Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2021

Revenue Recognition

Schedule of disaggregation of revenue

Revenue by Major Products/Service Offerings

($ in millions)
For the year ended December 31:	2021		2020		*	2019		*
Hybrid Platform & Solutions	$	17,751	$	16,321		$	14,472
Transaction Processing		6,390		6,606			7,936
Total Software	$	24,141	$	22,927		$	22,408
Business Transformation	$	8,284	$	7,193		$	7,569
Technology Consulting		3,466		3,133			2,821
Application Operations		6,095		5,931			6,549
Total Consulting	$	17,844	$	16,257		$	16,939
Hybrid Infrastructure	$	8,167	$	8,415		$	9,176
Infrastructure Support		6,021		6,118			6,599
Total Infrastructure	$	14,188	$	14,533		$	15,774
Financing**	$	774	$	975		$	1,215
Other	$	404	$	488		$	1,378
Total Revenue	$	57,350	$	55,179		$	57,714

* Recast to reflect segment changes.

** Contains lease and loan/working capital financing arrangements which are not subject to the guidance on revenue from contracts with customers.

Schedule of hybrid cloud revenue by segment

($ in millions)
For the year ended December 31:	2021		2020		2019
Software	$	8,713	$	6,907	$	4,099
Consulting		7,852		5,861		5,274
Infrastructure		3,645		4,039		4,183
Other—divested businesses		—		32		279
Total	$	20,210	$	16,838	$	13,834

Schedule of disaggregation of revenue by geography

($ in millions)
For the year ended December 31:	2021		2020		2019
Americas	$	28,299	$	27,119	$	28,704
Europe/Middle East/Africa		17,447		16,767		17,282
Asia Pacific		11,604		11,293		11,728
Total	$	57,350	$	55,179	$	57,714

Schedule of reconciliation of contract balances

($ in millions)
At December 31:	2021		2020
Notes and accounts receivable—trade (net of allowances of $218 in 2021 and $260 in 2020)	$	6,754	$	5,790
Contract assets*		471		425
Deferred income (current)		12,518		11,980
Deferred income (noncurrent)		3,577		3,758

* Included within prepaid expenses and other current assets in the Consolidated Balance Sheet.

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

($ in millions)
January 1, 2021		Additions/(Releases)		Write-offs		Other		*	December 31, 2021
$	260	$	(15)	$	(28)	$	1		$	218
January 1, 2020		Additions/(Releases)		Write-offs		Other		*	December 31, 2020
$	235	$	63	$	(39)	$	1		$	260

* Primarily represents translation adjustments.

Schedule of deferred contract costs

($ in millions)
At December 31:	2021		2020
Capitalized costs to obtain a contract	$	476	$	572
Deferred costs to fulfill a contract
Deferred setup costs		546		591
Other deferred fulfillment costs		1,000		1,004
Total deferred costs*	$	2,022	$	2,168

* Of the total deferred costs, $1,097 million was current and $924 million was noncurrent at December 31, 2021 and $1,018 million was current and $1,150 million was noncurrent at December 31, 2020.