10-Q 1 ibm-20240331.htm 10-Q ibm-20240331
0000051143--12-312024Q1falseCHXP3Yhttp://fasb.org/us-gaap/2023#CostOfRevenue http://fasb.org/us-gaap/2023#InterestExpense http://fasb.org/us-gaap/2023#SellingGeneralAndAdministrativeExpense http://www.ibm.com/20240331#OtherIncomeAndExpensehttp://fasb.org/us-gaap/2023#CostOfRevenue http://fasb.org/us-gaap/2023#InterestExpense http://fasb.org/us-gaap/2023#SellingGeneralAndAdministrativeExpense http://www.ibm.com/20240331#OtherIncomeAndExpense00000511432024-01-012024-03-310000051143exch:XNYSus-gaap:CommonStockMember2024-01-012024-03-310000051143exch:XCHIus-gaap:CommonStockMember2024-01-012024-03-310000051143exch:XNYSibm:A1125NotesDue2024Member2024-01-012024-03-310000051143ibm:A2875NotesDue2025Memberexch:XNYS2024-01-012024-03-310000051143exch:XNYSibm:A0950NotesDue2025Member2024-01-012024-03-310000051143ibm:A0875NotesDue2025Memberexch:XNYS2024-01-012024-03-310000051143ibm:A0300NotesDue2026Memberexch:XNYS2024-01-012024-03-310000051143ibm:A1250NotesDue2027Memberexch:XNYS2024-01-012024-03-310000051143ibm:A3375NotesDue2027Memberexch:XNYS2024-01-012024-03-310000051143ibm:A0300NotesDue2028Memberexch:XNYS2024-01-012024-03-310000051143ibm:A1750NotesDue2028Memberexch:XNYS2024-01-012024-03-310000051143ibm:A1500NotesDue2029Memberexch:XNYS2024-01-012024-03-310000051143exch:XNYSibm:A0875NotesDue2030Member2024-01-012024-03-310000051143exch:XNYSibm:A1750NotesDue2031Member2024-01-012024-03-310000051143exch:XNYSibm:A3625NotesDue2031Member2024-01-012024-03-310000051143ibm:A0650NotesDue2032Memberexch:XNYS2024-01-012024-03-310000051143exch:XNYSibm:A1250NotesDue2034Member2024-01-012024-03-310000051143ibm:A3750NotesDue2035Memberexch:XNYS2024-01-012024-03-310000051143ibm:A4875NotesDue2038Memberexch:XNYS2024-01-012024-03-310000051143ibm:A1200NotesDue2040Memberexch:XNYS2024-01-012024-03-310000051143exch:XNYSibm:A4000NotesDue2043Member2024-01-012024-03-310000051143ibm:A700DebenturesDue2025Memberexch:XNYS2024-01-012024-03-310000051143ibm:A622DebenturesDue2027Memberexch:XNYS2024-01-012024-03-310000051143exch:XNYSibm:A650DebenturesDue2028Member2024-01-012024-03-310000051143exch:XNYSibm:A5875DebenturesDue2032Member2024-01-012024-03-310000051143ibm:A700DebenturesDue2045Memberexch:XNYS2024-01-012024-03-310000051143ibm:A7125DebenturesDue2096Memberexch:XNYS2024-01-012024-03-3100000511432024-03-31xbrli:shares0000051143us-gaap:TechnologyServiceMember2024-01-012024-03-31iso4217:USD0000051143us-gaap:TechnologyServiceMember2023-01-012023-03-310000051143us-gaap:ProductMember2024-01-012024-03-310000051143us-gaap:ProductMember2023-01-012023-03-310000051143us-gaap:FinancialServiceMember2024-01-012024-03-310000051143us-gaap:FinancialServiceMember2023-01-012023-03-3100000511432023-01-012023-03-31iso4217:USDxbrli:shares00000511432023-12-3100000511432022-12-3100000511432023-03-310000051143us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2023-12-310000051143us-gaap:RetainedEarningsMember2023-12-310000051143us-gaap:TreasuryStockCommonMember2023-12-310000051143us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310000051143us-gaap:ParentMember2023-12-310000051143us-gaap:NoncontrollingInterestMember2023-12-310000051143us-gaap:RetainedEarningsMember2024-01-012024-03-310000051143us-gaap:ParentMember2024-01-012024-03-310000051143us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310000051143us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2024-01-012024-03-310000051143us-gaap:TreasuryStockCommonMember2024-01-012024-03-310000051143us-gaap:NoncontrollingInterestMember2024-01-012024-03-310000051143us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2024-03-310000051143us-gaap:RetainedEarningsMember2024-03-310000051143us-gaap:TreasuryStockCommonMember2024-03-310000051143us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310000051143us-gaap:ParentMember2024-03-310000051143us-gaap:NoncontrollingInterestMember2024-03-310000051143us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2022-12-310000051143us-gaap:RetainedEarningsMember2022-12-310000051143us-gaap:TreasuryStockCommonMember2022-12-310000051143us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000051143us-gaap:ParentMember2022-12-310000051143us-gaap:NoncontrollingInterestMember2022-12-310000051143us-gaap:RetainedEarningsMember2023-01-012023-03-310000051143us-gaap:ParentMember2023-01-012023-03-310000051143us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310000051143us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2023-01-012023-03-310000051143us-gaap:TreasuryStockCommonMember2023-01-012023-03-310000051143us-gaap:NoncontrollingInterestMember2023-01-012023-03-310000051143us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2023-03-310000051143us-gaap:RetainedEarningsMember2023-03-310000051143us-gaap:TreasuryStockCommonMember2023-03-310000051143us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310000051143us-gaap:ParentMember2023-03-310000051143us-gaap:NoncontrollingInterestMember2023-03-31xbrli:pure0000051143srt:MinimumMemberibm:CommitmentWithThirdPartyFinancialInstitutionMember2024-01-012024-03-310000051143ibm:CommitmentWithThirdPartyFinancialInstitutionMembersrt:MaximumMember2024-01-012024-03-310000051143ibm:CommitmentWithThirdPartyFinancialInstitutionMember2024-03-310000051143ibm:CommitmentWithThirdPartyFinancialInstitutionMember2023-12-310000051143us-gaap:OperatingSegmentsMemberibm:HybridPlatformSolutionsMemberibm:SoftwareMember2024-01-012024-03-310000051143us-gaap:OperatingSegmentsMemberibm:HybridPlatformSolutionsMemberibm:SoftwareMember2023-01-012023-03-310000051143us-gaap:OperatingSegmentsMemberibm:TransactionProcessingMemberibm:SoftwareMember2024-01-012024-03-310000051143us-gaap:OperatingSegmentsMemberibm:TransactionProcessingMemberibm:SoftwareMember2023-01-012023-03-310000051143us-gaap:OperatingSegmentsMemberibm:SoftwareMember2024-01-012024-03-310000051143us-gaap:OperatingSegmentsMemberibm:SoftwareMember2023-01-012023-03-310000051143us-gaap:OperatingSegmentsMemberibm:ConsultingMemberibm:BusinessTransformationMember2024-01-012024-03-310000051143us-gaap:OperatingSegmentsMemberibm:ConsultingMemberibm:BusinessTransformationMember2023-01-012023-03-310000051143us-gaap:OperatingSegmentsMemberibm:ConsultingMemberibm:ApplicationOperationsMember2024-01-012024-03-310000051143us-gaap:OperatingSegmentsMemberibm:ConsultingMemberibm:ApplicationOperationsMember2023-01-012023-03-310000051143us-gaap:OperatingSegmentsMemberibm:TechnologyConsultingMemberibm:ConsultingMember2024-01-012024-03-310000051143us-gaap:OperatingSegmentsMemberibm:TechnologyConsultingMemberibm:ConsultingMember2023-01-012023-03-310000051143us-gaap:OperatingSegmentsMemberibm:ConsultingMember2024-01-012024-03-310000051143us-gaap:OperatingSegmentsMemberibm:ConsultingMember2023-01-012023-03-310000051143ibm:HybridInfrastructureMemberus-gaap:OperatingSegmentsMemberibm:InfrastructureMember2024-01-012024-03-310000051143ibm:HybridInfrastructureMemberus-gaap:OperatingSegmentsMemberibm:InfrastructureMember2023-01-012023-03-310000051143us-gaap:OperatingSegmentsMemberibm:InfrastructureMemberibm:InfrastructureSupportMember2024-01-012024-03-310000051143us-gaap:OperatingSegmentsMemberibm:InfrastructureMemberibm:InfrastructureSupportMember2023-01-012023-03-310000051143us-gaap:OperatingSegmentsMemberibm:InfrastructureMember2024-01-012024-03-310000051143us-gaap:OperatingSegmentsMemberibm:InfrastructureMember2023-01-012023-03-310000051143us-gaap:OperatingSegmentsMemberibm:FinancingMember2024-01-012024-03-310000051143us-gaap:OperatingSegmentsMemberibm:FinancingMember2023-01-012023-03-310000051143us-gaap:MaterialReconcilingItemsMember2024-01-012024-03-310000051143us-gaap:MaterialReconcilingItemsMember2023-01-012023-03-310000051143srt:AmericasMember2024-01-012024-03-310000051143srt:AmericasMember2023-01-012023-03-310000051143us-gaap:EMEAMember2024-01-012024-03-310000051143us-gaap:EMEAMember2023-01-012023-03-310000051143srt:AsiaPacificMember2024-01-012024-03-310000051143srt:AsiaPacificMember2023-01-012023-03-3100000511432024-04-012024-03-3100000511432026-04-012024-03-310000051143srt:MinimumMember2026-04-012024-03-310000051143srt:MaximumMember2026-04-012024-03-3100000511432023-01-012023-12-310000051143us-gaap:OperatingSegmentsMember2024-01-012024-03-310000051143us-gaap:OperatingSegmentsMember2023-01-012023-03-310000051143us-gaap:CorporateNonSegmentMember2024-01-012024-03-310000051143us-gaap:CorporateNonSegmentMember2023-01-012023-03-310000051143ibm:A2024AcquisitionsMember2024-03-310000051143ibm:A2024AcquisitionsMemberibm:SoftwareMember2024-01-012024-03-31ibm:acquisition0000051143ibm:A2024AcquisitionsMemberibm:ConsultingMember2024-01-012024-03-310000051143ibm:A2024AcquisitionsMember2024-01-012024-03-310000051143srt:MinimumMemberus-gaap:CustomerRelationshipsMemberibm:A2024AcquisitionsMember2024-01-012024-03-310000051143us-gaap:CustomerRelationshipsMemberibm:A2024AcquisitionsMembersrt:MaximumMember2024-01-012024-03-310000051143us-gaap:CustomerRelationshipsMemberibm:A2024AcquisitionsMember2024-03-310000051143ibm:A2024AcquisitionsMemberus-gaap:DevelopedTechnologyRightsMember2024-01-012024-03-310000051143ibm:A2024AcquisitionsMemberus-gaap:DevelopedTechnologyRightsMember2024-03-310000051143ibm:A2024AcquisitionsMemberus-gaap:TrademarksMember2024-01-012024-03-310000051143ibm:A2024AcquisitionsMemberus-gaap:TrademarksMember2024-03-310000051143ibm:StreamSetsAndWebMethodsMembersrt:ScenarioForecastMember2024-04-012024-06-30iso4217:EUR0000051143ibm:StreamSetsAndWebMethodsMemberus-gaap:ForeignExchangeOptionMember2023-12-18iso4217:EURibm:option0000051143srt:ScenarioForecastMemberibm:HashiCorpMember2024-12-310000051143srt:ScenarioForecastMemberibm:HashiCorpMember2024-05-012024-12-310000051143ibm:TheWeatherCompanyMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMember2024-01-310000051143ibm:ContingentConsiderationAttainmentOfCertainInvestmentReturnMetricsMemberibm:TheWeatherCompanyMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMember2024-01-310000051143ibm:TheWeatherCompanyMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMember2024-01-312024-01-310000051143us-gaap:EmployeeStockOptionMember2024-01-012024-03-310000051143us-gaap:EmployeeStockOptionMember2023-01-012023-03-310000051143us-gaap:BankTimeDepositsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000051