Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2020

Revenue Recognition

Schedule of disaggregation of revenue

	Three Months Ended June 30,					Six Months Ended June 30,
(Dollars in millions)	2020		2019			2020		2019
Cloud & Data Platforms	$	2,797	$	2,173		$	5,333	$	4,090
Cognitive Applications		1,246		1,372	*		2,428		2,609	*
Transaction Processing Platforms		1,706		2,018			3,226		3,830
Total Cloud & Cognitive Software	$	5,748	$	5,563	*	$	10,987	$	10,530	*
Consulting		1,936		2,020	*		4,007		4,021	*
Application Management		1,734		1,919			3,573		3,827
Global Process Services		221		258			447		505
Total Global Business Services	$	3,890	$	4,197	*	$	8,027	$	8,353	*
Infrastructure & Cloud Services		4,813		5,174			9,729		10,383
Technology Support Services		1,503		1,663			3,054		3,328
Total Global Technology Services	$	6,316	$	6,837		$	12,783	$	13,711
Systems Hardware		1,488		1,328			2,484		2,241
Operating Systems Software		365		425			736		840
Total Systems	$	1,852	$	1,753		$	3,220	$	3,081
Global Financing**		265		351			564		757
Other		50		460	*		113		911	*
Total revenue	$	18,123	$	19,161		$	35,694	$	37,342

*  Recast to conform to current period presentation. Refer to note 4, “Segments,” for additional information.

** Contains lease and loan/working capital 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 June 30,				Six Months Ended June 30,
(Dollars in millions)	2020		2019		2020		2019
Americas	$	8,450	$	8,806	$	16,617	$	17,299
Europe/Middle East/Africa		5,695		6,149		11,212		11,876
Asia Pacific		3,977		4,205		7,865		8,167
Total	$	18,123	$	19,161	$	35,694	$	37,342

Schedule of reconciliation of contract balances

	At June 30,		At December 31,
(Dollars in millions)	2020		2019
Notes and accounts receivable — trade (net of allowances of $369 and $299 at June 30, 2020 and December 31, 2019, respectively)	$	6,543	$	7,870
Contract assets (1)		505		492
Deferred income (current)		12,469		12,026
Deferred income (noncurrent)		3,787		3,851

(1) Included within prepaid expenses and other current assets in the Consolidated Balance Sheet.

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

(Dollars in millions)
January 1, 2020*		Additions / (Releases)		Write-offs		Other**		June 30, 2020
$	316	$	87	$	(26)	$	(8)	$	369

January 1, 2019		Additions / (Releases)		Write-offs		Other**		December 31, 2019
$	309	$	98	$	(113)	$	5	$	299

* Opening balance does not equal the allowance at December 31, 2019 due to the adoption of the guidance for current expected credit losses. Refer to note 2, “Accounting Changes,” for additional information.

** Primarily represents translation adjustments.