Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2020

Revenue Recognition

Schedule of disaggregation of revenue

	Three Months Ended September 30,					Nine Months Ended September 30,
(Dollars in millions)	2020		2019			2020		2019
Cloud & Data Platforms	$	2,775	$	2,308		$	8,108	$	6,398
Cognitive Applications		1,317		1,305	*		3,745		3,914	*
Transaction Processing Platforms		1,461		1,589			4,687		5,419
Total Cloud & Cognitive Software	$	5,553	$	5,201	*	$	16,540	$	15,731	*
Consulting		1,966		2,016	*		5,973		6,037	*
Application Management		1,758		1,897			5,332		5,724
Global Process Services		240		247			687		752
Total Global Business Services	$	3,965	$	4,160	*	$	11,992	$	12,513	*
Infrastructure & Cloud Services		4,933		5,071			14,663		15,454
Technology Support Services		1,528		1,629			4,582		4,958
Total Global Technology Services	$	6,462	$	6,700		$	19,245	$	20,412
Systems Hardware		919		1,117			3,404		3,358
Operating Systems Software		338		364			1,074		1,204
Total Systems	$	1,257	$	1,481		$	4,477	$	4,562
Global Financing**		273		343			837		1,100
Other		50		142	*		163		1,053	*
Total revenue	$	17,560	$	18,028		$	53,253	$	55,370

*  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 September 30,				Nine Months Ended September 30,
(Dollars in millions)	2020		2019		2020		2019
Americas	$	8,139	$	8,514	$	24,755	$	25,813
Europe/Middle East/Africa		5,564		5,477		16,775		17,354
Asia Pacific		3,857		4,036		11,723		12,203
Total	$	17,560	$	18,028	$	53,253	$	55,370

Schedule of reconciliation of contract balances

	At September 30,		At December 31,
(Dollars in millions)	2020		2019
Notes and accounts receivable — trade (net of allowances of $354 in 2020 and $299 in 2019)	$	6,099	$	7,870
Contract assets (1)		528		492
Deferred income (current)		11,681		12,026
Deferred income (noncurrent)		3,820		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**		September 30, 2020
$	316	$	79	$	(39)	$	(2)	$	354

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.

The contract assets allowance for credit losses was not material in any of the periods presented.