v3.26.1
Employee Benefit Plan, Fair Value and NAV
 12 Months Ended
Dec. 31, 2025
EBP 001  
EBP, Investment, Fair Value and NAV [Line Items]  
EBP, Investment, Fair Value and NAV
NOTE 3 — INVESTMENTS
The following tables set forth by level, within the fair value hierarchy, the Plan’s investments at fair value at December 31, 2025 and 2024.
Investments at Fair Value as of December 31, 2025
($ in thousands)
Level 1Level 2Level 3Total
Equity:    
Equity mutual funds $6,552,765 $— $— $6,552,765 
IBM Corporation common stock 1,573,853 — — 1,573,853 
Equity securities 16,502,777 4,886,356 342 21,389,474 
 
Fixed income:
Government securities — 4,488,490 — 4,488,490 
Corporate bonds — 2,236,113 52 2,236,165 
Mortgage and asset-backed securities — 265,652 — 265,652 
Fixed income mutual funds 1,252,701 — — 1,252,701 
 
Cash and cash equivalents 38,363 — — 38,363 
 
Derivatives 88 29,981 — 30,069 
 
Other mutual funds 862,255 — — 862,255 
    
Subtotal 26,782,801 11,906,593 394 38,689,787 
    
Investments measured at net asset value using the NAV practical expedient (1)
— — — 18,781,805 
Total investments at fair value $26,782,801 $11,906,593 $394 $57,471,593 
(1)Investments measured at fair value using the net asset value (NAV) per share (or its equivalent) as a practical expedient include commingled funds. Commingled funds may include 103-12 investments, common collective trusts, and pooled separate accounts.
There were no material purchases, sales or transfers into or out of Level 3 for the period ending December 31, 2025.
Investments at Fair Value as of December 31, 2024
($ in thousands)
Level 1Level 2Level 3Total
Equity:    
Equity mutual funds $7,157,340 $— $104 $7,157,443 
IBM Corporation common stock 1,268,387 — — 1,268,387 
Equity securities 15,197,514 4,292,440 397 19,490,351 
 
Fixed income:
Government securities — 4,241,973 — 4,241,973 
Corporate bonds — 2,153,099 52 2,153,151 
Mortgage and asset-backed securities 2,589 282,396 — 284,984 
Fixed income mutual funds 1,183,181 — — 1,183,181 
 
Cash and cash equivalents 80,143 1,198 — 81,341 
 
Derivatives (10,596)15,885 — 5,288 
 
Other mutual funds 1,073,606 — — 1,073,606 
    
Subtotal 25,952,162 10,986,990 553 36,939,706 
    
Investments measured at net asset value using the NAV practical expedient (1)
—— — 15,938,706 
Total investments at fair value $25,952,162 $10,986,990 $553 $52,878,411 
(1)Investments measured at fair value using the net asset value (NAV) per share (or its equivalent) as a practical expedient include commingled funds. Commingled funds may include 103-12 investments, common collective trusts, and pooled separate accounts.
There were no material purchases, sales or transfers into or out of Level 3 for the period ending December 31, 2024.
Fair Value of Investments that Calculate Net Asset Value
The following table summarizes investments measured at fair value based on net asset value per share at December 31, 2025 and 2024, respectively:
($ in thousands)
Investments at Fair Value:
20252024
Commingled Equity funds $17,435,121 $14,684,492 
Other funds 1,333,981 907,866 
Short-term Investment funds 12,703 346,348 
Total investments measured at net asset value using the NAV practical expedient $18,781,805 $15,938,706 
Generally, under ordinary market conditions, investments in the funds included in the table above provide daily market liquidity to Plan participants and the Plan, facilitating daily participant transactions (issuances and redemptions). Investment in some of these funds may be subject to redemption restrictions at the fund’s discretion in limited situations including, but not limited to, a major market event, closure of a market on which any significant portion of the assets of the fund are invested, a situation deemed to be an emergency by the fund, and a situation in which price or value of the assets cannot be promptly and accurately ascertained. At December 31, 2025 and 2024, no funds were subject to redemption restrictions.