Separation of Kyndryl (Tables)

12 Months Ended

Dec. 31, 2021

Separation of Kyndryl

Schedule of discontinued operations

($ in millions)
For the year ended December 31:	2021		*È	2020		*	2019		*
Revenue	$	14,994		$	18,441		$	19,433
Cost of sales		11,270			13,651			14,478
Selling, general and administrative expense		1,865			1,638			1,726
Workforce rebalancing charges		35			887			158
RD&E and Other (income) and expense		80			124			116
Income from discontinued operations before income taxes	$	1,744		$	2,142		$	2,954
Provision for income taxes		714	**		484			670
Income from discontinued operations, net of taxÈÈ	$	1,030		$	1,658		$	2,285

* Excludes intercompany transactions between IBM and Kyndryl and general corporate overhead costs transferred to Kyndryl as discussed above.

** Includes tax charges related to the Kyndryl separation.

^È Represents 10 months of Kyndryl operations in 2021, versus a full year of Kyndryl operations in 2020 and 2019.

^ÈÈ Includes $(1) million, $89 million and $(4) million in 2021, 2020 and 2019, respectively, related to discontinued operations of Microelectronics, divested in 2015.

($ in millions)
At December 31:	2020
Assets
Current assets
Notes and accounts receivable (net of allowances of $94)	$	1,361
Deferred costs		1,089
Prepaid expenses and other current assets		168
Total current assets of discontinued operations		2,618
Plant, rental machines and other property, net		3,835
Operating right-of-use assets, net		1,120
Deferred costs		1,300
Deferred taxes		837
Goodwill*		5,851
Other assets		203
Total non-current assets of discontinued operations		13,147
Total assets of discontinued operations	$	15,764
Liabilities
Current liabilities
Accounts payable	$	875
Compensation and benefits		384
Workforce reductions		449
Deferred income		854
Operating lease liabilities		322
Other accrued expenses and liabilities		936
Total current liabilities of discontinued operations		3,820
Long-term debt		138
Retirement and nonpension postretirement benefit obligations		1,063
Deferred income		543
Operating lease liabilities		854
Other liabilities		718
Total non-current liabilities of discontinued operations		3,317
Total liabilities of discontinued operations	$	7,136

* Goodwill allocated to discontinued operations represents the amount of goodwill attributable to Kyndryl which was determined on a relative fair value basis.

($ in millions)
For the year ended December 31:	2021		*	2020		2019
Net cash provided by/(used in) operating activities	$	1,612		$	4,403	$	4,535
Net cash provided by/(used in) investing activities		(380)			(935)		(1,113)

* Represents 10 months of Kyndryl operations in 2021, versus a full year of Kyndryl operations in 2020 and 2019.