XML 65 R21.htm IDEA: XBRL DOCUMENT
v3.25.2

Borrowings | 6 Months Ended
--- | ---
Jun. 30, 2025
Debt Disclosure [Abstract] |
Borrowings | Borrowings: Short-Term Debt The company's total short-term debt at June 30, 2025 and December 31, 2024 was $8,945 million and $5,089 million, respectively, and primarily consisted of current maturities of long-term debt detailed in “Long-Term Debt” below. Long-Term Debt Pre-Swap Borrowing
|  |  |  | Balance |  | Balance |  |
(Dollars in millions) |  | Maturities |  | 6/30/2025 |  | 12/31/2024 |  |
U.S. dollar debt (weighted-average interest rate at June 30, 2025): (1) |  |  |  |  |  |  |  |
5.1% |  | 2025 |  | $ | 1,600 |  |  | $ | 1,601 |  |  |
3.7% |  | 2026 |  | 5,800 |  |  | 5,800 |  |  |
3.3% |  | 2027 |  | 4,119 |  |  | 4,119 |  |  |
4.8% |  | 2028 |  | 2,320 |  |  | 1,313 |  |  |
3.6% |  | 2029 |  | 3,752 |  |  | 3,750 |  |  |
3.2% |  | 2030 |  | 2,355 |  |  | 1,350 |  |  |
4.8% |  | 2031 |  | 500 |  |  | 500 |  |  |
4.6% |  | 2032 |  | 2,700 |  |  | 1,850 |  |  |
4.8% |  | 2033 |  | 750 |  |  | 750 |  |  |
4.9% |  | 2034 |  | 1,000 |  |  | 1,000 |  |  |
5.2% |  | 2035 |  | 900 |  |  | — |  |  |
8.0% |  | 2038 |  | 83 |  |  | 83 |  |  |
4.5% |  | 2039 |  | 2,745 |  |  | 2,745 |  |  |
2.9% |  | 2040 |  | 650 |  |  | 650 |  |  |
4.0% |  | 2042 |  | 1,107 |  |  | 1,107 |  |  |
5.3% |  | 2044 |  | 1,000 |  |  | 1,000 |  |  |
7.0% |  | 2045 |  | 27 |  |  | 27 |  |  |
4.7% |  | 2046 |  | 650 |  |  | 650 |  |  |
4.3% |  | 2049 |  | 3,000 |  |  | 3,000 |  |  |
3.0% |  | 2050 |  | 750 |  |  | 750 |  |  |
4.2% |  | 2052 |  | 1,400 |  |  | 1,400 |  |  |
5.1% |  | 2053 |  | 650 |  |  | 650 |  |  |
5.3% |  | 2054 |  | 1,400 |  |  | 1,400 |  |  |
5.7% |  | 2055 |  | 1,000 |  |  | — |  |  |
7.1% |  | 2096 |  | 316 |  |  | 316 |  |  |
|  |  |  | $ | 40,576 |  |  | $ | 35,813 |  |  |
Euro debt (weighted-average interest rate at June 30, 2025): (1) |  |  |  |  |  |  |  |
2.9% |  | 2025 |  | $ | 1,174 |  |  | $ | 3,106 |  |  |
2.3% |  | 2027 |  | 2,348 |  |  | 2,071 |  |  |
0.7% |  | 2028 |  | 2,113 |  |  | 1,863 |  |  |
1.5% |  | 2029 |  | 1,174 |  |  | 1,035 |  |  |
1.7% |  | 2030 |  | 2,054 |  |  | 1,035 |  |  |
2.7% |  | 2031 |  | 2,935 |  |  | 2,588 |  |  |
0.7% |  | 2032 |  | 1,878 |  |  | 1,656 |  |  |
3.2% |  | 2033 |  | 1,291 |  |  | — |  |  |
1.3% |  | 2034 |  | 1,174 |  |  | 1,035 |  |  |
3.8% |  | 2035 |  | 1,174 |  |  | 1,035 |  |  |
3.5% |  | 2037 |  | 1,056 |  |  | — |  |  |
1.2% |  | 2040 |  | 998 |  |  | 880 |  |  |
4.0% |  | 2043 |  | 1,174 |  |  | 1,035 |  |  |
3.8% |  | 2045 |  | 880 |  |  | — |  |  |
|  |  |  | $ | 21,422 |  |  | $ | 17,340 |  |  |
Other currencies (weighted-average interest rate at June 30, 2025): (1) |  |  |  |  |  |  |  |
Pound sterling (4.9%) |  | 2038 |  | $ | 1,027 |  |  | $ | 939 |  |  |
Japanese yen (0.9%) |  | 2026–2028 |  | 880 |  |  | 808 |  |  |
Other (13.8%) |  | 2025–2027 |  | 158 |  |  | 212 |  |  |
|  |  |  | $ | 64,063 |  |  | $ | 55,111 |  |  |
Finance lease obligations (4.8% weighted-average interest rate at June 30, 2025) |  | 2025–2035 |  | 1,180 |  |  | 1,000 |  |  |
|  |  |  | $ | 65,242 |  |  | $ | 56,112 |  |  |
Less: net unamortized discount |  |  |  | 825 |  |  | 824 |  |  |
Less: net unamortized debt issuance costs |  |  |  | 197 |  |  | 168 |  |  |
Add: fair value adjustment (2) |  |  |  | (57) |  |  | (176) |  |  |
|  |  |  | $ | 64,164 |  |  | $ | 54,943 |  |  |
Less: current maturities |  |  |  | 8,944 |  |  | 5,059 |  |  |
Total |  |  |  | $ | 55,219 |  |  | $ | 49,884 |  |  |
