International Business Machines (IBM) 10-Q 25 Jul 22 2022 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jun. 30, 2022 shares
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2022
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 Central Index Key	0000051143
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	903,180,353
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
New York Stock Exchange | 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 | 2.625% Notes due 2022
Document Information [Line Items]
Title of 12(b) Security	2.625%  Notes due 2022
Trading Symbol	IBM 22A
Security Exchange Name	NYSE
New York Stock Exchange | 1.250% Notes due 2023
Document Information [Line Items]
Title of 12(b) Security	1.250%  Notes due 2023
Trading Symbol	IBM 23A
Security Exchange Name	NYSE
New York Stock Exchange | 0.375% Notes due 2023
Document Information [Line Items]
Title of 12(b) Security	0.375%  Notes due 2023
Trading Symbol	IBM 23B
Security Exchange Name	NYSE
New York Stock Exchange | 1.125% Notes due 2024
Document Information [Line Items]
Title of 12(b) Security	1.125%  Notes due 2024
Trading Symbol	IBM 24A
Security Exchange Name	NYSE
New York Stock Exchange | 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 | 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 | 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 | 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 | 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 | 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 | 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 | 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 | 0.875% Notes due 2030
Document Information [Line Items]
Title of 12(b) Security	0.875% Notes due 2030
Trading Symbol	IBM 30
Security Exchange Name	NYSE
New York Stock Exchange | 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 | 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 | 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 | 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 | 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 | 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 | 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 | 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 | 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
Chicago Stock Exchange | 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			6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	[1]	Jun. 30, 2022	Jun. 30, 2021	[1]
Revenue	$ 15,535	$ 14,218		$ 29,732	$ 27,405
Cost	7,246	6,366		14,107	12,526
Gross profit	8,290	7,852		15,625	14,879
Expense and other (income)
Selling, general and administrative	4,855	4,849		9,452	9,536
Research, development and engineering	1,673	1,641		3,352	3,257
Intellectual property and custom development income	(176)	(133)		(297)	(278)
Other (income) and expense	(81)	302		166	647
Interest expense	297	281		607	561
Total expense and other (income)	6,568	6,940		13,280	13,724
Income from continuing operations before income taxes	1,722	912		2,345	1,155
Provision for/(benefit from) income taxes	257	101		218	(58)
Income from continuing operations	1,465	810		2,127	1,213
Income/(loss) from discontinued operations, net of tax	(73)	515		(2)	1,067
Net income	$ 1,392	$ 1,325	[2]	$ 2,125	$ 2,280	[2]
Assuming dilution
Continuing operations (in dollars per share)	$ 1.61	$ 0.90		$ 2.34	$ 1.34
Discontinued operations (in dollars per share)	(0.08)	0.57		0	1.18
Total (in dollars per share)	1.53	1.47		2.34	2.52
Basic
Continuing operations (in dollars per share)	1.62	0.91		2.36	1.36
Discontinued operations (in dollars per share)	(0.08)	0.57		0	1.19
Total (in dollars per share)	$ 1.54	$ 1.48		$ 2.36	$ 2.55
Weighted-average number of common shares outstanding
Assuming dilution (in shares)	910,749,734	904,233,439		909,987,935	902,989,752
Basic (in shares)	901,470,793	895,043,024		900,393,410	894,336,970
Services.
Revenue	$ 7,640	$ 7,201		$ 15,343	$ 14,297
Cost	5,399	4,720		10,747	9,364
Sales
Revenue	7,748	6,808	[3]	14,087	12,687	[3]
Cost	1,750	1,499	[3]	3,165	2,878	[3]
Financing.
Revenue	147	209	[3]	303	420	[3]
Cost	$ 96	$ 146	[3]	$ 194	$ 283	[3]
[1] Reclassified to reflect discontinued operations presentation. Amounts presented have not been recast to exclude discontinued operations. Reclassified to conform to current year presentation.

CONSOLIDATED STATEMENT OF COMPR

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	[1]	Jun. 30, 2022	Jun. 30, 2021	[1]
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Net income	$ 1,392	$ 1,325	[2]	$ 2,125	$ 2,280	[2]
Other comprehensive income/(loss), before tax
Foreign currency translation adjustments	213	28		655	577
Net changes related to available-for-sale securities
Unrealized gains/(losses) arising during the period	0	0		(1)	0
Total net changes related to available-for-sale securities	0	0		(1)	0
Unrealized gains/(losses) on cash flow hedges
Unrealized gains/(losses) arising during the period	200	(34)		260	153
Reclassification of (gains)/losses to net income	16	90		16	251
Total unrealized gains/(losses) on cash flow hedges	217	56		276	404
Retirement-related benefit plans
Prior service costs/(credits)		0		(5)	0
Net (losses)/gains arising during the period	1	2		10	22
Curtailments and settlements	11	16		19	34
Amortization of prior service (credits)/costs	6	1		13	4
Amortization of net (gains)/losses	450	643		917	1,291
Total retirement-related benefit plans	468	661		954	1,350
Other comprehensive income/(loss), before tax	897	745		1,885	2,330
Income tax (expense)/benefit related to items of other comprehensive income	(534)	(140)		(819)	(645)
Other comprehensive income/(loss), net of tax	363	605		1,066	1,685
Total comprehensive income	$ 1,755	$ 1,930		$ 3,191	$ 3,965
[1] Amounts presented have not been recast to exclude discontinued operations. Reclassified to reflect discontinued operations presentation.

CONSOLIDATED BALANCE SHEET

CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 7,034	$ 6,650
Restricted cash	220	307
Marketable securities	524	600
Notes and accounts receivable - trade (net of allowances of $213 in 2022 and $218 in 2021)	5,867	6,754
Short-term financing receivables, held for investment (net of allowances of $150 in 2022 and $176 in 2021)	6,619	7,221
Short-term financing receivables, held for sale	614	793
Other accounts receivable (net of allowances of $35 in 2022 and $24 in 2021)	909	1,002
Inventories, at lower of average cost or net realizable value:
Finished goods	184	208
Work in process and raw materials	1,499	1,442
Total inventory	1,684	1,649
Deferred costs	1,010	1,097
Prepaid expenses and other current assets	3,414	3,466
Total current assets	27,896	29,539
Property, plant and equipment	19,079	20,085
Less: Accumulated depreciation	13,804	14,390
Property, plant and equipment - net	5,275	5,694
Operating right-of-use assets-net	2,848	3,222
Long-term financing receivables (net of allowances of $22 in 2022 and $25 in 2021)	5,316	5,425
Prepaid pension assets	9,930	9,850
Deferred costs	865	924
Deferred taxes	7,073	7,370
Goodwill	55,039	55,643
Intangible assets-net	11,571	12,511
Investments and sundry assets	1,689	1,823
Total assets	127,503	132,001
Current liabilities
Taxes	1,742	2,289
Short-term debt	5,981	6,787
Accounts payable	3,707	3,955
Compensation and benefits	3,327	3,204
Deferred income	12,522	12,518
Operating lease liabilities	884	974
Other accrued expenses and liabilities	3,682	3,892
Total current liabilities	31,844	33,619
Long-term debt	44,328	44,917
Retirement and nonpension postretirement benefit obligations	13,118	14,435
Deferred income	3,069	3,577
Operating lease liabilities	2,182	2,462
Other liabilities	13,486	13,996
Total liabilities	108,026	113,005
IBM stockholders' equity
Common stock, par value $.20 per share, and additional paid-in capital Shares authorized: 4,687,500,000 Shares issued (2022-2,254,538,572; 2021-2,248,577,848)	57,802	57,319
Retained earnings	153,298	154,209
Treasury stock, at cost (shares: 2022-1,351,358,219; 2021-1,350,509,249)	(169,522)	(169,392)
Accumulated other comprehensive income/(loss)	(22,169)	(23,234)
Total IBM stockholders' equity	19,409	18,901
Noncontrolling interests	67	95
Total equity	19,476	18,996
Total liabilities and equity	$ 127,503	$ 132,001

CONSOLIDATED BALANCE SHEET (Par

CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
CONSOLIDATED BALANCE SHEET
Notes and accounts receivable - trade, allowances	$ 213	$ 218
Short-term financing receivables, allowances	150	176
Other accounts receivable, allowances	35	24
Long-term financing receivables, allowances	$ 22	$ 25
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)	2,254,538,572	2,248,577,848
Treasury stock, Shares (in shares)	1,351,358,219	1,350,509,249

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities
Net income	$ 2,125	$ 2,280
Adjustments to reconcile net income to cash provided by operating activities
Depreciation	1,251	2,102
Amortization of intangibles	1,251	1,250
Stock-based compensation	488	457
Net (gain)/loss on asset sales and other	(100)	(144)
Changes in operating assets and liabilities, net of acquisitions/divestitures	(446)	1,594
Net cash provided by operating activities	4,569	7,539
Cash flows from investing activities
Payments for property, plant and equipment	(620)	(1,054)
Proceeds from disposition of property, plant and equipment	90	215
Investment in software	(341)	(379)
Acquisition of businesses, net of cash acquired	(958)	(2,866)
Divestiture of businesses, net of cash transferred	1,268	(25)
Non-operating finance receivables - net	0	16
Purchases of marketable securities and other investments	(2,336)	(1,890)
Proceeds from disposition of marketable securities and other investments	1,711	1,312
Net cash provided by/(used in) investing activities	(1,186)	(4,671)
Cash flows from financing activities
Proceeds from new debt	4,402	243
Payments to settle debt	(3,959)	(5,974)
Short-term borrowings/(repayments) less than 90 days - net	(9)	(68)
Common stock repurchases for tax withholdings	(315)	(234)
Financing - other	25	44
Cash dividends paid	(2,963)	(2,924)
Net cash provided by/(used in) financing activities	(2,819)	(8,914)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(267)	(65)
Net change in cash, cash equivalents and restricted cash	297	(6,110)
Cash, cash equivalents and restricted cash at January 1	6,957	13,675
Cash, cash equivalents and restricted cash at June 30	$ 7,254	$ 7,565

CONSOLIDATED STATEMENT OF EQUIT

CONSOLIDATED STATEMENT OF EQUITY - USD ($) $ in Millions	Total IBM Stockholders' Equity	Common Stock and Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income/(Loss)	Non-Controlling Interests	Total
Balance at the Beginning of the Period at Dec. 31, 2020	$ 20,597	$ 56,556	$ 162,717	$ (169,339)	$ (29,337)	$ 129	$ 20,727
Net income plus other comprehensive income/(loss):
Net income	2,280		2,280				2,280
Other comprehensive income/(loss)	1,685				1,685		1,685
Total comprehensive income/(loss)	3,965						3,965
Cash dividends paid - common stock	(2,924)		(2,924)				(2,924)
Common stock issued under employee plans	355	355					355
Purchases and sales of treasury stock under employee plans - net	(51)		13	(65)			(51)
Changes in noncontrolling interests						(4)	(4)
Balance at the End of the Period at Jun. 30, 2021	21,942	56,912	162,086	(169,404)	(27,652)	125	22,067
Balance at the Beginning of the Period at Mar. 31, 2021	21,389	56,788	162,218	(169,360)	(28,257)	124	21,513
Net income plus other comprehensive income/(loss):
Net income	1,325		1,325				1,325
Other comprehensive income/(loss)	605				605		605
Total comprehensive income/(loss)	1,930						1,930
Cash dividends paid - common stock	(1,467)		(1,467)				(1,467)
Common stock issued under employee plans	124	124					124
Purchases and sales of treasury stock under employee plans - net	(33)		11	(44)			(33)
Changes in noncontrolling interests						1	1
Balance at the End of the Period at Jun. 30, 2021	21,942	56,912	162,086	(169,404)	(27,652)	125	22,067
Balance at the Beginning of the Period at Dec. 31, 2021	18,901	57,319	154,209	(169,392)	(23,234)	95	18,996
Net income plus other comprehensive income/(loss):
Net income	2,125		2,125				2,125
Other comprehensive income/(loss)	1,066				1,066		1,066
Total comprehensive income/(loss)	3,191						3,191
Cash dividends paid - common stock	(2,963)		(2,963)				(2,963)
Common stock issued under employee plans	420	420					420
Purchases and sales of treasury stock under employee plans - net	(141)		(11)	(130)			(141)
Other equity	0	63	(63)				0
Changes in noncontrolling interests						(27)	(27)
Balance at the End of the Period at Jun. 30, 2022	19,409	57,802	153,298	(169,522)	(22,169)	67	19,476
Balance at the Beginning of the Period at Mar. 31, 2022	19,050	57,603	153,401	(169,422)	(22,532)	62	19,112
Net income plus other comprehensive income/(loss):
Net income	1,392		1,392				1,392
Other comprehensive income/(loss)	363				363		363
Total comprehensive income/(loss)	1,755						1,755
Cash dividends paid - common stock	(1,488)		(1,488)				(1,488)
Common stock issued under employee plans	199	199					199
Purchases and sales of treasury stock under employee plans - net	(107)		(7)	(100)			(107)
Changes in noncontrolling interests						6	6
Balance at the End of the Period at Jun. 30, 2022	$ 19,409	$ 57,802	$ 153,298	$ (169,522)	$ (22,169)	$ 67	$ 19,476

CONSOLIDATED STATEMENT OF EQU_2

CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
CONSOLIDATED STATEMENT OF EQUITY
Cash dividend per common share	$ 1.65	$ 1.64	$ 3.29	$ 3.27
Common stock issued under employee plans (in shares)	4,398,589	2,967,655	5,960,724	4,013,839
Purchases of treasury stock under employee plans (in shares)	1,723,774	1,334,081	2,319,484	1,673,587
Sales of treasury stock under employee plans (in shares)	1,070,214	1,163,671	1,470,514	1,326,397

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2022
Basis of Presentation
Basis of Presentation	1. Basis o f 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. On November 3, 2021, the company completed the separation of its managed infrastructure services unit into a new public company with the distribution of 80.1 percent of the outstanding common stock of Kyndryl Holdings, Inc. (Kyndryl) to IBM stockholders on a pro rata basis. To effect the separation, IBM stockholders received one The accounting requirements for reporting the separation of Kyndryl as a discontinued operation were met when the separation was In the first quarter of 2022, the company realigned its management structure to reflect the planned divestiture of its healthcare software assets which was completed in the second quarter of 2022. This change impacted the company’s Software segment and Other–divested businesses category. In the fourth quarter of 2021, immediately prior to the separation of Kyndryl, the company made a number of changes to its organizational structure and management system. These changes impacted the company’s reportable segments but did not impact the Consolidated Financial Statements. Refer to note 5, “Segments,” for additional information on the company’s reportable segments. The segments are reported on a comparable basis for all periods. ​ Noncontrolling interest amounts of $5.5 million and $4.2 million, net of tax, for the three months ended June 30, 2022 and 2021, respectively, and $10.5 million and $9.1 million, net of tax, for the six months ended June 30, 2022 and 2021, respectively, are included as a reduction within other (income) and expense in the Consolidated Income Statement. 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 2021 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 current-period presentation. This is annotated where applicable. issued

Accounting Changes

Accounting Changes	6 Months Ended
	Jun. 30, 2022
Accounting Changes
Accounting Changes	2. Accounting Changes: New Standards to be Implemented ​ Disclosures about Government Assistance Standard/Description– Effective Date and Adoption Considerations– Effect on Financial Statements or Other Significant Matters– Troubled Debt Restructurings and Vintage Disclosures Standard/Description Effective Date and Adoption Considerations Effect on Financial Statements or Other Significant Matters ​ Standards Implemented ​ Lessors–Certain Leases with Variable Lease Payments Standard/Description Effective Date and Adoption Considerations Effect on Financial Statements or Other Significant Matters ​ Revenue Contracts with Customers Acquired in a Business Combination Standard/Description Effective Date and Adoption Considerations Effect on Financial Statements or Other Significant Matters Simplifying the Accounting for Income Taxes Standard/Description Effective Date and Adoption Considerations Effect on Financial Statements or Other Significant Matters

Separation of Kyndryl

Separation of Kyndryl	6 Months Ended
	Jun. 30, 2022
Separation of Kyndryl
Separation of Kyndryl	3. Separation of Kyndryl: On November 3, 2021, the company completed the separation of its managed infrastructure services unit into a new public company with the distribution of 80.1 percent of the outstanding shares of Kyndryl to IBM stockholders on a pro rata basis. The company retained 19.9 percent of the shares of Kyndryl common stock. On May 23, 2022, the company transferred 22.3 million shares, equal to 9.95 percent or half of the company’s 19.9 percent retained interest, to a third-party financial institution pursuant to an exchange agreement. Refer to note 8, “Financial Assets & Liabilities,” for additional information. The historical results of Kyndryl have been presented as discontinued operations and, as such, have been excluded from continuing operations and segment results for all periods presented. The company’s presentation of discontinued operations excludes general corporate overhead costs which were historically allocated to Kyndryl, consistent with the company’s management system, that did not meet the requirements to be presented in discontinued operations in 2021. Such allocations include labor and non-labor expenses related to IBM’s corporate support functions (e.g., finance, accounting, tax, treasury, IT, HR, legal, among others) that historically provided support to Kyndryl and transferred to Kyndryl at separation. In addition, discontinued operations excludes the historical intercompany purchases and sales between IBM and Kyndryl that were eliminated in consolidation. IBM will provide transition services to Kyndryl predominantly consisting of information technology services for a period no longer than two years after the separation. The impact of these transition services on the company’s Consolidated Financial Statements for the three and six months ended June 30, 2022 was not material. IBM and Kyndryl entered into various commercial agreements pursuant to which Kyndryl will purchase hardware, software and services from IBM and under which IBM will receive hosting and information infrastructure services from Kyndryl. As part of the separation, IBM has also committed to provide upgraded hardware at no cost to Kyndryl over a two-year period after the separation. IBM recorded an estimate of its obligation under the agreement in other accrued expenses and liabilities in the Consolidated Balance Sheet. The following table presents the major categories of income/(loss) from discontinued operations, net of tax: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, (Dollars in millions) 2022 2021* ​ 2022 2021* Revenue ​ $ (11) ​ $ 4,527 ​ $ 7 ​ $ 9,070 Cost of sales ​ ​ (4) ​ ​ 3,375 ​ ​ 17 ​ ​ 6,741 Selling, general and administrative expense ​ ​ 73 ​ ​ 485 ​ ​ 66 ​ ​ 972 RD&E and Other (income) and expense ​ ​ 0 ​ ​ 26 ​ ​ (69) ​ ​ 55 Income/(loss) from discontinued operations before income taxes ​ $ (80) ​ $ 641 ​ $ (7) ​ $ 1,302 Provision for/(benefit from) income taxes ​ ​ (7) ​ ​ 126 ​ ​ (5) ​ ​ 235 Income/(loss) from discontinued operations, net of tax ​ $ (73) ​ $ 515 ​ $ (2) ​ $ 1,067 * Excludes intercompany transactions between IBM and Kyndryl and general corporate overhead costs transferred to Kyndryl as discussed above. ​ Loss from discontinued operations, net of tax, for the three months ended June 30, 2022 primarily reflects the net impact of changes in separation-related estimates and the settlement of assets and liabilities in accordance with the separation and distribution agreement. Loss from discontinued operations, net of tax, for the six months ended June 30, 2022 reflects the same drivers as above and also includes a joint venture historically managed by Kyndryl, which did not transfer at separation due to the transfer being subject to regulatory approval. Upon receiving regulatory approval in the first quarter of 2022, the company sold its majority shares in the joint venture to Kyndryl, resulting in a pre-tax gain on sale of $68 million. Separation costs of $2 million and $146 million incurred during the three months ended June 30, 2022 and 2021, respectively, and $5 million and $196 million incurred during the six months ended June 30, 2022 and 2021, respectively, are included in income/(loss) from discontinued operations, net of tax, in the Consolidated Income Statement. These charges primarily relate to transaction and third-party support costs, business separation and applicable employee retention fees, pension settlement charges and related tax charges. The following table presents selected financial information related to cash flows from discontinued operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, (Dollars in millions) ​ 2022 ​ 2021 ​ Net cash provided by/(used in) operating activities ​ $ — ​ $ 1,465 * Net cash provided by/(used in) investing activities ​ ​ 48 ​ ​ (321) ​ * Excludes intercompany transactions between IBM and Kyndryl and general corporate overhead costs transferred to Kyndryl as discussed above.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2022
Revenue Recognition
Revenue Recognition	4. Revenue Recognition: Disaggregation of Revenue The following tables provide details of revenue by major products/service offerings, hybrid cloud revenue, and revenue by geography. Revenue by Major Products/Service Offerings ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, (Dollars in millions) ​ 2022 ​ 2021* ​ 2022 ​ 2021* ​ Hybrid Platform & Solutions ​ $ 4,390 ​ $ 4,208 ​ $ 8,470 ​ $ 8,008 ​ Transaction Processing ​ ​ 1,776 ​ ​ 1,587 ​ ​ 3,468 ​ ​ 2,925 ​ Total Software ​ $ 6,166 ​ $ 5,795 ​ $ 11,938 ​ $ 10,933 ​ Business Transformation ​ 2,227 ​ 2,049 ​ 4,482 ​ 4,002 ​ Application Operations ​ 1,653 ​ 1,514 ​ 3,272 ​ 2,989 ​ Technology Consulting ​ 928 ​ 814 ​ 1,884 ​ 1,649 ​ Total Consulting ​ $ 4,809 ​ $ 4,378 ​ $ 9,637 ​ $ 8,641 ​ Hybrid Infrastructure ​ 2,760 ​ 2,059 ​ 4,461 ​ 3,841 ​ Infrastructure Support ​ 1,474 ​ 1,501 ​ 2,993 ​ 3,012 ​ Total Infrastructure ​ $ 4,235 ​ $ 3,560 ​ $ 7,453 ​ $ 6,853 ​ Financing** ​ 146 ​ 209 ​ 300 ​ 417 ​ Other ​ 180 ​ 277 ​ 404 ​ 561 ​ Total revenue ​ $ 15,535 ​ $ 14,218 ​ $ 29,732 ​ $ 27,405 ​ * Recast to reflect segment changes. ** Contains lease and loan/working capital financing arrangements which are not subject to the guidance on revenue from contracts with customers. Hybrid Cloud Revenue by Segment ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) ​ 2022 ​ 2021* 2022 ​ 2021* Software ​ $ 2,288 ​ $ 2,015 ​ $ 4,418 ​ $ 3,760 Consulting ​ 2,286 ​ 1,901 ​ 4,421 ​ 3,623 Infrastructure ​ ​ 1,220 ​ ​ 981 ​ ​ 1,892 ​ ​ 1,818 Other ​ 69 ​ 82 ​ 141 ​ 169 Total ​ $ 5,863 ​ $ 4,979 ​ $ 10,872 ​ $ 9,369 * Recast to reflect segment changes. Revenue by Geography ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) ​ 2022 ​ 2021 2022 ​ 2021 Americas ​ $ 8,142 ​ $ 7,122 ​ $ 15,198 ​ $ 13,599 Europe/Middle East/Africa ​ 4,526 ​ 4,314 ​ 8,757 ​ 8,242 Asia Pacific ​ 2,868 ​ 2,782 ​ 5,778 ​ 5,563 Total ​ $ 15,535 ​ $ 14,218 ​ $ 29,732 ​ $ 27,405 ​ 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 June 30, 2022, the aggregate amount of the transaction price allocated to RPO related to customer contracts that are unsatisfied or partially unsatisfied was $55 billion. Approximately 71 percent of the amount is expected to be recognized as revenue in the subsequent two years, approximately 26 percent in the subsequent three Revenue Recognized for Performance Obligations Satisfied (or Partially Satisfied) in Prior Periods For the three and six months ended June 30, 2022, revenue was reduced by $24 million and $28 million, respectively, for performance obligations satisfied (or partially satisfied) in previous periods mainly due to changes in estimates on contracts with cost-to-cost measures of progress. Reconciliation of Contract Balances The following table provides information about notes and accounts receivable–trade, contract assets and deferred income balances: ​ ​ ​ ​ ​ ​ ​ ​ ​ At June 30, At December 31, (Dollars in millions) ​ 2022 ​ 2021 Notes and accounts receivable — ​ $ 5,867 ​ $ 6,754 Contract assets* ​ 531 ​ 471 Deferred income (current) ​ 12,522 ​ 12,518 Deferred income (noncurrent) ​ 3,069 ​ 3,577 * Included within prepaid expenses and other current assets in the Consolidated Balance Sheet. The amount of revenue recognized during the three and six months ended June 30, 2022 that was included within the deferred income balance at March 31, 2022 and December 31, 2021 was $4.4 billion and $6.8 billion, respectively, and was primarily related to services and software. The following table provides roll forwards of the notes and accounts receivable–trade allowance for expected credit losses for the six months ended June 30, 2022 and the year ended December 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ ​ ​ ​ January 1, 2022 ​ Additions / (Releases) ​ Write-offs ​ Foreign currency and other ​ June 30, 2022 $ 218 ​ $ 30 ​ $ (22) ​ $ (13) ​ $ 213 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ January 1, 2021 ​ Additions / (Releases) ​ Write-offs ​ Foreign currency and other ​ December 31, 2021 $ 260 ​ $ (15) ​ $ (28) ​ $ 1 ​ $ 218 ​ The contract assets allowance for expected credit losses was not material in any of the periods presented.

Segments

Segments	6 Months Ended
	Jun. 30, 2022
Segments
Segments	5. Segments: In January 2022, IBM announced the divestiture of its healthcare software assets which closed in the second quarter of 2022. Refer to note 6, “Acquisitions & Divestitures,” for additional information. The company re-aligned its management structure to manage these assets outside of the Software segment prior to the divestiture. Beginning in the first quarter of 2022, the financial results of these assets are presented in Other–divested businesses. In the fourth quarter of 2021, immediately prior to the separation of Kyndryl, the company made a number of changes to its organizational structure and management system to align the company’s operating model to its platform-centric approach to hybrid cloud and AI. With these changes, the company revised its reportable segments, but did not impact its Consolidated Financial Statements. 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 the prior-year periods have been recast to reflect the company’s segment changes in the first quarter of 2022 and the fourth quarter of 2021 described above. Performance measurement is based on pre-tax income from continuing operations. 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 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total (Dollars in millions) ​ Software ​ Consulting ​ Infrastructure ​ Financing ​ Segments For the three months ended June 30, 2022: ​ ​ ​ ​ ​ ​ Revenue ​ $ 6,166 ​ $ 4,809 ​ $ 4,235 ​ $ 146 ​ $ 15,355 ​ Pre-tax income from continuing operations ​ $ 1,375 ​ $ 343 ​ $ 757 ​ $ 102 ​ $ 2,577 ​ Revenue year-to-year change ​ 6.4 % 9.8 % 19.0 % (29.9) % 10.1 % Pre-tax income year-to-year change ​ 29.9 % 26.9 % 54.8 % (22.4) % 32.2 % Pre-tax income margin ​ 22.3 % 7.1 % 17.9 % 69.7 % 16.8 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended June 30, 2021*: ​ ​ ​ ​ ​ ​ Revenue ​ $ 5,795 ​ $ 4,378 ​ $ 3,560 ​ $ 209 ​ $ 13,941 ​ Pre-tax income from continuing operations ​ $ 1,059 ​ $ 270 ​ $ 489 ​ $ 131 ​ $ 1,949 ​ Pre-tax income margin ​ 18.3 % 6.2 % 13.7 % 63.0 % 14.0 % ​ Reconciliations to IBM as Reported: ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ ​ For the three months ended June 30: ​ 2022 ​ 2021* Revenue: ​ ​ ​ Total reportable segments ​ $ 15,355 ​ $ 13,941 ​ Other ‒ ​ 162 ​ 197 ​ Other revenue ​ 18 ​ 80 ​ Total consolidated revenue ​ $ 15,535 ​ $ 14,218 ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-tax income from continuing operations: ​ ​ ​ Total reportable segments ​ $ 2,577 ​ $ 1,949 ​ Amortization of acquired intangible assets ​ (458) ​ (456) ​ Acquisition-related (charges)/income ​ (2) ​ (18) ​ Non-operating retirement-related (costs)/income ​ (192) ​ (317) ​ Kyndryl-related impacts** ​ ​ (145) ​ — ​ Eliminations of internal transactions ​ (4) ​ 5 ​ Other ‒ ​ 160 + (50) ​ Unallocated corporate amounts and other ​ (215) ​ (202) ​ Total pre-tax income from continuing operations ​ $ 1,722 ​ $ 912 ​ * Recast to conform to current year presentation. ** Refer to note 8, “Financial Assets & Liabilities,” for additional information. + Includes a gain from the sale of the company’s healthcare software assets. Refer to note 6, “Acquisitions & Divestitures.” ​ SEGMENT INFORMATION ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total (Dollars in millions) ​ Software ​ Consulting ​ Infrastructure ​ Financing ​ Segments For the six months ended June 30, 2022: ​ ​ ​ ​ ​ ​ Revenue ​ $ 11,938 ​ $ 9,637 ​ $ 7,453 ​ $ 300 ​ $ 29,328 ​ Pre-tax income from continuing operations ​ $ 2,509 ​ $ 691 ​ $ 956 ​ $ 186 ​ $ 4,342 ​ Revenue year-to-year change ​ 9.2 % 11.5 % 8.8 % (28.0) % 9.3 % Pre-tax income year-to-year change ​ 46.2 % 26.3 % 22.5 % (18.9) % 32.6 % Pre-tax income margin ​ 21.0 % 7.2 % 12.8 % 62.0 % 14.8 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the six months ended June 30, 2021*: ​ ​ ​ ​ ​ ​ Revenue ​ $ 10,933 ​ $ 8,641 ​ $ 6,853 ​ $ 417 ​ $ 26,843 ​ Pre-tax income from continuing operations ​ $ 1,717 ​ $ 547 ​ $ 780 ​ $ 229 ​ $ 3,274 ​ Pre-tax income margin ​ 15.7 % 6.3 % 11.4 % 55.0 % 12.2 % ​ Reconciliations to IBM as Reported: ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ ​ For the six months ended June 30: ​ 2022 ​ 2021* Revenue: ​ ​ ​ Total reportable segments ​ $ 29,328 ​ $ 26,843 ​ Other ‒ ​ 316 ​ 394 ​ Other revenue ​ 88 ​ 167 ​ Total consolidated revenue ​ $ 29,732 ​ $ 27,405 ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-tax income from continuing operations: ​ ​ ​ Total reportable segments ​ $ 4,342 ​ $ 3,274 ​ Amortization of acquired intangible assets ​ (919) ​ (903) ​ Acquisition-related charges ​ (9) ​ (34) ​ Non-operating retirement-related (costs)/income ​ (394) ​ (649) ​ Kyndryl-related impacts** ​ ​ (367) ​ ​ — ​ Eliminations of internal transactions ​ (15) ​ (4) ​ Other ‒ ​ 109 + (65) ​ Unallocated corporate amounts ​ (403) ​ (464) ​ Total pre-tax income from continuing operations ​ $ 2,345 ​ $ 1,155 ​ * Recast to conform to current year presentation. ** Refer to note 8, “Financial Assets & Liabilities,” for additional information. + Includes a gain from the sale of the company’s healthcare software assets. Refer to note 6, “Acquisitions & Divestitures.”

