pre-tax stock-based compensation cost $ 330 $ 286 $ 966 $ 843 Income tax benefits (131) (74) (353) (216) Total net stock-based compensation cost $ 199 $ 213 $ 613 $ 627 Pre-tax stock-based compensation cost for the three months ended September 30, 2024 increased $44 million compared to the corresponding period in the prior year due to increases in restricted stock units ($31 million), stock options ($6 million), performance share units ($4 million) and Employees Stock Purchase Plan (ESPP) ($3 million). The increases are primarily driven by stock-based compensation awards granted by the company as part of its annual cycles for executives and other employees. Pre-tax stock-based compensation cost for the nine months ended September 30, 2024 increased $123 million compared to the corresponding period in the prior year due to increases in restricted stock units ($73 million), performance share units ($25 million), stock options ($19 million) and ESPP ($7 million). The increases are primarily driven by stock-based compensation awards granted by the company as part of its annual cycles for executives and other employees.

Retirement-Related Benefits

Retirement-Related Benefits	9 Months Ended
	Sep. 30, 2024
Retirement Benefits [Abstract]
Retirement-Related Benefits	Retirement-Related Benefits: The company offers defined benefit (DB) pension plans, defined contribution plans, as well as nonpension postretirement plans primarily consisting of retiree medical benefits. IBM U.S. Retirement Plan Changes Effective January 1, 2024, IBM changed how it provides certain retirement-related benefits in the U.S. IBM is providing a new benefit to most U.S. employees under its existing Qualified PPP called the Retirement Benefit Account (RBA). This is in place of any IBM contributions to the U.S. employees' 401(k) Plus accounts. IBM U.S. regular full-time and part-time employees with at least one year of service will participate in the RBA. Each eligible employee's RBA is credited monthly with an amount equal to five percent of their eligible pay with no employee contribution required. Under the RBA, eligible employees earn six percent interest through 2026 and starting in 2027, will earn interest equal to the 10-year U.S. Treasury Yield, subject to a three percent minimum per year through 2033. Eligible employees also received a salary increase effective January 1, 2024 for the difference between the IBM 401(k) Plus contribution percent they were previously entitled to receive and the five percent RBA pay credit. Since the RBA is a component of the Qualified PPP, it is funded by the trust for the Qualified PPP along with all other benefits in the Qualified PPP. As a result of this change, inactive pension plan participants no longer represent substantially all of the participants in the Qualified PPP. As required by U.S. GAAP, this changed the amortization period of unrecognized actuarial losses from the average remaining life expectancy of inactive plan participants to the average remaining service period of active plan participants in 2024. Recognized actuarial losses for the U.S. Plans increased by approximately $100 million and $300 million for the three and nine months ended September 30, 2024, respectively, as compared to the prior-year periods, primarily driven by the change in amortization period. There was no impact to funded status, retiree benefit payments or funding requirements of the Qualified PPP due to the change in amortization period. Over the past several years, the company has taken actions to reduce the risk profile of its worldwide retirement-related plans, while at the same time increasing the funded status of the plans. As described in note 1, "Basis of Presentation," in September 2024, the Qualified PPP irrevocably transferred to the Insurer approximately $6 billion of the Qualified PPP's defined benefit pension obligations and related plan assets, thereby reducing the company's pension obligations and assets by the same amount. This transaction further de-risks the company's retirement-related plans by eliminating the potential for the company to make future cash contributions to fund this portion of pension obligations being transferred to the Insurer. After the transaction, the Qualified PPP remained in an overfunded position as of September 30, 2024. Upon issuance of the group annuity contract, the Qualified PPP's benefit obligations and administration for approximately 32,000 of the company's Plan participants and beneficiaries (the "Transferred Participants") were transferred to the Insurer. Under the group annuity contract, the Insurer has made an irrevocable commitment, and will be solely responsible, to pay the pension benefits of each Transferred Participant that are due on or after January 1, 2025. The transaction resulted in no changes to the amount of benefits payable to the Transferred Participants. The company recognized a one-time, non-cash, pre-tax pension settlement charge of $2.7 billion ($2.0 billion net of tax) in the third quarter of 2024 primarily related to the accelerated recognition of actuarial losses included within AOCI in the Consolidated Statement of Equity. As a result of this transaction, the company was required to remeasure the benefit obligations and plan assets of the Qualified PPP. The remeasurement reflects the use of the current discount rate and actual return on plan assets as of August 31, 2024, applying the practical expedient to remeasure plan assets and obligations as of the nearest calendar month-end date. The following table presents the changes in benefit obligations and plan assets of the company's retirement-related benefit plans affected by the interim remeasurements described above for the nine months ended September 30, 2024. Qualified PPP (Dollars in millions) U.S. Plan Change in benefit obligation: Benefit obligation at January 1, 2024 $ 19,854 Service cost 295 Interest cost 686 Plan participants' contributions — Actuarial losses/(gains) (1) 46 Benefits paid from trust (1,073) Direct benefit payments — Amendments/curtailments/settlements/other (2) (6,229) Benefit obligation at September 30, 2024 $ 13,578 Change in plan assets: Fair value of plan assets at January 1, 2024 $ 24,437 Actual return of plan assets (1) 1,140 Employer contributions — Plan participants' contributions — Benefits paid from trust (1,073) Direct benefit payments — Amendments/curtailments/settlements/other (2) (6,229) Fair value of plan assets at September 30, 2024 $ 18,275 Funded status at September 30, 2024 $ 4,697 Accumulated benefit obligation (3) $ 13,578 (1) Reflects a 5.00 percent discount rate at both December 31, 2023 and at the remeasurement date. (2) Primarily represents the transfer of pension obligations and related plan assets to the Insurer pursuant to a group annuity contract and lump sum payments to Transferred Participants. (3) Represents the benefit obligation assuming no future participant compensation increases. IBM Non-U.S. Retirement Plan Change In the fourth quarter of 2024, IBM Canada Ltd. (“IBMC”) purchased two separate nonparticipating single premium group annuity contracts from RBC Life Insurance Company and Brookfield Annuity Company (collectively the "Insurers") that will transfer to the Insurers approximately $1.2 billion of the IBMC IBM Retirement Plan’s (the “Plan”) defined benefit pension obligations for approximately 6,000 Plan participants and beneficiaries. The purchase of the group annuity contracts was completed October 29, 2024 and was funded directly by assets of the Plan and required no cash contribution from IBM. As a result of the transaction, the company expects to recognize a one-time, non-cash, pre-tax, pension settlement charge of approximately $0.4 billion in the fourth quarter of 2024. The actual charge will depend on finalization of the actuarial and other assumptions. The following tables provide the pre-tax cost for all retirement-related plans. Yr.-to-Yr. (Dollars in millions) Percent For the three months ended September 30: 2024 2023 Change Retirement-related plans — cost: Defined benefit pension and defined contribution plans — cost (1) $ 3,024 $ 250 nm Nonpension postretirement plans — cost 30 33 (9.4) % Total $ 3,053 $ 283 nm Yr.-to-Yr. (Dollars in millions) Percent For the nine months ended September 30: 2024 2023 Change Retirement-related plans — cost: Defined benefit pension and defined contribution plans — cost (1) $ 3,667 $ 791 nm Nonpension postretirement plans — cost 90 98 (7.8) % Total $ 3,757 $ 888 nm (1) 2024 includes the impact of a one-time, non-cash, pre-tax pension settlement charge of $2.7 billion related to the Qualified PPP, as described above. nm - not meaningful Cost/(Income) of Retirement Plans The following tables provide the components of the cost/(income) for the company’s retirement-related benefit plans. (Dollars in millions) U.S. Plans Non-U.S. Plans For the three months ended September 30: 2024 2023 2024 2023 Service cost (1) $ 98 $ — $ 43 $ 44 Interest cost (2) 228 272 271 293 Expected return on plan assets (2) (313) (382) (395) (363) Amortization of prior service costs/(credits) (2) — — 6 5 Recognized actuarial losses (2) 113 27 131 99 Curtailments and settlements (2) (3) 2,725 — 2 2 Multi-employer plans — — 3 4 Other costs/(credits) (2) — — 0 3 Total net periodic pension (income)/cost of defined benefit plans $ 2,851 $ (82) $ 62 $ 88 Cost of defined contribution plans 15 150 95 95 Total defined benefit pension and defined contribution plans cost recognized in the Consolidated Income Statement $ 2,866 $ 68 $ 158 $ 182 (1) Increase in U.S. Plans service cost in 2024 is due to the Qualified PPP plan changes effective January 1, 2024 described above. (2) These components of net periodic pension cost are included in other (income) and expense in the Consolidated Income Statement. (3) U.S. Plans in 2024 reflects the impact of a one-time, non-cash, pre-tax pension settlement charge related to the Qualified PPP, as described above. (Dollars in millions) U.S. Plans Non-U.S. Plans For the nine months ended September 30: 2024 2023 2024 2023 Service cost (1) $ 295 $ — $ 128 $ 133 Interest cost (2) 735 817 803 873 Expected return on plan assets (2) (994) (1,146) (1,168) (1,081) Amortization of prior service costs/(credits) (2) — 0 17 15 Recognized actuarial losses (2) 370 82 389 302 Curtailments and settlements (2) (3) 2,725 — 7 7 Multi-employer plans — — 10 10 Other costs/(credits) (2) — — 20 21 Total net periodic pension (income)/cost of defined benefit plans $ 3,131 $ (247) $ 206 $ 281 Cost of defined contribution plans 42 473 288 283 Total defined benefit pension and defined contribution plans cost recognized in the Consolidated Income Statement $ 3,173 $ 226 $ 494 $ 565 (1) Increase in U.S. Plans service cost in 2024 is due to the Qualified PPP plan changes effective January 1, 2024 described above. (2) These components of net periodic pension cost are included in other (income) and expense in the Consolidated Income Statement. (3) U.S. Plans in 2024 reflects the impact of a one-time, non-cash, pre-tax pension settlement charge related to the Qualified PPP, as described above. Cost of Nonpension Postretirement Plans The following tables provide the components of the cost for the company’s nonpension postretirement plans. (Dollars in millions) U.S. Plan Non-U.S. Plans For the three months ended September 30: 2024 2023 2024 2023 Service cost $ 1 $ 1 $ 1 $ 1 Interest cost (1) 27 29 10 10 Expected return on plan assets (1) — — 0 (1) Amortization of prior service costs/(credits) (1) (7) (7) 0 0 Recognized actuarial losses (1) — — 0 0 Curtailments and settlements (1) — — — — Total nonpension postretirement plans cost recognized in the Consolidated Income Statement $ 20 $ 23 $ 10 $ 10 (Dollars in millions) U.S. Plan Non-U.S. Plans For the nine months ended September 30: 2024 2023 2024 2023 Service cost $ 2 $ 3 $ 2 $ 2 Interest cost (1) 80 88 31 29 Expected return on plan assets (1) — — (1) (2) Amortization of prior service costs/(credits) (1) (22) (22) 0 0 Recognized actuarial losses (1) — — (1) (1) Curtailments and settlements (1) — — — — Total nonpension postretirement plans cost recognized in the Consolidated Income Statement $ 59 $ 69 $ 30 $ 28 (1) These components of net periodic pension cost are included in other (income) and expense in the Consolidated Income Statement. Plan Contributions The company does not anticipate any significant changes to the expected plan contributions in 2024 from the amounts disclosed in the 2023 Annual Report. The table below includes contributions to the following plans: (Dollars in millions) Plan Contributions For the nine months ended September 30: 2024 2023 U.S. nonpension postretirement benefit plan $ 155 $ 188 Non-U.S. DB and multi-employer plans (1) 53 45 Total plan contributions $ 208 $ 233 (1) Amounts reported net of refunds. The U.S. nonpension postretirement benefit plan contributions in the table above were funded with U.S. Treasury Securities. Additionally, during the nine months ended September 30, 2024 and 2023, the company contributed $600 million and $537 million of U.S. Treasury securities, respectively, to the Active Medical Trust.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events : On October 30, 2024, the company announced that the Board of Directors approved a quarterly dividend of $1.67 per common share. The dividend is payable December 10, 2024 to stockholders of record on November 12, 2024.

Accounting Changes (Policies)

