International Business Machines (IBM) 10-Q 25 Apr 23 2023 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Mar. 31, 2023 shares
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2023
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	908,045,414
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
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 | 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 | 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 | 3.375% Notes due 2027
Document Information [Line Items]
Title of 12(b) Security	3.375%  Notes due 2027
Trading Symbol	IBM 27F
Security Exchange Name	NYSE
New York Stock Exchange | 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 30A
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 | 3.625% Notes due 2031
Document Information [Line Items]
Title of 12(b) Security	3.625%  Notes due 2031
Trading Symbol	IBM 31B
Security Exchange Name	NYSE
New York Stock Exchange | 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 | 3.750% Notes due 2035
Document Information [Line Items]
Title of 12(b) Security	3.750% Notes due 2035
Trading Symbol	IBM 35
Security Exchange Name	NYSE
New York Stock Exchange | 4.875% Notes due 2038
Document Information [Line Items]
Title of 12(b) Security	4.875% Notes due 2038
Trading Symbol	IBM 38
Security Exchange Name	NYSE
New York Stock Exchange | 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 | 4.000% Notes due 2043
Document Information [Line Items]
Title of 12(b) Security	4.000% Notes due 2043
Trading Symbol	IBM 43
Security Exchange Name	NYSE
New York Stock Exchange | 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 | 5.875% Debentures due 2032
Document Information [Line Items]
Title of 12(b) Security	5.875% Debentures due 2032
Trading Symbol	IBM 32D
Security Exchange Name	NYSE
New York Stock Exchange | 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
	Mar. 31, 2023	Mar. 31, 2022
Revenue	$ 14,252	$ 14,197
Cost	6,743	6,862
Gross profit	7,509	7,335
Expense and other (income)
Selling, general and administrative	4,853	4,597
Research, development and engineering	1,655	1,679
Intellectual property and custom development income	(180)	(121)
Other (income) and expense	(245)	246
Interest expense	367	311
Total expense and other (income)	6,451	6,712
Income from continuing operations before income taxes	1,058	623
Provision for/(benefit from) income taxes	124	(39)
Income from continuing operations	934	662
Income/(loss) from discontinued operations, net of tax	(7)	71
Net income	$ 927	$ 733
Assuming dilution
Continuing operations (in dollars per share)	$ 1.02	$ 0.73
Discontinued operations (in dollars per share)	(0.01)	0.08
Total (in dollars per share)	1.01	0.81
Basic
Continuing operations (in dollars per share)	1.03	0.74
Discontinued operations (in dollars per share)	(0.01)	0.08
Total (in dollars per share)	$ 1.02	$ 0.82
Weighted-average number of common shares outstanding
Assuming dilution (in shares)	917,845,279	909,226,136
Basic (in shares)	907,526,887	899,316,026
Services
Revenue	$ 7,524	$ 7,703
Cost	5,310	5,349
Sales
Revenue	6,532	6,339
Cost	1,322	1,415
Financing.
Revenue	196	155
Cost	$ 110	$ 98

CONSOLIDATED STATEMENT OF COMPR

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Net income	$ 927	$ 733
Other comprehensive income/(loss), before tax
Foreign currency translation adjustments	(87)	442
Net changes related to available-for-sale securities
Unrealized gains/(losses) arising during the period	15	0
Total net changes related to available-for-sale securities	15	0
Unrealized gains/(losses) on cash flow hedges
Unrealized gains/(losses) arising during the period	(29)	60
Reclassification of (gains)/losses to net income	(122)	(1)
Total unrealized gains/(losses) on cash flow hedges	(151)	59
Retirement-related benefit plans
Prior service costs/(credits)		(5)
Net (losses)/gains arising during the period	2	9
Curtailments and settlements	(1)	8
Amortization of prior service (credits)/costs	(2)	7
Amortization of net (gains)/losses	131	468
Total retirement-related benefit plans	130	486
Other comprehensive income/(loss), before tax	(93)	987
Income tax (expense)/benefit related to items of other comprehensive income	53	(285)
Other comprehensive income/(loss), net of tax	(40)	703
Total comprehensive income	$ 888	$ 1,436

CONSOLIDATED BALANCE SHEET

CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 9,337	$ 7,886
Restricted cash	198	103
Marketable securities	8,057	852
Notes and accounts receivable-trade (net of allowances of $250 in 2023 and $233 in 2022)	5,757	6,541
Short-term financing receivables, held for investment (net of allowances of $141 in 2023 and $145 in 2022)	6,057	6,851
Short-term financing receivables, held for sale	605	939
Other accounts receivable (net of allowances of $102 in 2023 and $89 in 2022)	812	817
Inventory, at lower of average cost or net realizable value:
Finished goods	199	158
Work in process and raw materials	1,404	1,394
Total inventory	1,603	1,552
Deferred costs	1,055	967
Prepaid expenses and other current assets	2,501	2,611
Total current assets	35,982	29,118
Property, plant and equipment	18,761	18,695
Less: Accumulated depreciation	13,417	13,361
Property, plant and equipment - net	5,344	5,334
Operating right-of-use assets-net	2,789	2,878
Long-term financing receivables (net of allowances of $23 in 2023 and $28 in 2022)	5,065	5,806
Prepaid pension assets	8,487	8,236
Deferred costs	846	866
Deferred taxes	6,419	6,256
Goodwill	56,193	55,949
Intangible assets-net	10,905	11,184
Investments and sundry assets	1,607	1,617
Total assets	133,637	127,243
Current liabilities
Taxes	1,650	2,196
Short-term debt	4,887	4,760
Accounts payable	3,728	4,051
Compensation and benefits	2,772	3,481
Deferred income	13,220	12,032
Operating lease liabilities	869	874
Other accrued expenses and liabilities	3,866	4,111
Total current liabilities	30,993	31,505
Long-term debt	53,826	46,189
Retirement and nonpension postretirement benefit obligations	9,509	9,596
Deferred income	3,443	3,499
Operating lease liabilities	2,094	2,190
Other liabilities	12,099	12,243
Total liabilities	111,964	105,222
IBM stockholders' equity
Common stock, par value $.20 per share, and additional paid-in capital Shares authorized: 4,687,500,000 Shares issued (2023-2,259,497,847; 2022-2,257,116,920)	58,675	58,343
Retained earnings	149,253	149,825
Treasury stock, at cost (shares: 2023-1,351,452,434; 2022-1,351,024,943)	(169,544)	(169,484)
Accumulated other comprehensive income/(loss)	(16,780)	(16,740)
Total IBM stockholders' equity	21,604	21,944
Noncontrolling interests	68	77
Total equity	21,672	22,021
Total liabilities and equity	$ 133,637	$ 127,243

CONSOLIDATED BALANCE SHEET (Par

CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
CONSOLIDATED BALANCE SHEET
Notes and accounts receivable - trade, allowances	$ 250	$ 233
Short-term financing receivables - held for investment, allowances	141	145
Other accounts receivable, allowances	102	89
Long-term financing receivables, allowances	$ 23	$ 28
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)	2,259,497,847	2,257,116,920
Treasury stock, Shares (in shares)	1,351,452,434	1,351,024,943

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities
Net income		$ 927	$ 733	[1]
Adjustments to reconcile net income to cash provided by operating activities
Depreciation		527	631	[1]
Amortization of intangibles		547	625	[1]
Stock-based compensation		268	234	[1]
Net (gain)/loss on asset sales and other		(55)	(51)	[1]
Changes in operating assets and liabilities, net of acquisitions/divestitures		1,559	1,076	[1]
Net cash provided by operating activities		3,774	3,248	[1]
Cash flows from investing activities
Payments for property, plant and equipment		(300)	(281)	[1]
Proceeds from disposition of property, plant and equipment		11	72	[1]
Investment in software		(168)	(169)	[1]
Acquisition of businesses, net of cash acquired		(22)	(698)	[1]
Divestiture of businesses, net of cash transferred	[1]		61
Purchases of marketable securities and other investments		(8,531)	(1,025)	[1]
Proceeds from disposition of marketable securities and other investments		1,050	682	[1]
Net cash provided by/(used in) investing activities		(7,960)	(1,358)	[1]
Cash flows from financing activities
Proceeds from new debt		9,432	4,084	[1]
Payments to settle debt		(2,125)	(1,129)	[1]
Short-term borrowings/(repayments) less than 90 days - net		(3)	(8)	[1]
Common stock repurchases for tax withholdings		(96)	(80)	[1]
Financing - other		(3)	(15)	[1]
Cash dividends paid		(1,497)	(1,475)	[1]
Net cash provided by/(used in) financing activities		5,708	1,377	[1]
Effect of exchange rate changes on cash, cash equivalents and restricted cash		24	(5)	[1]
Net change in cash, cash equivalents and restricted cash		1,547	3,263	[1]
Cash, cash equivalents and restricted cash at January 1		7,988	6,957	[1]
Cash, cash equivalents and restricted cash at March 31		$ 9,535	$ 10,219	[1]
[1] Includes immaterial cash flows from discontinued operations.

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, 2021	$ 18,901	$ 57,319	$ 154,209	$ (169,392)	$ (23,234)	$ 95	$ 18,996
Net income/(loss) plus other comprehensive income/(loss):
Net income	733		733				733	[1]
Other comprehensive income/(loss)	703				703		703
Total comprehensive income/(loss)	1,436						1,436
Cash dividends paid - common stock	(1,475)		(1,475)				(1,475)
Common stock issued under employee plans	221	221					221
Purchases and sales of treasury stock under employee plans - net	(34)		(3)	(30)			(34)
Other equity	0	63	(63)				0
Changes in noncontrolling interests						(33)	(33)
Balance at the End of the Period at Mar. 31, 2022	19,050	57,603	153,401	(169,422)	(22,532)	62	19,112
Balance at the Beginning of the Period at Dec. 31, 2022	21,944	58,343	149,825	(169,484)	(16,740)	77	22,021
Net income/(loss) plus other comprehensive income/(loss):
Net income	927		927				927
Other comprehensive income/(loss)	(40)				(40)		(40)
Total comprehensive income/(loss)	888						888
Cash dividends paid - common stock	(1,497)		(1,497)				(1,497)
Common stock issued under employee plans	332	332					332
Purchases and sales of treasury stock under employee plans - net	(62)		(2)	(60)			(62)
Changes in noncontrolling interests						(9)	(9)
Balance at the End of the Period at Mar. 31, 2023	$ 21,604	$ 58,675	$ 149,253	$ (169,544)	$ (16,780)	$ 68	$ 21,672
[1] Includes immaterial cash flows from discontinued operations.

CONSOLIDATED STATEMENT OF EQU_2

CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CONSOLIDATED STATEMENT OF EQUITY
Cash dividend per common share	$ 1.65	$ 1.64
Common stock issued under employee plans (in shares)	2,380,928	1,562,135
Purchases of treasury stock under employee plans (in shares)	711,325	595,710
Sales of treasury stock under employee plans (in shares)	283,834	400,300

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2023
Basis of Presentation
Basis of Presentation	1. Basis of Presentation: The accompanying Consolidated Financial Statements and footnotes of the International Business Machines Corporation (IBM or the company) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The financial statements and footnotes are unaudited. In the opinion of the company’s management, these statements include all adjustments, which are only of a normal recurring nature, necessary to present a fair statement of the company’s results of operations, financial position and cash flows. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amount of assets, liabilities, revenue, costs, expenses and other comprehensive income/(loss) that are reported in the Consolidated Financial Statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events, historical experience, actions that the company may undertake in the future and on various other assumptions that are believed to be reasonable under the circumstances. As a result, actual results may be different from these estimates. In the fourth quarter of 2022, the company completed its annual assessment of the useful lives of its property, plant and equipment. Due to advances in technology, the company determined it should increase the estimated useful lives of its server and network equipment from five three ​ For the three months ended March 31, 2023, the company recorded a provision for income taxes of ​ Noncontrolling interest amounts of $4.6 million and $4.9 million, net of tax, for the three months ended March 31, 2023 and 2022, respectively, are included as a reduction within other (income) and expense in the Consolidated Income Statement. The company has supplier finance programs with third-party financial institutions where the company agrees to pay the financial institutions the stated amounts of invoices from participating suppliers on the originally invoiced maturity date, which have an average term of 90 days. The financial institutions offer earlier payment of the invoices at the sole discretion of the supplier for a discounted amount. The company does not provide secured legal assets or other forms of guarantees under the arrangements. The company is not a party to the arrangement between its suppliers and the financial institutions. These obligations are recognized as accounts payable in the Consolidated Balance Sheet. The obligations outstanding under these programs at March 31, 2023 and December 31, 2022 were $113 million and $60 million, respectively. Interim results are not necessarily indicative of financial results for a full year. The information included in this Form 10-Q should be read in conjunction with the company’s 2022 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.

Accounting Changes

Accounting Changes	3 Months Ended
	Mar. 31, 2023
Accounting Changes
Accounting Changes	2. Accounting Changes: Standards Implemented ​ Disclosures of Supplier Finance Program Obligations 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 ​

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2023
Revenue Recognition
Revenue Recognition	3. Revenue Recognition: Disaggregation of Revenue The following tables provide details of revenue by major products/service offerings and revenue by geography. Revenue by Major Products/Service Offerings ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ ​ For the three months ended March 31: ​ 2023 ​ 2022 Hybrid Platform & Solutions ​ $ 4,179 ​ $ 4,080 Transaction Processing ​ ​ 1,742 ​ ​ 1,692 Total Software ​ $ 5,921 ​ $ 5,772 Business Transformation ​ 2,283 ​ 2,255 Application Operations ​ 1,736 ​ 1,619 Technology Consulting ​ 943 ​ 955 Total Consulting ​ $ 4,962 ​ $ 4,829 Hybrid Infrastructure ​ 1,709 ​ 1,700 Infrastructure Support ​ 1,389 ​ 1,519 Total Infrastructure ​ $ 3,098 ​ $ 3,219 Financing* ​ 196 ​ 154 Other ​ 75 ​ 224 Total revenue ​ $ 14,252 ​ $ 14,197 * Contains lease and loan financing arrangements which are not subject to the guidance on revenue from contracts with customers. ​ ​ ​ ​ ​ ​ ​ Revenue by Geography ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ For the three months ended March 31: ​ 2023 ​ 2022 Americas ​ $ 7,078 ​ $ 7,056 Europe/Middle East/Africa ​ 4,331 ​ 4,231 Asia Pacific ​ 2,843 ​ 2,910 Total ​ $ 14,252 ​ $ 14,197 ​ 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 March 31, 2023, the aggregate amount of the transaction price allocated to RPO related to customer contracts that are unsatisfied or partially unsatisfied was $58 billion. Approximately 71 percent of the amount is expected to be recognized as revenue in the subsequent two years, approximately 27 percent in the subsequent three Revenue Recognized for Performance Obligations Satisfied (or Partially Satisfied) in Prior Periods For the three months ended March 31, 2023, revenue was reduced by $47 million 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 March 31, At December 31, (Dollars in millions) ​ 2023 ​ 2022 Notes and accounts receivable — ​ $ 5,757 ​ $ 6,541 Contract assets* ​ $ 461 ​ $ 464 Deferred income (current) ​ $ 13,220 ​ $ 12,032 Deferred income (noncurrent) ​ $ 3,443 ​ $ 3,499 * Included within prepaid expenses and other current assets in the Consolidated Balance Sheet. The amount of revenue recognized during the three months ended March 31, 2023 that was included within the deferred income balance at December 31, 2022 was $3.9 billion 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 three months ended March 31, 2023 and the year ended December 31, 2022. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ ​ ​ ​ January 1, 2023 ​ Additions / (Releases) ​ Write-offs ​ Foreign currency and other ​ March 31, 2023 $ 233 ​ $ 23 ​ $ (8) ​ $ 1 ​ $ 250 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ January 1, 2022 ​ Additions / (Releases) ​ Write-offs ​ Foreign currency and other ​ December 31, 2022 $ 218 ​ $ 59 ​ $ (31) ​ $ (14) ​ $ 233 ​ The contract assets allowance for expected credit losses was not material in any of the periods presented.

Segments

Segments	3 Months Ended
	Mar. 31, 2023
Segments
Segments	4. Segments: 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. 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 March 31, 2023: ​ ​ ​ ​ ​ ​ Revenue ​ $ 5,921 ​ $ 4,962 ​ $ 3,098 ​ $ 196 ​ $ 14,177 ​ Pre-tax income from continuing operations ​ $ 1,164 ​ $ 382 ​ $ 216 ​ $ 100 ​ $ 1,863 ​ Revenue year-to-year change ​ 2.6 % 2.8 % (3.7) % 27.3 % 1.5 % Pre-tax income year-to-year change ​ 2.7 % 9.6 % 8.5 % 19.6 % 5.5 % Pre-tax income margin ​ 19.7 % 7.7 % 7.0 % 51.3 % 13.1 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, 2022: ​ ​ ​ ​ ​ ​ Revenue ​ $ 5,772 ​ $ 4,829 ​ $ 3,219 ​ $ 154 ​ $ 13,973 ​ Pre-tax income from continuing operations ​ $ 1,134 ​ $ 348 ​ $ 199 ​ $ 84 ​ $ 1,766 ​ Pre-tax income margin ​ 19.7 % 7.2 % 6.2 % 54.6 % 12.6 % ​ Reconciliations to IBM as Reported: ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ ​ ​ For the three months ended March 31: ​ 2023 ​ 2022 ​ Revenue: ​ ​ Total reportable segments ​ $ 14,177 ​ $ 13,973 ​ Other ‒ ​ 0 ​ 154 ​ Other revenue ​ 75 ​ 70 ​ Total consolidated revenue ​ $ 14,252 ​ $ 14,197 ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-tax income/(loss) from continuing operations: ​ ​ ​ Total reportable segments ​ $ 1,863 ​ $ 1,766 ​ Amortization of acquired intangible assets ​ (392) ​ (461) ​ Acquisition-related (charges)/income ​ (3) ​ (7) ​ Non-operating retirement-related (costs)/income ​ 5 ​ (202) ​ Kyndryl-related impacts ​ ​ — ​ (222) * Workforce rebalancing charges** ​ ​ (259) ​ ​ — ​ Other ‒ ​ (4) ​ (52) ​ Unallocated corporate amounts and other ​ (151) ​ (199) È Total pre-tax income from continuing operations ​ $ 1,058 ​ $ 623 ​ * Unrealized loss on Kyndryl retained shares. See note 5, “Acquisitions & Divestitures,” for additional information. ** Beginning in the first quarter of 2023, the company updated its measure of segment pre-tax income, consistent with its management system, to no longer allocate workforce rebalancing charges to its segments. Workforce rebalancing charges in the first quarter of 2022 of $5 million were included in the segments. È Recast to conform to 2023 presentation. ​

Acquisitions & Divestitures

Acquisitions & Divestitures	3 Months Ended
	Mar. 31, 2023
Acquisitions & Divestitures
Acquisitions & Divestitures	5. Acquisitions & Divestitures: Acquisitions Purchase price consideration for all acquisitions was paid primarily in cash. All acquisitions, except 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 three months ended March 31, 2023, the company completed three acquisitions at an aggregate cost of $226 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 StepZen, Inc. ​ Software ​ Developer of GraphQL to help build application programming interfaces (APIs) Uptake Technologies, Inc. ​ Software ​ Provider of advanced data analytics and content for heavy industries NS1 ​ Software ​ Leading provider of network automation SaaS solutions ​ At March 31, 2023, the remaining cash to be remitted by the company related to certain first-quarter 2023 acquisitions was $187 million. Of the amount outstanding, $173 million was recorded as restricted cash in the Consolidated Balance Sheet and is expected to be paid in 2023 with the remaining $14 million expected to be paid in the first quarter of 2024. The unremitted cash associated with these acquisitions is a non-cash investing activity for purposes of the company’s Consolidated Statement of Cash Flows as of March 31, 2023. ​ The following table reflects the purchase price related to these acquisitions and the resulting purchase price allocation as of March 31, 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortization ​ Total (Dollars in millions) Life (in years) ​ Acquisitions Current assets ​ ​ ​ $ 27 Property, plant and equipment/noncurrent assets ​ ​ ​ 9 Intangible assets: ​ ​ ​ ​ ​ Goodwill N/A ​ 141 Client relationships 7 ​ 34 Completed technology 5-7 ​ 35 Trademarks 2-5 ​ 2 Total assets acquired ​ ​ ​ $ 247 Current liabilities ​ ​ ​ 19 Noncurrent liabilities ​ ​ ​ 2 Total liabilities assumed ​ ​ ​ $ 21 Total purchase price ​ ​ ​ $ 226 N/A - not applicable ​ The goodwill generated was assigned to the Software segment and 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. It is expected that none of the goodwill will be deductible for tax purposes. The overall weighted-average useful life of the identified amortizable intangible assets acquired was 6.6 years. The identified intangible assets will be amortized on a straight-line basis over their useful lives, which approximates the pattern that the assets’ economic benefits are expected to be consumed over time. 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. ​ In April 2023, the company acquired Ahana Cloud, Inc. (Ahana), an expert in open-source-based, managed cloud-native data analytics solutions. Ahana will be integrated into the Software segment. At the date of issuance of the financial statements, the initial purchase accounting for Ahana was not complete. ​ Divestitures 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 common stock of Kyndryl Holdings, Inc. (Kyndryl) to IBM stockholders on a pro rata basis. The company retained 19.9 percent of the shares of Kyndryl common stock immediately following the separation. During 2022, the company fully disposed of its retained interest in Kyndryl common stock pursuant to exchange agreements with a third-party financial institution, which were completed within twelve months of separation. As of November 2, 2022, the company no longer held an ownership interest in Kyndryl. Loss from discontinued operations, net of tax for the three months ended March 31, 2023 of $7 million 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. Income from discontinued operations, net of tax for the three months ended March 31, 2022 of $71 million reflects the same drivers above and also reflects a gain on sale of a joint venture historically managed by Kyndryl, which transferred to Kyndryl in the first quarter of 2022 upon receiving regulatory approval.

