Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Schedule of 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 September 30,				Nine Months Ended September 30,
(Dollars in millions)	2023		2022		2023		2022
Hybrid Platform & Solutions	$	4,506	$	4,172	$	13,350	$	12,641
Transaction Processing	1,759		1,640		5,444		5,107
Total Software	$	6,265	$	5,811	$	18,794	$	17,749
Business Transformation	2,291		2,165		6,869		6,646
Application Operations	1,710		1,593		5,204		4,865
Technology Consulting	961		943		2,865		2,826
Total Consulting	$	4,963	$	4,700	$	14,938	$	14,337
Hybrid Infrastructure	1,943		1,931		5,912		6,392
Infrastructure Support	1,329		1,421		4,076		4,413
Total Infrastructure	$	3,272	$	3,352	$	9,988	$	10,805
Financing*	186		174		566		474
Other	67		70		192		475
Total revenue	$	14,752	$	14,107	$	44,479	$	43,840

*Contains lease and loan financing arrangements which are not subject to the guidance on revenue from contracts with customers.

Schedule of disaggregation of revenue by geography

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in millions)	2023		2022		2023		2022
Americas	$	7,686	$	7,416	$	22,810	$	22,614
Europe/Middle East/Africa	4,223		3,959		13,156		12,716
Asia Pacific	2,843		2,732		8,513		8,509
Total	$	14,752	$	14,107	$	44,479	$	43,840

Schedule of 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 September 30, 2023		At December 31, 2022
Notes and accounts receivable — trade (net of allowances of $198 in 2023 and $233 in 2022)	$	5,330	$	6,541
Contract assets*	$	454	$	464
Deferred income (current)	$	11,917	$	12,032
Deferred income (noncurrent)	$	3,085	$	3,499

*Included within prepaid expenses and other current assets in the Consolidated Balance Sheet.

Schedule of notes and accounts receivable - trade allowance for credit losses

The following table provides roll forwards of the notes and accounts receivable–trade allowance for expected credit losses for the nine months ended September 30, 2023 and the year ended December 31, 2022.

(Dollars in millions)
January 1, 2023		Additions / (Releases)		Write-offs		Foreign currency and other		September 30, 2023
$	233	$	28	$	(67)	$	4	$	198

January 1, 2022		Additions / (Releases)		Write-offs		Foreign currency and other		December 31, 2022
$	218	$	59	$	(31)	$	(14)	$	233