(1)Includes notes, debentures, bank loans and secured borrowings. (2)The portion of the company’s fixed-rate debt obligations that is hedged is reflected in the Consolidated Balance Sheet as an amount equal to the sum of the debt’s carrying value and a fair value adjustment representing changes in the fair value of the hedged debt obligations attributable to movements in benchmark interest rates. The company’s indenture governing its debt securities and its various credit facilities each contain significant covenants which obligate the company to promptly pay principal and interest, limit the aggregate amount of secured indebtedness and sale and leaseback transactions to 10 percent of the company’s consolidated net tangible assets, and restrict the company’s ability to merge or consolidate unless certain conditions are met. The credit facilities also include a covenant on the company’s consolidated net interest expense ratio, which cannot be less than 2.20 to 1.0, as well as a cross default provision with respect to other defaulted indebtedness of at least $500 million. The company is in compliance with its debt covenants and provides periodic certifications to its lenders. The failure to comply with its debt covenants could constitute an event of default with respect to the debt to which such provisions apply. If certain events of default were to occur, the principal and interest on the debt to which such event of default applied would become immediately due and payable. In the first quarter of 2024, IBM International Capital Pte. Ltd (IIC), a wholly owned finance subsidiary of the company, issued $5.5 billion of U.S. dollar fixed-rate notes (IIC Notes) in tranches with maturities ranging from 2 to 30 years and coupons ranging from 4.6 to 5.3 percent. IIC is a 100 percent owned finance subsidiary of IBM, as described by the SEC in Rule 13-01(a)(4)(vi) of Regulation S-X, the primary purpose of which is to borrow money to be made available for the benefit of IBM and its affiliates. The IIC Notes are fully and unconditionally guaranteed by IBM, and no other subsidiary of IBM guarantees the IIC Notes. On February 10, 2025, the company issued $3.6 billion of Euro fixed-rate notes in tranches with maturities ranging from 5 to 20 years and coupons ranging from 2.9 to 3.8 percent; and $4.75 billion of U.S. dollar fixed-rate notes in tranches with maturities ranging from 3 to 30 years and coupons ranging from 4.65 to 5.7 percent. Pre-swap annual contractual obligations of long-term debt outstanding at June 30, 2025, were as follows:
(Dollars in millions) |  | Total
Remainder of 2025 |  | $ | 2,968 |
2026 |  | 6,431 |
2027 |  | 6,732 |
2028 |  | 5,200 |
2029 |  | 5,083 |
Thereafter |  | 38,828 |
Total |  | $ | 65,242 |
Interest on Debt
(Dollars in millions) |  |  |  |
For the six months ended June 30: |  | 2025 |  | 2024
Cost of financing |  | $ | 173 |  |  | $ | 167 |
Interest expense |  | 965 |  |  | 859 |
Interest capitalized |  | 4 |  |  | 6 |
Total interest paid and accrued |  | $ | 1,141 |  |  | $ | 1,032 |
Lines of Credit On June, 20, 2025, the company amended its $2.5 billion Three-Year Credit Agreement and $7.5 billion Five-Year Credit Agreement (the Credit Agreements) to extend the maturity dates to June 20, 2028 and June 22, 2030, respectively. The Credit Agreements permit the company and its subsidiary borrowers to borrow up to $10 billion on a revolving basis. At June 30, 2025, there were no borrowings by the company, or its subsidiaries, under these credit facilities.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 8A -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-8A Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 405 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477092/405-40-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 405 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477092/405-40-50-1 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 405 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477092/405-40-50-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 405 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477092/405-40-50-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 405 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477092/405-40-50-1 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/470/tableOfContent Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 835 -SubTopic 30 -Name Accounting Standards Codification -Section 45 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482925/835-30-45-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1E -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1E Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration