Property, Plant and Equipment Disclosure
Asset Age Ratios (Summary)
Average Age
Estimated Total Useful Life
Estimated Age, Time Elapsed Since Purchase
Estimated Remaining Life

International Business Machines Corp., balance sheet: property, plant and equipment

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Land and land improvements	182)	213)	224)	381)	365)
Buildings and building and leasehold improvements	5,333)	5,678)	6,049)	9,416)	9,364)
Information technology equipment	9,222)	9,643)	10,515)	19,419)	18,054)
Production, engineering, office and other equipment	3,385)	3,161)	3,222)	3,695)	3,721)
Rental machines	—)	—)	74)	265)	524)
Property, plant and equipment, gross	18,122)	18,695)	20,084)	33,176)	32,028)
Accumulated depreciation	(12,621)	(13,361)	(14,390)	(23,136)	(22,018)
Property, plant and equipment, net	5,501)	5,334)	5,694)	10,040)	10,010)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Property, plant and equipment, gross	Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	International Business Machines Corp. property, plant and equipment, gross decreased from 2021 to 2022 and from 2022 to 2023.
Property, plant and equipment, net	Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	International Business Machines Corp. property, plant and equipment, net decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

International Business Machines Corp., asset age ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Average age ratio	70.35%	72.29%	72.46%	70.55%	69.54%
Estimated total useful life (years)	9	8	5	8	8
Estimated age, time elapsed since purchase (years)	6	6	4	5	5
Estimated remaining life (years)	3	2	1	2	2

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Asset age ratio	Description	The company
Average age ratio	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	International Business Machines Corp. average age ratio of depreciable property, plant and equipment improved from 2021 to 2022 and from 2022 to 2023.
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	International Business Machines Corp. estimated total useful life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	International Business Machines Corp. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.
Estimated remaining life		International Business Machines Corp. estimated remaining life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Accumulated depreciation	12,621)	13,361)	14,390)	23,136)	22,018)
Property, plant and equipment, gross	18,122)	18,695)	20,084)	33,176)	32,028)
Land and land improvements	182)	213)	224)	381)	365)
Asset Age Ratio
Average age¹	70.35%	72.29%	72.46%	70.55%	69.54%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ (Property, plant and equipment, gross – Land and land improvements)
= 100 × 12,621 ÷ (18,122 – 182) = 70.35%

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Asset age ratio	Description	The company
Average age	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	International Business Machines Corp. average age ratio of depreciable property, plant and equipment improved from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Property, plant and equipment, gross	18,122)	18,695)	20,084)	33,176)	32,028)
Land and land improvements	182)	213)	224)	381)	365)
Depreciation expense	2,109)	2,407)	3,888)	4,227)	4,209)
Asset Age Ratio (Years)
Estimated total useful life¹	9	8	5	8	8

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Estimated total useful life = (Property, plant and equipment, gross – Land and land improvements) ÷ Depreciation expense
= (18,122 – 182) ÷ 2,109 = 9

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Asset age ratio	Description	The company
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	International Business Machines Corp. estimated total useful life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Accumulated depreciation	12,621)	13,361)	14,390)	23,136)	22,018)
Depreciation expense	2,109)	2,407)	3,888)	4,227)	4,209)
Asset Age Ratio (Years)
Time elapsed since purchase¹	6	6	4	5	5

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 12,621 ÷ 2,109 = 6

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Asset age ratio	Description	The company
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	International Business Machines Corp. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Property, plant and equipment, net	5,501)	5,334)	5,694)	10,040)	10,010)
Land and land improvements	182)	213)	224)	381)	365)
Depreciation expense	2,109)	2,407)	3,888)	4,227)	4,209)
Asset Age Ratio (Years)
Estimated remaining life¹	3	2	1	2	2

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Estimated remaining life = (Property, plant and equipment, net – Land and land improvements) ÷ Depreciation expense
= (5,501 – 182) ÷ 2,109 = 3

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Asset age ratio	Description	The company
Estimated remaining life		International Business Machines Corp. estimated remaining life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.

International Business Machines Corp. (NYSE:IBM)

Analysis of Property, Plant and Equipment

Property, Plant and Equipment Disclosure

Asset Age Ratios (Summary)

Average Age

Estimated Total Useful Life

Estimated Age, Time Elapsed since Purchase

Estimated Remaining Life