143us-gaap:BankTimeDepositsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000051143us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000051143us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000051143us-gaap:FairValueMeasurementsRecurringMember2024-03-310000051143us-gaap:FairValueMeasurementsRecurringMember2023-12-310000051143us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000051143us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000051143us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2024-03-310000051143us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-12-310000051143us-gaap:FairValueMeasurementsRecurringMemberibm:FairValueInputsLevel2AndLevel3Member2024-03-310000051143us-gaap:FairValueMeasurementsRecurringMemberibm:FairValueInputsLevel2AndLevel3Member2023-12-310000051143us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateContractMember2024-03-310000051143us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateContractMember2023-12-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000051143us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquityContractMember2024-03-310000051143us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquityContractMember2023-12-310000051143us-gaap:ForeignExchangeOptionMember2024-03-310000051143us-gaap:ForeignExchangeOptionMember2023-12-310000051143us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000051143us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherNoncurrentAssetsMember2024-03-310000051143us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000051143us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherNoncurrentAssetsMember2023-12-310000051143us-gaap:OtherCurrentLiabilitiesMemberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000051143us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherNoncurrentLiabilitiesMember2024-03-310000051143us-gaap:OtherCurrentLiabilitiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000051143us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherNoncurrentLiabilitiesMember2023-12-310000051143srt:MaximumMemberus-gaap:LoansReceivableMember2024-01-012024-03-310000051143srt:MaximumMemberus-gaap:FinanceLeasesPortfolioSegmentMember2024-01-012024-03-310000051143srt:MinimumMemberus-gaap:CommercialLoanMember2024-01-012024-03-310000051143srt:MaximumMemberus-gaap:CommercialLoanMember2024-01-012024-03-310000051143us-gaap:LoansReceivableMember2024-03-310000051143ibm:CommercialFinancingReceivablesHeldForInvestmentMember2024-03-310000051143ibm:CommercialFinancingReceivablesHeldForSaleMember2024-03-310000051143ibm:CurrentAssetsMemberus-gaap:LoansReceivableMember2024-03-310000051143ibm:CurrentAssetsMember2024-03-310000051143ibm:CurrentAssetsMemberibm:CommercialFinancingReceivablesHeldForInvestmentMember2024-03-310000051143ibm:CurrentAssetsMemberibm:CommercialFinancingReceivablesHeldForSaleMember2024-03-310000051143ibm:NoncurrentAssetsMemberus-gaap:LoansReceivableMember2024-03-310000051143ibm:NoncurrentAssetsMember2024-03-310000051143us-gaap:LoansReceivableMember2023-12-310000051143ibm:CommercialFinancingReceivablesHeldForInvestmentMember2023-12-310000051143ibm:CommercialFinancingReceivablesHeldForSaleMember2023-12-310000051143ibm:CurrentAssetsMemberus-gaap:LoansReceivableMember2023-12-310000051143ibm:CurrentAssetsMember2023-12-310000051143ibm:CurrentAssetsMemberibm:CommercialFinancingReceivablesHeldForInvestmentMember2023-12-310000051143ibm:CurrentAssetsMemberibm:CommercialFinancingReceivablesHeldForSaleMember2023-12-310000051143ibm:NoncurrentAssetsMemberus-gaap:LoansReceivableMember2023-12-310000051143ibm:NoncurrentAssetsMember2023-12-310000051143us-gaap:AssetPledgedAsCollateralMember2024-03-310000051143us-gaap:AssetPledgedAsCollateralMember2023-12-310000051143ibm:ThirdPartyInvestorMembersrt:MaximumMemberus-gaap:CommercialLoanMember2023-11-300000051143ibm:ThirdPartyInvestorMemberus-gaap:CommercialLoanMember2023-12-310000051143ibm:ThirdPartyInvestorMembersrt:MaximumMemberus-gaap:CommercialLoanMember2023-12-310000051143ibm:ThirdPartyInvestorMembersrt:MaximumMemberus-gaap:CommercialLoanMember2024-01-310000051143us-gaap:CommercialLoanMember2024-01-012024-03-310000051143us-gaap:CommercialLoanMember2023-01-012023-03-310000051143us-gaap:CommercialLoanMember2024-03-310000051143us-gaap:CommercialLoanMember2023-03-310000051143ibm:ClientFinancingReceivablesMember2024-01-012024-03-31ibm:class0000051143ibm:ClientFinancingReceivablesMember2023-01-012023-12-310000051143srt:AmericasMemberibm:ClientFinancingReceivablesMember2024-03-310000051143us-gaap:EMEAMemberibm:ClientFinancingReceivablesMember2024-03-310000051143srt:AsiaPacificMemberibm:ClientFinancingReceivablesMember2024-03-310000051143ibm:ClientFinancingReceivablesMember2024-03-310000051143srt:AmericasMemberibm:ClientFinancingReceivablesMember2023-12-310000051143us-gaap:EMEAMemberibm:ClientFinancingReceivablesMember2023-12-310000051143srt:AsiaPacificMemberibm:ClientFinancingReceivablesMember2023-12-310000051143ibm:ClientFinancingReceivablesMember2023-12-310000051143srt:AmericasMemberibm:ClientFinancingReceivablesMember2024-01-012024-03-310000051143us-gaap:EMEAMemberibm:ClientFinancingReceivablesMember2024-01-012024-03-310000051143srt:AsiaPacificMemberibm:ClientFinancingReceivablesMember2024-01-012024-03-310000051143srt:AmericasMemberibm:ClientFinancingReceivablesMember2022-12-310000051143us-gaap:EMEAMemberibm:ClientFinancingReceivablesMember2022-12-310000051143srt:AsiaPacificMemberibm:ClientFinancingReceivablesMember2022-12-310000051143ibm:ClientFinancingReceivablesMember2022-12-310000051143srt:AmericasMemberibm:ClientFinancingReceivablesMember2023-01-012023-12-310000051143us-gaap:EMEAMemberibm:ClientFinancingReceivablesMember2023-01-012023-12-310000051143srt:AsiaPacificMemberibm:ClientFinancingReceivablesMember2023-01-012023-12-310000051143srt:AmericasMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberibm:ClientFinancingReceivablesMember2024-03-310000051143us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:EMEAMemberibm:ClientFinancingReceivablesMember2024-03-310000051143srt:AsiaPacificMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberibm:ClientFinancingReceivablesMember2024-03-310000051143us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberibm:ClientFinancingReceivablesMember2024-03-310000051143srt:AmericasMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberibm:ClientFinancingReceivablesMember2023-12-310000051143us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:EMEAMemberibm:ClientFinancingReceivablesMember2023-12-310000051143srt:AsiaPacificMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberibm:ClientFinancingReceivablesMember2023-12-310000051143us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberibm:ClientFinancingReceivablesMember2023-12-310000051143srt:AmericasMemberibm:AaaBaa3Member2024-03-310000051143srt:AmericasMemberibm:Ba1CMember2024-03-310000051143ibm:AaaBaa3Memberus-gaap:EMEAMember2024-03-310000051143ibm:Ba1CMemberus-gaap:EMEAMember2024-03-310000051143srt:AsiaPacificMemberibm:AaaBaa3Member2024-03-310000051143srt:AsiaPacificMemberibm:Ba1CMember2024-03-310000051143srt:AmericasMemberibm:AaaBaa3Member2023-12-310000051143srt:AmericasMemberibm:Ba1CMember2023-12-310000051143ibm:AaaBaa3Memberus-gaap:EMEAMember2023-12-310000051143ibm:Ba1CMemberus-gaap:EMEAMember2023-12-310000051143srt:AsiaPacificMemberibm:AaaBaa3Member2023-12-310000051143srt:AsiaPacificMemberibm:Ba1CMember2023-12-310000051143us-gaap:ComputerSoftwareIntangibleAssetMember2024-03-310000051143us-gaap:CustomerRelationshipsMember2024-03-310000051143us-gaap:DevelopedTechnologyRightsMember2024-03-310000051143ibm:PatentstrademarksMember2024-03-310000051143us-gaap:OtherIntangibleAssetsMember2024-03-310000051143us-gaap:ComputerSoftwareIntangibleAssetMember2023-12-310000051143us-gaap:CustomerRelationshipsMember2023-12-310000051143us-gaap:DevelopedTechnologyRightsMember2023-12-310000051143ibm:PatentstrademarksMember2023-12-310000051143us-gaap:OtherIntangibleAssetsMember2023-12-310000051143ibm:AcquiredIntangiblesMember2024-03-310000051143ibm:SoftwareMember2023-12-310000051143ibm:SoftwareMember2024-01-012024-03-310000051143ibm:SoftwareMember2024-03-310000051143ibm:ConsultingMember2023-12-310000051143ibm:ConsultingMember2024-01-012024-03-310000051143ibm:ConsultingMember2024-03-310000051143ibm:InfrastructureMember2023-12-310000051143ibm:InfrastructureMember2024-01-012024-03-310000051143ibm:InfrastructureMember2024-03-310000051143us-gaap:AllOtherSegmentsMember2023-12-310000051143us-gaap:AllOtherSegmentsMember2024-01-012024-03-310000051143us-gaap:AllOtherSegmentsMember2024-03-310000051143ibm:SoftwareMember2022-12-310000051143ibm:SoftwareMember2023-01-012023-12-310000051143ibm:ConsultingMember2022-12-310000051143ibm:ConsultingMember2023-01-012023-12-310000051143ibm:InfrastructureMember2022-12-310000051143ibm:InfrastructureMember2023-01-012023-12-310000051143us-gaap:AllOtherSegmentsMember2022-12-310000051143us-gaap:AllOtherSegmentsMember2023-01-012023-12-310000051143currency:USDibm:Maturing2024Member2024-03-310000051143currency:USDibm:Maturing2024Member2023-12-310000051143currency:USDibm:Maturing2025Member2024-03-310000051143currency:USDibm:Maturing2025Member2023-12-310000051143currency:USDibm:Maturing2026Member2024-03-310000051143currency:USDibm:Maturing2026Member2023-12-310000051143currency:USDibm:Maturing2027Member2024-03-310000051143currency:USDibm:Maturing2027Member2023-12-310000051143currency:USDibm:Maturing2028Member2024-03-310000051143currency:USDibm:Maturing2028Member2023-12-310000051143currency:USDibm:Maturing2029Member2024-03-310000051143currency:USDibm:Maturing2029Member2023-12-310000051143currency:USDibm:Maturing2030Member2024-03-310000051143currency:USDibm:Maturing2030Member2023-12-310000051143currency:USDibm:Maturing2031Member2024-03-310000051143currency:USDibm:Maturing2031Member2023-12-310000051143currency:USDibm:Maturing2032Member2024-03-310000051143currency:USDibm:Maturing2032Member2023-12-310000051143currency:USDibm:Maturing2033Member2024-03-310000051143currency:USDibm:Maturing2033Member2023-12-310000051143currency:USDibm:Maturing2034Member2024-03-310000051143currency:USDibm:Maturing2034Member2023-12-310000051143currency:USDibm:Maturing2038Member2024-03-310000051143currency:USDibm:Maturing2038Member2023-12-310000051143currency:USDibm:Maturing2039Member2024-03-310000051143currency:USDibm:Maturing2039Member2023-12-310000051143currency:USDibm:Maturing2040Member2024-03-310000051143currency:USDibm:Maturing2040Member2023-12-310000051143currency:USDibm:Maturing2042Member2024-03-310000051143currency:USDibm:Maturing2042Member2023-12-310000051143currency:USDibm:Maturing2044Member2024-03-310000051143currency:USDibm:Maturing2044Member2023-12-310000051143currency:USDibm:Maturing2045Member2024-03-310000051143currency:USDibm:Maturing2045Member2023-12-310000051143currency:USDibm:Maturing2046Member2024-03-310000051143currency:USDibm:Maturing2046Member2023-12-310000051143currency:USDibm:Maturing2049Member2024-03-310000051143currency:USDibm:Maturing2049Member2023-12-310000051143currency:USDibm:Maturing2050Member2024-03-310000051143currency:USDibm:Maturing2050Member2023-12-310000051143currency:USDibm:Maturing2052Member2024-03-310000051143currency:USDibm:Maturing2052Member2023-12-310000051143currency:USDibm:Maturing2053Member2024-03-310000051143currency:USDibm:Maturing2053Member2023-12-310000051143currency:USDibm:Maturing2054Member2024-03-310000051143currency:USDibm:Maturing2054Member2023-12-310000051143currency:USDibm:Maturing2096Member2024-03-310000051143currency:USDibm:Maturing2096Member2023-12-310000051143currency:USD2024-03-310000051143currency:USD2023-12-310000051143currency:EURibm:Maturing2024Member2024-03-310000051143currency:EURibm:Maturing2024Member2023-12-310000051143ibm:Maturing2025Membercurrency:EUR2024-03-310000051143ibm:Maturing2025Membercurrency:EUR2023-12-310000051143currency:EURibm:Maturing2027Member2024-03-310000051143currency:EURibm:Maturing2027Member2023-12-310000051143currency:EURibm:Maturing2028Member2024-03-310000051143currency:EURibm:Maturing2028Member2023-12-310000051143ibm:Maturing2029Membercurrency:EUR2024-03-310000051143ibm:Maturing2029Membercurrency:EUR2023-12-310000051143ibm:Maturing2030Membercurrency:EUR2024-03-310000051143ibm:Maturing2030Membercurrency:EUR2023-12-310000051143currency:EURibm:Maturing2031Member2024-03-310000051143currency:EURibm:Maturing2031Member2023-12-310000051143currency:EURibm:Maturing2032Member2024-03-310000051143currency:EURibm:Maturing2032Member2023-12-310000051143ibm:Maturing2034Membercurrency:EUR2024-03-310000051143ibm:Maturing2034Membercurrency:EUR2023-12-310000051143currency:EURibm:Maturing2035Member2024-03-310000051143currency:EURibm:Maturing2035Member2023-12-310000051143ibm:Maturing2040Membercurrency:EUR2024-03-310000051143ibm:Maturing2040Membercurrency:EUR2023-12-310000051143currency:EURibm:Maturing2043Member2024-03-310000051143currency:EURibm:Maturing2043Member2023-12-310000051143currency:EUR2024-03-310000051143currency:EUR2023-12-310000051143currency:GBPibm:Maturing2038Member2024-03-310000051143currency:GBPibm:Maturing2038Member2023-12-310000051143ibm:Maturing20242028Membercurrency:JPY2024-03-310000051143ibm:Maturing20242028Membercurrency:JPY2023-12-310000051143srt:OtherCurrencyMemberibm:Maturing20242026Member2024-03-310000051143srt:OtherCurrencyMemberibm:Maturing20242026Member2023-12-310000051143ibm:FinanceLeaseObligationsMaturing20242034Member2024-03-310000051143ibm:FinanceLeaseObligationsMaturing20242034Member2023-12-310000051143us-gaap:RevolvingCreditFacilityMember2024-01-012024-03-310000051143ibm:USDollarFixedRateNotesIssued2024Member2024-02-050000051143srt:MinimumMemberibm:USDollarFixedRateNotesIssued2024Member2024-02-052024-02-050000051143ibm:USDollarFixedRateNotesIssued2024Membersrt:MaximumMember2024-02-052024-02-050000051143srt:MinimumMemberibm:USDollarFixedRateNotesIssued2024Member2024-02-050000051143ibm:USDollarFixedRateNotesIssued2024Membersrt:MaximumMember2024-02-050000051143ibm:CostOfFinancingMember2024-01-012024-03-310000051143ibm:CostOfFinancingMember2023-01-012023-03-310000051143us-gaap:InterestExpenseMember2024-01-012024-03-310000051143us-gaap:InterestExpenseMember2023-01-012023-03-310000051143ibm:ThreeYearCreditAgreementMember2024-03-310000051143ibm:ThreeYearCreditAgreementMember2024-01-012024-03-310000051143ibm:FiveYearCreditAgreementMember2024-03-310000051143ibm:FiveYearCreditAgreementMember2024-01-012024-03-310000051143us-gaap:RevolvingCreditFacilityMember2024-03-310000051143ibm:ExtendedLinesOfCreditMember2024-03-310000051143ibm:ExtendedLinesOfCreditMember2023-12-310000051143ibm:FinancingForClientPurchaseAgreementsMember2024-03-310000051143ibm:FinancingForClientPurchaseAgreementsMember2023-12-310000051143ibm:ExtendedWarrantyMember2023-12-310000051143ibm:ExtendedWarrantyMember2022-12-310000051143ibm:ExtendedWarrantyMember2024-01-012024-03-310000051143ibm:ExtendedWarrantyMember2023-01-012023-03-310000051143ibm:ExtendedWarrantyMember2024-03-310000051143ibm:ExtendedWarrantyMember2023-03-310000051143srt:MinimumMember2024-03-31ibm:country0000051143srt:MinimumMemberibm:IBMVGFMember2021-06-082021-06-080000051143ibm:BMCVIBMMember2022-05-302022-05-300000051143ibm:BrazilTaxMattersMember2024-01-012024-03-310000051143us-gaap:AccumulatedTranslationAdjustmentMember2024-01-012024-03-310000051143us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-01-012024-03-310000051143us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-01-012024-03-310000051143us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:TechnologyServiceMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-01-012024-03-310000051143ibm:CostOfServicesMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-01-012024-03-310000051143us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:ProductMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-01-012024-03-310000051143us-gaap:CostOfSalesMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-01-012024-03-310000051143us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:FinancialServiceMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-01-012024-03-310000051143ibm:CostOfFinancingMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-01-012024-03-310000051143us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-01-012024-03-310000051143us-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-01-012024-03-310000051143ibm:OtherIncomeAndExpensesMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-01-012024-03-310000051143us-gaap:InterestExpenseMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-01-012024-03-310000051143us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember2024-01-012024-03-310000051143us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2024-01-012024-03-310000051143ibm:RetirementRelatedBenefitPlansCurtailmentsAndSettlementsMember2024-01-012024-03-310000051143us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-01-012024-03-310000051143us-gaap:AccumulatedTranslationAdjustmentMember2023-01-012023-03-310000051143us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-01-012023-03-310000051143us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-03-310000051143us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:TechnologyServiceMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-03-310000051143ibm:CostOfServicesMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-03-310000051143us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:ProductMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-03-310000051143us-gaap:CostOfSalesMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-03-310000051143us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:FinancialServiceMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-03-310000051143ibm:CostOfFinancingMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-03-310000051143us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-03-310000051143us-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-03-310000051143ibm:OtherIncomeAndExpensesMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-03-310000051143us-gaap:InterestExpenseMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-03-310000051143us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember2023-01-012023-03-310000051143us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2023-01-012023-03-310000051143ibm:RetirementRelatedBenefitPlansCurtailmentsAndSettlementsMember2023-01-012023-03-310000051143us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-01-012023-03-310000051143us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-12-310000051143us-gaap:AccumulatedTranslationAdjustmentMember2023-12-310000051143us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-12-310000051143us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-12-310000051143us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-03-310000051143us-gaap:AccumulatedTranslationAdjustmentMember2024-03-310000051143us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-03-310000051143us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-03-310000051143us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-12-310000051143us-gaap:AccumulatedTranslationAdjustmentMember2022-12-310000051143us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-12-310000051143us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-12-310000051143us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-03-310000051143us-gaap:AccumulatedTranslationAdjustmentMember2023-03-310000051143us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-03-310000051143us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-03-310000051143ibm:OtherReceivablesMember2024-03-310000051143ibm:OtherReceivablesMember2023-12-310000051143us-gaap:AccountsPayableMember2024-03-310000051143us-gaap:AccountsPayableMember2023-12-310000051143us-gaap:ForeignExchangeOptionMember2024-01-012024-03-310000051143us-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMember2024-03-310000051143us-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMember2023-12-310000051143us-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMember2024-01-012024-03-310000051143us-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMember2023-01-012023-12-310000051143us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2024-03-310000051143us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2023-12-310000051143us-gaap:CashFlowHedgingMemberibm:ForwardStartingInterestRateSwapsMember2024-03-31ibm:instrument0000051143us-gaap:CashFlowHedgingMemberibm:ForwardStartingInterestRateSwapsMember2023-12-310000051143us-gaap:CashFlowHedgingMemberibm:ForwardStartingInterestRateSwapsMember2024-01-012024-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMember2024-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMember2023-12-310000051143us-gaap:NetInvestmentHedgingMember2024-03-310000051143us-gaap:NetInvestmentHedgingMember2023-12-310000051143us-gaap:NetInvestmentHedgingMember2024-01-012024-03-310000051143us-gaap:NetInvestmentHedgingMember2023-01-012023-12-310000051143us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeForwardMember2024-01-012024-03-310000051143us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeForwardMember2024-03-310000051143us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeForwardMember2023-12-310000051143us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeForwardMember2023-01-012023-12-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2024-01-012024-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2024-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2023-12-310000051143us-gaap:CashFlowHedgingMemberus-gaap:CurrencySwapMember2024-03-310000051143us-gaap:CashFlowHedgingMemberus-gaap:CurrencySwapMember2023-12-310000051143us-gaap:CashFlowHedgingMemberus-gaap:CurrencySwapMember2024-01-012024-03-310000051143us-gaap:ForeignExchangeContractMember2023-01-012023-03-310000051143us-gaap:ForeignExchangeContractMembersrt:MaximumMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2024-01-012024-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2024-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2023-12-310000051143ibm:EquityContractsHedgingEmployeeCompensationObligationsMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2024-03-310000051143ibm:EquityContractsHedgingEmployeeCompensationObligationsMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2023-12-310000051143us-gaap:ShortTermDebtMember2024-03-310000051143us-gaap:ShortTermDebtMember2023-12-310000051143us-gaap:LongTermDebtMember2024-03-310000051143us-gaap:LongTermDebtMember2023-12-310000051143ibm:CostOfServicesMember2024-01-012024-03-310000051143ibm:CostOfServicesMember2023-01-012023-03-310000051143us-gaap:CostOfSalesMember2024-01-012024-03-310000051143us-gaap:CostOfSalesMember2023-01-012023-03-310000051143us-gaap:SellingGeneralAndAdministrativeExpensesMember2024-01-012024-03-310000051143us-gaap:SellingGeneralAndAdministrativeExpensesMember2023-01-012023-03-310000051143ibm:OtherIncomeAndExpensesMember2024-01-012024-03-310000051143ibm:OtherIncomeAndExpensesMember2023-01-012023-03-310000051143ibm:CostOfFinancingMemberus-gaap:InterestRateContractMemberus-gaap:FairValueHedgingMember2024-01-012024-03-310000051143ibm:CostOfFinancingMemberus-gaap:InterestRateContractMemberus-gaap:FairValueHedgingMember2023-01-012023-03-310000051143us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMemberus-gaap:FairValueHedgingMember2024-01-012024-03-310000051143us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMemberus-gaap:FairValueHedgingMember2023-01-012023-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2024-01-012024-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2023-01-012023-03-310000051143us-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMemberus-gaap:EquityContractMember2024-01-012024-03-310000051143us-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMemberus-gaap:EquityContractMember2023-01-012023-03-310000051143us-gaap:CashFlowHedgingMemberus-gaap:InterestRateContractMember2024-01-012024-03-310000051143us-gaap:CashFlowHedgingMemberus-gaap:InterestRateContractMember2023-01-012023-03-310000051143ibm:CostOfFinancingMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestRateContractMember2024-01-012024-03-310000051143ibm:CostOfFinancingMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestRateContractMember2023-01-012023-03-310000051143us-gaap:InterestExpenseMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestRateContractMember2024-01-012024-03-310000051143us-gaap:InterestExpenseMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestRateContractMember2023-01-012023-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMemberibm:CostOfServicesMember2024-01-012024-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMemberibm:CostOfServicesMember2023-01-012023-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2023-01-012023-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMemberus-gaap:CashFlowHedgingMember2024-01-012024-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMemberus-gaap:CashFlowHedgingMember2023-01-012023-03-310000051143us-gaap:ForeignExchangeContractMemberibm:CostOfFinancingMemberus-gaap:CashFlowHedgingMember2024-01-012024-03-310000051143us-gaap:ForeignExchangeContractMemberibm:CostOfFinancingMemberus-gaap:CashFlowHedgingMember2023-01-012023-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2024-01-012024-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2023-01-012023-03-310000051143us-gaap:ForeignExchangeContractMemberibm:OtherIncomeAndExpensesMemberus-gaap:CashFlowHedgingMember2024-01-012024-03-310000051143us-gaap:ForeignExchangeContractMemberibm:OtherIncomeAndExpensesMemberus-gaap:CashFlowHedgingMember2023-01-012023-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMemberus-gaap:CashFlowHedgingMember2024-01-012024-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMemberus-gaap:CashFlowHedgingMember2023-01-012023-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMember2024-01-012024-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMember2023-01-012023-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMemberibm:CostOfFinancingMember2024-01-012024-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMemberibm:CostOfFinancingMember2023-01-012023-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMemberus-gaap:InterestExpenseMember2024-01-012024-03-310000051143us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMemberus-gaap:InterestExpenseMember2023-01-012023-03-310000051143ibm:CostMember2024-01-012024-03-310000051143ibm:CostMember2023-01-012023-03-310000051143us-gaap:ResearchAndDevelopmentExpenseMember2024-01-012024-03-310000051143us-gaap:ResearchAndDevelopmentExpenseMember2023-01-012023-03-310000051143us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-03-310000051143us-gaap:PerformanceSharesMember2024-01-012024-03-310000051143us-gaap:EmployeeStockOptionMember2024-01-012024-03-310000051143country:USus-gaap:PensionPlansDefinedBenefitMember2024-01-012024-01-010000051143srt:MinimumMembercountry:USus-gaap:PensionPlansDefinedBenefitMember2024-01-012024-01-010000051143country:USus-gaap:PensionPlansDefinedBenefitMember2024-01-012024-03-310000051143country:USus-gaap:PensionPlansDefinedBenefitMember2023-01-012023-03-310000051143us-gaap:ForeignPlanMemberus-gaap:PensionPlansDefinedBenefitMember2024-01-012024-03-310000051143us-gaap:ForeignPlanMemberus-gaap:PensionPlansDefinedBenefitMember2023-01-012023-03-310000051143country:USus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2024-01-012024-03-310000051143country:USus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-01-012023-03-310000051143us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:ForeignPlanMember2024-01-012024-03-310000051143us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:ForeignPlanMember2023-01-012023-03-310000051143ibm:USNonpensionPostretirementBenefitPlansMember2024-01-012024-03-310000051143ibm:USNonpensionPostretirementBenefitPlansMember2023-01-012023-03-310000051143ibm:NonUSDBPlansAndMultiEmployerPlansMember2024-01-012024-03-310000051143ibm:NonUSDBPlansAndMultiEmployerPlansMember2023-01-012023-03-310000051143us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberibm:USNonpensionPostretirementBenefitPlansMember2024-01-012024-03-310000051143us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberibm:USNonpensionPostretirementBenefitPlansMember2023-01-012023-03-310000051143us-gaap:TrustForBenefitOfEmployeesMember2024-01-012024-03-310000051143us-gaap:TrustForBenefitOfEmployeesMember2023-01-012023-03-310000051143us-gaap:SubsequentEventMember2024-04-302024-04-30
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTER ENDED MARCH 31, 2024
1-2360
(Commission file number)
INTERNATIONAL BUSINESS MACHINES CORPORATION
(Exact name of registrant as specified in its charter)
New York
(State of incorporation)
13-0871985
(IRS employer identification number)
One New Orchard Road
Armonk, New York
(Address of principal executive offices)
10504
(Zip Code)
914-499-1900
(Registrant’s telephone number)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)
Name of each exchange on which registered
Capital stock, par value $.20 per shareIBMNew York Stock Exchange
NYSE Chicago
1.125% Notes due 2024IBM 24ANew York Stock Exchange
2.875% Notes due 2025IBM 25ANew York Stock Exchange
0.950% Notes due 2025IBM 25BNew York Stock Exchange
0.875% Notes due 2025IBM 25CNew York Stock Exchange
0.300% Notes due 2026IBM 26BNew York Stock Exchange
1.250% Notes due 2027IBM 27BNew York Stock Exchange
3.375% Notes due 2027IBM 27FNew York Stock Exchange
0.300% Notes due 2028IBM 28BNew York Stock Exchange
1.750% Notes due 2028IBM 28ANew York Stock Exchange
1.500% Notes due 2029IBM 29New York Stock Exchange
0.875% Notes due 2030IBM 30ANew York Stock Exchange
1.750% Notes due 2031IBM 31New York Stock Exchange
3.625% Notes due 2031IBM 31BNew York Stock Exchange
0.650% Notes due 2032IBM 32ANew York Stock Exchange
1.250% Notes due 2034IBM 34New York Stock Exchange
3.750% Notes due 2035IBM 35New York Stock Exchange
4.875% Notes due 2038IBM 38New York Stock Exchange
1.200% Notes due 2040IBM 40New York Stock Exchange
4.000% Notes due 2043IBM 43New York Stock Exchange
7.00% Debentures due 2025IBM 25New York Stock Exchange
6.22% Debentures due 2027IBM 27New York Stock Exchange
6.50% Debentures due 2028IBM 28New York Stock Exchange
5.875% Debentures due 2032IBM 32DNew York Stock Exchange
7.00% Debentures due 2045IBM 45New York Stock Exchange
7.125% Debentures due 2096IBM 96New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section l3 or l5(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No ☒
The registrant had 918,602,666 shares of common stock outstanding at March 31, 2024.