Other (Income) and Expense

Other (Income) and Expense	3 Months Ended
	Mar. 31, 2023
Other (Income) and Expense.
Other (Income) and Expense	6. Other (Income) and Expense: Components of other (income) and expense are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31: 2023 2022 ​ Other (income) and expense: ​ ​ ​ Foreign currency transaction losses/(gains)* ​ $ 88 ​ $ (176) ​ (Gains)/losses on derivative instruments ​ (142) ​ 102 ​ Interest income ​ (170) ​ (17) ​ Net (gains)/losses from securities and investment assets ​ 5 ​ 218 ** Retirement-related costs/(income) ​ (5) ​ 202 ​ Other È ​ (22) ​ (83) ​ Total other (income) and expense ​ $ (245) ​ $ 246 ​ * The company uses financial hedging instruments to limit specific currency risks related to foreign currency-based transactions. The hedging program does not hedge 100 percent of currency exposures and defers, versus eliminates, the impact of currency. Refer to note 16, “Derivative Financial Instruments,” for additional information on foreign exchange risk. ** Includes an unrealized loss on Kyndryl retained shares of $222 million. See note 5, “Acquisitions & Divestitures,” for additional information. È Other primarily consists of (gains)/losses from divestitures and dispositions of land/buildings. ​

Earnings Per Share of Common St

Earnings Per Share of Common Stock	3 Months Ended
	Mar. 31, 2023
Earnings Per Share of Common Stock
Earnings Per Share of Common Stock	7. Earnings Per Share of Common Stock The following table provides the computation of basic and diluted earnings per share of common stock for the three months ended March 31, 2023 and 2022. ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions except per share amounts) ​ ​ ​ ​ ​ ​ For the three months ended March 31: 2023 2022 Number of shares on which basic earnings per share is calculated: ​ ​ Weighted-average shares outstanding during period ​ 907,526,887 ​ 899,316,026 Add — Incremental shares under stock-based compensation plans ​ 8,609,239 ​ 8,375,246 Add — Incremental shares associated with contingently issuable shares ​ 1,709,153 ​ 1,534,864 Number of shares on which diluted earnings per share is calculated ​ 917,845,279 ​ 909,226,136 ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ​ $ 934 ​ $ 662 Income/(loss) from discontinued operations, net of tax ​ (7) ​ 71 Net income on which basic earnings per share is calculated ​ $ 927 ​ $ 733 ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ​ $ 934 ​ $ 662 Net income applicable to contingently issuable shares ​ — ​ — Income from continuing operations on which diluted earnings per share is calculated ​ $ 934 ​ $ 662 Income/(loss) from discontinued operations, net of tax, on which diluted earnings per share is calculated ​ (7) ​ 71 Net income on which diluted earnings per share is calculated ​ $ 927 ​ $ 733 ​ ​ ​ ​ ​ ​ ​ Earnings/(loss) per share of common stock: ​ ​ Assuming dilution ​ ​ Continuing operations ​ $ 1.02 ​ $ 0.73 Discontinued operations ​ (0.01) ​ 0.08 Total ​ $ 1.01 ​ $ 0.81 Basic ​ ​ Continuing operations ​ $ 1.03 ​ $ 0.74 Discontinued operations ​ (0.01) ​ 0.08 Total ​ $ 1.02 ​ $ 0.82 ​ Stock options to purchase 960,929 shares and 1,163,321 shares were outstanding as of March 31, 2023 and 2022, 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	3 Months Ended
	Mar. 31, 2023
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 protect principal by investing in very liquid investment securities with highly rated counterparties. ​ The company’s standard practice is to hold all of its debt security investments classified as available-for-sale until maturity. No impairment for credit losses and no material non-credit impairments were recorded for the three months ended March 31, 2023 and 2022, 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 months ended March 31, 2023 and 2022, respectively. ​ The following table presents the company’s financial assets and financial liabilities that are measured at fair value on a recurring basis at March 31, 2023 and December 31, 2022. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value ​ ​ ​ ​ ​ ​ Hierarchy ​ At March 31, 2023 ​ At December 31, 2022 (Dollars in millions) Level Assets (5) Liabilities (6) Assets (5) Liabilities (6) Cash equivalents: (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Time deposits and certificates of deposit (2) ​ 2 ​ $ 3,896 ​ $ N/A ​ $ 3,712 ​ $ N/A Money market funds ​ 1 ​ ​ 817 ​ ​ N/A ​ ​ 306 ​ ​ N/A Total cash equivalents ​ ​ ​ $ 4,713 ​ $ N/A ​ $ 4,018 ​ $ N/A Equity investments ​ 1 ​ ​ 1 ​ ​ N/A ​ ​ — ​ ​ N/A Debt securities-current (2)(3) ​ 2 ​ ​ 8,057 ​ ​ N/A ​ ​ 852 ​ ​ N/A Debt securities-noncurrent (2)(4) ​ 2,3 ​ ​ 33 ​ ​ N/A ​ ​ 31 ​ ​ N/A Derivatives designated as hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts ​ 2 ​ ​ 19 ​ ​ 281 ​ ​ 3 ​ ​ 336 Foreign exchange contracts ​ 2 ​ ​ 111 ​ ​ 388 ​ ​ 184 ​ ​ 674 Derivatives not designated as hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign exchange contracts ​ 2 ​ ​ 10 ​ ​ 50 ​ ​ 42 ​ ​ 16 Equity contracts ​ 2 ​ ​ 28 ​ ​ 12 ​ ​ 49 ​ ​ 8 Total ​ ​ ​ $ 12,971 ​ $ 731 ​ $ 5,179 ​ $ 1,034 (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) U.S. treasury bills and term deposits that are reported within marketable securities in the Consolidated Balance Sheet. The March 31, 2023 balance includes proceeds from the first quarter 2023 debt issuances. See note 12, “Borrowings,” for additional information. (4) Includes immaterial activity related to private company investments reported within investments and sundry assets in the Consolidated Balance Sheet. (5) 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 March 31, 2023 were $145 million and $23 million, respectively, and at December 31, 2022 were $271 million and $7 million, respectively. (6) The gross balances of derivative liabilities contained within other accrued expenses and liabilities, and other liabilities in the Consolidated Balance Sheet at March 31, 2023 were $248 million and $483 million, respectively, and at December 31, 2022 were $546 million and $488 million, respectively. ​ N/A - not applicable ​ Financial Assets and Liabilities Not Measured at Fair Value ​ Short-Term Receivables and Payables ​ Short-term receivables (excluding the current portion of long-term receivables) and other investments are financial assets with carrying values that approximate fair value. Accounts payable, other accrued expenses and short-term debt (excluding the current portion of long-term debt) are financial liabilities with carrying values that approximate fair value. If measured at fair value in the financial statements, these financial instruments would be classified as Level 3 in the fair value hierarchy, except for short-term debt which would be classified as Level 2. ​ Loans and Long-Term Receivables ​ Fair values are based on discounted future cash flows using current interest rates offered for similar loans to clients with similar credit ratings for the same remaining maturities. At March 31, 2023 and December 31, 2022, 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 $53,826 million and $46,189 million, and the estimated fair value was $50,811 million and $42,514 million at March 31, 2023 and December 31, 2022, 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	3 Months Ended
	Mar. 31, 2023
Financing Receivables
Financing Receivables	9. Financing Receivables: Financing receivables primarily consist of client loan and installment payment receivables (loans), investment in sales-type and direct financing leases (collectively referred to as client financing receivables) and commercial financing receivables. Loans are provided primarily to clients to finance the purchase of hardware, software and services. Payment terms on these financing arrangements are 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 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 March 31, 2023: ​ (Loans) ​ Leases ​ Investment ​ Sale* ​ Total Financing receivables, gross ​ $ 7,558 ​ $ 3,853 ​ $ 250 ​ $ 605 ​ $ 12,265 Unearned income ​ ​ (410) ​ (363) ​ ​ — ​ ​ — ​ ​ (773) Unguaranteed residual value ​ ​ — ​ 400 ​ ​ — ​ ​ — ​ ​ 400 Amortized cost ​ $ 7,148 ​ $ 3,890 ​ $ 250 ​ $ 605 ​ $ 11,891 Allowance for credit losses ​ ​ (100) ​ (58) ​ ​ (6) ​ ​ — ​ ​ (164) Total financing receivables, net ​ $ 7,047 ​ $ 3,831 ​ $ 244 ​ $ 605 ​ $ 11,727 Current portion ​ $ 4,369 ​ $ 1,445 ​ $ 244 ​ $ 605 ​ $ 6,662 Noncurrent portion ​ $ 2,678 ​ $ 2,387 ​ $ — ​ $ — ​ $ 5,065 * The carrying value of the receivables classified as held for sale approximates fair value. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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, 2022: ​ (Loans) ​ Leases ​ Investment ​ Sale* ​ Total Financing receivables, gross ​ $ 8,875 ​ $ 4,023 ​ $ 299 ​ $ 939 ​ $ 14,136 Unearned income ​ ​ (439) ​ ​ (351) ​ ​ — ​ ​ — ​ ​ (790) Unguaranteed residual value ​ ​ — ​ 422 ​ ​ — ​ ​ — ​ ​ 422 Amortized cost ​ $ 8,437 ​ $ 4,094 ​ $ 299 ​ $ 939 ​ $ 13,769 Allowance for credit losses ​ ​ (108) ​ (60) ​ ​ (5) ​ ​ — ​ ​ (173) Total financing receivables, net ​ $ 8,329 ​ $ 4,034 ​ $ 293 ​ $ 939 ​ $ 13,596 Current portion ​ $ 5,073 ​ $ 1,485 ​ $ 293 ​ $ 939 ​ $ 7,790 Noncurrent portion ​ $ 3,256 ​ $ 2,549 ​ $ — ​ $ — ​ $ 5,806 * The carrying value of the receivables classified as held for sale approximates fair value. The company has a long-standing practice of taking mitigation actions, in certain circumstances, to transfer credit risk to third parties. These actions may include credit insurance, financial guarantees, nonrecourse secured borrowings, transfers of receivables recorded as true sales in accordance with accounting guidance or sales of equipment under operating lease. Sale of receivables arrangements are also utilized in the normal course of business as part of the company’s cash and liquidity management. ​ Financing receivables pledged as collateral for secured borrowings were $283 million and $349 million at March 31, 2023 and December 31, 2022, respectively. These borrowings are included in note 12, “Borrowings.” Transfer of Financial Assets The company has an existing agreement with a third-party investor to sell IBM short-term commercial financing receivables on a revolving basis. In addition, the company enters into agreements with third-party financial institutions to sell certain of its client financing receivables, including both loan and lease receivables, for cash proceeds. There were no material client financing receivables transferred for the three months ended March 31, 2023 and 2022. The following table presents the total amount of commercial financing receivables transferred. ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ For the three months ended March 31: ​ 2023 ​ 2022 Commercial financing receivables: ​ ​ ​ ​ ​ ​ Receivables transferred during the period ​ $ 2,233 ​ $ 1,989 Receivables uncollected at end of period* ​ $ 780 ​ $ 724 * Of the total amount of commercial financing receivables sold and derecognized from the Consolidated Balance Sheet, the amounts presented remained uncollected from the business partners as of March 31, 2023 and 2022. 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. The impacts to the Consolidated Income Statement, including fees and net loss associated with the transfer of commercial financing receivables for the three months ending March 31, 2023 and 2022 were $24 million and $11 million, respectively. ​ Financing Receivables by Portfolio Segment The following tables present the amortized cost basis for client financing receivables at March 31, 2023 and December 31, 2022, 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 March 31, 2023: ​ Americas ​ EMEA ​ Asia Pacific ​ Total Amortized cost $ 6,394 ​ $ 3,082 ​ $ 1,561 ​ $ 11,037 Allowance for credit losses: ​ ​ ​ ​ ​ ​ Beginning balance at January 1, 2023 ​ $ 88 ​ $ 60 ​ $ 20 ​ $ 168 Write-offs ​ ​ 0 ​ ​ 0 ​ ​ — ​ ​ 0 Recoveries ​ — ​ 0 ​ ​ 0 ​ ​ 0 Additions/(releases) ​ 0 ​ (13) ​ ​ (1) ​ ​ (13) Other* ​ 4 ​ 0 ​ ​ 0 ​ ​ 4 Ending balance at March 31, 2023 ​ $ 93 ​ $ 47 ​ $ 19 ​ $ 159 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ ​ ​ ​ At December 31, 2022: ​ Americas ​ EMEA ​ Asia Pacific ​ Total Amortized cost $ 7,281 ​ $ 3,546 ​ $ 1,704 ​ $ 12,531 Allowance for credit losses: ​ ​ ​ ​ Beginning balance at January 1, 2022 ​ $ 111 ​ $ 61 ​ $ 23 ​ $ 195 Write-offs ​ ​ (20) ​ ​ (3) ​ ​ (2) ​ ​ (25) Recoveries ​ 1 ​ 0 ​ ​ 4 ​ ​ 5 Additions/(releases) ​ (5) ​ 6 ​ ​ (4) ​ ​ (3) Other* ​ 2 ​ (5) ​ ​ (2) ​ ​ (4) Ending balance at December 31, 2022 ​ $ 88 ​ $ 60 ​ $ 20 ​ $ 168 * 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 2022 Annual Report. ​ Past Due Financing Receivables The company summarizes information about the amortized cost basis for client financing receivables, including amortized cost aged over 90 days and still accruing, billed invoices aged over 90 days and still accruing, and amortized cost not accruing. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Billed Amortized ​ ​ Total ​ Amortized ​ Cost ​ Invoices ​ Cost (Dollars in millions) ​ Amortized ​ Cost ​ > 90 Days and ​ > 90 Days and ​ Not At March 31, 2023: ​ Cost ​ > 90 Days* ​ Accruing* ​ Accruing ​ Accruing** Americas ​ $ 6,394 ​ $ 183 ​ $ 107 ​ $ 15 ​ $ 76 EMEA ​ 3,082 ​ ​ 47 ​ ​ 16 ​ ​ 16 ​ ​ 32 Asia Pacific ​ 1,561 ​ ​ 26 ​ ​ 9 ​ ​ 3 ​ ​ 17 Total client financing receivables ​ $ 11,037 ​ $ 257 ​ $ 133 ​ $ 33 ​ $ 124 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Billed Amortized ​ ​ Total ​ Amortized ​ Cost ​ Invoices ​ Cost (Dollars in millions) ​ Amortized ​ Cost ​ > 90 Days and ​ > 90 Days and ​ Not At December 31, 2022: ​ Cost ​ > 90 Days* ​ Accruing* ​ Accruing ​ Accruing** Americas ​ $ 7,281 ​ $ 272 ​ $ 198 ​ $ 22 ​ $ 74 EMEA ​ 3,546 ​ ​ 52 ​ ​ 8 ​ ​ 1 ​ ​ 46 Asia Pacific ​ 1,704 ​ ​ 20 ​ ​ 3 ​ ​ 1 ​ ​ 17 Total client financing receivables ​ $ 12,531 ​ $ 344 ​ $ 208 ​ $ 23 ​ $ 137 * 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 $121 million and $122 million at March 31, 2023 and December 31, 2022, respectively. Financing income recognized on these receivables was immaterial for the three months ended March 31, 2023 and 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 March 31, 2023 and December 31, 2022, respectively. Receivables with a credit quality indicator ranging from Aaa to Baa3 are considered investment grade. All others are considered non-investment grade. The credit quality indicators reflect mitigating credit enhancement actions taken by customers which reduce the risk to IBM. Gross write-offs by vintage year at March 31, 2023 were not material. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ Americas EMEA Asia Pacific At March 31, 2023: Aaa – Baa3 Ba1 – D Aaa – Baa3 Ba1 – D Aaa – Baa3 Ba1 – D Vintage year: ​ ​ ​ ​ ​ ​ 2023 ​ $ 295 ​ $ 231 ​ $ 157 ​ $ 130 ​ $ 115 ​ $ 48 2022 ​ ​ 2,840 ​ ​ 764 ​ ​ 1,130 ​ ​ 618 ​ ​ 617 ​ ​ 84 2021 ​ 1,001 ​ ​ 262 ​ ​ 381 ​ ​ 133 ​ ​ 189 ​ ​ 58 2020 ​ 401 ​ ​ 194 ​ ​ 170 ​ ​ 127 ​ ​ 183 ​ ​ 37 2019 ​ 205 ​ ​ 60 ​ ​ 94 ​ ​ 78 ​ ​ 103 ​ ​ 18 2018 and prior ​ 72 ​ ​ 68 ​ ​ 23 ​ ​ 42 ​ ​ 77 ​ ​ 31 Total ​ $ 4,815 ​ $ 1,579 ​ $ 1,955 ​ $ 1,127 ​ $ 1,285 ​ $ 276 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ Americas ​ EMEA ​ Asia Pacific At December 31, 2022: Aaa – Baa3 Ba1 – D Aaa – Baa3 Ba1 – D Aaa – Baa3 Ba1 – D Vintage year: ​ ​ ​ ​ ​ ​ 2022 ​ $ 3,316 ​ $ 1,097 ​ $ 1,447 ​ $ 704 ​ $ 799 ​ $ 96 2021 ​ 1,197 ​ ​ 323 ​ ​ 451 ​ ​ 159 ​ ​ 203 ​ ​ 65 2020 ​ 559 ​ ​ 217 ​ ​ 258 ​ ​ 158 ​ ​ 210 ​ ​ 49 2019 ​ 251 ​ ​ 91 ​ ​ 161 ​ ​ 99 ​ ​ 127 ​ ​ 22 2018 ​ 128 ​ ​ 26 ​ ​ 42 ​ ​ 16 ​ ​ 84 ​ ​ 21 2017 and prior ​ 32 ​ ​ 45 ​ ​ 14 ​ ​ 38 ​ ​ 12 ​ ​ 17 Total ​ $ 5,482 ​ $ 1,800 ​ $ 2,373 ​ $ 1,173 ​ $ 1,434 ​ $ 269 ​ Modifications and Troubled Debt Restructurings ​ The company did not have any significant modifications due to financial difficulty during the three months ended March 31, 2023. The company did not have any significant troubled debt restructurings during the year ended December 31, 2022.

