Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2022

Revenue Recognition

Schedule of disaggregation of revenue

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2022		2021*		2022		2021*
Hybrid Platform & Solutions	$	4,390	$	4,208	$	8,470	$	8,008
Transaction Processing		1,776		1,587		3,468		2,925
Total Software	$	6,166	$	5,795	$	11,938	$	10,933
Business Transformation		2,227		2,049		4,482		4,002
Application Operations		1,653		1,514		3,272		2,989
Technology Consulting		928		814		1,884		1,649
Total Consulting	$	4,809	$	4,378	$	9,637	$	8,641
Hybrid Infrastructure		2,760		2,059		4,461		3,841
Infrastructure Support		1,474		1,501		2,993		3,012
Total Infrastructure	$	4,235	$	3,560	$	7,453	$	6,853
Financing**		146		209		300		417
Other		180		277		404		561
Total revenue	$	15,535	$	14,218	$	29,732	$	27,405

* 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

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2022		2021*		2022		2021*
Software	$	2,288	$	2,015	$	4,418	$	3,760
Consulting		2,286		1,901		4,421		3,623
Infrastructure		1,220		981		1,892		1,818
Other		69		82		141		169
Total	$	5,863	$	4,979	$	10,872	$	9,369

* Recast to reflect segment changes.

Schedule of disaggregation of revenue by geography

Revenue by Geography

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2022		2021		2022		2021
Americas	$	8,142	$	7,122	$	15,198	$	13,599
Europe/Middle East/Africa		4,526		4,314		8,757		8,242
Asia Pacific		2,868		2,782		5,778		5,563
Total	$	15,535	$	14,218	$	29,732	$	27,405

Schedule of reconciliation of contract balances

	At June 30,		At December 31,
(Dollars in millions)	2022		2021
Notes and accounts receivable — trade (net of allowances of $213 in 2022 and $218 in 2021)	$	5,867	$	6,754
Contract assets*		531		471
Deferred income (current)		12,522		12,518
Deferred income (noncurrent)		3,069		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		June 30, 2022
$	218	$	30	$	(22)	$	(13)	$	213

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