Index

Page
2

Part I - Financial Information
Item 1. Consolidated Financial Statements:
INTERNATIONAL BUSINESS MACHINES CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED INCOME STATEMENT
(UNAUDITED)
Three Months Ended March 31,
(Dollars in millions except per share amounts) 2024 2023
Revenue:  
Services$7,470 $7,524 
Sales6,799 6,532 
Financing192 196 
Total revenue14,462 14,252 
Cost:  
Services5,239 5,310 
Sales1,381 1,322 
Financing99 110 
Total cost6,719 6,743 
Gross profit7,742 7,509 
Expense and other (income):  
Selling, general and administrative4,974 4,853 
Research, development and engineering1,796 1,655 
Intellectual property and custom development income(216)(180)
Other (income) and expense(317)(245)
Interest expense432 367 
Total expense and other (income)6,669 6,451 
Income from continuing operations before income taxes1,074 1,058 
Provision for/(benefit from) income taxes(502)124 
Income from continuing operations$1,575 $934 
Income/(loss) from discontinued operations, net of tax30 (7)
Net income$1,605 $927 
Earnings/(loss) per share of common stock:  
Assuming dilution:  
Continuing operations$1.69 $1.02 
Discontinued operations0.03 (0.01)
Total$1.72 $1.01 
Basic:  
Continuing operations$1.72 $1.03 
Discontinued operations0.03 (0.01)
Total$1.75 $1.02 
Weighted-average number of common shares outstanding: (millions)  
Assuming dilution933.4 917.8 
Basic917.2 907.5 
(Amounts may not add due to rounding.)
(The accompanying notes are an integral part of the financial statements.)
3

INTERNATIONAL BUSINESS MACHINES CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(UNAUDITED)
Three Months Ended March 31,
(Dollars in millions) 2024 2023
Net income
$1,605 $927 
Other comprehensive income/(loss), before tax:  
Foreign currency translation adjustments55 (87)
Net changes related to available-for-sale securities:  
Unrealized gains/(losses) arising during the period0 15 
Reclassification of (gains)/losses to net income  
Total net changes related to available-for-sale securities0 15 
Unrealized gains/(losses) on cash flow hedges:  
Unrealized gains/(losses) arising during the period176 (29)
Reclassification of (gains)/losses to net income70 (122)
Total unrealized gains/(losses) on cash flow hedges246 (151)
Retirement-related benefit plans:  
Prior service costs/(credits)  
Net (losses)/gains arising during the period1 2 
Curtailments and settlements2 (1)
Amortization of prior service (credits)/costs(2)(2)
Amortization of net (gains)/losses261 131 
Total retirement-related benefit plans262 130 
Other comprehensive income/(loss), before tax563 (93)
Income tax (expense)/benefit related to items of other comprehensive income(289)53 
Other comprehensive income/(loss), net of tax273 (40)
Total comprehensive income$1,878 $888 
(Amounts may not add due to rounding.)
(The accompanying notes are an integral part of the financial statements.)
4

INTERNATIONAL BUSINESS MACHINES CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
ASSETS
(Dollars in millions)At March 31, 2024At December 31, 2023
Assets:  
Current assets:  
Cash and cash equivalents$14,603 $13,068 
Restricted cash162 21 
Marketable securities4,512 373 
Notes and accounts receivable — trade (net of allowances of $152 in 2024 and $192 in 2023)
6,041 7,214 
Short-term financing receivables:
Held for investment (net of allowances of $125 in 2024 and $129 in 2023)
4,877 6,102 
Held for sale644 692 
Other accounts receivable (net of allowances of $38 in 2024 and $109 in 2023)
760 640 
Inventory, at lower of average cost or net realizable value:
Finished goods131 78 
Work in process and raw materials1,081 1,083 
Total inventory1,212 1,161 
Deferred costs1,047 998 
Prepaid expenses and other current assets2,804 2,639 
Total current assets36,663 32,908 
Property, plant and equipment18,071 18,122 
Less: Accumulated depreciation12,477 12,621 
Property, plant and equipment — net5,594 5,501 
Operating right-of-use assets — net3,204 3,220 
Long-term financing receivables (net of allowances of $20 in 2024 and $27 in 2023)
4,927 5,766 
Prepaid pension assets7,545 7,506 
Deferred costs810 842 
Deferred taxes6,465 6,656 
Goodwill59,534 60,178 
Intangible assets — net10,750 11,036 
Investments and sundry assets1,678 1,626 
Total assets$137,169 $135,241 
(Amounts may not add due to rounding.)
(The accompanying notes are an integral part of the financial statements.)
5

INTERNATIONAL BUSINESS MACHINES CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEET – (CONTINUED)
(UNAUDITED)
LIABILITIES AND EQUITY
(Dollars in millions except per share amounts)At March 31, 2024At December 31, 2023
Liabilities:
Current liabilities:  
Taxes$1,710 $2,270 
Short-term debt5,471 6,426 
Accounts payable3,588 4,132 
Compensation and benefits3,190 3,501 
Deferred income14,051 13,451 
Operating lease liabilities784 820 
Other accrued expenses and liabilities3,605 3,521 
Total current liabilities32,397 34,122 
Long-term debt54,033 50,121 
Retirement and nonpension postretirement benefit obligations10,421 10,808 
Deferred income3,488 3,533 
Operating lease liabilities2,583 2,568 
Other liabilities10,914 11,475 
Total liabilities113,836 112,628 
Equity:  
IBM stockholders’ equity:  
Common stock, par value $0.20 per share, and additional paid-in capital
60,145 59,643 
Shares authorized: 4,687,500,000
  