Accounting Changes (Policies)	9 Months Ended
	Sep. 30, 2024
Accounting Changes and Error Corrections [Abstract]
Basis of Presentation	The accompanying Consolidated Financial Statements and footnotes of the International Business Machines Corporation (IBM or the company) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The financial statements and footnotes are unaudited. In the opinion of the company’s management, these statements include all adjustments, which are only of a normal recurring nature, necessary to present a fair statement of the company’s results of operations, financial position and cash flows. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amount of assets, liabilities, revenue, costs, expenses and other comprehensive income/(loss) that are reported in the Consolidated Financial Statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events, historical experience, actions that the company may undertake in the future and on various other assumptions that are believed to be reasonable under the circumstances. As a result, actual results may be different from these estimates. In September 2024, the IBM Qualified Personal Pension Plan (Qualified PPP) purchased a nonparticipating single premium group annuity contract from The Prudential Insurance Company of America (the Insurer) and irrevocably transferred to the Insurer approximately $6 billion of the Qualified PPP’s defined benefit pension obligations and related plan assets, thereby reducing the company’s pension obligations and assets by the same amount. The group annuity contract was purchased using assets of the Qualified PPP and no additional funding contribution was required from the company. As a result of this transaction, the company recognized a one-time, non-cash, pre-tax pension settlement charge of $2.7 billion ($2.0 billion net of tax) in the third quarter of 2024, primarily related to the accelerated recognition of accumulated actuarial losses of the Qualified PPP. The $0.7 billion tax benefit associated with the settlement charge is reflected as an adjustment to reconcile net income/(loss) to net cash from operating activities within changes in operating assets and liabilities, net of acquisitions/divestitures in the Consolidated Statement of Cash Flows for the nine months ended September 30, 2024. Refer to note 18, “Retirement-Related Benefits,” for additional information. For the three and nine months ended September 30, 2024, the company reported a benefit from income taxes of $485 million and $597 million, respectively. The tax benefits for the three and nine months ended September 30, 2024 were driven by the transfer to the Insurer of a portion of the Qualified PPP’s defined benefit pension obligations and related plan assets, as described above. The tax benefit for the nine months ended September 30, 2024, was also driven by the resolution of certain tax audit matters in the first quarter. For the three and nine months ended September 30, 2023, the company reported a provision for income taxes of $159 million and $702 million, respectively. Noncontrolling interest amounts, included as a reduction within other (income) and expense in the Consolidated Income Statement, were not material to the consolidated results for the periods presented. The company has supplier finance programs with third-party financial institutions where the company agrees to pay the financial institutions the stated amounts of invoices from participating suppliers on the originally invoiced maturity date, which have an average term of 90 to 120 days, consistent with the company's standard payment terms. The financial institutions offer earlier payment of the invoices at the sole discretion of the supplier for a discounted amount. The company does not provide secured legal assets or other forms of guarantees under the arrangements. The company is not a party to the arrangements between its suppliers and the financial institutions. These obligations are recognized as accounts payable in the Consolidated Balance Sheet. The obligations outstanding under these programs at September 30, 2024 and December 31, 2023 were $99 million and $101 million, respectively. Interim results are not necessarily indicative of financial results for a full year. The information included in this Form 10-Q should be read in conjunction with the company’s 2023 Annual Report. Within the financial statements and tables presented, certain columns and rows may not add due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts. Certain prior-period amounts have been reclassified to conform to the change in current-period presentation. This is annotated where applicable.
New Standards to be Implemented and Standards Implemented	New Standards to be Implemented Income Tax Disclosures Standard/Description –Issuance date: December 2023. This guidance requires disaggregated disclosure of the tax rate reconciliation into eight categories, with further disaggregation required for items greater than a specific threshold. Additionally, the guidance requires the disclosure of income taxes paid disaggregated by federal, state and foreign jurisdictions. Effective Date and Adoption Considerations –The guidance is effective January 1, 2025 and early adoption is permitted. The company expects to adopt the guidance as of the effective date. Effect on Financial Statements or Other Significant Matters –As the guidance is a change to disclosures only, it will impact the “Taxes” note within the company's annual financial statements but will not impact the consolidated financial results. Segment Reporting Disclosures Standard/Description –Issuance date: November 2023. This guidance requires the disclosure of significant segment expenses that are regularly provided to a company's chief operating decision maker and included within each reported measure of segment profit or loss. The company must also disclose “other segment items,” which is the difference between segment revenue less significant expenses for each reported measure of segment profit or loss, and a description of its composition. This guidance also requires all segment annual disclosures to be provided on an interim basis. Effective Date and Adoption Considerations –The guidance is effective for annual periods beginning in 2024, and for interim periods beginning January 1, 2025, and is required to be applied on a retrospective basis to all prior periods presented. Early adoption is permitted. The company will adopt the guidance as of the effective date. Effect on Financial Statements or Other Significant Matters –As the guidance is a change to disclosures only, it will impact the “Segments” note within the company's quarterly and annual financial statements but will not have an impact in the consolidated financial results. Standards Implemented Disclosures of Supplier Finance Program Obligations Standard/Description– Issuance date: September 2022. This guidance requires an entity to provide certain interim and annual disclosures about the use of supplier finance programs in connection with the purchase of goods or services. Effective Date and Adoption Considerations– The guidance was effective January 1, 2023 with certain annual disclosures required beginning in 2024 and early adoption was permitted. The company adopted the guidance as of the effective date. Effect on Financial Statements or Other Significant Matters– As the guidance is a change to disclosures only, it did not have an impact in the consolidated financial results. Refer to note 1, "Basis of Presentation," for additional disclosure information.
Remaining Performance Obligations	Remaining Performance Obligations
Segments	In the first quarter of 2024, the company made changes to its organization structure and management system to better align its portfolio with the market, increase transparency and improve segment comparability to peers. These changes did not impact the company's Consolidated Financial Statements, but did impact its reportable segments. Due to the removal of certain components of segment profitability, as described below, the company also updated the title of its segment performance metric from pre-tax income from continuing operations to segment profit. The following table displays the segment updates: Reportable Segment Change Resulting Segment Implications The Weather Company asset divestiture (1) - Software Segment + Other-divested businesses Security Services realignment - Software Segment + Consulting Segment Removal of stock-based compensation and net interest allocations from segment profitability - Software Segment, Consulting Segment, Infrastructure Segment, Financing Segment (2) + Other (1) The Weather Company asset divestiture closed January 31, 2024. (2) Presentation of interest for the Financing Segment did not change. The following tables reflect the results of continuing operations of the company’s segments consistent with the management and measurement system utilized within the company and have been recast for the prior-year periods to reflect the company's segment changes described above. These results are used by the chief operating decision maker, both in evaluating the performance of, and in allocating resources to, each of the segments.
Intangible Assets	The identified intangible assets will be amortized on a straight-line basis over their useful lives, which approximates the pattern that the assets’ economic benefits are expected to be consumed over time.
Fair Value Measurements	Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The company classifies certain assets and liabilities based on the following fair value hierarchy: • Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that can be accessed at the measurement date; • Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and • Level 3 – Unobservable inputs for the asset or liability. When available, the company uses unadjusted quoted market prices in active markets to measure the fair value and classifies such items as Level 1. If quoted market prices are not available, fair value is based upon internally developed models that use current market-based or independently sourced market parameters such as interest rates and currency rates. Items valued using internally generated models are classified according to the lowest level input or value driver that is significant to the valuation. The determination of fair value considers various factors including interest rate yield curves and time value underlying the financial instruments. For derivatives and debt securities, the company uses a discounted cash flow analysis using discount rates commensurate with the duration of the instrument. In determining the fair value of financial instruments, the company considers certain market valuation adjustments to the “base valuations” calculated using the methodologies described below for several parameters that market participants would consider in determining fair value: • Counterparty credit risk adjustments are applied to financial instruments, taking into account the actual credit risk of a counterparty as observed in the credit default swap market to determine the true fair value of such an instrument. • Credit risk adjustments are applied to reflect the company’s own credit risk when valuing all liabilities measured at fair value. The methodology is consistent with that applied in developing counterparty credit risk adjustments, but incorporates the company’s own credit risk as observed in the credit default swap market. The company holds investments primarily in time deposits, certificates of deposit, and U.S. government debt that are designated as available-for-sale. The primary objective of the company’s cash and debt investment portfolio is to protect principal by investing in very liquid investment securities with highly rated counterparties. The company’s standard practice is to hold all of its debt security investments classified as available-for-sale until maturity. No impairments for credit losses and no material non-credit impairments were recorded for the three and nine months ended September 30, 2024 and 2023, respectively. Certain non-financial assets such as property, plant and equipment (PP&E), operating right-of-use assets, goodwill and intangible assets are also subject to nonrecurring fair value measurements if they are deemed to be impaired. The impairment models used for non-financial assets depend on the type of asset. There were no material impairments of non-financial assets for the three and nine months ended September 30, 2024 and 2023, respectively.
Financial Assets and Liabilities Not Measured at Fair Value	Financial Assets and Liabilities Not Measured at Fair Value Short-Term Receivables and Payables Short-term receivables (excluding the current portion of long-term receivables) and other investments are financial assets with carrying values that approximate fair value. Accounts payable, other accrued expenses and short-term debt (excluding the current portion of long-term debt) are financial liabilities with carrying values that approximate fair value. If measured at fair value in the financial statements, these financial instruments would be classified as Level 3 in the fair value hierarchy, except for short-term debt which would be classified as Level 2. Loans and Long-Term Receivables Fair values are based on discounted future cash flows using current interest rates offered for similar loans to clients with similar credit ratings for the same remaining maturities. At September 30, 2024 and December 31, 2023, the difference between the carrying amount and estimated fair value for loans and long-term receivables was immaterial. If measured at fair value in the financial statements, these financial instruments would be classified as Level 3 in the fair value hierarchy. Long-Term Debt Fair value of publicly traded long-term debt is based on quoted market prices for the identical liability when traded as an asset in an active market. For other long-term debt (including long-term finance lease liabilities) for which a quoted market price is not available, an expected present value technique that uses rates currently available to the company for debt with similar terms and remaining maturities is used to estimate fair value. The carrying amount of long-term debt was $52,980 million and $50,121 million, and the estimated fair value was $51,718 million and $48,284 million at September 30, 2024 and December 31, 2023, respectively. If measured at fair value in the financial statements, long-term debt (including the current portion) would be classified as Level 2 in the fair value hierarchy.
Financing Receivables	Financing receivables primarily consist of client loan and installment payment receivables (loans), investment in sales-type and direct financing leases (collectively referred to as client financing receivables) and commercial financing receivables. Loans are provided primarily to clients to finance the purchase of IBM hardware, software and services. Payment terms on these financing arrangements are for terms generally up to seven years. Investment in sales-type and direct financing leases relate principally to the company’s Infrastructure products and are for terms generally up to five years. Commercial financing receivables, which consist of both held-for-investment and held-for-sale receivables, relate primarily to working capital financing for business partners and distributors of IBM products and services. Payment terms for working capital financing generally range from 30 to 60 days. When determining the allowances, financing receivables are evaluated either on an individual or a collective basis. For the company’s policy on determining allowances for credit losses, refer to note A, “Significant Accounting Policies,” in the company’s 2023 Annual Report.
Commitments	The company collectively evaluates the allowance for these arrangements using a provision methodology consistent with the portfolio of the commitments. Refer to note A, “Significant Accounting Policies,” in the company’s 2023 Annual Report for additional information.The company has applied the guidance requiring a guarantor to disclose certain types of guarantees, even if the likelihood of requiring the guarantor’s performance is remote.
Contingencies	The company records a provision with respect to a claim, suit, investigation or proceeding when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Any recorded liabilities, including any changes to such liabilities for the quarter ended September 30, 2024 were not material to the Consolidated Financial Statements. In accordance with the relevant accounting guidance, the company provides disclosures of matters for which the likelihood of material loss is at least reasonably possible. In addition, the company also discloses matters based on its consideration of other matters and qualitative factors, including the experience of other companies in the industry, and investor, customer and employee relations considerations. With respect to certain of the claims, suits, investigations and proceedings discussed herein, the company believes at this time that the likelihood of any material loss is remote, given, for example, the procedural status, court rulings, and/or the strength of the company’s defenses in those matters. With respect to the remaining claims, suits, investigations and proceedings discussed in this note, except as specifically discussed herein, the company is unable to provide estimates of reasonably possible losses or range of losses, including losses in excess of amounts accrued, if any, for the following reasons. Claims, suits, investigations and proceedings are inherently uncertain, and it is not possible to predict the ultimate outcome of these matters. It is the company’s experience that damage amounts claimed in litigation against it are unreliable and unrelated to possible outcomes, and as such are not meaningful indicators of the company’s potential liability. Further, the company is unable to provide such an estimate due to a number of other factors with respect to these claims, suits, investigations and proceedings, including considerations of the procedural status of the matter in question, the presence of complex or novel legal theories, and/or the ongoing discovery and development of information important to the matters. The company reviews claims, suits, investigations and proceedings at least quarterly, and decisions are made with respect to recording or adjusting provisions and disclosing reasonably possible losses or range of losses (individually or in the aggregate), to reflect the impact and status of settlement discussions, discovery, procedural and substantive rulings, reviews by counsel and other information pertinent to a particular matter.
Derivative Financial Instruments	The company operates in multiple functional currencies and is a significant lender and borrower in the global markets. In the normal course of business, the company is exposed to the impact of interest rate changes and foreign currency fluctuations, and to a lesser extent equity and commodity price changes and client credit risk. The company limits these risks by following established risk management policies and procedures, including the use of derivatives, and, where cost effective, financing with debt in the currencies in which assets are denominated. For interest rate exposures, derivatives are used to better align rate movements between the interest rates associated with the company’s lease and other financial assets and the interest rates associated with its financing debt. Derivatives are also used to manage the related cost of debt. For foreign currency exposures, derivatives are used to better manage the cash flow volatility arising from foreign exchange rate fluctuations.
Offsetting Derivatives	In the Consolidated Balance Sheet, the company does not offset derivative assets against liabilities in master netting arrangements nor does it offset receivables or payables recognized upon payment or receipt of cash collateral against the fair values of the related derivative instruments.The company restricts the use of cash collateral received to rehypothecation, and therefore reports it in restricted cash in the Consolidated Balance Sheet.
Derivatives, Methods of Accounting, Hedge Effectiveness	Amounts excluded from effectiveness testing for both net investment hedges and cash flow hedges of foreign currency debt are amortized to net income on a straight-line basis over the life of the relevant hedging instrument.
Stock-Based Compensation	Stock-based compensation cost for stock awards and stock options is measured at grant date, based on the fair value of the award, and is recognized over the employee requisite service period.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
Schedule of disaggregation of revenue	The following tables provide details of revenue by major products/service offerings and revenue by geography. Revenue by Major Products/Service Offerings Three Months Ended September 30, Nine Months Ended September 30, (Dollars in millions) 2024 2023 (1) 2024 2023 (1) Hybrid Platform & Solutions $ 4,600 $ 4,187 $ 13,272 $ 12,388 Transaction Processing 1,925 1,759 5,889 5,444 Total Software $ 6,524 $ 5,947 $ 19,162 $ 17,832 Business Transformation 2,327 2,291 7,004 6,869 Application Operations 1,921 1,944 5,761 5,924 Technology Consulting 905 943 2,752 2,808 Total Consulting $ 5,152 $ 5,178 $ 15,517 $ 15,601 Hybrid Infrastructure 1,765 1,943 5,928 5,912 Infrastructure Support 1,277 1,329 3,835 4,076 Total Infrastructure $ 3,042 $ 3,272 $ 9,764 $ 9,988 Financing (2) 181 186 543 566 Other 68 170 214 491 Total revenue $ 14,968 $ 14,752 $ 45,199 $ 44,479 (1) Recast to reflect January 2024 segment changes. Refer to note 4, "Segments," for additional information. (2) Contains lease and loan financing arrangements which are not subject to the guidance on revenue from contracts with customers.
Schedule of disaggregation of revenue by geography	Three Months Ended September 30, Nine Months Ended September 30, (Dollars in millions) 2024 2023 2024 2023 Americas $ 7,453 $ 7,686 $ 22,727 $ 22,810 Europe/Middle East/Africa 4,584 4,223 13,619 13,156 Asia Pacific 2,932 2,843 8,853 8,513 Total $ 14,968 $ 14,752 $ 45,199 $ 44,479
Schedule of reconciliation of contract balances	The following table provides information about notes and accounts receivable–trade, contract assets and deferred income balances. (Dollars in millions) At September 30, 2024 At December 31, 2023 Notes and accounts receivable — trade (net of allowances of $132 in 2024 and $192 in 2023) $ 5,390 $ 7,214 Contract assets (1) $ 572 $ 505 Deferred income (current) $ 12,882 $ 13,451 Deferred income (noncurrent) $ 3,666 $ 3,533 (1) Included within prepaid expenses and other current assets in the Consolidated Balance Sheet.
Schedule of notes and accounts receivable - trade allowance for credit losses	The following table provides roll forwards of the notes and accounts receivable–trade allowance for expected credit losses for the nine months ended September 30, 2024 and the year ended December 31, 2023. (Dollars in millions) January 1, 2024 Additions / (Releases) Write-offs (1) Foreign currency and other September 30, 2024 $192 $4 $(71) $7 $132 January 1, 2023 Additions / (Releases) Write-offs (1) Foreign currency and other December 31, 2023 $233 $32 $(79) $6 $192 (1) The majority of the write-offs during the period related to receivables which had been previously reserved.

Segments (Tables)

Segments (Tables)	9 Months Ended
	Sep. 30, 2024
Segment Reporting [Abstract]
Schedule of segment updates	The following table displays the segment updates: Reportable Segment Change Resulting Segment Implications The Weather Company asset divestiture (1) - Software Segment + Other-divested businesses Security Services realignment - Software Segment + Consulting Segment Removal of stock-based compensation and net interest allocations from segment profitability - Software Segment, Consulting Segment, Infrastructure Segment, Financing Segment (2) + Other (1) The Weather Company asset divestiture closed January 31, 2024. (2) Presentation of interest for the Financing Segment did not change.
Revenue and pre-tax income by segment	The following tables reflect the results of continuing operations of the company’s segments consistent with the management and measurement system utilized within the company and have been recast for the prior-year periods to reflect the company's segment changes described above. These results are used by the chief operating decision maker, both in evaluating the performance of, and in allocating resources to, each of the segments. (Dollars in millions) Software Consulting Infrastructure Financing Total For the three months ended September 30, 2024: Revenue $ 6,524 $ 5,152 $ 3,042 $ 181 $ 14,900 Segment profit $ 1,969 $ 559 $ 422 $ 86 $ 3,037 Revenue year-to-year change 9.7 % (0.5) % (7.0) % (2.5) % 2.2 % Segment profit year-to-year change 14.4 % (1.2) % (13.8) % (5.9) % 5.8 % Segment profit margin 30.2 % 10.9 % 13.9 % 47.5 % 20.4 % For the three months ended September 30, 2023: (1) Revenue $ 5,947 $ 5,178 $ 3,272 $ 186 $ 14,582 Segment profit $ 1,722 $ 566 $ 490 $ 91 $ 2,869 Segment profit margin 29.0 % 10.9 % 15.0 % 49.2 % 19.7 % (1) Recast to reflect January 2024 segment changes. (Dollars in millions) Software Consulting Infrastructure Financing Total For the nine months ended September 30, 2024: Revenue $ 19,162 $ 15,517 $ 9,764 $ 543 $ 44,985 Segment profit $ 5,582 $ 1,447 $ 1,387 $ 254 $ 8,670 Revenue year-to-year change 7.5 % (0.5) % (2.3) % (4.1) % 2.3 % Segment profit year-to-year change 15.1 % (1.9) % (9.3) % (0.5) % 6.9 % Segment profit margin 29.1 % 9.3 % 14.2 % 46.9 % 19.3 % For the nine months ended September 30, 2023: (1) Revenue $ 17,832 $ 15,601 $ 9,988 $ 566 $ 43,988 Segment profit $ 4,850 $ 1,476 $ 1,529 $ 256 $ 8,110 Segment profit margin 27.2 % 9.5 % 15.3 % 45.2 % 18.4 % (1) Recast to reflect January 2024 segment changes.
Reconciliation of segment revenue and pre-tax income to IBM as reported	Reconciliations to IBM as Reported: (Dollars in millions) For the three months ended September 30: 2024 2023 (1) Revenue: Total reportable segments $ 14,900 $ 14,582 Other ‒ divested businesses 0 103 Other revenue 68 66 Total revenue from continuing operations $ 14,968 $ 14,752 Pre-tax income/(loss) from continuing operations: Total reportable segment profit $ 3,037 $ 2,869 Amortization of acquired intangible assets (482) (414) Acquisition-related (charges)/income (10) (25) Non-operating retirement-related (costs)/income (2) (2,797) 12 Stock-based compensation (330) (286) Net interest excluding the Financing segment (265) (262) Workforce rebalancing charges (306) (34) Other ‒ divested businesses (4) 28 Unallocated corporate amounts and other (3) 355 (15) Total pre-tax income/(loss) from continuing operations $ (802) $ 1,873 (1) Recast to reflect January 2024 segment changes. (2) 2024 includes the impact of a one-time, non-cash pension settlement charge of $2.7 billion. Refer to note 18, "Retirement-Related Benefits," for additional information. (3) 2024 includes a gain from the sale of certain QRadar SaaS assets. Refer to note 5, "Acquisitions & Divestitures," for additional information. Reconciliations to IBM as Reported: (Dollars in millions) For the nine months ended September 30: 2024 2023 (1) Revenue: Total reportable segments $ 44,985 $ 43,988 Other ‒ divested businesses 35 298 Other revenue 178 193 Total revenue from continuing operations $ 45,199 $ 44,479 Pre-tax income from continuing operations: Total reportable segment profit $ 8,670 $ 8,110 Amortization of acquired intangible assets (1,348) (1,194) Acquisition-related (charges)/income (2) (106) (35) Non-operating retirement-related (costs)/income (3) (2,991) 16 Stock-based compensation (966) (843) Net interest excluding the Finance segment (706) (704) Workforce rebalancing changes (698) (410) Other ‒ divested businesses (4) 231 63 Unallocated corporate amounts and other (5) 404 (72) Total pre-tax income from continuing operations $ 2,491 $ 4,931 (1) Recast to reflect January 2024 segment changes. (2) 2024 includes the impact of foreign exchange derivative contracts entered into by the company prior to the acquisition of StreamSets and webMethods from Software AG. Refer to note 16, "Derivative Financial Instruments," for additional information. (3) 2024 includes the impact of a one-time, non-cash pension settlement charge of $2.7 billion. Refer to note 18, "Retirement-Related Benefits," for additional information. (4) 2024 includes a gain from the divestiture of The Weather Company assets. Refer to note 5, "Acquisitions & Divestitures," for additional information. (5) 2024 includes a gain from the sale of certain QRadar SaaS assets. Refer to note 5, "Acquisitions & Divestitures," for additional information.

Acquisitions & Divestitures (Ta

Acquisitions & Divestitures (Tables)	9 Months Ended
	Sep. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Business acquisition, purchase price allocation	The following table reflects the purchase price related to these acquisitions and the resulting purchase price allocation as of September 30, 2024. (Dollars in millions) Amortization StreamSets and webMethods Other Current assets $ 364 $ 57 Property, plant and equipment/noncurrent assets 12 9 Intangible assets: Goodwill N/A 1,072 390 Client relationships 1-7 680 82 Completed technology 5-7 550 63 Trademarks 2-7 45 4 Total assets acquired $ 2,723 $ 605 Current liabilities 209 39 Noncurrent liabilities 251 31 Total liabilities assumed $ 461 $ 70 Total purchase price $ 2,262 $ 535 N/A – not applicable

Other (Income) and Expense (Tab

Other (Income) and Expense (Tables)	9 Months Ended
	Sep. 30, 2024
Other Income and Expenses [Abstract]
Schedule of components of other income and expense	Components of other (income) and expense are as follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in millions) 2024 2023 2024 2023 Other (income) and expense: (Gains)/losses on foreign currency transactions (1) $ 470 $ (260) $ 126 $ (338) (Gains)/losses on derivative instruments (1) (428) 316 (1) 315 Interest income (170) (156) (597) (527) Net (gains)/losses from securities and investment assets (4) (5) (14) 3 Retirement-related costs/(income) (2) 2,797 (12) 2,991 (16) Other (3) (422) (97) (810) (158) Total other (income) and expense $ 2,244 $ (215) $ 1,694 $ (721) (1) The company uses financial hedging instruments to limit specific currency risks related to foreign currency-based transactions. The hedging program does not hedge 100 percent of currency exposures and defers, versus eliminates, the impact of currency. Refer to note 16, "Derivative Financial Instruments," for additional information on foreign exchange risk. (2) 2024 amounts include the impact of a one-time, non-cash, pre-tax pension settlement charge of $2.7 billion. Refer to note 18, "Retirement-Related Benefits," for additional information. (3) 2024 amounts include a pre-tax gain of $351 million from the sale of certain QRadar SaaS assets. The nine months ended September 30, 2024 also includes a pre-tax gain of $241 million from the divestiture of The Weather Company assets. Refer to note 5, "Acquisitions & Divestitures," for additional information.

