Revenue Recognition (Tables)

9 Months Ended

Sep. 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 September 30, 2019:	Software		Services		Services		Systems		Financing		Other		Revenue
Cognitive Applications	$	1,383	$	—	$	—	$	—	$	—	$	—	$	1,383
Cloud & Data Platforms		2,308		—		—		—		—		—		2,308
Transaction Processing Platforms		1,589		—		—		—		—		—		1,589
Consulting		—		1,973		—		—		—		—		1,973
Application Management		—		1,897		—		—		—		—		1,897
Global Process Services		—		247		—		—		—		—		247
Infrastructure & Cloud Services		—		—		5,071		—		—		—		5,071
Technology Support Services		—		—		1,629		—		—		—		1,629
Systems Hardware		—		—		—		1,117		—		—		1,117
Operating Systems Software		—		—		—		364		—		—		364
Global Financing*		—		—		—		—		343		—		343
Other Revenue		—		—		—		—		—		107		107
Total	$	5,280	$	4,117	$	6,700	$	1,481	$	343	$	107	$	18,028

* 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 September 30, 2019:	Revenue
Americas	$	8,514
Europe/Middle East/Africa		5,477
Asia Pacific		4,036
Total	$	18,028

Revenue by Major Products/Service Offerings

(Dollars in millions)	Cloud &		Global		Global
For the three months	Cognitive		Business		Technology				Global				Total
ended September 30, 2018:	Software*		Services*		Services*		Systems		Financing		Other*		Revenue
Cognitive Applications	$	1,324	$	—	$	—	$	—	$	—	$	—	$	1,324
Cloud & Data Platforms		1,968		—		—		—		—		—		1,968
Transaction Processing Platforms		1,669		—		—		—		—		—		1,669
Consulting		—		1,900		—		—		—		—		1,900
Application Management		—		1,915		—		—		—		—		1,915
Global Process Services		—		260		—		—		—		—		260
Infrastructure & Cloud Services		—		—		5,393		—		—		—		5,393
Technology Support Services		—		—		1,707		—		—		—		1,707
Systems Hardware		—		—		—		1,339		—		—		1,339
Operating Systems Software		—		—		—		397		—		—		397
Global Financing**		—		—		—		—		388		—		388
Other Revenue		—		—		—		—		—		493		493
Total	$	4,962	$	4,076	$	7,101	$	1,736	$	388	$	493	$	18,756

*   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 September 30, 2018:	Revenue
Americas	$	8,853
Europe/Middle East/Africa		5,827
Asia Pacific		4,076
Total	$	18,756

Revenue by Major Products/Service Offerings

(Dollars in millions)	Cloud &		Global		Global
For the nine months	Cognitive		Business		Technology				Global				Total
ended September 30, 2019:	Software		Services		Services		Systems		Financing		Other		Revenue
Cognitive Applications	$	4,145	$	—	$	—	$	—	$	—	$	—	$	4,145
Cloud & Data Platforms		6,398		—		—		—		—		—		6,398
Transaction Processing Platforms		5,419		—		—		—		—		—		5,419
Consulting		—		5,915		—		—		—		—		5,915
Application Management		—		5,724		—		—		—		—		5,724
Global Process Services		—		752		—		—		—		—		752
Infrastructure & Cloud Services		—		—		15,454		—		—		—		15,454
Technology Support Services		—		—		4,958		—		—		—		4,958
Systems Hardware		—		—		—		3,358		—		—		3,358
Operating Systems Software		—		—		—		1,204		—		—		1,204
Global Financing*		—		—		—		—		1,100		—		1,100
Other Revenue		—		—		—		—		—		944		944
Total	$	15,962	$	12,391	$	20,412	$	4,562	$	1,100	$	944	$	55,370

* 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 nine months ended September 30, 2019:	Revenue
Americas	$	25,813
Europe/Middle East/Africa		17,354
Asia Pacific		12,203
Total	$	55,370

Revenue by Major Products/Service Offerings

(Dollars in millions)	Cloud &		Global		Global
For the nine months	Cognitive		Business		Technology				Global				Total
ended September 30, 2018:	Software*		Services*		Services*		Systems		Financing		Other*		Revenue
Cognitive Applications	$	4,023	$	—	$	—	$	—	$	—	$	—	$	4,023
Cloud & Data Platforms		5,997		—		—		—		—		—		5,997
Transaction Processing Platforms		5,528		—		—		—		—		—		5,528
Consulting		—		5,698		—		—		—		—		5,698
Application Management		—		5,863		—		—		—		—		5,863
Global Process Services		—		765		—		—		—		—		765
Infrastructure & Cloud Services		—		—		16,608		—		—		—		16,608
Technology Support Services		—		—		5,239		—		—		—		5,239
Systems Hardware		—		—		—		4,187		—		—		4,187
Operating Systems Software		—		—		—		1,225		—		—		1,225
Global Financing**		—		—		—		—		1,188		—		1,188
Other Revenue		—		—		—		—		—		1,511		1,511
Total	$	15,548	$	12,326	$	21,846	$	5,412	$	1,188	$	1,511	$	57,830

*   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 nine months ended September 30, 2018:	Revenue
Americas	$	26,772
Europe/Middle East/Africa		18,410
Asia Pacific		12,648
Total	$	57,830

Schedule of reconciliation of contract balances

	At September 30,		At December 31,
(Dollars in millions)	2019		2018
Notes and accounts receivable — trade (net of allowances of $286 and $309 at September 30, 2019 and December 31, 2018, respectively)	$	6,753	$	7,432
Contract assets (1)		513		470
Deferred income (current)		11,223		11,165
Deferred income (noncurrent)		3,382		3,445

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