Leases

Leases	3 Months Ended
	Mar. 31, 2023
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. ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ For the three months ended March 31: ​ 2023 2022 Lease income — ​ ​ ​ Sales-type lease selling price ​ $ 90 ​ $ 54 Less: Carrying value of underlying assets* ​ (30) ​ (19) Gross profit ​ $ 61 ​ $ 36 Interest income on lease receivables ​ 59 ​ 45 Total sales-type and direct financing lease income ​ $ 119 ​ $ 81 Lease income — ​ 26 ​ 30 Variable lease income ​ 21 ​ 28 Total lease income ​ $ 166 ​ $ 138 * Excludes unguaranteed residual value. ​

Intangible Assets Including Goo

Intangible Assets Including Goodwill	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023 ​ Gross Carrying Accumulated Net Carrying (Dollars in millions) ​ Amount ​ Amortization ​ Amount* Intangible asset class: ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized software ​ $ 1,638 ​ $ (675) ​ $ 962 Client relationships ​ 8,327 ​ (2,890) ​ 5,438 Completed technology ​ 5,097 ​ (2,025) ​ 3,073 Patents/trademarks ​ 1,799 ​ (370) ​ 1,429 Other** ​ 19 ​ (15) ​ 4 Total ​ $ 16,880 ​ $ (5,976) ​ $ 10,905 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, 2022 ​ Gross Carrying Accumulated Net Carrying (Dollars in millions) ​ Amount ​ Amortization ​ Amount* Intangible asset class: ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized software ​ $ 1,650 ​ $ (705) ​ $ 945 Client relationships ​ 8,559 ​ (2,951) ​ 5,608 Completed technology ​ 5,220 ​ (2,045) ​ 3,175 Patents/trademarks ​ 2,140 ​ (688) ​ 1,452 Other** ​ 19 ​ (15) ​ 4 Total ​ $ 17,588 ​ $ (6,404) ​ $ 11,184 * Amounts as of March 31, 2023 and December 31, 2022 include an increase in net intangible asset balances of $30 million and a decrease of $198 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 $279 million during the first three months of 2023, primarily due to intangible asset amortization, partially offset by additions of capitalized software and acquired intangibles. The aggregate intangible amortization expense was $547 million and $625 million for the three months ended March 31, 2023 and 2022, respectively. In the first three months of 2023, the company retired $992 million of fully amortized intangible assets, impacting both the gross carrying amount and accumulated amortization by this amount. The future amortization expense relating to intangible assets currently recorded in the Consolidated Balance Sheet is estimated to be the following at March 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized Acquired ​ (Dollars in millions) ​ Software ​ Intangibles ​ Total Remainder of 2023 ​ $ 441 ​ $ 1,173 ​ $ 1,615 2024 ​ 374 ​ 1,553 ​ 1,927 2025 ​ 138 ​ 1,535 ​ 1,673 2026 ​ 9 ​ 1,512 ​ 1,520 2027 ​ — ​ 1,492 ​ 1,492 Thereafter ​ ​ — ​ ​ 2,678 ​ 2,678 ​ Goodwill The changes in the goodwill balances by segment for the three months ended March 31, 2023 and for the year ended December 31, 2022 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Currency ​ ​ ​ ​ ​ ​ ​ ​ Purchase ​ ​ ​ Translation ​ ​ (Dollars in millions) ​ Balance ​ Goodwill ​ Price ​ ​ ​ and Other ​ Balance Segment ​ 1/1/2023 ​ Additions ​ Adjustments ​ Divestitures ​ Adjustments* ​ 3/31/2023 Software ​ $ 43,657 ​ $ 141 ​ $ 1 ​ $ — ​ $ 66 ​ $ 43,865 Consulting ​ 7,928 ​ — ​ 5 ​ — ​ 29 ​ 7,962 Infrastructure ​ ​ 4,363 ​ ​ — ​ ​ — ​ ​ — ​ ​ 2 ​ ​ 4,366 Other ​ — ​ — ​ — ​ — ​ — ​ — Total ​ $ 55,949 ​ $ 141 ​ $ 6 ​ $ — ​ $ 97 ​ $ 56,193 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Currency ​ ​ ​ ​ ​ ​ ​ ​ Purchase ​ ​ ​ Translation ​ ​ (Dollars in millions) ​ Balance ​ Goodwill ​ Price ​ ​ ​ and Other ​ Balance Segment ​ 1/1/2022 ​ Additions ​ Adjustments ​ Divestitures ​ Adjustments* ​ 12/31/2022 Software ​ $ 43,966 ​ $ 568 ​ $ (118) ​ $ — ​ $ (760) ​ $ 43,657 Consulting ​ 6,797 ​ 1,366 ​ (42) ​ — ​ (192) ​ 7,928 Infrastructure ​ 4,396 ​ — ​ — ​ (1) ​ (32) ​ 4,363 Other** ​ 484 ​ — ​ — ​ (484) ​ — ​ — Total ​ $ 55,643 ​ $ 1,934 ​ $ (159) ​ $ (485) ​ $ (984) ​ $ 55,949 * Primarily driven by foreign currency translation. ** The company derecognized goodwill related to the divestiture of its healthcare software assets in the second quarter of 2022. ​ There were no goodwill impairment losses recorded during the first three months of 2023 or full-year 2022 and the company has no accumulated impairment losses. Purchase price adjustments recorded in the first three months of 2023 and full-year 2022 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 during the first three months of 2023 were not material. Net purchase price adjustments recorded in 2022 primarily related to deferred tax assets and liabilities associated with the Turbonomic acquisition.

Borrowings

Borrowings	3 Months Ended
	Mar. 31, 2023
Borrowings
Borrowings	12. Borrowings: Short-Term Debt ​ ​ ​ ​ ​ ​ ​ ​ ​ At March 31, At December 31, (Dollars in millions) ​ 2023 ​ 2022 Short-term loans ​ $ 6 ​ $ 8 Long-term debt — ​ 4,881 ​ 4,751 Total ​ $ 4,887 ​ $ 4,760 ​ The weighted-average interest rate for short-term loans was 7.4 percent and 7.6 percent at March 31, 2023 and December 31, 2022, respectively. Long-Term Debt Pre-Swap Borrowing ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance Balance (Dollars in millions) ​ Maturities ​ 3/31/2023 ​ 12/31/2022 U.S. dollar debt (weighted-average interest rate at March 31, 2023):* ​ ​ 3.4% 2023 ​ $ 1,514 ​ $ 1,529 3.3% 2024 ​ 5,007 ​ 5,009 5.1% 2025 ​ 1,603 ​ 1,603 3.5% 2026 ​ 5,201 ​ 4,351 3.1% 2027 ​ 3,620 ​ 3,620 5.0% 2028 ​ ​ 1,313 ​ 313 3.5% ​ 2029 ​ ​ 3,250 ​ ​ 3,250 2.0% ​ 2030 ​ ​ 1,350 ​ ​ 1,350 4.4% 2032 ​ 1,850 ​ 1,850 4.8% 2033 ​ 750 ​ — 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 4.2% ​ 2052 ​ ​ 1,400 ​ ​ 1,400 5.1% ​ 2053 ​ ​ 650 ​ ​ — 7.1% 2096 ​ 316 ​ 316 ​ ​ ​ ​ $ 36,836 ​ $ 33,605 Other currencies (weighted-average interest rate at March 31, 2023, in parentheses):* ​ ​ Euro (1.8%) 2023–2043 ​ $ 20,103 ​ $ 17,087 Pound sterling (4.9%) 2038 ​ 928 ​ — Japanese yen (0.5%) 2024–2028 ​ 1,327 ​ 694 Other (16.1%) 2023–2026 ​ 305 ​ 361 ​ ​ ​ ​ $ 59,499 ​ $ 51,747 Finance lease obligations (3.6%) ​ 2023–2030 ​ ​ 232 ​ ​ 239 ​ ​ ​ ​ $ 59,731 ​ $ 51,986 Less: net unamortized discount ​ 866 ​ 835 Less: net unamortized debt issuance costs ​ 170 ​ 138 Add: fair value adjustment** ​ 11 ​ (73) ​ ​ ​ ​ $ 58,707 ​ $ 50,940 Less: current maturities ​ 4,881 ​ 4,751 Total ​ $ 53,826 ​ $ 46,189 * 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 2023, the company issued $0.7 billion of Japanese yen floating-rate syndicated bank loans with a maturity of 5 years; $4.6 billion of Euro fixed-rate notes in tranches with maturities ranging from 4 to 20 years and coupons ranging from 3.375 to 4 percent; $0.9 billion of Pound sterling fixed-rate notes with a maturity of 15 years and a coupon of 4.875 percent; and $3.25 billion of U.S. dollar fixed-rate notes in tranches with maturities ranging from 3 to 30 years and coupons ranging from 4.5 to 5.1 percent. Pre-swap annual contractual obligations of long-term debt outstanding at March 31, 2023, are as follows: ​ ​ ​ ​ ​ (Dollars in millions) Total Remainder of 2023 ​ $ 2,812 2024 ​ 6,378 2025 ​ 4,935 2026 ​ 5,550 2027 ​ 5,812 Thereafter ​ 34,243 Total ​ $ 59,731 ​ Interest on Debt ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ ​ For the three months ended March 31: ​ 2023 ​ 2022 Cost of financing ​ $ 90 ​ $ 82 Interest expense ​ 367 ​ 311 Interest capitalized ​ 4 ​ 2 Total interest paid and accrued ​ $ 462 ​ $ 395 ​ Lines of Credit The company has a $2.5 billion Three-Year Credit Agreement and a $7.5 billion Five-Year Credit Agreement with maturity dates of June 20, 2025 and June 22, 2027, respectively. The Credit Agreements permit the company and its subsidiary borrowers to borrow up to $10 billion on a revolving basis. At March 31, 2023, there were no borrowings by the company, or its subsidiaries, under these credit facilities. ​

Commitments

Commitments	3 Months Ended
	Mar. 31, 2023
Commitments
Commitments	13. Commitments: The company’s extended lines of credit to third-party entities include unused amounts of $1.4 billion and $1.6 billion at March 31, 2023 and December 31, 2022, respectively. A portion of these amounts was available to the company’s business partners to support their working capital needs. In addition, the company has committed to provide future financing to its clients in connection with client purchase agreements for $1.7 billion and $2.1 billion at March 31, 2023 and December 31, 2022, respectively. The reduction in the future financing commitments is primarily due to lower services financing in the current quarter. 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 2022 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 March 31, 2023. 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 March 31, 2023 and December 31, 2022 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) 2023 2022 Balance at January 1 ​ $ 79 ​ $ 77 Current period accruals ​ 17 ​ 14 Accrual adjustments to reflect actual experience ​ (17) ​ (2) Charges incurred ​ (21) ​ (20) Balance at March 31 ​ $ 58 ​ $ 69 Extended Warranty Liability (Deferred Income) ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) 2023 2022 Balance at January 1 ​ $ 272 ​ $ 350 Revenue deferred for new extended warranty contracts ​ 9 ​ 18 Amortization of deferred revenue ​ (37) ​ (44) Other* ​ 1 ​ (1) Balance at March 31 ​ $ 244 ​ $ 323 Current portion ​ $ 129 ​ $ 155 Noncurrent portion ​ $ 116 ​ $ 168 * Other primarily consists of foreign currency translation adjustments.

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023 were not material to the Consolidated Financial Statements. In accordance with the relevant accounting guidance, the company provides disclosures of matters for which the likelihood of material loss is at least reasonably possible. In addition, the company also discloses matters based on its consideration of other matters and qualitative factors, including the experience of other companies in the industry, and investor, customer and employee relations considerations. With respect to certain of the claims, suits, investigations and proceedings discussed herein, the company believes at this time that the likelihood of any material loss is remote, given, for example, the procedural status, court rulings, and/or the strength of the company’s defenses in those matters. With respect to the remaining claims, suits, investigations and proceedings discussed in this note, except as specifically discussed herein, the company is unable to provide estimates of reasonably possible losses or range of losses, including losses in excess of amounts accrued, if any, for the following reasons. Claims, suits, investigations and proceedings are inherently uncertain, and it is not possible to predict the ultimate outcome of these matters. It is the company’s experience that damage amounts claimed in litigation against it are unreliable and unrelated to possible outcomes, and as such are not meaningful indicators of the company’s potential liability. Further, the company is unable to provide such an estimate due to a number of other factors with respect to these claims, suits, investigations and proceedings, including considerations of the procedural status of the matter in question, the presence of complex or novel legal theories, and/or the ongoing discovery and development of information important to the matters. The company reviews claims, suits, investigations and proceedings at least quarterly, and decisions are made with respect to recording or adjusting provisions and disclosing reasonably possible losses or range of losses (individually or in the aggregate), to reflect the impact and status of settlement discussions, discovery, procedural and substantive rulings, reviews by counsel and other information pertinent to a particular matter. Whether any losses, damages or remedies finally determined in any claim, suit, investigation or proceeding could reasonably have a material effect on the company’s business, financial condition, results of operations or cash flows will depend on a number of variables, including: the timing and amount of such losses or damages; the structure and type of any such remedies; the significance of the impact any such losses, damages or remedies may have in the Consolidated Financial Statements; and the unique facts and circumstances of the particular matter that may give rise to additional factors. While the company will continue to defend itself vigorously, it is possible that the company’s business, financial condition, results of operations or cash flows could be affected in any particular period by the resolution of one or more of these matters. The following is a summary of the more significant legal matters involving the company. On June 8, 2021, IBM sued GlobalFoundries U.S. Inc. (GF) in New York State Supreme Court for claims including fraud and breach of contract relating to a long-term strategic relationship between IBM and GF for researching, developing, and manufacturing advanced semiconductor chips for IBM. GF walked away from its obligations and IBM is now suing to recover amounts paid to GF, and other compensatory and punitive damages, totaling more than $1.5 billion. On September 14, 2021, the court ruled on GF’s motion to dismiss. On April 7, 2022, the Appellate Division unanimously reversed the lower court’s dismissal of IBM’s fraud claim. IBM’s claims for breaches of contract, promissory estoppel, and fraud are proceeding. On 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 September 21, 2022, the plaintiff voluntarily dismissed the case, without prejudice. On January 13, 2023, a putative securities law class action making allegations substantially similar to those in the dismissed case was filed in the same court. On April 4, 2023, the court entered an order appointing June E. Adams Irrevocable Trust Dated 7/21/14 FBO Edward Adams, the same entity that filed the since-dismissed April 5, 2022 class action, 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 was formed to investigate the issues raised in the letter. The special committee has completed its investigation and recommended that no claims should be asserted on behalf of the company. The independent directors of the company’s Board of Directors unanimously adopted that recommendation. 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. IBM filed a notice of appeal. 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	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023: ​ Amount ​ Benefit ​ Amount Other comprehensive income/(loss): ​ ​ ​ Foreign currency translation adjustments ​ $ (87) ​ $ 56 ​ $ (30) Net changes related to available-for-sale securities: ​ ​ ​ Unrealized gains/(losses) arising during the period ​ $ 15 ​ $ (4) ​ $ 11 Reclassification of (gains)/losses to other (income) and expense ​ — ​ ​ — ​ ​ — Total net changes related to available-for-sale securities ​ $ 15 ​ $ (4) ​ $ 11 Unrealized gains/(losses) on cash flow hedges: ​ ​ ​ Unrealized gains/(losses) arising during the period ​ $ (29) ​ $ 6 ​ $ (23) Reclassification of (gains)/losses to: ​ ​ ​ Cost of services ​ 2 ​ 0 ​ 2 Cost of sales ​ (14) ​ 4 ​ (10) Cost of financing ​ 5 ​ (1) ​ 4 SG&A expense ​ (10) ​ 3 ​ (7) Other (income) and expense ​ (126) ​ 32 ​ (94) Interest expense ​ 21 ​ (5) ​ 16 Total unrealized gains/(losses) on cash flow hedges ​ $ (151) ​ $ 38 ​ $ (113) Retirement-related benefit plans*: ​ ​ ​ Prior service costs/(credits) ​ $ — ​ $ 1 ​ $ 1 Net (losses)/gains arising during the period ​ ​ 2 ​ ​ 0 ​ ​ 2 Curtailments and settlements ​ (1) ​ ​ 0 ​ ​ (1) Amortization of prior service (credits)/costs ​ (2) ​ ​ 1 ​ ​ (2) Amortization of net (gains)/losses ​ 131 ​ ​ (38) ​ ​ 93 Total retirement-related benefit plans ​ $ 130 ​ $ (38) ​ $ 92 Other comprehensive income/(loss) ​ $ (93) ​ $ 53 ​ $ (40) * 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 March 31, 2022: ​ Amount ​ Benefit ​ Amount Other comprehensive income/(loss): ​ ​ ​ Foreign currency translation adjustments ​ $ 442 ​ $ (136) ​ $ 306 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 ​ $ 60 ​ $ (16) ​ $ 44 Reclassification of (gains)/losses to: ​ ​ ​ ​ ​ ​ Cost of services ​ (15) ​ 4 ​ (11) Cost of sales ​ (12) ​ 4 ​ (9) Cost of financing ​ 5 ​ (1) ​ 4 SG&A expense ​ (6) ​ 2 ​ (4) Other (income) and expense ​ 7 ​ (2) ​ 5 Interest expense ​ 21 ​ (5) ​ 15 Total unrealized gains/(losses) on cash flow hedges ​ $ 59 ​ $ (15) ​ $ 44 Retirement-related benefit plans*: ​ ​ ​ Prior service costs/(credits) ​ $ (5) ​ $ 5 ​ $ 0 Net (losses)/gains arising during the period ​ ​ 9 ​ ​ (4) ​ ​ 5 Curtailments and settlements ​ 8 ​ ​ (2) ​ ​ 6 Amortization of prior service (credits)/costs ​ 7 ​ ​ (2) ​ ​ 5 Amortization of net (gains)/losses ​ 468 ​ ​ (131) ​ ​ 337 Total retirement-related benefit plans ​ $ 486 ​ $ (134) ​ $ 352 Other comprehensive income/(loss) ​ $ 987 ​ $ (285) ​ $ 703 * 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, 2023 ​ $ (135) ​ $ (3,591) ​ $ (13,013) ​ $ (1) ​ $ (16,740) Other comprehensive income before reclassifications ​ (23) ​ (30) ​ 2 ​ 11 ​ (39) Amount reclassified from accumulated other comprehensive income/(loss) ​ (90) ​ — ​ 90 ​ — ​ 0 Total change for the period ​ $ (113) ​ $ (30) ​ $ 92 ​ $ 11 ​ $ (40) March 31, 2023 ​ $ (248) ​ $ (3,621) ​ $ (12,921) ​ $ 10 ​ $ (16,780) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ 44 ​ 306 ​ 5 ​ 0 ​ 355 Amount reclassified from accumulated other comprehensive income/(loss) ​ 0 ​ — ​ 348 ​ — ​ 348 Total change for the period ​ $ 44 ​ $ 306 ​ $ 352 ​ $ 0 ​ $ 703 March 31, 2022 ​ $ 26 ​ $ (3,056) ​ $ (19,502) ​ $ (1) ​ $ (22,532) * Foreign currency translation adjustments are presented gross except for any associated hedges which are presented net of tax.