Earnings Per Share of Common _2

Earnings Per Share of Common Stock (Tables)	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
Computation of basic and diluted earnings/(loss) per share	The following tables provide the computation of basic and diluted earnings per share of common stock for the three and nine months ended September 30, 2024 and 2023. (Dollars in millions except per share amounts) For the three months ended September 30: 2024 2023 Number of shares on which basic earnings per share is calculated: Weighted-average shares outstanding during period 923,577,526 912,790,387 Add — Incremental shares under stock-based compensation plans — 8,531,982 Add — Incremental shares associated with contingently issuable shares — 2,350,932 Number of shares on which diluted earnings per share is calculated 923,577,526 923,673,300 Income/(loss) from continuing operations $ (317) $ 1,714 (Loss) from discontinued operations, net of tax (13) (10) Net income/(loss) on which basic earnings per share is calculated $ (330) $ 1,704 Income/(loss) from continuing operations $ (317) $ 1,714 Net income applicable to contingently issuable shares — — Income/(loss) from continuing operations on which diluted earnings per share is calculated $ (317) $ 1,714 (Loss) from discontinued operations, net of tax, on which diluted earnings per share is calculated (13) (10) Net income/(loss) on which diluted earnings per share is calculated $ (330) $ 1,704 Earnings/(loss) per share of common stock: Assuming dilution Continuing operations $ (0.34) $ 1.86 Discontinued operations (0.01) (0.01) Total $ (0.36) $ 1.84 Basic Continuing operations $ (0.34) $ 1.88 Discontinued operations (0.01) (0.01) Total $ (0.36) $ 1.87 (Dollars in millions except per share amounts) For the nine months ended September 30: 2024 2023 Number of shares on which basic earnings per share is calculated: Weighted-average shares outstanding during period 920,347,948 910,057,739 Add — Incremental shares under stock-based compensation plans 12,829,572 8,241,752 Add — Incremental shares associated with contingently issuable shares 2,247,712 2,024,201 Number of shares on which diluted earnings per share is calculated 935,425,233 920,323,692 Income from continuing operations $ 3,088 $ 4,229 Income/(loss) from discontinued operations, net of tax 21 (15) Net income on which basic earnings per share is calculated $ 3,109 $ 4,214 Income from continuing operations $ 3,088 $ 4,229 Net income applicable to contingently issuable shares — — Income from continuing operations on which diluted earnings per share is calculated $ 3,088 $ 4,229 Income/(loss) from discontinued operations, net of tax, on which diluted earnings per share is calculated 21 (15) Net income on which diluted earnings per share is calculated $ 3,109 $ 4,214 Earnings/(loss) per share of common stock: Assuming dilution Continuing operations $ 3.30 $ 4.59 Discontinued operations 0.02 (0.02) Total $ 3.32 $ 4.58 Basic Continuing operations $ 3.36 $ 4.65 Discontinued operations 0.02 (0.02) Total $ 3.38 $ 4.63

Financial Assets & Liabilities

Financial Assets & Liabilities (Tables)	9 Months Ended
	Sep. 30, 2024
Investments, All Other Investments [Abstract]
Financial assets and financial liabilities measured at fair value on a recurring basis	The following table presents the company’s financial assets and financial liabilities that are measured at fair value on a recurring basis at September 30, 2024 and December 31, 2023. Fair Value At September 30, 2024 At December 31, 2023 (Dollars in millions) Assets (6) Liabilities (7) Assets (6) Liabilities (7) Cash equivalents: (1) Time deposits and certificates of deposit (2) 2 $ 6,331 N/A $ 7,206 N/A Money market funds 1 432 N/A 494 N/A Total cash equivalents $ 6,763 N/A $ 7,699 N/A Equity investments 1 — N/A 25 N/A Debt securities-current (2)(3) 2 505 N/A 373 N/A Debt securities-noncurrent (2)(4) 2,3 107 N/A 8 N/A Derivatives designated as hedging instruments: Interest rate contracts 2 11 218 2 299 Foreign exchange contracts 2 60 276 131 275 Derivatives not designated as hedging instruments: Foreign exchange contracts (5) 2 17 6 115 19 Equity contracts 2 37 0 93 — Total $ 7,499 $ 500 $ 8,446 $ 593 (1) Included within cash and cash equivalents in the Consolidated Balance Sheet. (2) Available-for-sale debt securities with carrying values that approximate fair value. (3) Term deposits and U.S. treasury bills that are reported within marketable securities in the Consolidated Balance Sheet. (4) September 30, 2024 amount includes a $100 million seller financing loan in connection with the divestiture of The Weather Company assets reported within investments and sundry assets in the Consolidated Balance Sheet. Refer to note 5, "Acquisitions & Divestitures," for additional information. (5) December 31, 2023 asset amount includes $62 million in foreign exchange call option contracts in connection with the acquisition of StreamSets and webMethods from Software AG. There were no associated derivatives outstanding at September 30, 2024. Refer to note 16, "Derivative Financial Instruments," for additional information. (6) The gross balances of derivative assets contained within prepaid expenses and other current assets, and investments and sundry assets in the Consolidated Balance Sheet at September 30, 2024 were $84 million and $41 million, respectively, and at December 31, 2023 were $304 million and $37 million, respectively. (7) The gross balances of derivative liabilities contained within other accrued expenses and liabilities, and other liabilities in the Consolidated Balance Sheet at September 30, 2024 were $248 million and $252 million, respectively, and at December 31, 2023 were $294 million and $299 million, respectively. N/A – not applicable

Financing Receivables (Tables)

Financing Receivables (Tables)	9 Months Ended
	Sep. 30, 2024
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 (Dollars in millions) Held for Held for At September 30, 2024 (Loans) Leases Investment Sale (1) Total Financing receivables, gross $ 6,286 $ 3,750 $ 675 $ 509 $ 11,220 Unearned income (480) (370) — — (850) Unguaranteed residual value — 457 — — 457 Amortized cost $ 5,806 $ 3,837 $ 675 $ 509 $ 10,827 Allowance for credit losses (75) (51) (5) — (131) Total financing receivables, net $ 5,731 $ 3,786 $ 670 $ 509 $ 10,696 Current portion $ 3,017 $ 1,570 $ 670 $ 509 $ 5,765 Noncurrent portion $ 2,714 $ 2,216 $ — $ — $ 4,931 Client Financing Receivables Client Loan and Installment Payment Receivables Investment in Sales-Type and Direct Financing Commercial Financing Receivables (Dollars in millions) Held for Held for At December 31, 2023 (Loans) Leases Investment Sale (1) Total Financing receivables, gross $ 7,060 $ 4,261 $ 1,160 $ 692 $ 13,173 Unearned income (486) (429) — — (915) Unguaranteed residual value — 458 — — 458 Amortized cost $ 6,574 $ 4,290 $ 1,160 $ 692 $ 12,716 Allowance for credit losses (87) (63) (6) — (156) Total financing receivables, net $ 6,486 $ 4,227 $ 1,155 $ 692 $ 12,560 Current portion $ 3,427 $ 1,520 $ 1,155 $ 692 $ 6,793 Noncurrent portion $ 3,059 $ 2,707 $ — $ — $ 5,766 (1)
Schedule of transfer of commercial financing assets	The following table presents the total amount of commercial financing receivables transferred. (Dollars in millions) For the nine months ended September 30: 2024 2023 Commercial financing receivables: Receivables transferred during the period $ 5,590 $ 6,453 Receivables uncollected at end of period (1) $ 691 $ 836 (1)
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, 2024 and December 31, 2023, 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. (Dollars in millions) At September 30, 2024: Americas EMEA Asia Pacific Total Amortized cost $ 5,731 $ 2,531 $ 1,381 $ 9,643 Allowance for credit losses: Beginning balance at January 1, 2024 $ 92 $ 48 $ 11 $ 150 Write-offs $ (1) $ (1) $ 0 $ (2) Recoveries 0 0 0 1 Additions/(releases) (8) (6) (2) (16) Other (1) (7) 0 0 (7) Ending balance at September 30, 2024 $ 75 $ 41 $ 10 $ 126 (1) Primarily represents translation adjustments. (Dollars in millions) At December 31, 2023: Americas EMEA Asia Pacific Total Amortized cost $ 6,488 $ 3,007 $ 1,368 $ 10,863 Allowance for credit losses: Beginning balance at January 1, 2023 $ 88 $ 60 $ 20 $ 168 Write-offs $ (9) $ (1) $ (8) $ (18) Recoveries 0 2 3 5 Additions/(releases) 5 (14) (4) (12) Other (1) 7 1 (1) 8 Ending balance at December 31, 2023 $ 92 $ 48 $ 11 $ 150 (1) Primarily represents translation adjustments.
Schedule of past due client financing receivables	(Dollars in millions) Total Amortized Cost > 90 Days (1) Amortized Cost > 90 Days and Accruing (1) Billed Amortized Cost Not Accruing (2) At September 30, 2024: Americas $ 5,731 $ 80 $ 17 $ 1 $ 66 EMEA 2,531 32 3 3 30 Asia Pacific 1,381 8 1 0 7 Total client financing receivables $ 9,643 $ 120 $ 20 $ 4 $ 103 (Dollars in millions) Total Amortized Cost > 90 Days (1) Amortized Cost > 90 Days and Accruing (1) Billed Amortized Cost Not Accruing (2) At December 31, 2023: Americas $ 6,488 $ 111 $ 40 $ 6 $ 71 EMEA 3,007 31 1 1 31 Asia Pacific 1,368 9 1 0 8 Total client financing receivables $ 10,863 $ 151 $ 43 $ 7 $ 110 (1) At a contract level, which includes total billed and unbilled amounts for financing receivables aged greater than 90 days. (2) Of the amortized cost not accruing, there was a related allowance of $99 million and $106 million at September 30, 2024 and December 31, 2023, respectively. Financing income recognized on these receivables was immaterial for the three and nine months ended September 30, 2024 and 2023, respectively.
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, 2024 and December 31, 2023, 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, 2024 and December 31, 2023 were not material. (Dollars in millions) Americas EMEA Asia Pacific At September 30, 2024: Aaa – Baa3 Ba1 – C Aaa – Baa3 Ba1 – C Aaa – Baa3 Ba1 – C Vintage year: 2024 $ 1,377 $ 481 $ 448 $ 264 $ 423 $ 97 2023 1,589 467 419 314 321 29 2022 1,106 141 479 245 287 30 2021 335 35 158 45 64 25 2020 57 26 42 27 48 13 2019 and prior 67 50 46 45 32 12 Total $ 4,531 $ 1,201 $ 1,591 $ 940 $ 1,175 $ 206 (Dollars in millions) Americas EMEA Asia Pacific At December 31, 2023: Aaa – Baa3 Ba1 – C Aaa – Baa3 Ba1 – C Aaa – Baa3 Ba1 – C Vintage year: 2023 $ 2,292 $ 1,028 $ 750 $ 520 $ 501 $ 70 2022 1,645 268 687 374 386 42 2021 655 85 284 83 110 40 2020 205 79 106 60 97 22 2019 104 23 58 38 40 8 2018 and prior 55 50 16 30 39 12 Total $ 4,955 $ 1,533 $ 1,901 $ 1,106 $ 1,174 $ 195

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2024
Leases [Abstract]
Schedule of amounts included in the Consolidated Income Statement related to lessor activity	The following table presents amounts included in the Consolidated Income Statement related to lessor activity. Three Months Ended September 30, Nine Months Ended September 30, (Dollars in millions) 2024 2023 2024 2023 Lease income — sales-type and direct financing leases: Sales-type lease selling price $ 48 $ 190 $ 528 $ 528 Less: Carrying value of underlying assets (1) (12) (42) (106) (133) Gross profit $ 37 $ 148 $ 423 $ 395 Interest income on lease receivables 67 58 206 176 Total sales-type and direct financing lease income $ 104 $ 206 $ 628 $ 571 Lease income — operating leases 13 20 47 71 Variable lease income 16 12 54 47 Total lease income $ 133 $ 238 $ 729 $ 689 (1) Excludes unguaranteed residual value.

Intangible Assets Including G_2

Intangible Assets Including Goodwill (Tables)	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible asset balances by major asset class	The following tables present the company's intangible asset balances by major asset class. At September 30, 2024 (Dollars in millions) Gross Carrying Accumulated Net Carrying Amount (1) Intangible asset class: Capitalized software $ 1,450 $ (634) $ 816 Client relationships 9,793 (4,218) 5,574 Completed technology 6,258 (3,019) 3,239 Patents/trademarks 1,869 (514) 1,355 Other (2) 136 (30) 106 Total $ 19,506 $ (8,416) $ 11,090 At December 31, 2023 (Dollars in millions) Gross Carrying Accumulated Net Carrying Amount (1) Intangible asset class: Capitalized software $ 1,636 $ (762) $ 874 Client relationships 9,053 (3,500) 5,553 Completed technology 5,713 (2,510) 3,203 Patents/trademarks 1,821 (436) 1,385 Other (2) 41 (20) 22 Total $ 18,265 $ (7,229) $ 11,036 (1) Amounts as of September 30, 2024 and December 31, 2023 include an increase in net intangible asset balances of $6 million and $50 million, respectively, due to foreign currency translation. (2) Other intangibles are primarily acquired proprietary and non-proprietary technology licenses, data, business processes, methodologies and systems.
Intangible assets, future amortization expense	The future amortization expense relating to intangible assets currently recorded in the Consolidated Balance Sheet was estimated to be the following at September 30, 2024: (Dollars in millions) Capitalized Acquired Total Remainder of 2024 $ 155 $ 488 $ 643 2025 383 1,923 2,306 2026 217 1,899 2,116 2027 60 1,879 1,939 2028 0 1,576 1,576 Thereafter 0 2,510 2,510
Changes in goodwill balances by reportable segment	The changes in the goodwill balances by segment for the nine months ended September 30, 2024 and for the year ended December 31, 2023 were as follows: (Dollars in millions) Balance Goodwill Purchase Price Adjustments (1) Foreign Currency Translation and Other Adjustments (2) Balance Segment 1/1/2024 Divestitures 9/30/2024 Software $ 46,447 $ 1,237 $ (44) $ — $ (59) $ 47,581 Consulting 8,883 215 (3) (1) 27 9,122 Infrastructure 4,384 8 (1) — (2) 4,390 Other (3) 464 — — (464) — — Total $ 60,178 $ 1,460 $ (48) $ (465) $ (33) $ 61,092 (Dollars in millions) Balance Goodwill Purchase Price Adjustments (1) Foreign Currency Translation and Other Adjustments (2) Balance Segment 1/1/2023 Divestitures 12/31/2023 Software (4) $ 42,712 $ 3,538 $ (17) $ — $ 214 $ 46,447 Consulting (4) 8,409 403 2 — 69 8,883 Infrastructure 4,363 12 — — 8 4,384 Other (4) 464 — — — — 464 Total $ 55,949 $ 3,953 $ (15) $ — $ 291 $ 60,178 (1) Includes measurement period adjustments related to business combinations that closed in the current and prior year. (2) Primarily driven by foreign currency translation. (3) In the first quarter of 2024, the company derecognized goodwill related to the divestiture of The Weather Company assets. Refer to note 5, "Acquisitions & Divestitures," for additional information. (4) Recast to reflect January 2024 segment changes. Refer to note 4, "Segments," for additional information.

Borrowings (Tables)

Borrowings (Tables)	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Long-Term Debt	Pre-Swap Borrowing Balance Balance (Dollars in millions) Maturities 9/30/2024 12/31/2023 U.S. dollar debt (weighted-average interest rate at September 30, 2024): (1) 3.5% 2024 $ 1 $ 5,003 5.1% 2025 1,602 1,601 3.7% 2026 5,800 5,201 3.3% 2027 4,119 3,619 5.0% 2028 1,313 1,313 3.6% 2029 3,750 3,250 2.0% 2030 1,350 1,350 4.8% 2031 500 — 4.4% 2032 1,850 1,850 4.8% 2033 750 750 4.9% 2034 1,000 — 8.0% 2038 83 83 4.5% 2039 2,745 2,745 2.9% 2040 650 650 4.0% 2042 1,107 1,107 5.3% 2044 1,000 — 7.0% 2045 27 27 4.7% 2046 650 650 4.3% 2049 3,000 3,000 3.0% 2050 750 750 4.2% 2052 1,400 1,400 5.1% 2053 650 650 5.3% 2054 1,400 — 7.1% 2096 316 316 $ 35,815 $ 35,317 Euro debt (weighted-average interest rate at September 30, 2024): (1) 1.1% 2024 $ — $ 829 1.6% 2025 3,348 3,315 2.3% 2027 2,232 2,210 0.7% 2028 2,009 1,989 1.5% 2029 1,116 1,105 0.9% 2030 1,116 1,105 2.7% 2031 2,790 2,762 0.7% 2032 1,786 1,768 1.3% 2034 1,116 1,105 3.8% 2035 1,116 1,105 1.2% 2040 949 939 4.0% 2043 1,116 1,105 $ 18,693 $ 19,335 Other currencies (weighted-average interest rate at September 30, 2024 in parentheses): (1) Pound sterling (4.9%) 2038 $ 1,006 $ 955 Japanese yen (0.7%) 2026–2028 887 1,251 Other (13.8%) 2024–2027 285 241 $ 56,686 $ 57,099 Finance lease obligations (4.9%) 2024–2034 878 499 $ 57,565 $ 57,598 Less: net unamortized discount 837 838 Less: net unamortized debt issuance costs 176 154 Add: fair value adjustment (2) 19 (60) $ 56,570 $ 56,546 Less: current maturities 3,590 6,425 Total $ 52,980 $ 50,121 (1) Includes notes, debentures, bank loans and secured borrowings. (2) The portion of the company’s fixed-rate debt obligations that is hedged is reflected in the Consolidated Balance Sheet as an amount equal to the sum of the debt’s carrying value and a fair value adjustment representing changes in the fair value of the hedged debt obligations attributable to movements in benchmark interest rates.
Pre-swap annual contractual obligations of long-term debt outstanding	Pre-swap annual contractual obligations of long-term debt outstanding at September 30, 2024, were as follows: (Dollars in millions) Total Remainder of 2024 $ 93 2025 5,296 2026 6,321 2027 6,501 2028 4,043 Thereafter 35,311 Total $ 57,565
Interest on Debt	(Dollars in millions) For the nine months ended September 30: 2024 2023 Cost of financing $ 254 $ 255 Interest expense 1,288 1,202 Interest capitalized 10 7 Total interest paid and accrued $ 1,552 $ 1,464

Commitments (Tables)

Commitments (Tables)	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Changes in warranty liabilities	Changes in the company’s warranty liability for standard warranties, which are included in other accrued expenses and liabilities and other liabilities in the Consolidated Balance Sheet, and for extended warranty contracts, which are included in deferred income in the Consolidated Balance Sheet, are presented in the following tables. Standard Warranty Liability (Dollars in millions) 2024 2023 Balance at January 1 $ 65 $ 79 Current-period accruals 53 53 Accrual adjustments to reflect actual experience 7 (14) Charges incurred (61) (64) Balance at September 30 $ 64 $ 54 Extended Warranty Liability (Dollars in millions) 2024 2023 Balance at January 1 $ 184 $ 272 Revenue deferred for new extended warranty contracts 20 55 Amortization of deferred revenue (88) (122) Other (1) (3) (4) Balance at September 30 $ 112 $ 201 Current portion $ 72 $ 119 Noncurrent portion $ 40 $ 82 (1) Other primarily consists of foreign currency translation adjustments.

