Financing Receivables (Tables)

12 Months Ended

Dec. 31, 2021


($ in millions)
	Client Financing Receivables				Commercial Financing Receivables
	Client Loan and		Investment in
	Installment Payment		Sales-Type and
	Receivables/		Direct Financing		Held for		Held for
At December 31, 2021:	(Loans)		Leases		Investment		Sale		*	Total
Financing receivables, gross	$	9,303	$	3,336	$	450	$	793		$	13,881
Unearned income		(353)		(223)		—		—			(576)
Residual value**		—		335		—		—			335
Amortized cost	$	8,949	$	3,448	$	450	$	793		$	13,640
Allowance for credit losses		(131)		(64)		(6)		—			(201)
Total financing receivables, net	$	8,818	$	3,384	$	444	$	793		$	13,439
Current portion	$	5,371	$	1,406	$	444	$	793		$	8,014
Noncurrent portion	$	3,447	$	1,978	$	—	$	—		$	5,425


($ in millions)
	Client Financing Receivables				Commercial Financing Receivables^È
	Client Loan and		Investment in
	Installment Payment		Sales-Type and
	Receivables/		Direct Financing		Held for		Held for
At December 31, 2020:	(Loans)		Leases		Investment		Sale		*	Total
Financing receivables, gross	$	12,159	$	4,001	$	2,036	$	383		$	18,580
Unearned income		(488)		(335)		0		—			(823)
Residual value**		—		485		—		—			485
Amortized cost	$	11,671	$	4,151	$	2,036	$	383		$	18,242
Allowance for credit losses		(173)		(82)		(8)		—			(263)
Total financing receivables, net	$	11,498	$	4,069	$	2,028	$	383		$	17,979
Current portion	$	6,955	$	1,525	$	2,028	$	383		$	10,892
Noncurrent portion	$	4,542	$	2,544	$	—	$	—		$	7,086

*	The carrying value of the receivables classified as held for sale approximates fair value.

**	Includes guaranteed and unguaranteed residual value.

^È	Recast to conform to 2021 presentation.


($ in millions)
	2021		2020
Client financing receivables for the year ended December 31
Lease receivables	$	819	$	1,152
Loan receivables		2,224		1,410
Total client financing receivables transferred*	$	3,043	$	2,562
Commercial financing receivables
Receivables transferred for the year ended December 31	$	7,359	$	515
Receivables transferred and uncollected as of December 31**		1,653		510

* More than half of the client financing receivables sold were classified as current assets at the time of sale.

**	Of the total amount of commercial financing receivables sold and derecognized from the Consolidated Balance Sheet, the amounts presented remained uncollected from business partners as of December 31, 2021 and 2020.


($ in millions)
At December 31, 2021:	Americas		EMEA		Asia Pacific		Total
Amortized cost	$	6,573	$	3,793	$	2,031	$	12,397
Allowance for credit losses
Beginning balance at January 1, 2021	$	141	$	77	$	37	$	255
Write-offs		(8)		(2)		(7)		(17)
Recoveries		0		0		1		1
Additions/(releases)		(19)		(11)		(7)		(38)
Other*		(3)		(3)		0		(7)
Ending balance at December 31, 2021	$	111	$	61	$	23	$	195

* Primarily represents translation adjustments.


($ in millions)
At December 31, 2020:	Americas		EMEA		Asia Pacific		Total
Amortized cost	$	7,758	$	5,023	$	3,042	$	15,822
Allowance for credit losses
Beginning balance at January 1, 2020		142		69		41		252
Write-offs		(28)		(3)		(3)		(34)
Recoveries		0		0		2		3
Additions/(releases)		33		5		(4)		34
Other*		(6)		6		1		1
Ending balance at December 31, 2020	$	141	$	77	$	37	$	255

* Primarily represents translation adjustments.


($ in millions)
						Amortized			Billed		Amortized
	Total		Amortized			Cost			Invoices		Cost
	Amortized		Cost			> 90 Days and			> 90 Days and		Not
At December 31, 2021:	Cost		> 90 Days		⁽¹⁾	Accruing		⁽¹⁾	Accruing		Accruing		⁽²⁾
Americas	$	6,573	$	188		$	100		$	6	$	90
EMEA		3,793		99			7			2		95
Asia Pacific		2,031		25			5			2		20
Total client financing receivables	$	12,397	$	312		$	112		$	10	$	205


($ in millions)
						Amortized			Billed		Amortized
	Total		Amortized			Cost			Invoices		Cost
	Amortized		Cost			> 90 Days and			> 90 Days and		Not
At December 31, 2020:	Cost		> 90 Days		⁽¹⁾	Accruing		⁽¹⁾	Accruing		Accruing		⁽²⁾
Americas	$	7,758	$	295		$	200		$	12	$	96
EMEA		5,023		119			28			5		95
Asia Pacific		3,042		42			12			4		32
Total client financing receivables	$	15,822	$	456		$	241		$	20	$	223

(1)	At a contract level, which includes total billed and unbilled amounts for financing receivables aged greater than 90 days.

(2)	Of the amortized cost not accruing, there was a related allowance of $153 million and $178 million at December 31, 2021 and 2020, respectively. Financing income recognized on these receivables was immaterial for the years ended December 31, 2021 and 2020, respectively.