Acquisitions & Divestitures

Acquisitions & Divestitures	6 Months Ended
	Jun. 30, 2022
Acquisitions & Divestitures
Acquisitions & Divestitures	​ ​ 6. Acquisitions & Divestitures: Acquisitions Purchase price consideration for all acquisitions was paid primarily in cash. All acquisitions, except as 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 six months ended June 30, 2022, the company completed five acquisitions at an aggregate cost of $1,101 million. Each acquisition is expected to enhance the company’s portfolio of products and services capabilities and further advance IBM’s hybrid cloud and AI strategy. Acquisition Segment Description of Acquired Business First Quarter Envizi Software Data and analytics software provider for environmental performance management ​ ​ ​ Sentaca Consulting Telco consulting services and solutions provider specializing in automation, cloud migration, and future networks for telecommunication providers ​ ​ ​ Neudesic Consulting Application development and cloud computing services company Second Quarter ​ ​ ​ ​ ​ Randori Software Leading attack surface management (ASM) and cybersecurity provider ​ ​ ​ Databand.ai Software Proactive data observability platform that isolates data errors and issues to alert relevant stakeholders ​ ​ At June 30, 2022, the remaining cash to be remitted by the company related to certain first and second quarter acquisitions was $147 million, most of which is expected to be paid by the second quarter of 2023. The following table reflects the purchase price related to these acquisitions and the resulting purchase price allocations as of June 30, 2022. ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortization ​ Total (Dollars in millions) Life (in years) ​ Acquisitions Current assets ​ ​ ​ $ 60 Property, plant and equipment/noncurrent assets ​ ​ ​ 3 Intangible assets: ​ ​ ​ ​ ​ Goodwill N/A ​ 903 Client relationships 7 ​ 151 Completed technology 4-7 ​ 87 Trademarks 2-3 ​ 8 Total assets acquired ​ ​ ​ $ 1,210 Current liabilities ​ ​ ​ 59 Noncurrent liabilities ​ ​ ​ 50 Total liabilities assumed ​ ​ ​ $ 110 Total purchase price ​ ​ ​ $ 1,101 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 overall weighted-average useful life of the identified amortizable intangible assets acquired was 6.7 years. Goodwill of $461 million and $442 million was assigned to the Consulting and Software segments, respectively. It is expected that none of the goodwill will be deductible for tax purposes. 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. 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; however, material changes are not expected. ​ Divestitures Healthcare Software Assets — In January 2022, IBM and Francisco Partners (Francisco) signed a definitive agreement in which Francisco would acquire IBM’s healthcare software assets reported within Other–divested businesses (Other) for $1,065 million. Refer to note 5, “Segments,” for additional information. The assets include Health Insights, MarketScan, Clinical Development, Social Program Management, Micromedex, and imaging software offerings. In addition, IBM is providing Francisco with transition services including IT and other services. The closing completed for the U.S. and Canada on June 30, 2022. The company expects subsequent closings for the remaining countries to be completed by the first quarter of 2023. ​ On June 30, 2022, the company received a cash payment of $1,065 million and recognized a $232 million pre-tax gain on sale in other (income) and expense in the Consolidated Income Statement. The cash proceeds from the sale were included primarily in cash from investing activities in the Consolidated Statement of Cash Flows. Any pre-tax gains related to the subsequent wave closings are not expected to be material. The total gain on sale may change in the future due to changes in transaction estimates, however, such changes are not expected to be material. ​ Other Divestitures — In the first quarter of 2022, the Infrastructure segment completed one divestiture. The financial terms related to this transaction were not material.

Earnings Per Share of Common St

Earnings Per Share of Common Stock	6 Months Ended
	Jun. 30, 2022
Earnings Per Share of Common Stock
Earnings Per Share of Common Stock	​ 7. 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 six months ended June 30, 2022 and 2021. ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions except per share amounts) ​ ​ ​ ​ ​ ​ For the three months ended June 30: 2022 2021 Number of shares on which basic earnings per share is calculated: ​ ​ Weighted-average shares outstanding during period ​ 901,470,793 ​ 895,043,024 Add — Incremental shares under stock-based compensation plans ​ 7,518,749 ​ 7,431,661 Add — Incremental shares associated with contingently issuable shares ​ 1,760,192 ​ 1,758,754 Number of shares on which diluted earnings per share is calculated ​ 910,749,734 ​ 904,233,439 ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ​ $ 1,465 ​ $ 810 Income/(loss) from discontinued operations, net of tax ​ (73) ​ 515 Net income on which basic earnings per share is calculated ​ $ 1,392 ​ $ 1,325 ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ​ $ 1,465 ​ $ 810 Net income applicable to contingently issuable shares ​ — ​ — Income from continuing operations on which diluted earnings per share is calculated ​ $ 1,465 ​ $ 810 Income/(loss) from discontinued operations, net of tax, on which diluted earnings per share is calculated ​ (73) ​ 515 Net income on which diluted earnings per share is calculated ​ $ 1,392 ​ $ 1,325 ​ ​ ​ ​ ​ ​ ​ Earnings/(loss) per share of common stock: ​ ​ Assuming dilution ​ ​ ​ Continuing operations ​ $ 1.61 ​ $ 0.90 Discontinued operations ​ (0.08) ​ 0.57 Total ​ $ 1.53 ​ $ 1.47 Basic ​ ​ Continuing operations ​ $ 1.62 ​ $ 0.91 Discontinued operations ​ (0.08) ​ 0.57 Total ​ $ 1.54 ​ $ 1.48 ​ Stock options to purchase 788,500 shares and 375,990 shares were outstanding as of June 30, 2022 and 2021, 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. ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions except per share amounts) ​ ​ For the six months ended June 30: 2022 2021 Number of shares on which basic earnings per share is calculated: ​ ​ Weighted-average shares outstanding during period ​ 900,393,410 ​ 894,336,970 Add — Incremental shares under stock-based compensation plans ​ 7,946,998 ​ 7,027,051 Add — Incremental shares associated with contingently issuable shares ​ 1,647,528 ​ 1,625,732 Number of shares on which diluted earnings per share is calculated ​ 909,987,935 ​ 902,989,752 ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ​ $ 2,127 ​ $ 1,213 Income/(loss) from discontinued operations, net of tax ​ (2) ​ 1,067 Net income on which basic earnings per share is calculated ​ $ 2,125 ​ $ 2,280 ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ​ $ 2,127 ​ $ 1,213 Net income applicable to contingently issuable shares ​ — ​ — Income from continuing operations on which diluted earnings per share is calculated ​ $ 2,127 ​ $ 1,213 Income/(loss) from discontinued operations, net of tax, on which diluted earnings per share is calculated ​ (2) ​ 1,067 Net income on which diluted earnings per share is calculated ​ $ 2,125 ​ $ 2,280 ​ ​ ​ ​ ​ ​ ​ Earnings/(loss) per share of common stock: ​ ​ Assuming dilution ​ ​ Continuing operations ​ $ 2.34 ​ $ 1.34 Discontinued operations ​ 0.00 ​ 1.18 Total ​ $ 2.34 ​ $ 2.52 Basic ​ ​ Continuing operations ​ $ 2.36 ​ $ 1.36 Discontinued operations ​ 0.00 ​ 1.19 Total ​ $ 2.36 ​ $ 2.55 ​ Stock options to purchase 975,911 shares and 943,438 shares (average of first and second quarter share amounts) were outstanding as of June 30, 2022 and 2021, 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.

Financial Assets & Liabilities

Financial Assets & Liabilities	6 Months Ended
	Jun. 30, 2022
Financial Assets & Liabilities
Financial Assets & Liabilities	8. 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 maintain principal by investing in very liquid and highly rated investment grade securities. 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 six months ended June 30, 2022 and 2021, respectively. Certain non-financial assets such as property, plant and equipment, operating right-of-use assets, land, 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 six months ended June 30, 2022 and 2021, respectively. The following table presents the company’s financial assets and financial liabilities that are measured at fair value on a recurring basis at June 30, 2022 and December 31, 2021. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value ​ ​ ​ ​ ​ ​ Hierarchy ​ At June 30, 2022 ​ At December 31, 2021 (Dollars in millions) Level Assets (8) Liabilities (9) Assets (8) Liabilities (9) Cash equivalents: (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Time deposits and certificates of deposit (2) ​ 2 ​ $ 2,602 ​ $ N/A ​ $ 1,903 ​ $ N/A Money market funds ​ 1 ​ ​ 933 ​ ​ N/A ​ ​ 263 ​ ​ N/A U.S. government securities (2) ​ 2 ​ ​ — ​ ​ N/A ​ ​ 599 ​ ​ N/A Total cash equivalents ​ ​ ​ $ 3,535 ​ $ N/A ​ $ 2,766 ​ $ N/A Equity investments (3) ​ 1 ​ ​ — ​ ​ N/A ​ ​ 0 ​ ​ N/A Kyndryl common stock (4) ​ 1 ​ ​ 436 ​ ​ N/A ​ ​ 807 ​ ​ N/A Secured borrowing (4) ​ 2 ​ ​ N/A ​ ​ 218 ​ ​ N/A ​ ​ — Debt securities-current (2)(5) ​ 2 ​ ​ 524 ​ ​ N/A ​ ​ 600 ​ ​ N/A Debt securities-noncurrent (2)(6) ​ 2,3 ​ ​ 31 ​ ​ N/A ​ ​ 37 ​ ​ N/A Derivatives designated as hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts ​ 2 ​ ​ 2 ​ ​ 82 ​ ​ 12 ​ ​ — Foreign exchange contracts ​ 2 ​ ​ 717 ​ ​ 348 ​ ​ 359 ​ ​ 117 Derivatives not designated as hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign exchange contracts ​ 2 ​ ​ 11 ​ ​ 26 ​ ​ 21 ​ ​ 42 Equity contracts (7) ​ 1,2 ​ ​ 5 ​ ​ 95 ​ ​ 6 ​ ​ 4 Total ​ ​ ​ $ 5,261 ​ $ 769 ​ $ 4,608 ​ $ 162 (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) Included within investments and sundry assets in the Consolidated Balance Sheet. (4) Refer to “Kyndryl Common Stock” below for additional information. (5) U.S. treasury bills that are reported within marketable securities in the Consolidated Balance Sheet. (6) Includes corporate and government debt securities that are reported within investments and sundry assets in the Consolidated Balance Sheet. (7) Level 1 includes immaterial amounts related to equity futures contracts. (8) 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 June 30, 2022 were $723 million and $11 million, respectively, and at December 31, 2021 were $358 million and $40 million, respectively. (9) The gross balances of derivative liabilities contained within other accrued expenses and liabilities, and other liabilities in the Consolidated Balance Sheet at June 30, 2022 were $266 million and $285 million, respectively, and at December 31, 2021 were $60 million and $103 million , respectively. ​ N/A – not applicable ​ Kyndryl Common Stock On November 3, 2021, IBM completed the separation of Kyndryl and retained 19.9 percent of the shares of Kyndryl common stock with the intent to dispose of the shares within twelve months of the separation. On May 18, 2022, the company borrowed an aggregate principal amount of $357 million under a short-term credit facility with a third-party financial institution, the proceeds of which will be used to repay certain of the company’s existing indebtedness. On May 23, 2022, the company completed a debt-for-equity exchange where 22.3 million shares of Kyndryl common stock, equal to 9.95 percent or half of the company’s 19.9 percent retained interest (the Shares), were exchanged at a strike price of $13.95 per share to extinguish $311 million of the company’s indebtedness under the short-term credit facility (the Exchange). The remaining portion of the short-term credit facility was repaid with $46 million of cash. In connection with the Exchange, the company entered into a cash-settled swap with the lender of the short-term credit facility as the counterparty that maintained IBM’s continued economic exposure in the Shares. Upon settlement of the swap, which will occur no later than November 2, 2022, IBM will either receive or pay an amount derived from the difference between the volume-weighted average price (VWAP) of the Kyndryl shares over the outstanding term of the swap and the strike price of $13.95 per share. As a result, the most significant input into the valuation of the swap is the price of Kyndryl shares. other As a result of the swap, the transfer of the Shares pursuant to the Exchange does not qualify as a true sale, and therefore the Shares remain on the company’s Consolidated Balance Sheet at June 30, 2022. Relatedly, the portion of the company’s indebtedness under the short-term credit facility that was extinguished pursuant to the Exchange has been classified as a secured borrowing within short-term debt in the Consolidated Balance Sheet. The company has elected to record the debt at fair value based on changes in the value of the Shares underlying the debt. The fair value of the debt was $218 million at June 30, 2022. In electing the fair value option, the company recognizes changes in fair value of the debt in other (income) and expense, which amounted to $93 million for the three and six months ended June 30, 2022. The contractual principal balance of the debt was $311 million at June 30, 2022. Both the Shares and the debt are expected to be entirely derecognized from the company’s Consolidated Balance Sheet upon settlement of the swap, which will occur no later than November 2, 2022. The 19.9 percent retained interest in the Kyndryl shares is accounted for at fair value which amounted to $436 million and $807 million at June 30, 2022 and December 31, 2021, respectively, and is included within prepaid expenses and other current assets in the Consolidated Balance Sheet. An unrealized loss of $56 million and $278 million, net of adjustment for the mark-to-market on the related debt as described above was recorded in other (income) and expense in the Consolidated Income Statement for the three and six months ended June 30, 2022, respectively. Financial Assets and Liabilities Not Measured at Fair Value Short-Term Receivables and Payables Notes and other accounts receivable 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 and including short-term finance lease liabilities) 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 June 30, 2022 and December 31, 2021, 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 $44,328 million and $44,917 million, and the estimated fair value was $42,143 million and $49,465 million at June 30, 2022 and December 31, 2021, 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	6 Months Ended
	Jun. 30, 2022
Financing Receivables
Financing Receivables	9. Financing Receivables: Financing receivables primarily consist of client loan and installment payment receivables (loans) and 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 hardware, software and services. Payment terms on these financing arrangements are generally for terms up to seven years. Investment in sales-type and direct financing leases relate principally to the company’s Infrastructure products and are for terms ranging generally from two 30 A summary of the components of the company’s financing receivables is presented as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Client Financing Receivables ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Client Loan and Investment in ​ ​ ​ ​ ​ Installment Payment ​ Sales-Type and ​ Commercial Financing Receivables ​ ​ ​ (Dollars in millions) ​ Receivables ​ Direct Financing ​ Held for ​ Held for ​ ​ ​ At June 30, 2022: ​ (Loans) ​ Leases ​ Investment ​ Sale* ​ Total Financing receivables, gross ​ $ 8,343 ​ $ 3,851 ​ $ 177 ​ $ 614 ​ $ 12,985 Unearned income ​ ​ (341) ​ (305) ​ ​ — ​ ​ — ​ ​ (646) Unguaranteed residual value ​ ​ — ​ 383 ​ ​ — ​ ​ — ​ ​ 383 Amortized cost ​ $ 8,002 ​ $ 3,929 ​ $ 177 ​ $ 614 ​ $ 12,721 Allowance for credit losses ​ ​ (110) ​ (56) ​ ​ (6) ​ ​ — ​ ​ (172) Total financing receivables, net ​ $ 7,891 ​ $ 3,872 ​ $ 171 ​ $ 614 ​ $ 12,549 Current portion ​ $ 5,010 ​ $ 1,438 ​ $ 171 ​ $ 614 ​ $ 7,233 Noncurrent portion ​ $ 2,881 ​ $ 2,435 ​ $ — ​ $ — ​ $ 5,316 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Client Financing Receivables ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Client Loan and Investment in ​ ​ ​ ​ Installment Payment ​ Sales-Type and ​ Commercial Financing Receivables ​ ​ ​ (Dollars in millions) ​ Receivables ​ Direct Financing ​ Held for ​ Held for ​ ​ ​ At December 31, 2021: ​ (Loans) ​ Leases ​ Investment ​ Sale* ​ Total Financing receivables, gross ​ $ 9,303 ​ $ 3,336 ​ $ 450 ​ $ 793 ​ $ 13,881 Unearned income ​ ​ (353) ​ ​ (223) ​ ​ — ​ ​ — ​ ​ (576) Unguaranteed residual value ​ ​ — ​ 335 ​ ​ — ​ ​ — ​ ​ 335 Amortized cost ​ $ 8,949 ​ $ 3,448 ​ $ 450 ​ $ 793 ​ $ 13,640 Allowance for credit losses ​ ​ (131) ​ (64) ​ ​ (6) ​ ​ — ​ ​ (201) Total financing receivables, net ​ $ 8,818 ​ $ 3,384 ​ $ 444 ​ $ 793 ​ $ 13,439 Current portion ​ $ 5,371 ​ $ 1,406 ​ $ 444 ​ $ 793 ​ $ 8,014 Noncurrent portion ​ $ 3,447 ​ $ 1,978 ​ $ — ​ $ — ​ $ 5,425 * The carrying value of the receivables classified as held for sale approximates fair value. 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 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 nonrecourse borrowings were $313 million and $408 million at June 30, 2022 and December 31, 2021, respectively. These borrowings are included in note 12, “Borrowings.” ​ Transfer of Financial Assets 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. Throughout 2021, sales of client financing receivables were utilized as part of the company’s cash and liquidity management as well as for credit mitigation. In the first half of 2022, sales of client financing receivables were largely focused on credit mitigation. In addition, the company has an existing agreement with a third-party investor to sell IBM short-term commercial financing receivables on a revolving basis. The company has expanded this agreement to other countries and geographies since commencement in the U.S. and Canada in 2020. The following table presents the total amount of client and commercial financing receivables transferred: ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ For the six months ended June 30: ​ 2022 ​ 2021 Client financing receivables ​ ​ ​ ​ ​ ​ Lease receivables ​ $ 15 ​ $ 732 Loan receivables ​ 2 ​ 1,359 Total client financing receivables transferred ​ $ 17 ​ $ 2,091 Commercial financing receivables ​ ​ ​ ​ ​ ​ Receivables transferred during the period ​ $ 3,914 ​ $ 2,621 Receivables uncollected at end of period* ​ $ 815 ​ $ 821 * 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 June 30, 2022 and 2021. ​ 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 and the impacts to the Consolidated Income Statement, including fees and net gain or loss associated with the transfers of these receivables for the six months ended June 30, 2022 and 2021 were not material. Financing Receivables by Portfolio Segment The following tables present the amortized cost basis for client financing receivables at June 30, 2022 and December 31, 2021, 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 June 30, 2022: ​ Americas ​ EMEA ​ Asia Pacific ​ Total Amortized cost $ 7,092 ​ $ 3,173 ​ $ 1,666 ​ $ 11,930 Allowance for credit losses: ​ ​ ​ ​ ​ Beginning balance at January 1, 2022 ​ $ 111 ​ $ 61 ​ $ 23 ​ $ 195 Write-offs ​ $ (16) ​ $ (1) ​ $ (2) ​ $ (18) Recoveries ​ 1 ​ 0 ​ ​ 4 ​ ​ 5 Additions/(releases) ​ (2) ​ (3) ​ ​ (5) ​ ​ (10) Other* ​ 2 ​ (5) ​ ​ (1) ​ ​ (5) Ending balance at June 30, 2022 ​ $ 96 ​ $ 51 ​ $ 19 ​ $ 166 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ ​ ​ ​ At December 31, 2021: ​ Americas ​ EMEA ​ Asia Pacific ​ Total Amortized cost $ 6,573 ​ $ 3,793 ​ $ 2,031 ​ $ 12,397 Allowance for credit losses: ​ ​ ​ ​ Beginning balance at January 1, 2021 ​ $ 141 ​ $ 77 ​ $ 37 ​ $ 255 Write-offs ​ $ (8) ​ $ (2) ​ $ (7) ​ $ (17) Recoveries ​ 0 ​ 0 ​ ​ 1 ​ ​ 1 Additions/(releases) ​ (19) ​ (11) ​ ​ (7) ​ ​ (38) Other* ​ (3) ​ (3) ​ ​ 0 ​ ​ (7) Ending balance at December 31, 2021 ​ $ 111 ​ $ 61 ​ $ 23 ​ $ 195 * Primarily represents translation adjustments. 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 2021 Annual Report. Any changes to economic models that occurred after the balance sheet date will be reflected in future periods. 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. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Billed Amortized ​ ​ Total ​ Amortized ​ Cost ​ Invoices ​ Cost (Dollars in millions) ​ Amortized ​ Cost ​ > 90 Days and ​ > 90 Days and ​ Not At June 30, 2022: ​ Cost ​ > 90 Days* ​ Accruing* ​ Accruing ​ Accruing** Americas ​ $ 7,092 ​ $ 216 ​ $ 141 ​ $ 11 ​ $ 76 EMEA ​ 3,173 ​ ​ 85 ​ ​ 4 ​ ​ 1 ​ ​ 83 Asia Pacific ​ 1,666 ​ ​ 23 ​ ​ 5 ​ ​ 2 ​ ​ 18 Total client financing receivables ​ $ 11,930 ​ $ 324 ​ $ 150 ​ $ 15 ​ $ 177 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Billed Amortized ​ ​ Total ​ Amortized ​ Cost ​ Invoices ​ Cost (Dollars in millions) ​ Amortized ​ Cost ​ > 90 Days and ​ > 90 Days and ​ Not At December 31, 2021: ​ Cost ​ > 90 Days* ​ Accruing* ​ Accruing ​ Accruing** Americas ​ $ 6,573 ​ $ 188 ​ $ 100 ​ $ 6 ​ $ 90 EMEA ​ 3,793 ​ ​ 99 ​ ​ 7 ​ ​ 2 ​ ​ 95 Asia Pacific ​ 2,031 ​ ​ 25 ​ ​ 5 ​ ​ 2 ​ ​ 20 Total client financing receivables ​ $ 12,397 ​ $ 312 ​ $ 112 ​ $ 10 ​ $ 205 * At a contract level, which includes total billed and unbilled amounts for financing receivables aged greater than 90 days. ** Of the amortized cost not accruing, there was a related allowance of $129 million and $153 million at June 30, 2022 and December 31, 2021, respectively. Financing income recognized on these receivables was immaterial for the three and six months ended June 30, 2022, 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 June 30, 2022 and December 31, 2021, 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. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ Americas EMEA Asia Pacific At June 30, 2022: Aaa – Baa3 Ba1 – D Aaa – Baa3 Ba1 – D Aaa – Baa3 Ba1 – D Vintage year: ​ ​ ​ ​ ​ ​ 2022 ​ $ 1,987 ​ $ 799 ​ $ 614 ​ $ 431 ​ $ 393 ​ $ 86 2021 ​ ​ 1,750 ​ ​ 584 ​ ​ 645 ​ ​ 349 ​ ​ 290 ​ ​ 108 2020 ​ 761 ​ ​ 306 ​ ​ 337 ​ ​ 221 ​ ​ 268 ​ ​ 60 2019 ​ 382 ​ ​ 151 ​ ​ 190 ​ ​ 166 ​ ​ 190 ​ ​ 30 2018 ​ 186 ​ ​ 72 ​ ​ 86 ​ ​ 51 ​ ​ 141 ​ ​ 35 2017 and prior ​ 61 ​ ​ 52 ​ ​ 19 ​ ​ 65 ​ ​ 44 ​ ​ 22 Total ​ $ 5,128 ​ $ 1,964 ​ $ 1,891 ​ $ 1,282 ​ $ 1,326 ​ $ 340 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ Americas ​ EMEA ​ Asia Pacific At December 31, 2021: Aaa – Baa3 Ba1 – D Aaa – Baa3 Ba1 – D Aaa – Baa3 Ba1 – D Vintage year: ​ ​ ​ ​ ​ ​ 2021 ​ $ 2,556 ​ $ 1,147 ​ $ 1,181 ​ $ 778 ​ $ 565 ​ $ 226 2020 ​ 1,013 ​ ​ 392 ​ ​ 506 ​ ​ 342 ​ ​ 381 ​ ​ 86 2019 ​ 544 ​ ​ 236 ​ ​ 287 ​ ​ 291 ​ ​ 297 ​ ​ 51 2018 ​ 338 ​ ​ 117 ​ ​ 189 ​ ​ 85 ​ ​ 211 ​ ​ 64 2017 ​ 108 ​ ​ 50 ​ ​ 15 ​ ​ 52 ​ ​ 74 ​ ​ 17 2016 and prior ​ 20 ​ ​ 53 ​ ​ 21 ​ ​ 46 ​ ​ 38 ​ ​ 20 Total ​ $ 4,579 ​ $ 1,994 ​ $ 2,198 ​ $ 1,595 ​ $ 1,567 ​ $ 464 ​ Troubled Debt Restructurings The company did not have any significant troubled debt restructurings during the six months ended June 30, 2022 or for the year ended December 31, 2021.

Leases

Leases	6 Months Ended
	Jun. 30, 2022
Leases
Leases	10. 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 June 30, ​ Six Months Ended June 30, (Dollars in millions) ​ 2022 2021 ​ 2022 2021 Lease income — ​ ​ ​ ​ ​ ​ ​ Sales-type lease selling price ​ $ 735 ​ $ 390 ​ $ 789 ​ $ 751 Less: Carrying value of underlying assets* ​ (120) ​ (100) ​ (139) ​ (157) Gross profit ​ $ 615 ​ $ 290 ​ $ 651 ​ $ 594 Interest income on lease receivables ​ 45 ​ 47 ​ 90 ​ 98 Total sales-type and direct financing lease income ​ $ 660 ​ $ 337 ​ $ 741 ​ $ 692 Lease income — ​ 27 ​ 47 ​ 56 ​ 98 Variable lease income ​ 28 ​ 22 ​ 56 ​ 79 Total lease income ​ $ 715 ​ $ 406 ​ $ 853 ​ $ 869 * Excludes unguaranteed residual value. ​ Sales-type lease revenue was $735 million and $789 million for the three and six months ended June 30, 2022, respectively, compared to $390 million and $751 million for the three and six months ended June 30, 2021, respectively. The increases in both the three and six month periods were predominantly due to the zSystems product cycle dynamics.

