Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2022

Revenue Recognition

Schedule of disaggregation of revenue

Revenue by Major Products/Service Offerings

($ in millions)
For the year ended December 31:	2022		2021			2020
Hybrid Platform & Solutions	$	17,866	$	17,036	*	$	15,518	*
Transaction Processing		7,171		6,390			6,606
Total Software	$	25,037	$	23,426	*	$	22,124	*
Business Transformation	$	8,834	$	8,284		$	7,193
Application Operations		6,508		6,095			5,931
Technology Consulting		3,765		3,466			3,133
Total Consulting	$	19,107	$	17,844		$	16,257
Hybrid Infrastructure	$	9,451	$	8,167		$	8,415
Infrastructure Support		5,837		6,021			6,118
Total Infrastructure	$	15,288	$	14,188		$	14,533
Financing**	$	645	$	774		$	975
Other	$	453	$	1,119	*	$	1,291	*
Total Revenue	$	60,530	$	57,350		$	55,179

* Recast to reflect segment change.

** Contains lease and loan 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:	2022		2021			2020
Software	$	9,321	$	8,386	*	$	6,517	*
Consulting		9,019		7,852			5,861
Infrastructure		3,895		3,645			4,039
Other		142		328	*		422	*
Total	$	22,377	$	20,210		$	16,838

* Recast to reflect segment change.

Schedule of disaggregation of revenue by geography

($ in millions)
For the year ended December 31:	2022		2021		2020
Americas	$	31,057	$	28,299	$	27,119
Europe/Middle East/Africa		17,950		17,447		16,767
Asia Pacific		11,522		11,604		11,293
Total	$	60,530	$	57,350	$	55,179

Schedule of reconciliation of contract balances

($ in millions)
At December 31:	2022		2021
Notes and accounts receivable — trade (net of allowances of $233 in 2022 and $218 in 2021)	$	6,541	$	6,754
Contract assets*		464		471
Deferred income (current)		12,032		12,518
Deferred income (noncurrent)		3,499		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

($ in millions)
January 1, 2022		Additions/(Releases)		Write-offs		Foreign currency and Other		December 31, 2022
$	218	$	59	$	(31)	$	(14)	$	233
January 1, 2021		Additions/(Releases)		Write-offs		Foreign currency and Other		December 31, 2021
$	260	$	(15)	$	(28)	$	1	$	218

Schedule of deferred contract costs

($ in millions)
At December 31:	2022		2021
Capitalized costs to obtain a contract	$	563	$	476
Deferred costs to fulfill a contract
Deferred setup costs		456		546
Other deferred fulfillment costs		814		1,000
Total deferred costs*	$	1,833	$	2,022

* Of the total deferred costs, $967 million was current and $866 million was noncurrent at December 31, 2022 and $1,097 million was current and $924 million was noncurrent at December 31, 2021.