Equity Activity (Tables)

Equity Activity (Tables)	9 Months Ended
	Sep. 30, 2024
Stockholders' Equity Note [Abstract]
Reclassifications and taxes related to items of other comprehensive income	(Dollars in millions) Before Tax Tax (Expense)/ Net of Tax For the three months ended September 30, 2024: Other comprehensive income/(loss): Foreign currency translation adjustments $ (330) $ 270 $ (60) Net changes related to available-for-sale securities: Unrealized gains/(losses) arising during the period $ 0 $ 0 $ 0 Reclassification of (gains)/losses to other (income) and expense — — — Total net changes related to available-for-sale securities $ 0 $ 0 $ 0 Unrealized gains/(losses) on cash flow hedges: Unrealized gains/(losses) arising during the period $ (215) $ 57 $ (158) Reclassification of (gains)/losses to: Cost of services (5) 1 (4) Cost of sales (3) 1 (2) Cost of financing 2 0 1 SG&A expense 0 0 0 Other (income) and expense (234) 59 (175) Interest expense 8 (2) 6 Total unrealized gains/(losses) on cash flow hedges $ (449) $ 116 $ (333) Retirement-related benefit plans: (1) Prior service costs/(credits) $ — $ — $ — Net (losses)/gains arising during the period 100 (25) 75 Curtailments and settlements 2,727 (686) 2,041 Amortization of prior service costs/(credits) (2) 0 (1) Amortization of net (gains)/losses 246 (68) 178 Total retirement-related benefit plans $ 3,072 $ (779) $ 2,293 Other comprehensive income/(loss) $ 2,293 $ (392) $ 1,900 (1) These accumulated other comprehensive income (AOCI) components are included in the computation of net periodic pension cost and include the impact of a one-time, non-cash pension settlement charge of $2.7 billion ($2.0 billion net of tax) in the third quarter of 2024. Refer to note 18, “Retirement-Related Benefits,” for additional information. (Dollars in millions) Before Tax Tax (Expense)/ Net of Tax For the three months ended September 30, 2023: Other comprehensive income/(loss): Foreign currency translation adjustments $ 151 $ (164) $ (13) Net changes related to available-for-sale securities: Unrealized gains/(losses) arising during the period $ 0 $ 0 $ 0 Reclassification of (gains)/losses to other (income) and expense — — — Total net changes related to available-for-sale securities $ 0 $ 0 $ 0 Unrealized gains/(losses) on cash flow hedges: Unrealized gains/(losses) arising during the period $ 131 $ (35) $ 95 Reclassification of (gains)/losses to: Cost of services 2 0 1 Cost of sales 5 (1) 4 Cost of financing 3 (1) 2 SG&A expense 4 (1) 3 Other (income) and expense 175 (44) 131 Interest expense 14 (4) 11 Total unrealized gains/(losses) on cash flow hedges $ 333 $ (85) $ 248 Retirement-related benefit plans: (1) Prior service costs/(credits) $ — $ — $ — Net (losses)/gains arising during the period 102 (26) 77 Curtailments and settlements 2 (1) 1 Amortization of prior service costs/(credits) (2) 1 (2) Amortization of net (gains)/losses 128 (37) 91 Total retirement-related benefit plans $ 230 $ (63) $ 167 Other comprehensive income/(loss) $ 714 $ (313) $ 402 (1) These AOCI components are included in the computation of net periodic pension cost. Refer to note 18, “Retirement-Related Benefits,” for additional information. (Dollars in millions) Before Tax Tax (Expense)/ Net of Tax For the nine months ended September 30, 2024: Other comprehensive income/(loss): Foreign currency translation adjustments $ (273) $ 49 $ (224) Net changes related to available-for-sale securities: Unrealized gains/(losses) arising during the period $ 1 $ 0 $ 1 Reclassification of (gains)/losses to other (income) and expense — — — Total net changes related to available-for-sale securities $ 1 $ 0 $ 1 Unrealized gains/(losses) on cash flow hedges: Unrealized gains/(losses) arising during the period $ 64 $ (18) $ 46 Reclassification of (gains)/losses to: Cost of services (19) 5 (14) Cost of sales (30) 10 (20) Cost of financing 5 (1) 4 SG&A expense (10) 3 (7) Other (income) and expense (176) 44 (132) Interest expense 24 (6) 18 Total unrealized gains/(losses) on cash flow hedges $ (142) $ 37 $ (105) Retirement-related benefit plans: (1) Prior service costs/(credits) $ — $ — $ — Net (losses)/gains arising during the period 101 (23) 78 Curtailments and settlements 2,731 (687) 2,044 Amortization of prior service costs/(credits) (5) 1 (4) Amortization of net (gains)/losses 765 (212) 554 Total retirement-related benefit plans $ 3,592 $ (921) $ 2,672 Other comprehensive income/(loss) $ 3,178 $ (835) $ 2,343 (1) These AOCI components are included in the computation of net periodic pension cost and include the impact of a one-time, non-cash pension settlement charge of $2.7 billion ($2.0 billion net of tax) in the third quarter of 2024. Refer to note 18, “Retirement-Related Benefits,” for additional information. (Dollars in millions) Before Tax Tax (Expense)/ Net of Tax For the nine months ended September 30, 2023: Other comprehensive income/(loss): Foreign currency translation adjustments $ 180 $ (142) $ 39 Net changes related to available-for-sale securities: Unrealized gains/(losses) arising during the period $ (1) $ 0 $ (1) Reclassification of (gains)/losses to other (income) and expense — — — Total net changes related to available-for-sale securities $ (1) $ 0 $ (1) Unrealized gains/(losses) on cash flow hedges: Unrealized gains/(losses) arising during the period $ 279 $ (77) $ 203 Reclassification of (gains)/losses to: Cost of services 6 (1) 5 Cost of sales (12) 4 (8) Cost of financing 12 (3) 9 SG&A expense (7) 2 (4) Other (income) and expense (6) 1 (4) Interest expense 57 (14) 43 Total unrealized gains/(losses) on cash flow hedges $ 330 $ (87) $ 243 Retirement-related benefit plans: (1) Prior service costs/(credits) $ — $ 1 $ 1 Net (losses)/gains arising during the period 104 (19) 85 Curtailments and settlements 7 (2) 5 Amortization of prior service costs/(credits) (6) 2 (5) Amortization of net (gains)/losses 389 (113) 276 Total retirement-related benefit plans $ 494 $ (132) $ 361 Other comprehensive income/(loss) $ 1,003 $ (361) $ 642 (1) These AOCI components are included in the computation of net periodic pension cost. Refer to note 18, “Retirement-Related Benefits,” for additional information.
Accumulated other comprehensive income/(loss) (net of tax)	(Dollars in millions) Net Unrealized Foreign Currency Translation Adjustments (1) Net Change Net Unrealized Accumulated January 1, 2024 $ (106) $ (3,488) $ (15,165) $ (1) $ (18,761) Other comprehensive income before reclassifications 46 (224) 78 1 (100) Amount reclassified from accumulated other comprehensive income (2) (151) — 2,594 — 2,443 Total change for the period $ (105) $ (224) $ 2,672 $ 1 $ 2,343 September 30, 2024 $ (211) $ (3,713) $ (12,493) $ (1) $ (16,418) (1) Foreign currency translation adjustments are presented gross except for any associated hedges which are presented net of tax. (2) Net change in retirement-related benefit plans includes the impact of a one-time, non-cash, pre-tax pension settlement charge of $2.7 billion ($2.0 billion net of tax) in the third quarter of 2024. Refer to note 18, "Retirement-Related Benefits," for additional information. (Dollars in millions) Net Unrealized Foreign Currency Translation Adjustments (1) Net Change Net Unrealized Accumulated January 1, 2023 $ (135) $ (3,591) $ (13,013) $ (1) $ (16,740) Other comprehensive income before reclassifications 203 39 86 (1) 326 Amount reclassified from accumulated other comprehensive income 40 — 276 — 316 Total change for the period $ 243 $ 39 $ 361 $ (1) $ 642 September 30, 2023 $ 109 $ (3,552) $ (12,652) $ (2) $ (16,098) (1) Foreign currency translation adjustments are presented gross except for any associated hedges which are presented net of tax.

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Amounts related to cumulative basis adjustments for fair value hedges	At September 30, 2024 and December 31, 2023, the following amounts were recorded in the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges: (Dollars in millions) September 30, December 31, Short-term debt: Carrying amount of the hedged item $ — $ (1) Cumulative hedging adjustments included in the carrying amount — assets/(liabilities) $ — $ (1) Long-term debt: Carrying amount of the hedged item $ (6,704) $ (6,629) Cumulative hedging adjustments included in the carrying amount — assets/(liabilities) (1) $ (19) $ 61 (1) Includes ($166) million and ($200) million of hedging adjustments on discontinued hedging relationships at September 30, 2024 and December 31, 2023, respectively.
Effect of derivative instruments in the Consolidated Income Statement	The total amounts of income and expense line items presented in the Consolidated Income Statement in which the effects of fair value hedges, cash flow hedges, net investment hedges and derivatives not designated as hedging instruments are recorded and the total effect of hedge activity on these income and expense line items are as follows: (Dollars in millions) Total Gains/(Losses) of For the three months ended September 30: 2024 2023 2024 2023 Cost of services $ 5,048 $ 5,217 $ 5 $ (2) Cost of sales $ 1,404 $ 1,419 $ 3 $ (5) Cost of financing $ 95 $ 94 $ (2) $ (3) SG&A expense $ 4,911 $ 4,458 $ 83 $ (58) Other (income) and expense $ 2,244 $ (215) $ 428 $ (316) Interest expense $ 429 $ 412 $ (11) $ (15) Gain (Loss) Recognized in Consolidated Income Statement (Dollars in millions) Consolidated Recognized on Attributable to Risk Being Hedged (2) For the three months ended September 30: 2024 2023 2024 2023 Derivative instruments in fair value hedges: (1) Interest rate contracts Cost of financing $ 31 $ (33) $ (37) $ 28 Interest expense 155 (166) (185) 139 Derivative instruments not designated as hedging instruments: Foreign exchange contracts Other (income) and expense 194 (141) N/A N/A Equity contracts SG&A expense 83 (54) N/A N/A Total $ 463 $ (394) $ (222) $ 167 Gain (Loss) Recognized in Consolidated Income Statement and Other Comprehensive Income Recognized in OCI Consolidated Reclassified Amounts Excluded from Effectiveness Testing (3) (Dollars in millions) For the three months ended September 30: 2024 2023 2024 2023 2024 2023 Derivative instruments in cash flow hedges: Interest rate contracts $ — $ — Cost of financing $ (1) $ (1) $ — $ — Interest expense (3) (4) — — Foreign exchange contracts Cost of services 5 (2) — — Amount included in the assessment of effectiveness (153) 101 Cost of sales 3 (5) — — Amount excluded from the assessment of effectiveness (62) 29 Cost of financing (1) (2) — — SG&A expense 0 (4) — — Other (income) and expense 255 (164) (20) (11) Interest expense (5) (11) — — Instruments in net investment hedges: (4) Foreign exchange contracts Cost of financing — — 5 5 Amount included in the assessment of effectiveness (1,086) 652 Interest expense — — 26 26 Amount excluded from the assessment of effectiveness 10 — Total $ (1,290) $ 782 $ 254 $ (192) $ 11 $ 21 (1) The amount includes changes in clean fair values of the derivative instruments in fair value hedging relationships and the periodic accrual for coupon payments required under these derivative contracts. (2) The amount includes basis adjustments to the carrying value of the hedged item recorded during the period and amortization of basis adjustments recorded on de-designated hedging relationships during the period. (3) Amounts excluded from effectiveness testing for both net investment hedges and cash flow hedges of foreign currency debt are amortized to net income on a straight-line basis over the life of the relevant hedging instrument. (4) Instruments in net investment hedges include derivative and non-derivative instruments with the amounts recognized in OCI providing an offset to the translation of foreign subsidiaries. N/A - not applicable (Dollars in millions) Total Gains/(Losses) of For the nine months ended September 30: 2024 2023 2024 2023 Cost of services $ 15,414 $ 15,821 $ 19 $ (6) Cost of sales $ 4,393 $ 4,329 $ 30 $ 12 Cost of financing $ 281 $ 297 $ (9) $ (10) SG&A expense $ 14,823 $ 14,212 $ 168 $ 44 Other (income) and expense $ 1,694 $ (721) $ 1 $ (315) Interest expense $ 1,288 $ 1,202 $ (45) $ (46) Gain (Loss) Recognized in Consolidated Income Statement (Dollars in millions) Consolidated Recognized on Attributable to Risk Being Hedged (2) For the nine months ended September 30: 2024 2023 2024 2023 Derivative instruments in fair value hedges: (1) Interest rate contracts Cost of financing $ (5) $ (55) $ (13) $ 42 Interest expense (24) (261) (66) 196 Derivative instruments not designated as hedging instruments: Foreign exchange contracts Other (income) and expense (174) (321) N/A N/A Equity contracts SG&A expense 158 37 N/A N/A Total $ (46) $ (600) $ (79) $ 238 Gain (Loss) Recognized in Consolidated Income Statement and Other Comprehensive Income Recognized in OCI Consolidated Reclassified Amounts Excluded from Effectiveness Testing (3) (Dollars in millions) For the nine months ended September 30: 2024 2023 2024 2023 2024 2023 Derivative instruments in cash flow hedges: Interest rate contracts $ — $ — Cost of financing $ (2) $ (2) $ — $ — Interest expense (10) (11) — — Foreign exchange contracts Cost of services 19 (6) — — Amount included in the assessment of effectiveness 147 250 Cost of sales 30 12 — — Amount excluded from the assessment of effectiveness (84) 29 Cost of financing (3) (10) — — SG&A expense 10 7 — — Other (income) and expense 233 16 (57) (11) Interest expense (15) (46) — — Instruments in net investment hedges: (4) Foreign exchange contracts Cost of financing — — 14 16 Amount included in the assessment of effectiveness (205) 564 Interest expense — — 69 75 Amount excluded from the assessment of effectiveness 10 — Total $ (131) $ 843 $ 263 $ (40) $ 26 $ 81 (1) The amount includes changes in clean fair values of the derivative instruments in fair value hedging relationships and the periodic accrual for coupon payments required under these derivative contracts. (2) The amount includes basis adjustments to the carrying value of the hedged item recorded during the period and amortization of basis adjustments recorded on de-designated hedging relationships during the period. (3) Amounts excluded from effectiveness testing for both net investment hedges and cash flow hedges of foreign currency debt are amortized to net income on a straight line basis over the life of the relevant hedging instrument. (4) Instruments in net investment hedges include derivative and non-derivative instruments with the amounts recognized in OCI providing an offset to the translation of foreign subsidiaries. N/A - not applicable

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]
Stock-based compensation cost included in income from continuing operations	The following table presents total stock-based compensation cost included in income from continuing operations. Three Months Ended September 30, Nine Months Ended September 30, (Dollars in millions) 2024 2023 2024 2023 Cost $ 56 $ 48 $ 165 $ 141 Selling, general and administrative 167 148 511 465 Research, development and engineering 107 91 290 237 Pre-tax stock-based compensation cost $ 330 $ 286 $ 966 $ 843 Income tax benefits (131) (74) (353) (216) Total net stock-based compensation cost $ 199 $ 213 $ 613 $ 627

Retirement-Related Benefits (Ta

Retirement-Related Benefits (Tables)	9 Months Ended
	Sep. 30, 2024
Retirement Benefits [Abstract]
Changes in plan assets	The following table presents the changes in benefit obligations and plan assets of the company's retirement-related benefit plans affected by the interim remeasurements described above for the nine months ended September 30, 2024. Qualified PPP (Dollars in millions) U.S. Plan Change in benefit obligation: Benefit obligation at January 1, 2024 $ 19,854 Service cost 295 Interest cost 686 Plan participants' contributions — Actuarial losses/(gains) (1) 46 Benefits paid from trust (1,073) Direct benefit payments — Amendments/curtailments/settlements/other (2) (6,229) Benefit obligation at September 30, 2024 $ 13,578 Change in plan assets: Fair value of plan assets at January 1, 2024 $ 24,437 Actual return of plan assets (1) 1,140 Employer contributions — Plan participants' contributions — Benefits paid from trust (1,073) Direct benefit payments — Amendments/curtailments/settlements/other (2) (6,229) Fair value of plan assets at September 30, 2024 $ 18,275 Funded status at September 30, 2024 $ 4,697 Accumulated benefit obligation (3) $ 13,578 (1) Reflects a 5.00 percent discount rate at both December 31, 2023 and at the remeasurement date. (2) Primarily represents the transfer of pension obligations and related plan assets to the Insurer pursuant to a group annuity contract and lump sum payments to Transferred Participants. (3) Represents the benefit obligation assuming no future participant compensation increases.
Pre-tax cost for all retirement-related plans	The following tables provide the pre-tax cost for all retirement-related plans. Yr.-to-Yr. (Dollars in millions) Percent For the three months ended September 30: 2024 2023 Change Retirement-related plans — cost: Defined benefit pension and defined contribution plans — cost (1) $ 3,024 $ 250 nm Nonpension postretirement plans — cost 30 33 (9.4) % Total $ 3,053 $ 283 nm Yr.-to-Yr. (Dollars in millions) Percent For the nine months ended September 30: 2024 2023 Change Retirement-related plans — cost: Defined benefit pension and defined contribution plans — cost (1) $ 3,667 $ 791 nm Nonpension postretirement plans — cost 90 98 (7.8) % Total $ 3,757 $ 888 nm (1) 2024 includes the impact of a one-time, non-cash, pre-tax pension settlement charge of $2.7 billion related to the Qualified PPP, as described above. nm - not meaningful
Components of net periodic (income)/cost of the company's retirement-related benefit plans	The following tables provide the components of the cost/(income) for the company’s retirement-related benefit plans. (Dollars in millions) U.S. Plans Non-U.S. Plans For the three months ended September 30: 2024 2023 2024 2023 Service cost (1) $ 98 $ — $ 43 $ 44 Interest cost (2) 228 272 271 293 Expected return on plan assets (2) (313) (382) (395) (363) Amortization of prior service costs/(credits) (2) — — 6 5 Recognized actuarial losses (2) 113 27 131 99 Curtailments and settlements (2) (3) 2,725 — 2 2 Multi-employer plans — — 3 4 Other costs/(credits) (2) — — 0 3 Total net periodic pension (income)/cost of defined benefit plans $ 2,851 $ (82) $ 62 $ 88 Cost of defined contribution plans 15 150 95 95 Total defined benefit pension and defined contribution plans cost recognized in the Consolidated Income Statement $ 2,866 $ 68 $ 158 $ 182 (1) Increase in U.S. Plans service cost in 2024 is due to the Qualified PPP plan changes effective January 1, 2024 described above. (2) These components of net periodic pension cost are included in other (income) and expense in the Consolidated Income Statement. (3) U.S. Plans in 2024 reflects the impact of a one-time, non-cash, pre-tax pension settlement charge related to the Qualified PPP, as described above. (Dollars in millions) U.S. Plans Non-U.S. Plans For the nine months ended September 30: 2024 2023 2024 2023 Service cost (1) $ 295 $ — $ 128 $ 133 Interest cost (2) 735 817 803 873 Expected return on plan assets (2) (994) (1,146) (1,168) (1,081) Amortization of prior service costs/(credits) (2) — 0 17 15 Recognized actuarial losses (2) 370 82 389 302 Curtailments and settlements (2) (3) 2,725 — 7 7 Multi-employer plans — — 10 10 Other costs/(credits) (2) — — 20 21 Total net periodic pension (income)/cost of defined benefit plans $ 3,131 $ (247) $ 206 $ 281 Cost of defined contribution plans 42 473 288 283 Total defined benefit pension and defined contribution plans cost recognized in the Consolidated Income Statement $ 3,173 $ 226 $ 494 $ 565 (1) Increase in U.S. Plans service cost in 2024 is due to the Qualified PPP plan changes effective January 1, 2024 described above. (2) These components of net periodic pension cost are included in other (income) and expense in the Consolidated Income Statement. (3) U.S. Plans in 2024 reflects the impact of a one-time, non-cash, pre-tax pension settlement charge related to the Qualified PPP, as described above.
Components of the cost/(income) for the company's nonpension postretirement plans	The following tables provide the components of the cost for the company’s nonpension postretirement plans. (Dollars in millions) U.S. Plan Non-U.S. Plans For the three months ended September 30: 2024 2023 2024 2023 Service cost $ 1 $ 1 $ 1 $ 1 Interest cost (1) 27 29 10 10 Expected return on plan assets (1) — — 0 (1) Amortization of prior service costs/(credits) (1) (7) (7) 0 0 Recognized actuarial losses (1) — — 0 0 Curtailments and settlements (1) — — — — Total nonpension postretirement plans cost recognized in the Consolidated Income Statement $ 20 $ 23 $ 10 $ 10 (Dollars in millions) U.S. Plan Non-U.S. Plans For the nine months ended September 30: 2024 2023 2024 2023 Service cost $ 2 $ 3 $ 2 $ 2 Interest cost (1) 80 88 31 29 Expected return on plan assets (1) — — (1) (2) Amortization of prior service costs/(credits) (1) (22) (22) 0 0 Recognized actuarial losses (1) — — (1) (1) Curtailments and settlements (1) — — — — Total nonpension postretirement plans cost recognized in the Consolidated Income Statement $ 59 $ 69 $ 30 $ 28 (1) These components of net periodic pension cost are included in other (income) and expense in the Consolidated Income Statement.
Schedule of contributions	The table below includes contributions to the following plans: (Dollars in millions) Plan Contributions For the nine months ended September 30: 2024 2023 U.S. nonpension postretirement benefit plan $ 155 $ 188 Non-U.S. DB and multi-employer plans (1) 53 45 Total plan contributions $ 208 $ 233 (1) Amounts reported net of refunds.