Intangible Assets Including Goo

Intangible Assets Including Goodwill	6 Months Ended
	Jun. 30, 2022
Intangible Assets Including Goodwill
Intangible Assets Including Goodwill	11. Intangible Assets Including Goodwill: Intangible Assets The following tables present the company's intangible asset balances by major asset class: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At June 30, 2022 ​ Gross Carrying Accumulated Net Carrying (Dollars in millions) ​ Amount ​ Amortization ​ Amount* Intangible asset class: ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized software ​ $ 1,705 ​ $ (692) ​ $ 1,013 Client relationships ​ 8,187 ​ (2,591) ​ 5,596 Completed technology ​ 5,562 ​ (2,113) ​ 3,449 Patents/trademarks ​ 2,117 ​ (610) ​ 1,507 Other** ​ 32 ​ (25) ​ 6 Total ​ $ 17,604 ​ $ (6,032) ​ $ 11,571 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, 2021 ​ Gross Carrying Accumulated Net Carrying (Dollars in millions) ​ Amount ​ Amortization ​ Amount* Intangible asset class: ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized software ​ $ 1,696 ​ $ (751) ​ $ 945 Client relationships ​ 9,021 ​ (2,889) ​ 6,132 Completed technology ​ 6,074 ​ (2,259) ​ 3,815 Patents/trademarks ​ 2,196 ​ (586) ​ 1,610 Other** ​ 44 ​ (35) ​ 9 Total ​ $ 19,031 ​ $ (6,520) ​ $ 12,511 * Amounts as of June 30, 2022 and December 31, 2021 included a decrease in net intangible asset balances of $235 million and $221 million, respectively, due to foreign currency translation. ** Other intangibles are primarily acquired proprietary and non-proprietary business processes, methodologies and systems . ​ The net carrying amount of intangible assets decreased $940 million during the first six months of 2022, primarily due to intangible asset amortization, partially offset by additions of acquired intangibles and capitalized software. The aggregate intangible asset amortization expense was $625 million and $1,251 million for the second quarter and first six months of 2022, respectively, compared to $625 million and $1,239 million for the second quarter and first six months of 2021, respectively. In the first six months of 2022, the company retired $501 million of fully amortized intangible assets, impacting both the gross carrying amount and accumulated amortization by this amount. The company also derecognized intangible assets with a gross carrying amount of $1,312 million and $1,149 million of accumulated amortization as part of the divestiture of its healthcare software assets on June 30, 2022. The future amortization expense relating to intangible assets currently recorded in the Consolidated Balance Sheet was estimated to be the following at June 30, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized Acquired ​ (Dollars in millions) ​ Software ​ Intangibles ​ Total Remainder of 2022 ​ $ 304 ​ $ 832 ​ $ 1,136 2023 ​ 431 ​ 1,490 ​ 1,922 2024 ​ 245 ​ 1,473 ​ 1,718 2025 ​ 32 ​ 1,455 ​ 1,487 2026 ​ 0 ​ 1,438 ​ 1,438 Thereafter ​ ​ 0 ​ ​ 3,871 ​ 3,871 ​ Goodwill The changes in the goodwill balances by segment for the six months ended June 30, 2022 and for the year ended December 31, 2021 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Currency ​ ​ ​ ​ ​ ​ ​ ​ Purchase ​ ​ ​ Translation ​ ​ (Dollars in millions) ​ Balance ​ Goodwill ​ Price ​ ​ ​ and Other ​ Balance Segment ​ 1/1/2022 ​ Additions ​ Adjustments ​ Divestitures ​ Adjustments* ​ 6/30/2022 Software ​ $ 43,966 ​ $ 442 ​ $ (108) ​ $ — ​ $ (674) ​ $ 43,626 Consulting ​ 6,797 ​ 461 ​ (13) ​ — ​ (200) ​ 7,044 Infrastructure ​ ​ 4,396 ​ ​ — ​ ​ — ​ ​ (1) ​ ​ (27) ​ ​ 4,368 Other** ​ 484 ​ — ​ — ​ (484) ​ — ​ — Total ​ $ 55,643 ​ $ 903 ​ $ (121) ​ $ (485) ​ $ (901) ​ $ 55,039 * Primarily driven by foreign currency translation. ** The company derecognized $484 million of goodwill related to the divestiture of its healthcare software assets. Refer to note 6, “Acquisitions & Divestitures,” for additional information. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Currency ​ ​ ​ ​ ​ ​ ​ ​ Purchase ​ ​ ​ Translation ​ ​ (Dollars in millions) ​ Balance ​ Goodwill ​ Price ​ ​ ​ and Other ​ Balance Segment ​ 1/1/2021 ​ Additions ​ Adjustments ​ Divestitures ​ Adjustments* ​ 12/31/2021 Software** ​ $ 42,665 ​ $ 1,836 ​ $ 23 ​ $ (13) ​ $ (545) ​ $ 43,966 Consulting ​ 6,145 ​ 713 ​ (21) ​ — ​ (40) ​ 6,797 Infrastructure ​ 4,436 ​ — ​ 0 ​ — ​ (39) ​ 4,396 Other** ​ 520 ​ — ​ — ​ (37) ​ 1 ​ 484 Total ​ $ 53,765 ​ $ 2,549 ​ $ 2 ​ $ (50) ​ $ (623) ​ $ 55,643 * Primarily driven by foreign currency translation. ** Recast to conform to current year presentation. There were no goodwill impairment losses recorded during the first six months of 2022 or full-year 2021 and the company has no accumulated impairment losses. Purchase price adjustments recorded in the first six months of 2022 and full-year 2021 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 first six months of 2022 primarily relate to deferred tax assets and liabilities associated with the Turbonomic acquisition.

Borrowings

Borrowings	6 Months Ended
	Jun. 30, 2022
Borrowings
Borrowings	12. Borrowings: Short-Term Debt ​ ​ ​ ​ ​ ​ ​ ​ ​ At June 30, At December 31, (Dollars in millions) ​ 2022 ​ 2021 Short-term loans ​ $ 230 ​ $ 22 Long-term debt — ​ 5,752 ​ 6,764 Total ​ $ 5,981 ​ $ 6,787 ​ ​ Included within short-term debt in the company’s Consolidated Balance Sheet at June 30, 2022 is $218 million of secured borrowings recorded at fair value from the short-term credit facility and the Exchange as described in note 8, “Financial Assets & Liabilities.” ​ The weighted-average interest rate for short-term loans excluding the aforementioned secured borrowings was 1.9 percent and 6.7 percent at June 30, 2022 and December 31, 2021, respectively. ​ ​ Long-Term Debt ​ Pre-Swap Borrowing ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance Balance (Dollars in millions) ​ Maturities ​ 6/30/2022 ​ 12/31/2021 U.S. dollar debt (weighted-average interest rate at June 30, 2022):* ​ ​ 2.4% 2022 ​ $ 1,904 ​ $ 5,673 3.4% 2023 ​ 1,552 ​ 1,573 3.3% 2024 ​ 5,013 ​ 5,016 7.0% 2025 ​ 605 ​ 608 3.3% 2026 ​ 4,352 ​ 4,356 2.8% 2027 ​ 2,871 ​ 2,221 6.5% 2028 ​ ​ 313 ​ 313 3.5% ​ 2029 ​ ​ 3,250 ​ ​ 3,250 2.0% ​ 2030 ​ ​ 1,350 ​ ​ 1,350 4.4% 2032 ​ 1,100 ​ 600 8.0% 2038 ​ 83 ​ 83 4.5% 2039 ​ 2,745 ​ 2,745 2.9% ​ 2040 ​ ​ 650 ​ 650 4.0% 2042 ​ 1,107 ​ ​ 1,107 7.0% 2045 ​ 27 ​ 27 4.7% 2046 ​ 650 ​ 650 4.3% ​ 2049 ​ ​ 3,000 ​ 3,000 3.0% ​ 2050 ​ ​ 750 ​ ​ 750 3.4% ​ 2052 ​ ​ 650 ​ ​ — 7.1% 2096 ​ 316 ​ 316 ​ ​ ​ ​ $ 32,288 ​ $ 34,290 Other currencies (weighted-average interest rate at June 30, 2022, in parentheses):* ​ ​ Euro (1.1%) 2023–2040 ​ $ 16,718 ​ $ 15,903 Pound sterling (2.6%) 2022 ​ 364 ​ 406 Japanese yen (0.3%) 2022–2026 ​ 1,070 ​ 1,263 Other (15.7%) 2022–2025 ​ 315 ​ 378 ​ ​ ​ ​ $ 50,755 ​ $ 52,240 Finance lease obligations (2.0%) ​ 2022–2030 ​ ​ 108 ​ ​ 99 ​ ​ ​ ​ $ 50,863 ​ $ 52,339 Less: net unamortized discount ​ 837 ​ 839 Less: net unamortized debt issuance costs ​ 134 ​ 130 Add: fair value adjustment** ​ 187 ​ 311 ​ ​ ​ ​ $ 50,079 ​ $ 51,681 Less: current maturities ​ 5,752 ​ 6,764 Total ​ $ 44,328 ​ $ 44,917 * Includes notes, debentures, bank loans and secured borrowings. ** 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. In the first quarter of 2022, the company issued $2.3 billion of Euro fixed-rate notes in tranches with maturities ranging from 8 to 12 years and coupons ranging from 0.875 to 1.25 percent, and $1.8 billion of U.S. dollar fixed-rate notes with maturities ranging from 5 to 30 years and coupons ranging from 2.20 to 3.43 percent. Pre-swap annual contractual obligations of long-term debt outstanding at June 30, 2022, were as follows: ​ ​ ​ ​ ​ (Dollars in millions) Total Remainder of 2022 ​ $ 2,778 2023 ​ 4,607 2024 ​ 6,262 2025 ​ 3,745 2026 ​ 4,664 Thereafter ​ 28,807 Total ​ $ 50,863 ​ Interest on Debt ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ ​ For the six months ended June 30: ​ 2022 ​ 2021 Cost of financing ​ $ 165 ​ $ 210 Interest expense ​ 607 ​ 561 Interest capitalized ​ 2 ​ 2 Total interest paid and accrued ​ $ 775 ​ $ 774 ​ Lines of Credit On June 30, 2022, the company amended its existing $2.5 billion Three-Year Credit Agreement and $7.5 billion Five-Year Credit Agreement (the Credit Agreements) to extend the maturity dates to June 20, 2025 and June 22, 2027, respectively, and to replace the London Interbank Offered Rate (LIBOR) interest rate provisions with customary provisions based on the Secured Overnight Financing Rate (SOFR).

Commitments

Commitments	6 Months Ended
	Jun. 30, 2022
Commitments
Commitments	13. Commitments: The company’s extended lines of credit to third-party entities include unused amounts of $1.3 billion and $1.7 billion at June 30, 2022 and December 31, 2021, 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 $2.7 billion and $3.2 billion at June 30, 2022 and December 31, 2021, 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 2021 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 June 30, 2022. 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 June 30, 2022 and December 31, 2021 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) 2022 2021 Balance at January 1 ​ $ 77 ​ $ 83 Current period accruals ​ 39 ​ 36 Accrual adjustments to reflect actual experience ​ (1) ​ (2) Charges incurred ​ (41) ​ (45) Balance at June 30 ​ $ 74 ​ $ 73 ​ Extended Warranty Liability ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) 2022 2021 Balance at January 1 ​ $ 350 ​ $ 425 Revenue deferred for new extended warranty contracts ​ 84 ​ 50 Amortization of deferred revenue ​ (83) ​ (104) Other* ​ (12) ​ (5) Balance at June 30 ​ $ 339 ​ $ 367 Current portion ​ $ 172 ​ $ 184 Noncurrent portion ​ $ 167 ​ $ 183 * Other primarily consists of foreign currency translation adjustments.

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2022
Contingencies
Contingencies	14. 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, 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, 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 June 30, 2022 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. In December 2017, CIS General Insurance Limited (CISGIL) sued IBM UK regarding a contract entered into by IBM UK and CISGIL in 2015 to implement and operate an IT insurance platform. The contract was terminated by IBM UK in July 2017 for non-payment by CISGIL. CISGIL alleges wrongful termination, breach of contract and breach of warranty. In February 2021, the Technology & Construction Court in London rejected the majority of CISGIL’s claims and ruled in IBM’s favor on its counterclaim. The court’s decision required IBM to pay approximately $20 million in damages, plus interest and litigation costs. In April 2022, the Court of Appeal awarded CISGIL additional damages of approximately $89 million, plus interest and litigation costs. IBM filed an application for permission to appeal with the UK Supreme Court. 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 April 5, 2022, a putative securities law class action was commenced in the United States District Court for the Southern District of New York alleging that during the period from April 4, 2017 through October 20, 2021, certain strategic imperatives revenues were misclassified. The company, two current IBM senior executives, and two former IBM senior executives are named as defendants. On June 23, 2022, the court entered an order appointing Iron Workers Local 580 Joint Funds as lead plaintiff. On March 25, 2022, the Board of Directors received a shareholder demand letter making similar allegations and demanding that the company’s Board of Directors take action to assert the company’s rights. A special committee of independent directors has been formed to investigate the issues raised in the letter. 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. 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. The judgment will be appealed. 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 $400 million. The company believes it will prevail on these matters and that this amount is not a meaningful indicator of liability.

Equity Activity

Equity Activity	6 Months Ended
	Jun. 30, 2022
Equity Activity
Equity Activity	15. 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 June 30, 2022: ​ Amount ​ Benefit ​ Amount Other comprehensive income/(loss): ​ ​ ​ Foreign currency translation adjustments ​ $ 213 ​ $ (347) ​ $ (134) 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 ​ $ 200 ​ $ (53) ​ $ 147 Reclassification of (gains)/losses to: ​ ​ ​ Cost of services ​ (13) ​ 3 ​ (10) Cost of sales ​ (23) ​ 7 ​ (17) Cost of financing ​ 6 ​ (2) ​ 5 SG&A expense ​ (14) ​ 4 ​ (10) Other (income) and expense ​ 38 ​ (10) ​ 29 Interest expense ​ 22 ​ (6) ​ 16 Total unrealized gains/(losses) on cash flow hedges ​ $ 217 ​ $ (56) ​ $ 161 Retirement-related benefit plans*: ​ ​ ​ Prior service costs/(credits) ​ $ — ​ $ 0 ​ $ 0 Net (losses)/gains arising during the period ​ ​ 1 ​ ​ (3) ​ ​ (2) Curtailments and settlements ​ 11 ​ ​ (3) ​ ​ 8 Amortization of prior service (credits)/costs ​ 6 ​ ​ (2) ​ ​ 5 Amortization of net (gains)/losses ​ 450 ​ ​ (125) ​ ​ 325 Total retirement-related benefit plans ​ $ 468 ​ $ (132) ​ $ 336 Other comprehensive income/(loss) ​ $ 897 ​ $ (534) ​ $ 363 * These accumulated other comprehensive income (AOCI) components are included in the computation of net periodic pension cost. 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 June 30, 2021: ​ Amount ​ Benefit ​ Amount Other comprehensive income/(loss): ​ ​ ​ Foreign currency translation adjustments ​ $ 28 ​ $ 44 ​ $ 72 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 ​ $ (34) ​ $ 9 ​ $ (26) Reclassification of (gains)/losses to: ​ ​ ​ ​ ​ ​ Cost of services ​ (7) ​ 2 ​ (5) Cost of sales ​ 10 ​ (3) ​ 8 Cost of financing ​ 6 ​ (1) ​ 4 SG&A expense ​ 16 ​ (4) ​ 12 Other (income) and expense ​ 49 ​ (12) ​ 37 Interest expense ​ 16 ​ (4) ​ 12 Total unrealized gains/(losses) on cash flow hedges ​ $ 56 ​ $ (14) ​ $ 42 Retirement-related benefit plans*: ​ ​ ​ Prior service costs/(credits) ​ $ 0 ​ $ 0 ​ $ 0 Net (losses)/gains arising during the period ​ ​ 2 ​ ​ 10 ​ ​ 11 Curtailments and settlements ​ 16 ​ ​ (5) ​ ​ 11 Amortization of prior service (credits)/costs ​ 1 ​ ​ 1 ​ ​ 1 Amortization of net (gains)/losses ​ 643 ​ ​ (175) ​ ​ 467 Total retirement-related benefit plans ​ $ 661 ​ $ (170) ​ $ 491 Other comprehensive income/(loss) ​ $ 745 ​ $ (140) ​ $ 605 * These AOCI components are included in the computation of net periodic pension cost. 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 six months ended June 30, 2022: ​ Amount ​ Benefit ​ Amount Other comprehensive income/(loss): ​ ​ ​ Foreign currency translation adjustments ​ $ 655 ​ $ (483) ​ $ 172 Net changes related to available-for-sale securities: ​ ​ ​ Unrealized gains/(losses) arising during the period ​ $ (1) ​ $ 0 ​ $ 0 Reclassification of (gains)/losses to other (income) and expense ​ — ​ — ​ — Total net changes related to available-for-sale securities ​ $ (1) ​ $ 0 ​ $ 0 Unrealized gains/(losses) on cash flow hedges: ​ ​ ​ Unrealized gains/(losses) arising during the period ​ $ 260 ​ $ (69) ​ $ 191 Reclassification of (gains)/losses to: ​ ​ ​ Cost of services ​ (28) ​ 7 ​ (21) Cost of sales ​ (35) ​ 10 ​ (25) Cost of financing ​ 12 ​ (3) ​ 9 SG&A expense ​ (20) ​ 5 ​ (14) Other (income) and expense ​ 45 ​ (11) ​ 34 Interest expense ​ 43 ​ (11) ​ 32 Total unrealized gains/(losses) on cash flow hedges ​ $ 276 ​ $ (71) ​ $ 205 Retirement-related benefit plans*: ​ ​ ​ Prior service costs/(credits) ​ $ (5) ​ $ 5 ​ $ 0 Net (losses)/gains arising during the period ​ ​ 10 ​ ​ (7) ​ ​ 3 Curtailments and settlements ​ 19 ​ (5) ​ 14 Amortization of prior service (credits)/costs ​ 13 ​ (3) ​ 10 Amortization of net (gains)/losses ​ 917 ​ (256) ​ 662 Total retirement-related benefit plans ​ $ 954 ​ $ (266) ​ $ 689 Other comprehensive income/(loss) ​ $ 1,885 ​ $ (819) ​ $ 1,066 * These AOCI components are included in the computation of net periodic pension cost. 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 six months ended June 30, 2021: ​ Amount ​ Benefit ​ Amount Other comprehensive income/(loss): ​ ​ ​ Foreign currency translation adjustments ​ $ 577 ​ $ (184) ​ $ 393 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 ​ $ 153 ​ $ (39) ​ $ 114 Reclassification of (gains)/losses to: ​ ​ ​ ​ ​ ​ Cost of services ​ (21) ​ 5 ​ (16) Cost of sales ​ 32 ​ (8) ​ 24 Cost of financing ​ 12 ​ (3) ​ 9 SG&A expense ​ 31 ​ (8) ​ 23 Other (income) and expense ​ 165 ​ (41) ​ 123 Interest expense ​ 31 ​ (8) ​ 24 Total unrealized gains/(losses) on cash flow hedges ​ $ 404 ​ $ (102) ​ $ 301 Retirement-related benefit plans*: ​ ​ ​ Prior service costs/(credits) ​ $ 0 ​ $ 0 ​ $ 0 Net (losses)/gains arising during the period ​ ​ 22 ​ ​ 4 ​ ​ 25 Curtailments and settlements ​ 34 ​ (10) ​ 23 Amortization of prior service (credits)/costs ​ 4 ​ 0 ​ 4 Amortization of net (gains)/losses ​ 1,291 ​ (352) ​ 938 Total retirement-related benefit plans ​ $ 1,350 ​ $ (359) ​ $ 991 Other comprehensive income/(loss) ​ $ 2,330 ​ $ (645) ​ $ 1,685 * 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) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Change Net Unrealized ​ ​ ​ Net Unrealized ​ Foreign ​ Retirement- ​ Gains/(Losses) ​ Accumulated ​ ​ Gains/(Losses) ​ Currency ​ Related ​ on Available- ​ Other ​ ​ on Cash Flow ​ Translation ​ Benefit ​ For-Sale ​ Comprehensive (Dollars in millions) ​ Hedges ​ Adjustments* ​ Plans ​ Securities ​ Income/(Loss) January 1, 2022 ​ $ (18) ​ $ (3,362) ​ $ (19,854) ​ $ (1) ​ $ (23,234) Other comprehensive income before reclassifications ​ 191 ​ 172 ​ 3 ​ 0 ​ 366 Amount reclassified from accumulated other comprehensive income ​ 14 ​ — ​ 686 ​ — ​ 699 Total change for the period ​ $ 205 ​ $ 172 ​ $ 689 ​ $ 0 ​ $ 1,066 June 30, 2022 ​ $ 187 ​ $ (3,189) ​ $ (19,165) ​ $ (1) ​ $ (22,169) * Foreign currency translation adjustments are presented gross except for any associated hedges which are presented net of tax. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Change Net Unrealized ​ ​ ​ Net Unrealized ​ Foreign ​ Retirement- ​ Gains/(Losses) ​ Accumulated ​ ​ Gains/(Losses) ​ Currency ​ Related ​ on Available- ​ Other ​ ​ on Cash Flow ​ Translation ​ Benefit ​ For-Sale ​ Comprehensive (Dollars in millions) ​ Hedges ​ Adjustments* ​ Plans ​ Securities ​ Income/(Loss) January 1, 2021 ​ $ (456) ​ $ (4,665) ​ $ (24,216) ​ $ 0 ​ $ (29,337) Other comprehensive income before reclassifications ​ 114 ​ 393 ​ 25 ​ 0 ​ 532 Amount reclassified from accumulated other comprehensive income ​ 187 ​ — ​ 966 ​ — ​ 1,153 Total change for the period ​ $ 301 ​ $ 393 ​ $ 991 ​ $ 0 ​ $ 1,685 June 30, 2021 ​ $ (155) ​ $ (4,271) ​ $ (23,225) ​ $ (1) ​ $ (27,652) * Foreign currency translation adjustments are presented gross except for any associated hedges which are presented net of tax.

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
	Jun. 30, 2022
Derivative Financial Instruments
Derivative Financial Instruments	16. 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 June 30, 2022 and December 31, 2021, the amount recognized in other accounts receivables for the right to reclaim cash collateral was $52 million and $2 million, respectively. At June 30, 2022 and December 31, 2021, the amount recognized in accounts payable for the obligation to return cash collateral was $14 million and $38 million, respectively. The company restricts the use of cash collateral received to rehypothecation, and therefore reports it in restricted cash in the Consolidated Balance Sheet. At June 30, 2022 and December 31, 2021, the amount rehypothecated was $12 million and $2 million, respectively. Additionally, if derivative exposures covered by a qualifying master netting agreement had been netted in the Consolidated Balance Sheet at June 30, December 31, On May 19, 2022, in connection with the disposition of 22.3 million shares of Kyndryl common stock, the company entered into a cash-settled swap with the lender of the short-term credit facility as the counterparty that maintained IBM’s continued economic exposure in those shares pursuant to the Exchange. Refer to note 8, “Financial Assets & Liabilities,” for additional information. The notional value of the swap is $311 million. Upon settlement of the swap, no later than November 2, 2022, IBM will receive or pay an amount derived from the difference between the VWAP of the Kyndryl shares over the outstanding term of the swap and the strike price as of May 19, 2022. The fair value of the swap at June 30, 2022 was $88 million and is included within other million was recorded in other (income) and expense in the Consolidated Income Statement. ​ 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 June 30, 2022 and December 31, 2021, the total notional amount of the company’s interest-rate swaps was $4.4 billion and $0.4 billion, respectively. The weighted-average remaining maturity of these instruments at June 30, 2022 and December 31, 2021 was approximately 5.4 years and 1.2 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 June 30, 2022 and December 31, 2021. 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 June 30, 2022 and December 31, 2021. In connection with cash flow hedges of forecasted interest payments related to the company's borrowings, the company recorded net losses (before taxes) of $148 million and $157 million at June 30, 2022 and December 31, 2021, respectively, in AOCI. The company estimates that $18 million of the deferred net losses (before taxes) on derivatives in AOCI at June 30, 2022 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 foreign subsidiaries to reduce the volatility in stockholders’ equity caused by changes in foreign currency exchange rates in the functional currency of major foreign subsidiaries with respect to the U.S. dollar. At June 30, 2022 and December 31, 2021, the carrying value of debt designated as hedging instruments was $14.0 billion and $14.1 billion, respectively. The company also uses cross-currency swaps and foreign exchange forward contracts for this risk management purpose. At June 30, 2022 and December 31, 2021, the total notional amount of derivative instruments designated as net investment hedges was $4.7 billion and $6.8 billion, respectively. At both June 30, 2022 and December 31, 2021, the weighted-average remaining maturity of these instruments was approximately 0.1 year. 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 June 30, 2022, the maximum remaining length of time over which the company hedged its exposure is approximately two years. At June 30, 2022 and December 31, 2021, the total notional amount of forward contracts designated as cash flow hedges of forecasted royalty and cost transactions was $8.2 billion and $7.2 billion, respectively. At both June 30, 2022 and December 31, 2021, the weighted-average remaining maturity of these instruments was approximately 0.6 years. At June 30, 2022 and December 31, 2021, in connection with cash flow hedges of anticipated royalties and cost transactions, the company recorded net gains (before taxes) of $537 million and $315 million, respectively, in AOCI. The company estimates that $471 million of deferred net gains (before taxes) on derivatives in AOCI at June 30, 2022 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 employs cross-currency swaps to convert fixed-rate foreign currency denominated debt to fixed-rate debt denominated in the functional currency of the borrowing entity. These swaps are accounted for as cash flow hedges. At June 30, 2022, the maximum length of time remaining over which the company hedged its exposure is approximately six years. At June 30, 2022 and December 31, 2021, the total notional amount of cross-currency swaps designated as cash flow hedges of foreign currency denominated debt was $3.0 billion and $2.0 billion, respectively. At June 30, 2022 and December 31, 2021, in connection with cash flow hedges of foreign currency denominated borrowings, the company recorded net losses (before taxes) of $128 million and $174 million, respectively, in AOCI. The company estimates that $31 million of deferred net gains (before taxes) on derivatives in AOCI at June 30, 2022 will be reclassified to net income within the next 12 months, providing an offsetting economic impact against the underlying exposure. 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 foreign exchange 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 June 30, 2022 and December 31, 2021, the total notional amount of derivative instruments in economic hedges of foreign currency exposure was $5.6 billion and $6.8 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 June 30, 2022 and December 31, 2021, the total notional amount of derivative instruments in economic hedges of these compensation obligations was $1.1 billion and $1.4 billion, respectively. Cumulative Basis Adjustments for Fair Value Hedges At June 30, 2022 and December 31, 2021, the following amounts were recorded in the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, (Dollars in millions) ​ 2022 ​ 2021 Short-term debt: ​ ​ ​ Carrying amount of the hedged item ​ $ (224) ​ $ (227) ​ Cumulative hedging adjustments included in the carrying amount — assets/(liabilities)* ​ 1 ​ (2) ​ Long-term debt: ​ ​ ​ Carrying amount of the hedged item ​ $ (4,366) ​ $ (508) ​ Cumulative hedging adjustments included in the carrying amount — assets/(liabilities)* ​ (188) ​ (309) ​ * 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gains/(Losses) of (Dollars in millions) ​ Total ​ Total Hedge Activity For the three months ended June 30: 2022 2021 2022 2021 Cost of services ​ $ 5,399 ​ $ 4,720 ​ $ 13 ​ $ 7 ​ Cost of sales ​ 1,750 ​ 1,499 * 23 ​ (10) ​ Cost of financing ​ 96 ​ 146 * 1 ​ 0 ​ SG&A expense ​ 4,855 ​ 4,849 ​ (152) ​ 67 ​ Other (income) and expense ​ (81) ​ 302 ​ (439) ​ (79) ​ Interest expense ​ 297 ​ 281 ​ 3 ​ (1) ​ * Reclassified to conform to current year presentation. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gain (Loss) Recognized in Consolidated Income Statement ​ ​ Consolidated ​ Recognized on ​ Attributable to Risk (Dollars in millions) ​ Income Statement ​ Derivatives ​ Being Hedged (2) For the three months ended June 30: Line Item 2022 2021 2022 2021 Derivative instruments in fair value hedges (1): ​ ​ ​ ​ Interest rate contracts Cost of financing ​ $ (17) ​ $ 0 ​ $ 23 ​ $ 4 ​ Interest expense ​ (61) ​ 0 ​ 81 ​ 11 Derivative instruments not designated as hedging instruments: ​ ​ ​ ​ Foreign exchange contracts Other (income) and expense ​ (313) ​ (30) ​ N/A ​ N/A Equity contracts SG&A expense ​ (166) ​ 83 ​ N/A ​ N/A ​ ​ Other (income) and expense ​ ​ (88) ​ ​ — ​ ​ N/A ​ ​ N/A Total ​ $ (645) ​ $ 54 ​ $ 104 ​ $ 15 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gain (Loss) Recognized in Consolidated Income Statement and Other Comprehensive Income (Dollars in millions) ​ ​ ​ ​ ​ ​ ​ Consolidated ​ Reclassified ​ Amounts Excluded from For the three months ​ Recognized in OCI ​ Income Statement ​ from AOCI ​ Effectiveness Testing (3) ended June 30: 2022 2021 Line Item 2022 2021 2022 2021 Derivative instruments in cash flow hedges: ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts ​ $ — ​ $ — Cost of financing ​ $ (1) ​ $ (1) ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ Interest expense ​ (3) ​ (3) ​ — ​ — ​ Foreign exchange contracts ​ 200 ​ (34) Cost of services ​ 13 ​ 7 ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ Cost of sales ​ 23 ​ (10) ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ Cost of financing ​ (5) ​ (5) ​ ​ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ SG&A expense ​ 14 ​ (16) ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ Other (income) and expense ​ (38) ​ (49) ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ Interest expense ​ (19) ​ (12) ​ ​ — ​ ​ — ​ Instruments in net investment hedges (4): ​ ​ ​ ​ ​ ​ ​ ​ Foreign exchange contracts ​ 1,379 ​ (177) Cost of financing ​ — ​ — ​ 1 ​ 1 ​ ​ ​ ​ ​ ​ Interest expense ​ — ​ — ​ 5 ​ 4 ​ Total ​ $ 1,579 ​ $ (211) ​ $ (16) ​ $ (90) ​ $ 6 ​ $ 5 ​ (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) The company’s policy is to recognize all fair value changes in amounts excluded from effectiveness testing in net income each period. (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 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gains/(Losses) of (Dollars in millions) ​ Total ​ Total Hedge Activity For the six months ended June 30: 2022 2021 2022 2021 Cost of services ​ $ 10,747 ​ $ 9,364 ​ $ 28 ​ $ 21 ​ Cost of sales ​ 3,165 ​ 2,878 * 35 ​ (32) ​ Cost of financing ​ 194 ​ 283 * (1) ​ 2 ​ SG&A expense ​ 9,452 ​ 9,536 ​ (223) ​ 101 ​ Other (income) and expense ​ 166 ​ 647 ​ (541) ​ (239) ​ Interest expense ​ 607 ​ 561 ​ (3) ​ 4 ​ * Reclassified to conform to current year presentation. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gain (Loss) Recognized in Consolidated Income Statement ​ ​ Consolidated ​ Recognized on ​ Attributable to Risk (Dollars in millions) ​ Income Statement ​ Derivatives ​ Being Hedged (2) For the six months ended June 30: ​ Line Item ​ 2022 2021 ​ 2022 2021 Derivative instruments in fair value hedges (1): ​ ​ ​ ​ Interest rate contracts Cost of financing ​ $ (18) ​ $ 0 ​ $ 26 ​ $ 11 ​ Interest expense ​ (65) ​ (1) ​ 97 ​ 29 Derivative instruments not designated as hedging instruments: ​ ​ ​ ​ Foreign exchange contracts Other (income) and expense ​ (409) ​ (74) ​ N/A ​ N/A Equity contracts SG&A expense ​ (243) ​ 133 ​ N/A ​ N/A ​ ​ Other (income) and expense ​ ​ (88) ​ ​ — ​ ​ N/A ​ ​ N/A Total ​ $ (821) ​ $ 57 ​ $ 123 ​ $ 40 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gain (Loss) Recognized in Consolidated Income Statement and Other Comprehensive Income (Dollars in millions) ​ ​ ​ ​ ​ ​ ​ Consolidated ​ Reclassified ​ Amounts Excluded from For the six months ​ Recognized in OCI ​ Income Statement ​ from AOCI ​ Effectiveness Testing (3) ended June 30: 2022 2021 Line Item 2022 2021 2022 2021 Derivative instruments in cash flow hedges: ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts ​ $ — ​ $ — Cost of financing ​ $ (2) ​ $ (2) ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ Interest expense ​ (7) ​ (6) ​ — ​ — ​ Foreign exchange contracts ​ 260 ​ 153 Cost of services ​ 28 ​ 21 ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ Cost of sales ​ 35 ​ (32) ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ Cost of financing ​ (10) ​ (9) ​ ​ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ SG&A expense ​ 20 ​ (31) ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ Other (income) and expense ​ (45) ​ (165) ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ Interest expense ​ (36) ​ (25) ​ ​ — ​ ​ — ​ Instruments in net investment hedges (4): ​ ​ ​ ​ ​ ​ ​ ​ Foreign exchange contracts ​ 1,920 ​ 730 Cost of financing ​ — ​ — ​ 2 ​ 3 ​ ​ ​ ​ ​ ​ Interest expense ​ — ​ — ​ 7 ​ 8 ​ Total ​ $ 2,180 ​ $ 883 ​ $ (16) ​ $ (251) ​ $ 9 ​ $ 11 ​ (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) The company’s policy is to recognize all fair value changes in amounts excluded from effectiveness testing in net income each period. (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 six months ended June 30, 2022 and 2021, 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	6 Months Ended
	Jun. 30, 2022
Stock-Based Compensation
Stock-Based Compensation	17. 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 June 30, ​ Six Months Ended June 30, (Dollars in millions) ​ 2022 ​ 2021 ​ 2022 ​ 2021 Cost ​ $ 43 ​ $ 35 ​ $ 84 ​ $ 68 Selling, general and administrative ​ 153 ​ 141 ​ 289 ​ 256 Research, development and engineering ​ 58 ​ 50 ​ 115 ​ 99 Pre-tax stock-based compensation cost ​ $ 254 ​ $ 225 ​ $ 488 ​ $ 423 Income tax benefits ​ (82) ​ (64) ​ (139) ​ (112) Total net stock-based compensation cost ​ $ 172 ​ $ 162 ​ $ 348 ​ $ 311 ​ Effective April 1, 2022, the company increased the discount for eligible participants under its Employees Stock Purchase Plan (ESPP) from 5 percent to 15 percent off the average market price on the date of purchase. With this change, the ESPP is considered compensatory under the accounting requirements for stock-based compensation. Pre-tax stock-based compensation cost for the three months ended June 30, 2022 increased $29 million compared to the corresponding period in the prior year, including increases in ESPP ($14 million), performance share units ($8 million), stock options ($5 million) and restricted stock units ($2 million). The increases primarily relate to the ESPP being considered compensatory and a change in the timing of the company’s executive grant cycle in 2022. Pre-tax stock-based compensation cost for the six months ended June 30, 2022 increased $64 million compared to the corresponding period in the prior year, including increases in restricted stock units ($29 million), ESPP ($14 million), performance share units ($10 million) and stock options ($10 million). The increases are driven by the same factors described above. Total unrecognized compensation cost related to non-vested awards at June 30, 2022 was $1.4 billion and is expected to be recognized over a weighted-average period of approximately 2.5 years. Capitalized stock-based compensation cost was not material at June 30, 2022 and 2021.

Retirement-Related Benefits

Retirement-Related Benefits	6 Months Ended
	Jun. 30, 2022
Retirement-Related Benefits
Retirement-Related Benefits	18. Retirement-Related Benefits: The company offers defined benefit (DB) pension plans, defined contribution pension plans, as well as nonpension postretirement plans primarily consisting of retiree medical benefits. 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 June 30: ​ 2022 ​ 2021 ​ Change Retirement-related plans — ​ ​ ​ Defined benefit and contribution pension plans — ​ $ 456 ​ $ 600 (24.0) % Nonpension postretirement plans — ​ 33 ​ 44 (25.0) ​ Total ​ $ 489 ​ $ 644 (24.1) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Yr. to Yr. (Dollars in millions) ​ ​ ​ ​ ​ ​ ​ Percent For the six months ended June 30: ​ 2022 ​ 2021 ​ Change Retirement-related plans — ​ ​ ​ Defined benefit and contribution pension plans — ​ $ 934 ​ $ 1,219 (23.4) % Nonpension postretirement plans — ​ 66 ​ 88 (25.0) ​ Total ​ $ 1,000 ​ $ 1,307 (23.5) % ​ The following tables provide the components of the cost/(income) for the company’s pension plans. Cost/(Income) of Pension Plans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ U.S. Plans ​ Non-U.S. Plans For the three months ended June 30: 2022 2021 2022 2021 Service cost ​ $ — ​ $ — ​ $ 59 ​ $ 68 Interest cost* ​ 302 ​ 277 ​ 131 ​ 108 Expected return on plan assets* ​ (475) ​ (451) ​ (259) ​ (279) Amortization of prior service costs/(credits)* ​ 2 ​ 4 ​ 3 ​ (5) Recognized actuarial losses* ​ 179 ​ 249 ​ 260 ​ 352 Curtailments and settlements* ​ — ​ — ​ 11 ​ 16 Multi-employer plans ​ — ​ — ​ 3 ​ 5 Other costs/(credits)* ​ — ​ — ​ 6 ​ 3 Total net periodic pension (income)/cost of defined benefit plans ​ $ 8 ​ $ 80 ​ $ 215 ​ $ 268 Cost of defined contribution plans ​ 141 ​ 151 ​ 92 ​ 101 Total defined benefit and contribution pension plans cost recognized in the Consolidated Income Statement ​ $ 149 ​ $ 231 ​ $ 307 ​ $ 369 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ U.S. Plans ​ Non-U.S. Plans For the six months ended June 30: 2022 2021 2022 2021 Service cost ​ $ — ​ $ — ​ $ 123 ​ $ 133 Interest cost* ​ 603 ​ 555 ​ 270 ​ 216 Expected return on plan assets* ​ (950) ​ (901) ​ (532) ​ (559) Amortization of prior service costs/(credits)* ​ 4 ​ 8 ​ 7 ​ (7) Recognized actuarial losses* ​ 359 ​ 498 ​ 537 ​ 708 Curtailments and settlements* ​ — ​ — ​ 19 ​ 34 Multi-employer plans ​ — ​ — ​ 7 ​ 11 Other costs/(credits)* ​ — ​ — ​ 15 ​ 15 Total net periodic pension (income)/cost of defined benefit plans ​ $ 15 ​ $ 160 ​ $ 446 ​ $ 551 Cost of defined contribution plans ​ 282 ​ 302 ​ 190 ​ 206 Total defined benefit and contribution pension plans cost recognized in the Consolidated Income Statement ​ $ 298 ​ $ 462 ​ $ 636 ​ $ 757 * These components of net periodic pension cost are included in other (income) and expense in the Consolidated Income Statement. The following tables provide the components of the cost for the company’s nonpension postretirement plans. Cost of Nonpension Postretirement Plans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ U.S. Plan ​ Non-U.S. Plans For the three months ended June 30: 2022 2021 2022 2021 Service cost ​ $ 1 ​ $ 2 ​ $ 1 ​ $ 1 Interest cost* ​ 18 ​ 16 ​ 9 ​ 8 Expected return on plan assets* ​ — ​ — ​ (1) ​ (1) Amortization of prior service costs/(credits)* ​ 1 ​ 1 ​ 0 ​ 0 Recognized actuarial losses* ​ 2 ​ 13 ​ 1 ​ 4 Curtailments and settlements* ​ — ​ — ​ — ​ 0 Total nonpension postretirement plans cost recognized in the Consolidated Income Statement ​ $ 23 ​ $ 32 ​ $ 10 ​ $ 13 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ U.S. Plan ​ Non-U.S. Plans For the six months ended June 30: 2022 2021 2022 2021 Service cost ​ $ 2 ​ $ 4 ​ $ 2 ​ $ 2 Interest cost* ​ 37 ​ 32 ​ 18 ​ 16 Expected return on plan assets* ​ — ​ — ​ (1) ​ (2) Amortization of prior service costs/(credits)* ​ 2 ​ 2 ​ 0 ​ 0 Recognized actuarial losses* ​ 4 ​ 26 ​ 2 ​ 8 Curtailments and settlements* ​ — ​ — ​ — ​ 0 Total nonpension postretirement plans cost recognized in the Consolidated Income Statement ​ $ 46 ​ $ 64 ​ $ 20 ​ $ 25 * These components of net periodic pension cost are included in other (income) and expense in the Consolidated Income Statement. The company does not anticipate any significant changes to the expected plan contributions in 2022 from the amounts disclosed in the 2021 Annual Report. The table below includes contributions to the following plans: ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ Plan Contributions For the six months ended June 30: ​ ​ 2022 2021 U.S. and non-U.S. nonpension postretirement benefit plans ​ $ 202 ​ $ 191 Non-U.S. DB and multi-employer plans* ​ 43 ​ 42 Total plan contributions ​ $ 245 ​ $ 233 * Amounts reported net of refunds. ​ During the six months ended June 30, 2022 and 2021, the company contributed $182 million and $235 million of U.S. Treasury Securities, respectively, to the non-U.S. DB plans and nonpension postretirement benefit plans. Additionally, during the six months ended June 30, 2022 and 2021, the company contributed $261 million and $249 million in U.S. Treasury securities, respectively, to the Active Medical Trust. Contributions made with U.S. Treasury securities are considered a non-cash transaction. ​

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2022
Subsequent Events
Subsequent Events	19. Subsequent Events ​ On July 20, 2022, the company issued $3.25 billion of fixed-rate notes in tranches with maturities ranging from 3 to 30 years and coupons ranging from 4.00 to 4.90 percent. ​ On July 25, 2022, the company announced that the Board of Directors approved a quarterly dividend of $1.65 per common share. The dividend is payable September 10, 2022 to shareholders of record on August 10, 2022. ​

Significant Accounting Policies

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2022
Significant Accounting Policies
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. On November 3, 2021, the company completed the separation of its managed infrastructure services unit into a new public company with the distribution of 80.1 percent of the outstanding common stock of Kyndryl Holdings, Inc. (Kyndryl) to IBM stockholders on a pro rata basis. To effect the separation, IBM stockholders received one The accounting requirements for reporting the separation of Kyndryl as a discontinued operation were met when the separation was In the first quarter of 2022, the company realigned its management structure to reflect the planned divestiture of its healthcare software assets which was completed in the second quarter of 2022. This change impacted the company’s Software segment and Other–divested businesses category. In the fourth quarter of 2021, immediately prior to the separation of Kyndryl, the company made a number of changes to its organizational structure and management system. These changes impacted the company’s reportable segments but did not impact the Consolidated Financial Statements. Refer to note 5, “Segments,” for additional information on the company’s reportable segments. The segments are reported on a comparable basis for all periods. ​ Noncontrolling interest amounts of $5.5 million and $4.2 million, net of tax, for the three months ended June 30, 2022 and 2021, respectively, and $10.5 million and $9.1 million, net of tax, for the six months ended June 30, 2022 and 2021, respectively, are included as a reduction within other (income) and expense in the Consolidated Income Statement. 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 2021 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 current-period presentation. This is annotated where applicable. issued
Accounting Changes	New Standards to be Implemented ​ Disclosures about Government Assistance Standard/Description– Effective Date and Adoption Considerations– Effect on Financial Statements or Other Significant Matters– Troubled Debt Restructurings and Vintage Disclosures Standard/Description Effective Date and Adoption Considerations Effect on Financial Statements or Other Significant Matters ​ Standards Implemented ​ Lessors–Certain Leases with Variable Lease Payments Standard/Description Effective Date and Adoption Considerations Effect on Financial Statements or Other Significant Matters ​ Revenue Contracts with Customers Acquired in a Business Combination Standard/Description Effective Date and Adoption Considerations Effect on Financial Statements or Other Significant Matters Simplifying the Accounting for Income Taxes Standard/Description Effective Date and Adoption Considerations Effect on Financial Statements or Other Significant Matters
Separation of Kyndryl	The historical results of Kyndryl have been presented as discontinued operations and, as such, have been excluded from continuing operations and segment results for all periods presented. The company’s presentation of discontinued operations excludes general corporate overhead costs which were historically allocated to Kyndryl, consistent with the company’s management system, that did not meet the requirements to be presented in discontinued operations in 2021. Such allocations include labor and non-labor expenses related to IBM’s corporate support functions (e.g., finance, accounting, tax, treasury, IT, HR, legal, among others) that historically provided support to Kyndryl and transferred to Kyndryl at separation. In addition, discontinued operations excludes the historical intercompany purchases and sales between IBM and Kyndryl that were eliminated in consolidation.
Revenue	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.
Segments	Performance measurement is based on pre-tax income from continuing operations. 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.
Financial Assets & Liabilities and Fair Value Measurement	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 maintain principal by investing in very liquid and highly rated investment grade securities. 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 six months ended June 30, 2022 and 2021, respectively. Certain non-financial assets such as property, plant and equipment, operating right-of-use assets, land, 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 six months ended June 30, 2022 and 2021, respectively.
Kyndryl Common Stock	The company has elected to record the debt at fair value based on changes in the value of the Shares underlying the debt. The fair value of the debt was $218 million at June 30, 2022. In electing the fair value option, the company recognizes changes in fair value of the debt in other (income) and expense
Financial Assets and Liabilities Not Measured At Fair Value	Financial Assets and Liabilities Not Measured at Fair Value Short-Term Receivables and Payables Notes and other accounts receivable 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 and including short-term finance lease liabilities) 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 June 30, 2022 and December 31, 2021, 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 $44,328 million and $44,917 million, and the estimated fair value was $42,143 million and $49,465 million at June 30, 2022 and December 31, 2021, 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) and 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 hardware, software and services. Payment terms on these financing arrangements are generally for terms up to seven years. Investment in sales-type and direct financing leases relate principally to the company’s Infrastructure products and are for terms ranging generally from two 30
Allowance for Credit Losses - Financing Receivables	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 2021 Annual Report. Any changes to economic models that occurred after the balance sheet date will be reflected in future periods.
Short-Term Debt	Included within short-term debt in the company’s Consolidated Balance Sheet at June 30, 2022 is $218 million of secured borrowings recorded at fair value from the short-term credit facility and the Exchange as described in note 8, “Financial Assets & Liabilities.”
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 2021 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 June 30, 2022 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	(3) The company’s policy is to recognize all fair value changes in amounts excluded from effectiveness testing in net income each period.
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.

Separation of Kyndryl (Tables)

Separation of Kyndryl (Tables)	6 Months Ended
	Jun. 30, 2022
Separation of Kyndryl
Schedule of discontinued operations	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, (Dollars in millions) 2022 2021* ​ 2022 2021* Revenue ​ $ (11) ​ $ 4,527 ​ $ 7 ​ $ 9,070 Cost of sales ​ ​ (4) ​ ​ 3,375 ​ ​ 17 ​ ​ 6,741 Selling, general and administrative expense ​ ​ 73 ​ ​ 485 ​ ​ 66 ​ ​ 972 RD&E and Other (income) and expense ​ ​ 0 ​ ​ 26 ​ ​ (69) ​ ​ 55 Income/(loss) from discontinued operations before income taxes ​ $ (80) ​ $ 641 ​ $ (7) ​ $ 1,302 Provision for/(benefit from) income taxes ​ ​ (7) ​ ​ 126 ​ ​ (5) ​ ​ 235 Income/(loss) from discontinued operations, net of tax ​ $ (73) ​ $ 515 ​ $ (2) ​ $ 1,067 * Excludes intercompany transactions between IBM and Kyndryl and general corporate overhead costs transferred to Kyndryl as discussed above. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, (Dollars in millions) ​ 2022 ​ 2021 ​ Net cash provided by/(used in) operating activities ​ $ — ​ $ 1,465 * Net cash provided by/(used in) investing activities ​ ​ 48 ​ ​ (321) ​ * Excludes intercompany transactions between IBM and Kyndryl and general corporate overhead costs transferred to Kyndryl as discussed above.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2022
Revenue Recognition
Schedule of disaggregation of revenue	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, (Dollars in millions) ​ 2022 ​ 2021* ​ 2022 ​ 2021* ​ Hybrid Platform & Solutions ​ $ 4,390 ​ $ 4,208 ​ $ 8,470 ​ $ 8,008 ​ Transaction Processing ​ ​ 1,776 ​ ​ 1,587 ​ ​ 3,468 ​ ​ 2,925 ​ Total Software ​ $ 6,166 ​ $ 5,795 ​ $ 11,938 ​ $ 10,933 ​ Business Transformation ​ 2,227 ​ 2,049 ​ 4,482 ​ 4,002 ​ Application Operations ​ 1,653 ​ 1,514 ​ 3,272 ​ 2,989 ​ Technology Consulting ​ 928 ​ 814 ​ 1,884 ​ 1,649 ​ Total Consulting ​ $ 4,809 ​ $ 4,378 ​ $ 9,637 ​ $ 8,641 ​ Hybrid Infrastructure ​ 2,760 ​ 2,059 ​ 4,461 ​ 3,841 ​ Infrastructure Support ​ 1,474 ​ 1,501 ​ 2,993 ​ 3,012 ​ Total Infrastructure ​ $ 4,235 ​ $ 3,560 ​ $ 7,453 ​ $ 6,853 ​ Financing** ​ 146 ​ 209 ​ 300 ​ 417 ​ Other ​ 180 ​ 277 ​ 404 ​ 561 ​ Total revenue ​ $ 15,535 ​ $ 14,218 ​ $ 29,732 ​ $ 27,405 ​ * Recast to reflect segment changes. ** Contains lease and loan/working capital financing arrangements which are not subject to the guidance on revenue from contracts with customers.
Schedule of hybrid cloud revenue by segment	Hybrid Cloud Revenue by Segment ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) ​ 2022 ​ 2021* 2022 ​ 2021* Software ​ $ 2,288 ​ $ 2,015 ​ $ 4,418 ​ $ 3,760 Consulting ​ 2,286 ​ 1,901 ​ 4,421 ​ 3,623 Infrastructure ​ ​ 1,220 ​ ​ 981 ​ ​ 1,892 ​ ​ 1,818 Other ​ 69 ​ 82 ​ 141 ​ 169 Total ​ $ 5,863 ​ $ 4,979 ​ $ 10,872 ​ $ 9,369 * Recast to reflect segment changes.
Schedule of disaggregation of revenue by geography	Revenue by Geography ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) ​ 2022 ​ 2021 2022 ​ 2021 Americas ​ $ 8,142 ​ $ 7,122 ​ $ 15,198 ​ $ 13,599 Europe/Middle East/Africa ​ 4,526 ​ 4,314 ​ 8,757 ​ 8,242 Asia Pacific ​ 2,868 ​ 2,782 ​ 5,778 ​ 5,563 Total ​ $ 15,535 ​ $ 14,218 ​ $ 29,732 ​ $ 27,405
Schedule of reconciliation of contract balances	​ ​ ​ ​ ​ ​ ​ ​ ​ At June 30, At December 31, (Dollars in millions) ​ 2022 ​ 2021 Notes and accounts receivable — ​ $ 5,867 ​ $ 6,754 Contract assets* ​ 531 ​ 471 Deferred income (current) ​ 12,522 ​ 12,518 Deferred income (noncurrent) ​ 3,069 ​ 3,577 * Included within prepaid expenses and other current assets in the Consolidated Balance Sheet.
Schedule of notes and accounts receivable - trade allowance for credit losses	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ ​ ​ ​ January 1, 2022 ​ Additions / (Releases) ​ Write-offs ​ Foreign currency and other ​ June 30, 2022 $ 218 ​ $ 30 ​ $ (22) ​ $ (13) ​ $ 213 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ January 1, 2021 ​ Additions / (Releases) ​ Write-offs ​ Foreign currency and other ​ December 31, 2021 $ 260 ​ $ (15) ​ $ (28) ​ $ 1 ​ $ 218

Segments (Tables)

Segments (Tables)	6 Months Ended
	Jun. 30, 2022
Segments
Revenue and Pre-tax Income by Segment	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total (Dollars in millions) ​ Software ​ Consulting ​ Infrastructure ​ Financing ​ Segments For the three months ended June 30, 2022: ​ ​ ​ ​ ​ ​ Revenue ​ $ 6,166 ​ $ 4,809 ​ $ 4,235 ​ $ 146 ​ $ 15,355 ​ Pre-tax income from continuing operations ​ $ 1,375 ​ $ 343 ​ $ 757 ​ $ 102 ​ $ 2,577 ​ Revenue year-to-year change ​ 6.4 % 9.8 % 19.0 % (29.9) % 10.1 % Pre-tax income year-to-year change ​ 29.9 % 26.9 % 54.8 % (22.4) % 32.2 % Pre-tax income margin ​ 22.3 % 7.1 % 17.9 % 69.7 % 16.8 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended June 30, 2021*: ​ ​ ​ ​ ​ ​ Revenue ​ $ 5,795 ​ $ 4,378 ​ $ 3,560 ​ $ 209 ​ $ 13,941 ​ Pre-tax income from continuing operations ​ $ 1,059 ​ $ 270 ​ $ 489 ​ $ 131 ​ $ 1,949 ​ Pre-tax income margin ​ 18.3 % 6.2 % 13.7 % 63.0 % 14.0 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total (Dollars in millions) ​ Software ​ Consulting ​ Infrastructure ​ Financing ​ Segments For the six months ended June 30, 2022: ​ ​ ​ ​ ​ ​ Revenue ​ $ 11,938 ​ $ 9,637 ​ $ 7,453 ​ $ 300 ​ $ 29,328 ​ Pre-tax income from continuing operations ​ $ 2,509 ​ $ 691 ​ $ 956 ​ $ 186 ​ $ 4,342 ​ Revenue year-to-year change ​ 9.2 % 11.5 % 8.8 % (28.0) % 9.3 % Pre-tax income year-to-year change ​ 46.2 % 26.3 % 22.5 % (18.9) % 32.6 % Pre-tax income margin ​ 21.0 % 7.2 % 12.8 % 62.0 % 14.8 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the six months ended June 30, 2021*: ​ ​ ​ ​ ​ ​ Revenue ​ $ 10,933 ​ $ 8,641 ​ $ 6,853 ​ $ 417 ​ $ 26,843 ​ Pre-tax income from continuing operations ​ $ 1,717 ​ $ 547 ​ $ 780 ​ $ 229 ​ $ 3,274 ​ Pre-tax income margin ​ 15.7 % 6.3 % 11.4 % 55.0 % 12.2 %
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 June 30: ​ 2022 ​ 2021* Revenue: ​ ​ ​ Total reportable segments ​ $ 15,355 ​ $ 13,941 ​ Other ‒ ​ 162 ​ 197 ​ Other revenue ​ 18 ​ 80 ​ Total consolidated revenue ​ $ 15,535 ​ $ 14,218 ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-tax income from continuing operations: ​ ​ ​ Total reportable segments ​ $ 2,577 ​ $ 1,949 ​ Amortization of acquired intangible assets ​ (458) ​ (456) ​ Acquisition-related (charges)/income ​ (2) ​ (18) ​ Non-operating retirement-related (costs)/income ​ (192) ​ (317) ​ Kyndryl-related impacts** ​ ​ (145) ​ — ​ Eliminations of internal transactions ​ (4) ​ 5 ​ Other ‒ ​ 160 + (50) ​ Unallocated corporate amounts and other ​ (215) ​ (202) ​ Total pre-tax income from continuing operations ​ $ 1,722 ​ $ 912 ​ * Recast to conform to current year presentation. ** Refer to note 8, “Financial Assets & Liabilities,” for additional information. + Includes a gain from the sale of the company’s healthcare software assets. Refer to note 6, “Acquisitions & Divestitures.” Reconciliations to IBM as Reported: ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ ​ For the six months ended June 30: ​ 2022 ​ 2021* Revenue: ​ ​ ​ Total reportable segments ​ $ 29,328 ​ $ 26,843 ​ Other ‒ ​ 316 ​ 394 ​ Other revenue ​ 88 ​ 167 ​ Total consolidated revenue ​ $ 29,732 ​ $ 27,405 ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-tax income from continuing operations: ​ ​ ​ Total reportable segments ​ $ 4,342 ​ $ 3,274 ​ Amortization of acquired intangible assets ​ (919) ​ (903) ​ Acquisition-related charges ​ (9) ​ (34) ​ Non-operating retirement-related (costs)/income ​ (394) ​ (649) ​ Kyndryl-related impacts** ​ ​ (367) ​ ​ — ​ Eliminations of internal transactions ​ (15) ​ (4) ​ Other ‒ ​ 109 + (65) ​ Unallocated corporate amounts ​ (403) ​ (464) ​ Total pre-tax income from continuing operations ​ $ 2,345 ​ $ 1,155 ​ * Recast to conform to current year presentation. ** Refer to note 8, “Financial Assets & Liabilities,” for additional information. + Includes a gain from the sale of the company’s healthcare software assets. Refer to note 6, “Acquisitions & Divestitures.”

Acquisitions & Divestitures (Ta

Acquisitions & Divestitures (Tables)	6 Months Ended
	Jun. 30, 2022
2022 Acquisitions
Acquisitions & Divestitures
Business acquisition, purchase price allocation	​ ​ ​ ​ ​ ​ ​ ​ ​ Amortization ​ Total (Dollars in millions) Life (in years) ​ Acquisitions Current assets ​ ​ ​ $ 60 Property, plant and equipment/noncurrent assets ​ ​ ​ 3 Intangible assets: ​ ​ ​ ​ ​ Goodwill N/A ​ 903 Client relationships 7 ​ 151 Completed technology 4-7 ​ 87 Trademarks 2-3 ​ 8 Total assets acquired ​ ​ ​ $ 1,210 Current liabilities ​ ​ ​ 59 Noncurrent liabilities ​ ​ ​ 50 Total liabilities assumed ​ ​ ​ $ 110 Total purchase price ​ ​ ​ $ 1,101 N/A – not applicable

Earnings Per Share of Common _2

Earnings Per Share of Common Stock (Tables)	6 Months Ended
	Jun. 30, 2022
Earnings Per Share of Common Stock
Computation of basic and diluted earnings per share	​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions except per share amounts) ​ ​ ​ ​ ​ ​ For the three months ended June 30: 2022 2021 Number of shares on which basic earnings per share is calculated: ​ ​ Weighted-average shares outstanding during period ​ 901,470,793 ​ 895,043,024 Add — Incremental shares under stock-based compensation plans ​ 7,518,749 ​ 7,431,661 Add — Incremental shares associated with contingently issuable shares ​ 1,760,192 ​ 1,758,754 Number of shares on which diluted earnings per share is calculated ​ 910,749,734 ​ 904,233,439 ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ​ $ 1,465 ​ $ 810 Income/(loss) from discontinued operations, net of tax ​ (73) ​ 515 Net income on which basic earnings per share is calculated ​ $ 1,392 ​ $ 1,325 ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ​ $ 1,465 ​ $ 810 Net income applicable to contingently issuable shares ​ — ​ — Income from continuing operations on which diluted earnings per share is calculated ​ $ 1,465 ​ $ 810 Income/(loss) from discontinued operations, net of tax, on which diluted earnings per share is calculated ​ (73) ​ 515 Net income on which diluted earnings per share is calculated ​ $ 1,392 ​ $ 1,325 ​ ​ ​ ​ ​ ​ ​ Earnings/(loss) per share of common stock: ​ ​ Assuming dilution ​ ​ ​ Continuing operations ​ $ 1.61 ​ $ 0.90 Discontinued operations ​ (0.08) ​ 0.57 Total ​ $ 1.53 ​ $ 1.47 Basic ​ ​ Continuing operations ​ $ 1.62 ​ $ 0.91 Discontinued operations ​ (0.08) ​ 0.57 Total ​ $ 1.54 ​ $ 1.48 ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions except per share amounts) ​ ​ For the six months ended June 30: 2022 2021 Number of shares on which basic earnings per share is calculated: ​ ​ Weighted-average shares outstanding during period ​ 900,393,410 ​ 894,336,970 Add — Incremental shares under stock-based compensation plans ​ 7,946,998 ​ 7,027,051 Add — Incremental shares associated with contingently issuable shares ​ 1,647,528 ​ 1,625,732 Number of shares on which diluted earnings per share is calculated ​ 909,987,935 ​ 902,989,752 ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ​ $ 2,127 ​ $ 1,213 Income/(loss) from discontinued operations, net of tax ​ (2) ​ 1,067 Net income on which basic earnings per share is calculated ​ $ 2,125 ​ $ 2,280 ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ​ $ 2,127 ​ $ 1,213 Net income applicable to contingently issuable shares ​ — ​ — Income from continuing operations on which diluted earnings per share is calculated ​ $ 2,127 ​ $ 1,213 Income/(loss) from discontinued operations, net of tax, on which diluted earnings per share is calculated ​ (2) ​ 1,067 Net income on which diluted earnings per share is calculated ​ $ 2,125 ​ $ 2,280 ​ ​ ​ ​ ​ ​ ​ Earnings/(loss) per share of common stock: ​ ​ Assuming dilution ​ ​ Continuing operations ​ $ 2.34 ​ $ 1.34 Discontinued operations ​ 0.00 ​ 1.18 Total ​ $ 2.34 ​ $ 2.52 Basic ​ ​ Continuing operations ​ $ 2.36 ​ $ 1.36 Discontinued operations ​ 0.00 ​ 1.19 Total ​ $ 2.36 ​ $ 2.55