Shares issued: 2024 - 2,271,074,279
  
2023 - 2,266,911,160
  
Retained earnings151,362 151,276 
Treasury stock - at cost(169,759)(169,624)
Shares: 2024 - 1,352,471,614
  
2023 - 1,351,897,514
  
Accumulated other comprehensive income/(loss)(18,488)(18,761)
Total IBM stockholders’ equity23,261 22,533 
Noncontrolling interests72 80 
Total equity23,333 22,613 
Total liabilities and equity$137,169 $135,241 
(Amounts may not add due to rounding.)
(The accompanying notes are an integral part of the financial statements.)
6

INTERNATIONAL BUSINESS MACHINES CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
Three Months Ended March 31,
(Dollars in millions) 2024 2023
Cash flows from operating activities:  
Net income$1,605 $927 
Adjustments to reconcile net income to cash provided by operating activities:  
Depreciation (1)
533 527 
Amortization of capitalized software and acquired intangible assets598 547 
Stock-based compensation320 268 
Net (gain)/loss on divestitures, asset sales and other (2)
(253)(5)
Changes in operating assets and liabilities, net of acquisitions/divestitures (2)
1,365 1,509 
Net cash provided by operating activities4,168 3,774 
Cash flows from investing activities:  
Payments for property, plant and equipment(239)(300)
Proceeds from disposition of property, plant and equipment12 11 
Investment in software(134)(168)
Acquisition of businesses, net of cash acquired(82)(22)
Divestitures of businesses, net of cash transferred703  
Purchases of marketable securities and other investments(4,934)(8,531)
Proceeds from disposition of marketable securities and other investments464 1,050 
Net cash provided by/(used in) investing activities(4,210)(7,960)
Cash flows from financing activities:  
Proceeds from new debt5,486 9,432 
Payments to settle debt(2,106)(2,125)
Short-term borrowings/(repayments) less than 90 days — net1 (3)
Common stock repurchases for tax withholdings(199)(96)
Financing — other216 (3)
Cash dividends paid(1,522)(1,497)
Net cash provided by/(used in) financing activities1,877 5,708 
Effect of exchange rate changes on cash, cash equivalents and restricted cash(159)24 
Net change in cash, cash equivalents and restricted cash1,676 1,547 
Cash, cash equivalents and restricted cash at January 113,089 7,988 
Cash, cash equivalents and restricted cash at March 31$14,765 $9,535 
(1) Includes operating lease right-of-use assets amortization expense of $0.2 billion in 2024 and 2023.
(2) Prior period has been reclassified to conform to the change in 2024 presentation.

(Amounts may not add due to rounding.)
(The accompanying notes are an integral part of the financial statements.)
7

INTERNATIONAL BUSINESS MACHINES CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF EQUITY
(UNAUDITED)
(Dollars in millions except per share amounts)Common
Stock and
Additional
Paid-in
Capital
 Retained
Earnings
 Treasury
Stock
 Accumulated
Other
Comprehensive
Income/(Loss)
 Total IBM
Stockholders'
Equity
 Non-
Controlling
Interests
 Total
Equity
Equity - January 1, 2024$59,643 $151,276 $(169,624)$(18,761)$22,533 $80 $22,613 
Net income plus other comprehensive income/(loss):        
Net income 1,605   1,605  1,605 
Other comprehensive income/(loss)   273 273  273 
Total comprehensive income
    $1,878  $1,878 
Cash dividends paid — common stock ($1.66 per share)
 (1,522)  (1,522) (1,522)
Common stock issued under employee plans (4,163,119 shares)
502    502  502 
Purchases (1,087,670 shares) and sales (513,570 shares) of treasury stock under employee plans — net
 4 (134) (130) (130)
Changes in noncontrolling interests     (8)(8)
Equity – March 31, 2024$60,145 $151,362 $(169,759)$(18,488)$23,261 $72 $23,333 
(Dollars in millions except per share amounts)Common
Stock and
Additional
Paid-in
Capital
Retained
Earnings
Treasury
Stock
Accumulated
Other
Comprehensive
Income/(Loss)
Total IBM
Stockholders'
Equity
Non-
Controlling
Interests
Total
Equity
Equity - January 1, 2023$58,343 $149,825 $(169,484)$(16,740)$21,944 $77 $22,021 
Net income plus other comprehensive income/(loss):
       
Net income 927   927  927 
Other comprehensive income/(loss)   (40)(40) (40)
Total comprehensive income
    $888  $888 
Cash dividends paid — common stock ($1.65 per share)
 (1,497)  (1,497) (1,497)
Common stock issued under employee plans (2,380,928 shares)
332    332 332
Purchases (711,325 shares) and sales (283,834 shares) of treasury stock under employee plans — net
 (2)(60) (62) (62)
Changes in noncontrolling interests     (9)(9)
Equity - March 31, 2023$58,675 $149,253 $(169,544)$(16,780)$21,604 $68 $21,672 
(Amounts may not add due to rounding.)
(The accompanying notes are an integral part of the financial statements.)

8

Notes to Consolidated Financial Statements

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 first quarter of 2024, the company made changes to its organizational structure and management system to better align its portfolio to the market, increase transparency and improve segment comparability to peers. These changes did not impact the company's Consolidated Financial Statements, but did impact its reportable segments. Refer to note 4, "Segments," for additional information on the company's reportable segments. The segments are reported on a comparable basis for all periods.
For the three months ended March 31, 2024, the company reported a benefit from income taxes of $502 million and its effective tax rate was (46.7) percent. The rate was primarily driven by the resolution of certain tax audit matters. For the three months ended March 31, 2023, the company reported a provision for income taxes of $124 million and its effective tax rate was 11.7 percent.
Noncontrolling interest amounts, included as a reduction within other (income) and expense in the Consolidated Income Statement, were not material to the consolidated results for the periods presented.
The company has supplier finance programs with third-party financial institutions where the company agrees to pay the financial institutions the stated amounts of invoices from participating suppliers on the originally invoiced maturity date, which have an average term of 90 to 120 days, consistent with the company's standard payment terms. The financial institutions offer earlier payment of the invoices at the sole discretion of the supplier for a discounted amount. The company does not provide secured legal assets or other forms of guarantees under the arrangements. The company is not a party to the arrangements between its suppliers and the financial institutions. These obligations are recognized as accounts payable in the Consolidated Balance Sheet. The obligations outstanding under these programs at March 31, 2024 and December 31, 2023 were $113 million and $101 million, respectively.
Interim results are not necessarily indicative of financial results for a full year. The information included in this Form 10-Q should be read in conjunction with the company’s 2023 Annual Report.
Within the financial statements and tables presented, certain columns and rows may not add due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts. Certain prior-period amounts have been reclassified to conform to the change in current-period presentation. This is annotated where applicable.
2. Accounting Changes:
New Standards to be Implemented
Income Tax Disclosures
Standard/Description–Issuance date: December 2023. This guidance requires disaggregated disclosure of the tax rate reconciliation into eight categories, with further disaggregation required for items greater than a specific threshold. Additionally, the guidance requires the disclosure of income taxes paid disaggregated by federal, state and foreign jurisdictions.
9

Notes to Consolidated Financial Statements — (continued)
Effective Date and Adoption Considerations–The guidance is effective January 1, 2025 and early adoption is permitted. The company expects to adopt the guidance as of the effective date.
Effect on Financial Statements or Other Significant Matters–As the guidance is a change to disclosures only, it will impact the “Taxes” note within the company's annual financial statements but will not impact the consolidated financial results.
Segment Reporting Disclosures
Standard/Description–Issuance date: November 2023. This guidance requires the disclosure of significant segment expenses that are regularly provided to a company's chief operating decision maker and included within each reported measure of segment profit or loss. The company must also disclose “other segment items,” which is the difference between segment revenue less significant expenses for each reported measure of segment profit or loss, and a description of its composition. This guidance also requires all segment annual disclosures to be provided on an interim basis.
Effective Date and Adoption Considerations–The guidance is effective for annual periods beginning in 2024, and for interim periods beginning January 1, 2025, and is required to be applied on a retrospective basis to all prior periods presented. Early adoption is permitted. The company will adopt the guidance as of the effective date.
Effect on Financial Statements or Other Significant Matters–As the guidance is a change to disclosures only, it will impact the “Segments” note within the company's quarterly and annual financial statements but will not have an impact in the consolidated financial results.
Standards Implemented
Disclosures of Supplier Finance Program Obligations
Standard/Description–Issuance date: September 2022. This guidance requires an entity to provide certain interim and annual disclosures about the use of supplier finance programs in connection with the purchase of goods or services.
Effective Date and Adoption Considerations–The guidance was effective January 1, 2023 with certain annual disclosures required beginning in 2024 and early adoption was permitted. The company adopted the guidance as of the effective date.
Effect on Financial Statements or Other Significant Matters–The guidance did not have a material impact in the consolidated financial results. Refer to note 1, "Basis of Presentation," for additional information.


10

Notes to Consolidated Financial Statements — (continued)
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 31:2024
2023 (1)
Hybrid Platform & Solutions$4,098 $3,850 
Transaction Processing1,800 1,742 
Total Software$5,899 $5,591 
Business Transformation2,317 2,283 
Application Operations1,938 1,989 
Technology Consulting931 925 
Total Consulting$5,186 $5,197 
Hybrid Infrastructure1,803 1,709 
Infrastructure Support1,273 1,389 
Total Infrastructure$3,076 $3,098 
Financing (2)
193 196 
Other108 169 
Total revenue$14,462 $14,252 
(1)Recast to reflect segment changes.
(2)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 31:20242023
Americas$7,296 $7,078 
Europe/Middle East/Africa4,313 4,331 
Asia Pacific2,853 2,843 
Total$14,462 $14,252 
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, 2024, the aggregate amount of the transaction price allocated to RPO related to customer contracts that are unsatisfied or partially unsatisfied was approximately $56 billion. Approximately 70 percent of the amount is expected
11

Notes to Consolidated Financial Statements — (continued)
to be recognized as revenue in the subsequent two years, approximately 27 percent in the subsequent three to five years and the balance thereafter.
Revenue Recognized for Performance Obligations Satisfied (or Partially Satisfied) in Prior Periods
For the three months ended March 31, 2024, revenue recognized for performance obligations satisfied or partially satisfied in prior periods was immaterial.
Reconciliation of Contract Balances
The following table provides information about notes and accounts receivable–trade, contract assets and deferred income balances.
(Dollars in millions)At March 31, 2024At December 31, 2023
Notes and accounts receivable trade (net of allowances of $152 in 2024 and $192 in 2023)
$6,041 $7,214 
Contract assets (1)
$527 $505 
Deferred income (current)$14,051 $13,451 
Deferred income (noncurrent)$3,488 $3,533 
(1)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, 2024 that was included within the deferred income balance at December 31, 2023 was $4.3 billion and was primarily related to software and services.
The following table provides roll forwards of the notes and accounts receivable–trade allowance for expected credit losses for the three months ended March 31, 2024 and the year ended December 31, 2023.
(Dollars in millions)    
January 1, 2024Additions / (Releases)
Write-offs (1)
Foreign currency and otherMarch 31, 2024
$192$(8)$(29)$(3)$152
January 1, 2023Additions / (Releases)
Write-offs (1)
Foreign currency and otherDecember 31, 2023
$233$32$(79)$6$192
(1)The majority of the write-offs during the period related to receivables which had been previously reserved.
The contract assets allowance for expected credit losses was not material in any of the periods presented.


12

Notes to Consolidated Financial Statements — (continued)
4. Segments:
In the first quarter of 2024, the company made changes to its organization structure and management system to better align its portfolio with the market, increase transparency and improve segment comparability to peers. These changes did not impact the company's Consolidated Financial Statements, but did impact its reportable segments. Due to the removal of certain components of segment profitability, as described below, the company also updated the title of its segment performance metric from pre-tax income from continuing operations to segment profit.
The following table displays the segment updates:
Reportable Segment Change
Resulting Segment Implications
The Weather Company asset divestiture
-
Software Segment
+
Other-divested businesses
Security Services realignment
-
Software Segment
+Consulting Segment
Removal of stock-based compensation and net interest allocations from segment profitability
-
Software Segment, Consulting Segment, Infrastructure Segment, Financing Segment (1)
+Other
(1) Presentation of interest for the Financing Segment did not change.
The following tables reflect the results of continuing operations of the company’s segments consistent with the management and measurement system utilized within the company and have been recast for the prior-year periods to reflect the company's segment changes described above. These results are used by the chief operating decision maker, both in evaluating the performance of, and in allocating resources to, each of the segments.
13

Notes to Consolidated Financial Statements — (continued)

SEGMENT INFORMATION
(Dollars in millions)SoftwareConsultingInfrastructureFinancingTotal
Segments
For the three months ended March 31, 2024:     
Revenue$5,899 $5,186 $3,076 $193 $14,354 
Segment profit
$1,500 $424 $311 $92 $2,327 
Revenue year-to-year change5.5 %(0.2)%(0.7)%(1.6)%1.9 %
Segment profit year-to-year change8.8 %(0.6)%1.4 %(8.4)%5.2 %
Segment profit margin25.4 %8.2 %10.1 %47.7 %16.2 %
For the three months ended March 31, 2023 (1)
     
Revenue$5,591 $5,197 $3,098 $196 $14,083 
Segment profit
$1,379 $427 $307 $100 $2,213 
Segment profit margin24.7 %8.2 %9.9 %51.2 %15.7 %
(1) Recast to reflect segment changes.
Reconciliations to IBM as Reported:
(Dollars in millions)  
For the three months ended March 31:2024
2023 (1)
Revenue:  
Total reportable segments$14,354 $14,083 
Otherdivested businesses
35 94 
Other revenue73 75 
Total revenue from continuing operations$14,462 $14,252 
Pre-tax income from continuing operations:  
Total reportable segment profit
$2,327 $2,213 
Amortization of acquired intangible assets(428)(392)
Acquisition-related (charges)/income (2)
(60)(3)
Non-operating retirement-related (costs)/income
(96)5 
Stock-based compensation(320)(268)
Net interest excluding the Financing segment (223)(217)
Workforce rebalancing charges
(374)(259)
Otherdivested businesses (3)
239 13 
Unallocated corporate amounts and other
9 (33)
Total pre-tax income from continuing operations
$1,074 $1,058 
(1)Recast to reflect segment changes.
(2)2024 includes the impact of foreign exchange call option contracts in connection with the planned acquisition of StreamSets and webMethods from Software AG. Refer to note 16, "Derivative Financial Instruments," for additional information.
(3)2024 includes a gain on the sale of The Weather Company assets. Refer to note 5, "Acquisitions & Divestitures," for additional information.

14

Notes to Consolidated Financial Statements — (continued)
5. Acquisitions & Divestitures:
Acquisitions
Purchase price consideration for all acquisitions was paid primarily in cash. All acquisitions, unless otherwise stated, were for 100 percent of the acquired business and are reported in the Consolidated Statement of Cash Flows, net of acquired cash and cash equivalents.
During the three months ended March 31, 2024, the company completed two acquisitions within the Software segment and one acquisition within the Consulting segment at an aggregate cost of $255 million. These acquisitions are expected to enhance the company’s portfolio of products and services capabilities and further advance IBM’s hybrid cloud and AI strategy. These acquisitions did not have a material impact in the company's Consolidated Financial Statements.
At March 31, 2024, the remaining cash to be remitted by the company related to certain first-quarter 2024 acquisitions was $157 million. Of the amount outstanding, $144 million was recorded as restricted cash in the Consolidated Balance Sheet, most of which was paid in April 2024. The amount outstanding is primarily a non-cash investing activity for purposes of the company's Consolidated Statement of Cash Flows as of March 31, 2024.
The following table reflects the purchase price related to the first-quarter acquisitions and the resulting purchase price allocation as of March 31, 2024.
(Dollars in millions)Amortization
Life (in years)
All
Acquisitions
Current assets$17 
Property, plant and equipment/noncurrent assets2 
Intangible assets:
 GoodwillN/A195 
 Client relationships
2-7
31 
 Completed technology
7
37 
 Trademarks
3
0 
Total assets acquired$284 
Current liabilities13 
Noncurrent liabilities15 
Total liabilities assumed$29 
Total purchase price$255 
N/A – not applicable
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.
Transactions Announced — On December 18, 2023, the company entered into a definitive agreement with Software AG to acquire StreamSets and webMethods, Software AG's Super iPaaS (integration platform-as-a-service) enterprise technology platforms, for approximately €2.13 billion in cash. StreamSets will add data ingestion capabilities to watsonx, and webMethods will provide clients and partners additional integration and API management tools for their hybrid multi-cloud environments. The acquisition is expected to close in mid-year 2024 subject to customary closing conditions, including regulatory clearance, and upon closing, will be integrated into the Software segment. In connection with the planned acquisition, on December 18, 2023 the company entered into foreign exchange call option contracts for a premium of $49 million to purchase a total of €2.13 billion on June 18, 2024 at a strike price of 1.095. Refer to note 16, “Derivative Financial Instruments,” for additional information.
On April 24, 2024, the company announced its intent to acquire all of the outstanding shares of HashiCorp, Inc., (HashiCorp). The combination of IBM’s and HashiCorp’s combined portfolios will help clients manage growing application and infrastructure complexity and create a comprehensive end-to-end hybrid cloud platform designed for the AI
15

Notes to Consolidated Financial Statements — (continued)
era. Under the terms of the definitive agreement, HashiCorp shareholders will receive $35 per share in cash, representing a total enterprise value of approximately $6.4 billion. The transaction is expected to close by the end of 2024, subject to approval by HashiCorp shareholders, regulatory approvals and other customary closing conditions. Upon closing, HashiCorp will be integrated into the Software segment.
Divestitures
The Weather Company Assets — In August 2023, IBM and Zephyr Buyer, L.P., a wholly-owned subsidiary of Francisco Partners (collectively, Francisco), entered into a definitive agreement under which Francisco would acquire The Weather Company assets from IBM for $1,100 million inclusive of $250 million of contingent consideration, of which $200 million is contingent on Francisco’s attainment of certain investment return metrics. The assets include The Weather Company's digital consumer-facing offerings, The Weather Channel mobile and cloud-based digital properties including Weather.com, Weather Underground and Storm Radar, as well as its enterprise offerings for broadcast, media, aviation, advertising technology and data solutions for other emerging industries.
The transaction closed on January 31, 2024. Upon closing, the company received cash proceeds of $750 million and provided seller financing to Francisco in the form of a $100 million loan with a term of 7 years. The cash proceeds from the sale were included in cash from investing activities within the Consolidated Statement of Cash Flows. The seller financing is a non-cash investing activity. The company recognized a pre-tax gain on sale of $241 million at closing in other (income) and expense in the Consolidated Income Statement. As discussed in note 4, “Segments,” in the first quarter of 2024, The Weather Company assets previously reported in the Software segment were moved and recast to the Other–divested businesses category.
6. Other (Income) and Expense:
Components of other (income) and expense are as follows:
(Dollars in millions)
For the three months ended March 31:20242023
Other (income) and expense:
Foreign currency transaction losses/(gains) (1)
$(205)$88 
(Gains)/losses on derivative instruments (1)
287 (142)
Interest income(210)(170)
Net (gains)/losses from securities and investment assets(10)5 
Retirement-related costs/(income) 96 (5)
Other (2)
(274)(22)
Total other (income) and expense$(317)$(245)
(1)The company uses financial hedging instruments to limit specific currency risks related to foreign currency-based transactions. The hedging program does not hedge 100 percent of currency exposures and defers, versus eliminates, the impact of currency. Refer to note 16, "Derivative Financial Instruments," for additional information on foreign exchange risk.
(2)2024 includes a pre-tax gain of $241 million from the divestiture of The Weather Company assets. Refer to note 5, "Acquisitions & Divestitures," for additional information.
16

