Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2022

Revenue Recognition

Schedule of disaggregation of revenue

Revenue by Major Products/Service Offerings

(Dollars in millions)
For the three months ended March 31:	2022		2021*
Hybrid Platform & Solutions	$	4,080	$	3,800
Transaction Processing		1,692		1,338
Total Software	$	5,772	$	5,138
Business Transformation		2,255		1,953
Application Operations		1,619		1,474
Technology Consulting		955		835
Total Consulting	$	4,829	$	4,262
Hybrid Infrastructure		1,700		1,782
Infrastructure Support		1,519		1,512
Total Infrastructure	$	3,219	$	3,293
Financing**		154		208
Other		224		284
Total revenue	$	14,197	$	13,187

* 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

Hybrid Cloud Revenue by Segment

(Dollars in millions)
For the three months ended March 31:	2022		2021*
Software	$	2,130	$	1,744
Consulting		2,135		1,722
Infrastructure		672		837
Other		72		87
Total	$	5,009	$	4,390

* Recast to reflect segment changes.

Schedule of disaggregation of revenue by geography

Revenue by Geography

(Dollars in millions)
For the three months ended March 31:	2022		2021
Americas	$	7,056	$	6,477
Europe/Middle East/Africa		4,231		3,928
Asia Pacific		2,910		2,781
Total	$	14,197	$	13,187

Schedule of reconciliation of contract balances

	At March 31,		At December 31,
(Dollars in millions)	2022		2021
Notes and accounts receivable — trade (net of allowances of $225 in 2022 and $218 in 2021)	$	5,963	$	6,754
Contract assets*		517		471
Deferred income (current)		13,526		12,518
Deferred income (noncurrent)		3,423		3,577

* 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, 2022		Additions / (Releases)		Write-offs		Foreign currency and other		March 31, 2022
$	218	$	23	$	(7)	$	(9)	$	225

January 1, 2021		Additions / (Releases)		Write-offs		Foreign currency and other		December 31, 2021
$	260	$	(15)	$	(28)	$	1	$	218