Basis of Presentation - Pension

Basis of Presentation - Pension Plan (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2024	Sep. 30, 2024	Sep. 30, 2023
Retirement-Related Benefits
Pension settlement charge		$ 2,700	$ 2,725	$ 0
Pension settlement charge, net of tax		2,000
Pension settlement charge, tax		$ 700
Personal Pension Plan (PPP)
Retirement-Related Benefits
Benefit plan obligations transferred from plan	$ 6,000
Benefit plan assets transferred from plan	$ 6,000

Basis of Presentation - Income

Basis of Presentation - Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Provision for/(benefit from) income taxes	$ (485)	$ 159	$ (597)	$ 702

Basis of Presentation - Supplie

Basis of Presentation - Supplier Finance Programs (Details) - Commitment With Third Party Financial Institution - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Other Commitments [Line Items]
Contractual obligation	$ 99	$ 101
Minimum
Other Commitments [Line Items]
Contractual obligation average payment term duration	90 days
Maximum
Other Commitments [Line Items]
Contractual obligation average payment term duration	120 days

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue by Major Products and Service Offerings (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenue by Major Products/Service Offerings
Total Revenue	$ 14,968	$ 14,752	$ 45,199	$ 44,479
Operating Segments
Revenue by Major Products/Service Offerings
Total Revenue	14,900	14,582	44,985	43,988
Other
Revenue by Major Products/Service Offerings
Revenue	68	170	214	491
Software | Operating Segments
Revenue by Major Products/Service Offerings
Total Revenue	6,524	5,947	19,162	17,832
Software | Hybrid Platform & Solutions | Operating Segments
Revenue by Major Products/Service Offerings
Revenue	4,600	4,187	13,272	12,388
Software | Transaction Processing | Operating Segments
Revenue by Major Products/Service Offerings
Revenue	1,925	1,759	5,889	5,444
Consulting | Operating Segments
Revenue by Major Products/Service Offerings
Total Revenue	5,152	5,178	15,517	15,601
Consulting | Business Transformation | Operating Segments
Revenue by Major Products/Service Offerings
Revenue	2,327	2,291	7,004	6,869
Consulting | Application Operations | Operating Segments
Revenue by Major Products/Service Offerings
Revenue	1,921	1,944	5,761	5,924
Consulting | Technology Consulting | Operating Segments
Revenue by Major Products/Service Offerings
Revenue	905	943	2,752	2,808
Infrastructure | Operating Segments
Revenue by Major Products/Service Offerings
Total Revenue	3,042	3,272	9,764	9,988
Infrastructure | Hybrid Infrastructure | Operating Segments
Revenue by Major Products/Service Offerings
Revenue	1,765	1,943	5,928	5,912
Infrastructure | Infrastructure Support | Operating Segments
Revenue by Major Products/Service Offerings
Revenue	1,277	1,329	3,835	4,076
Financing | Operating Segments
Revenue by Major Products/Service Offerings
Total Revenue	$ 181	$ 186	$ 543	$ 566

Revenue Recognition - Disaggr_2

Revenue Recognition - Disaggregation of Revenue by Geography (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenue by Geography
Revenue	$ 14,968	$ 14,752	$ 45,199	$ 44,479
Americas
Revenue by Geography
Revenue	7,453	7,686	22,727	22,810
Europe/Middle East/Africa
Revenue by Geography
Revenue	4,584	4,223	13,619	13,156
Asia Pacific
Revenue by Geography
Revenue	$ 2,932	$ 2,843	$ 8,853	$ 8,513

Revenue Recognition - Remaining

Revenue Recognition - Remaining Performance Obligations (Details) $ in Billions	9 Months Ended
	Sep. 30, 2024 USD ($)
Remaining Performance Obligations
Practical expedient, remaining performance obligations	true
Remaining performance obligations related to customer contracts that are unsatisfied or partially unsatisfied	$ 57
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01
Remaining Performance Obligations
Percentage of remaining performance obligation expected to be recognized	70%
Duration of expected recognition period for remaining performance obligation	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-10-01
Remaining Performance Obligations
Percentage of remaining performance obligation expected to be recognized	27%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-10-01 | Minimum
Remaining Performance Obligations
Duration of expected recognition period for remaining performance obligation	3 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-10-01 | Maximum
Remaining Performance Obligations
Duration of expected recognition period for remaining performance obligation	5 years

Revenue Recognition - Reconcili

Revenue Recognition - Reconciliation of Contract Balances (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Reconciliation of Contract Balances
Notes and accounts receivable — trade (net of allowances of $132 in 2024 and $192 in 2023)	$ 5,390	$ 7,214
Notes and accounts receivable - trade, allowances	132	192
Contract assets	572	505
Deferred income (current)	12,882	13,451
Deferred income (noncurrent)	3,666	$ 3,533
Revenue recognized that was included in deferred income at the beginning of the period	$ 9,500

Revenue Recognition - Trade All

Revenue Recognition - Trade Allowance for Credit Losses (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Roll forward of notes and accounts receivable - trade allowance for credit losses
Allowance for Credit Loss, Beginning Balance	$ 192	$ 233
Additions / (Releases)	4	32
Write-offs	(71)	(79)
Foreign currency and other	7	6
Allowance for Credit Loss, Ending Balance	$ 132	$ 192

Segments - Results of Continuin

Segments - Results of Continuing Operations (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Information
Revenue	$ 14,968	$ 14,752	$ 45,199	$ 44,479
Segment profit	(802)	1,873	2,491	4,931
Operating Segments
Segment Information
Revenue	14,900	14,582	44,985	43,988
Segment profit	$ 3,037	$ 2,869	$ 8,670	$ 8,110
Revenue year-to-year change (as a percent)	2.20%		2.30%
Segment profit year-to-year change (as a percent)	5.80%		6.90%
Segment profit margin (as a percent)	20.40%	19.70%	19.30%	18.40%
Operating Segments | Software
Segment Information
Revenue	$ 6,524	$ 5,947	$ 19,162	$ 17,832
Segment profit	$ 1,969	$ 1,722	$ 5,582	$ 4,850
Revenue year-to-year change (as a percent)	9.70%		7.50%
Segment profit year-to-year change (as a percent)	14.40%		15.10%
Segment profit margin (as a percent)	30.20%	29%	29.10%	27.20%
Operating Segments | Consulting
Segment Information
Revenue	$ 5,152	$ 5,178	$ 15,517	$ 15,601
Segment profit	$ 559	$ 566	$ 1,447	$ 1,476
Revenue year-to-year change (as a percent)	(0.50%)		(0.50%)
Segment profit year-to-year change (as a percent)	(1.20%)		(1.90%)
Segment profit margin (as a percent)	10.90%	10.90%	9.30%	9.50%
Operating Segments | Infrastructure
Segment Information
Revenue	$ 3,042	$ 3,272	$ 9,764	$ 9,988
Segment profit	$ 422	$ 490	$ 1,387	$ 1,529
Revenue year-to-year change (as a percent)	(7.00%)		(2.30%)
Segment profit year-to-year change (as a percent)	(13.80%)		(9.30%)
Segment profit margin (as a percent)	13.90%	15%	14.20%	15.30%
Operating Segments | Financing
Segment Information
Revenue	$ 181	$ 186	$ 543	$ 566
Segment profit	$ 86	$ 91	$ 254	$ 256
Revenue year-to-year change (as a percent)	(2.50%)		(4.10%)
Segment profit year-to-year change (as a percent)	(5.90%)		(0.50%)
Segment profit margin (as a percent)	47.50%	49.20%	46.90%	45.20%

Segments - Revenue Reconciliati

Segments - Revenue Reconciliation (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenue
Revenue	$ 14,968	$ 14,752	$ 45,199	$ 44,479
Operating Segments
Revenue
Revenue	14,900	14,582	44,985	43,988
Other
Revenue
Other‒divested businesses	0	103	35	298
Other revenue	$ 68	$ 66	$ 178	$ 193

Segments - Pre-Tax Income Recon

Segments - Pre-Tax Income Reconciliation (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pre-tax income from continuing operations
Amortization of acquired intangible assets	$ (482)	$ (414)	$ (1,348)	$ (1,194)
Acquisition-related (charges)/income	(10)	(25)	(106)	(35)
Non-operating retirement-related (costs)/income	(2,797)	12	(2,991)	16
Stock-based compensation	(330)	(286)	(966)	(843)
Net interest excluding the Financing segment	(265)	(262)	(706)	(704)
Workforce rebalancing charges	(306)	(34)	(698)	(410)
Other-divested businesses	(4)	28	231	63
Total pre-tax income/(loss) from continuing operations	(802)	1,873	2,491	4,931
Pension settlement charge	2,700		2,725	0
Operating Segments
Pre-tax income from continuing operations
Total pre-tax income/(loss) from continuing operations	3,037	2,869	8,670	8,110
Unallocated corporate amounts and other
Pre-tax income from continuing operations
Total pre-tax income/(loss) from continuing operations	$ 355	$ (15)	$ 404	$ (72)

Acquisitions & Divestitures - A

Acquisitions & Divestitures - Acquisitions (Details) $ / shares in Units, € in Millions, $ in Millions			3 Months Ended	9 Months Ended
	Jul. 01, 2024 USD ($)	Jul. 01, 2024 EUR (€)	Dec. 31, 2024 USD ($) $ / shares	Sep. 30, 2024 USD ($) acquisition	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Acquisitions
Goodwill				$ 61,092	$ 60,178	$ 55,949
Software
Acquisitions
Goodwill				47,581	46,447	42,712
Consulting
Acquisitions
Goodwill				9,122	8,883	8,409
Infrastructure
Acquisitions
Goodwill				$ 4,390	$ 4,384	$ 4,363
2024 Acquisitions
Acquisitions
Percentage of business acquired (as a percent)				100%
Aggregate acquisitions cost				$ 2,798
2024 Acquisitions | Software
Acquisitions
Number of acquisitions | acquisition				5
2024 Acquisitions | Consulting
Acquisitions
Number of acquisitions | acquisition				3
Other Acquisitions
Acquisitions
Goodwill				$ 390
Estimated percent of goodwill deductible for tax purposes				12%
Weighted average useful life				6 years 6 months
Other Acquisitions | Software
Acquisitions
Goodwill				$ 166
Other Acquisitions | Consulting
Acquisitions
Goodwill				216
Other Acquisitions | Infrastructure
Acquisitions
Goodwill				8
StreamSets and webMethods
Acquisitions
Aggregate acquisitions cost	$ 2,300	€ 2,130
Goodwill				$ 1,072
Estimated percent of goodwill deductible for tax purposes				56%
Weighted average useful life				7 years
StreamSets and webMethods | Software
Acquisitions
Goodwill				$ 1,072
HashiCorp | Forecast
Acquisitions
Aggregate acquisitions cost			$ 6,400
Business acquisition, cash per share (in dollars per share) | $ / shares			$ 35

Acquisitions & Divestitures - P

Acquisitions & Divestitures - Purchase Price Allocation (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Acquisitions
Goodwill	$ 61,092	$ 60,178	$ 55,949
2024 Acquisitions | Client relationships | Minimum
Acquisitions
Weighted average useful life	1 year
2024 Acquisitions | Client relationships | Maximum
Acquisitions
Weighted average useful life	7 years
2024 Acquisitions | Completed technology | Minimum
Acquisitions
Weighted average useful life	5 years
2024 Acquisitions | Completed technology | Maximum
Acquisitions
Weighted average useful life	7 years
2024 Acquisitions | Trademarks | Minimum
Acquisitions
Weighted average useful life	2 years
2024 Acquisitions | Trademarks | Maximum
Acquisitions
Weighted average useful life	7 years
StreamSets and webMethods
Acquisitions
Current assets	$ 364
Property, plant and equipment/noncurrent assets	12
Goodwill	1,072
Total assets acquired	2,723
Current liabilities	209
Noncurrent liabilities	251
Total liabilities assumed	461
Total purchase price	$ 2,262
Weighted average useful life	7 years
StreamSets and webMethods | Client relationships
Acquisitions
Intangible assets	$ 680
StreamSets and webMethods | Completed technology
Acquisitions
Intangible assets	550
StreamSets and webMethods | Trademarks
Acquisitions
Intangible assets	45
Other Acquisitions
Acquisitions
Current assets	57
Property, plant and equipment/noncurrent assets	9
Goodwill	390
Total assets acquired	605
Current liabilities	39
Noncurrent liabilities	31
Total liabilities assumed	70
Total purchase price	$ 535
Weighted average useful life	6 years 6 months
Other Acquisitions | Client relationships
Acquisitions
Intangible assets	$ 82
Other Acquisitions | Completed technology
Acquisitions
Intangible assets	63
Other Acquisitions | Trademarks
Acquisitions
Intangible assets	$ 4

Acquisitions & Divestitures - D

Acquisitions & Divestitures - Divestitures (Details) - Discontinued Operations, Disposed of by Sale - The Weather Company - USD ($) $ in Millions		9 Months Ended
	Jan. 31, 2024	Sep. 30, 2024
Divestitures
Consideration	$ 1,100
Contingent consideration	250
Cash consideration received	750
Financing receivable	$ 100	$ 100
Seller financing loan term	7 years
Pre-tax gain on sale of business		$ 241
Contingent Consideration, Attainment Of Certain Investment Return Metrics
Divestitures
Contingent consideration	$ 200

Acquisitions & Divestitures - S

Acquisitions & Divestitures - Sale of Assets (Details) - USD ($) $ in Millions			3 Months Ended	9 Months Ended
		Aug. 31, 2024	Sep. 30, 2024	Sep. 30, 2024	Sep. 30, 2023
Divestitures
Proceeds from disposition of property, plant and equipment/other				$ 536	$ 137
Changes in operating assets and liabilities, net of acquisitions/divestitures	[1],[2]			607	$ (1,267)
Disposal Group, Disposed of by Sale, Not Discontinued Operations | QRadar SaaS
Divestitures
Consideration		$ 500
Proceeds from disposition of property, plant and equipment/other		437
Changes in operating assets and liabilities, net of acquisitions/divestitures		63
Gain (loss) on disposition of assets		$ 351	$ 351	$ 351
[1]Prior period has been reclassified to conform to the change in 2024 presentation.[2]Refer to note 1, "Basis of Presentation," for additional information.

Other (Income) and Expense (Det

Other (Income) and Expense (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
	Aug. 31, 2024	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Other Income and Expenses [Abstract]
(Gains)/losses on foreign currency transactions		$ 470	$ (260)	$ 126	$ (338)
(Gains)/losses on derivative instruments		(428)	316	(1)	315
Interest income		(170)	(156)	(597)	(527)
Net (gains)/losses from securities and investment assets		(4)	(5)	(14)	3
Retirement-related costs/(income)		2,797	(12)	2,991	(16)
Other		(422)	(97)	(810)	(158)
Total other (income) and expense		2,244	$ (215)	1,694	(721)
Divestitures
Pension settlement charge		2,700		2,725	$ 0
Disposal Group, Disposed of by Sale, Not Discontinued Operations | QRadar SaaS
Divestitures
Gain (loss) on disposition of assets	$ 351	$ 351		351
Discontinued Operations, Disposed of by Sale | The Weather Company
Divestitures
Pre-tax gain on sale of business				$ 241

Earnings Per Share of Common _3

Earnings Per Share of Common Stock - Computation (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Number of shares on which basic earnings per share is calculated:
Weighted-average shares outstanding during period (in shares)		923,577,526	912,790,387	920,347,948	910,057,739
Add - Incremental shares under stock-based compensation plans (in shares)		0	8,531,982	12,829,572	8,241,752
Add - Incremental shares associated with contingently issuable shares (in shares)		0	2,350,932	2,247,712	2,024,201
Number of shares on which diluted earnings per share is calculated (in shares)		923,577,526	923,673,300	935,425,233	920,323,692
Net income on which basic earnings per share is calculated
Income/(loss) from continuing operations		$ (317)	$ 1,714	$ 3,088	$ 4,229
Income/(loss) from discontinued operations, net of tax		(13)	(10)	21	(15)
Net income/(loss)	[1]	(330)	1,704	3,109	4,214
Net income/(loss) on which diluted earnings per share is calculated
Income/(loss) from continuing operations		(317)	1,714	3,088	4,229
Net income applicable to contingently issuable shares		0	0	0	0
Income/(loss) from continuing operations on which diluted earnings per share is calculated		(317)	1,714	3,088	4,229
Income/(loss) from discontinued operations, net of tax, on which diluted earnings per share is calculated		(13)	(10)	21	(15)
Net income/(loss) on which diluted earnings per share is calculated		$ (330)	$ 1,704	$ 3,109	$ 4,214
Assuming dilution:
Continuing operations (in dollars per share)	[1]	$ (0.34)	$ 1.86	$ 3.30	$ 4.59
Discontinued operations (in dollars per share)	[1]	(0.01)	(0.01)	0.02	(0.02)
Total (in dollars per share)	[1]	(0.36)	1.84	3.32	4.58
Basic:
Continuing operations (in dollars per share)	[1]	(0.34)	1.88	3.36	4.65
Discontinued operations (in dollars per share)	[1]	(0.01)	(0.01)	0.02	(0.02)
Total (in dollars per share)	[1]	$ (0.36)	$ 1.87	$ 3.38	$ 4.63
[1] 2024 includes the impact of a one-time, non-cash pension settlement charge. Refer to note 18, "Retirement-Related Benefits," for additional information.

