Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2021

Revenue Recognition

Schedule of disaggregation of revenue

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2021		2020		2021		2020
Cloud & Data Platforms	$	3,120	$	2,797	$	5,986	$	5,333
Cognitive Applications		1,391		1,246		2,624		2,428
Transaction Processing Platforms		1,587		1,706		2,925		3,226
Total Cloud & Cognitive Software	$	6,098	$	5,748	$	11,534	$	10,987
Consulting		2,236		1,936		4,425		4,007
Application Management		1,821		1,734		3,591		3,573
Global Process Services		284		221		559		447
Total Global Business Services	$	4,341	$	3,890	$	8,575	$	8,027
Infrastructure & Cloud Services		4,836		4,813		9,689		9,729
Technology Support Services		1,506		1,503		3,023		3,054
Total Global Technology Services	$	6,342	$	6,316	$	12,712	$	12,783
Systems Hardware		1,384		1,488		2,498		2,484
Operating Systems Software		333		365		646		736
Total Systems	$	1,717	$	1,852	$	3,144	$	3,220
Global Financing*		242		265		482		564
Other		5		50		28		113
Total revenue	$	18,745	$	18,123	$	36,474	$	35,694

* 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)	2021		2020		2021		2020
Americas	$	8,820	$	8,450	$	16,999	$	16,617
Europe/Middle East/Africa		6,038		5,695		11,679		11,212
Asia Pacific		3,887		3,977		7,797		7,865
Total	$	18,745	$	18,123	$	36,474	$	35,694

Schedule of reconciliation of contract balances

	At June 30,		At December 31,
(Dollars in millions)	2021		2020
Notes and accounts receivable–trade (net of allowances of $300 in 2021 and $351 in 2020)	$	6,827	$	7,132
Contract assets*		547		497
Deferred income (current)		13,272		12,833
Deferred income (noncurrent)		4,113		4,301

* 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, 2021		Additions / (Releases)		Write-offs		Other*		June 30, 2021
$	351	$	(37)	$	(15)	$	1	$	300

January 1, 2020		Additions / (Releases)		Write-offs		Other*		December 31, 2020
$	316	$	76	$	(46)	$	5	$	351

* Primarily represents translation adjustments.