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023 and December 31, 2022, the amount recognized in other accounts receivable for the right to reclaim cash collateral was $42 million and $140 million, respectively. At March 31, 2023, there was no amount recognized in accounts payable for the obligation to return cash collateral. At December 31, 2022, the amount recognized in accounts payable for such obligation was $8 million. The company restricts the use of cash collateral received to rehypothecation, and therefore reports it in restricted cash in the Consolidated Balance Sheet. There was no cash collateral rehypothecated at March 31, 2023. At December 31, 2022, the amount rehypothecated was $8 million. Additionally, if derivative exposures covered by a qualifying master netting agreement had been netted in the Consolidated Balance Sheet at March 31 December 31 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 March 31, 2023 and December 31, 2022, the total notional amount of the company’s interest-rate swaps was $6.9 billion and $6.5 billion, respectively. The weighted-average remaining maturity of these instruments at both March 31, 2023 and December 31, 2022 was approximately 6 years. 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 March 31, 2023 and December 31, 2022. 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 March 31, 2023 and December 31, 2022. In connection with cash flow hedges of forecasted interest payments related to the company's borrowings, the company recorded net losses (before taxes) of $135 million and $139 million at March 31, 2023 and December 31, 2022, respectively, in AOCI. The company estimates that $18 million of the deferred net losses (before taxes) on derivatives in AOCI at March 31, 2023 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 March 31, 2023 and December 31, 2022, the carrying value of debt designated as hedging instruments was $15.2 billion and $13.4 billion, respectively. The company also uses cross-currency swaps and foreign exchange forward contracts for this risk management purpose. At March 31, 2023 and December 31, 2022, the total notional amount of derivative instruments designated as net investment hedges was $5.0 billion and $4.7 billion, respectively. At March 31, 2023 and December 31, 2022, the weighted-average remaining maturity of these instruments was approximately 0.2 years and 0.1 years, respectively. 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 March 31, 2023, the maximum remaining length of time over which the company hedged its exposure is approximately two years. At March 31, 2023 and December 31, 2022, the total notional amount of forward contracts designated as cash flow hedges of forecasted royalty and cost transactions was $8.4 billion and $8.1 billion, respectively. At both March 31, 2023 and December 31, 2022, the weighted-average remaining maturity of these instruments was approximately 0.6 years. At March 31, 2023 and December 31, 2022, in connection with cash flow hedges of anticipated royalties and cost transactions, the company recorded net losses and net gains (before taxes) of $24 million and $66 million, respectively, in AOCI. The company estimates that $85 million of deferred net losses (before taxes) on derivatives in AOCI at March 31, 2023 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 March 31, 2023, the maximum length of time remaining over which the company hedged its exposure is approximately eight years. At March 31, 2023 and December 31, 2022, the total notional amount of cross-currency swaps designated as cash flow hedges of foreign currency denominated debt was $4.0 billion and $3.1 billion, respectively. At March 31, 2023 and December 31, 2022, in connection with cash flow hedges of foreign currency denominated borrowings, the company recorded net losses (before taxes) of $166 million and $101 million, respectively, in AOCI. The company estimates that $41 million of deferred net gains (before taxes) on derivatives in AOCI at March 31, 2023 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 March 31, 2023 and December 31, 2022, the total notional amount of derivative instruments in economic hedges of foreign currency exposure was $8.4 billion and $5.9 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 equity swap derivatives 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 both March 31, 2023 and December 31, 2022, the total notional amount of derivative instruments in economic hedges of these compensation obligations was $1.1 billion. Cumulative Basis Adjustments for Fair Value Hedges At March 31, 2023 and December 31, 2022, the following amounts were recorded in the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges. ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, December 31, (Dollars in millions) ​ 2023 ​ 2022 Short-term debt: ​ ​ Carrying amount of the hedged item ​ $ (204) ​ $ (199) Cumulative hedging adjustments included in the carrying amount — assets/(liabilities)* ​ $ (4) ​ $ 1 Long-term debt: ​ ​ Carrying amount of the hedged item ​ $ (6,693) ​ $ (6,216) Cumulative hedging adjustments included in the carrying amount — assets/(liabilities)* ​ $ (8) ​ $ 72 * Includes ($238) million and ($250) million of hedging adjustments on discontinued hedging relationships at March 31, 2023 and December 31, 2022, respectively. The Effect of Derivative Instruments in the Consolidated Income Statement The total amounts of income and expense line items presented in the Consolidated Income Statement in which the effects of fair value hedges, cash flow hedges, net investment hedges and derivatives not designated as hedging instruments are recorded and the total effect of hedge activity on these income and expense line items are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gains/(Losses) of (Dollars in millions) ​ Total ​ Total Hedge Activity For the three months ended March 31: 2023 2022 2023 2022 Cost of services ​ $ 5,310 ​ $ 5,349 ​ $ (2) ​ $ 15 Cost of sales ​ $ 1,322 ​ $ 1,415 ​ $ 14 ​ $ 12 Cost of financing ​ $ 110 ​ $ 98 ​ $ (3) ​ $ (2) SG&A expense ​ $ 4,853 ​ $ 4,597 ​ $ 59 ​ $ (70) Other (income) and expense ​ $ (245) ​ $ 246 ​ $ 142 ​ $ (102) Interest expense ​ $ 367 ​ $ 311 ​ $ (14) ​ $ (6) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 March 31: Line Item 2023 2022 2023 2022 Derivative instruments in fair value hedges (1): ​ ​ ​ ​ Interest rate contracts Cost of financing ​ $ 13 ​ $ (1) ​ $ (17) ​ $ 4 ​ Interest expense ​ 53 ​ (4) ​ (68) ​ 16 Derivative instruments not designated as hedging instruments: ​ ​ ​ ​ Foreign exchange contracts Other (income) and expense ​ 16 ​ (95) ​ N/A ​ N/A Equity contracts SG&A expense ​ 49 ​ (76) ​ N/A ​ N/A Total ​ $ 131 ​ $ (176) ​ $ (84) ​ $ 20 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 March 31: 2023 2022 Line Item 2023 2022 2023 2022 Derivative instruments in cash flow hedges: ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts ​ $ — ​ $ — Cost of financing ​ $ (1) ​ $ (1) ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ Interest expense ​ (3) ​ (3) ​ — ​ — ​ Foreign exchange contracts ​ (29) ​ 60 Cost of services ​ (2) ​ 15 ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ Cost of sales ​ 14 ​ 12 ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ Cost of financing ​ (4) ​ (5) ​ ​ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ SG&A expense ​ 10 ​ 6 ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ Other (income) and expense ​ 126 ​ (7) ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ Interest expense ​ (17) ​ (17) ​ ​ — ​ ​ — ​ Instruments in net investment hedges (4): ​ ​ ​ ​ ​ ​ ​ ​ Foreign exchange contracts ​ (224) ​ 541 Cost of financing ​ — ​ — ​ 5 ​ 1 ​ ​ ​ ​ ​ ​ Interest expense ​ — ​ — ​ 22 ​ 2 ​ Total ​ $ (253) ​ $ 601 ​ $ 122 ​ $ 1 ​ $ 28 ​ $ 3 ​ (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 months ending March 31, 2023 and 2022, 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	3 Months Ended
	Mar. 31, 2023
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. ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ ​ For the three months ended March 31: ​ 2023 ​ 2022 Cost ​ $ 46 ​ $ 40 Selling, general and administrative ​ 149 ​ 136 Research, development and engineering ​ 74 ​ 57 Pre-tax stock-based compensation cost ​ $ 268 ​ $ 234 Income tax benefits ​ (67) ​ (57) Total net stock-based compensation cost ​ $ 201 ​ $ 177 ​ Pre-tax stock-based compensation cost for the three months ended March 31, 2023 increased $35 million compared to the corresponding period in the prior year, including increases in Employees Stock Purchase Plan (ESPP) ($19 million) as a result of ESPP being considered compensatory effective April 1, 2022 and stock options ($14 million) due to the conversion of stock options previously issued by acquired entities and stock options granted by the company as part of its executive compensation programs. Total unrecognized compensation cost related to non-vested awards at March 31, 2023 was $1.7 billion and is expected to be recognized over a weighted-average period of approximately 2.6 years.

Retirement-Related Benefits

Retirement-Related Benefits	3 Months Ended
	Mar. 31, 2023
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 March 31: ​ 2023 ​ 2022 ​ Change Retirement-related plans — ​ ​ ​ Defined benefit and contribution pension plans — ​ $ 281 ​ $ 478 (41.1) % Nonpension postretirement plans — ​ 32 ​ 33 (1.6) ​ Total ​ $ 314 ​ $ 510 (38.5) ​ ​ The following table provides 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 March 31: 2023 2022 2023 2022 Service cost ​ $ — ​ $ — ​ $ 44 ​ $ 64 Interest cost* ​ 272 ​ 302 ​ 288 ​ 139 Expected return on plan assets* ​ (382) ​ (475) ​ (356) ​ (274) Amortization of prior service costs/(credits)* ​ — ​ 2 ​ 5 ​ 4 Recognized actuarial losses* ​ 27 ​ 179 ​ 102 ​ 278 Curtailments and settlements* ​ — ​ — ​ (1) ​ 8 Multi-employer plans ​ — ​ — ​ 4 ​ 4 Other costs/(credits)* ​ — ​ — ​ 9 ​ 9 Total net periodic pension (income)/cost of defined benefit plans ​ $ (82) ​ $ 8 ​ $ 95 ​ $ 231 Cost of defined contribution plans ​ 172 ​ 141 ​ 97 ​ 98 Total defined benefit and contribution pension plans cost recognized in the Consolidated Income Statement ​ $ 90 ​ $ 149 ​ $ 192 ​ $ 328 * These components of net periodic pension cost are included in other (income) and expense in the Consolidated Income Statement. The following table provides 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 March 31: 2023 2022 2023 2022 Service cost ​ $ 1 ​ $ 1 ​ $ 1 ​ $ 1 Interest cost* ​ 29 ​ 18 ​ 9 ​ 9 Expected return on plan assets* ​ — ​ — ​ (1) ​ 0 Amortization of prior service costs/(credits)* ​ (7) ​ 1 ​ 0 ​ 0 Recognized actuarial losses* ​ — ​ 2 ​ 0 ​ 1 Curtailments and settlements* ​ — ​ — ​ — ​ — Total nonpension postretirement plans cost recognized in the Consolidated Income Statement ​ $ 23 ​ $ 23 ​ $ 9 ​ $ 10 * 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 2023 from the amounts disclosed in the 2022 Annual Report. The table below includes contributions to the following plans: ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ Plan Contributions For the three months ended March 31: ​ ​ 2023 2022 U.S. nonpension postretirement benefit plan ​ $ 109 ​ $ 120 Non-U.S. DB and multi-employer plans* ​ 7 ​ 35 Total plan contributions ​ $ 117 ​ $ 154 * Amounts reported net of refunds. ​ During the three months ended March 31, 2023 and 2022, the company contributed $109 million and $105 million of U.S. Treasury Securities, respectively, to the U.S. nonpension postretirement benefit plan. Additionally, during the three months ended March 31, 2023 and 2022, the company contributed $192 million and $156 million of 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	3 Months Ended
	Mar. 31, 2023
Subsequent Events
Subsequent Events	19. Subsequent Events ​ On April 25, 2023, the company announced that the Board of Directors approved an increase in the quarterly dividend to $1.66 per common share. The dividend is payable June 10, 2023 to shareholders of record on May 10, 2023. ​

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2023
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. In the fourth quarter of 2022, the company completed its annual assessment of the useful lives of its property, plant and equipment. Due to advances in technology, the company determined it should increase the estimated useful lives of its server and network equipment from five three ​ For the three months ended March 31, 2023, the company recorded a provision for income taxes of ​ Noncontrolling interest amounts of $4.6 million and $4.9 million, net of tax, for the three months ended March 31, 2023 and 2022, respectively, are included as a reduction within other (income) and expense in the Consolidated Income Statement. The company has supplier finance programs with third-party financial institutions where the company agrees to pay the financial institutions the stated amounts of invoices from participating suppliers on the originally invoiced maturity date, which have an average term of 90 days. The financial institutions offer earlier payment of the invoices at the sole discretion of the supplier for a discounted amount. The company does not provide secured legal assets or other forms of guarantees under the arrangements. The company is not a party to the arrangement between its suppliers and the financial institutions. These obligations are recognized as accounts payable in the Consolidated Balance Sheet. The obligations outstanding under these programs at March 31, 2023 and December 31, 2022 were $113 million and $60 million, respectively. Interim results are not necessarily indicative of financial results for a full year. The information included in this Form 10-Q should be read in conjunction with the company’s 2022 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.
Accounting Changes	Standards Implemented ​ Disclosures of Supplier Finance Program Obligations 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
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.
Segment Revenue and Pre-tax Income	Beginning in the first quarter of 2023, the company updated its measure of segment pre-tax income, consistent with its management system, to no longer allocate workforce rebalancing charges to its segments. Workforce rebalancing charges in the first quarter of 2022 of $5 million were included in the segments.
Financial Assets & Liabilities and Fair Value Measurements	Fair Value Measurements ​ Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The company classifies certain assets and liabilities based on the following fair value hierarchy: ​ ● Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities that can be accessed at the measurement date; ​ ● Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and ​ ● Level 3—Unobservable inputs for the asset or liability. ​ When available, the company uses unadjusted quoted market prices in active markets to measure the fair value and classifies such items as Level 1. If quoted market prices are not available, fair value is based upon internally developed models that use current market-based or independently sourced market parameters such as interest rates and currency rates. Items valued using internally generated models are classified according to the lowest level input or value driver that is significant to the valuation. ​ The determination of fair value considers various factors including interest rate yield curves and time value underlying the financial instruments. For derivatives and debt securities, the company uses a discounted cash flow analysis using discount rates commensurate with the duration of the instrument. ​ In determining the fair value of financial instruments, the company considers certain market valuation adjustments to the “base valuations” calculated using the methodologies described below for several parameters that market participants would consider in determining fair value: ​ ● Counterparty credit risk adjustments are applied to financial instruments, taking into account the actual credit risk of a counterparty as observed in the credit default swap market to determine the true fair value of such an instrument. ​ ● Credit risk adjustments are applied to reflect the company’s own credit risk when valuing all liabilities measured at fair value. The methodology is consistent with that applied in developing counterparty credit risk adjustments, but incorporates the company’s own credit risk as observed in the credit default swap market. ​ The company holds investments primarily in time deposits, certificates of deposit, and U.S. government debt that are designated as available-for-sale. The primary objective of the company’s cash and debt investment portfolio is to protect principal by investing in very liquid investment securities with highly rated counterparties. ​ The company’s standard practice is to hold all of its debt security investments classified as available-for-sale until maturity. No impairment for credit losses and no material non-credit impairments were recorded for the three months ended March 31, 2023 and 2022, 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 months ended March 31, 2023 and 2022, respectively.
Financial Assets and Liabilities Not Measured At Fair Value	Financial Assets and Liabilities Not Measured at Fair Value ​ Short-Term Receivables and Payables ​ Short-term receivables (excluding the current portion of long-term receivables) and other investments are financial assets with carrying values that approximate fair value. Accounts payable, other accrued expenses and short-term debt (excluding the current portion of long-term debt) are financial liabilities with carrying values that approximate fair value. If measured at fair value in the financial statements, these financial instruments would be classified as Level 3 in the fair value hierarchy, except for short-term debt which would be classified as Level 2. ​ Loans and Long-Term Receivables ​ Fair values are based on discounted future cash flows using current interest rates offered for similar loans to clients with similar credit ratings for the same remaining maturities. At March 31, 2023 and December 31, 2022, 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 ​
Financing Receivables	Financing receivables primarily consist of client loan and installment payment receivables (loans), investment in sales-type and direct financing leases (collectively referred to as client financing receivables) and commercial financing receivables. Loans are provided primarily to clients to finance the purchase of hardware, software and services. Payment terms on these financing arrangements are 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
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 2022 Annual Report.
Commitments	The company collectively evaluates the allowance for these arrangements using a provision methodology consistent with the portfolio of the commitments. Refer to note A, “Significant Accounting Policies,” in the company’s 2022 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 March 31, 2023 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.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2023
Revenue Recognition
Schedule of disaggregation of revenue	Revenue by Major Products/Service Offerings ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ ​ For the three months ended March 31: ​ 2023 ​ 2022 Hybrid Platform & Solutions ​ $ 4,179 ​ $ 4,080 Transaction Processing ​ ​ 1,742 ​ ​ 1,692 Total Software ​ $ 5,921 ​ $ 5,772 Business Transformation ​ 2,283 ​ 2,255 Application Operations ​ 1,736 ​ 1,619 Technology Consulting ​ 943 ​ 955 Total Consulting ​ $ 4,962 ​ $ 4,829 Hybrid Infrastructure ​ 1,709 ​ 1,700 Infrastructure Support ​ 1,389 ​ 1,519 Total Infrastructure ​ $ 3,098 ​ $ 3,219 Financing* ​ 196 ​ 154 Other ​ 75 ​ 224 Total revenue ​ $ 14,252 ​ $ 14,197 * Contains lease and loan financing arrangements which are not subject to the guidance on revenue from contracts with customers.
Schedule of disaggregation of revenue by geography	Revenue by Geography ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ For the three months ended March 31: ​ 2023 ​ 2022 Americas ​ $ 7,078 ​ $ 7,056 Europe/Middle East/Africa ​ 4,331 ​ 4,231 Asia Pacific ​ 2,843 ​ 2,910 Total ​ $ 14,252 ​ $ 14,197 ​
Schedule of reconciliation of contract balances	​ ​ ​ ​ ​ ​ ​ ​ ​ At March 31, At December 31, (Dollars in millions) ​ 2023 ​ 2022 Notes and accounts receivable — ​ $ 5,757 ​ $ 6,541 Contract assets* ​ $ 461 ​ $ 464 Deferred income (current) ​ $ 13,220 ​ $ 12,032 Deferred income (noncurrent) ​ $ 3,443 ​ $ 3,499 * 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, 2023 ​ Additions / (Releases) ​ Write-offs ​ Foreign currency and other ​ March 31, 2023 $ 233 ​ $ 23 ​ $ (8) ​ $ 1 ​ $ 250 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ January 1, 2022 ​ Additions / (Releases) ​ Write-offs ​ Foreign currency and other ​ December 31, 2022 $ 218 ​ $ 59 ​ $ (31) ​ $ (14) ​ $ 233 ​

Segments (Tables)

Segments (Tables)	3 Months Ended
	Mar. 31, 2023
Segments
Revenue and Pre-tax Income by Segment	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total (Dollars in millions) ​ Software ​ Consulting ​ Infrastructure ​ Financing ​ Segments For the three months ended March 31, 2023: ​ ​ ​ ​ ​ ​ Revenue ​ $ 5,921 ​ $ 4,962 ​ $ 3,098 ​ $ 196 ​ $ 14,177 ​ Pre-tax income from continuing operations ​ $ 1,164 ​ $ 382 ​ $ 216 ​ $ 100 ​ $ 1,863 ​ Revenue year-to-year change ​ 2.6 % 2.8 % (3.7) % 27.3 % 1.5 % Pre-tax income year-to-year change ​ 2.7 % 9.6 % 8.5 % 19.6 % 5.5 % Pre-tax income margin ​ 19.7 % 7.7 % 7.0 % 51.3 % 13.1 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, 2022: ​ ​ ​ ​ ​ ​ Revenue ​ $ 5,772 ​ $ 4,829 ​ $ 3,219 ​ $ 154 ​ $ 13,973 ​ Pre-tax income from continuing operations ​ $ 1,134 ​ $ 348 ​ $ 199 ​ $ 84 ​ $ 1,766 ​ Pre-tax income margin ​ 19.7 % 7.2 % 6.2 % 54.6 % 12.6 % ​
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 March 31: ​ 2023 ​ 2022 ​ Revenue: ​ ​ Total reportable segments ​ $ 14,177 ​ $ 13,973 ​ Other ‒ ​ 0 ​ 154 ​ Other revenue ​ 75 ​ 70 ​ Total consolidated revenue ​ $ 14,252 ​ $ 14,197 ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-tax income/(loss) from continuing operations: ​ ​ ​ Total reportable segments ​ $ 1,863 ​ $ 1,766 ​ Amortization of acquired intangible assets ​ (392) ​ (461) ​ Acquisition-related (charges)/income ​ (3) ​ (7) ​ Non-operating retirement-related (costs)/income ​ 5 ​ (202) ​ Kyndryl-related impacts ​ ​ — ​ (222) * Workforce rebalancing charges** ​ ​ (259) ​ ​ — ​ Other ‒ ​ (4) ​ (52) ​ Unallocated corporate amounts and other ​ (151) ​ (199) È Total pre-tax income from continuing operations ​ $ 1,058 ​ $ 623 ​ * Unrealized loss on Kyndryl retained shares. See note 5, “Acquisitions & Divestitures,” for additional information. ** Beginning in the first quarter of 2023, the company updated its measure of segment pre-tax income, consistent with its management system, to no longer allocate workforce rebalancing charges to its segments. Workforce rebalancing charges in the first quarter of 2022 of $5 million were included in the segments. È Recast to conform to 2023 presentation.

Acquisitions & Divestitures (Ta

Acquisitions & Divestitures (Tables)	3 Months Ended
	Mar. 31, 2023
2023 Acquisitions
Acquisitions & Divestitures
Business acquisition, purchase price allocation	​ ​ ​ ​ ​ ​ ​ ​ ​ Amortization ​ Total (Dollars in millions) Life (in years) ​ Acquisitions Current assets ​ ​ ​ $ 27 Property, plant and equipment/noncurrent assets ​ ​ ​ 9 Intangible assets: ​ ​ ​ ​ ​ Goodwill N/A ​ 141 Client relationships 7 ​ 34 Completed technology 5-7 ​ 35 Trademarks 2-5 ​ 2 Total assets acquired ​ ​ ​ $ 247 Current liabilities ​ ​ ​ 19 Noncurrent liabilities ​ ​ ​ 2 Total liabilities assumed ​ ​ ​ $ 21 Total purchase price ​ ​ ​ $ 226 N/A - not applicable ​

Other (Income) and Expense (Tab

Other (Income) and Expense (Tables)	3 Months Ended
	Mar. 31, 2023
Other (Income) and Expense.
Schedule of other (income) and expense	​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31: 2023 2022 ​ Other (income) and expense: ​ ​ ​ Foreign currency transaction losses/(gains)* ​ $ 88 ​ $ (176) ​ (Gains)/losses on derivative instruments ​ (142) ​ 102 ​ Interest income ​ (170) ​ (17) ​ Net (gains)/losses from securities and investment assets ​ 5 ​ 218 ** Retirement-related costs/(income) ​ (5) ​ 202 ​ Other È ​ (22) ​ (83) ​ Total other (income) and expense ​ $ (245) ​ $ 246 ​ * The company uses financial hedging instruments to limit specific currency risks related to foreign currency-based transactions. The hedging program does not hedge 100 percent of currency exposures and defers, versus eliminates, the impact of currency. Refer to note 16, “Derivative Financial Instruments,” for additional information on foreign exchange risk. ** Includes an unrealized loss on Kyndryl retained shares of $222 million. See note 5, “Acquisitions & Divestitures,” for additional information. È Other primarily consists of (gains)/losses from divestitures and dispositions of land/buildings.

Earnings Per Share of Common _2

Earnings Per Share of Common Stock (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share of Common Stock
Computation of basic and diluted earnings/(loss) per share	​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions except per share amounts) ​ ​ ​ ​ ​ ​ For the three months ended March 31: 2023 2022 Number of shares on which basic earnings per share is calculated: ​ ​ Weighted-average shares outstanding during period ​ 907,526,887 ​ 899,316,026 Add — Incremental shares under stock-based compensation plans ​ 8,609,239 ​ 8,375,246 Add — Incremental shares associated with contingently issuable shares ​ 1,709,153 ​ 1,534,864 Number of shares on which diluted earnings per share is calculated ​ 917,845,279 ​ 909,226,136 ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ​ $ 934 ​ $ 662 Income/(loss) from discontinued operations, net of tax ​ (7) ​ 71 Net income on which basic earnings per share is calculated ​ $ 927 ​ $ 733 ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ​ $ 934 ​ $ 662 Net income applicable to contingently issuable shares ​ — ​ — Income from continuing operations on which diluted earnings per share is calculated ​ $ 934 ​ $ 662 Income/(loss) from discontinued operations, net of tax, on which diluted earnings per share is calculated ​ (7) ​ 71 Net income on which diluted earnings per share is calculated ​ $ 927 ​ $ 733 ​ ​ ​ ​ ​ ​ ​ Earnings/(loss) per share of common stock: ​ ​ Assuming dilution ​ ​ Continuing operations ​ $ 1.02 ​ $ 0.73 Discontinued operations ​ (0.01) ​ 0.08 Total ​ $ 1.01 ​ $ 0.81 Basic ​ ​ Continuing operations ​ $ 1.03 ​ $ 0.74 Discontinued operations ​ (0.01) ​ 0.08 Total ​ $ 1.02 ​ $ 0.82 ​

Financial Assets & Liabilities

Financial Assets & Liabilities (Tables)	3 Months Ended
	Mar. 31, 2023
Financial Assets & Liabilities
Financial assets and financial liabilities measured at fair value on a recurring basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value ​ ​ ​ ​ ​ ​ Hierarchy ​ At March 31, 2023 ​ At December 31, 2022 (Dollars in millions) Level Assets (5) Liabilities (6) Assets (5) Liabilities (6) Cash equivalents: (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Time deposits and certificates of deposit (2) ​ 2 ​ $ 3,896 ​ $ N/A ​ $ 3,712 ​ $ N/A Money market funds ​ 1 ​ ​ 817 ​ ​ N/A ​ ​ 306 ​ ​ N/A Total cash equivalents ​ ​ ​ $ 4,713 ​ $ N/A ​ $ 4,018 ​ $ N/A Equity investments ​ 1 ​ ​ 1 ​ ​ N/A ​ ​ — ​ ​ N/A Debt securities-current (2)(3) ​ 2 ​ ​ 8,057 ​ ​ N/A ​ ​ 852 ​ ​ N/A Debt securities-noncurrent (2)(4) ​ 2,3 ​ ​ 33 ​ ​ N/A ​ ​ 31 ​ ​ N/A Derivatives designated as hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts ​ 2 ​ ​ 19 ​ ​ 281 ​ ​ 3 ​ ​ 336 Foreign exchange contracts ​ 2 ​ ​ 111 ​ ​ 388 ​ ​ 184 ​ ​ 674 Derivatives not designated as hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign exchange contracts ​ 2 ​ ​ 10 ​ ​ 50 ​ ​ 42 ​ ​ 16 Equity contracts ​ 2 ​ ​ 28 ​ ​ 12 ​ ​ 49 ​ ​ 8 Total ​ ​ ​ $ 12,971 ​ $ 731 ​ $ 5,179 ​ $ 1,034 (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) U.S. treasury bills and term deposits that are reported within marketable securities in the Consolidated Balance Sheet. The March 31, 2023 balance includes proceeds from the first quarter 2023 debt issuances. See note 12, “Borrowings,” for additional information. (4) Includes immaterial activity related to private company investments reported within investments and sundry assets in the Consolidated Balance Sheet. (5) 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 March 31, 2023 were $145 million and $23 million, respectively, and at December 31, 2022 were $271 million and $7 million, respectively. (6) The gross balances of derivative liabilities contained within other accrued expenses and liabilities, and other liabilities in the Consolidated Balance Sheet at March 31, 2023 were $248 million and $483 million, respectively, and at December 31, 2022 were $546 million and $488 million, respectively. ​ N/A - not applicable ​

Financing Receivables (Tables)

Financing Receivables (Tables)	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023: ​ (Loans) ​ Leases ​ Investment ​ Sale* ​ Total Financing receivables, gross ​ $ 7,558 ​ $ 3,853 ​ $ 250 ​ $ 605 ​ $ 12,265 Unearned income ​ ​ (410) ​ (363) ​ ​ — ​ ​ — ​ ​ (773) Unguaranteed residual value ​ ​ — ​ 400 ​ ​ — ​ ​ — ​ ​ 400 Amortized cost ​ $ 7,148 ​ $ 3,890 ​ $ 250 ​ $ 605 ​ $ 11,891 Allowance for credit losses ​ ​ (100) ​ (58) ​ ​ (6) ​ ​ — ​ ​ (164) Total financing receivables, net ​ $ 7,047 ​ $ 3,831 ​ $ 244 ​ $ 605 ​ $ 11,727 Current portion ​ $ 4,369 ​ $ 1,445 ​ $ 244 ​ $ 605 ​ $ 6,662 Noncurrent portion ​ $ 2,678 ​ $ 2,387 ​ $ — ​ $ — ​ $ 5,065 * The carrying value of the receivables classified as held for sale approximates fair value. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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, 2022: ​ (Loans) ​ Leases ​ Investment ​ Sale* ​ Total Financing receivables, gross ​ $ 8,875 ​ $ 4,023 ​ $ 299 ​ $ 939 ​ $ 14,136 Unearned income ​ ​ (439) ​ ​ (351) ​ ​ — ​ ​ — ​ ​ (790) Unguaranteed residual value ​ ​ — ​ 422 ​ ​ — ​ ​ — ​ ​ 422 Amortized cost ​ $ 8,437 ​ $ 4,094 ​ $ 299 ​ $ 939 ​ $ 13,769 Allowance for credit losses ​ ​ (108) ​ (60) ​ ​ (5) ​ ​ — ​ ​ (173) Total financing receivables, net ​ $ 8,329 ​ $ 4,034 ​ $ 293 ​ $ 939 ​ $ 13,596 Current portion ​ $ 5,073 ​ $ 1,485 ​ $ 293 ​ $ 939 ​ $ 7,790 Noncurrent portion ​ $ 3,256 ​ $ 2,549 ​ $ — ​ $ — ​ $ 5,806 * 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 three months ended March 31: ​ 2023 ​ 2022 Commercial financing receivables: ​ ​ ​ ​ ​ ​ Receivables transferred during the period ​ $ 2,233 ​ $ 1,989 Receivables uncollected at end of period* ​ $ 780 ​ $ 724 * Of the total amount of commercial financing receivables sold and derecognized from the Consolidated Balance Sheet, the amounts presented remained uncollected from the business partners as of March 31, 2023 and 2022.
Schedule of financing receivables and allowance for credit losses by class	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ ​ ​ ​ At March 31, 2023: ​ Americas ​ EMEA ​ Asia Pacific ​ Total Amortized cost $ 6,394 ​ $ 3,082 ​ $ 1,561 ​ $ 11,037 Allowance for credit losses: ​ ​ ​ ​ ​ ​ Beginning balance at January 1, 2023 ​ $ 88 ​ $ 60 ​ $ 20 ​ $ 168 Write-offs ​ ​ 0 ​ ​ 0 ​ ​ — ​ ​ 0 Recoveries ​ — ​ 0 ​ ​ 0 ​ ​ 0 Additions/(releases) ​ 0 ​ (13) ​ ​ (1) ​ ​ (13) Other* ​ 4 ​ 0 ​ ​ 0 ​ ​ 4 Ending balance at March 31, 2023 ​ $ 93 ​ $ 47 ​ $ 19 ​ $ 159 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ ​ ​ ​ At December 31, 2022: ​ Americas ​ EMEA ​ Asia Pacific ​ Total Amortized cost $ 7,281 ​ $ 3,546 ​ $ 1,704 ​ $ 12,531 Allowance for credit losses: ​ ​ ​ ​ Beginning balance at January 1, 2022 ​ $ 111 ​ $ 61 ​ $ 23 ​ $ 195 Write-offs ​ ​ (20) ​ ​ (3) ​ ​ (2) ​ ​ (25) Recoveries ​ 1 ​ 0 ​ ​ 4 ​ ​ 5 Additions/(releases) ​ (5) ​ 6 ​ ​ (4) ​ ​ (3) Other* ​ 2 ​ (5) ​ ​ (2) ​ ​ (4) Ending balance at December 31, 2022 ​ $ 88 ​ $ 60 ​ $ 20 ​ $ 168 * 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 March 31, 2023: ​ Cost ​ > 90 Days* ​ Accruing* ​ Accruing ​ Accruing** Americas ​ $ 6,394 ​ $ 183 ​ $ 107 ​ $ 15 ​ $ 76 EMEA ​ 3,082 ​ ​ 47 ​ ​ 16 ​ ​ 16 ​ ​ 32 Asia Pacific ​ 1,561 ​ ​ 26 ​ ​ 9 ​ ​ 3 ​ ​ 17 Total client financing receivables ​ $ 11,037 ​ $ 257 ​ $ 133 ​ $ 33 ​ $ 124 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Billed Amortized ​ ​ Total ​ Amortized ​ Cost ​ Invoices ​ Cost (Dollars in millions) ​ Amortized ​ Cost ​ > 90 Days and ​ > 90 Days and ​ Not At December 31, 2022: ​ Cost ​ > 90 Days* ​ Accruing* ​ Accruing ​ Accruing** Americas ​ $ 7,281 ​ $ 272 ​ $ 198 ​ $ 22 ​ $ 74 EMEA ​ 3,546 ​ ​ 52 ​ ​ 8 ​ ​ 1 ​ ​ 46 Asia Pacific ​ 1,704 ​ ​ 20 ​ ​ 3 ​ ​ 1 ​ ​ 17 Total client financing receivables ​ $ 12,531 ​ $ 344 ​ $ 208 ​ $ 23 ​ $ 137 * 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 $121 million and $122 million at March 31, 2023 and December 31, 2022, respectively. Financing income recognized on these receivables was immaterial for the three months ended March 31, 2023 and 2022, respectively. ​
Schedule of amortized cost by credit quality indicator	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ Americas EMEA Asia Pacific At March 31, 2023: Aaa – Baa3 Ba1 – D Aaa – Baa3 Ba1 – D Aaa – Baa3 Ba1 – D Vintage year: ​ ​ ​ ​ ​ ​ 2023 ​ $ 295 ​ $ 231 ​ $ 157 ​ $ 130 ​ $ 115 ​ $ 48 2022 ​ ​ 2,840 ​ ​ 764 ​ ​ 1,130 ​ ​ 618 ​ ​ 617 ​ ​ 84 2021 ​ 1,001 ​ ​ 262 ​ ​ 381 ​ ​ 133 ​ ​ 189 ​ ​ 58 2020 ​ 401 ​ ​ 194 ​ ​ 170 ​ ​ 127 ​ ​ 183 ​ ​ 37 2019 ​ 205 ​ ​ 60 ​ ​ 94 ​ ​ 78 ​ ​ 103 ​ ​ 18 2018 and prior ​ 72 ​ ​ 68 ​ ​ 23 ​ ​ 42 ​ ​ 77 ​ ​ 31 Total ​ $ 4,815 ​ $ 1,579 ​ $ 1,955 ​ $ 1,127 ​ $ 1,285 ​ $ 276 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ Americas ​ EMEA ​ Asia Pacific At December 31, 2022: Aaa – Baa3 Ba1 – D Aaa – Baa3 Ba1 – D Aaa – Baa3 Ba1 – D Vintage year: ​ ​ ​ ​ ​ ​ 2022 ​ $ 3,316 ​ $ 1,097 ​ $ 1,447 ​ $ 704 ​ $ 799 ​ $ 96 2021 ​ 1,197 ​ ​ 323 ​ ​ 451 ​ ​ 159 ​ ​ 203 ​ ​ 65 2020 ​ 559 ​ ​ 217 ​ ​ 258 ​ ​ 158 ​ ​ 210 ​ ​ 49 2019 ​ 251 ​ ​ 91 ​ ​ 161 ​ ​ 99 ​ ​ 127 ​ ​ 22 2018 ​ 128 ​ ​ 26 ​ ​ 42 ​ ​ 16 ​ ​ 84 ​ ​ 21 2017 and prior ​ 32 ​ ​ 45 ​ ​ 14 ​ ​ 38 ​ ​ 12 ​ ​ 17 Total ​ $ 5,482 ​ $ 1,800 ​ $ 2,373 ​ $ 1,173 ​ $ 1,434 ​ $ 269 ​

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2023
Leases
Schedule of amounts included in the Consolidated Income Statement related to lessor activity	​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ For the three months ended March 31: ​ 2023 2022 Lease income — ​ ​ ​ Sales-type lease selling price ​ $ 90 ​ $ 54 Less: Carrying value of underlying assets* ​ (30) ​ (19) Gross profit ​ $ 61 ​ $ 36 Interest income on lease receivables ​ 59 ​ 45 Total sales-type and direct financing lease income ​ $ 119 ​ $ 81 Lease income — ​ 26 ​ 30 Variable lease income ​ 21 ​ 28 Total lease income ​ $ 166 ​ $ 138 * Excludes unguaranteed residual value.

Intangible Assets Including G_2

Intangible Assets Including Goodwill (Tables)	3 Months Ended
	Mar. 31, 2023
Intangible Assets Including Goodwill
Intangible asset balances by major asset class	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At March 31, 2023 ​ Gross Carrying Accumulated Net Carrying (Dollars in millions) ​ Amount ​ Amortization ​ Amount* Intangible asset class: ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized software ​ $ 1,638 ​ $ (675) ​ $ 962 Client relationships ​ 8,327 ​ (2,890) ​ 5,438 Completed technology ​ 5,097 ​ (2,025) ​ 3,073 Patents/trademarks ​ 1,799 ​ (370) ​ 1,429 Other** ​ 19 ​ (15) ​ 4 Total ​ $ 16,880 ​ $ (5,976) ​ $ 10,905 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, 2022 ​ Gross Carrying Accumulated Net Carrying (Dollars in millions) ​ Amount ​ Amortization ​ Amount* Intangible asset class: ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized software ​ $ 1,650 ​ $ (705) ​ $ 945 Client relationships ​ 8,559 ​ (2,951) ​ 5,608 Completed technology ​ 5,220 ​ (2,045) ​ 3,175 Patents/trademarks ​ 2,140 ​ (688) ​ 1,452 Other** ​ 19 ​ (15) ​ 4 Total ​ $ 17,588 ​ $ (6,404) ​ $ 11,184 * Amounts as of March 31, 2023 and December 31, 2022 include an increase in net intangible asset balances of $30 million and a decrease of $198 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 2023 ​ $ 441 ​ $ 1,173 ​ $ 1,615 2024 ​ 374 ​ 1,553 ​ 1,927 2025 ​ 138 ​ 1,535 ​ 1,673 2026 ​ 9 ​ 1,512 ​ 1,520 2027 ​ — ​ 1,492 ​ 1,492 Thereafter ​ ​ — ​ ​ 2,678 ​ 2,678 ​
Changes in goodwill balances by reportable segment	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Currency ​ ​ ​ ​ ​ ​ ​ ​ Purchase ​ ​ ​ Translation ​ ​ (Dollars in millions) ​ Balance ​ Goodwill ​ Price ​ ​ ​ and Other ​ Balance Segment ​ 1/1/2023 ​ Additions ​ Adjustments ​ Divestitures ​ Adjustments* ​ 3/31/2023 Software ​ $ 43,657 ​ $ 141 ​ $ 1 ​ $ — ​ $ 66 ​ $ 43,865 Consulting ​ 7,928 ​ — ​ 5 ​ — ​ 29 ​ 7,962 Infrastructure ​ ​ 4,363 ​ ​ — ​ ​ — ​ ​ — ​ ​ 2 ​ ​ 4,366 Other ​ — ​ — ​ — ​ — ​ — ​ — Total ​ $ 55,949 ​ $ 141 ​ $ 6 ​ $ — ​ $ 97 ​ $ 56,193 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Currency ​ ​ ​ ​ ​ ​ ​ ​ Purchase ​ ​ ​ Translation ​ ​ (Dollars in millions) ​ Balance ​ Goodwill ​ Price ​ ​ ​ and Other ​ Balance Segment ​ 1/1/2022 ​ Additions ​ Adjustments ​ Divestitures ​ Adjustments* ​ 12/31/2022 Software ​ $ 43,966 ​ $ 568 ​ $ (118) ​ $ — ​ $ (760) ​ $ 43,657 Consulting ​ 6,797 ​ 1,366 ​ (42) ​ — ​ (192) ​ 7,928 Infrastructure ​ 4,396 ​ — ​ — ​ (1) ​ (32) ​ 4,363 Other** ​ 484 ​ — ​ — ​ (484) ​ — ​ — Total ​ $ 55,643 ​ $ 1,934 ​ $ (159) ​ $ (485) ​ $ (984) ​ $ 55,949 * Primarily driven by foreign currency translation. ** The company derecognized goodwill related to the divestiture of its healthcare software assets in the second quarter of 2022. ​

Borrowings (Tables)

Borrowings (Tables)	3 Months Ended
	Mar. 31, 2023
Borrowings
Short-Term Debt	​ ​ ​ ​ ​ ​ ​ ​ ​ At March 31, At December 31, (Dollars in millions) ​ 2023 ​ 2022 Short-term loans ​ $ 6 ​ $ 8 Long-term debt — ​ 4,881 ​ 4,751 Total ​ $ 4,887 ​ $ 4,760 ​
Long-Term Debt, Pre-Swap Borrowing	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance Balance (Dollars in millions) ​ Maturities ​ 3/31/2023 ​ 12/31/2022 U.S. dollar debt (weighted-average interest rate at March 31, 2023):* ​ ​ 3.4% 2023 ​ $ 1,514 ​ $ 1,529 3.3% 2024 ​ 5,007 ​ 5,009 5.1% 2025 ​ 1,603 ​ 1,603 3.5% 2026 ​ 5,201 ​ 4,351 3.1% 2027 ​ 3,620 ​ 3,620 5.0% 2028 ​ ​ 1,313 ​ 313 3.5% ​ 2029 ​ ​ 3,250 ​ ​ 3,250 2.0% ​ 2030 ​ ​ 1,350 ​ ​ 1,350 4.4% 2032 ​ 1,850 ​ 1,850 4.8% 2033 ​ 750 ​ — 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 4.2% ​ 2052 ​ ​ 1,400 ​ ​ 1,400 5.1% ​ 2053 ​ ​ 650 ​ ​ — 7.1% 2096 ​ 316 ​ 316 ​ ​ ​ ​ $ 36,836 ​ $ 33,605 Other currencies (weighted-average interest rate at March 31, 2023, in parentheses):* ​ ​ Euro (1.8%) 2023–2043 ​ $ 20,103 ​ $ 17,087 Pound sterling (4.9%) 2038 ​ 928 ​ — Japanese yen (0.5%) 2024–2028 ​ 1,327 ​ 694 Other (16.1%) 2023–2026 ​ 305 ​ 361 ​ ​ ​ ​ $ 59,499 ​ $ 51,747 Finance lease obligations (3.6%) ​ 2023–2030 ​ ​ 232 ​ ​ 239 ​ ​ ​ ​ $ 59,731 ​ $ 51,986 Less: net unamortized discount ​ 866 ​ 835 Less: net unamortized debt issuance costs ​ 170 ​ 138 Add: fair value adjustment** ​ 11 ​ (73) ​ ​ ​ ​ $ 58,707 ​ $ 50,940 Less: current maturities ​ 4,881 ​ 4,751 Total ​ $ 53,826 ​ $ 46,189 * 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 2023 ​ $ 2,812 2024 ​ 6,378 2025 ​ 4,935 2026 ​ 5,550 2027 ​ 5,812 Thereafter ​ 34,243 Total ​ $ 59,731 ​
Interest on Debt	​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ ​ For the three months ended March 31: ​ 2023 ​ 2022 Cost of financing ​ $ 90 ​ $ 82 Interest expense ​ 367 ​ 311 Interest capitalized ​ 4 ​ 2 Total interest paid and accrued ​ $ 462 ​ $ 395 ​

Commitments (Tables)

Commitments (Tables)	3 Months Ended
	Mar. 31, 2023
Commitments
Changes in warranty liabilities	Standard Warranty Liability ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) 2023 2022 Balance at January 1 ​ $ 79 ​ $ 77 Current period accruals ​ 17 ​ 14 Accrual adjustments to reflect actual experience ​ (17) ​ (2) Charges incurred ​ (21) ​ (20) Balance at March 31 ​ $ 58 ​ $ 69 Extended Warranty Liability (Deferred Income) ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) 2023 2022 Balance at January 1 ​ $ 272 ​ $ 350 Revenue deferred for new extended warranty contracts ​ 9 ​ 18 Amortization of deferred revenue ​ (37) ​ (44) Other* ​ 1 ​ (1) Balance at March 31 ​ $ 244 ​ $ 323 Current portion ​ $ 129 ​ $ 155 Noncurrent portion ​ $ 116 ​ $ 168 * Other primarily consists of foreign currency translation adjustments.