Earnings Per Share of Common _4

Earnings Per Share of Common Stock - Antidilutive Stock Options (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Stock Options
Antidilutive stock options
Outstanding stock options not included in the computation of diluted earnings per share (in shares)	9,189	536,391	1,018,714	2,346,268
Stock-based compensation plans
Antidilutive stock options
Outstanding stock options not included in the computation of diluted earnings per share (in shares)	12,348,507
Contingently issuable shares
Antidilutive stock options
Outstanding stock options not included in the computation of diluted earnings per share (in shares)	2,520,759

Financial Assets & Liabilitie_2

Financial Assets & Liabilities - Impairment (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Investments, All Other Investments [Abstract]
Impairment for credit losses	$ 0	$ 0	$ 0	$ 0

Financial Assets & Liabilitie_3

Financial Assets & Liabilities - Fair Value Measurements (Details) - USD ($)	Sep. 30, 2024	Jan. 31, 2024	Dec. 31, 2023
Financial assets and financial liabilities measured at fair value on a recurring basis:
Debt securities - current	$ 505,000,000		$ 373,000,000
Foreign Exchange Call Option
Financial assets and financial liabilities measured at fair value on a recurring basis:
Derivatives not designated as hedging - Assets	0		62,000,000
Discontinued Operations, Disposed of by Sale | The Weather Company
Financial assets and financial liabilities measured at fair value on a recurring basis:
Financing receivable	100,000,000	$ 100,000,000
Fair Value, Recurring
Financial assets and financial liabilities measured at fair value on a recurring basis:
Cash equivalents	6,763,000,000		7,699,000,000
Total assets	7,499,000,000		8,446,000,000
Total liabilities	500,000,000		593,000,000
Fair Value, Recurring | Prepaid Expenses and Other Current Assets
Financial assets and financial liabilities measured at fair value on a recurring basis:
Derivative assets	84,000,000		304,000,000
Fair Value, Recurring | Other Noncurrent Assets
Financial assets and financial liabilities measured at fair value on a recurring basis:
Derivative assets	41,000,000		37,000,000
Fair Value, Recurring | Other Current Liabilities
Financial assets and financial liabilities measured at fair value on a recurring basis:
Derivative liabilities	248,000,000		294,000,000
Fair Value, Recurring | Other Noncurrent Liabilities
Financial assets and financial liabilities measured at fair value on a recurring basis:
Derivative liabilities	252,000,000		299,000,000
Fair Value, Recurring | Level 1
Financial assets and financial liabilities measured at fair value on a recurring basis:
Equity investments	0		25,000,000
Fair Value, Recurring | Level 1 | Money market funds
Financial assets and financial liabilities measured at fair value on a recurring basis:
Cash equivalents	432,000,000		494,000,000
Fair Value, Recurring | Level 2
Financial assets and financial liabilities measured at fair value on a recurring basis:
Debt securities - current	505,000,000		373,000,000
Fair Value, Recurring | Level 2 | Interest rate contracts
Financial assets and financial liabilities measured at fair value on a recurring basis:
Derivatives designated as hedging - Assets	11,000,000		2,000,000
Derivatives designated as hedging - Liabilities	218,000,000		299,000,000
Fair Value, Recurring | Level 2 | Foreign exchange contracts
Financial assets and financial liabilities measured at fair value on a recurring basis:
Derivatives designated as hedging - Assets	60,000,000		131,000,000
Derivatives designated as hedging - Liabilities	276,000,000		275,000,000
Derivatives not designated as hedging - Assets	17,000,000		115,000,000
Derivatives not designated as hedging - Liabilities	6,000,000		19,000,000
Fair Value, Recurring | Level 2 | Equity contracts
Financial assets and financial liabilities measured at fair value on a recurring basis:
Derivatives not designated as hedging - Assets	37,000,000		93,000,000
Derivatives not designated as hedging - Liabilities	0		0
Fair Value, Recurring | Level 2 | Time deposits and certificates of deposit
Financial assets and financial liabilities measured at fair value on a recurring basis:
Cash equivalents	6,331,000,000		7,206,000,000
Fair Value, Recurring | Level 2 And 3
Financial assets and financial liabilities measured at fair value on a recurring basis:
Debt securities - noncurrent	$ 107,000,000		$ 8,000,000

Financial Assets & Liabilitie_4

Financial Assets & Liabilities - Not Measured at Fair Value (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Long-Term Debt
Long-term debt	$ 52,980	$ 50,121
Fair value of long-term debt	$ 51,718	$ 48,284

Financing Receivables - Payment

Financing Receivables - Payment Terms (Details)	9 Months Ended
	Sep. 30, 2024
Loans Receivable | Maximum
Financing receivables
Financing receivable, payment terms	7 years
Finance Leases Portfolio Segment | Maximum
Financing receivables
Financing receivable, payment terms	5 years
Commercial Financing Receivables | Minimum
Financing receivables
Financing receivable, payment terms	30 days
Commercial Financing Receivables | Maximum
Financing receivables
Financing receivable, payment terms	60 days

Financing Receivables - Compone

Financing Receivables - Components of Financing Receivables (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Components of the company's financing receivables
Net investment in lease, gross	$ 3,750	$ 4,261
Net investment in lease, unearned income	(370)	(429)
Net investment in lease, unguaranteed residual value	457	458
Net investment in lease, amortized cost	3,837	4,290
Net investment in lease, allowance for credit loss	(51)	(63)
Total net investment in lease, net	3,786	4,227
Financing receivable and net investment in lease, gross	11,220	13,173
Financing receivable and net investment in lease, unearned income	(850)	(915)
Financing receivable and net investment in lease, unguaranteed residual value	457	458
Financing receivable and net investment in lease, amortized cost	10,827	12,716
Financing receivable and net investment in lease, allowance for credit loss	(131)	(156)
Financing receivable and net investment in lease, net	10,696	12,560
Asset Pledged as Collateral
Components of the company's financing receivables
Amortized cost	289	232
Current portion
Components of the company's financing receivables
Net investment in lease, current	1,570	1,520
Financing receivable and net investment in lease, net	5,765	6,793
Noncurrent portion
Components of the company's financing receivables
Net investment in lease, noncurrent	2,216	2,707
Financing receivable and net investment in lease, net	4,931	5,766
Loans Receivable
Components of the company's financing receivables
Financing receivables, gross	6,286	7,060
Unearned income	(480)	(486)
Amortized cost	5,806	6,574
Allowance for credit losses	(75)	(87)
Total financing receivables, net	5,731	6,486
Loans Receivable | Current portion
Components of the company's financing receivables
Total financing receivables, net	3,017	3,427
Loans Receivable | Noncurrent portion
Components of the company's financing receivables
Total financing receivables, net	2,714	3,059
Held for Investment
Components of the company's financing receivables
Financing receivables, gross	675	1,160
Amortized cost	675	1,160
Allowance for credit losses	(5)	(6)
Total financing receivables, net	670	1,155
Held for Investment | Current portion
Components of the company's financing receivables
Total financing receivables, net	670	1,155
Held for Sale
Components of the company's financing receivables
Financing receivables, gross	509	692
Amortized cost	509	692
Total financing receivables, net	509	692
Held for Sale | Current portion
Components of the company's financing receivables
Total financing receivables, net	$ 509	$ 692

Financing Receivables - Transfe

Financing Receivables - Transfer of Financing Assets (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Jan. 31, 2024	Dec. 31, 2023	Nov. 30, 2023
Financing receivables
Financing receivable transferred, net gain (loss)	$ (49)	$ (69)
Commercial Financing Receivables
Financing receivables
Financing receivables transferred	5,590	6,453
Financing receivables transferred and uncollected	$ 691	$ 836
Commercial Financing Receivables | Third Party Investor
Financing receivables
Transfer of financial assets, sales period				1 year
Commercial Financing Receivables | Third Party Investor | Maximum
Financing receivables
Financing receivables to be sold			$ 1,300		$ 3,000

Financing Receivables - By Port

Financing Receivables - By Portfolio Segment (Details) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2024 USD ($) class	Dec. 31, 2023 USD ($) class
Financing receivables
Amortized cost	$ 10,827	$ 12,716
Allowance for credit losses:
Allowance for credit losses, beginning balance	156
Allowance for credit losses, ending balance	$ 131	$ 156
Client Financing Receivables
Financing receivables
Number of classes of financing receivable | class	3	3
Amortized cost	$ 9,643	$ 10,863
Allowance for credit losses:
Allowance for credit losses, beginning balance	150	168
Write-offs	(2)	(18)
Recoveries	1	5
Additions/(releases)	(16)	(12)
Other	(7)	8
Allowance for credit losses, ending balance	126	150
Client Financing Receivables | Americas
Financing receivables
Amortized cost	5,731	6,488
Allowance for credit losses:
Allowance for credit losses, beginning balance	92	88
Write-offs	(1)	(9)
Recoveries	0	0
Additions/(releases)	(8)	5
Other	(7)	7
Allowance for credit losses, ending balance	75	92
Client Financing Receivables | Europe/Middle East/Africa
Financing receivables
Amortized cost	2,531	3,007
Allowance for credit losses:
Allowance for credit losses, beginning balance	48	60
Write-offs	(1)	(1)
Recoveries	0	2
Additions/(releases)	(6)	(14)
Other	0	1
Allowance for credit losses, ending balance	41	48
Client Financing Receivables | Asia Pacific
Financing receivables
Amortized cost	1,381	1,368
Allowance for credit losses:
Allowance for credit losses, beginning balance	11	20
Write-offs	0	(8)
Recoveries	0	3
Additions/(releases)	(2)	(4)
Other	0	(1)
Allowance for credit losses, ending balance	$ 10	$ 11

Financing Receivables - Past Du

Financing Receivables - Past Due (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Past Due Financing Receivable
Amortized cost	$ 10,827	$ 12,716
Client Financing Receivables
Past Due Financing Receivable
Amortized cost	9,643	10,863
Amortized Cost Not Accruing	103	110
Impaired financing receivables, related allowance	99	106
Client Financing Receivables | Financial Asset, Equal to or Greater than 90 Days Past Due
Past Due Financing Receivable
Amortized cost	120	151
Amortized Cost > 90 Days and Accruing	20	43
Billed Invoices > 90 Days and Accruing	4	7
Client Financing Receivables | Americas
Past Due Financing Receivable
Amortized cost	5,731	6,488
Amortized Cost Not Accruing	66	71
Client Financing Receivables | Americas | Financial Asset, Equal to or Greater than 90 Days Past Due
Past Due Financing Receivable
Amortized cost	80	111
Amortized Cost > 90 Days and Accruing	17	40
Billed Invoices > 90 Days and Accruing	1	6
Client Financing Receivables | Europe/Middle East/Africa
Past Due Financing Receivable
Amortized cost	2,531	3,007
Amortized Cost Not Accruing	30	31
Client Financing Receivables | Europe/Middle East/Africa | Financial Asset, Equal to or Greater than 90 Days Past Due
Past Due Financing Receivable
Amortized cost	32	31
Amortized Cost > 90 Days and Accruing	3	1
Billed Invoices > 90 Days and Accruing	3	1
Client Financing Receivables | Asia Pacific
Past Due Financing Receivable
Amortized cost	1,381	1,368
Amortized Cost Not Accruing	7	8
Client Financing Receivables | Asia Pacific | Financial Asset, Equal to or Greater than 90 Days Past Due
Past Due Financing Receivable
Amortized cost	8	9
Amortized Cost > 90 Days and Accruing	1	1
Billed Invoices > 90 Days and Accruing	$ 0	$ 0

Financing Receivables - Credit

Financing Receivables - Credit Quality Year of Origination (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Amortized cost for each class of receivables, by credit quality indicator
Financing receivable and net investment in lease, amortized cost	$ 10,827	$ 12,716
Americas | Aaa – Baa3
Amortized cost for each class of receivables, by credit quality indicator
Originated in current fiscal year	1,377	2,292
Originated in fiscal year before latest fiscal year	1,589	1,645
Originated two years before latest fiscal year	1,106	655
Originated three years before latest fiscal year	335	205
Originated four years before latest fiscal year	57	104
Originated five or more years before latest fiscal year	67	55
Financing receivable and net investment in lease, amortized cost	4,531	4,955
Americas | Ba1 – C
Amortized cost for each class of receivables, by credit quality indicator
Originated in current fiscal year	481	1,028
Originated in fiscal year before latest fiscal year	467	268
Originated two years before latest fiscal year	141	85
Originated three years before latest fiscal year	35	79
Originated four years before latest fiscal year	26	23
Originated five or more years before latest fiscal year	50	50
Financing receivable and net investment in lease, amortized cost	1,201	1,533
Europe/Middle East/Africa | Aaa – Baa3
Amortized cost for each class of receivables, by credit quality indicator
Originated in current fiscal year	448	750
Originated in fiscal year before latest fiscal year	419	687
Originated two years before latest fiscal year	479	284
Originated three years before latest fiscal year	158	106
Originated four years before latest fiscal year	42	58
Originated five or more years before latest fiscal year	46	16
Financing receivable and net investment in lease, amortized cost	1,591	1,901
Europe/Middle East/Africa | Ba1 – C
Amortized cost for each class of receivables, by credit quality indicator
Originated in current fiscal year	264	520
Originated in fiscal year before latest fiscal year	314	374
Originated two years before latest fiscal year	245	83
Originated three years before latest fiscal year	45	60
Originated four years before latest fiscal year	27	38
Originated five or more years before latest fiscal year	45	30
Financing receivable and net investment in lease, amortized cost	940	1,106
Asia Pacific | Aaa – Baa3
Amortized cost for each class of receivables, by credit quality indicator
Originated in current fiscal year	423	501
Originated in fiscal year before latest fiscal year	321	386
Originated two years before latest fiscal year	287	110
Originated three years before latest fiscal year	64	97
Originated four years before latest fiscal year	48	40
Originated five or more years before latest fiscal year	32	39
Financing receivable and net investment in lease, amortized cost	1,175	1,174
Asia Pacific | Ba1 – C
Amortized cost for each class of receivables, by credit quality indicator
Originated in current fiscal year	97	70
Originated in fiscal year before latest fiscal year	29	42
Originated two years before latest fiscal year	30	40
Originated three years before latest fiscal year	25	22
Originated four years before latest fiscal year	13	8
Originated five or more years before latest fiscal year	12	12
Financing receivable and net investment in lease, amortized cost	$ 206	$ 195

Leases - Lease Amounts Included

Leases - Lease Amounts Included in Consolidated Income Statement (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Lease income — sales-type and direct financing leases:
Sales-type lease selling price	$ 48	$ 190	$ 528	$ 528
Less: Carrying value of underlying assets	(12)	(42)	(106)	(133)
Gross profit	37	148	423	395
Interest income on lease receivables	67	58	206	176
Total sales-type and direct financing lease income	104	206	628	571
Lease income — operating leases	13	20	47	71
Variable lease income	16	12	54	47
Total lease income	$ 133	$ 238	$ 729	$ 689

Intangible Assets Including G_3

Intangible Assets Including Goodwill - Intangible Assets by Class (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Intangible asset balances by major asset class
Gross Carrying Amount	$ 19,506	$ 18,265
Accumulated Amortization	(8,416)	(7,229)
Net Carrying Amount	11,090	11,036
Amount of foreign currency translation increase (decrease)	6	50
Capitalized software
Intangible asset balances by major asset class
Gross Carrying Amount	1,450	1,636
Accumulated Amortization	(634)	(762)
Net Carrying Amount	816	874
Client relationships
Intangible asset balances by major asset class
Gross Carrying Amount	9,793	9,053
Accumulated Amortization	(4,218)	(3,500)
Net Carrying Amount	5,574	5,553
Completed technology
Intangible asset balances by major asset class
Gross Carrying Amount	6,258	5,713
Accumulated Amortization	(3,019)	(2,510)
Net Carrying Amount	3,239	3,203
Patents/trademarks
Intangible asset balances by major asset class
Gross Carrying Amount	1,869	1,821
Accumulated Amortization	(514)	(436)
Net Carrying Amount	1,355	1,385
Other
Intangible asset balances by major asset class
Gross Carrying Amount	136	41
Accumulated Amortization	(30)	(20)
Net Carrying Amount	$ 106	$ 22

Intangible Assets Including G_4

Intangible Assets Including Goodwill - Intangible Assets Activity (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets, increase (decrease)			$ 53
Acquired intangibles			1,424
Intangible asset amortization expense	$ 705	$ 572	1,910	$ 1,676
Retirement of fully amortized intangible assets			$ 681

Intangible Assets Including G_5

Intangible Assets Including Goodwill - Future Amortization (Details) $ in Millions	Sep. 30, 2024 USD ($)
Future amortization expense, by year
Remainder of 2024	$ 643
2025	2,306
2026	2,116
2027	1,939
2028	1,576
Thereafter	2,510
Capitalized software
Future amortization expense, by year
Remainder of 2024	155
2025	383
2026	217
2027	60
2028	0
Thereafter	0
Acquired intangibles
Future amortization expense, by year
Remainder of 2024	488
2025	1,923
2026	1,899
2027	1,879
2028	1,576
Thereafter	$ 2,510

Intangible Assets Including G_6

Intangible Assets Including Goodwill - Goodwill by Segment (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Changes in Goodwill Balances
Beginning Balance	$ 60,178	$ 55,949
Goodwill Additions	1,460	3,953
Purchase Price Adjustments	(48)	(15)
Divestitures	(465)	0
Foreign Currency Translation and Other Adjustments	(33)	291
Ending Balance	61,092	60,178
Goodwill impairment losses	0	0
Goodwill accumulated impairment losses	0	0
Software
Changes in Goodwill Balances
Beginning Balance	46,447	42,712
Goodwill Additions	1,237	3,538
Purchase Price Adjustments	(44)	(17)
Divestitures	0	0
Foreign Currency Translation and Other Adjustments	(59)	214
Ending Balance	47,581	46,447
Consulting
Changes in Goodwill Balances
Beginning Balance	8,883	8,409
Goodwill Additions	215	403
Purchase Price Adjustments	(3)	2
Divestitures	(1)	0
Foreign Currency Translation and Other Adjustments	27	69
Ending Balance	9,122	8,883
Infrastructure
Changes in Goodwill Balances
Beginning Balance	4,384	4,363
Goodwill Additions	8	12
Purchase Price Adjustments	(1)	0
Divestitures	0	0
Foreign Currency Translation and Other Adjustments	(2)	8
Ending Balance	4,390	4,384
Other
Changes in Goodwill Balances
Beginning Balance	464	464
Goodwill Additions	0	0
Purchase Price Adjustments	0	0
Divestitures	(464)	0
Foreign Currency Translation and Other Adjustments	0	0
Ending Balance	$ 0	$ 464

Borrowings - Short-Term Debt (D

Borrowings - Short-Term Debt (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Debt Disclosure [Abstract]
Short-term debt	$ 3,599	$ 6,426

