Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2019

Revenue Recognition

Schedule of disaggregation of revenue

Revenue by Major Products/Service Offerings

(Dollars in millions)	Cloud &		Global		Global
For the three months	Cognitive		Business		Technology				Global				Total
ended June 30, 2019:	Software		Services		Services		Systems		Financing		Other		Revenue
Cognitive Applications	$	1,454	$	—	$	—	$	—	$	—	$	—	$	1,454
Cloud & Data Platforms		2,173		—		—		—		—		—		2,173
Transaction Processing Platforms		2,018		—		—		—		—		—		2,018
Consulting		—		1,978		—		—		—		—		1,978
Application Management		—		1,919		—		—		—		—		1,919
Global Process Services		—		258		—		—		—		—		258
Infrastructure & Cloud Services		—		—		5,174		—		—		—		5,174
Technology Support Services		—		—		1,663		—		—		—		1,663
Systems Hardware		—		—		—		1,328		—		—		1,328
Operating Systems Software		—		—		—		425		—		—		425
Global Financing*		—		—		—		—		351		—		351
Other Revenue		—		—		—		—		—		420		420
Total	$	5,645	$	4,155	$	6,837	$	1,753	$	351	$	420	$	19,161

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

Revenue by Geography

(Dollars in millions)	Total
For the three months ended June 30, 2019:	Revenue
Americas	$	8,806
Europe/Middle East/Africa		6,149
Asia Pacific		4,205
Total	$	19,161

Revenue by Major Products/Service Offerings

(Dollars in millions)	Cloud &		Global		Global
For the three months	Cognitive		Business		Technology				Global				Total
ended June 30, 2018:	Software*		Services*		Services*		Systems		Financing		Other*		Revenue
Cognitive Applications	$	1,413	$	—	$	—	$	—	$	—	$	—	$	1,413
Cloud & Data Platforms		2,079		—		—		—		—		—		2,079
Transaction Processing Platforms		1,978		—		—		—		—		—		1,978
Consulting		—		1,931		—		—		—		—		1,931
Application Management		—		1,946		—		—		—		—		1,946
Global Process Services		—		258		—		—		—		—		258
Infrastructure & Cloud Services		—		—		5,575		—		—		—		5,575
Technology Support Services		—		—		1,750		—		—		—		1,750
Systems Hardware		—		—		—		1,756		—		—		1,756
Operating Systems Software		—		—		—		421		—		—		421
Global Financing**		—		—		—		—		394		—		394
Other Revenue		—		—		—		—		—		503		503
Total	$	5,470	$	4,135	$	7,325	$	2,177	$	394	$	503	$	20,003

*   Recast to conform to 2019 presentation.

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

Revenue by Geography

(Dollars in millions)	Total
For the three months ended June 30, 2018:	Revenue
Americas	$	9,212
Europe/Middle East/Africa		6,407
Asia Pacific		4,384
Total	$	20,003

Revenue by Major Products/Service Offerings

(Dollars in millions)	Cloud &		Global		Global
For the six months	Cognitive		Business		Technology				Global				Total
ended June 30, 2019:	Software		Services		Services		Systems		Financing		Other		Revenue
Cognitive Applications	$	2,762	$	—	$	—	$	—	$	—	$	—	$	2,762
Cloud & Data Platforms		4,090		—		—		—		—		—		4,090
Transaction Processing Platforms		3,830		—		—		—		—		—		3,830
Consulting		—		3,942		—		—		—		—		3,942
Application Management		—		3,827		—		—		—		—		3,827
Global Process Services		—		505		—		—		—		—		505
Infrastructure & Cloud Services		—		—		10,383		—		—		—		10,383
Technology Support Services		—		—		3,328		—		—		—		3,328
Systems Hardware		—		—		—		2,241		—		—		2,241
Operating Systems Software		—		—		—		840		—		—		840
Global Financing*		—		—		—		—		757		—		757
Other Revenue		—		—		—		—		—		837		837
Total	$	10,682	$	8,274	$	13,711	$	3,081	$	757	$	837	$	37,342

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

Revenue by Geography

(Dollars in millions)	Total
For the six months ended June 30, 2019:	Revenue
Americas	$	17,299
Europe/Middle East/Africa		11,876
Asia Pacific		8,167
Total	$	37,342

Revenue by Major Products/Service Offerings

(Dollars in millions)	Cloud &		Global		Global
For the six months	Cognitive		Business		Technology				Global				Total
ended June 30, 2018:	Software*		Services*		Services*		Systems		Financing		Other*		Revenue
Cognitive Applications	$	2,699	$	—	$	—	$	—	$	—	$	—	$	2,699
Cloud & Data Platforms		4,029		—		—		—		—		—		4,029
Transaction Processing Platforms		3,858		—		—		—		—		—		3,858
Consulting		—		3,798		—		—		—		—		3,798
Application Management		—		3,948		—		—		—		—		3,948
Global Process Services		—		504		—		—		—		—		504
Infrastructure & Cloud Services		—		—		11,214		—		—		—		11,214
Technology Support Services		—		—		3,531		—		—		—		3,531
Systems Hardware		—		—		—		2,848		—		—		2,848
Operating Systems Software		—		—		—		828		—		—		828
Global Financing**		—		—		—		—		799		—		799
Other Revenue		—		—		—		—		—		1,017		1,017
Total	$	10,586	$	8,250	$	14,746	$	3,676	$	799	$	1,017	$	39,075

*   Recast to conform to 2019 presentation.

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

Revenue by Geography

(Dollars in millions)	Total
For the six months ended June 30, 2018:	Revenue
Americas	$	17,919
Europe/Middle East/Africa		12,583
Asia Pacific		8,573
Total	$	39,075

Schedule of reconciliation of contract balances

	At June 30,		At December 31,
(Dollars in millions)	2019		2018
Notes and accounts receivable—trade (net of allowances of $281 and $309 at June 30, 2019 and December 31, 2018, respectively)	$	7,414	$	7,432
Contract assets(1)		594		470
Deferred income (current)		11,261		11,165
Deferred income (noncurrent)		3,474		3,445

(1) Included within prepaid expenses and other current assets in the Consolidated Statement of Financial Position.