Separation of Kyndryl (Tables)

9 Months Ended

Sep. 30, 2022

Separation of Kyndryl

Schedule of discontinued operations

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in millions)	2022		2021*		2022		2021*
Revenue	$	1	$	4,367	$	7	$	13,437
Cost of sales		2		3,303		19		10,043
Selling, general and administrative expense		(24)		554		42		1,527
RD&E and Other (income) and expense		0		4		(70)		59
Income from discontinued operations before income taxes	$	24	$	506	$	16	$	1,807
Provision for income taxes		6		413		1		648
Income from discontinued operations, net of tax	$	18	$	93	$	16	$	1,160

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

	Nine Months Ended September 30,
(Dollars in millions)	2022		2021
Net cash provided by/(used in) operating activities	$	—	$	2,167	*
Net cash provided by/(used in) investing activities	$	48	$	(363)

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