Financial Assets & Liabilities

Financial Assets & Liabilities (Tables)	6 Months Ended
	Jun. 30, 2022
Financial Assets & Liabilities
Financial assets and financial liabilities measured at fair value on a recurring basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value ​ ​ ​ ​ ​ ​ Hierarchy ​ At June 30, 2022 ​ At December 31, 2021 (Dollars in millions) Level Assets (8) Liabilities (9) Assets (8) Liabilities (9) Cash equivalents: (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Time deposits and certificates of deposit (2) ​ 2 ​ $ 2,602 ​ $ N/A ​ $ 1,903 ​ $ N/A Money market funds ​ 1 ​ ​ 933 ​ ​ N/A ​ ​ 263 ​ ​ N/A U.S. government securities (2) ​ 2 ​ ​ — ​ ​ N/A ​ ​ 599 ​ ​ N/A Total cash equivalents ​ ​ ​ $ 3,535 ​ $ N/A ​ $ 2,766 ​ $ N/A Equity investments (3) ​ 1 ​ ​ — ​ ​ N/A ​ ​ 0 ​ ​ N/A Kyndryl common stock (4) ​ 1 ​ ​ 436 ​ ​ N/A ​ ​ 807 ​ ​ N/A Secured borrowing (4) ​ 2 ​ ​ N/A ​ ​ 218 ​ ​ N/A ​ ​ — Debt securities-current (2)(5) ​ 2 ​ ​ 524 ​ ​ N/A ​ ​ 600 ​ ​ N/A Debt securities-noncurrent (2)(6) ​ 2,3 ​ ​ 31 ​ ​ N/A ​ ​ 37 ​ ​ N/A Derivatives designated as hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts ​ 2 ​ ​ 2 ​ ​ 82 ​ ​ 12 ​ ​ — Foreign exchange contracts ​ 2 ​ ​ 717 ​ ​ 348 ​ ​ 359 ​ ​ 117 Derivatives not designated as hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign exchange contracts ​ 2 ​ ​ 11 ​ ​ 26 ​ ​ 21 ​ ​ 42 Equity contracts (7) ​ 1,2 ​ ​ 5 ​ ​ 95 ​ ​ 6 ​ ​ 4 Total ​ ​ ​ $ 5,261 ​ $ 769 ​ $ 4,608 ​ $ 162 (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) Included within investments and sundry assets in the Consolidated Balance Sheet. (4) Refer to “Kyndryl Common Stock” below for additional information. (5) U.S. treasury bills that are reported within marketable securities in the Consolidated Balance Sheet. (6) Includes corporate and government debt securities that are reported within investments and sundry assets in the Consolidated Balance Sheet. (7) Level 1 includes immaterial amounts related to equity futures contracts. (8) 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 June 30, 2022 were $723 million and $11 million, respectively, and at December 31, 2021 were $358 million and $40 million, respectively. (9) The gross balances of derivative liabilities contained within other accrued expenses and liabilities, and other liabilities in the Consolidated Balance Sheet at June 30, 2022 were $266 million and $285 million, respectively, and at December 31, 2021 were $60 million and $103 million , respectively. ​ N/A – not applicable

Financing Receivables (Tables)

Financing Receivables (Tables)	6 Months Ended
	Jun. 30, 2022
Financing Receivables
Summary of the components of financing receivables	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Client Financing Receivables ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Client Loan and Investment in ​ ​ ​ ​ ​ Installment Payment ​ Sales-Type and ​ Commercial Financing Receivables ​ ​ ​ (Dollars in millions) ​ Receivables ​ Direct Financing ​ Held for ​ Held for ​ ​ ​ At June 30, 2022: ​ (Loans) ​ Leases ​ Investment ​ Sale* ​ Total Financing receivables, gross ​ $ 8,343 ​ $ 3,851 ​ $ 177 ​ $ 614 ​ $ 12,985 Unearned income ​ ​ (341) ​ (305) ​ ​ — ​ ​ — ​ ​ (646) Unguaranteed residual value ​ ​ — ​ 383 ​ ​ — ​ ​ — ​ ​ 383 Amortized cost ​ $ 8,002 ​ $ 3,929 ​ $ 177 ​ $ 614 ​ $ 12,721 Allowance for credit losses ​ ​ (110) ​ (56) ​ ​ (6) ​ ​ — ​ ​ (172) Total financing receivables, net ​ $ 7,891 ​ $ 3,872 ​ $ 171 ​ $ 614 ​ $ 12,549 Current portion ​ $ 5,010 ​ $ 1,438 ​ $ 171 ​ $ 614 ​ $ 7,233 Noncurrent portion ​ $ 2,881 ​ $ 2,435 ​ $ — ​ $ — ​ $ 5,316 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Client Financing Receivables ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Client Loan and Investment in ​ ​ ​ ​ Installment Payment ​ Sales-Type and ​ Commercial Financing Receivables ​ ​ ​ (Dollars in millions) ​ Receivables ​ Direct Financing ​ Held for ​ Held for ​ ​ ​ At December 31, 2021: ​ (Loans) ​ Leases ​ Investment ​ Sale* ​ Total Financing receivables, gross ​ $ 9,303 ​ $ 3,336 ​ $ 450 ​ $ 793 ​ $ 13,881 Unearned income ​ ​ (353) ​ ​ (223) ​ ​ — ​ ​ — ​ ​ (576) Unguaranteed residual value ​ ​ — ​ 335 ​ ​ — ​ ​ — ​ ​ 335 Amortized cost ​ $ 8,949 ​ $ 3,448 ​ $ 450 ​ $ 793 ​ $ 13,640 Allowance for credit losses ​ ​ (131) ​ (64) ​ ​ (6) ​ ​ — ​ ​ (201) Total financing receivables, net ​ $ 8,818 ​ $ 3,384 ​ $ 444 ​ $ 793 ​ $ 13,439 Current portion ​ $ 5,371 ​ $ 1,406 ​ $ 444 ​ $ 793 ​ $ 8,014 Noncurrent portion ​ $ 3,447 ​ $ 1,978 ​ $ — ​ $ — ​ $ 5,425 * The carrying value of the receivables classified as held for sale approximates fair value.
Schedule of transfer of client and commercial financing assets	​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ For the six months ended June 30: ​ 2022 ​ 2021 Client financing receivables ​ ​ ​ ​ ​ ​ Lease receivables ​ $ 15 ​ $ 732 Loan receivables ​ 2 ​ 1,359 Total client financing receivables transferred ​ $ 17 ​ $ 2,091 Commercial financing receivables ​ ​ ​ ​ ​ ​ Receivables transferred during the period ​ $ 3,914 ​ $ 2,621 Receivables uncollected at end of period* ​ $ 815 ​ $ 821 * 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 June 30, 2022 and 2021. ​
Schedule of financing receivables and allowance for credit losses by class	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ ​ ​ ​ At June 30, 2022: ​ Americas ​ EMEA ​ Asia Pacific ​ Total Amortized cost $ 7,092 ​ $ 3,173 ​ $ 1,666 ​ $ 11,930 Allowance for credit losses: ​ ​ ​ ​ ​ Beginning balance at January 1, 2022 ​ $ 111 ​ $ 61 ​ $ 23 ​ $ 195 Write-offs ​ $ (16) ​ $ (1) ​ $ (2) ​ $ (18) Recoveries ​ 1 ​ 0 ​ ​ 4 ​ ​ 5 Additions/(releases) ​ (2) ​ (3) ​ ​ (5) ​ ​ (10) Other* ​ 2 ​ (5) ​ ​ (1) ​ ​ (5) Ending balance at June 30, 2022 ​ $ 96 ​ $ 51 ​ $ 19 ​ $ 166 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ ​ ​ ​ At December 31, 2021: ​ Americas ​ EMEA ​ Asia Pacific ​ Total Amortized cost $ 6,573 ​ $ 3,793 ​ $ 2,031 ​ $ 12,397 Allowance for credit losses: ​ ​ ​ ​ Beginning balance at January 1, 2021 ​ $ 141 ​ $ 77 ​ $ 37 ​ $ 255 Write-offs ​ $ (8) ​ $ (2) ​ $ (7) ​ $ (17) Recoveries ​ 0 ​ 0 ​ ​ 1 ​ ​ 1 Additions/(releases) ​ (19) ​ (11) ​ ​ (7) ​ ​ (38) Other* ​ (3) ​ (3) ​ ​ 0 ​ ​ (7) Ending balance at December 31, 2021 ​ $ 111 ​ $ 61 ​ $ 23 ​ $ 195 * Primarily represents translation adjustments.
Schedule of past due financing receivables	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Billed Amortized ​ ​ Total ​ Amortized ​ Cost ​ Invoices ​ Cost (Dollars in millions) ​ Amortized ​ Cost ​ > 90 Days and ​ > 90 Days and ​ Not At June 30, 2022: ​ Cost ​ > 90 Days* ​ Accruing* ​ Accruing ​ Accruing** Americas ​ $ 7,092 ​ $ 216 ​ $ 141 ​ $ 11 ​ $ 76 EMEA ​ 3,173 ​ ​ 85 ​ ​ 4 ​ ​ 1 ​ ​ 83 Asia Pacific ​ 1,666 ​ ​ 23 ​ ​ 5 ​ ​ 2 ​ ​ 18 Total client financing receivables ​ $ 11,930 ​ $ 324 ​ $ 150 ​ $ 15 ​ $ 177 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Billed Amortized ​ ​ Total ​ Amortized ​ Cost ​ Invoices ​ Cost (Dollars in millions) ​ Amortized ​ Cost ​ > 90 Days and ​ > 90 Days and ​ Not At December 31, 2021: ​ Cost ​ > 90 Days* ​ Accruing* ​ Accruing ​ Accruing** Americas ​ $ 6,573 ​ $ 188 ​ $ 100 ​ $ 6 ​ $ 90 EMEA ​ 3,793 ​ ​ 99 ​ ​ 7 ​ ​ 2 ​ ​ 95 Asia Pacific ​ 2,031 ​ ​ 25 ​ ​ 5 ​ ​ 2 ​ ​ 20 Total client financing receivables ​ $ 12,397 ​ $ 312 ​ $ 112 ​ $ 10 ​ $ 205 * At a contract level, which includes total billed and unbilled amounts for financing receivables aged greater than 90 days. ** Of the amortized cost not accruing, there was a related allowance of $129 million and $153 million at June 30, 2022 and December 31, 2021, respectively. Financing income recognized on these receivables was immaterial for the three and six months ended June 30, 2022, respectively. ​
Schedule of amortized cost by credit quality indicator	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ Americas EMEA Asia Pacific At June 30, 2022: Aaa – Baa3 Ba1 – D Aaa – Baa3 Ba1 – D Aaa – Baa3 Ba1 – D Vintage year: ​ ​ ​ ​ ​ ​ 2022 ​ $ 1,987 ​ $ 799 ​ $ 614 ​ $ 431 ​ $ 393 ​ $ 86 2021 ​ ​ 1,750 ​ ​ 584 ​ ​ 645 ​ ​ 349 ​ ​ 290 ​ ​ 108 2020 ​ 761 ​ ​ 306 ​ ​ 337 ​ ​ 221 ​ ​ 268 ​ ​ 60 2019 ​ 382 ​ ​ 151 ​ ​ 190 ​ ​ 166 ​ ​ 190 ​ ​ 30 2018 ​ 186 ​ ​ 72 ​ ​ 86 ​ ​ 51 ​ ​ 141 ​ ​ 35 2017 and prior ​ 61 ​ ​ 52 ​ ​ 19 ​ ​ 65 ​ ​ 44 ​ ​ 22 Total ​ $ 5,128 ​ $ 1,964 ​ $ 1,891 ​ $ 1,282 ​ $ 1,326 ​ $ 340 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ Americas ​ EMEA ​ Asia Pacific At December 31, 2021: Aaa – Baa3 Ba1 – D Aaa – Baa3 Ba1 – D Aaa – Baa3 Ba1 – D Vintage year: ​ ​ ​ ​ ​ ​ 2021 ​ $ 2,556 ​ $ 1,147 ​ $ 1,181 ​ $ 778 ​ $ 565 ​ $ 226 2020 ​ 1,013 ​ ​ 392 ​ ​ 506 ​ ​ 342 ​ ​ 381 ​ ​ 86 2019 ​ 544 ​ ​ 236 ​ ​ 287 ​ ​ 291 ​ ​ 297 ​ ​ 51 2018 ​ 338 ​ ​ 117 ​ ​ 189 ​ ​ 85 ​ ​ 211 ​ ​ 64 2017 ​ 108 ​ ​ 50 ​ ​ 15 ​ ​ 52 ​ ​ 74 ​ ​ 17 2016 and prior ​ 20 ​ ​ 53 ​ ​ 21 ​ ​ 46 ​ ​ 38 ​ ​ 20 Total ​ $ 4,579 ​ $ 1,994 ​ $ 2,198 ​ $ 1,595 ​ $ 1,567 ​ $ 464

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2022
Leases
Schedule of amounts included in the Consolidated Income Statement related to lessor activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, (Dollars in millions) ​ 2022 2021 ​ 2022 2021 Lease income — ​ ​ ​ ​ ​ ​ ​ Sales-type lease selling price ​ $ 735 ​ $ 390 ​ $ 789 ​ $ 751 Less: Carrying value of underlying assets* ​ (120) ​ (100) ​ (139) ​ (157) Gross profit ​ $ 615 ​ $ 290 ​ $ 651 ​ $ 594 Interest income on lease receivables ​ 45 ​ 47 ​ 90 ​ 98 Total sales-type and direct financing lease income ​ $ 660 ​ $ 337 ​ $ 741 ​ $ 692 Lease income — ​ 27 ​ 47 ​ 56 ​ 98 Variable lease income ​ 28 ​ 22 ​ 56 ​ 79 Total lease income ​ $ 715 ​ $ 406 ​ $ 853 ​ $ 869 * Excludes unguaranteed residual value. ​

Intangible Assets Including G_2

Intangible Assets Including Goodwill (Tables)	6 Months Ended
	Jun. 30, 2022
Intangible Assets Including Goodwill
Intangible asset balances by major asset class	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At June 30, 2022 ​ Gross Carrying Accumulated Net Carrying (Dollars in millions) ​ Amount ​ Amortization ​ Amount* Intangible asset class: ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized software ​ $ 1,705 ​ $ (692) ​ $ 1,013 Client relationships ​ 8,187 ​ (2,591) ​ 5,596 Completed technology ​ 5,562 ​ (2,113) ​ 3,449 Patents/trademarks ​ 2,117 ​ (610) ​ 1,507 Other** ​ 32 ​ (25) ​ 6 Total ​ $ 17,604 ​ $ (6,032) ​ $ 11,571 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, 2021 ​ Gross Carrying Accumulated Net Carrying (Dollars in millions) ​ Amount ​ Amortization ​ Amount* Intangible asset class: ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized software ​ $ 1,696 ​ $ (751) ​ $ 945 Client relationships ​ 9,021 ​ (2,889) ​ 6,132 Completed technology ​ 6,074 ​ (2,259) ​ 3,815 Patents/trademarks ​ 2,196 ​ (586) ​ 1,610 Other** ​ 44 ​ (35) ​ 9 Total ​ $ 19,031 ​ $ (6,520) ​ $ 12,511 * Amounts as of June 30, 2022 and December 31, 2021 included a decrease in net intangible asset balances of $235 million and $221 million, respectively, due to foreign currency translation. ** Other intangibles are primarily acquired proprietary and non-proprietary business processes, methodologies and systems .
Intangible assets, future amortization expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized Acquired ​ (Dollars in millions) ​ Software ​ Intangibles ​ Total Remainder of 2022 ​ $ 304 ​ $ 832 ​ $ 1,136 2023 ​ 431 ​ 1,490 ​ 1,922 2024 ​ 245 ​ 1,473 ​ 1,718 2025 ​ 32 ​ 1,455 ​ 1,487 2026 ​ 0 ​ 1,438 ​ 1,438 Thereafter ​ ​ 0 ​ ​ 3,871 ​ 3,871
Changes in goodwill balances by reportable segment	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Currency ​ ​ ​ ​ ​ ​ ​ ​ Purchase ​ ​ ​ Translation ​ ​ (Dollars in millions) ​ Balance ​ Goodwill ​ Price ​ ​ ​ and Other ​ Balance Segment ​ 1/1/2022 ​ Additions ​ Adjustments ​ Divestitures ​ Adjustments* ​ 6/30/2022 Software ​ $ 43,966 ​ $ 442 ​ $ (108) ​ $ — ​ $ (674) ​ $ 43,626 Consulting ​ 6,797 ​ 461 ​ (13) ​ — ​ (200) ​ 7,044 Infrastructure ​ ​ 4,396 ​ ​ — ​ ​ — ​ ​ (1) ​ ​ (27) ​ ​ 4,368 Other** ​ 484 ​ — ​ — ​ (484) ​ — ​ — Total ​ $ 55,643 ​ $ 903 ​ $ (121) ​ $ (485) ​ $ (901) ​ $ 55,039 * Primarily driven by foreign currency translation. ** The company derecognized $484 million of goodwill related to the divestiture of its healthcare software assets. Refer to note 6, “Acquisitions & Divestitures,” for additional information. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Currency ​ ​ ​ ​ ​ ​ ​ ​ Purchase ​ ​ ​ Translation ​ ​ (Dollars in millions) ​ Balance ​ Goodwill ​ Price ​ ​ ​ and Other ​ Balance Segment ​ 1/1/2021 ​ Additions ​ Adjustments ​ Divestitures ​ Adjustments* ​ 12/31/2021 Software** ​ $ 42,665 ​ $ 1,836 ​ $ 23 ​ $ (13) ​ $ (545) ​ $ 43,966 Consulting ​ 6,145 ​ 713 ​ (21) ​ — ​ (40) ​ 6,797 Infrastructure ​ 4,436 ​ — ​ 0 ​ — ​ (39) ​ 4,396 Other** ​ 520 ​ — ​ — ​ (37) ​ 1 ​ 484 Total ​ $ 53,765 ​ $ 2,549 ​ $ 2 ​ $ (50) ​ $ (623) ​ $ 55,643 * Primarily driven by foreign currency translation. ** Recast to conform to current year presentation.

Borrowings (Tables)

Borrowings (Tables)	6 Months Ended
	Jun. 30, 2022
Borrowings
Short-Term Debt	​ ​ ​ ​ ​ ​ ​ ​ ​ At June 30, At December 31, (Dollars in millions) ​ 2022 ​ 2021 Short-term loans ​ $ 230 ​ $ 22 Long-term debt — ​ 5,752 ​ 6,764 Total ​ $ 5,981 ​ $ 6,787
Long-Term Debt	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance Balance (Dollars in millions) ​ Maturities ​ 6/30/2022 ​ 12/31/2021 U.S. dollar debt (weighted-average interest rate at June 30, 2022):* ​ ​ 2.4% 2022 ​ $ 1,904 ​ $ 5,673 3.4% 2023 ​ 1,552 ​ 1,573 3.3% 2024 ​ 5,013 ​ 5,016 7.0% 2025 ​ 605 ​ 608 3.3% 2026 ​ 4,352 ​ 4,356 2.8% 2027 ​ 2,871 ​ 2,221 6.5% 2028 ​ ​ 313 ​ 313 3.5% ​ 2029 ​ ​ 3,250 ​ ​ 3,250 2.0% ​ 2030 ​ ​ 1,350 ​ ​ 1,350 4.4% 2032 ​ 1,100 ​ 600 8.0% 2038 ​ 83 ​ 83 4.5% 2039 ​ 2,745 ​ 2,745 2.9% ​ 2040 ​ ​ 650 ​ 650 4.0% 2042 ​ 1,107 ​ ​ 1,107 7.0% 2045 ​ 27 ​ 27 4.7% 2046 ​ 650 ​ 650 4.3% ​ 2049 ​ ​ 3,000 ​ 3,000 3.0% ​ 2050 ​ ​ 750 ​ ​ 750 3.4% ​ 2052 ​ ​ 650 ​ ​ — 7.1% 2096 ​ 316 ​ 316 ​ ​ ​ ​ $ 32,288 ​ $ 34,290 Other currencies (weighted-average interest rate at June 30, 2022, in parentheses):* ​ ​ Euro (1.1%) 2023–2040 ​ $ 16,718 ​ $ 15,903 Pound sterling (2.6%) 2022 ​ 364 ​ 406 Japanese yen (0.3%) 2022–2026 ​ 1,070 ​ 1,263 Other (15.7%) 2022–2025 ​ 315 ​ 378 ​ ​ ​ ​ $ 50,755 ​ $ 52,240 Finance lease obligations (2.0%) ​ 2022–2030 ​ ​ 108 ​ ​ 99 ​ ​ ​ ​ $ 50,863 ​ $ 52,339 Less: net unamortized discount ​ 837 ​ 839 Less: net unamortized debt issuance costs ​ 134 ​ 130 Add: fair value adjustment** ​ 187 ​ 311 ​ ​ ​ ​ $ 50,079 ​ $ 51,681 Less: current maturities ​ 5,752 ​ 6,764 Total ​ $ 44,328 ​ $ 44,917 * Includes notes, debentures, bank loans and secured borrowings. ** 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	​ ​ ​ ​ ​ (Dollars in millions) Total Remainder of 2022 ​ $ 2,778 2023 ​ 4,607 2024 ​ 6,262 2025 ​ 3,745 2026 ​ 4,664 Thereafter ​ 28,807 Total ​ $ 50,863
Interest on Debt	​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ ​ For the six months ended June 30: ​ 2022 ​ 2021 Cost of financing ​ $ 165 ​ $ 210 Interest expense ​ 607 ​ 561 Interest capitalized ​ 2 ​ 2 Total interest paid and accrued ​ $ 775 ​ $ 774

Commitments (Tables)

Commitments (Tables)	6 Months Ended
	Jun. 30, 2022
Commitments
Changes in warranty liabilities	Standard Warranty Liability ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) 2022 2021 Balance at January 1 ​ $ 77 ​ $ 83 Current period accruals ​ 39 ​ 36 Accrual adjustments to reflect actual experience ​ (1) ​ (2) Charges incurred ​ (41) ​ (45) Balance at June 30 ​ $ 74 ​ $ 73 ​ Extended Warranty Liability ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) 2022 2021 Balance at January 1 ​ $ 350 ​ $ 425 Revenue deferred for new extended warranty contracts ​ 84 ​ 50 Amortization of deferred revenue ​ (83) ​ (104) Other* ​ (12) ​ (5) Balance at June 30 ​ $ 339 ​ $ 367 Current portion ​ $ 172 ​ $ 184 Noncurrent portion ​ $ 167 ​ $ 183 * Other primarily consists of foreign currency translation adjustments.

Equity Activity (Tables)

