| Schedule of disaggregation of revenue |
| | | | | | | | | | | | | ($ in millions) | | | | | | | | | | | For the year ended December 31: | | 2020 | | | 2019 | | | 2018 | | Cloud & Data Platforms | | $ | 11,481 | ** | | $ | 9,499 | | | $ | 8,603 | | Cognitive Applications | | | 5,290 | | | | 5,456 | * | | | 5,280 | * | Transaction Processing Platforms | | | 6,606 | | | | 7,936 | | | | 7,974 | | Total Cloud & Cognitive Software | | $ | 23,376 | | | $ | 22,891 | * | | $ | 21,857 | * | Consulting | | $ | 8,083 | | | $ | 8,157 | * | | $ | 7,906 | * | Application Management | | | 7,133 | | | | 7,646 | | | | 7,852 | | Global Process Services | | | 945 | | | | 995 | | | | 1,037 | | Total Global Business Services | | $ | 16,162 | | | $ | 16,798 | * | | $ | 16,795 | * | Infrastructure & Cloud Services | | $ | 19,669 | | | $ | 20,736 | | | $ | 22,185 | | Technology Support Services | | | 6,144 | | | | 6,625 | | | | 6,961 | | Total Global Technology Services | | $ | 25,812 | | | $ | 27,361 | | | $ | 29,146 | | Systems Hardware | | $ | 5,481 | | | $ | 5,918 | | | $ | 6,363 | | Operating Systems Software | | | 1,497 | | | | 1,686 | | | | 1,671 | | Total Systems | | $ | 6,978 | | | $ | 7,604 | | | $ | 8,034 | | Global Financing È | | $ | 1,123 | | | $ | 1,400 | | | $ | 1,590 | | Other | | $ | 169 | | | $ | 1,092 | * | | $ | 2,169 | * | Total Revenue | | $ | 73,620 | | | $ | 77,147 | | | $ | 79,591 | | | | | | | | | | | | | | |
* Recast to conform to 2020 presentation. ** Red Hat was acquired on July 9, 2019. Results in 2020 include a full year of Red Hat revenue. È Contains lease and loan/working capital financing arrangements which are not subject to the guidance on revenue from contracts with customers.
|
| Schedule of disaggregation of revenue by geography |
| | | | | | | | | | | | | ($ in millions) | | | | | | | | | | | For the year ended December 31: | | 2020 | | | 2019 | | | 2018 | | Americas | | $ | 34,114 | | | $ | 36,274 | | | $ | 36,994 | | Europe/Middle East/Africa | | | 23,644 | | | | 24,443 | | | | 25,491 | | Asia Pacific | | | 15,863 | | | | 16,430 | | | | 17,106 | | Total | | $ | 73,620 | | | $ | 77,147 | | | $ | 79,591 | | | | | | | | | | | | | | |
|
| Schedule of reconciliation of contract balances |
| | | | | | | ($ in millions) | | | | | At December 31: | | 2020 | | 2019 | Notes and accounts receivable—trade (net of allowances of $351 in 2020 and $299 in 2019) | | $ | 7,132 | | $ | 7,870 | Contract assets* | | | 497 | | | 492 | Deferred income (current) | | | 12,833 | | | 12,026 | Deferred income (noncurrent) | | | 4,301 | | | 3,851 | | | | | | | |
* 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, 2020 * | | Additions/(Releases) | | Write-offs | | Other | ** | December 31, 2020 | $ | 316 | | $ | 76 | | $ | (46) | | $ | 5 | | $ | 351 | | January 1, 2019 | | Additions/(Releases) | | Write-offs | | Other | ** | December 31, 2019 | $ | 309 | | $ | 98 | | $ | (113) | | $ | 5 | | $ | 299 |
* | Opening balance does not equal the allowance at December 31, 2019 due to the adoption of the guidance for current expected credit losses. Refer to note B, “Accounting Changes,” for additional information. |
** Primarily represents translation adjustments.
|
| Schedule of deferred contract costs |
| | | | | | | ($ in millions) | | | | | | At December 31: | | 2020 | | 2019 | Capitalized costs to obtain a contract | | $ | 842 | | $ | 609 | Deferred costs to fulfill a contract | | | | | | | Deferred setup costs | | | 1,859 | | | 1,939 | Other deferred fulfillment costs | | | 1,855 | | | 1,820 | Total deferred costs* | | $ | 4,556 | | $ | 4,368 | | | | | | | |
* Of the total deferred costs, $2,107 million was current and $2,449 million was noncurrent at December 31, 2020 and $1,896 million was current and $2,472 million was noncurrent at December 31, 2019.
|