Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2021

Revenue Recognition

Schedule of disaggregation of revenue

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in millions)	2021		2020		2021		2020
Cloud & Data Platforms	$	3,046	$	2,775	$	9,032	$	8,108
Cognitive Applications		1,314		1,317		3,938		3,745
Transaction Processing Platforms		1,332		1,461		4,257		4,687
Total Cloud & Cognitive Software	$	5,692	$	5,553	$	17,227	$	16,540
Consulting		2,292		1,966		6,717		5,973
Application Management		1,847		1,758		5,439		5,332
Global Process Services		287		240		846		687
Total Global Business Services	$	4,427	$	3,965	$	13,002	$	11,992
Infrastructure & Cloud Services		4,681		4,933		14,370		14,663
Technology Support Services		1,473		1,528		4,496		4,582
Total Global Technology Services	$	6,154	$	6,462	$	18,866	$	19,245
Systems Hardware		796		919		3,294		3,404
Operating Systems Software		312		338		957		1,074
Total Systems	$	1,107	$	1,257	$	4,251	$	4,477
Global Financing*		220		273		702		837
Other		18		50		45		163
Total revenue	$	17,618	$	17,560	$	54,093	$	53,253

* 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)	2021		2020		2021		2020
Americas	$	8,217	$	8,139	$	25,216	$	24,755
Europe/Middle East/Africa		5,593		5,564		17,272		16,775
Asia Pacific		3,808		3,857		11,605		11,723
Total	$	17,618	$	17,560	$	54,093	$	53,253

Schedule of reconciliation of contract balances

	At September 30,		At December 31,
(Dollars in millions)	2021		2020
Notes and accounts receivable — trade (net of allowances of $277 in 2021 and $351 in 2020)	$	6,609	$	7,132
Contract assets*		566		497
Deferred income (current)		12,264		12,833
Deferred income (noncurrent)		3,965		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*		September 30, 2021
$	351	$	(44)	$	(30)	$	0	$	277

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

* Primarily represents translation adjustments.