Notes to Consolidated Financial Statements — (continued)
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, 2024 and 2023.
(Dollars in millions except per share amounts)
For the three months ended March 31:20242023
Number of shares on which basic earnings per share is calculated:  
Weighted-average shares outstanding during period917,178,779907,526,887
Add — Incremental shares under stock-based compensation plans14,256,3908,609,239
Add — Incremental shares associated with contingently issuable shares1,996,1441,709,153
Number of shares on which diluted earnings per share is calculated933,431,312917,845,279
Income from continuing operations
$1,575 $934 
Income/(loss) from discontinued operations, net of tax30 (7)
Net income on which basic earnings per share is calculated
$1,605 $927 
Income from continuing operations
$1,575 $934 
Net income applicable to contingently issuable shares  
Income from continuing operations on which diluted earnings per share is calculated
$1,575 $934 
Income/(loss) from discontinued operations, net of tax, on which diluted earnings per share is calculated30 (7)
Net income on which diluted earnings per share is calculated
$1,605 $927 
Earnings/(loss) per share of common stock:  
Assuming dilution  
Continuing operations$1.69 $1.02 
Discontinued operations0.03 (0.01)
Total$1.72 $1.01 
Basic
Continuing operations$1.72 $1.03 
Discontinued operations0.03 (0.01)
Total$1.75 $1.02 
Stock options to purchase 61,359 shares and 960,929 shares were outstanding as of March 31, 2024 and 2023, respectively, but were not included in the computation of diluted earnings per share because the exercise price of the options during the respective period was greater than the average market price of the common shares, and therefore, the effect would have been antidilutive.

17

Notes to Consolidated Financial Statements — (continued)
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 1Quoted prices (unadjusted) in active markets for identical assets or liabilities that can be accessed at the measurement date;
Level 2Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and
Level 3Unobservable inputs for the asset or liability.
When available, the company uses unadjusted quoted market prices in active markets to measure the fair value and classifies such items as Level 1. If quoted market prices are not available, fair value is based upon internally developed models that use current market-based or independently sourced market parameters such as interest rates and currency rates. Items valued using internally generated models are classified according to the lowest level input or value driver that is significant to the valuation.
The determination of fair value considers various factors including interest rate yield curves and time value underlying the financial instruments. For derivatives and debt securities, the company uses a discounted cash flow analysis using discount rates commensurate with the duration of the instrument.
In determining the fair value of financial instruments, the company considers certain market valuation adjustments to the “base valuations” calculated using the methodologies described below for several parameters that market participants would consider in determining fair value:
Counterparty credit risk adjustments are applied to financial instruments, taking into account the actual credit risk of a counterparty as observed in the credit default swap market to determine the true fair value of such an instrument.
Credit risk adjustments are applied to reflect the company’s own credit risk when valuing all liabilities measured at fair value. The methodology is consistent with that applied in developing counterparty credit risk adjustments, but incorporates the company’s own credit risk as observed in the credit default swap market.
The company holds investments primarily in time deposits, certificates of deposit, and U.S. government debt that are designated as available-for-sale. The primary objective of the company’s cash and debt investment portfolio is to protect principal by investing in very liquid investment securities with highly rated counterparties.
The company’s standard practice is to hold all of its debt security investments classified as available-for-sale until maturity. No impairments for credit losses and no material non-credit impairments were recorded for the three months ended March 31, 2024 and 2023, respectively.
Certain non-financial assets such as property, plant and equipment, operating right-of-use assets, goodwill and intangible assets are also subject to nonrecurring fair value measurements if they are deemed to be impaired. The impairment models used for non-financial assets depend on the type of asset. There were no material impairments of non-financial assets for the three months ended March 31, 2024 and 2023, respectively.
18

Notes to Consolidated Financial Statements — (continued)
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, 2024 and December 31, 2023.
Fair Value
Hierarchy
Level
At March 31, 2024At December 31, 2023
(Dollars in millions)
Assets (6)
Liabilities (7)
Assets (6)
Liabilities (7)
Cash equivalents: (1)
Time deposits and certificates of deposit (2)
2$7,232 N/A$7,206 N/A
Money market funds1487 N/A 494 N/A
Total cash equivalents$7,719 N/A$7,699 N/A
Equity investments17 N/A25 N/A
Debt securities-current (2)(3)
24,512 N/A373 N/A
Debt securities-noncurrent (2)(4)
2,3108 N/A8 N/A
Derivatives designated as hedging instruments:
Interest rate contracts2 436 2 299 
Foreign exchange contracts2263 102 131 275 
Derivatives not designated as hedging instruments:
Foreign exchange contracts (5)
223 25 115 19 
Equity contracts255 1 93  
Total$12,686 $564 $8,446 $593 
(1)Included within cash and cash equivalents in the Consolidated Balance Sheet.
(2)Available-for-sale debt securities with carrying values that approximate fair value.
(3)Term deposits and U.S. treasury bills that are reported within marketable securities in the Consolidated Balance Sheet. The March 31, 2024 balance includes proceeds from the first quarter 2024 debt issuance. Refer to note 12, “Borrowings,” for additional information.
(4)March 31, 2024 includes a $100 million seller financing loan in connection with the divestiture of The Weather Company assets reported within investments and sundry assets in the Consolidated Balance Sheet. Refer to note 5, "Acquisitions & Divestitures," for additional information.
(5)Asset amounts include $12 million and $62 million at March 31, 2024 and December 31, 2023, respectively, related to foreign exchange call option contracts in connection with the planned acquisition of StreamSets and webMethods from Software AG. Refer to note 16, "Derivative Financial Instruments," for additional information.
(6)The gross balances of derivative assets contained within prepaid expenses and other current assets, and investments and sundry assets in the Consolidated Balance Sheet at March 31, 2024 were $328 million and $12 million, respectively, and at December 31, 2023 were $304 million and $37 million, respectively.
(7)The gross balances of derivative liabilities contained within other accrued expenses and liabilities, and other liabilities in the Consolidated Balance Sheet at March 31, 2024 were $95 million and $469 million, respectively, and at December 31, 2023 were $294 million and $299 million, respectively.
N/A – not applicable
Financial Assets and Liabilities Not Measured at Fair Value
Short-Term Receivables and Payables
Short-term receivables (excluding the current portion of long-term receivables) and other investments are financial assets with carrying values that approximate fair value. Accounts payable, other accrued expenses and short-term debt (excluding the current portion of long-term debt) are financial liabilities with carrying values that approximate fair value. If measured at fair value in the financial statements, these financial instruments would be classified as Level 3 in the fair value hierarchy, except for short-term debt which would be classified as Level 2.
Loans and Long-Term Receivables
Fair values are based on discounted future cash flows using current interest rates offered for similar loans to clients with similar credit ratings for the same remaining maturities. At March 31, 2024 and December 31, 2023, the difference between the carrying amount and estimated fair value for loans and long-term receivables was immaterial. If measured at fair value in the financial statements, these financial instruments would be classified as Level 3 in the fair value hierarchy.
19

Notes to Consolidated Financial Statements — (continued)
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 $54,033 million and $50,121 million, and the estimated fair value was $51,656 million and $48,284 million at March 31, 2024 and December 31, 2023, respectively. If measured at fair value in the financial statements, long-term debt (including the current portion) would be classified as Level 2 in the fair value hierarchy.
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 IBM hardware, software and services. Payment terms on these financing arrangements are for terms generally up to seven years. Investment in sales-type and direct financing leases relate principally to the company’s Infrastructure products and are for terms generally up to five years. Commercial financing receivables, which consist of both held-for-investment and held-for-sale receivables, relate primarily to working capital financing for business partners and distributors of IBM products and services. Payment terms for working capital financing generally range from 30 to 60 days.
A summary of the components of the company’s financing receivables is presented as follows:
Client Financing Receivables
Client Loan and Installment Payment ReceivablesInvestment in Sales-Type and Direct Financing
Commercial Financing Receivables
(Dollars in millions)Held forHeld for
At March 31, 2024(Loans)LeasesInvestment
Sale (1)
Total
Financing receivables, gross$5,983 $3,949 $441 $644 $11,017 
Unearned income(446)(402)— — (848)
Unguaranteed residual value— 424 — — 424 
Amortized cost$5,537 $3,971 $441 $644 $10,593 
Allowance for credit losses(82)(57)(6)— (145)