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Revenue Recognition
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition:
Disaggregation of Revenue
The following tables provide details of revenue by major products/service offerings and revenue by geography.
Revenue by Major Products/Service Offerings
Three Months Ended June 30,Six Months Ended June 30,
(Dollars in millions)2023202220232022
Hybrid Platform & Solutions$4,665 $4,390 $8,844 $8,470 
Transaction Processing1,943 1,776 3,685 3,468 
Total Software$6,608 $6,166 $12,529 $11,938 
Business Transformation2,295 2,227 4,578 4,482 
Application Operations1,758 1,653 3,494 3,272 
Technology Consulting961 928 1,904 1,884 
Total Consulting$5,013 $4,809 $9,975 $9,637 
Hybrid Infrastructure2,260 2,760 3,969 4,461 
Infrastructure Support1,358 1,474 2,747 2,993 
Total Infrastructure$3,618 $4,235 $6,716 $7,453 
Financing*185 146 380 300 
Other51 180 126 404 
Total revenue$15,475 $15,535 $29,727 $29,732 
*Contains lease and loan financing arrangements which are not subject to the guidance on revenue from contracts with customers.
Revenue by Geography
 Three Months Ended June 30, Six Months Ended June 30,
(Dollars in millions)20232022 20232022
Americas$8,046 $8,142 $15,124 $15,198 
Europe/Middle East/Africa4,602 4,526 8,933 8,757 
Asia Pacific2,827 2,868 5,670 5,778 
Total$15,475 $15,535 $29,727 $29,732 
Remaining Performance Obligations
The remaining performance obligation (RPO) disclosure provides the aggregate amount of the transaction price yet to be recognized as of the end of the reporting period and an explanation as to when the company expects to recognize these amounts in revenue. It is intended to be a statement of overall work under contract that has not yet been performed and does not include contracts in which the customer is not committed, such as certain as-a-Service, governmental, term software license and services offerings. The customer is not considered committed when they are able to terminate for convenience without payment of a substantive penalty. The disclosure includes estimates of variable consideration, except when the variable consideration is a sales-based or usage-based royalty promised in exchange for a license of intellectual property. Additionally, as a practical expedient, the company does not include contracts that have an original duration of one year or less. RPO estimates are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, periodic revalidations, adjustment for revenue that has not materialized and adjustments for currency.
At June 30, 2023, the aggregate amount of the transaction price allocated to RPO related to customer contracts that are unsatisfied or partially unsatisfied was $58 billion. Approximately 72 percent of the amount is expected to be recognized as revenue in the subsequent two years, approximately 26 percent in the subsequent three to five years and the balance thereafter.
Revenue Recognized for Performance Obligations Satisfied (or Partially Satisfied) in Prior Periods
For the three and six months ended June 30, 2023, revenue was reduced by $14 million and $29 million, respectively, for performance obligations satisfied (or partially satisfied) in previous periods mainly due to changes in estimates on contracts with cost-to-cost measures of progress.
Reconciliation of Contract Balances
The following table provides information about notes and accounts receivable–trade, contract assets and deferred income balances.
(Dollars in millions)At June 30, 2023At December 31, 2022
Notes and accounts receivable — trade (net of allowances of $217 in 2023 and $233 in 2022)
$5,673 $6,541 
Contract assets*$447 $464 
Deferred income (current)$12,712 $12,032 
Deferred income (noncurrent)$3,264 $3,499 
*Included within prepaid expenses and other current assets in the Consolidated Balance Sheet.
The amount of revenue recognized during the three and six months ended June 30, 2023 that was included within the deferred income balance at March 31, 2023 and December 31, 2022 was $4.4 billion and $6.8 billion, respectively, and was primarily related to services and software.
The following table provides roll forwards of the notes and accounts receivable–trade allowance for expected credit losses for the six months ended June 30, 2023 and the year ended December 31, 2022.
(Dollars in millions)    
January 1, 2023Additions / (Releases)Write-offs Foreign currency and otherJune 30, 2023
$233 $31 $(47)$1 $217 
January 1, 2022Additions / (Releases)Write-offs Foreign currency and otherDecember 31, 2022
$218 $59 $(31)$(14)$233 
The contract assets allowance for expected credit losses was not material in any of the periods presented.