v3.19.1
Revenue Recognition (Tables)
 3 Months Ended
Mar. 31, 2019
Revenue Recognition  
Schedule of disaggregation of revenue

 

Revenue by Major Products/Service Offerings

 

(Dollars in millions)

 

Cloud &

 

Global

 

Global

 

 

 

 

 

 

 

 

 

For the three months

 

Cognitive

 

Business

 

Technology

 

 

 

Global

 

 

 

Total

 

ended March 31, 2019:

 

Software

 

Services

 

Services

 

Systems

 

Financing

 

Other

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cognitive Applications

 

$
1,308

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

$
1,308

 

Cloud & Data Platforms

 
1,917

 

—

 

—

 

—

 

—

 

—

 
1,917

 

Transaction Processing Platforms

 
1,812

 

—

 

—

 

—

 

—

 

—

 
1,812

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consulting

 

—

 
1,964

 

—

 

—

 

—

 

—

 
1,964

 

Application Management

 

—

 
1,908

 

—

 

—

 

—

 

—

 
1,908

 

Global Process Services

 

—

 
247

 

—

 

—

 

—

 

—

 
247

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Infrastructure & Cloud Services

 

—

 

—

 
5,209

 

—

 

—

 

—

 
5,209

 

Technology Support Services

 

—

 

—

 
1,665

 

—

 

—

 

—

 
1,665

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Systems Hardware

 

—

 

—

 

—

 
914

 

—

 

—

 
914

 

Operating Systems Software

 

—

 

—

 

—

 
414

 

—

 

—

 
414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Financing*

 

—

 

—

 

—

 

—

 
406

 

—

 
406

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Revenue

 

—

 

—

 

—

 

—

 

—

 
417

 
417

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
5,037

 

$
4,119

 

$
6,875

 

$
1,328

 

$
406

 

$
417

 

$
18,182

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Revenue by Geography

(Dollars in millions)

 

 

 

For the three months

 

Total

 

ended March 31, 2019:

 

Revenue

 

 

 

 

 

Americas

 

$
8,493

 

Europe/Middle East/Africa

 
5,727

 

Asia Pacific

 
3,961

 

 

 

 

 

Total

 

$
18,182

 

 

 

 

 

 

 

Revenue by Major Products/Service Offerings

 

(Dollars in millions)

 

Cloud &

 

Global

 

Global

 

 

 

 

 

 

 

 

 

For the three months

 

Cognitive

 

Business

 

Technology

 

 

 

Global

 

 

 

Total

 

ended March 31, 2018:

 

Software*

 

Services*

 

Services*

 

Systems

 

Financing

 

Other*

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cognitive Applications

 

$
1,286

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

$
1,286

 

Cloud & Data Platforms

 
1,950

 

—

 

—

 

—

 

—

 

—

 
1,950

 

Transaction Processing Platforms

 
1,880

 

—

 

—

 

—

 

—

 

—

 
1,880

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consulting

 

—

 
1,867

 

—

 

—

 

—

 

—

 
1,867

 

Application Management

 

—

 
2,002

 

—

 

—

 

—

 

—

 
2,002

 

Global Process Services

 

—

 
246

 

—

 

—

 

—

 

—

 
246

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Infrastructure & Cloud Services

 

—

 

—

 
5,639

 

—

 

—

 

—

 
5,639

 

Technology Support Services

 

—

 

—

 
1,782

 

—

 

—

 

—

 
1,782

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Systems Hardware

 

—

 

—

 

—

 
1,093

 

—

 

—

 
1,093

 

Operating Systems Software

 

—

 

—

 

—

 
407

 

—

 

—

 
407

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Financing**

 

—

 

—

 

—

 

—

 
405

 

—

 
405

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Revenue

 

—

 

—

 

—

 

—

 

—

 
515

 
515

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
5,116

 

$
4,115

 

$
7,421

 

$
1,500

 

$
405

 

$
515

 

$
19,072

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*   Recast to conform to 2019 presentation.

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

Revenue by Geography

 

(Dollars in millions)

 

 

 

For the three months

 

Total

 

ended March 31, 2018:

 

Revenue

 

 

 

 

 

Americas

 

$
8,707

 

Europe/Middle East/Africa

 
6,176

 

Asia Pacific

 
4,188

 

 

 

 

 

Total

 

$
19,072

 

 

 

 

 

 

 

 

Schedule of reconciliation of contract balances

 

 

 

At March 31,

 

At December 31,

 

(Dollars in millions)

 

2019

 

2018

 

Notes and accounts receivable—trade (net of allowances of $316 and $309 at March 31, 2019 and December 31, 2018, respectively)

 

$
6,987

 

$
7,432

 

Contract assets (1)

 
528

 
470

 

Deferred income (current)

 
12,134

 
11,165

 

Deferred income (noncurrent)

 
3,481

 
3,445

 

 

 

(1) Included within prepaid expenses and other current assets in the Consolidated Statement of Financial Position.