Borrowings - Long-Term Debt, Co

Borrowings - Long-Term Debt, Components (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Borrowings
Long-term debt, gross	$ 57,565	$ 57,598
Long-term debt excluding finance lease obligations	56,686	57,099
Less: net unamortized discount	837	838
Less: net unamortized debt issuance costs	176	154
Add: fair value adjustment	19	(60)
Total	56,570	56,546
Less: current maturities	3,590	6,425
Total long-term debt (excluding current portion)	52,980	50,121
United States of America, Dollars
Borrowings
Long-term debt, gross	35,815	35,317
Euro Member Countries, Euro
Borrowings
Long-term debt, gross	18,693	19,335
Maturing 2024 | United States of America, Dollars
Borrowings
Long-term debt, gross	$ 1	5,003
Debt instrument, weighted-average interest rate (as a percent)	3.50%
Maturing 2024 | Euro Member Countries, Euro
Borrowings
Long-term debt, gross	$ 0	829
Debt instrument, weighted-average interest rate (as a percent)	1.10%
Maturing 2025 | United States of America, Dollars
Borrowings
Long-term debt, gross	$ 1,602	1,601
Debt instrument, weighted-average interest rate (as a percent)	5.10%
Maturing 2025 | Euro Member Countries, Euro
Borrowings
Long-term debt, gross	$ 3,348	3,315
Debt instrument, weighted-average interest rate (as a percent)	1.60%
Maturing 2026 | United States of America, Dollars
Borrowings
Long-term debt, gross	$ 5,800	5,201
Debt instrument, weighted-average interest rate (as a percent)	3.70%
Maturing 2027 | United States of America, Dollars
Borrowings
Long-term debt, gross	$ 4,119	3,619
Debt instrument, weighted-average interest rate (as a percent)	3.30%
Maturing 2027 | Euro Member Countries, Euro
Borrowings
Long-term debt, gross	$ 2,232	2,210
Debt instrument, weighted-average interest rate (as a percent)	2.30%
Maturing 2028 | United States of America, Dollars
Borrowings
Long-term debt, gross	$ 1,313	1,313
Debt instrument, weighted-average interest rate (as a percent)	5%
Maturing 2028 | Euro Member Countries, Euro
Borrowings
Long-term debt, gross	$ 2,009	1,989
Debt instrument, weighted-average interest rate (as a percent)	0.70%
Maturing 2029 | United States of America, Dollars
Borrowings
Long-term debt, gross	$ 3,750	3,250
Debt instrument, weighted-average interest rate (as a percent)	3.60%
Maturing 2029 | Euro Member Countries, Euro
Borrowings
Long-term debt, gross	$ 1,116	1,105
Debt instrument, weighted-average interest rate (as a percent)	1.50%
Maturing 2030 | United States of America, Dollars
Borrowings
Long-term debt, gross	$ 1,350	1,350
Debt instrument, weighted-average interest rate (as a percent)	2%
Maturing 2030 | Euro Member Countries, Euro
Borrowings
Long-term debt, gross	$ 1,116	1,105
Debt instrument, weighted-average interest rate (as a percent)	0.90%
Maturing 2031 | United States of America, Dollars
Borrowings
Long-term debt, gross	$ 500	0
Debt instrument, weighted-average interest rate (as a percent)	4.80%
Maturing 2031 | Euro Member Countries, Euro
Borrowings
Long-term debt, gross	$ 2,790	2,762
Debt instrument, weighted-average interest rate (as a percent)	2.70%
Maturing 2032 | United States of America, Dollars
Borrowings
Long-term debt, gross	$ 1,850	1,850
Debt instrument, weighted-average interest rate (as a percent)	4.40%
Maturing 2032 | Euro Member Countries, Euro
Borrowings
Long-term debt, gross	$ 1,786	1,768
Debt instrument, weighted-average interest rate (as a percent)	0.70%
Maturing 2033 | United States of America, Dollars
Borrowings
Long-term debt, gross	$ 750	750
Debt instrument, weighted-average interest rate (as a percent)	4.80%
Maturing 2034 | United States of America, Dollars
Borrowings
Long-term debt, gross	$ 1,000	0
Debt instrument, weighted-average interest rate (as a percent)	4.90%
Maturing 2034 | Euro Member Countries, Euro
Borrowings
Long-term debt, gross	$ 1,116	1,105
Debt instrument, weighted-average interest rate (as a percent)	1.30%
Maturing 2035 | Euro Member Countries, Euro
Borrowings
Long-term debt, gross	$ 1,116	1,105
Debt instrument, weighted-average interest rate (as a percent)	3.80%
Maturing 2038 | United States of America, Dollars
Borrowings
Long-term debt, gross	$ 83	83
Debt instrument, weighted-average interest rate (as a percent)	8%
Maturing 2038 | United Kingdom, Pounds
Borrowings
Long-term debt, gross	$ 1,006	955
Debt instrument, weighted-average interest rate (as a percent)	4.90%
Maturing 2039 | United States of America, Dollars
Borrowings
Long-term debt, gross	$ 2,745	2,745
Debt instrument, weighted-average interest rate (as a percent)	4.50%
Maturing 2040 | United States of America, Dollars
Borrowings
Long-term debt, gross	$ 650	650
Debt instrument, weighted-average interest rate (as a percent)	2.90%
Maturing 2040 | Euro Member Countries, Euro
Borrowings
Long-term debt, gross	$ 949	939
Debt instrument, weighted-average interest rate (as a percent)	1.20%
Maturing 2042 | United States of America, Dollars
Borrowings
Long-term debt, gross	$ 1,107	1,107
Debt instrument, weighted-average interest rate (as a percent)	4%
Maturing 2044 | United States of America, Dollars
Borrowings
Long-term debt, gross	$ 1,000	0
Debt instrument, weighted-average interest rate (as a percent)	5.30%
Maturing 2043 | Euro Member Countries, Euro
Borrowings
Long-term debt, gross	$ 1,116	1,105
Debt instrument, weighted-average interest rate (as a percent)	4%
Maturing 2045 | United States of America, Dollars
Borrowings
Long-term debt, gross	$ 27	27
Debt instrument, weighted-average interest rate (as a percent)	7%
Maturing 2046 | United States of America, Dollars
Borrowings
Long-term debt, gross	$ 650	650
Debt instrument, weighted-average interest rate (as a percent)	4.70%
Maturing 2049 | United States of America, Dollars
Borrowings
Long-term debt, gross	$ 3,000	3,000
Debt instrument, weighted-average interest rate (as a percent)	4.30%
Maturing 2050 | United States of America, Dollars
Borrowings
Long-term debt, gross	$ 750	750
Debt instrument, weighted-average interest rate (as a percent)	3%
Maturing 2052 | United States of America, Dollars
Borrowings
Long-term debt, gross	$ 1,400	1,400
Debt instrument, weighted-average interest rate (as a percent)	4.20%
Maturing 2053 | United States of America, Dollars
Borrowings
Long-term debt, gross	$ 650	650
Debt instrument, weighted-average interest rate (as a percent)	5.10%
Maturing 2054 | United States of America, Dollars
Borrowings
Long-term debt, gross	$ 1,400	0
Debt instrument, weighted-average interest rate (as a percent)	5.30%
Maturing 2096 | United States of America, Dollars
Borrowings
Long-term debt, gross	$ 316	316
Debt instrument, weighted-average interest rate (as a percent)	7.10%
Maturing 2026-2028 | Japan, Yen
Borrowings
Long-term debt, gross	$ 887	1,251
Debt instrument, weighted-average interest rate (as a percent)	0.70%
Maturing 2024-2027 | Other currencies
Borrowings
Long-term debt, gross	$ 285	241
Debt instrument, weighted-average interest rate (as a percent)	13.80%
Finance Lease Obligations Maturing 2024-2034
Borrowings
Finance lease obligations	$ 878	$ 499
Finance lease obligations, interest rate (as a percent)	4.90%

Borrowings - Long-Term Debt, _2

Borrowings - Long-Term Debt, Covenants (Details) $ in Millions	9 Months Ended
	Sep. 30, 2024 USD ($)
Borrowings
Limit based on net tangible assets	10%
Revolving Credit Facility
Borrowings
Minimum net interest expense ratio	2.20
Default provision on credit facility	$ 500

Borrowings - Long-Term Debt, De

Borrowings - Long-Term Debt, Debt Issued (Details) - US dollar, fixed-rate notes issued 2024 $ in Billions	Feb. 05, 2024 USD ($)
Notes Issued
Aggregate amount of debt issued	$ 5.5
Minimum
Notes Issued
Credit facility term	2 years
Coupon rate (as a percent)	4.60%
Maximum
Notes Issued
Credit facility term	30 years
Coupon rate (as a percent)	5.30%

Borrowings - Pre-Swap Obligatio

Borrowings - Pre-Swap Obligations (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Pre-swap annual contractual obligations of long-term debt outstanding
Remainder of 2024	$ 93
2025	5,296
2026	6,321
2027	6,501
2028	4,043
Thereafter	35,311
Total	$ 57,565	$ 57,598

Borrowings - Interest on Debt (

Borrowings - Interest on Debt (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Interest on Debt
Interest capitalized	$ 10	$ 7
Total interest paid and accrued	1,552	1,464
Cost of financing
Interest on Debt
Interest expense	254	255
Interest expense
Interest on Debt
Interest expense	$ 1,288	$ 1,202

Borrowings - Lines of Credit (D

Borrowings - Lines of Credit (Details)	9 Months Ended
	Sep. 30, 2024 USD ($)
Revolving Credit Facility
Lines of Credit
Amount of credit facility	$ 10,000,000,000
Borrowings outstanding	0
Three-Year Credit Agreement
Lines of Credit
Amount of credit facility	$ 2,500,000,000
Credit facility term	3 years
Five-Year Credit Agreement
Lines of Credit
Amount of credit facility	$ 7,500,000,000
Credit facility term	5 years

Commitments - Extensions of Cre

Commitments - Extensions of Credit (Details) - USD ($) $ in Billions	Sep. 30, 2024	Dec. 31, 2023
Extended lines of credit
Other Commitments [Line Items]
Unused amounts in lines of credit to third-party entities and commitments for future financing to clients	$ 1.8	$ 1.4
Financing for client purchase agreements
Other Commitments [Line Items]
Unused amounts in lines of credit to third-party entities and commitments for future financing to clients	$ 1.8	$ 1.9

Commitments - Standard Warranty

Commitments - Standard Warranty Liability (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Movement in standard warranty liability
Beginning Balance	$ 65	$ 79
Current-period accruals	53	53
Accrual adjustments to reflect actual experience	7	(14)
Charges incurred	(61)	(64)
Ending Balance	$ 64	$ 54

Commitments - Extended Warranty

Commitments - Extended Warranty Liability (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Movement in deferred income
Amortization of deferred revenue	$ (9,500)
Deferred income (current)	12,882		$ 13,451
Deferred income (noncurrent)	3,666		$ 3,533
Extended Warranty
Movement in deferred income
Beginning Balance	184	$ 272
Revenue deferred for new extended warranty contracts	20	55
Amortization of deferred revenue	(88)	(122)
Other	(3)	(4)
Ending Balance	112	201
Deferred income (current)	72	119
Deferred income (noncurrent)	$ 40	$ 82

Contingencies (Details)

Contingencies (Details) $ in Millions			9 Months Ended
	May 30, 2022 USD ($)	Jun. 08, 2021 USD ($)	Sep. 30, 2024 USD ($) country
Brazil Tax Matters
Loss Contingencies
Damages sought, value			$ 300
BMC v. IBM
Loss Contingencies
Direct damages sought, value	$ 718
Punitive damages sought, value	$ 718
Minimum
Loss Contingencies
Clients' presence in number of countries | country			175
Minimum | IBM v. GF
Loss Contingencies
Damages sought, value		$ 1,500

Equity Activity - Reclassificat

Equity Activity - Reclassifications and Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Cost	$ 6,548	$ 6,729	$ 20,087	$ 20,446
SG&A expense	4,911	4,458	14,823	14,212
Other (income) and expense	2,244	(215)	1,694	(721)
Interest expense	429	412	1,288	1,202
Pension settlement charge	2,700		2,725	0
Pension settlement charge, net of tax	2,000
Services
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Cost	5,048	5,217	15,414	15,821
Sales
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Cost	1,404	1,419	4,393	4,329
Financing
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Cost	95	94	281	297
Accumulated Other Comprehensive Income/(Loss)
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Other Comprehensive Income (Loss), before Tax	2,293	714	3,178	1,003
Other comprehensive income/(loss), Tax (Expense)/Benefit	(392)	(313)	(835)	(361)
Other comprehensive income/(loss)	1,900	402	2,343	642
Unrealized gains/(losses) arising during the period, Net of Tax Amount			(100)	326
Reclassification/amortization, Net of Tax Amount			2,443	316
Accumulated Foreign Currency Adjustment Attributable to Parent
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Other Comprehensive Income (Loss), before Tax	(330)	151	(273)	180
Other comprehensive income/(loss), Tax (Expense)/Benefit	270	(164)	49	(142)
Other comprehensive income/(loss)	(60)	(13)	(224)	39
Unrealized gains/(losses) arising during the period, Net of Tax Amount			(224)	39
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Parent
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Other Comprehensive Income (Loss), before Tax	0	0	1	(1)
Other comprehensive income/(loss), Tax (Expense)/Benefit	0	0	0	0
Other comprehensive income/(loss)	0	0	1	(1)
Unrealized gains/(losses) arising during the period, Before Tax Amount	0	0	1	(1)
Unrealized gains/(losses) arising during the period, Tax (Expense)/Benefit	0	0	0	0
Unrealized gains/(losses) arising during the period, Net of Tax Amount	0	0	1	(1)
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Other Comprehensive Income (Loss), before Tax	(449)	333	(142)	330
Other comprehensive income/(loss), Tax (Expense)/Benefit	116	(85)	37	(87)
Other comprehensive income/(loss)	(333)	248	(105)	243
Unrealized gains/(losses) arising during the period, Before Tax Amount	(215)	131	64	279
Unrealized gains/(losses) arising during the period, Tax (Expense)/Benefit	57	(35)	(18)	(77)
Unrealized gains/(losses) arising during the period, Net of Tax Amount	(158)	95	46	203
Reclassification/amortization, Net of Tax Amount			(151)	40
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Cost of services
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Reclassification/amortization, Tax (Expense)/Benefit	1	0	5	(1)
Reclassification/amortization, Net of Tax Amount	(4)	1	(14)	5
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Cost of sales
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Reclassification/amortization, Tax (Expense)/Benefit	1	(1)	10	4
Reclassification/amortization, Net of Tax Amount	(2)	4	(20)	(8)
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Cost of financing
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Reclassification/amortization, Tax (Expense)/Benefit	0	(1)	(1)	(3)
Reclassification/amortization, Net of Tax Amount	1	2	4	9
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | SG&A expense
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Reclassification/amortization, Tax (Expense)/Benefit	0	(1)	3	2
Reclassification/amortization, Net of Tax Amount	0	3	(7)	(4)
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Other (income) and expense
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Reclassification/amortization, Tax (Expense)/Benefit	59	(44)	44	1
Reclassification/amortization, Net of Tax Amount	(175)	131	(132)	(4)
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Interest expense
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Reclassification/amortization, Tax (Expense)/Benefit	(2)	(4)	(6)	(14)
Reclassification/amortization, Net of Tax Amount	6	11	18	43
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Reclassification out of Accumulated Other Comprehensive Income
Reclassifications and Taxes Related to Items of Other Comprehensive Income
SG&A expense	0	4	(10)	(7)
Other (income) and expense	(234)	175	(176)	(6)
Interest expense	8	14	24	57
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Reclassification out of Accumulated Other Comprehensive Income | Services
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Cost	(5)	2	(19)	6
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Reclassification out of Accumulated Other Comprehensive Income | Sales
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Cost	(3)	5	(30)	(12)
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Reclassification out of Accumulated Other Comprehensive Income | Financing
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Cost	2	3	5	12
Accumulated Defined Benefit Plans Adjustment Attributable to Parent
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Other Comprehensive Income (Loss), before Tax	3,072	230	3,592	494
Other comprehensive income/(loss), Tax (Expense)/Benefit	(779)	(63)	(921)	(132)
Other comprehensive income/(loss)	2,293	167	2,672	361
Unrealized gains/(losses) arising during the period, Net of Tax Amount			78	86
Reclassification/amortization, Net of Tax Amount			2,594	276
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Unrealized gains/(losses) arising during the period, Before Tax Amount	0	0	0	0
Unrealized gains/(losses) arising during the period, Tax (Expense)/Benefit	0	0	0	1
Unrealized gains/(losses) arising during the period, Net of Tax Amount	0	0	0	1
Reclassification/amortization, Before Tax Amount	(2)	(2)	(5)	(6)
Reclassification/amortization, Tax (Expense)/Benefit	0	1	1	2
Reclassification/amortization, Net of Tax Amount	(1)	(2)	(4)	(5)
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Unrealized gains/(losses) arising during the period, Before Tax Amount	100	102	101	104
Unrealized gains/(losses) arising during the period, Tax (Expense)/Benefit	(25)	(26)	(23)	(19)
Unrealized gains/(losses) arising during the period, Net of Tax Amount	75	77	78	85
Reclassification/amortization, Before Tax Amount	246	128	765	389
Reclassification/amortization, Tax (Expense)/Benefit	(68)	(37)	(212)	(113)
Reclassification/amortization, Net of Tax Amount	178	91	554	276
Retirement-Related Benefit Plans, Curtailments and Settlements
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Reclassification/amortization, Before Tax Amount	2,727	2	2,731	7
Reclassification/amortization, Tax (Expense)/Benefit	(686)	(1)	(687)	(2)
Reclassification/amortization, Net of Tax Amount	$ 2,041	$ 1	$ 2,044	$ 5

Equity Activity - AOCI Rollforw

Equity Activity - AOCI Rollforward (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at the beginning of the period	$ 24,103	$ 22,271	$ 22,613	$ 22,021
Balance at the end of the period	24,530	23,156	24,530	23,156
Pension settlement charge	2,700		2,725	0
Pension settlement charge, net of tax	2,000
Accumulated Other Comprehensive Income/(Loss)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at the beginning of the period	(18,319)	(16,499)	(18,761)	(16,740)
Other comprehensive income before reclassifications			(100)	326
Amount reclassified from accumulated other comprehensive income			2,443	316
Other comprehensive income/(loss)	1,900	402	2,343	642
Balance at the end of the period	(16,418)	(16,098)	(16,418)	(16,098)
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at the beginning of the period			(106)	(135)
Other comprehensive income before reclassifications	(158)	95	46	203
Amount reclassified from accumulated other comprehensive income			(151)	40
Other comprehensive income/(loss)	(333)	248	(105)	243
Balance at the end of the period	(211)	109	(211)	109
Accumulated Foreign Currency Adjustment Attributable to Parent
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at the beginning of the period			(3,488)	(3,591)
Other comprehensive income before reclassifications			(224)	39
Other comprehensive income/(loss)	(60)	(13)	(224)	39
Balance at the end of the period	(3,713)	(3,552)	(3,713)	(3,552)
Accumulated Defined Benefit Plans Adjustment Attributable to Parent
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at the beginning of the period			(15,165)	(13,013)
Other comprehensive income before reclassifications			78	86
Amount reclassified from accumulated other comprehensive income			2,594	276
Other comprehensive income/(loss)	2,293	167	2,672	361
Balance at the end of the period	(12,493)	(12,652)	(12,493)	(12,652)
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Parent
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at the beginning of the period			(1)	(1)
Other comprehensive income before reclassifications	0	0	1	(1)
Other comprehensive income/(loss)	0	0	1	(1)
Balance at the end of the period	$ (1)	$ (2)	$ (1)	$ (2)

