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Revenue Recognition
 6 Months Ended
Jun. 30, 2024
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)2024
2023 (1)
2024
2023 (1)
Hybrid Platform & Solutions$4,575 $4,350 $8,673 $8,200 
Transaction Processing2,164 1,943 3,964 3,685 
Total Software$6,739 $6,294 $12,637 $11,885 
Business Transformation2,360 2,295 4,677 4,578 
Application Operations1,902 1,991 3,840 3,980 
Technology Consulting917 941 1,848 1,866 
Total Consulting$5,179 $5,226 $10,365 $10,423 
Hybrid Infrastructure2,360 2,260 4,163 3,969 
Infrastructure Support1,285 1,358 2,558 2,747 
Total Infrastructure$3,645 $3,618 $6,721 $6,716 
Financing (2)
169 185 362 380 
Other38 152 146 321 
Total revenue$15,770 $15,475 $30,231 $29,727 
(1)Recast to reflect January 2024 segment changes. Refer to note 4, "Segments," for additional information.
(2)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)2024202320242023
Americas$7,979 $8,046 $15,275 $15,124 
Europe/Middle East/Africa4,722 4,602 9,035 8,933 
Asia Pacific3,069 2,827 5,922 5,670 
Total$15,770 $15,475 $30,231 $29,727 
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, 2024, the aggregate amount of the transaction price allocated to RPO related to customer contracts that are unsatisfied or partially unsatisfied was approximately $56 billion. Approximately 70 percent of the amount is expected to be recognized as revenue in the subsequent two years, approximately 27 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, 2024, revenue recognized for performance obligations satisfied or partially satisfied in prior periods was immaterial.
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, 2024At December 31, 2023
Notes and accounts receivable — trade (net of allowances of $129 in 2024 and $192 in 2023)
$5,769 $7,214 
Contract assets (1)
$540 $505 
Deferred income (current)$13,643 $13,451 
Deferred income (noncurrent)$3,489 $3,533 
(1)Included within prepaid expenses and other current assets in the Consolidated Balance Sheet.
The amount of revenue recognized during the six months ended June 30, 2024 that was included within the deferred income balance at December 31, 2023 was $7.4 billion and was primarily related to software and services.
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, 2024 and the year ended December 31, 2023.
(Dollars in millions)    
January 1, 2024Additions / (Releases)
Write-offs (1)
Foreign currency and otherJune 30, 2024
$192$(7)$(61)$4$129
January 1, 2023Additions / (Releases)
Write-offs (1)
Foreign currency and otherDecember 31, 2023
$233$32$(79)$6$192
(1)The majority of the write-offs during the period related to receivables which had been previously reserved.
The contract assets allowance for expected credit losses was not material in any of the periods presented.