SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

12 Months Ended

Dec. 31, 2023

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

SCHEDULE II

INTERNATIONAL BUSINESS MACHINES CORPORATION AND SUBSIDIARY COMPANIES

VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

For the Years Ended December 31:

(Dollars in Millions)

Description	Balance at Beginning of Period		Additions/ (Deductions)		Write-offs		Foreign Currency and Other		Balance at End of Period
Allowance For Credit Losses
2023
–Current (1)	$	467	$	13	$	(97)	$	48	$	431
–Noncurrent	$	28	$	(2)	$	—	$	0	$	27
2022
–Current (1)	$	418	$	59	$	(55)	$	45	$	467
–Noncurrent	$	25	$	6	$	0	$	(2)	$	28
2021
–Current	$	503	$	(35)	$	(46)	$	(4)	$	418
–Noncurrent	$	47	$	(21)	$	0	$	(2)	$	25
Allowance For Inventory Losses
2023	$	631	$	201	$	(183)	$	9	$	658
2022	$	633	$	162	$	(148)	$	(15)	$	631
2021	$	514	$	240	$	(118)	$	(3)	$	633
Revenue Based Provisions
2023	$	424	$	500	$	(456)	$	12	$	480
2022	$	435	$	620	$	(629)	$	(2)	$	424
2021	$	372	$	627	$	(574)	$	10	$	435

(1) Other includes reserves related to discontinued operations.

Additions/(Deductions) to the allowances represent changes in estimates of unrecoverable amounts in receivables and inventory and are recorded to expense and cost accounts, respectively. Amounts are written-off when they are deemed unrecoverable by the company. Additions/(Deductions) to Revenue Based Provisions represent changes in estimated reductions to revenue, primarily as a result of revenue-related programs, including customer and business partner rebates. Write-offs for Revenue Based Provisions represent reductions in the provision due to amounts remitted to customers and business partners.