Equity Activity (Tables)	6 Months Ended
	Jun. 30, 2022
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 June 30, 2022: ​ Amount ​ Benefit ​ Amount Other comprehensive income/(loss): ​ ​ ​ Foreign currency translation adjustments ​ $ 213 ​ $ (347) ​ $ (134) 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 ​ $ 200 ​ $ (53) ​ $ 147 Reclassification of (gains)/losses to: ​ ​ ​ Cost of services ​ (13) ​ 3 ​ (10) Cost of sales ​ (23) ​ 7 ​ (17) Cost of financing ​ 6 ​ (2) ​ 5 SG&A expense ​ (14) ​ 4 ​ (10) Other (income) and expense ​ 38 ​ (10) ​ 29 Interest expense ​ 22 ​ (6) ​ 16 Total unrealized gains/(losses) on cash flow hedges ​ $ 217 ​ $ (56) ​ $ 161 Retirement-related benefit plans*: ​ ​ ​ Prior service costs/(credits) ​ $ — ​ $ 0 ​ $ 0 Net (losses)/gains arising during the period ​ ​ 1 ​ ​ (3) ​ ​ (2) Curtailments and settlements ​ 11 ​ ​ (3) ​ ​ 8 Amortization of prior service (credits)/costs ​ 6 ​ ​ (2) ​ ​ 5 Amortization of net (gains)/losses ​ 450 ​ ​ (125) ​ ​ 325 Total retirement-related benefit plans ​ $ 468 ​ $ (132) ​ $ 336 Other comprehensive income/(loss) ​ $ 897 ​ $ (534) ​ $ 363 * These accumulated other comprehensive income (AOCI) components are included in the computation of net periodic pension cost. 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 June 30, 2021: ​ Amount ​ Benefit ​ Amount Other comprehensive income/(loss): ​ ​ ​ Foreign currency translation adjustments ​ $ 28 ​ $ 44 ​ $ 72 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 ​ $ (34) ​ $ 9 ​ $ (26) Reclassification of (gains)/losses to: ​ ​ ​ ​ ​ ​ Cost of services ​ (7) ​ 2 ​ (5) Cost of sales ​ 10 ​ (3) ​ 8 Cost of financing ​ 6 ​ (1) ​ 4 SG&A expense ​ 16 ​ (4) ​ 12 Other (income) and expense ​ 49 ​ (12) ​ 37 Interest expense ​ 16 ​ (4) ​ 12 Total unrealized gains/(losses) on cash flow hedges ​ $ 56 ​ $ (14) ​ $ 42 Retirement-related benefit plans*: ​ ​ ​ Prior service costs/(credits) ​ $ 0 ​ $ 0 ​ $ 0 Net (losses)/gains arising during the period ​ ​ 2 ​ ​ 10 ​ ​ 11 Curtailments and settlements ​ 16 ​ ​ (5) ​ ​ 11 Amortization of prior service (credits)/costs ​ 1 ​ ​ 1 ​ ​ 1 Amortization of net (gains)/losses ​ 643 ​ ​ (175) ​ ​ 467 Total retirement-related benefit plans ​ $ 661 ​ $ (170) ​ $ 491 Other comprehensive income/(loss) ​ $ 745 ​ $ (140) ​ $ 605 * These AOCI components are included in the computation of net periodic pension cost. 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 six months ended June 30, 2022: ​ Amount ​ Benefit ​ Amount Other comprehensive income/(loss): ​ ​ ​ Foreign currency translation adjustments ​ $ 655 ​ $ (483) ​ $ 172 Net changes related to available-for-sale securities: ​ ​ ​ Unrealized gains/(losses) arising during the period ​ $ (1) ​ $ 0 ​ $ 0 Reclassification of (gains)/losses to other (income) and expense ​ — ​ — ​ — Total net changes related to available-for-sale securities ​ $ (1) ​ $ 0 ​ $ 0 Unrealized gains/(losses) on cash flow hedges: ​ ​ ​ Unrealized gains/(losses) arising during the period ​ $ 260 ​ $ (69) ​ $ 191 Reclassification of (gains)/losses to: ​ ​ ​ Cost of services ​ (28) ​ 7 ​ (21) Cost of sales ​ (35) ​ 10 ​ (25) Cost of financing ​ 12 ​ (3) ​ 9 SG&A expense ​ (20) ​ 5 ​ (14) Other (income) and expense ​ 45 ​ (11) ​ 34 Interest expense ​ 43 ​ (11) ​ 32 Total unrealized gains/(losses) on cash flow hedges ​ $ 276 ​ $ (71) ​ $ 205 Retirement-related benefit plans*: ​ ​ ​ Prior service costs/(credits) ​ $ (5) ​ $ 5 ​ $ 0 Net (losses)/gains arising during the period ​ ​ 10 ​ ​ (7) ​ ​ 3 Curtailments and settlements ​ 19 ​ (5) ​ 14 Amortization of prior service (credits)/costs ​ 13 ​ (3) ​ 10 Amortization of net (gains)/losses ​ 917 ​ (256) ​ 662 Total retirement-related benefit plans ​ $ 954 ​ $ (266) ​ $ 689 Other comprehensive income/(loss) ​ $ 1,885 ​ $ (819) ​ $ 1,066 * These AOCI components are included in the computation of net periodic pension cost. 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 six months ended June 30, 2021: ​ Amount ​ Benefit ​ Amount Other comprehensive income/(loss): ​ ​ ​ Foreign currency translation adjustments ​ $ 577 ​ $ (184) ​ $ 393 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 ​ $ 153 ​ $ (39) ​ $ 114 Reclassification of (gains)/losses to: ​ ​ ​ ​ ​ ​ Cost of services ​ (21) ​ 5 ​ (16) Cost of sales ​ 32 ​ (8) ​ 24 Cost of financing ​ 12 ​ (3) ​ 9 SG&A expense ​ 31 ​ (8) ​ 23 Other (income) and expense ​ 165 ​ (41) ​ 123 Interest expense ​ 31 ​ (8) ​ 24 Total unrealized gains/(losses) on cash flow hedges ​ $ 404 ​ $ (102) ​ $ 301 Retirement-related benefit plans*: ​ ​ ​ Prior service costs/(credits) ​ $ 0 ​ $ 0 ​ $ 0 Net (losses)/gains arising during the period ​ ​ 22 ​ ​ 4 ​ ​ 25 Curtailments and settlements ​ 34 ​ (10) ​ 23 Amortization of prior service (credits)/costs ​ 4 ​ 0 ​ 4 Amortization of net (gains)/losses ​ 1,291 ​ (352) ​ 938 Total retirement-related benefit plans ​ $ 1,350 ​ $ (359) ​ $ 991 Other comprehensive income/(loss) ​ $ 2,330 ​ $ (645) ​ $ 1,685 * 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)	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Change Net Unrealized ​ ​ ​ Net Unrealized ​ Foreign ​ Retirement- ​ Gains/(Losses) ​ Accumulated ​ ​ Gains/(Losses) ​ Currency ​ Related ​ on Available- ​ Other ​ ​ on Cash Flow ​ Translation ​ Benefit ​ For-Sale ​ Comprehensive (Dollars in millions) ​ Hedges ​ Adjustments* ​ Plans ​ Securities ​ Income/(Loss) January 1, 2022 ​ $ (18) ​ $ (3,362) ​ $ (19,854) ​ $ (1) ​ $ (23,234) Other comprehensive income before reclassifications ​ 191 ​ 172 ​ 3 ​ 0 ​ 366 Amount reclassified from accumulated other comprehensive income ​ 14 ​ — ​ 686 ​ — ​ 699 Total change for the period ​ $ 205 ​ $ 172 ​ $ 689 ​ $ 0 ​ $ 1,066 June 30, 2022 ​ $ 187 ​ $ (3,189) ​ $ (19,165) ​ $ (1) ​ $ (22,169) * Foreign currency translation adjustments are presented gross except for any associated hedges which are presented net of tax. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Change Net Unrealized ​ ​ ​ Net Unrealized ​ Foreign ​ Retirement- ​ Gains/(Losses) ​ Accumulated ​ ​ Gains/(Losses) ​ Currency ​ Related ​ on Available- ​ Other ​ ​ on Cash Flow ​ Translation ​ Benefit ​ For-Sale ​ Comprehensive (Dollars in millions) ​ Hedges ​ Adjustments* ​ Plans ​ Securities ​ Income/(Loss) January 1, 2021 ​ $ (456) ​ $ (4,665) ​ $ (24,216) ​ $ 0 ​ $ (29,337) Other comprehensive income before reclassifications ​ 114 ​ 393 ​ 25 ​ 0 ​ 532 Amount reclassified from accumulated other comprehensive income ​ 187 ​ — ​ 966 ​ — ​ 1,153 Total change for the period ​ $ 301 ​ $ 393 ​ $ 991 ​ $ 0 ​ $ 1,685 June 30, 2021 ​ $ (155) ​ $ (4,271) ​ $ (23,225) ​ $ (1) ​ $ (27,652) * 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)	6 Months Ended
	Jun. 30, 2022
Derivative Financial Instruments
Amounts related to cumulative basis adjustments for fair value hedges	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, (Dollars in millions) ​ 2022 ​ 2021 Short-term debt: ​ ​ ​ Carrying amount of the hedged item ​ $ (224) ​ $ (227) ​ Cumulative hedging adjustments included in the carrying amount — assets/(liabilities)* ​ 1 ​ (2) ​ Long-term debt: ​ ​ ​ Carrying amount of the hedged item ​ $ (4,366) ​ $ (508) ​ Cumulative hedging adjustments included in the carrying amount — assets/(liabilities)* ​ (188) ​ (309) ​ *
Effect of derivative instruments in the Consolidated Income Statement	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gains/(Losses) of (Dollars in millions) ​ Total ​ Total Hedge Activity For the three months ended June 30: 2022 2021 2022 2021 Cost of services ​ $ 5,399 ​ $ 4,720 ​ $ 13 ​ $ 7 ​ Cost of sales ​ 1,750 ​ 1,499 * 23 ​ (10) ​ Cost of financing ​ 96 ​ 146 * 1 ​ 0 ​ SG&A expense ​ 4,855 ​ 4,849 ​ (152) ​ 67 ​ Other (income) and expense ​ (81) ​ 302 ​ (439) ​ (79) ​ Interest expense ​ 297 ​ 281 ​ 3 ​ (1) ​ * Reclassified to conform to current year presentation. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gain (Loss) Recognized in Consolidated Income Statement ​ ​ Consolidated ​ Recognized on ​ Attributable to Risk (Dollars in millions) ​ Income Statement ​ Derivatives ​ Being Hedged (2) For the three months ended June 30: Line Item 2022 2021 2022 2021 Derivative instruments in fair value hedges (1): ​ ​ ​ ​ Interest rate contracts Cost of financing ​ $ (17) ​ $ 0 ​ $ 23 ​ $ 4 ​ Interest expense ​ (61) ​ 0 ​ 81 ​ 11 Derivative instruments not designated as hedging instruments: ​ ​ ​ ​ Foreign exchange contracts Other (income) and expense ​ (313) ​ (30) ​ N/A ​ N/A Equity contracts SG&A expense ​ (166) ​ 83 ​ N/A ​ N/A ​ ​ Other (income) and expense ​ ​ (88) ​ ​ — ​ ​ N/A ​ ​ N/A Total ​ $ (645) ​ $ 54 ​ $ 104 ​ $ 15 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gain (Loss) Recognized in Consolidated Income Statement and Other Comprehensive Income (Dollars in millions) ​ ​ ​ ​ ​ ​ ​ Consolidated ​ Reclassified ​ Amounts Excluded from For the three months ​ Recognized in OCI ​ Income Statement ​ from AOCI ​ Effectiveness Testing (3) ended June 30: 2022 2021 Line Item 2022 2021 2022 2021 Derivative instruments in cash flow hedges: ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts ​ $ — ​ $ — Cost of financing ​ $ (1) ​ $ (1) ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ Interest expense ​ (3) ​ (3) ​ — ​ — ​ Foreign exchange contracts ​ 200 ​ (34) Cost of services ​ 13 ​ 7 ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ Cost of sales ​ 23 ​ (10) ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ Cost of financing ​ (5) ​ (5) ​ ​ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ SG&A expense ​ 14 ​ (16) ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ Other (income) and expense ​ (38) ​ (49) ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ Interest expense ​ (19) ​ (12) ​ ​ — ​ ​ — ​ Instruments in net investment hedges (4): ​ ​ ​ ​ ​ ​ ​ ​ Foreign exchange contracts ​ 1,379 ​ (177) Cost of financing ​ — ​ — ​ 1 ​ 1 ​ ​ ​ ​ ​ ​ Interest expense ​ — ​ — ​ 5 ​ 4 ​ Total ​ $ 1,579 ​ $ (211) ​ $ (16) ​ $ (90) ​ $ 6 ​ $ 5 ​ (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) The company’s policy is to recognize all fair value changes in amounts excluded from effectiveness testing in net income each period. (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 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gains/(Losses) of (Dollars in millions) ​ Total ​ Total Hedge Activity For the six months ended June 30: 2022 2021 2022 2021 Cost of services ​ $ 10,747 ​ $ 9,364 ​ $ 28 ​ $ 21 ​ Cost of sales ​ 3,165 ​ 2,878 * 35 ​ (32) ​ Cost of financing ​ 194 ​ 283 * (1) ​ 2 ​ SG&A expense ​ 9,452 ​ 9,536 ​ (223) ​ 101 ​ Other (income) and expense ​ 166 ​ 647 ​ (541) ​ (239) ​ Interest expense ​ 607 ​ 561 ​ (3) ​ 4 ​ * Reclassified to conform to current year presentation. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gain (Loss) Recognized in Consolidated Income Statement ​ ​ Consolidated ​ Recognized on ​ Attributable to Risk (Dollars in millions) ​ Income Statement ​ Derivatives ​ Being Hedged (2) For the six months ended June 30: ​ Line Item ​ 2022 2021 ​ 2022 2021 Derivative instruments in fair value hedges (1): ​ ​ ​ ​ Interest rate contracts Cost of financing ​ $ (18) ​ $ 0 ​ $ 26 ​ $ 11 ​ Interest expense ​ (65) ​ (1) ​ 97 ​ 29 Derivative instruments not designated as hedging instruments: ​ ​ ​ ​ Foreign exchange contracts Other (income) and expense ​ (409) ​ (74) ​ N/A ​ N/A Equity contracts SG&A expense ​ (243) ​ 133 ​ N/A ​ N/A ​ ​ Other (income) and expense ​ ​ (88) ​ ​ — ​ ​ N/A ​ ​ N/A Total ​ $ (821) ​ $ 57 ​ $ 123 ​ $ 40 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gain (Loss) Recognized in Consolidated Income Statement and Other Comprehensive Income (Dollars in millions) ​ ​ ​ ​ ​ ​ ​ Consolidated ​ Reclassified ​ Amounts Excluded from For the six months ​ Recognized in OCI ​ Income Statement ​ from AOCI ​ Effectiveness Testing (3) ended June 30: 2022 2021 Line Item 2022 2021 2022 2021 Derivative instruments in cash flow hedges: ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts ​ $ — ​ $ — Cost of financing ​ $ (2) ​ $ (2) ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ Interest expense ​ (7) ​ (6) ​ — ​ — ​ Foreign exchange contracts ​ 260 ​ 153 Cost of services ​ 28 ​ 21 ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ Cost of sales ​ 35 ​ (32) ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ Cost of financing ​ (10) ​ (9) ​ ​ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ SG&A expense ​ 20 ​ (31) ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ Other (income) and expense ​ (45) ​ (165) ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ Interest expense ​ (36) ​ (25) ​ ​ — ​ ​ — ​ Instruments in net investment hedges (4): ​ ​ ​ ​ ​ ​ ​ ​ Foreign exchange contracts ​ 1,920 ​ 730 Cost of financing ​ — ​ — ​ 2 ​ 3 ​ ​ ​ ​ ​ ​ Interest expense ​ — ​ — ​ 7 ​ 8 ​ Total ​ $ 2,180 ​ $ 883 ​ $ (16) ​ $ (251) ​ $ 9 ​ $ 11 ​ (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) The company’s policy is to recognize all fair value changes in amounts excluded from effectiveness testing in net income each period. (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)	6 Months Ended
	Jun. 30, 2022
Stock-Based Compensation
Stock-based compensation cost included in income from continuing operations	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, (Dollars in millions) ​ 2022 ​ 2021 ​ 2022 ​ 2021 Cost ​ $ 43 ​ $ 35 ​ $ 84 ​ $ 68 Selling, general and administrative ​ 153 ​ 141 ​ 289 ​ 256 Research, development and engineering ​ 58 ​ 50 ​ 115 ​ 99 Pre-tax stock-based compensation cost ​ $ 254 ​ $ 225 ​ $ 488 ​ $ 423 Income tax benefits ​ (82) ​ (64) ​ (139) ​ (112) Total net stock-based compensation cost ​ $ 172 ​ $ 162 ​ $ 348 ​ $ 311

Retirement-Related Benefits (Ta

Retirement-Related Benefits (Tables)	6 Months Ended
	Jun. 30, 2022
Retirement-Related Benefits
Pre-tax cost for all retirement-related plans	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Yr. to Yr. (Dollars in millions) ​ ​ ​ ​ ​ ​ ​ Percent For the three months ended June 30: ​ 2022 ​ 2021 ​ Change Retirement-related plans — ​ ​ ​ Defined benefit and contribution pension plans — ​ $ 456 ​ $ 600 (24.0) % Nonpension postretirement plans — ​ 33 ​ 44 (25.0) ​ Total ​ $ 489 ​ $ 644 (24.1) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Yr. to Yr. (Dollars in millions) ​ ​ ​ ​ ​ ​ ​ Percent For the six months ended June 30: ​ 2022 ​ 2021 ​ Change Retirement-related plans — ​ ​ ​ Defined benefit and contribution pension plans — ​ $ 934 ​ $ 1,219 (23.4) % Nonpension postretirement plans — ​ 66 ​ 88 (25.0) ​ Total ​ $ 1,000 ​ $ 1,307 (23.5) %
Components of the cost/(income) for the company's pension plans	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ U.S. Plans ​ Non-U.S. Plans For the three months ended June 30: 2022 2021 2022 2021 Service cost ​ $ — ​ $ — ​ $ 59 ​ $ 68 Interest cost* ​ 302 ​ 277 ​ 131 ​ 108 Expected return on plan assets* ​ (475) ​ (451) ​ (259) ​ (279) Amortization of prior service costs/(credits)* ​ 2 ​ 4 ​ 3 ​ (5) Recognized actuarial losses* ​ 179 ​ 249 ​ 260 ​ 352 Curtailments and settlements* ​ — ​ — ​ 11 ​ 16 Multi-employer plans ​ — ​ — ​ 3 ​ 5 Other costs/(credits)* ​ — ​ — ​ 6 ​ 3 Total net periodic pension (income)/cost of defined benefit plans ​ $ 8 ​ $ 80 ​ $ 215 ​ $ 268 Cost of defined contribution plans ​ 141 ​ 151 ​ 92 ​ 101 Total defined benefit and contribution pension plans cost recognized in the Consolidated Income Statement ​ $ 149 ​ $ 231 ​ $ 307 ​ $ 369 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ U.S. Plans ​ Non-U.S. Plans For the six months ended June 30: 2022 2021 2022 2021 Service cost ​ $ — ​ $ — ​ $ 123 ​ $ 133 Interest cost* ​ 603 ​ 555 ​ 270 ​ 216 Expected return on plan assets* ​ (950) ​ (901) ​ (532) ​ (559) Amortization of prior service costs/(credits)* ​ 4 ​ 8 ​ 7 ​ (7) Recognized actuarial losses* ​ 359 ​ 498 ​ 537 ​ 708 Curtailments and settlements* ​ — ​ — ​ 19 ​ 34 Multi-employer plans ​ — ​ — ​ 7 ​ 11 Other costs/(credits)* ​ — ​ — ​ 15 ​ 15 Total net periodic pension (income)/cost of defined benefit plans ​ $ 15 ​ $ 160 ​ $ 446 ​ $ 551 Cost of defined contribution plans ​ 282 ​ 302 ​ 190 ​ 206 Total defined benefit and contribution pension plans cost recognized in the Consolidated Income Statement ​ $ 298 ​ $ 462 ​ $ 636 ​ $ 757 * These components of net periodic pension cost are included in other (income) and expense in the Consolidated Income Statement.
Components of the cost/(income) for the company's nonpension postretirement plans	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ U.S. Plan ​ Non-U.S. Plans For the three months ended June 30: 2022 2021 2022 2021 Service cost ​ $ 1 ​ $ 2 ​ $ 1 ​ $ 1 Interest cost* ​ 18 ​ 16 ​ 9 ​ 8 Expected return on plan assets* ​ — ​ — ​ (1) ​ (1) Amortization of prior service costs/(credits)* ​ 1 ​ 1 ​ 0 ​ 0 Recognized actuarial losses* ​ 2 ​ 13 ​ 1 ​ 4 Curtailments and settlements* ​ — ​ — ​ — ​ 0 Total nonpension postretirement plans cost recognized in the Consolidated Income Statement ​ $ 23 ​ $ 32 ​ $ 10 ​ $ 13 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ U.S. Plan ​ Non-U.S. Plans For the six months ended June 30: 2022 2021 2022 2021 Service cost ​ $ 2 ​ $ 4 ​ $ 2 ​ $ 2 Interest cost* ​ 37 ​ 32 ​ 18 ​ 16 Expected return on plan assets* ​ — ​ — ​ (1) ​ (2) Amortization of prior service costs/(credits)* ​ 2 ​ 2 ​ 0 ​ 0 Recognized actuarial losses* ​ 4 ​ 26 ​ 2 ​ 8 Curtailments and settlements* ​ — ​ — ​ — ​ 0 Total nonpension postretirement plans cost recognized in the Consolidated Income Statement ​ $ 46 ​ $ 64 ​ $ 20 ​ $ 25 * These components of net periodic pension cost are included in other (income) and expense in the Consolidated Income Statement.
Schedule of contributions	​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ Plan Contributions For the six months ended June 30: ​ ​ 2022 2021 U.S. and non-U.S. nonpension postretirement benefit plans ​ $ 202 ​ $ 191 Non-U.S. DB and multi-employer plans* ​ 43 ​ 42 Total plan contributions ​ $ 245 ​ $ 233 * Amounts reported net of refunds.

Basis of Presentation (Details)

Basis of Presentation (Details) $ in Millions			3 Months Ended			6 Months Ended
	May 23, 2022 shares	May 19, 2022 shares	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)		Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)		Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Nov. 03, 2021
Provision for/(benefit from) income taxes			$ 257	$ 101	[1]	$ 218	$ (58)	[1]
Effective tax rate (as a percent)			14.90%	11.10%		9.30%	(5.00%)
Numbers shares transferred | shares		22,300,000
Common Stocks, Including Additional Paid in Capital			$ 57,802			$ 57,802				$ 57,319
Retained earnings			153,298			153,298				$ 154,209
Other (income) and expenses
Noncontrolling interest amounts, net of tax			$ 5.5	$ 4.2		$ 10.5	$ 9.1
Kyndryl Holdings, Inc
Total of Kyndryl stock distributed to IBM stockholders of record as of 10/25/2021 (as a percentage)											80.10%
Ownership interest by stockholders (in percent)											19.90%
Numbers shares transferred | shares	22,301,536
Amount of retained interest transferred	9.95%
Revision of Prior Period, Reclassification, Adjustment
Common Stocks, Including Additional Paid in Capital									$ 63
Retained earnings									$ (63)
Kyndryl Holdings, Inc
Total of Kyndryl stock distributed to IBM stockholders of record as of 10/25/2021 (as a percentage)											80.10%
Share conversion ratio											0.2
[1] Reclassified to reflect discontinued operations presentation.

Separation of Kyndryl (Details)

Separation of Kyndryl (Details) $ in Millions			3 Months Ended			6 Months Ended
	May 23, 2022 shares	May 19, 2022 shares	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Nov. 03, 2021
Discontinued Operations
Numbers shares transferred | shares		22,300,000
Kyndryl Holdings, Inc
Discontinued Operations
Kyndryl stock distributed to IBM stockholders								80.10%
Share conversion ratio								0.2
Upgraded hardware period						2 years
Kyndryl Holdings, Inc | Maximum
Discontinued Operations
Transition services period						2 years
Kyndryl Holdings, Inc
Discontinued Operations
Kyndryl stock distributed to IBM stockholders								80.10%
Ownership interest by stockholders (in percent)								19.90%
Amount of retained interest transferred	9.95%
Numbers shares transferred | shares	22,301,536
Pre-tax gain on sale | $				$ 68
Managed infrastructure services unit | Disposed by separation
Discontinued Operations
Separation costs | $			$ 2		$ 146	$ 5	$ 196

Separation of Kyndryl - Major c

Separation of Kyndryl - Major categories of income (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021		Jun. 30, 2022	Jun. 30, 2021
Discontinued Operations
Income/(Loss) from discontinued operations, net of tax	$ (73)	$ 515	[1]	$ (2)	$ 1,067	[1]
Managed infrastructure services unit | Disposed by separation
Discontinued Operations
Revenue	(11)	4,527		7	9,070
Cost of sales	(4)	3,375		17	6,741
Selling, general and administrative	73	485		66	972
RD&E and Other (income) and expense	0	26		(69)	55
Income/(Loss) from discontinued operations before income taxes	(80)	641		(7)	1,302
Provision for/(benefit from) income taxes	(7)	126		(5)	235
Income/(Loss) from discontinued operations, net of tax	$ (73)	$ 515		$ (2)	$ 1,067
[1] Reclassified to reflect discontinued operations presentation.

Separation of Kyndryl - Cash fl

Separation of Kyndryl - Cash flows (Details) - Managed infrastructure services unit - Disposed by separation - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Divestitures
Net cash provided by/(used in) operating activities		$ 1,465
Net cash provided by/(used in) investing activities	$ 48	$ (321)

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue by Major Products and Service Offerings (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021		Jun. 30, 2022	Jun. 30, 2021
Revenue by Major Products/Service Offerings
Total Revenue	$ 15,535	$ 14,218	[1]	$ 29,732	$ 27,405	[1]
Business Segments
Revenue by Major Products/Service Offerings
Total Revenue	15,355	13,941		29,328	26,843
Other
Revenue by Major Products/Service Offerings
Revenue	180	277		404	561
Software | Business Segments
Revenue by Major Products/Service Offerings
Revenue	6,166	5,795		11,938	10,933
Total Revenue	6,166	5,795		11,938	10,933
Consulting | Business Segments
Revenue by Major Products/Service Offerings
Revenue	4,809	4,378		9,637	8,641
Total Revenue	4,809	4,378		9,637	8,641
Infrastructure | Business Segments
Revenue by Major Products/Service Offerings
Revenue	4,235	3,560		7,453	6,853
Total Revenue	4,235	3,560		7,453	6,853
Financing | Business Segments
Revenue by Major Products/Service Offerings
Revenue	146	209		300	417
Total Revenue	146	209		300	417
Hybrid Platform & Solutions | Software | Business Segments
Revenue by Major Products/Service Offerings
Revenue	4,390	4,208		8,470	8,008
Transaction Processing | Software | Business Segments
Revenue by Major Products/Service Offerings
Revenue	1,776	1,587		3,468	2,925
Business Transformation | Consulting | Business Segments
Revenue by Major Products/Service Offerings
Revenue	2,227	2,049		4,482	4,002
Technology Consulting | Consulting | Business Segments
Revenue by Major Products/Service Offerings
Revenue	928	814		1,884	1,649
Application Operations | Consulting | Business Segments
Revenue by Major Products/Service Offerings
Revenue	1,653	1,514		3,272	2,989
Hybrid Infrastructure | Infrastructure | Business Segments
Revenue by Major Products/Service Offerings
Revenue	2,760	2,059		4,461	3,841
Infrastructure Support | Infrastructure | Business Segments
Revenue by Major Products/Service Offerings
Revenue	$ 1,474	$ 1,501		$ 2,993	$ 3,012
[1] Reclassified to reflect discontinued operations presentation.

Revenue Recognition - Hybrid Cl

Revenue Recognition - Hybrid Cloud Revenue by Segment (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenue by Major Products/Service Offerings
Hybrid cloud revenue	$ 5,863	$ 4,979	$ 10,872	$ 9,369
Software
Revenue by Major Products/Service Offerings
Hybrid cloud revenue	2,288	2,015	4,418	3,760
Consulting
Revenue by Major Products/Service Offerings
Hybrid cloud revenue	2,286	1,901	4,421	3,623
Infrastructure
Revenue by Major Products/Service Offerings
Hybrid cloud revenue	1,220	981	1,892	1,818
Other.
Revenue by Major Products/Service Offerings
Hybrid cloud revenue	$ 69	$ 82	$ 141	$ 169

Revenue Recognition - Disaggr_2

Revenue Recognition - Disaggregation of Revenue by Geography (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021		Jun. 30, 2022	Jun. 30, 2021
Revenue by Geography
Revenues	$ 15,535	$ 14,218	[1]	$ 29,732	$ 27,405	[1]
Americas
Revenue by Geography
Revenues	8,142	7,122		15,198	13,599
EMEA
Revenue by Geography
Revenues	4,526	4,314		8,757	8,242
Asia Pacific
Revenue by Geography
Revenues	$ 2,868	$ 2,782		$ 5,778	$ 5,563
[1] Reclassified to reflect discontinued operations presentation.

Revenue Recognition - Remaining

Revenue Recognition - Remaining Performance Obligations (Details) $ in Billions	6 Months Ended
	Jun. 30, 2022 USD ($)
Revenue Recognition
Practical expedient, remaining performance obligations	true
Remaining performance obligations related to customer contracts that are unsatisfied or partially unsatisfied	$ 55

Revenue Recognition - Remaini_2

Revenue Recognition - Remaining Performance Obligations, Expected Timing of Satisfaction (Details)	Jun. 30, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Remaining Performance Obligations
Percentage of remaining performance obligation expected to be recognized	71%
Duration of expected recognition period for remaining performance obligation	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Remaining Performance Obligations
Percentage of remaining performance obligation expected to be recognized	26%
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Remaining Performance Obligations
Duration of expected recognition period for remaining performance obligation	3 years
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Remaining Performance Obligations
Duration of expected recognition period for remaining performance obligation	5 years

Revenue Recognition - Performan

Revenue Recognition - Performance Obligations Satisfied or Partially Satisfied in Prior Periods (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022
Revenue Recognition
Impact to revenue from performance obligations satisfied (or partially satisfied) in previous periods	$ (24)	$ (28)

Revenue Recognition - Reconcili

Revenue Recognition - Reconciliation of Contract Balances (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Reconciliation of Contract Balances
Notes and accounts receivable - trade (net of allowances of $213 in 2022 and $218 in 2021)	$ 5,867	$ 5,867	$ 6,754
Notes and accounts receivable - trade, allowances	213	213	218
Contract assets	531	531	471
Deferred income (current)	12,522	12,522	12,518
Deferred income (noncurrent)	3,069	3,069	$ 3,577
Revenue recognized that was included in deferred income at the beginning of the period	$ 4,400	$ 6,800

Revenue Recognition - Trade All

Revenue Recognition - Trade Allowance for Credit Losses (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Roll forward of notes and accounts receivable - trade allowance for credit losses
Allowance for Credit Loss, Beginning Balance	$ 218	$ 260
Additions / (Releases)	30	(15)
Write-offs	(22)	(28)
Foreign currency and other	(13)	1
Allowance for Credit Loss, Ending Balance	$ 213	$ 218

Segments - Results of Continuin

Segments - Results of Continuing Operations (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021		Jun. 30, 2022	Jun. 30, 2021
Segment Information
Revenue	$ 15,535	$ 14,218	[1]	$ 29,732	$ 27,405	[1]
Pre-tax income from continuing operations	1,722	912	[1]	2,345	1,155	[1]
Business Segments
Segment Information
Revenue	15,355	13,941		29,328	26,843
Pre-tax income from continuing operations	$ 2,577	$ 1,949		$ 4,342	$ 3,274
Revenue year-to-year change (as a percent)	10.10%			9.30%
Pre-tax income year-to-year change (as a percent)	32.20%			32.60%
Pre-tax income margin (as a percent)	16.80%	14%		14.80%	12.20%
Business Segments | Software
Segment Information
Revenue	$ 6,166	$ 5,795		$ 11,938	$ 10,933
Pre-tax income from continuing operations	$ 1,375	$ 1,059		$ 2,509	$ 1,717
Revenue year-to-year change (as a percent)	6.40%			9.20%
Pre-tax income year-to-year change (as a percent)	29.90%			46.20%
Pre-tax income margin (as a percent)	22.30%	18.30%		21%	15.70%
Business Segments | Consulting
Segment Information
Revenue	$ 4,809	$ 4,378		$ 9,637	$ 8,641
Pre-tax income from continuing operations	$ 343	$ 270		$ 691	$ 547
Revenue year-to-year change (as a percent)	9.80%			11.50%
Pre-tax income year-to-year change (as a percent)	26.90%			26.30%
Pre-tax income margin (as a percent)	7.10%	6.20%		7.20%	6.30%
Business Segments | Infrastructure
Segment Information
Revenue	$ 4,235	$ 3,560		$ 7,453	$ 6,853
Pre-tax income from continuing operations	$ 757	$ 489		$ 956	$ 780
Revenue year-to-year change (as a percent)	19%			8.80%
Pre-tax income year-to-year change (as a percent)	54.80%			22.50%
Pre-tax income margin (as a percent)	17.90%	13.70%		12.80%	11.40%
Business Segments | Financing
Segment Information
Revenue	$ 146	$ 209		$ 300	$ 417
Pre-tax income from continuing operations	$ 102	$ 131		$ 186	$ 229
Revenue year-to-year change (as a percent)	(29.90%)			(28.00%)
Pre-tax income year-to-year change (as a percent)	(22.40%)			(18.90%)
Pre-tax income margin (as a percent)	69.70%	63%		62%	55%
[1] Reclassified to reflect discontinued operations presentation.

Segments - Revenue Reconciliati

Segments - Revenue Reconciliation (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021		Jun. 30, 2022	Jun. 30, 2021
Revenue
Revenue	$ 15,535	$ 14,218	[1]	$ 29,732	$ 27,405	[1]
Business Segments
Revenue
Revenue	15,355	13,941		29,328	26,843
Other
Revenue
Other - divested businesses	162	197		316	394
Other revenue	$ 18	$ 80		$ 88	$ 167
[1] Reclassified to reflect discontinued operations presentation.

Segments - Pre-Tax Income Recon

Segments - Pre-Tax Income Reconciliation (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021		Jun. 30, 2022	Jun. 30, 2021
Pre-tax income from continuing operations
Amortization of acquired intangible assets	$ (458)	$ (456)		$ (919)	$ (903)
Acquisition-related (charges)/income	(2)	(18)		(9)	(34)
Non-operating retirement-related (costs)/income	(192)	(317)		(394)	(649)
Kyndryl-related impacts	(145)			(367)
Other - divested businesses	160	(50)		109	(65)
Income from continuing operations before income taxes	1,722	912	[1]	2,345	1,155	[1]
Business Segments
Pre-tax income from continuing operations
Income from continuing operations before income taxes	2,577	1,949		4,342	3,274
Internal transactions
Pre-tax income from continuing operations
Income from continuing operations before income taxes	(4)	5		(15)	(4)
Unallocated corporate amounts
Pre-tax income from continuing operations
Income from continuing operations before income taxes	$ (215)	$ (202)		$ (403)	$ (464)
[1] Reclassified to reflect discontinued operations presentation.

Acquisitions & Divestitures - (

Acquisitions & Divestitures - (Details) - 2022 Acquisitions $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($) item
Acquisitions
Percentage of business acquired (as a percent)	100%
Number of acquisitions | item	5
Aggregate acquisitions cost	$ 1,101
Cash consideration payable	$ 147

Acquisitions & Divestitures - P

Acquisitions & Divestitures - Purchase Price Allocation (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021	Dec. 31, 2020
Acquisitions
Goodwill	$ 55,039	$ 55,643	$ 53,765
2022 Acquisitions
Acquisitions
Current assets	60
Property, plant, and equipment/noncurrent assets	3
Goodwill	903
Total assets acquired	1,210
Current liabilities	59
Noncurrent liabilities	50
Total liabilities assumed	110
Total purchase price	$ 1,101
Weighted average useful life	6 years 8 months 12 days
Goodwill deductible for tax purposes	$ 0
2022 Acquisitions | Client relationships
Acquisitions
Intangible assets	$ 151
Weighted average useful life	7 years
2022 Acquisitions | Completed technology
Acquisitions
Intangible assets	$ 87
2022 Acquisitions | Completed technology | Minimum
Acquisitions
Weighted average useful life	4 years
2022 Acquisitions | Completed technology | Maximum
Acquisitions
Weighted average useful life	7 years
2022 Acquisitions | Trademarks
Acquisitions
Intangible assets	$ 8
2022 Acquisitions | Trademarks | Minimum
Acquisitions
Weighted average useful life	2 years
2022 Acquisitions | Trademarks | Maximum
Acquisitions
Weighted average useful life	3 years
Software
Acquisitions
Goodwill	$ 43,626	43,966	42,665
Software | 2022 Acquisitions
Acquisitions
Goodwill	442
Consulting
Acquisitions
Goodwill	7,044	6,797	6,145
Consulting | 2022 Acquisitions
Acquisitions
Goodwill	461
Infrastructure
Acquisitions
Goodwill	$ 4,368	$ 4,396	$ 4,436

Acquisitions & Divestitures - D

Acquisitions & Divestitures - Divestitures (Details) - Divested businesses $ in Millions		3 Months Ended
	Jun. 30, 2022 USD ($)	Mar. 31, 2022 item	Jan. 31, 2022 USD ($)
Healthcare software assets divestiture
Divestitures
Consideration			$ 1,065
Cash consideration received	$ 1,065
Pre-tax gain on sale of business	$ 232
Other divestitures | Infrastructure
Divestitures
Number of divestitures | item		1

Earnings Per Share of Common _3

Earnings Per Share of Common Stock - Computation (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021		Jun. 30, 2022	Jun. 30, 2021
Number of shares on which basic earnings per share is calculated:
Weighted-average shares outstanding during period (in shares)	901,470,793	895,043,024	[1]	900,393,410	894,336,970	[1]
Add - Incremental shares under stock-based compensation plans (in shares)	7,518,749	7,431,661		7,946,998	7,027,051
Add - Incremental shares associated with contingently issuable shares (in shares)	1,760,192	1,758,754		1,647,528	1,625,732
Number of shares on which diluted earnings per share is calculated (in shares)	910,749,734	904,233,439	[1]	909,987,935	902,989,752	[1]
Net income on which basic earnings per share is calculated
Income from continuing operations	$ 1,465	$ 810		$ 2,127	$ 1,213
Income/(loss) from discontinued operations, net of tax	(73)	515		(2)	1,067
Net income on which basic earnings per share is calculated	1,392	1,325		2,125	2,280
Net income on which diluted earnings per share is calculated
Income from continuing operations	1,465	810		2,127	1,213
Income from continuing operations on which diluted earnings per share is calculated	1,465	810		2,127	1,213
Income/(loss) from discontinued operations, net of tax, on which diluted earnings per share is calculated	(73)	515		(2)	1,067
Net income on which diluted earnings per share is calculated	$ 1,392	$ 1,325		$ 2,125	$ 2,280
Assuming dilution
Continuing operations (in dollars per share)	$ 1.61	$ 0.90	[1]	$ 2.34	$ 1.34	[1]
Discontinued operations (in dollars per share)	(0.08)	0.57	[1]	0	1.18	[1]
Total (in dollars per share)	1.53	1.47	[1]	2.34	2.52	[1]
Basic
Continuing operations (in dollars per share)	1.62	0.91	[1]	2.36	1.36	[1]
Discontinued operations (in dollars per share)	(0.08)	0.57	[1]	0	1.19	[1]
Total (in dollars per share)	$ 1.54	$ 1.48	[1]	$ 2.36	$ 2.55	[1]
[1] Reclassified to reflect discontinued operations presentation.

Earnings Per Share of Common _4

Earnings Per Share of Common Stock - Antidilutive Stock Options (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Stock Options
Antidilutive stock options
Outstanding stock options not included in the computation of diluted earnings per share (in shares)	788,500	375,990	975,911	943,438

Financial Assets & Liabilitie_2

Financial Assets & Liabilities - Impairment (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Financial Assets & Liabilities
Impairment for credit losses	$ 0	$ 0	$ 0	$ 0

Financial Assets & Liabilitie_3

Financial Assets & Liabilities - Fair Value Measurements (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Financial assets and financial liabilities measured at fair value on a recurring basis:
Debt securities - current	$ 524	$ 600
Recurring
Financial assets and financial liabilities measured at fair value on a recurring basis:
Cash equivalents	3,535	2,766
Equity investments		0
Total assets	5,261	4,608
Total liabilities	769	162
Recurring | Prepaid expenses and other current assets
Financial assets and financial liabilities measured at fair value on a recurring basis:
Derivative assets	723	358
Recurring | Investments and sundry assets
Financial assets and financial liabilities measured at fair value on a recurring basis:
Derivative assets	11	40
Recurring | Other accrued expenses and liabilities
Financial assets and financial liabilities measured at fair value on a recurring basis:
Derivative liabilities	266	60
Recurring | Other liabilities
Financial assets and financial liabilities measured at fair value on a recurring basis:
Derivative liabilities	285	103
Recurring | Level 1 | Money market funds
Financial assets and financial liabilities measured at fair value on a recurring basis:
Cash equivalents	933	263
Recurring | Level 2
Financial assets and financial liabilities measured at fair value on a recurring basis:
Secured borrowing	218
Debt securities - current	524	600
Recurring | Level 2 | Interest rate contracts
Financial assets and financial liabilities measured at fair value on a recurring basis:
Derivatives designated as hedging - Assets	2	12
Derivatives designated as hedging - Liabilities	82
Recurring | Level 2 | Foreign exchange contracts
Financial assets and financial liabilities measured at fair value on a recurring basis:
Derivatives designated as hedging - Assets	717	359
Derivatives designated as hedging - Liabilities	348	117
Derivatives not designated as hedging - Assets	11	21
Derivatives not designated as hedging - Liabilities	26	42
Recurring | Level 2 | Time deposits and certificates of deposit
Financial assets and financial liabilities measured at fair value on a recurring basis:
Cash equivalents	2,602	1,903
Recurring | Level 2 | U.S. government securities
Financial assets and financial liabilities measured at fair value on a recurring basis:
Cash equivalents		599
Recurring | Level 1 And 2 | Equity contracts
Financial assets and financial liabilities measured at fair value on a recurring basis:
Derivatives not designated as hedging - Assets	5	6
Derivatives not designated as hedging - Liabilities	95	4
Recurring | Level 2 And 3
Financial assets and financial liabilities measured at fair value on a recurring basis:
Debt securities - noncurrent	31	37
Recurring | Kyndryl Holdings, Inc
Financial assets and financial liabilities measured at fair value on a recurring basis:
Equity investments	$ 436	$ 807

Financial Assets & Liabilitie_4

Financial Assets & Liabilities - Kyndryl Common Stock (Details) $ in Millions				3 Months Ended	6 Months Ended
	May 23, 2022 USD ($) $ / shares	May 18, 2022 USD ($)	Nov. 03, 2021	Jun. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Financial assets and financial liabilities measured at fair value on a recurring basis:
Proceeds from short term credit		$ 357
Short-term debt				$ 5,981	$ 5,981	$ 6,787
Strike price | $ / shares	$ 13.95
Debt converted amount	$ 311
Repayment of debt	$ 46
Fair value of the swap				$ 88	$ 88
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration]				Other accrued expenses and liabilities	Other accrued expenses and liabilities
Short term debt, fair value				$ 218	$ 218
Exchangeable debt
Financial assets and financial liabilities measured at fair value on a recurring basis:
Short-term debt				311	311
Other (income) and expense
Financial assets and financial liabilities measured at fair value on a recurring basis:
Unrealized loss					88
Changes in fair value of the debt				(93)
Kyndryl Holdings, Inc
Financial assets and financial liabilities measured at fair value on a recurring basis:
Ownership interest by stockholders (in percent)			19.90%
Amount of retained interest transferred	9.95%
Equity on conversion debt	22.3
Kyndryl Holdings, Inc | Other (income) and expense
Financial assets and financial liabilities measured at fair value on a recurring basis:
Unrealized loss				56	278
Kyndryl Holdings, Inc | Prepaid expenses and other current assets
Financial assets and financial liabilities measured at fair value on a recurring basis:
Investment Owned, at Fair Value				$ 436	$ 436	$ 807
Kyndryl Holdings, Inc
Financial assets and financial liabilities measured at fair value on a recurring basis:
Period in which shares are intended to be disposed of after separation			12 months

Financial Assets & Liabilitie_5

Financial Assets & Liabilities - Not Measured at Fair Value (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Long-Term Debt
Long-term debt	$ 44,328	$ 44,917
Fair value of long-term debt	$ 42,143	$ 49,465

Financing Receivables - Payment

Financing Receivables - Payment Terms (Details)	6 Months Ended
	Jun. 30, 2022
Lease receivables | Minimum
Financing receivables
Financing receivable, payment terms	2 years
Lease receivables | Maximum
Financing receivables
Financing receivable, payment terms	6 years
Commercial financing receivables | Minimum
Financing receivables
Financing receivable, payment terms	30 days
Commercial financing receivables | Maximum
Financing receivables
Financing receivable, payment terms	90 days
Loan receivables | Maximum
Financing receivables
Financing receivable, payment terms	7 years

Financing Receivables - Compone

Financing Receivables - Components of Financing Receivables (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
Components of the company's financing receivables
Net investment in lease, gross	$ 3,851		$ 3,336
Net investment in lease, unearned income	(305)		(223)
Net investment in lease, unguaranteed residual value	383		335
Net investment in lease, amortized cost	3,929		3,448
Net investment in lease, allowance for credit loss	(56)		(64)
Total net investment in lease, net	3,872		3,384
Financing receivable and net investment in lease, gross	12,985		13,881
Financing receivable and net investment in lease, unearned income	(646)		(576)
Financing receivable and net investment in lease, unguaranteed residual value	383		335
Financing receivable and net investment in lease, amortized cost	12,721		13,640
Financing receivable and net investment in lease, allowance for credit loss	(172)		(201)
Financing receivable and net investment in lease, net	12,549		13,439
Asset Pledged as Collateral
Components of the company's financing receivables
Amortized Cost	313		408
Current Assets
Components of the company's financing receivables
Net investment in lease, current	1,438		1,406
Financing receivable and net investment in lease, net	7,233		8,014
Noncurrent Assets
Components of the company's financing receivables
Net investment in lease, noncurrent	2,435		1,978
Financing receivable and net investment in lease, net	5,316		5,425
Loan receivables
Components of the company's financing receivables
Financing receivables, gross	8,343		9,303
Unearned income	(341)		(353)
Amortized Cost	8,002		8,949
Allowance for credit losses	(110)		(131)
Total financing receivables, net	7,891		8,818
Financing receivables transferred	2	$ 1,359
Loan receivables | Current Assets
Components of the company's financing receivables
Total financing receivables, net	5,010		5,371
Loan receivables | Noncurrent Assets
Components of the company's financing receivables
Total financing receivables, net	2,881		3,447
Commercial financing receivables
Components of the company's financing receivables
Financing receivables transferred	3,914	$ 2,621
Commercial financing receivables, Held for investment
Components of the company's financing receivables
Financing receivables, gross	177		450
Amortized Cost	177		450
Allowance for credit losses	(6)		(6)
Total financing receivables, net	171		444
Commercial financing receivables, Held for investment | Current Assets
Components of the company's financing receivables
Total financing receivables, net	171		444
Commercial financing receivables, Held for sale
Components of the company's financing receivables
Financing receivables, gross	614		793
Amortized Cost	614		793
Total financing receivables, net	614		793
Commercial financing receivables, Held for sale | Current Assets
Components of the company's financing receivables
Total financing receivables, net	614		793
Client Financing Receivables
Components of the company's financing receivables
Financing receivable and net investment in lease, amortized cost	11,930		12,397
Financing receivable and net investment in lease, allowance for credit loss	$ (166)		$ (195)	$ (255)

Financing Receivables - Transfe

Financing Receivables - Transfer of Commercial Financing Assets (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Loans and Leases Receivable Disclosure [Line Items]
Net investment in lease transferred	$ 15	$ 732
Financing receivables and net investment in lease transferred	17	2,091
Loan receivables
Loans and Leases Receivable Disclosure [Line Items]
Financing receivables transferred	2	1,359
Commercial financing receivables
Loans and Leases Receivable Disclosure [Line Items]
Financing receivables transferred	3,914	2,621
Financing receivables transferred and uncollected	$ 815	$ 821

Financing Receivables - By Port

Financing Receivables - By Portfolio Segment (Details) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2022 USD ($) item	Dec. 31, 2021 USD ($) item
Financing receivables
Number of classes of financing receivable | item	3	3
Amortized Cost	$ 12,721	$ 13,640
Allowance for credit losses:
Allowance for credit losses, beginning balance	201
Allowance for credit losses, ending balance	172	201
Client Financing Receivables
Financing receivables
Amortized Cost	11,930	12,397
Allowance for credit losses:
Allowance for credit losses, beginning balance	195	255
Write-offs	(18)	(17)
Recoveries	5	1
Additions/(releases)	(10)	(38)
Other	(5)	(7)
Allowance for credit losses, ending balance	166	195
Client Financing Receivables | Americas
Financing receivables
Amortized Cost	7,092	6,573
Allowance for credit losses:
Allowance for credit losses, beginning balance	111	141
Write-offs	(16)	(8)
Recoveries	1	0
Additions/(releases)	(2)	(19)
Other	2	(3)
Allowance for credit losses, ending balance	96	111
Client Financing Receivables | EMEA
Financing receivables
Amortized Cost	3,173	3,793
Allowance for credit losses:
Allowance for credit losses, beginning balance	61	77
Write-offs	(1)	(2)
Recoveries	0	0
Additions/(releases)	(3)	(11)
Other	(5)	(3)
Allowance for credit losses, ending balance	51	61
Client Financing Receivables | Asia Pacific
Financing receivables
Amortized Cost	1,666	2,031
Allowance for credit losses:
Allowance for credit losses, beginning balance	23	37
Write-offs	(2)	(7)
Recoveries	4	1
Additions/(releases)	(5)	(7)
Other	(1)	0
Allowance for credit losses, ending balance	$ 19	$ 23

Financing Receivables - Past Du

Financing Receivables - Past Due (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Past Due Financing Receivable
Amortized Cost	$ 12,721	$ 13,640
Client Financing Receivables
Past Due Financing Receivable
Amortized Cost	11,930	12,397
Amortized Cost Not Accruing	177	205
Impaired financing receivables, related allowance	129	153
Client Financing Receivables | Total Past Due > 90 days
Past Due Financing Receivable
Amortized Cost	324	312
Amortized Cost > 90 Days and Accruing	150	112
Billed Invoices > 90 Days and Accruing	15	10
Client Financing Receivables | Americas
Past Due Financing Receivable
Amortized Cost	7,092	6,573
Amortized Cost Not Accruing	76	90
Client Financing Receivables | Americas | Total Past Due > 90 days
Past Due Financing Receivable
Amortized Cost	216	188
Amortized Cost > 90 Days and Accruing	141	100
Billed Invoices > 90 Days and Accruing	11	6
Client Financing Receivables | EMEA
Past Due Financing Receivable
Amortized Cost	3,173	3,793
Amortized Cost Not Accruing	83	95
Client Financing Receivables | EMEA | Total Past Due > 90 days
Past Due Financing Receivable
Amortized Cost	85	99
Amortized Cost > 90 Days and Accruing	4	7
Billed Invoices > 90 Days and Accruing	1	2
Client Financing Receivables | Asia Pacific
Past Due Financing Receivable
Amortized Cost	1,666	2,031
Amortized Cost Not Accruing	18	20
Client Financing Receivables | Asia Pacific | Total Past Due > 90 days
Past Due Financing Receivable
Amortized Cost	23	25
Amortized Cost > 90 Days and Accruing	5	5
Billed Invoices > 90 Days and Accruing	$ 2	$ 2

Financing Receivables - Credit

Financing Receivables - Credit Quality Year of Origination (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Amortized cost for each class of receivables, by credit quality indicator
Total Amortized Cost	$ 12,721	$ 13,640
Americas | Aaa - Baa3
Amortized cost for each class of receivables, by credit quality indicator
Originated in Current Fiscal Year	1,987	2,556
Originated in Fiscal Year before Latest Fiscal Year	1,750	1,013
Originated Two Years before Latest Fiscal Year	761	544
Originated Three Years before Latest Fiscal Year	382	338
Originated Four Years before Latest Fiscal Year	186	108
Originated Five or More Years before Latest Fiscal Year	61	20
Total Amortized Cost	5,128	4,579
Americas | Ba1 - D
Amortized cost for each class of receivables, by credit quality indicator
Originated in Current Fiscal Year	799	1,147
Originated in Fiscal Year before Latest Fiscal Year	584	392
Originated Two Years before Latest Fiscal Year	306	236
Originated Three Years before Latest Fiscal Year	151	117
Originated Four Years before Latest Fiscal Year	72	50
Originated Five or More Years before Latest Fiscal Year	52	53
Total Amortized Cost	1,964	1,994
EMEA | Aaa - Baa3
Amortized cost for each class of receivables, by credit quality indicator
Originated in Current Fiscal Year	614	1,181
Originated in Fiscal Year before Latest Fiscal Year	645	506
Originated Two Years before Latest Fiscal Year	337	287
Originated Three Years before Latest Fiscal Year	190	189
Originated Four Years before Latest Fiscal Year	86	15
Originated Five or More Years before Latest Fiscal Year	19	21
Total Amortized Cost	1,891	2,198
EMEA | Ba1 - D
Amortized cost for each class of receivables, by credit quality indicator
Originated in Current Fiscal Year	431	778
Originated in Fiscal Year before Latest Fiscal Year	349	342
Originated Two Years before Latest Fiscal Year	221	291
Originated Three Years before Latest Fiscal Year	166	85
Originated Four Years before Latest Fiscal Year	51	52
Originated Five or More Years before Latest Fiscal Year	65	46
Total Amortized Cost	1,282	1,595
Asia Pacific | Aaa - Baa3
Amortized cost for each class of receivables, by credit quality indicator
Originated in Current Fiscal Year	393	565
Originated in Fiscal Year before Latest Fiscal Year	290	381
Originated Two Years before Latest Fiscal Year	268	297
Originated Three Years before Latest Fiscal Year	190	211
Originated Four Years before Latest Fiscal Year	141	74
Originated Five or More Years before Latest Fiscal Year	44	38
Total Amortized Cost	1,326	1,567
Asia Pacific | Ba1 - D
Amortized cost for each class of receivables, by credit quality indicator
Originated in Current Fiscal Year	86	226
Originated in Fiscal Year before Latest Fiscal Year	108	86
Originated Two Years before Latest Fiscal Year	60	51
Originated Three Years before Latest Fiscal Year	30	64
Originated Four Years before Latest Fiscal Year	35	17
Originated Five or More Years before Latest Fiscal Year	22	20
Total Amortized Cost	$ 340	$ 464

Leases - Lease Amounts Included

Leases - Lease Amounts Included in Consolidated Income Statement (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Lease income - sales-type and direct financing leases
Sales-type lease selling price	$ 735	$ 390	$ 789	$ 751
Less: Carrying value of underlying assets	(120)	(100)	(139)	(157)
Gross profit	615	290	651	594
Interest income on lease receivables	45	47	90	98
Total sales-type and direct financing lease income	660	337	741	692
Lease income - operating leases	27	47	56	98
Variable lease income	28	22	56	79
Total lease income	$ 715	$ 406	$ 853	$ 869

Intangible Assets Including G_3

Intangible Assets Including Goodwill - Intangible Assets by Class (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Intangible asset balances by major asset class
Gross Carrying Amount	$ 17,604	$ 19,031
Accumulated Amortization	(6,032)	(6,520)
Net Carrying Amount	11,571	12,511
Amount of foreign currency translation increase (decrease)	(235)	(221)
Capitalized software
Intangible asset balances by major asset class
Gross Carrying Amount	1,705	1,696
Accumulated Amortization	(692)	(751)
Net Carrying Amount	1,013	945
Client relationships
Intangible asset balances by major asset class
Gross Carrying Amount	8,187	9,021
Accumulated Amortization	(2,591)	(2,889)
Net Carrying Amount	5,596	6,132
Completed technology
Intangible asset balances by major asset class
Gross Carrying Amount	5,562	6,074
Accumulated Amortization	(2,113)	(2,259)
Net Carrying Amount	3,449	3,815
Patents/trademarks
Intangible asset balances by major asset class
Gross Carrying Amount	2,117	2,196
Accumulated Amortization	(610)	(586)
Net Carrying Amount	1,507	1,610
Other**
Intangible asset balances by major asset class
Gross Carrying Amount	32	44
Accumulated Amortization	(25)	(35)
Net Carrying Amount	$ 6	$ 9

Intangible Assets Including G_4

Intangible Assets Including Goodwill - Intangible Assets Activity (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Intangible assets
Intangible assets, increase (decrease)			$ (940)
Intangible asset amortization expense	$ 625	$ 625	1,251	$ 1,239
Retirement of fully amortized intangible assets			501
Divested businesses | Healthcare software assets divestiture
Intangible assets
Intangible assets, increase (decrease)			(1,312)
Accumulated amortization, increase (decrease)			$ (1,149)

Intangible Assets Including G_5

Intangible Assets Including Goodwill - Future Amortization (Details) $ in Millions	Jun. 30, 2022 USD ($)
Future amortization expense, by year
Remainder of 2022	$ 1,136
2023	1,922
2024	1,718
2025	1,487
2026	1,438
Thereafter	3,871
Capitalized software
Future amortization expense, by year
Remainder of 2022	304
2023	431
2024	245
2025	32
2026	0
Thereafter	0
Acquired intangibles
Future amortization expense, by year
Remainder of 2022	832
2023	1,490
2024	1,473
2025	1,455
2026	1,438
Thereafter	$ 3,871

Intangible Assets Including G_6

Intangible Assets Including Goodwill - Goodwill by Segment (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Changes in Goodwill Balances
Beginning Balance	$ 55,643	$ 53,765
Goodwill Additions	903	2,549
Purchase Price Adjustments	(121)	2
Divestitures	(485)	(50)
Foreign Currency Translation and Other Adjustments	(901)	(623)
Ending Balance	55,039	55,643
Goodwill impairment losses	0	0
Goodwill accumulated impairment losses	0	0
Software
Changes in Goodwill Balances
Beginning Balance	43,966	42,665
Goodwill Additions	442	1,836
Purchase Price Adjustments	(108)	23
Divestitures		(13)
Foreign Currency Translation and Other Adjustments	(674)	(545)
Ending Balance	43,626	43,966
Consulting
Changes in Goodwill Balances
Beginning Balance	6,797	6,145
Goodwill Additions	461	713
Purchase Price Adjustments	(13)	(21)
Foreign Currency Translation and Other Adjustments	(200)	(40)
Ending Balance	7,044	6,797
Infrastructure
Changes in Goodwill Balances
Beginning Balance	4,396	4,436
Purchase Price Adjustments		0
Divestitures	(1)
Foreign Currency Translation and Other Adjustments	(27)	(39)
Ending Balance	4,368	4,396
Other.
Changes in Goodwill Balances
Beginning Balance	484	520
Divestitures	(484)	(37)
Foreign Currency Translation and Other Adjustments		1
Ending Balance		$ 484
Other. | Divested businesses | Healthcare software assets divestiture
Changes in Goodwill Balances
Divestitures	$ (484)

Borrowings - Short-Term Debt (D

Borrowings - Short-Term Debt (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Short-term debt disclosures
Short-term loans	$ 230	$ 22
Long-term debt - current maturities	5,752	6,764
Total	5,981	$ 6,787
Short term debt, fair value	$ 218
Short-term loans
Short-term debt disclosures
Weighted-average interest rates for short-term debt (as a percent)	1.90%	6.70%

Borrowings - Long-Term Debt, Co

Borrowings - Long-Term Debt, Components (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Borrowings
Long-term debt excluding finance lease obligations	$ 50,755	$ 52,240
Finance lease obligations	108	99
Long-term debt, gross	50,863	52,339
Less: net unamortized discount	837	839
Less: net unamortized debt issuance costs	134	130
Add: fair value adjustment	187	311
Total	50,079	51,681
Less: current maturities	5,752	6,764
Total long-term debt (excluding current portion)	$ 44,328	44,917
Finance lease obligations, interest rate (as a percent)	2%
U.S. dollars
Borrowings
Long-term debt, gross	$ 32,288	34,290
Maturing 2022 | U.S. dollars
Borrowings
Long-term debt, gross	$ 1,904	5,673
Debt instrument, weighted-average interest rate (as a percent)	2.40%
Maturing 2022 | Pound sterling
Borrowings
Long-term debt, gross	$ 364	406
Debt instrument, weighted-average interest rate (as a percent)	2.60%
Maturing 2023 | U.S. dollars
Borrowings
Long-term debt, gross	$ 1,552	1,573
Debt instrument, weighted-average interest rate (as a percent)	3.40%
Maturing 2024 | U.S. dollars
Borrowings
Long-term debt, gross	$ 5,013	5,016
Debt instrument, weighted-average interest rate (as a percent)	3.30%
Maturing 2025 | U.S. dollars
Borrowings
Long-term debt, gross	$ 605	608
Debt instrument, weighted-average interest rate (as a percent)	7%
Maturing 2026 | U.S. dollars
Borrowings
Long-term debt, gross	$ 4,352	4,356
Debt instrument, weighted-average interest rate (as a percent)	3.30%
Maturing 2027 | U.S. dollars
Borrowings
Long-term debt, gross	$ 2,871	2,221
Debt instrument, weighted-average interest rate (as a percent)	2.80%
Maturing 2028 | U.S. dollars
Borrowings
Long-term debt, gross	$ 313	313
Debt instrument, weighted-average interest rate (as a percent)	6.50%
Maturing 2029 | U.S. dollars
Borrowings
Long-term debt, gross	$ 3,250	3,250
Debt instrument, weighted-average interest rate (as a percent)	3.50%
Maturing 2030 | U.S. dollars
Borrowings
Long-term debt, gross	$ 1,350	1,350
Debt instrument, weighted-average interest rate (as a percent)	2%
Maturing 2032 | U.S. dollars
Borrowings
Long-term debt, gross	$ 1,100	600
Debt instrument, weighted-average interest rate (as a percent)	4.40%
Maturing 2038 | U.S. dollars
Borrowings
Long-term debt, gross	$ 83	83
Debt instrument, weighted-average interest rate (as a percent)	8%
Maturing 2039 | U.S. dollars
Borrowings
Long-term debt, gross	$ 2,745	2,745
Debt instrument, weighted-average interest rate (as a percent)	4.50%
Maturing 2040 | U.S. dollars
Borrowings
Long-term debt, gross	$ 650	650
Debt instrument, weighted-average interest rate (as a percent)	2.90%
Maturing 2042 | U.S. dollars
Borrowings
Long-term debt, gross	$ 1,107	1,107
Debt instrument, weighted-average interest rate (as a percent)	4%
Maturing 2045 | U.S. dollars
Borrowings
Long-term debt, gross	$ 27	27
Debt instrument, weighted-average interest rate (as a percent)	7%
Maturing 2046 | U.S. dollars
Borrowings
Long-term debt, gross	$ 650	650
Debt instrument, weighted-average interest rate (as a percent)	4.70%
Maturing 2049 | U.S. dollars
Borrowings
Long-term debt, gross	$ 3,000	3,000
Debt instrument, weighted-average interest rate (as a percent)	4.30%
Maturing 2050 | U.S. dollars
Borrowings
Long-term debt, gross	$ 750	750
Debt instrument, weighted-average interest rate (as a percent)	3%
Maturing 2052 | U.S. dollars
Borrowings
Long-term debt, gross	$ 650
Debt instrument, weighted-average interest rate (as a percent)	3.40%
Maturing 2096 | U.S. dollars
Borrowings
Long-term debt, gross	$ 316	316
Debt instrument, weighted-average interest rate (as a percent)	7.10%
Maturing 2023-2040 | Euro
Borrowings
Long-term debt, gross	$ 16,718	15,903
Debt instrument, weighted-average interest rate (as a percent)	1.10%
Maturing 2022-2026 | Japanese yen
Borrowings
Long-term debt, gross	$ 1,070	1,263
Debt instrument, weighted-average interest rate (as a percent)	0.30%
Maturing 2022-2025 | Other currencies
Borrowings
Long-term debt, gross	$ 315	$ 378
Debt instrument, weighted-average interest rate (as a percent)	15.70%

Borrowings - Long-Term Debt, _2

Borrowings - Long-Term Debt, Covenants (Details) $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($)
Borrowings
Limit based on net tangible assets	10%
Credit Facilities
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) $ in Billions	3 Months Ended
	Mar. 31, 2022 USD ($)
U.S dollar. fixed rate notes
Notes Issued
Aggregate amount of debt issued	$ 1.8
U.S dollar. fixed rate notes | Minimum
Notes Issued
Credit facility term	5 years
Coupon rate (as a percent)	2.20%
U.S dollar. fixed rate notes | Maximum
Notes Issued
Credit facility term	30 years
Coupon rate (as a percent)	3.43%
Euro fixed-rate notes
Notes Issued
Aggregate amount of debt issued	$ 2.3
Euro fixed-rate notes | Minimum
Notes Issued
Credit facility term	8 years
Coupon rate (as a percent)	0.875%
Euro fixed-rate notes | Maximum
Notes Issued
Credit facility term	12 years
Coupon rate (as a percent)	1.25%

Borrowings - Pre-Swap Obligatio

Borrowings - Pre-Swap Obligations (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Pre-swap annual contractual obligations of long-term debt outstanding
Remainder of 2022	$ 2,778
2023	4,607
2024	6,262
2025	3,745
2026	4,664
Thereafter	28,807
Total	$ 50,863	$ 52,339

Borrowings - Interest on Debt (

Borrowings - Interest on Debt (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Interest on Debt
Interest capitalized	$ 2	$ 2
Total interest paid and accrued	775	774
Cost of financing
Interest on Debt
Interest paid	165	210
Interest expense
Interest on Debt
Interest paid	$ 607	$ 561

Borrowings - Lines of Credit (D

Borrowings - Lines of Credit (Details) $ in Billions	6 Months Ended
	Jun. 30, 2022 USD ($)
Five-Year Credit Agreement
Lines of Credit
Amount of credit facility	$ 7.5
Credit facility term	5 years
Three-Year Credit Agreement
Lines of Credit
Amount of credit facility	$ 2.5
Credit facility term	3 years
Credit Facilities
Lines of Credit
Amount of credit facility	$ 10
Borrowings outstanding	$ 0

Commitments - Extensions of Cre

Commitments - Extensions of Credit (Details) - USD ($) $ in Billions	Jun. 30, 2022	Dec. 31, 2021
Extended lines of credit
Commitments, guarantees:
Unused amounts in lines of credit to third-party entities and commitments for future financing to clients	$ 1.3	$ 1.7
Financing for client purchase agreements
Commitments, guarantees:
Unused amounts in lines of credit to third-party entities and commitments for future financing to clients	$ 2.7	$ 3.2

Commitments - Standard Warranty

Commitments - Standard Warranty Liability (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Movement in standard warranty liability
Beginning Balance	$ 77	$ 83
Current period accruals	39	36
Accrual adjustments to reflect actual experience	(1)	(2)
Charges incurred	(41)	(45)
Ending Balance	$ 74	$ 73

Commitments - Extended Warranty

Commitments - Extended Warranty Liability (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Movement in deferred income
Amortization of deferred revenue	$ (4,400)	$ (6,800)
Current portion	12,522	12,522		$ 12,518
Noncurrent portion	3,069	3,069		$ 3,577
Extended Warranty
Movement in deferred income
Beginning Balance		350	$ 425
Revenue deferred for new extended warranty contracts		84	50
Amortization of deferred revenue		(83)	(104)
Other		(12)	(5)
Ending Balance	339	339	367
Current portion	172	172	184
Noncurrent portion	$ 167	$ 167	$ 183

Contingencies (Details)

Contingencies (Details) $ in Millions				1 Months Ended		6 Months Ended
	May 30, 2022 USD ($)	Apr. 05, 2022 defendant	Jun. 08, 2021 USD ($)	Apr. 30, 2022 USD ($)	Feb. 28, 2021 USD ($)	Jun. 30, 2022 USD ($) country
Brazil Tax Matters
Loss Contingencies
Damages sought, value						$ 400
CISGIL v. IBM UK
Loss Contingencies
Amount of award against IBM					$ 20
Additional damages sought, value				$ 89
BMC v. IBM
Loss Contingencies
Direct damages sought, value	$ 718
Punitive damages sought, value	$ 718
Putative Securities Class Action
Loss Contingencies
Number of current executives named as defendants | defendant		2
Number of former executives named as defendants | defendant		2
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			6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021		Jun. 30, 2022	Jun. 30, 2021
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Cost	$ 7,246	$ 6,366	[1]	$ 14,107	$ 12,526	[1]
SG&A expense	4,855	4,849	[1]	9,452	9,536	[1]
Other (income) and expense	(81)	302	[1]	166	647	[1]
Interest expense	297	281	[1]	607	561	[1]
Provision for/(benefit from) income taxes	257	101	[1]	218	(58)	[1]
Net (income) loss	(1,392)	(1,325)	[1],[2]	(2,125)	(2,280)	[1],[2]
Other comprehensive income/(loss)	363	605		1,066	1,685
Services.
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Cost	5,399	4,720	[1]	10,747	9,364	[1]
Sales
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Cost	1,750	1,499	[1],[3]	3,165	2,878	[1],[3]
Financing.
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Cost	96	146	[1],[3]	194	283	[1],[3]
Cost of services
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Cost	5,399	4,720		10,747	9,364
Cost of sales
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Cost	1,750	1,499		3,165	2,878
Cost of financing
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Cost	96	146		194	283
SG&A expense
Reclassifications and Taxes Related to Items of Other Comprehensive Income
SG&A expense	4,855	4,849		9,452	9,536
Other (income) and expenses
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Other (income) and expense	(81)	302		166	647
Interest expense
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Interest expense	297	281		607	561
Accumulated Other Comprehensive Income/(Loss)
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Unrealized gains/(losses) arising during the period, Net of Tax Amount				366	532
Reclassification/amortization, Net of Tax Amount				699	1,153
Other comprehensive income/(loss), Before Tax Amount	897	745		1,885	2,330
Other comprehensive income/(loss), Tax (Expense)/Benefit	(534)	(140)		(819)	(645)
Other comprehensive income/(loss)	363	605		1,066	1,685
Foreign Currency Translation Adjustments
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Unrealized gains/(losses) arising during the period, Net of Tax Amount				172	393
Other comprehensive income/(loss), Before Tax Amount	213	28		655	577
Other comprehensive income/(loss), Tax (Expense)/Benefit	(347)	44		(483)	(184)
Other comprehensive income/(loss)	(134)	72		172	393
Net Unrealized Gains/(Losses) on Available-For-Sale Securities
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Unrealized gains/(losses) arising during the period, Before Tax Amount	0	0		(1)	0
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		0	0
Other comprehensive income/(loss), Before Tax Amount	0	0		(1)	0
Other comprehensive income/(loss), Tax (Expense)/Benefit	0	0		0	0
Other comprehensive income/(loss)	0	0		0	0
Net Unrealized Gains/(Losses) on Cash Flow Hedges
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Unrealized gains/(losses) arising during the period, Before Tax Amount	200	(34)		260	153
Unrealized gains/(losses) arising during the period, Tax (Expense)/Benefit	(53)	9		(69)	(39)
Unrealized gains/(losses) arising during the period, Net of Tax Amount	147	(26)		191	114
Reclassification/amortization, Net of Tax Amount				14	187
Other comprehensive income/(loss), Before Tax Amount	217	56		276	404
Other comprehensive income/(loss), Tax (Expense)/Benefit	(56)	(14)		(71)	(102)
Other comprehensive income/(loss)	161	42		205	301
Net Unrealized Gains/(Losses) on Cash Flow Hedges | Reclassifications
Reclassifications and Taxes Related to Items of Other Comprehensive Income
SG&A expense	(14)	16		(20)	31
Other (income) and expense	38	49		45	165
Interest expense	22	16		43	31
Net Unrealized Gains/(Losses) on Cash Flow Hedges | Reclassifications | Services.
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Cost	(13)	(7)		(28)	(21)
Net Unrealized Gains/(Losses) on Cash Flow Hedges | Reclassifications | Sales
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Cost	(23)	10		(35)	32
Net Unrealized Gains/(Losses) on Cash Flow Hedges | Reclassifications | Financing.
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Cost	6	6		12	12
Net Unrealized Gains/(Losses) on Cash Flow Hedges | Reclassifications | Cost of services
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Provision for/(benefit from) income taxes	3	2		7	5
Net (income) loss	(10)	(5)		(21)	(16)
Net Unrealized Gains/(Losses) on Cash Flow Hedges | Reclassifications | Cost of sales
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Provision for/(benefit from) income taxes	7	(3)		10	(8)
Net (income) loss	(17)	8		(25)	24
Net Unrealized Gains/(Losses) on Cash Flow Hedges | Reclassifications | Cost of financing
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Provision for/(benefit from) income taxes	(2)	(1)		(3)	(3)
Net (income) loss	5	4		9	9
Net Unrealized Gains/(Losses) on Cash Flow Hedges | Reclassifications | SG&A expense
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Provision for/(benefit from) income taxes	4	(4)		5	(8)
Net (income) loss	(10)	12		(14)	23
Net Unrealized Gains/(Losses) on Cash Flow Hedges | Reclassifications | Other (income) and expenses
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Provision for/(benefit from) income taxes	(10)	(12)		(11)	(41)
Net (income) loss	29	37		34	123
Net Unrealized Gains/(Losses) on Cash Flow Hedges | Reclassifications | Interest expense
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Provision for/(benefit from) income taxes	(6)	(4)		(11)	(8)
Net (income) loss	16	12		32	24
Net Change Retirement-Related Benefit Plans
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Unrealized gains/(losses) arising during the period, Net of Tax Amount				3	25
Reclassification/amortization, Net of Tax Amount				686	966
Other comprehensive income/(loss), Before Tax Amount	468	661		954	1,350
Other comprehensive income/(loss), Tax (Expense)/Benefit	(132)	(170)		(266)	(359)
Other comprehensive income/(loss)	336	491		689	991
Retirement-Related Benefit Plans, Prior Service Costs/(Credits)
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Unrealized gains/(losses) arising during the period, Before Tax Amount		0		(5)	0
Unrealized gains/(losses) arising during the period, Tax (Expense)/Benefit	0	0		5	0
Unrealized gains/(losses) arising during the period, Net of Tax Amount	0	0		0	0
Reclassification/amortization, Before Tax Amount	6	1		13	4
Reclassification/amortization, Tax (Expense)/Benefit	(2)	1		(3)	0
Reclassification/amortization, Net of Tax Amount	5	1		10	4
Retirement-Related Benefit Plans, Net Gains/(Losses)
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Unrealized gains/(losses) arising during the period, Before Tax Amount	1	2		10	22
Unrealized gains/(losses) arising during the period, Tax (Expense)/Benefit	(3)	10		(7)	4
Unrealized gains/(losses) arising during the period, Net of Tax Amount	(2)	11		3	25
Reclassification/amortization, Before Tax Amount	450	643		917	1,291
Reclassification/amortization, Tax (Expense)/Benefit	(125)	(175)		(256)	(352)
Reclassification/amortization, Net of Tax Amount	325	467		662	938
Retirement-Related Benefit Plans, Curtailments and Settlements
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Unrealized gains/(losses) arising during the period, Before Tax Amount	11	16		19	34
Unrealized gains/(losses) arising during the period, Tax (Expense)/Benefit	(3)	(5)		(5)	(10)
Unrealized gains/(losses) arising during the period, Net of Tax Amount	$ 8	$ 11		$ 14	$ 23
[1] Reclassified to reflect discontinued operations presentation. Amounts presented have not been recast to exclude discontinued operations. Reclassified to conform to current year presentation.

Equity Activity - AOCI Rollforw

Equity Activity - AOCI Rollforward (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Accumulated Other Comprehensive Income (Loss) (net of tax)
Balance at the Beginning of the Period	$ 19,112	$ 21,513	$ 18,996	$ 20,727
Other comprehensive income/(loss)	363	605	1,066	1,685
Balance at the End of the Period	19,476	22,067	19,476	22,067
Accumulated Other Comprehensive Income/(Loss)
Accumulated Other Comprehensive Income (Loss) (net of tax)
Balance at the Beginning of the Period	(22,532)	(28,257)	(23,234)	(29,337)
Other comprehensive income before reclassifications			366	532
Amount reclassified from accumulated other comprehensive income			699	1,153
Other comprehensive income/(loss)	363	605	1,066	1,685
Balance at the End of the Period	(22,169)	(27,652)	(22,169)	(27,652)
Net Unrealized Gains/(Losses) on Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) (net of tax)
Balance at the Beginning of the Period			(18)	(456)
Other comprehensive income before reclassifications	147	(26)	191	114
Amount reclassified from accumulated other comprehensive income			14	187
Other comprehensive income/(loss)	161	42	205	301
Balance at the End of the Period	187	(155)	187	(155)
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) (net of tax)
Balance at the Beginning of the Period			(3,362)	(4,665)
Other comprehensive income before reclassifications			172	393
Other comprehensive income/(loss)	(134)	72	172	393
Balance at the End of the Period	(3,189)	(4,271)	(3,189)	(4,271)
Net Change Retirement-Related Benefit Plans
Accumulated Other Comprehensive Income (Loss) (net of tax)
Balance at the Beginning of the Period			(19,854)	(24,216)
Other comprehensive income before reclassifications			3	25
Amount reclassified from accumulated other comprehensive income			686	966
Other comprehensive income/(loss)	336	491	689	991
Balance at the End of the Period	(19,165)	(23,225)	(19,165)	(23,225)
Net Unrealized Gains/(Losses) on Available-For-Sale Securities
Accumulated Other Comprehensive Income (Loss) (net of tax)
Balance at the Beginning of the Period			(1)	0
Other comprehensive income before reclassifications	0	0	0	0
Other comprehensive income/(loss)	0	0	0	0
Balance at the End of the Period	$ (1)	$ (1)	$ (1)	$ (1)

Derivative Financial Instrume_3

Derivative Financial Instruments - Offsetting (Details) - USD ($) shares in Millions, $ in Millions		6 Months Ended
	May 19, 2022	Jun. 30, 2022	Dec. 31, 2021
Derivative Financial Instruments
Potential reduction in net position of total derivative assets		$ 187	$ 60
Potential reduction in net position of total derivative liabilities		187	60
Cash collateral rehypothecated		12	2
Numbers shares transferred	22.3
Fair value of the swap		$ 88
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration]		Other accrued expenses and liabilities
Other (income) and expense
Derivative Financial Instruments
Unrealized loss		$ 88
Other receivables
Derivative Financial Instruments
Right to reclaim cash collateral		52	2
Accounts payable
Derivative Financial Instruments
Obligation to return cash collateral		$ 14	$ 38

Derivative Financial Instrume_4

Derivative Financial Instruments - Hedging Programs (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Instruments in net investment hedges
Derivative Financial Instruments
Notional amount	$ 4,700	$ 6,800
Average remaining maturity	1 month 6 days	1 month 6 days
Interest rate swaps | Derivative instruments in fair value hedges
Derivative Financial Instruments
Notional amount	$ 4,400	$ 400
Average remaining maturity	5 years 4 months 24 days	1 year 2 months 12 days
Interest rate swaps | Derivative instruments in cash flow hedges
Derivative Financial Instruments
Notional amount	$ 0	$ 0
Foreign exchange contracts | Not designated as hedging instruments - economic hedges
Derivative Financial Instruments
Notional amount	$ 5,600	6,800
Foreign exchange contracts | Not designated as hedging instruments - economic hedges | Maximum
Derivative Financial Instruments
Term of contract	1 year
Foreign exchange contracts | Instruments in net investment hedges
Derivative Financial Instruments
Notional amount	$ 14,000	14,100
Foreign exchange forward contracts | Derivative instruments in cash flow hedges
Derivative Financial Instruments
Maximum length of time hedged	2 years
Notional amount	$ 8,200	$ 7,200
Average remaining maturity	7 months 6 days	7 months 6 days
Net gains (losses) before taxes in accumulated other comprehensive income/(loss), cash flow hedges	$ 537	$ 315
Gains (losses) expected to be reclassified to net income within the next 12 months	$ 471
Cross-currency swaps | Derivative instruments in cash flow hedges
Derivative Financial Instruments
Maximum length of time hedged	6 years
Notional amount	$ 3,000	2,000
Net gains (losses) before taxes in accumulated other comprehensive income/(loss), cash flow hedges	(128)	$ (174)
Gains (losses) expected to be reclassified to net income within the next 12 months	$ 31
Forward-starting interest rate swaps | Derivative instruments in cash flow hedges
Derivative Financial Instruments
Number of derivative instruments outstanding	0	0
Net gains (losses) before taxes in accumulated other comprehensive income/(loss), cash flow hedges	$ (148)	$ (157)
Gains (losses) expected to be reclassified to net income within the next 12 months	(18)
Cash-settled swap
Derivative Financial Instruments
Notional amount	311
Equity contracts hedging employee compensation obligations | Not designated as hedging instruments - economic hedges
Derivative Financial Instruments
Notional amount	$ 1,100	$ 1,400

Derivative Financial Instrume_5

Derivative Financial Instruments - Cumulative Basis Adjustments for Fair Value Hedges (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
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	$ (224)	$ (227)
Cumulative hedging adjustments included in the carrying amount-assets/(liabilities)	1	(2)
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	(4,366)	(508)
Cumulative hedging adjustments included in the carrying amount-assets/(liabilities)	(188)	(309)
Hedging adjustments on discontinued hedging relationships	$ (276)	$ (302)

Derivative Financial Instrume_6

Derivative Financial Instruments - Effect of Hedge Activity on Income and Expense (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021		Jun. 30, 2022	Jun. 30, 2021
Derivative Instruments, Gain (Loss)
Cost	$ 7,246	$ 6,366	[1]	$ 14,107	$ 12,526	[1]
SG&A expense	4,855	4,849	[1]	9,452	9,536	[1]
Other (income) and expense	(81)	302	[1]	166	647	[1]
Interest expense	297	281	[1]	607	561	[1]
Cost of services
Derivative Instruments, Gain (Loss)
Cost	5,399	4,720		10,747	9,364
Gains/(losses) of total hedge activity	13	7		28	21
Cost of sales
Derivative Instruments, Gain (Loss)
Cost	1,750	1,499		3,165	2,878
Gains/(losses) of total hedge activity	23	(10)		35	(32)
Cost of financing
Derivative Instruments, Gain (Loss)
Cost	96	146		194	283
Gains/(losses) of total hedge activity	1	0		(1)	2
SG&A expense
Derivative Instruments, Gain (Loss)
SG&A expense	4,855	4,849		9,452	9,536
Gains/(losses) of total hedge activity	(152)	67		(223)	101
Other (income) and expenses
Derivative Instruments, Gain (Loss)
Other (income) and expense	(81)	302		166	647
Gains/(losses) of total hedge activity	(439)	(79)		(541)	(239)
Interest expense
Derivative Instruments, Gain (Loss)
Interest expense	297	281		607	561
Gains/(losses) of total hedge activity	$ 3	$ (1)		$ (3)	$ 4
[1] Reclassified to reflect discontinued operations presentation.

Derivative Financial Instrume_7

Derivative Financial Instruments - Gains and Losses (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Derivative Instruments, Gain (Loss)
Gain (loss) recognized in earnings on derivatives	$ (645)	$ 54	$ (821)	$ 57
Gain (loss) recognized in earnings attributable to risk being hedged	104	15	123	40
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Recognized in OCI	1,579	(211)	2,180	883
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Reclassified from AOCI	(16)	(90)	(16)	(251)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Amounts Excluded from Effectiveness Testing	6	5	9	11
Foreign exchange contracts | Derivative instruments in cash flow hedges
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Recognized in OCI	200	(34)	260	153
Foreign exchange contracts | Instruments in net investment hedges
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Recognized in OCI	1,379	(177)	1,920	730
Foreign exchange contracts | Not designated as hedging instruments - economic hedges
Derivative Instruments, Gain (Loss)
Gain (loss) recognized in earnings on derivatives	$ (313)	$ (30)	$ (409)	$ (74)
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other (income) and expense	Other (income) and expense	Other (income) and expense	Other (income) and expense
Equity contracts | Not designated as hedging instruments - economic hedges
Derivative Instruments, Gain (Loss)
Gain (loss) recognized in earnings on derivatives		$ 83		$ 133
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]		Selling, general and administrative		Selling, general and administrative
Cost of services | Foreign exchange contracts | Derivative instruments in cash flow hedges
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Reclassified from AOCI	$ 13	$ 7	$ 28	$ 21
Cost of sales | Foreign exchange contracts | Derivative instruments in cash flow hedges
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Reclassified from AOCI	23	(10)	35	(32)
Cost of financing | Interest rate contracts | Derivative instruments in fair value hedges
Derivative Instruments, Gain (Loss)
Gain (loss) recognized in earnings on derivatives	(17)	0	(18)	0
Gain (loss) recognized in earnings attributable to risk being hedged	23	4	26	11
Cost of financing | Interest rate contracts | Derivative instruments in cash flow hedges
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 | Derivative instruments in cash flow hedges
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Reclassified from AOCI	(5)	(5)	(10)	(9)
Cost of financing | Foreign exchange contracts | Instruments in net investment hedges
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Amounts Excluded from Effectiveness Testing	1	1	2	3
SG&A expense | Foreign exchange contracts | Derivative instruments in cash flow hedges
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Reclassified from AOCI	14	(16)	20	(31)
SG&A expense | Equity contracts | Not designated as hedging instruments - economic hedges
Derivative Instruments, Gain (Loss)
Gain (loss) recognized in earnings on derivatives	(166)		(243)
Other (income) and expenses | Foreign exchange contracts | Derivative instruments in cash flow hedges
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Reclassified from AOCI	(38)	(49)	(45)	(165)
Other (income) and expenses | Equity contracts | Not designated as hedging instruments - economic hedges
Derivative Instruments, Gain (Loss)
Gain (loss) recognized in earnings on derivatives	(88)		(88)
Interest expense | Interest rate contracts | Derivative instruments in fair value hedges
Derivative Instruments, Gain (Loss)
Gain (loss) recognized in earnings on derivatives	(61)	0	(65)	(1)
Gain (loss) recognized in earnings attributable to risk being hedged	81	11	97	29
Interest expense | Interest rate contracts | Derivative instruments in cash flow hedges
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Reclassified from AOCI	(3)	(3)	(7)	(6)
Interest expense | Foreign exchange contracts | Derivative instruments in cash flow hedges
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Reclassified from AOCI	(19)	(12)	(36)	(25)
Interest expense | Foreign exchange contracts | Instruments in net investment hedges
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Amounts Excluded from Effectiveness Testing	$ 5	$ 4	$ 7	$ 8

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Stock-based compensation cost, allocation of recognized costs
Pre-tax stock-based compensation cost	$ 254	$ 225	$ 488	$ 423
Income tax benefits	(82)	(64)	(139)	(112)
Net stock-based compensation cost	172	162	348	311
Pre-tax stock-based compensation cost increase (decrease)	29		64
Unrecognized compensation cost related to non-vested awards	1,400		$ 1,400
Unrecognized compensation cost related to non-vested awards, weighted average period of recognition			2 years 6 months
Employee Stock Purchase Plan
Stock-based compensation cost, allocation of recognized costs
Pre-tax stock-based compensation cost increase (decrease)	14		$ 14
Performance Share Units
Stock-based compensation cost, allocation of recognized costs
Pre-tax stock-based compensation cost increase (decrease)	8		10
Restricted Stock Units
Stock-based compensation cost, allocation of recognized costs
Pre-tax stock-based compensation cost increase (decrease)	2		29
Stock Options
Stock-based compensation cost, allocation of recognized costs
Pre-tax stock-based compensation cost increase (decrease)	5		10
Cost
Stock-based compensation cost, allocation of recognized costs
Pre-tax stock-based compensation cost	43	35	84	68
SG&A expense
Stock-based compensation cost, allocation of recognized costs
Pre-tax stock-based compensation cost	153	141	289	256
Research, development and engineering
Stock-based compensation cost, allocation of recognized costs
Pre-tax stock-based compensation cost	$ 58	$ 50	$ 115	$ 99

Stock-Based Compensation - ESPP

Stock-Based Compensation - ESPP (Details)		3 Months Ended
	Apr. 01, 2022	Mar. 31, 2022
Employee Stock Purchase Plan
Stock-Based Compensation
Discount on purchase of common stock (as a percent)	15%	5%

Retirement-Related Benefits - A

Retirement-Related Benefits - All Retirement Plans Cost (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Retirement-Related Benefits
Defined benefit and contribution pension plans - cost	$ 456	$ 600	$ 934	$ 1,219
Nonpension postretirement plans - cost	33	44	66	88
Total	$ 489	$ 644	$ 1,000	$ 1,307
Year-to-year percent change, defined benefit and contribution pension plans cost (as a percent)	(24.00%)		(23.40%)
Year-to-year percent change, nonpension postretirement plans cost (as a percent)	(25.00%)		(25.00%)
Year-to-year percent change, total (as a percent)	(24.10%)		(23.50%)

Retirement-Related Benefits - C

Retirement-Related Benefits - Cost of Pension Plans (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Cost/(Income) of Pension Plans
Total defined benefit and contribution pension plans cost recognized in the Consolidated Income Statement	$ 456	$ 600	$ 934	$ 1,219
U.S. | Pension Plans
Cost/(Income) of Pension Plans
Interest cost	$ 302	$ 277	$ 603	$ 555
Interest cost - income statement location	Other (income) and expense	Other (income) and expense	Other (income) and expense	Other (income) and expense
Expected return on plan assets	$ (475)	$ (451)	$ (950)	$ (901)
Expected return on plan assets - income statement location	Other (income) and expense	Other (income) and expense	Other (income) and expense	Other (income) and expense
Amortization of prior service costs/(credits)	$ 2	$ 4	$ 4	$ 8
Amortization of prior service costs/(credits) - income statement location	Other (income) and expense	Other (income) and expense	Other (income) and expense	Other (income) and expense
Recognized actuarial losses	$ 179	$ 249	$ 359	$ 498
Recognized actuarial losses - income statement location	Other (income) and expense	Other (income) and expense	Other (income) and expense	Other (income) and expense
Curtailments and settlements - income statement location	Other (income) and expense	Other (income) and expense	Other (income) and expense	Other (income) and expense
Other costs/(credits) - income statement location	Other (income) and expense	Other (income) and expense	Other (income) and expense	Other (income) and expense
Total net periodic pension / nonpension (income)/cost of defined benefit plans	$ 8	$ 80	$ 15	$ 160
Cost of defined contribution plans	141	151	282	302
Total defined benefit and contribution pension plans cost recognized in the Consolidated Income Statement	149	231	298	462
U.S. | Nonpension Postretirement Plans
Cost/(Income) of Pension Plans
Service cost	1	2	2	4
Interest cost	$ 18	$ 16	$ 37	$ 32
Interest cost - income statement location	Other (income) and expense	Other (income) and expense	Other (income) and expense	Other (income) and expense
Expected return on plan assets - income statement location	Other (income) and expense	Other (income) and expense	Other (income) and expense	Other (income) and expense
Amortization of prior service costs/(credits)	$ 1	$ 1	$ 2	$ 2
Amortization of prior service costs/(credits) - income statement location	Other (income) and expense	Other (income) and expense	Other (income) and expense	Other (income) and expense
Recognized actuarial losses	$ 2	$ 13	$ 4	$ 26
Recognized actuarial losses - income statement location	Other (income) and expense	Other (income) and expense	Other (income) and expense	Other (income) and expense
Curtailments and settlements - income statement location	Other (income) and expense	Other (income) and expense	Other (income) and expense	Other (income) and expense
Total net periodic pension / nonpension (income)/cost of defined benefit plans	$ 23	$ 32	$ 46	$ 64
Non-US | Pension Plans
Cost/(Income) of Pension Plans
Service cost	59	68	123	133
Interest cost	$ 131	$ 108	$ 270	$ 216
Interest cost - income statement location	Other (income) and expense	Other (income) and expense	Other (income) and expense	Other (income) and expense
Expected return on plan assets	$ (259)	$ (279)	$ (532)	$ (559)
Expected return on plan assets - income statement location	Other (income) and expense	Other (income) and expense	Other (income) and expense	Other (income) and expense
Amortization of prior service costs/(credits)	$ 3	$ (5)	$ 7	$ (7)
Amortization of prior service costs/(credits) - income statement location	Other (income) and expense	Other (income) and expense	Other (income) and expense	Other (income) and expense
Recognized actuarial losses	$ 260	$ 352	$ 537	$ 708
Recognized actuarial losses - income statement location	Other (income) and expense	Other (income) and expense	Other (income) and expense	Other (income) and expense
Curtailments and settlements	$ 11	$ 16	$ 19	$ 34
Curtailments and settlements - income statement location	Other (income) and expense	Other (income) and expense	Other (income) and expense	Other (income) and expense
Multi-employer plans	$ 3	$ 5	$ 7	$ 11
Other costs/(credits)	$ 6	$ 3	$ 15	$ 15
Other costs/(credits) - income statement location	Other (income) and expense	Other (income) and expense	Other (income) and expense	Other (income) and expense
Total net periodic pension / nonpension (income)/cost of defined benefit plans	$ 215	$ 268	$ 446	$ 551
Cost of defined contribution plans	92	101	190	206
Total defined benefit and contribution pension plans cost recognized in the Consolidated Income Statement	307	369	636	757
Non-US | Nonpension Postretirement Plans
Cost/(Income) of Pension Plans
Service cost	1	1	2	2
Interest cost	$ 9	$ 8	$ 18	$ 16
Interest cost - income statement location	Other (income) and expense	Other (income) and expense	Other (income) and expense	Other (income) and expense
Expected return on plan assets	$ (1)	$ (1)	$ (1)	$ (2)
Expected return on plan assets - income statement location	Other (income) and expense	Other (income) and expense	Other (income) and expense	Other (income) and expense
Amortization of prior service costs/(credits)	$ 0	$ 0	$ 0	$ 0
Amortization of prior service costs/(credits) - income statement location	Other (income) and expense	Other (income) and expense	Other (income) and expense	Other (income) and expense
Recognized actuarial losses	$ 1	$ 4	$ 2	$ 8
Recognized actuarial losses - income statement location	Other (income) and expense	Other (income) and expense	Other (income) and expense	Other (income) and expense
Curtailments and settlements		$ 0		$ 0
Curtailments and settlements - income statement location	Other (income) and expense	Other (income) and expense	Other (income) and expense	Other (income) and expense
Total net periodic pension / nonpension (income)/cost of defined benefit plans	$ 10	$ 13	$ 20	$ 25

Retirement-Related Benefits -_2

Retirement-Related Benefits - Contributions (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Retirement-Related Benefits
Total plan contributions	$ 245	$ 233
U.S. and Non-U.S. nonpension postretirement benefit plans
Retirement-Related Benefits
Total plan contributions	202	191
Non-U.S. DB plans and multi-employer plans
Retirement-Related Benefits
Total plan contributions	43	42
Pension Plans, Including Multi-employer Plans
Retirement-Related Benefits
Contributions by employer - Noncash	261	249
Nonpension Postretirement Plans | Non-U.S. DB plans
Retirement-Related Benefits
Contributions by employer - Noncash	$ 182	$ 235

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions			3 Months Ended
	Jul. 25, 2022	Jul. 20, 2022	Mar. 31, 2022
U.S dollar. fixed rate notes
Subsequent Events
Aggregate amount of debt issued			$ 1,800
U.S dollar. fixed rate notes | Minimum
Subsequent Events
Term of debt instrument			5 years
Coupon rate (as a percent)			2.20%
U.S dollar. fixed rate notes | Maximum
Subsequent Events
Term of debt instrument			30 years
Coupon rate (as a percent)			3.43%
Subsequent event
Subsequent Events
Dividend declared, date	Jul. 25, 2022
Dividend declared (in dollars per share)	$ 1.65
Dividend payable, date	Sep. 10, 2022
Shareholders of record, date	Aug. 10, 2022
Subsequent event | U.S dollar. fixed rate notes
Subsequent Events
Aggregate amount of debt issued		$ 3,250
Subsequent event | U.S dollar. fixed rate notes | Minimum
Subsequent Events
Term of debt instrument		3 years
Coupon rate (as a percent)		4%
Subsequent event | U.S dollar. fixed rate notes | Maximum
Subsequent Events
Term of debt instrument		30 years
Coupon rate (as a percent)		4.90%