Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

International Business Machines Corp., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Taxes	2,347)	2,033)	2,270)	2,196)	2,289)
Short-term debt	6,424)	5,089)	6,426)	4,760)	6,787)
Accounts payable	4,756)	4,032)	4,132)	4,051)	3,955)
Compensation and benefits	4,114)	3,605)	3,501)	3,481)	3,204)
Deferred income	16,101)	13,907)	13,451)	12,032)	12,518)
Current operating lease liabilities	800)	768)	820)	874)	974)
Other accrued expenses and liabilities	4,116)	3,708)	3,522)	4,111)	3,892)
Current liabilities	38,658)	33,142)	34,122)	31,505)	33,619)
Long-term debt, excluding current maturities	54,836)	49,884)	50,121)	46,189)	44,917)
Retirement and nonpension postretirement benefit obligations	9,018)	9,432)	10,808)	9,596)	14,435)
Deferred income	4,271)	3,622)	3,533)	3,499)	3,577)
Noncurrent operating lease liabilities	2,547)	2,655)	2,568)	2,190)	2,462)
Income tax reserves	5,671)	6,865)	6,916)	6,404)	6,179)
Deferred taxes	781)	815)	1,146)	2,292)	3,956)
Excess Savings Plan	1,545)	1,445)	1,437)	1,307)	1,686)
Disability benefits	278)	274)	308)	303)	359)
Derivative liabilities	259)	463)	299)	488)	103)
Workforce reductions	424)	445)	526)	524)	752)
Environmental accruals	207)	204)	206)	243)	224)
Other	644)	537)	638)	682)	736)
Other liabilities	9,809)	11,048)	11,476)	12,243)	13,995)
Noncurrent liabilities	80,481)	76,641)	78,506)	73,717)	79,386)
Total liabilities	119,139)	109,783)	112,628)	105,222)	113,005)
Common stock, par value $.20 per share, and additional paid-in capital	63,318)	61,380)	59,643)	58,343)	57,319)
Retained earnings	155,648)	151,163)	151,275)	149,825)	154,209)
Treasury stock, at cost	(170,605)	(169,967)	(169,624)	(169,484)	(169,393)
Accumulated other comprehensive loss	(15,713)	(15,269)	(18,761)	(16,740)	(23,234)
Total IBM stockholders’ equity	32,648)	27,307)	22,533)	21,944)	18,901)
Noncontrolling interests	92)	86)	80)	77)	95)
Total equity	32,740)	27,393)	22,613)	22,021)	18,996)
Total liabilities and equity	151,879)	137,176)	135,241)	127,243)	132,001)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

Overall, the liabilities and stockholders’ equity of the company demonstrate a fluctuating pattern over the five-year period. Total liabilities increased from 2021 to 2025, while stockholders’ equity exhibited growth, albeit with some volatility. A significant increase in total liabilities and equity is observed between 2024 and 2025.

Current Liabilities: Current liabilities generally remained stable between 2021 and 2024, fluctuating around US$33 billion. However, a notable increase to US$38.658 billion is observed in 2025. Accounts payable showed a gradual increase over the period, reaching US$4.756 billion in 2025. Deferred income consistently increased, rising from US$12.518 billion in 2021 to US$16.101 billion in 2025. Compensation and benefits also increased steadily, reaching US$4.114 billion in 2025. Short-term debt decreased from 2021 to 2022, then increased again, remaining relatively stable between 2023 and 2025.
Noncurrent Liabilities: Noncurrent liabilities experienced a decrease from 2021 to 2022, followed by an increase to US$78.506 billion in 2023. They decreased slightly in 2024 before rising again to US$80.481 billion in 2025. Long-term debt, excluding current maturities, consistently increased over the period, reaching US$54.836 billion in 2025. Retirement and nonpension postretirement benefit obligations decreased significantly from 2021 to 2022, then stabilized, showing a slight decrease in 2025. Income tax reserves decreased from 2021 to 2025, while deferred taxes experienced a substantial decline over the same period.
Stockholders’ Equity: Total stockholders’ equity showed an upward trend, increasing from US$18.901 billion in 2021 to US$32.648 billion in 2025. Common stock and additional paid-in capital increased steadily throughout the period. Retained earnings also increased, though with some fluctuation, reaching US$155.648 billion in 2025. Treasury stock consistently increased in absolute value (negative equity), indicating ongoing share repurchases. Accumulated other comprehensive loss decreased over the period, becoming less negative. Noncontrolling interests remained relatively stable.
Total Liabilities and Equity: Total liabilities and equity increased from US$132.001 billion in 2021 to US$151.879 billion in 2025. The most significant increase occurred between 2024 and 2025, driven by increases in both total liabilities and total equity. This suggests overall growth in the company’s financial size.

The company’s reliance on both short-term and long-term debt is apparent, with both categories experiencing increases over the five-year period. The growth in stockholders’ equity, particularly retained earnings, indicates profitability and reinvestment in the business. The consistent increase in treasury stock suggests an active share repurchase program. The fluctuations in certain liability accounts, such as deferred income and retirement obligations, warrant further investigation to understand the underlying drivers.

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International Business Machines Corp. (NYSE:IBM)

Balance Sheet: Liabilities and Stockholders’ Equity