Equity Activity (Tables)

Equity Activity (Tables)	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023: ​ Amount ​ Benefit ​ Amount Other comprehensive income/(loss): ​ ​ ​ Foreign currency translation adjustments ​ $ (87) ​ $ 56 ​ $ (30) Net changes related to available-for-sale securities: ​ ​ ​ Unrealized gains/(losses) arising during the period ​ $ 15 ​ $ (4) ​ $ 11 Reclassification of (gains)/losses to other (income) and expense ​ — ​ ​ — ​ ​ — Total net changes related to available-for-sale securities ​ $ 15 ​ $ (4) ​ $ 11 Unrealized gains/(losses) on cash flow hedges: ​ ​ ​ Unrealized gains/(losses) arising during the period ​ $ (29) ​ $ 6 ​ $ (23) Reclassification of (gains)/losses to: ​ ​ ​ Cost of services ​ 2 ​ 0 ​ 2 Cost of sales ​ (14) ​ 4 ​ (10) Cost of financing ​ 5 ​ (1) ​ 4 SG&A expense ​ (10) ​ 3 ​ (7) Other (income) and expense ​ (126) ​ 32 ​ (94) Interest expense ​ 21 ​ (5) ​ 16 Total unrealized gains/(losses) on cash flow hedges ​ $ (151) ​ $ 38 ​ $ (113) Retirement-related benefit plans*: ​ ​ ​ Prior service costs/(credits) ​ $ — ​ $ 1 ​ $ 1 Net (losses)/gains arising during the period ​ ​ 2 ​ ​ 0 ​ ​ 2 Curtailments and settlements ​ (1) ​ ​ 0 ​ ​ (1) Amortization of prior service (credits)/costs ​ (2) ​ ​ 1 ​ ​ (2) Amortization of net (gains)/losses ​ 131 ​ ​ (38) ​ ​ 93 Total retirement-related benefit plans ​ $ 130 ​ $ (38) ​ $ 92 Other comprehensive income/(loss) ​ $ (93) ​ $ 53 ​ $ (40) * 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 March 31, 2022: ​ Amount ​ Benefit ​ Amount Other comprehensive income/(loss): ​ ​ ​ Foreign currency translation adjustments ​ $ 442 ​ $ (136) ​ $ 306 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 ​ $ 60 ​ $ (16) ​ $ 44 Reclassification of (gains)/losses to: ​ ​ ​ ​ ​ ​ Cost of services ​ (15) ​ 4 ​ (11) Cost of sales ​ (12) ​ 4 ​ (9) Cost of financing ​ 5 ​ (1) ​ 4 SG&A expense ​ (6) ​ 2 ​ (4) Other (income) and expense ​ 7 ​ (2) ​ 5 Interest expense ​ 21 ​ (5) ​ 15 Total unrealized gains/(losses) on cash flow hedges ​ $ 59 ​ $ (15) ​ $ 44 Retirement-related benefit plans*: ​ ​ ​ Prior service costs/(credits) ​ $ (5) ​ $ 5 ​ $ 0 Net (losses)/gains arising during the period ​ ​ 9 ​ ​ (4) ​ ​ 5 Curtailments and settlements ​ 8 ​ ​ (2) ​ ​ 6 Amortization of prior service (credits)/costs ​ 7 ​ ​ (2) ​ ​ 5 Amortization of net (gains)/losses ​ 468 ​ ​ (131) ​ ​ 337 Total retirement-related benefit plans ​ $ 486 ​ $ (134) ​ $ 352 Other comprehensive income/(loss) ​ $ 987 ​ $ (285) ​ $ 703 * 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, 2023 ​ $ (135) ​ $ (3,591) ​ $ (13,013) ​ $ (1) ​ $ (16,740) Other comprehensive income before reclassifications ​ (23) ​ (30) ​ 2 ​ 11 ​ (39) Amount reclassified from accumulated other comprehensive income/(loss) ​ (90) ​ — ​ 90 ​ — ​ 0 Total change for the period ​ $ (113) ​ $ (30) ​ $ 92 ​ $ 11 ​ $ (40) March 31, 2023 ​ $ (248) ​ $ (3,621) ​ $ (12,921) ​ $ 10 ​ $ (16,780) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ 44 ​ 306 ​ 5 ​ 0 ​ 355 Amount reclassified from accumulated other comprehensive income/(loss) ​ 0 ​ — ​ 348 ​ — ​ 348 Total change for the period ​ $ 44 ​ $ 306 ​ $ 352 ​ $ 0 ​ $ 703 March 31, 2022 ​ $ 26 ​ $ (3,056) ​ $ (19,502) ​ $ (1) ​ $ (22,532) * 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)	3 Months Ended
	Mar. 31, 2023
Derivative Financial Instruments
Amounts related to cumulative basis adjustments for fair value hedges	​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, December 31, (Dollars in millions) ​ 2023 ​ 2022 Short-term debt: ​ ​ Carrying amount of the hedged item ​ $ (204) ​ $ (199) Cumulative hedging adjustments included in the carrying amount — assets/(liabilities)* ​ $ (4) ​ $ 1 Long-term debt: ​ ​ Carrying amount of the hedged item ​ $ (6,693) ​ $ (6,216) Cumulative hedging adjustments included in the carrying amount — assets/(liabilities)* ​ $ (8) ​ $ 72 * Includes ($238) million and ($250) million of hedging adjustments on discontinued hedging relationships at March 31, 2023 and December 31, 2022, respectively.
Effect of derivative instruments in the Consolidated Income Statement	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gains/(Losses) of (Dollars in millions) ​ Total ​ Total Hedge Activity For the three months ended March 31: 2023 2022 2023 2022 Cost of services ​ $ 5,310 ​ $ 5,349 ​ $ (2) ​ $ 15 Cost of sales ​ $ 1,322 ​ $ 1,415 ​ $ 14 ​ $ 12 Cost of financing ​ $ 110 ​ $ 98 ​ $ (3) ​ $ (2) SG&A expense ​ $ 4,853 ​ $ 4,597 ​ $ 59 ​ $ (70) Other (income) and expense ​ $ (245) ​ $ 246 ​ $ 142 ​ $ (102) Interest expense ​ $ 367 ​ $ 311 ​ $ (14) ​ $ (6) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 March 31: Line Item 2023 2022 2023 2022 Derivative instruments in fair value hedges (1): ​ ​ ​ ​ Interest rate contracts Cost of financing ​ $ 13 ​ $ (1) ​ $ (17) ​ $ 4 ​ Interest expense ​ 53 ​ (4) ​ (68) ​ 16 Derivative instruments not designated as hedging instruments: ​ ​ ​ ​ Foreign exchange contracts Other (income) and expense ​ 16 ​ (95) ​ N/A ​ N/A Equity contracts SG&A expense ​ 49 ​ (76) ​ N/A ​ N/A Total ​ $ 131 ​ $ (176) ​ $ (84) ​ $ 20 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 March 31: 2023 2022 Line Item 2023 2022 2023 2022 Derivative instruments in cash flow hedges: ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts ​ $ — ​ $ — Cost of financing ​ $ (1) ​ $ (1) ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ Interest expense ​ (3) ​ (3) ​ — ​ — ​ Foreign exchange contracts ​ (29) ​ 60 Cost of services ​ (2) ​ 15 ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ Cost of sales ​ 14 ​ 12 ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ Cost of financing ​ (4) ​ (5) ​ ​ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ SG&A expense ​ 10 ​ 6 ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ Other (income) and expense ​ 126 ​ (7) ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ Interest expense ​ (17) ​ (17) ​ ​ — ​ ​ — ​ Instruments in net investment hedges (4): ​ ​ ​ ​ ​ ​ ​ ​ Foreign exchange contracts ​ (224) ​ 541 Cost of financing ​ — ​ — ​ 5 ​ 1 ​ ​ ​ ​ ​ ​ Interest expense ​ — ​ — ​ 22 ​ 2 ​ Total ​ $ (253) ​ $ 601 ​ $ 122 ​ $ 1 ​ $ 28 ​ $ 3 ​ (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)	3 Months Ended
	Mar. 31, 2023
Stock-Based Compensation
Stock-based compensation cost included in income from continuing operations	​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ ​ For the three months ended March 31: ​ 2023 ​ 2022 Cost ​ $ 46 ​ $ 40 Selling, general and administrative ​ 149 ​ 136 Research, development and engineering ​ 74 ​ 57 Pre-tax stock-based compensation cost ​ $ 268 ​ $ 234 Income tax benefits ​ (67) ​ (57) Total net stock-based compensation cost ​ $ 201 ​ $ 177 ​

Retirement-Related Benefits (Ta

Retirement-Related Benefits (Tables)	3 Months Ended
	Mar. 31, 2023
Retirement-Related Benefits
Pre-tax cost for all retirement-related plans	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Yr. to Yr. (Dollars in millions) ​ ​ ​ ​ ​ ​ ​ Percent For the three months ended March 31: ​ 2023 ​ 2022 ​ Change Retirement-related plans — ​ ​ ​ Defined benefit and contribution pension plans — ​ $ 281 ​ $ 478 (41.1) % Nonpension postretirement plans — ​ 32 ​ 33 (1.6) ​ Total ​ $ 314 ​ $ 510 (38.5) ​ ​
Components of net periodic (income)/cost of the company's retirement-related benefit plans	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in millions) ​ U.S. Plans ​ Non-U.S. Plans For the three months ended March 31: 2023 2022 2023 2022 Service cost ​ $ — ​ $ — ​ $ 44 ​ $ 64 Interest cost* ​ 272 ​ 302 ​ 288 ​ 139 Expected return on plan assets* ​ (382) ​ (475) ​ (356) ​ (274) Amortization of prior service costs/(credits)* ​ — ​ 2 ​ 5 ​ 4 Recognized actuarial losses* ​ 27 ​ 179 ​ 102 ​ 278 Curtailments and settlements* ​ — ​ — ​ (1) ​ 8 Multi-employer plans ​ — ​ — ​ 4 ​ 4 Other costs/(credits)* ​ — ​ — ​ 9 ​ 9 Total net periodic pension (income)/cost of defined benefit plans ​ $ (82) ​ $ 8 ​ $ 95 ​ $ 231 Cost of defined contribution plans ​ 172 ​ 141 ​ 97 ​ 98 Total defined benefit and contribution pension plans cost recognized in the Consolidated Income Statement ​ $ 90 ​ $ 149 ​ $ 192 ​ $ 328 * 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 March 31: 2023 2022 2023 2022 Service cost ​ $ 1 ​ $ 1 ​ $ 1 ​ $ 1 Interest cost* ​ 29 ​ 18 ​ 9 ​ 9 Expected return on plan assets* ​ — ​ — ​ (1) ​ 0 Amortization of prior service costs/(credits)* ​ (7) ​ 1 ​ 0 ​ 0 Recognized actuarial losses* ​ — ​ 2 ​ 0 ​ 1 Curtailments and settlements* ​ — ​ — ​ — ​ — Total nonpension postretirement plans cost recognized in the Consolidated Income Statement ​ $ 23 ​ $ 23 ​ $ 9 ​ $ 10 * 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 three months ended March 31: ​ ​ 2023 2022 U.S. nonpension postretirement benefit plan ​ $ 109 ​ $ 120 Non-U.S. DB and multi-employer plans* ​ 7 ​ 35 Total plan contributions ​ $ 117 ​ $ 154 * Amounts reported net of refunds. ​

Basis of Presentation (Details)

Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Change in income from continuing operations before income taxes	$ 74
Change in income from continuing operations before income taxes, basic and diluted per share amount	$ 0.06
Provision for/(benefit from) income taxes	$ 124	$ (39)
Effective tax rate (as a percent)	11.70%	(6.30%)
Contractual obligation, average payment terms	90 days
Commitment with third party financial institutions
Contractual obligations	$ 113			$ 60
Other (income) and expenses
Noncontrolling interest amounts, net of tax	$ 4.6	$ 4.9
Service Life | Server and Network Equipment New Assets | Expected
Estimated useful lives			6 years
Service Life | Server and Network Equipment Used Assets | Expected
Estimated useful lives			4 years
Previously Reported | Service Life | Server and Network Equipment New Assets
Estimated useful lives				5 years
Previously Reported | Service Life | Server and Network Equipment Used Assets
Estimated useful lives				3 years

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue by Major Products and Service Offerings (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue by Major Products/Service Offerings
Total Revenue	$ 14,252	$ 14,197
Business Segments
Revenue by Major Products/Service Offerings
Total Revenue	14,177	13,973
Other
Revenue by Major Products/Service Offerings
Revenue	75	224
Software | Business Segments
Revenue by Major Products/Service Offerings
Revenue	5,921	5,772
Total Revenue	5,921	5,772
Consulting | Business Segments
Revenue by Major Products/Service Offerings
Revenue	4,962	4,829
Total Revenue	4,962	4,829
Infrastructure | Business Segments
Revenue by Major Products/Service Offerings
Revenue	3,098	3,219
Total Revenue	3,098	3,219
Financing | Business Segments
Revenue by Major Products/Service Offerings
Financial Services Revenue	196	154
Total Revenue	196	154
Hybrid Platform & Solutions | Software | Business Segments
Revenue by Major Products/Service Offerings
Revenue	4,179	4,080
Transaction Processing | Software | Business Segments
Revenue by Major Products/Service Offerings
Revenue	1,742	1,692
Business Transformation | Consulting | Business Segments
Revenue by Major Products/Service Offerings
Revenue	2,283	2,255
Application Operations | Consulting | Business Segments
Revenue by Major Products/Service Offerings
Revenue	1,736	1,619
Technology Consulting | Consulting | Business Segments
Revenue by Major Products/Service Offerings
Revenue	943	955
Hybrid Infrastructure | Infrastructure | Business Segments
Revenue by Major Products/Service Offerings
Revenue	1,709	1,700
Infrastructure Support | Infrastructure | Business Segments
Revenue by Major Products/Service Offerings
Revenue	$ 1,389	$ 1,519

Revenue Recognition - Disaggr_2

Revenue Recognition - Disaggregation of Revenue by Geography (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue by Geography
Revenues	$ 14,252	$ 14,197
Americas
Revenue by Geography
Revenues	7,078	7,056
EMEA
Revenue by Geography
Revenues	4,331	4,231
Asia Pacific
Revenue by Geography
Revenues	$ 2,843	$ 2,910

Revenue Recognition - Remaining

Revenue Recognition - Remaining Performance Obligations (Details) $ in Billions	3 Months Ended
	Mar. 31, 2023 USD ($)
Revenue Recognition
Practical expedient, remaining performance obligations	true
Remaining performance obligations related to customer contracts that are unsatisfied or partially unsatisfied	$ 58

Revenue Recognition - Remaini_2

Revenue Recognition - Remaining Performance Obligations, Expected Timing of Satisfaction (Details)	Mar. 31, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
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]: 2025-04-01
Remaining Performance Obligations
Percentage of remaining performance obligation expected to be recognized	27%
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01
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]: 2025-04-01
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) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Revenue Recognition
Impact to revenue from performance obligations satisfied (or partially satisfied) in previous periods	$ (47)

Revenue Recognition - Reconcili

Revenue Recognition - Reconciliation of Contract Balances (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Reconciliation of Contract Balances
Notes and accounts receivable-trade (net of allowances of $250 in 2023 and $233 in 2022)	$ 5,757	$ 6,541
Notes and accounts receivable - trade, allowances	250	233
Contract assets	461	464
Deferred income (current)	13,220	12,032
Deferred income (noncurrent)	3,443	$ 3,499
Revenue recognized that was included in deferred income at the beginning of the period	$ 3,900

Revenue Recognition - Trade All

Revenue Recognition - Trade Allowance for Credit Losses (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Roll forward of notes and accounts receivable - trade allowance for credit losses
Allowance for Credit Loss, Beginning Balance	$ 233	$ 218
Additions / (Releases)	23	59
Write-offs	(8)	(31)
Foreign currency and Other	1	(14)
Allowance for Credit Loss, Ending Balance	$ 250	$ 233

Segments - Results of Continuin

Segments - Results of Continuing Operations (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Information
Revenue	$ 14,252	$ 14,197
Pre-tax income from continuing operations	1,058	623
Business Segments
Segment Information
Revenue	14,177	13,973
Pre-tax income from continuing operations	$ 1,863	$ 1,766
Revenue year-to-year change (as a percent)	1.50%
Pre-tax income year-to-year change (as a percent)	5.50%
Pre-tax income margin (as a percent)	13.10%	12.60%
Business Segments | Software
Segment Information
Revenue	$ 5,921	$ 5,772
Pre-tax income from continuing operations	$ 1,164	$ 1,134
Revenue year-to-year change (as a percent)	2.60%
Pre-tax income year-to-year change (as a percent)	2.70%
Pre-tax income margin (as a percent)	19.70%	19.70%
Business Segments | Consulting
Segment Information
Revenue	$ 4,962	$ 4,829
Pre-tax income from continuing operations	$ 382	$ 348
Revenue year-to-year change (as a percent)	2.80%
Pre-tax income year-to-year change (as a percent)	9.60%
Pre-tax income margin (as a percent)	7.70%	7.20%
Business Segments | Infrastructure
Segment Information
Revenue	$ 3,098	$ 3,219
Pre-tax income from continuing operations	$ 216	$ 199
Revenue year-to-year change (as a percent)	(3.70%)
Pre-tax income year-to-year change (as a percent)	8.50%
Pre-tax income margin (as a percent)	7%	6.20%
Business Segments | Financing
Segment Information
Revenue	$ 196	$ 154
Pre-tax income from continuing operations	$ 100	$ 84
Revenue year-to-year change (as a percent)	27.30%
Pre-tax income year-to-year change (as a percent)	19.60%
Pre-tax income margin (as a percent)	51.30%	54.60%

Segments - Revenue Reconciliati

Segments - Revenue Reconciliation (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue
Revenue	$ 14,252	$ 14,197
Business Segments
Revenue
Revenue	14,177	13,973
Other
Revenue
Other - divested businesses	0	154
Other revenue	$ 75	$ 70

Segments - Pre-Tax Income Recon

Segments - Pre-Tax Income Reconciliation (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Pre-tax income from continuing operations
Amortization of acquired intangible assets	$ (392)	$ (461)
Acquisition-related (charges)/income	(3)	(7)
Non-operating retirement-related (costs)/income	5	(202)
Kyndryl-related impacts		(222)
Workforce rebalancing charges	(259)
Other - divested businesses	(4)	(52)
Income from continuing operations before income taxes	1,058	623
Business Segments
Pre-tax income from continuing operations
Workforce rebalancing charges		(5)
Income from continuing operations before income taxes	1,863	1,766
Unallocated corporate amounts
Pre-tax income from continuing operations
Income from continuing operations before income taxes	$ (151)	$ (199)

Acquisitions & Divestitures - (

Acquisitions & Divestitures - (Details) - 2023 Acquisitions $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($) item	Dec. 31, 2023 USD ($)
Acquisitions
Percentage of business acquired (as a percent)		100%
Cash consideration payable		$ 187
Restricted cash
Acquisitions
Cash to be remitted			$ 173
Expected
Acquisitions
Cash to be remitted	$ 14
Software
Acquisitions
Number of acquisitions | item		3
Aggregate acquisitions cost		$ 226

Acquisitions & Divestitures -Pu

Acquisitions & Divestitures -Purchase Price Allocation (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Acquisitions
Goodwill	$ 56,193	$ 55,949	$ 55,643
2023 Acquisitions
Acquisitions
Current assets	27
Property, plant, and equipment/noncurrent assets	9
Goodwill	141
Total assets acquired	247
Current liabilities	19
Noncurrent liabilities	2
Total liabilities assumed	21
Total purchase price	$ 226
Weighted average useful life	6 years 7 months 6 days
2023 Acquisitions | Client relationships
Acquisitions
Intangible assets	$ 34
Weighted average useful life	7 years
2023 Acquisitions | Completed technology
Acquisitions
Intangible assets	$ 35
2023 Acquisitions | Completed technology | Minimum
Acquisitions
Weighted average useful life	5 years
2023 Acquisitions | Completed technology | Maximum
Acquisitions
Weighted average useful life	7 years
2023 Acquisitions | Trademarks
Acquisitions
Intangible assets	$ 2
2023 Acquisitions | Trademarks | Minimum
Acquisitions
Weighted average useful life	2 years
2023 Acquisitions | Trademarks | Maximum
Acquisitions
Weighted average useful life	5 years

Acquisitions & Divestitures - D

Acquisitions & Divestitures - Divestitures (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Nov. 02, 2022	Nov. 03, 2021
Divestitures
Income/(loss) from discontinued operations, net of tax	$ (7)	$ 71
Kyndryl Holdings, Inc
Divestitures
Kyndryl stock distributed to IBM stockholders				80.10%
Ownership interest by stockholders (in percent)			0%	19.90%

Other (Income) and Expense (Det

Other (Income) and Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Other (Income) and Expense.
Foreign currency transaction losses/(gains)	$ 88	$ (176)
(Gains)/losses on derivative instruments	(142)	102
Interest income	(170)	(17)
Net (gains)/losses from securities and investment assets	5	218
Retirement-related costs/(income)	(5)	202
Other	(22)	(83)
Total other (income) and expense	$ (245)	246
Unrealized loss on Kyndryl retained shares		$ 222

Earnings Per Share of Common _3

Earnings Per Share of Common Stock - Computation (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Number of shares on which basic earnings per share is calculated:
Weighted-average shares outstanding during period (in shares)	907,526,887	899,316,026
Add - Incremental shares under stock-based compensation plans (in shares)	8,609,239	8,375,246
Add - Incremental shares associated with contingently issuable shares (in shares)	1,709,153	1,534,864
Number of shares on which diluted earnings per share is calculated (in shares)	917,845,279	909,226,136
Net income on which basic earnings per share is calculated
Income from continuing operations	$ 934	$ 662
Income/(loss) from discontinued operations, net of tax	(7)	71
Net income on which basic earnings per share is calculated	927	733
Net income on which diluted earnings per share is calculated
Income from continuing operations	934	662
Income from continuing operations on which diluted earnings per share is calculated	934	662
Income/(loss) from discontinued operations, net of tax, on which basic and diluted earnings per share is calculated	(7)	71
Net income on which diluted earnings per share is calculated	$ 927	$ 733
Assuming dilution
Continuing operations (in dollars per share)	$ 1.02	$ 0.73
Discontinued operations (in dollars per share)	(0.01)	0.08
Total (in dollars per share)	1.01	0.81
Basic
Continuing operations (in dollars per share)	1.03	0.74
Discontinued operations (in dollars per share)	(0.01)	0.08
Total (in dollars per share)	$ 1.02	$ 0.82

Earnings Per Share of Common _4

Earnings Per Share of Common Stock - Antidilutive Stock Options (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Stock options
Antidilutive stock options
Outstanding stock options not included in the computation of diluted earnings per share (in shares)	960,929	1,163,321

Financial Assets & Liabilitie_2

Financial Assets & Liabilities - Impairment (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Financial Assets & Liabilities
Impairment for credit losses	$ 0	$ 0

Financial Assets & Liabilitie_3

Financial Assets & Liabilities - Fair Value Measurements (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Financial assets and financial liabilities measured at fair value on a recurring basis:
Debt securities - current	$ 8,057	$ 852
Recurring
Financial assets and financial liabilities measured at fair value on a recurring basis:
Cash equivalents	4,713	4,018
Total assets	12,971	5,179
Total liabilities	731	1,034
Recurring | Prepaid expenses and other current assets
Financial assets and financial liabilities measured at fair value on a recurring basis:
Derivative assets	145	271
Recurring | Investments and sundry assets
Financial assets and financial liabilities measured at fair value on a recurring basis:
Derivative assets	23	7
Recurring | Other accrued expenses and liabilities
Financial assets and financial liabilities measured at fair value on a recurring basis:
Derivative liabilities	248	546
Recurring | Other liabilities.
Financial assets and financial liabilities measured at fair value on a recurring basis:
Derivative liabilities	483	488
Recurring | Level 1
Financial assets and financial liabilities measured at fair value on a recurring basis:
Equity investments	1
Recurring | Level 1 | Money market funds
Financial assets and financial liabilities measured at fair value on a recurring basis:
Cash equivalents	817	306
Recurring | Level 2
Financial assets and financial liabilities measured at fair value on a recurring basis:
Debt securities - current	8,057	852
Recurring | Level 2 | Interest rate contracts
Financial assets and financial liabilities measured at fair value on a recurring basis:
Derivatives designated as hedging - Assets	19	3
Derivatives designated as hedging - Liabilities	281	336
Recurring | Level 2 | Foreign exchange contracts
Financial assets and financial liabilities measured at fair value on a recurring basis:
Derivatives designated as hedging - Assets	111	184
Derivatives designated as hedging - Liabilities	388	674
Derivatives not designated as hedging - Assets	10	42
Derivatives not designated as hedging - Liabilities	50	16
Recurring | Level 2 | Equity contracts
Financial assets and financial liabilities measured at fair value on a recurring basis:
Derivatives not designated as hedging - Assets	28	49
Derivatives not designated as hedging - Liabilities	12	8
Recurring | Level 2 | Time deposits and certificates of deposit
Financial assets and financial liabilities measured at fair value on a recurring basis:
Cash equivalents	3,896	3,712
Recurring | Level 2 And 3
Financial assets and financial liabilities measured at fair value on a recurring basis:
Debt securities - noncurrent	$ 33	$ 31

Financial Assets & Liabilitie_4

Financial Assets & Liabilities - Not Measured at Fair Value (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Long-Term Debt
Long-term debt	$ 53,826	$ 46,189
Fair value of long-term debt	$ 50,811	$ 42,514

Financing Receivables - Payment

Financing Receivables - Payment Terms (Details)	3 Months Ended
	Mar. 31, 2023
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	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Components of the company's financing receivables
Net investment in lease, gross	$ 3,853	$ 4,023
Net investment in lease, unearned income	(363)	(351)
Net investment in lease, unguaranteed residual value	400	422
Net investment in lease, amortized cost	3,890	4,094
Net investment in lease, allowance for credit loss	(58)	(60)
Total net investment in lease, net	3,831	4,034
Financing receivable and net investment in lease, gross	12,265	14,136
Financing receivable and net investment in lease, unearned income	(773)	(790)
Financing receivable and net investment in lease, unguaranteed residual value	400	422
Financing receivable and net investment in lease, amortized cost	11,891	13,769
Financing receivable and net investment in lease, allowance for credit loss	(164)	(173)
Financing receivable and net investment in lease, net	11,727	13,596
Asset Pledged as Collateral
Components of the company's financing receivables
Amortized Cost	283	349
Current Assets
Components of the company's financing receivables
Net investment in lease, current	1,445	1,485
Financing receivable and net investment in lease, net	6,662	7,790
Noncurrent Assets
Components of the company's financing receivables
Net investment in lease, noncurrent	2,387	2,549
Financing receivable and net investment in lease, net	5,065	5,806
Loan receivables
Components of the company's financing receivables
Financing receivables, gross	7,558	8,875
Unearned income	(410)	(439)
Amortized Cost	7,148	8,437
Allowance for credit losses	(100)	(108)
Total financing receivables, net	7,047	8,329
Loan receivables | Current Assets
Components of the company's financing receivables
Total financing receivables, net	4,369	5,073
Loan receivables | Noncurrent Assets
Components of the company's financing receivables
Total financing receivables, net	2,678	3,256
Commercial financing receivables, Held for investment
Components of the company's financing receivables
Financing receivables, gross	250	299
Amortized Cost	250	299
Allowance for credit losses	(6)	(5)
Total financing receivables, net	244	293
Commercial financing receivables, Held for investment | Current Assets
Components of the company's financing receivables
Total financing receivables, net	244	293
Commercial financing receivables, Held for sale
Components of the company's financing receivables
Financing receivables, gross	605	939
Amortized Cost	605	939
Total financing receivables, net	605	939
Commercial financing receivables, Held for sale | Current Assets
Components of the company's financing receivables
Total financing receivables, net	605	939
Client Financing Receivables
Components of the company's financing receivables
Financing receivable and net investment in lease, amortized cost	11,037	12,531
Financing receivable and net investment in lease, allowance for credit loss	$ (159)	$ (168)	$ (195)

Financing Receivables - Transfe

Financing Receivables - Transfer of Financing Assets (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Loans and Leases Receivable Disclosure [Line Items]
Financing receivable transferred net gain loss	$ (24)	$ (11)
Commercial financing receivables
Loans and Leases Receivable Disclosure [Line Items]
Financing receivables transferred	2,233	1,989
Financing receivables transferred and uncollected	$ 780	$ 724

Financing Receivables - By Port

Financing Receivables - By Portfolio Segment (Details) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2023 USD ($) item	Dec. 31, 2022 USD ($) item
Financing receivables
Number of classes of financing receivable | item	3	3
Amortized Cost	$ 11,891	$ 13,769
Allowance for credit losses:
Allowance for credit losses, beginning balance	173
Allowance for credit losses, ending balance	164	173
Client Financing Receivables
Financing receivables
Amortized Cost	11,037	12,531
Allowance for credit losses:
Allowance for credit losses, beginning balance	168	195
Write-offs	0	(25)
Recoveries	0	5
Additions/(releases)	(13)	(3)
Other	4	(4)
Allowance for credit losses, ending balance	159	168
Client Financing Receivables | Americas
Financing receivables
Amortized Cost	6,394	7,281
Allowance for credit losses:
Allowance for credit losses, beginning balance	88	111
Write-offs	0	(20)
Recoveries		1
Additions/(releases)	0	(5)
Other	4	2
Allowance for credit losses, ending balance	93	88
Client Financing Receivables | EMEA
Financing receivables
Amortized Cost	3,082	3,546
Allowance for credit losses:
Allowance for credit losses, beginning balance	60	61
Write-offs	0	(3)
Recoveries	0	0
Additions/(releases)	(13)	6
Other	0	(5)
Allowance for credit losses, ending balance	47	60
Client Financing Receivables | Asia Pacific
Financing receivables
Amortized Cost	1,561	1,704
Allowance for credit losses:
Allowance for credit losses, beginning balance	20	23
Write-offs		(2)
Recoveries	0	4
Additions/(releases)	(1)	(4)
Other	0	(2)
Allowance for credit losses, ending balance	$ 19	$ 20

Financing Receivables - Past Du

Financing Receivables - Past Due (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Past Due Financing Receivable
Amortized Cost	$ 11,891	$ 13,769
Client Financing Receivables
Past Due Financing Receivable
Amortized Cost	11,037	12,531
Amortized Cost Not Accruing	124	137
Impaired financing receivables, related allowance	121	122
Client Financing Receivables | Total Past Due > 90 days
Past Due Financing Receivable
Amortized Cost	257	344
Amortized Cost > 90 Days and Accruing	133	208
Billed Invoices > 90 Days and Accruing	33	23
Client Financing Receivables | Americas
Past Due Financing Receivable
Amortized Cost	6,394	7,281
Amortized Cost Not Accruing	76	74
Client Financing Receivables | Americas | Total Past Due > 90 days
Past Due Financing Receivable
Amortized Cost	183	272
Amortized Cost > 90 Days and Accruing	107	198
Billed Invoices > 90 Days and Accruing	15	22
Client Financing Receivables | EMEA
Past Due Financing Receivable
Amortized Cost	3,082	3,546
Amortized Cost Not Accruing	32	46
Client Financing Receivables | EMEA | Total Past Due > 90 days
Past Due Financing Receivable
Amortized Cost	47	52
Amortized Cost > 90 Days and Accruing	16	8
Billed Invoices > 90 Days and Accruing	16	1
Client Financing Receivables | Asia Pacific
Past Due Financing Receivable
Amortized Cost	1,561	1,704
Amortized Cost Not Accruing	17	17
Client Financing Receivables | Asia Pacific | Total Past Due > 90 days
Past Due Financing Receivable
Amortized Cost	26	20
Amortized Cost > 90 Days and Accruing	9	3
Billed Invoices > 90 Days and Accruing	$ 3	$ 1

Financing Receivables - Credit

Financing Receivables - Credit Quality Year of Origination (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Amortized cost for each class of receivables, by credit quality indicator
Total Amortized Cost	$ 11,891	$ 13,769
Americas | Aaa - Baa3
Amortized cost for each class of receivables, by credit quality indicator
Originated in Current Fiscal Year	295	3,316
Originated in Fiscal Year before Latest Fiscal Year	2,840	1,197
Originated Two Years before Latest Fiscal Year	1,001	559
Originated Three Years before Latest Fiscal Year	401	251
Originated Four Years before Latest Fiscal Year	205	128
Originated Five or More Years before Latest Fiscal Year	72	32
Total Amortized Cost	4,815	5,482
Americas | Ba1 - D
Amortized cost for each class of receivables, by credit quality indicator
Originated in Current Fiscal Year	231	1,097
Originated in Fiscal Year before Latest Fiscal Year	764	323
Originated Two Years before Latest Fiscal Year	262	217
Originated Three Years before Latest Fiscal Year	194	91
Originated Four Years before Latest Fiscal Year	60	26
Originated Five or More Years before Latest Fiscal Year	68	45
Total Amortized Cost	1,579	1,800
EMEA | Aaa - Baa3
Amortized cost for each class of receivables, by credit quality indicator
Originated in Current Fiscal Year	157	1,447
Originated in Fiscal Year before Latest Fiscal Year	1,130	451
Originated Two Years before Latest Fiscal Year	381	258
Originated Three Years before Latest Fiscal Year	170	161
Originated Four Years before Latest Fiscal Year	94	42
Originated Five or More Years before Latest Fiscal Year	23	14
Total Amortized Cost	1,955	2,373
EMEA | Ba1 - D
Amortized cost for each class of receivables, by credit quality indicator
Originated in Current Fiscal Year	130	704
Originated in Fiscal Year before Latest Fiscal Year	618	159
Originated Two Years before Latest Fiscal Year	133	158
Originated Three Years before Latest Fiscal Year	127	99
Originated Four Years before Latest Fiscal Year	78	16
Originated Five or More Years before Latest Fiscal Year	42	38
Total Amortized Cost	1,127	1,173
Asia Pacific | Aaa - Baa3
Amortized cost for each class of receivables, by credit quality indicator
Originated in Current Fiscal Year	115	799
Originated in Fiscal Year before Latest Fiscal Year	617	203
Originated Two Years before Latest Fiscal Year	189	210
Originated Three Years before Latest Fiscal Year	183	127
Originated Four Years before Latest Fiscal Year	103	84
Originated Five or More Years before Latest Fiscal Year	77	12
Total Amortized Cost	1,285	1,434
Asia Pacific | Ba1 - D
Amortized cost for each class of receivables, by credit quality indicator
Originated in Current Fiscal Year	48	96
Originated in Fiscal Year before Latest Fiscal Year	84	65
Originated Two Years before Latest Fiscal Year	58	49
Originated Three Years before Latest Fiscal Year	37	22
Originated Four Years before Latest Fiscal Year	18	21
Originated Five or More Years before Latest Fiscal Year	31	17
Total Amortized Cost	$ 276	$ 269

Leases - Lease Amounts Included

Leases - Lease Amounts Included in Consolidated Income Statement (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Lease income - sales-type and direct financing leases
Sales-type lease selling price	$ 90	$ 54
Less: Carrying value of underlying assets	(30)	(19)
Gross profit	61	36
Interest income on lease receivables	59	45
Total sales-type and direct financing lease income	119	81
Lease income - operating leases	26	30
Variable lease income	21	28
Total lease income	$ 166	$ 138

Intangible Assets Including G_3

Intangible Assets Including Goodwill - Intangible Assets by Class (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Intangible asset balances by major asset class
Gross Carrying Amount	$ 16,880	$ 17,588
Accumulated Amortization	(5,976)	(6,404)
Net Carrying Amount	10,905	11,184
Amount of foreign currency translation increase (decrease)	30	(198)
Capitalized software
Intangible asset balances by major asset class
Gross Carrying Amount	1,638	1,650
Accumulated Amortization	(675)	(705)
Net Carrying Amount	962	945
Client relationships
Intangible asset balances by major asset class
Gross Carrying Amount	8,327	8,559
Accumulated Amortization	(2,890)	(2,951)
Net Carrying Amount	5,438	5,608
Completed technology
Intangible asset balances by major asset class
Gross Carrying Amount	5,097	5,220
Accumulated Amortization	(2,025)	(2,045)
Net Carrying Amount	3,073	3,175
Patents/trademarks
Intangible asset balances by major asset class
Gross Carrying Amount	1,799	2,140
Accumulated Amortization	(370)	(688)
Net Carrying Amount	1,429	1,452
Other**
Intangible asset balances by major asset class
Gross Carrying Amount	19	19
Accumulated Amortization	(15)	(15)
Net Carrying Amount	$ 4	$ 4

Intangible Assets Including G_4

Intangible Assets Including Goodwill - Intangible Assets Activity (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Intangible assets
Intangible assets, increase (decrease)	$ (279)
Intangible asset amortization expense	547	$ 625
Retirement of fully amortized intangible assets	$ 992

Intangible Assets Including G_5

Intangible Assets Including Goodwill - Future Amortization (Details) $ in Millions	Mar. 31, 2023 USD ($)
Future amortization expense, by year
Remainder of 2023	$ 1,615
2024	1,927
2025	1,673
2026	1,520
2027	1,492
Thereafter	2,678
Capitalized software
Future amortization expense, by year
Remainder of 2023	441
2024	374
2025	138
2026	9
Acquired intangibles
Future amortization expense, by year
Remainder of 2023	1,173
2024	1,553
2025	1,535
2026	1,512
2027	1,492
Thereafter	$ 2,678

Intangible Assets Including G_6

Intangible Assets Including Goodwill - Goodwill by Segment (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Changes in Goodwill Balances
Beginning Balance	$ 55,949	$ 55,643
Goodwill Additions	141	1,934
Purchase Price Adjustments	6	(159)
Divestitures		(485)
Foreign Currency Translation and Other Adjustments	97	(984)
Ending Balance	56,193	55,949
Goodwill impairment losses	0	0
Goodwill accumulated impairment losses	0	0
Business Segments | Software
Changes in Goodwill Balances
Beginning Balance	43,657	43,966
Goodwill Additions	141	568
Purchase Price Adjustments	1	(118)
Foreign Currency Translation and Other Adjustments	66	(760)
Ending Balance	43,865	43,657
Business Segments | Consulting
Changes in Goodwill Balances
Beginning Balance	7,928	6,797
Goodwill Additions		1,366
Purchase Price Adjustments	5	(42)
Foreign Currency Translation and Other Adjustments	29	(192)
Ending Balance	7,962	7,928
Business Segments | Infrastructure
Changes in Goodwill Balances
Beginning Balance	4,363	4,396
Divestitures		(1)
Foreign Currency Translation and Other Adjustments	2	(32)
Ending Balance	$ 4,366	4,363
Business Segments | Other.
Changes in Goodwill Balances
Beginning Balance		484
Divestitures		$ (484)

Borrowings - Short-Term Debt (D

Borrowings - Short-Term Debt (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Short-term debt disclosures
Short-term loans	$ 6	$ 8
Long-term debt - current maturities	4,881	4,751
Total	$ 4,887	$ 4,760
Short-term loans
Short-term debt disclosures
Weighted-average interest rates for short-term loans (as a percent)	7.40%	7.60%

Borrowings - Long-Term Debt, Co

Borrowings - Long-Term Debt, Components (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Borrowings
Long-term debt excluding finance lease obligations	$ 59,499	$ 51,747
Long-term debt, gross	59,731	51,986
Less: net unamortized discount	866	835
Less: net unamortized debt issuance costs	170	138
Add: fair value adjustment	11	(73)
Total	58,707	50,940
Less: current maturities	4,881	4,751
Total long-term debt (excluding current portion)	53,826	46,189
U.S. dollars
Borrowings
Long-term debt, gross	36,836	33,605
Maturing 2023 | U.S. dollars
Borrowings
Long-term debt, gross	$ 1,514	1,529
Debt instrument, weighted-average interest rate (as a percent)	3.40%
Maturing 2024 | U.S. dollars
Borrowings
Long-term debt, gross	$ 5,007	5,009
Debt instrument, weighted-average interest rate (as a percent)	3.30%
Maturing 2025 | U.S. dollars
Borrowings
Long-term debt, gross	$ 1,603	1,603
Debt instrument, weighted-average interest rate (as a percent)	5.10%
Maturing 2026 | U.S. dollars
Borrowings
Long-term debt, gross	$ 5,201	4,351
Debt instrument, weighted-average interest rate (as a percent)	3.50%
Maturing 2027 | U.S. dollars
Borrowings
Long-term debt, gross	$ 3,620	3,620
Debt instrument, weighted-average interest rate (as a percent)	3.10%
Maturing 2028 | U.S. dollars
Borrowings
Long-term debt, gross	$ 1,313	313
Debt instrument, weighted-average interest rate (as a percent)	5%
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	$ 1,850	1,850
Debt instrument, weighted-average interest rate (as a percent)	4.40%
Maturing 2033 | U.S. dollars
Borrowings
Long-term debt, gross	$ 750
Debt instrument, weighted-average interest rate (as a percent)	4.80%
Maturing 2038, U.S Dollars | U.S. dollars
Borrowings
Long-term debt, gross	$ 83	83
Debt instrument, weighted-average interest rate (as a percent)	8%
Maturing 2038, U.S Dollars | Pound sterling
Borrowings
Debt instrument, weighted-average interest rate (as a percent)	4.90%
Maturing 2038, Pound Sterling | Pound sterling
Borrowings
Long-term debt, gross	$ 928
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	$ 1,400	1,400
Debt instrument, weighted-average interest rate (as a percent)	4.20%
Maturing 2053 | U.S. dollars
Borrowings
Long-term debt, gross	$ 650
Debt instrument, weighted-average interest rate (as a percent)	5.10%
Maturing 2096 | U.S. dollars
Borrowings
Long-term debt, gross	$ 316	316
Debt instrument, weighted-average interest rate (as a percent)	7.10%
Maturing 2023-2043 | Euro
Borrowings
Long-term debt, gross	$ 20,103	17,087
Debt instrument, weighted-average interest rate (as a percent)	1.80%
Maturing 2024-2028 | Japanese yen
Borrowings
Long-term debt, gross	$ 1,327	694
Debt instrument, weighted-average interest rate (as a percent)	0.50%
Maturing 2023-2026 | Other currencies
Borrowings
Long-term debt, gross	$ 305	361
Debt instrument, weighted-average interest rate (as a percent)	16.10%
Maturing 2023-2030
Borrowings
Finance lease obligations	$ 232	$ 239
Finance lease obligations, interest rate (as a percent)	3.60%

Borrowings - Long-Term Debt, _2

Borrowings - Long-Term Debt, Covenants (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 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 Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Japanese yen floating rate bank loans
Notes Issued
Aggregate amount of debt issued	$ 700
Credit facility term	5 years
Euro fixed-rate notes
Notes Issued
Aggregate amount of debt issued	$ 4,600
Euro fixed-rate notes | Minimum
Notes Issued
Credit facility term	4 years
Coupon rate (as a percent)	3.375%
Euro fixed-rate notes | Maximum
Notes Issued
Credit facility term	20 years
Coupon rate (as a percent)	4%
Pound sterling fixed-rate notes
Notes Issued
Aggregate amount of debt issued	$ 900
Credit facility term	15 years
Coupon rate (as a percent)	4.875%
U.S dollar. fixed-rate notes
Notes Issued
Aggregate amount of debt issued	$ 3,250
U.S dollar. fixed-rate notes | Minimum
Notes Issued
Credit facility term	3 years
Coupon rate (as a percent)	4.50%
U.S dollar. fixed-rate notes | Maximum
Notes Issued
Credit facility term	30 years
Coupon rate (as a percent)	5.10%

Borrowings - Pre-Swap Obligatio

Borrowings - Pre-Swap Obligations (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Pre-swap annual contractual obligations of long-term debt outstanding
Remainder of 2023	$ 2,812
2024	6,378
2025	4,935
2026	5,550
2027	5,812
Thereafter	34,243
Total	$ 59,731	$ 51,986

Borrowings - Interest on Debt (

Borrowings - Interest on Debt (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Interest on Debt
Interest capitalized	$ 4	$ 2
Total interest paid and accrued	462	395
Cost of financing
Interest on Debt
Interest paid and accrued	90	82
Interest expense.
Interest on Debt
Interest paid and accrued	$ 367	$ 311

Borrowings - Lines of Credit (D

Borrowings - Lines of Credit (Details) $ in Billions	3 Months Ended
	Mar. 31, 2023 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	Mar. 31, 2023	Dec. 31, 2022
Extended lines of credit
Commitments, guarantees:
Unused amounts in lines of credit to third-party entities and commitments for future financing to clients	$ 1.4	$ 1.6
Financing for client purchase agreements
Commitments, guarantees:
Unused amounts in lines of credit to third-party entities and commitments for future financing to clients	$ 1.7	$ 2.1

Commitments - Standard Warranty

Commitments - Standard Warranty Liability (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Movement in standard warranty liability
Beginning Balance	$ 79	$ 77
Current period accruals	17	14
Accrual adjustments to reflect experience	(17)	(2)
Charges incurred	(21)	(20)
Ending Balance	$ 58	$ 69

Commitments - Extended Warranty

Commitments - Extended Warranty Liability (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Movement in deferred income
Amortization of deferred revenue	$ (3,900)
Current portion	13,220		$ 12,032
Noncurrent portion	3,443		$ 3,499
Extended Warranty
Movement in deferred income
Beginning Balance	272	$ 350
Revenue deferred for new extended warranty contracts	9	18
Amortization of deferred revenue	(37)	(44)
Other	1	(1)
Ending Balance	244	323
Current portion	129	155
Noncurrent portion	$ 116	$ 168

Contingencies (Details)

Contingencies (Details) $ in Millions				3 Months Ended
	May 30, 2022 USD ($)	Apr. 05, 2022 defendant	Jun. 08, 2021 USD ($)	Mar. 31, 2023 USD ($) claim country
Brazil Tax Matters
Loss Contingencies
Damages sought, value				$ 400
BMC v. IBM
Loss Contingencies
Direct damages awarded and appealed, value	$ 718
Punitive damages awarded and appealed, 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
Claims asserted by the company after investigation | claim				0
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
	Mar. 31, 2023	Mar. 31, 2022
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Cost	$ 6,743	$ 6,862
SG&A expense	4,853	4,597
Other (income) and expense	(245)	246
Interest expense	367	311
Provision for/(benefit from) income taxes	124	(39)
Net (income) loss	(927)	(733)
Other comprehensive income/(loss)	(40)	703
Services
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Cost	5,310	5,349
Sales
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Cost	1,322	1,415
Financing.
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Cost	110	98
Cost of services
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Cost	5,310	5,349
Cost of sales
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Cost	1,322	1,415
Cost of financing
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Cost	110	98
SG&A expense
Reclassifications and Taxes Related to Items of Other Comprehensive Income
SG&A expense	4,853	4,597
Other (income) and expenses
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Other (income) and expense	(245)	246
Interest expense.
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Interest expense	367	311
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	(39)	355
Reclassification/amortization, Net of Tax Amount	0	348
Other comprehensive income/(loss), Before Tax Amount	(93)	987
Other comprehensive income/(loss), Tax (Expense)/Benefit	53	(285)
Other comprehensive income/(loss)	(40)	703
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	(30)	306
Other comprehensive income/(loss), Before Tax Amount	(87)	442
Other comprehensive income/(loss), Tax (Expense)/Benefit	56	(136)
Other comprehensive income/(loss)	(30)	306
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	15	0
Unrealized gains/(losses) arising during the period, Tax (Expense)/Benefit	(4)	0
Unrealized gains/(losses) arising during the period, Net of Tax Amount	11	0
Other comprehensive income/(loss), Before Tax Amount	15	0
Other comprehensive income/(loss), Tax (Expense)/Benefit	(4)	0
Other comprehensive income/(loss)	11	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	(29)	60
Unrealized gains/(losses) arising during the period, Tax (Expense)/Benefit	6	(16)
Unrealized gains/(losses) arising during the period, Net of Tax Amount	(23)	44
Reclassification/amortization, Net of Tax Amount	(90)	0
Other comprehensive income/(loss), Before Tax Amount	(151)	59
Other comprehensive income/(loss), Tax (Expense)/Benefit	38	(15)
Other comprehensive income/(loss)	(113)	44
Net Unrealized Gains/(Losses) on Cash Flow Hedges | Reclassifications
Reclassifications and Taxes Related to Items of Other Comprehensive Income
SG&A expense	(10)	(6)
Other (income) and expense	(126)	7
Interest expense	21	21
Net Unrealized Gains/(Losses) on Cash Flow Hedges | Reclassifications | Services
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Cost	2	(15)
Net Unrealized Gains/(Losses) on Cash Flow Hedges | Reclassifications | Sales
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Cost	(14)	(12)
Net Unrealized Gains/(Losses) on Cash Flow Hedges | Reclassifications | Financing.
Reclassifications and Taxes Related to Items of Other Comprehensive Income
Cost	5	5
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	0	4
Net (income) loss	2	(11)
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	4	4
Net (income) loss	(10)	(9)
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	(1)	(1)
Net (income) loss	4	4
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	3	2
Net (income) loss	(7)	(4)
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	32	(2)
Net (income) loss	(94)	5
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	(5)	(5)
Net (income) loss	16	15
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	2	5
Reclassification/amortization, Net of Tax Amount	90	348
Other comprehensive income/(loss), Before Tax Amount	130	486
Other comprehensive income/(loss), Tax (Expense)/Benefit	(38)	(134)
Other comprehensive income/(loss)	92	352
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		(5)
Unrealized gains/(losses) arising during the period, Tax (Expense)/Benefit	1	5
Unrealized gains/(losses) arising during the period, Net of Tax Amount	1	0
Reclassification/amortization, Before Tax Amount	(2)	7
Reclassification/amortization, Tax (Expense)/Benefit	1	(2)
Reclassification/amortization, Net of Tax Amount	(2)	5
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	2	9
Unrealized gains/(losses) arising during the period, Tax (Expense)/Benefit	0	(4)
Unrealized gains/(losses) arising during the period, Net of Tax Amount	2	5
Reclassification/amortization, Before Tax Amount	131	468
Reclassification/amortization, Tax (Expense)/Benefit	(38)	(131)
Reclassification/amortization, Net of Tax Amount	93	337
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	(1)	8
Unrealized gains/(losses) arising during the period, Tax (Expense)/Benefit	0	(2)
Unrealized gains/(losses) arising during the period, Net of Tax Amount	$ (1)	$ 6

Equity Activity - AOCI Rollforw

Equity Activity - AOCI Rollforward (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Accumulated Other Comprehensive Income (Loss) (net of tax)
Balance at the Beginning of the Period	$ 22,021	$ 18,996
Other comprehensive income/(loss)	(40)	703
Balance at the End of the Period	21,672	19,112
Accumulated Other Comprehensive Income/(Loss)
Accumulated Other Comprehensive Income (Loss) (net of tax)
Balance at the Beginning of the Period	(16,740)	(23,234)
Other comprehensive income before reclassifications	(39)	355
Amount reclassified from accumulated other comprehensive income	0	348
Other comprehensive income/(loss)	(40)	703
Balance at the End of the Period	(16,780)	(22,532)
Net Unrealized Gains/(Losses) on Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) (net of tax)
Balance at the Beginning of the Period	(135)	(18)
Other comprehensive income before reclassifications	(23)	44
Amount reclassified from accumulated other comprehensive income	(90)	0
Other comprehensive income/(loss)	(113)	44
Balance at the End of the Period	(248)	26
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) (net of tax)
Balance at the Beginning of the Period	(3,591)	(3,362)
Other comprehensive income before reclassifications	(30)	306
Other comprehensive income/(loss)	(30)	306
Balance at the End of the Period	(3,621)	(3,056)
Net Change Retirement-Related Benefit Plans
Accumulated Other Comprehensive Income (Loss) (net of tax)
Balance at the Beginning of the Period	(13,013)	(19,854)
Other comprehensive income before reclassifications	2	5
Amount reclassified from accumulated other comprehensive income	90	348
Other comprehensive income/(loss)	92	352
Balance at the End of the Period	(12,921)	(19,502)
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)	(1)
Other comprehensive income before reclassifications	11	0
Other comprehensive income/(loss)	11	0
Balance at the End of the Period	$ 10	$ (1)

Derivative Financial Instrume_3

Derivative Financial Instruments - Offsetting (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Derivative Financial Instruments
Potential reduction in net position of total derivative assets	$ 157	$ 220
Potential reduction in net position of total derivative liabilities	157	220
Cash collateral rehypothecated	0	8
Other receivable
Derivative Financial Instruments
Right to reclaim cash collateral	42	140
Accounts payable
Derivative Financial Instruments
Obligation to return cash collateral	$ 0	$ 8

Derivative Financial Instrume_4

Derivative Financial Instruments - Hedging Programs (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Instruments in net investment hedges
Derivative Financial Instruments
Notional amount	$ 5,000	$ 4,700
Average remaining maturity	2 months 12 days	1 month 6 days
Interest rate swaps | Derivative instruments in fair value hedges
Derivative Financial Instruments
Notional amount	$ 6,900	$ 6,500
Average remaining maturity	6 years	6 years
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	$ 8,400	5,900
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	$ 15,200	13,400
Foreign exchange forward contracts | Derivative instruments in cash flow hedges
Derivative Financial Instruments
Maximum length of time hedged	2 years
Notional amount	$ 8,400	$ 8,100
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	$ (24)	$ 66
Gains (losses) expected to be reclassified to net income within the next 12 months	$ (85)
Cross-currency swaps | Derivative instruments in cash flow hedges
Derivative Financial Instruments
Maximum length of time hedged	8 years
Notional amount	$ 4,000	3,100
Net gains (losses) before taxes in accumulated other comprehensive income/(loss), cash flow hedges	(166)	$ (101)
Gains (losses) expected to be reclassified to net income within the next 12 months	$ 41
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	$ (135)	$ (139)
Gains (losses) expected to be reclassified to net income within the next 12 months	(18)
Equity contracts hedging employee compensation obligations | Not designated as hedging instruments - economic hedges
Derivative Financial Instruments
Notional amount	$ 1,100	$ 1,100

Derivative Financial Instrume_5

Derivative Financial Instruments - Cumulative Basis Adjustments for Fair Value Hedges (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
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	$ (204)	$ (199)
Cumulative hedging adjustments included in the carrying amount-assets/(liabilities)	(4)	1
Long-term debt
Amounts recorded in the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges
Carrying amount of the hedged item	(6,693)	(6,216)
Cumulative hedging adjustments included in the carrying amount-assets/(liabilities)	(8)	72
Hedging adjustments on discontinued hedging relationships	$ (238)	$ (250)

Derivative Financial Instrume_6

Derivative Financial Instruments - Effect of Hedge Activity on Income and Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Derivative Instruments, Gain (Loss)
Cost	$ 6,743	$ 6,862
SG&A expense	4,853	4,597
Other (income) and expense	(245)	246
Interest expense	367	311
Cost of services
Derivative Instruments, Gain (Loss)
Cost	5,310	5,349
Gains/(losses) of total hedge activity	(2)	15
Cost of sales
Derivative Instruments, Gain (Loss)
Cost	1,322	1,415
Gains/(losses) of total hedge activity	14	12
Cost of financing
Derivative Instruments, Gain (Loss)
Cost	110	98
Gains/(losses) of total hedge activity	(3)	(2)
SG&A expense
Derivative Instruments, Gain (Loss)
SG&A expense	4,853	4,597
Gains/(losses) of total hedge activity	59	(70)
Other (income) and expenses
Derivative Instruments, Gain (Loss)
Other (income) and expense	(245)	246
Gains/(losses) of total hedge activity	142	(102)
Interest expense.
Derivative Instruments, Gain (Loss)
Interest expense	367	311
Gains/(losses) of total hedge activity	$ (14)	$ (6)

Derivative Financial Instrume_7

Derivative Financial Instruments - Gains and Losses (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Derivative Instruments, Gain (Loss)
Gain (loss) recognized in earnings on derivatives	$ 131	$ (176)
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Cost, Interest expense, Selling, general and administrative, Other (income) and expense	Cost, Interest expense, Selling, general and administrative, Other (income) and expense
Gain (loss) recognized in earnings attributable to risk being hedged	$ (84)	$ 20
Cash flow hedges and net investment hedges
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Recognized in OCI	(253)	601
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Reclassified from AOCI	122	1
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Amounts Excluded from Effectiveness Testing	28	3
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	(29)	60
Foreign exchange contracts | Instruments in net investment hedges
Derivative Instruments, Gain (Loss)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Recognized in OCI	(224)	541
Foreign exchange contracts | Not designated as hedging instruments - economic hedges
Derivative Instruments, Gain (Loss)
Gain (loss) recognized in earnings on derivatives	$ 16	$ (95)
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	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	$ 49	$ (76)
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	$ (2)	$ 15
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	14	12
Cost of financing | Interest rate contracts | Derivative instruments in fair value hedges
Derivative Instruments, Gain (Loss)
Gain (loss) recognized in earnings on derivatives	13	(1)
Gain (loss) recognized in earnings attributable to risk being hedged	(17)	4
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)
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	(4)	(5)
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	5	1
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	10	6
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	126	(7)
Interest expense. | Interest rate contracts | Derivative instruments in fair value hedges
Derivative Instruments, Gain (Loss)
Gain (loss) recognized in earnings on derivatives	53	(4)
Gain (loss) recognized in earnings attributable to risk being hedged	(68)	16
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)
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	(17)	(17)
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	$ 22	$ 2

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Stock-based compensation cost, allocation of recognized costs
Pre-tax stock-based compensation cost	$ 268	$ 234
Income tax benefits	(67)	(57)
Total net stock-based compensation cost	201	177
Pre-tax stock-based compensation cost increase (decrease)	35
Unrecognized compensation cost related to non-vested awards	$ 1,700
Unrecognized compensation cost related to non-vested awards, weighted average period of recognition	2 years 7 months 6 days
Employee Stock Purchase Plan
Stock-based compensation cost, allocation of recognized costs
Pre-tax stock-based compensation cost increase (decrease)	$ 19
Stock options
Stock-based compensation cost, allocation of recognized costs
Pre-tax stock-based compensation cost increase (decrease)	14
Cost
Stock-based compensation cost, allocation of recognized costs
Pre-tax stock-based compensation cost	46	40
SG&A expense
Stock-based compensation cost, allocation of recognized costs
Pre-tax stock-based compensation cost	149	136
RD&E expense
Stock-based compensation cost, allocation of recognized costs
Pre-tax stock-based compensation cost	$ 74	$ 57

Retirement-Related Benefits - A

Retirement-Related Benefits - All Retirement Plans Cost (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Retirement-Related Benefits
Defined benefit and contribution pension plans - cost	$ 281	$ 478
Nonpension postretirement plans - cost	32	33
Total	$ 314	510
Year-to-year percent change, defined benefit and contribution pension plans cost (as a percent)	(41.10%)
Year-to-year percent change, nonpension postretirement plans cost (as a percent)	(1.60%)
Year-to-year percent change, total (as a percent)	(38.50%)
U.S. | Pension Plans
Retirement-Related Benefits
Defined benefit and contribution pension plans - cost	$ 90	$ 149

Retirement-Related Benefits - C

Retirement-Related Benefits - Cost of Pension Plans (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cost/(Income) of Pension Plans
Total defined benefit and contribution pension plans cost recognized in the Consolidated Income Statement	$ 281	$ 478
U.S. | Pension Plans
Cost/(Income) of Pension Plans
Interest cost	$ 272	$ 302
Interest cost - income statement location	Other (income) and expense	Other (income) and expense
Expected return on plan assets	$ (382)	$ (475)
Expected return on plan assets - income statement location	Other (income) and expense	Other (income) and expense
Amortization of prior service costs/(credits)		$ 2
Amortization of prior service costs/(credits) - income statement location	Other (income) and expense	Other (income) and expense
Recognized actuarial losses	$ 27	$ 179
Recognized actuarial losses - income statement location	Other (income) and expense	Other (income) and expense
Curtailments and settlements - income statement location	Other (income) and expense	Other (income) and expense
Other costs/(credits) - income statement location	Other (income) and expense	Other (income) and expense
Total net periodic pension / nonpension (income)/cost of defined benefit plans	$ (82)	$ 8
Cost of defined contribution plans	172	141
Total defined benefit and contribution pension plans cost recognized in the Consolidated Income Statement	90	149
U.S. | Nonpension Postretirement Plans
Cost/(Income) of Pension Plans
Service cost	1	1
Interest cost	$ 29	$ 18
Interest cost - income statement location	Other (income) and expense	Other (income) and expense
Expected return on plan assets - income statement location	Other (income) and expense	Other (income) and expense
Amortization of prior service costs/(credits)	$ (7)	$ 1
Amortization of prior service costs/(credits) - income statement location	Other (income) and expense	Other (income) and expense
Recognized actuarial losses		$ 2
Recognized actuarial losses - income statement location	Other (income) and expense	Other (income) and expense
Curtailments and settlements - income statement location	Other (income) and expense	Other (income) and expense
Total net periodic pension / nonpension (income)/cost of defined benefit plans	$ 23	$ 23
Non-US | Pension Plans
Cost/(Income) of Pension Plans
Service cost	44	64
Interest cost	$ 288	$ 139
Interest cost - income statement location	Other (income) and expense	Other (income) and expense
Expected return on plan assets	$ (356)	$ (274)
Expected return on plan assets - income statement location	Other (income) and expense	Other (income) and expense
Amortization of prior service costs/(credits)	$ 5	$ 4
Amortization of prior service costs/(credits) - income statement location	Other (income) and expense	Other (income) and expense
Recognized actuarial losses	$ 102	$ 278
Recognized actuarial losses - income statement location	Other (income) and expense	Other (income) and expense
Curtailments and settlements	$ (1)	$ 8
Curtailments and settlements - income statement location	Other (income) and expense	Other (income) and expense
Multi-employer plans	$ 4	$ 4
Other costs/(credits)	$ 9	$ 9
Other costs/(credits) - income statement location	Other (income) and expense	Other (income) and expense
Total net periodic pension / nonpension (income)/cost of defined benefit plans	$ 95	$ 231
Cost of defined contribution plans	97	98
Total defined benefit and contribution pension plans cost recognized in the Consolidated Income Statement	192	328
Non-US | Nonpension Postretirement Plans
Cost/(Income) of Pension Plans
Service cost	1	1
Interest cost	$ 9	$ 9
Interest cost - income statement location	Other (income) and expense	Other (income) and expense
Expected return on plan assets	$ (1)	$ 0
Expected return on plan assets - income statement location	Other (income) and expense	Other (income) and expense
Amortization of prior service costs/(credits)	$ 0	$ 0
Amortization of prior service costs/(credits) - income statement location	Other (income) and expense	Other (income) and expense
Recognized actuarial losses	$ 0	$ 1
Recognized actuarial losses - income statement location	Other (income) and expense	Other (income) and expense
Curtailments and settlements - income statement location	Other (income) and expense	Other (income) and expense
Total net periodic pension / nonpension (income)/cost of defined benefit plans	$ 9	$ 10

Retirement-Related Benefits -_2

Retirement-Related Benefits - Contributions - (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Retirement-Related Benefits
Contributions by employer - Noncash	$ 192	$ 156
Total plan contributions	117	154
Non-U.S. DB plans and multi-employer plans
Retirement-Related Benefits
Total plan contributions	7	35
Nonpension Postretirement Plans | U.S. nonpension postretirement benefit plan
Retirement-Related Benefits
Contributions by employer - Noncash	109	105
Total plan contributions	$ 109	$ 120

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent event	Apr. 25, 2023 $ / shares
Subsequent Events
Dividend declared, date	Apr. 25, 2023
Dividend declared (in dollars per share)	$ 1.66
Dividend payable, date	Jun. 10, 2023
Shareholders of record, date	May 10, 2023