Derivative Financial Instrume_3

Derivative Financial Instruments - Offsetting (Details) € in Millions	9 Months Ended
	Sep. 30, 2024 USD ($)	Jun. 18, 2024 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2023 EUR (€)
Derivative Financial Instruments
Cash collateral rehypothecated	$ 0		$ 7,000,000
Potential reduction in net position of total derivative liabilities	94,000,000		235,000,000
Potential reduction in net position of total derivative assets	94,000,000		235,000,000
Foreign Exchange Call Option
Derivative Financial Instruments
Derivative economic value on expiration		$ 0
Realized loss on derivatives	68,000,000
Fair value of derivatives	0		62,000,000
Foreign Exchange Forward
Derivative Financial Instruments
Notional amount		$ 1,800,000,000
StreamSets and webMethods | Foreign Exchange Call Option
Derivative Financial Instruments
Notional amount			2,300,000,000	€ 2,130
Derivative premium			49,000,000
Other receivables
Derivative Financial Instruments
Right to reclaim cash collateral	5,000,000		11,000,000
Accounts Payable
Derivative Financial Instruments
Obligation to return cash collateral	$ 0		$ 7,000,000

Derivative Financial Instrume_4

Derivative Financial Instruments - Hedging Programs (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2024 USD ($) instrument	Dec. 31, 2023 USD ($) instrument	Jun. 18, 2024 USD ($)
Net Investment Hedging
Derivative Financial Instruments
Notional amount	$ 6,900,000,000	$ 4,900,000,000
Average remaining maturity	9 months 18 days	1 month 6 days
Interest Rate Swap | Fair Value Hedging
Derivative Financial Instruments
Notional amount	$ 6,700,000,000	$ 6,700,000,000
Average remaining maturity	4 years 8 months 12 days	5 years 6 months
Interest Rate Swap | Cash Flow Hedging
Derivative Financial Instruments
Notional amount	$ 0	$ 0
Forward-starting interest rate swaps | Cash Flow Hedging
Derivative Financial Instruments
Number of derivative instruments outstanding | instrument	0	0
Net gains (losses) before taxes in accumulated other comprehensive income/(loss), cash flow hedges	$ (110,000,000)	$ (121,000,000)
Gains (losses) expected to be reclassified to net income within the next 12 months	(14,000,000)
Foreign exchange contracts
Derivative Financial Instruments
Gains (losses) expected to be reclassified to net income within the next 12 months	(63,000,000)
Foreign exchange contracts | Not Designated as Hedging Instrument, Economic Hedge
Derivative Financial Instruments
Notional amount	$ 5,700,000,000	6,700,000,000
Foreign exchange contracts | Not Designated as Hedging Instrument, Economic Hedge | Maximum
Derivative Financial Instruments
Term of contract	1 year
Foreign exchange contracts | Cash Flow Hedging
Derivative Financial Instruments
Notional amount	$ 5,000,000,000	5,200,000,000
Net gains (losses) before taxes in accumulated other comprehensive income/(loss), cash flow hedges	$ (4,000,000)	23,000,000
Maximum length of time hedged	6 years
Foreign exchange contracts | Net Investment Hedging
Derivative Financial Instruments
Notional amount	$ 15,100,000,000	15,900,000,000
Foreign Exchange Forward
Derivative Financial Instruments
Notional amount			$ 1,800,000,000
Foreign Exchange Forward | Cash Flow Hedging
Derivative Financial Instruments
Notional amount	$ 9,800,000,000	$ 9,200,000,000
Average remaining maturity	6 months	7 months 6 days
Net gains (losses) before taxes in accumulated other comprehensive income/(loss), cash flow hedges	$ (105,000,000)	$ 40,000,000
Gains (losses) expected to be reclassified to net income within the next 12 months	$ (160,000,000)
Maximum length of time hedged	2 years
Currency Swap | Cash Flow Hedging
Derivative Financial Instruments
Net gains (losses) before taxes in accumulated other comprehensive income/(loss), cash flow hedges	$ (51,000,000)	(68,000,000)
Gains (losses) expected to be reclassified to net income within the next 12 months	(16,000,000)
Currency Swap | Net Investment Hedging
Derivative Financial Instruments
Notional amount	2,200,000,000
Equity contracts hedging employee compensation obligations | Not Designated as Hedging Instrument, Economic Hedge
Derivative Financial Instruments
Notional amount	$ 1,400,000,000	$ 1,200,000,000

Derivative Financial Instrume_5

Derivative Financial Instruments - Cumulative Basis Adjustments for Fair Value Hedges (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Short-Term Debt
Amounts recorded in the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges
Carrying amount of the hedged item	$ 0	$ (1)
Cumulative hedging adjustments included in the carrying amount-assets/(liabilities)	0	(1)
Long-Term Debt
Amounts recorded in the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges
Carrying amount of the hedged item	(6,704)	(6,629)
Cumulative hedging adjustments included in the carrying amount-assets/(liabilities)	(19)	61
Hedging adjustments on discontinued hedging relationships	$ (166)	$ (200)

Derivative Financial Instrume_6

Derivative Financial Instruments - Effect of Hedge Activity on Income and Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Derivative Instruments, Gain (Loss)
Cost	$ 6,548	$ 6,729	$ 20,087	$ 20,446
SG&A expense	4,911	4,458	14,823	14,212
Other (income) and expense	2,244	(215)	1,694	(721)
Interest expense	429	412	1,288	1,202
Cost of services
Derivative Instruments, Gain (Loss)
Gains/(losses) of total hedge activity	5	(2)	19	(6)
Cost of sales
Derivative Instruments, Gain (Loss)
Gains/(losses) of total hedge activity	3	(5)	30	12
Cost of financing
Derivative Instruments, Gain (Loss)
Gains/(losses) of total hedge activity	(2)	(3)	(9)	(10)
SG&A expense
Derivative Instruments, Gain (Loss)
Gains/(losses) of total hedge activity	83	(58)	168	44
Other (income) and expense
Derivative Instruments, Gain (Loss)
Gains/(losses) of total hedge activity	428	(316)	1	(315)
Interest expense
Derivative Instruments, Gain (Loss)
Gains/(losses) of total hedge activity	(11)	(15)	(45)	(46)
Services
Derivative Instruments, Gain (Loss)
Cost	5,048	5,217	15,414	15,821
Sales
Derivative Instruments, Gain (Loss)
Cost	1,404	1,419	4,393	4,329
Financing
Derivative Instruments, Gain (Loss)
Cost	$ 95	$ 94	$ 281	$ 297

Derivative Financial Instrume_7

Derivative Financial Instruments - Gains and Losses (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Derivative Instruments, Gain (Loss)
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Cost, Interest expense, Selling, general and administrative, Other (income) and expense	Cost, Interest expense, Selling, general and administrative, Other (income) and expense	Cost, Interest expense, Selling, general and administrative, Other (income) and expense	Cost, Interest expense, Selling, general and administrative, Other (income) and expense
Gain (loss) recognized in earnings on derivatives	$ 463	$ (394)	$ (46)	$ (600)
Gain (loss) recognized in earnings attributable to risk being hedged	(222)	167	(79)	238
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Recognized in OCI	(1,290)	782	(131)	843
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Reclassified from AOCI	254	(192)	263	(40)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Amounts Excluded from Effectiveness Testing	11	21	26	81
Interest rate contracts | Cash Flow Hedging
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Recognized in OCI - Cash flow hedges	0	0	0	0
Foreign exchange contracts | Cash Flow Hedging
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Recognized in OCI - Cash flow hedges	(153)	101	147	250
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Recognized in OCI - Amount excluded from the assessment of effectiveness	(62)	29	(84)	29
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Amounts Excluded from Effectiveness Testing	(20)	(11)	(57)	(11)
Foreign exchange contracts | Net Investment Hedging
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Recognized in OCI - Amount excluded from the assessment of effectiveness	10	0	10	0
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Recognized in OCI - Net investment hedges	(1,086)	652	(205)	564
Foreign exchange contracts | Not Designated as Hedging Instrument, Economic Hedge
Derivative Instruments, Gain (Loss)
Gain (loss) recognized in earnings on derivatives	194	(141)	(174)	(321)
Equity contracts | Not Designated as Hedging Instrument, Economic Hedge
Derivative Instruments, Gain (Loss)
Gain (loss) recognized in earnings on derivatives	83	(54)	158	37
Cost of financing | Interest rate contracts | Fair Value Hedging
Derivative Instruments, Gain (Loss)
Gain (loss) recognized in earnings on derivatives	31	(33)	(5)	(55)
Gain (loss) recognized in earnings attributable to risk being hedged	(37)	28	(13)	42
Cost of financing | Interest rate contracts | Cash Flow Hedging
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Reclassified from AOCI	(1)	(1)	(2)	(2)
Cost of financing | Foreign exchange contracts | Cash Flow Hedging
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Reclassified from AOCI	(1)	(2)	(3)	(10)
Cost of financing | Foreign exchange contracts | Net Investment Hedging
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Amounts Excluded from Effectiveness Testing	5	5	14	16
Interest expense | Interest rate contracts | Fair Value Hedging
Derivative Instruments, Gain (Loss)
Gain (loss) recognized in earnings on derivatives	155	(166)	(24)	(261)
Gain (loss) recognized in earnings attributable to risk being hedged	(185)	139	(66)	196
Interest expense | Interest rate contracts | Cash Flow Hedging
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Reclassified from AOCI	(3)	(4)	(10)	(11)
Interest expense | Foreign exchange contracts | Cash Flow Hedging
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Reclassified from AOCI	(5)	(11)	(15)	(46)
Interest expense | Foreign exchange contracts | Net Investment Hedging
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Amounts Excluded from Effectiveness Testing	26	26	69	75
Cost of services | Foreign exchange contracts | Cash Flow Hedging
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Reclassified from AOCI	5	(2)	19	(6)
Cost of sales | Foreign exchange contracts | Cash Flow Hedging
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Reclassified from AOCI	3	(5)	30	12
SG&A expense | Foreign exchange contracts | Cash Flow Hedging
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Reclassified from AOCI	0	(4)	10	7
Other (income) and expense | Foreign exchange contracts | Cash Flow Hedging
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Reclassified from AOCI	$ 255	$ (164)	$ 233	$ 16

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Stock-based compensation cost, allocation of recognized costs
Pre-tax stock-based compensation cost	$ 330	$ 286	$ 966	$ 843
Income tax benefits	(131)	(74)	(353)	(216)
Net stock-based compensation cost	199	213	613	627
Pre-tax stock-based compensation cost increase (decrease)	44		123
Unrecognized compensation cost related to non-vested awards	1,800		$ 1,800
Unrecognized compensation cost related to non-vested awards, weighted average period of recognition			2 years 7 months 6 days
Restricted Stock Units (RSUs)
Stock-based compensation cost, allocation of recognized costs
Pre-tax stock-based compensation cost increase (decrease)	31		$ 73
Stock Options
Stock-based compensation cost, allocation of recognized costs
Pre-tax stock-based compensation cost increase (decrease)	6		19
Performance Shares
Stock-based compensation cost, allocation of recognized costs
Pre-tax stock-based compensation cost increase (decrease)	4		25
Employee Stock
Stock-based compensation cost, allocation of recognized costs
Pre-tax stock-based compensation cost increase (decrease)	3		7
Cost
Stock-based compensation cost, allocation of recognized costs
Pre-tax stock-based compensation cost	56	48	165	141
Selling, general and administrative
Stock-based compensation cost, allocation of recognized costs
Pre-tax stock-based compensation cost	167	148	511	465
Research, development and engineering
Stock-based compensation cost, allocation of recognized costs
Pre-tax stock-based compensation cost	$ 107	$ 91	$ 290	$ 237

Retirement-Related Benefits - U

Retirement-Related Benefits - U.S. Retirement Plan Changes (Details) participant in Thousands, $ in Millions		1 Months Ended	3 Months Ended	9 Months Ended
	Jan. 01, 2024	Sep. 30, 2024 USD ($) participant	Sep. 30, 2024 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)
Retirement-Related Benefits
Pension settlement charge			$ 2,700	$ 2,725	$ 0
Pension settlement charge, net of tax			2,000
Personal Pension Plan (PPP)
Retirement-Related Benefits
Benefit plan assets transferred from plan		$ 6,000
Benefit plan obligations transferred from plan		$ 6,000
Pension Plan | U.S. Plans
Retirement-Related Benefits
Service period	1 year
Benefit contribution monthly percent	5%
Benefit contribution interest percent, through 2026	6%
Increase (decrease) in actuarial losses due to changes in assumptions			$ 100	300
Pension Plan | U.S. Plans | Personal Pension Plan (PPP)
Retirement-Related Benefits
Increase (decrease) in actuarial losses due to changes in assumptions				$ 46
Number of participants transferred to insurers | participant		32
Pension Plan | U.S. Plans | Minimum
Retirement-Related Benefits
Benefit contribution interest percent, 2027 through 2033	3%

Retirement-Related Benefits - C

Retirement-Related Benefits - Changes in Benefit Obligation and Plan Assets (Details) - Pension Plan - U.S. Plans - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Aug. 31, 2024	Dec. 31, 2023
Change in benefit obligation:
Service cost	$ 98	$ 0	$ 295	$ 0
Interest cost	228	$ 272	735	$ 817
Actuarial losses/(gains)	100		300
Personal Pension Plan (PPP)
Change in benefit obligation:
Benefit obligation, balance at beginning of period			19,854
Service cost			295
Interest cost			686
Plan participants' contributions			0
Actuarial losses/(gains)			46
Benefits paid from trust			(1,073)
Direct benefit payments			0
Amendments/curtailments/settlements/other			(6,229)
Benefit obligation, balance at end of period	13,578		13,578
Change in plan assets:
Fair value of plan assets, balance at beginning of period			24,437
Actual return of plan assets			1,140
Employer contributions			0
Plan participants' contributions			0
Benefits paid from trust			(1,073)
Direct benefit payments			0
Amendments/curtailments/settlements/other			(6,229)
Fair value of plan assets, balance at end of period	18,275		18,275
Funded status	4,697		4,697
Accumulated benefit obligation	$ 13,578		$ 13,578
Discount rate					5%	5%

Retirement-Related Benefits - I

Retirement-Related Benefits - IBM Non-U.S. Retirement Plan Change (Details) participant in Thousands, $ in Millions		3 Months Ended		9 Months Ended
	Oct. 29, 2024 USD ($) participant	Dec. 31, 2024 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)
Retirement-Related Benefits
Pension settlement charge			$ 2,700	$ 2,725	$ 0
Subsequent Event | Forecast
Retirement-Related Benefits
Pension settlement charge		$ 400
Subsequent Event | IBMC IBM Retirement Plan | Non-U.S. Plans | Pension Plan
Retirement-Related Benefits
Benefit plan obligations transferred from plan	$ 1,200
Number of participants transferred to insurers | participant	6

Retirement-Related Benefits - A

Retirement-Related Benefits - All Retirement Plans Cost (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Retirement Benefits [Abstract]
Defined benefit pension and defined contribution pension plans — cost	$ 3,024	$ 250	$ 3,667	$ 791
Nonpension postretirement plans — cost	30	33	90	98
Total	$ 3,053	$ 283	$ 3,757	888
Year-to-year percent change, Nonpension postretirement plans — cost (as a percent)	(9.40%)		(7.80%)
Pension settlement charge	$ 2,700		$ 2,725	$ 0

Retirement-Related Benefits -_2

Retirement-Related Benefits - Cost of Retirement Plans (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Cost/(Income) of Pension Plans
Total defined benefit pension and defined contribution plans cost recognized in the Consolidated Income Statement	$ 3,024	$ 250	$ 3,667	$ 791
U.S. Plans | Pension Plan
Cost/(Income) of Pension Plans
Service cost	98	0	295	0
Interest cost	228	272	735	817
Expected return on plan assets	(313)	(382)	(994)	(1,146)
Amortization of prior service costs/(credits)	0	0	0	0
Recognized actuarial losses	113	27	370	82
Curtailments and settlements	2,725	0	2,725	0
Multi-employer plans	0	0	0	0
Other costs/(credits)	0	0	0	0
Total net periodic pension (income)/cost of defined benefit plans	2,851	(82)	3,131	(247)
Cost of defined contribution plans	15	150	42	473
Total defined benefit pension and defined contribution plans cost recognized in the Consolidated Income Statement	2,866	68	3,173	226
U.S. Plans | Other Postretirement Benefits Plan
Cost/(Income) of Pension Plans
Service cost	1	1	2	3
Interest cost	27	29	80	88
Expected return on plan assets	0	0	0	0
Amortization of prior service costs/(credits)	(7)	(7)	(22)	(22)
Recognized actuarial losses	0	0	0	0
Curtailments and settlements	0	0	0	0
Total net periodic pension (income)/cost of defined benefit plans	20	23	59	69
Non-U.S. Plans | Pension Plan
Cost/(Income) of Pension Plans
Service cost	43	44	128	133
Interest cost	271	293	803	873
Expected return on plan assets	(395)	(363)	(1,168)	(1,081)
Amortization of prior service costs/(credits)	6	5	17	15
Recognized actuarial losses	131	99	389	302
Curtailments and settlements	2	2	7	7
Multi-employer plans	3	4	10	10
Other costs/(credits)	0	3	20	21
Total net periodic pension (income)/cost of defined benefit plans	62	88	206	281
Cost of defined contribution plans	95	95	288	283
Total defined benefit pension and defined contribution plans cost recognized in the Consolidated Income Statement	158	182	494	565
Non-U.S. Plans | Other Postretirement Benefits Plan
Cost/(Income) of Pension Plans
Service cost	1	1	2	2
Interest cost	10	10	31	29
Expected return on plan assets	0	(1)	(1)	(2)
Amortization of prior service costs/(credits)	0	0	0	0
Recognized actuarial losses	0	0	(1)	(1)
Curtailments and settlements	0	0	0	0
Total net periodic pension (income)/cost of defined benefit plans	$ 10	$ 10	$ 30	$ 28

Retirement-Related Benefits -_3

Retirement-Related Benefits - Contributions (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Retirement-Related Benefits
Total plan contributions	$ 208	$ 233
Trust for Benefit of Employees
Retirement-Related Benefits
Contributions by employer - Noncash	600	537
U.S. nonpension postretirement benefit plan
Retirement-Related Benefits
Total plan contributions	155	188
Non-U.S. DB plans and multi-employer plans
Retirement-Related Benefits
Total plan contributions	$ 53	$ 45

Subsequent Events (Details)

Subsequent Events (Details)	Oct. 30, 2024 $ / shares
Subsequent Event
Subsequent Event [Line Items]
Dividend declared (in dollars per share)	$ 1.67