| Schedule of discontinued operations |
| | | | | | | | | | | ($ in millions) | | | | | | | | | | | For the year ended December 31: | | 2021 | *È | 2020 | * | 2019 | * | Revenue | | $ | 14,994 | | $ | 18,441 | | $ | 19,433 | | Cost of sales | | | 11,270 | | | 13,651 | | | 14,478 | | Selling, general and administrative expense | | | 1,865 | | | 1,638 | | | 1,726 | | Workforce rebalancing charges | | | 35 | | | 887 | | | 158 | | RD&E and Other (income) and expense | | | 80 | | | 124 | | | 116 | | Income from discontinued operations before income taxes | | $ | 1,744 | | $ | 2,142 | | $ | 2,954 | | Provision for income taxes | | | 714 | ** | | 484 | | | 670 | | Income from discontinued operations, net of taxÈÈ | | $ | 1,030 | | $ | 1,658 | | $ | 2,285 | | | | | | | | | | | | |
* | Excludes intercompany transactions between IBM and Kyndryl and general corporate overhead costs transferred to Kyndryl as discussed above. |
** | Includes tax charges related to the Kyndryl separation. |
È | Represents 10 months of Kyndryl operations in 2021, versus a full year of Kyndryl operations in 2020 and 2019. |
ÈÈ | Includes $(1) million, $89 million and $(4) million in 2021, 2020 and 2019, respectively, related to discontinued operations of Microelectronics, divested in 2015. |
| | | | ($ in millions) | | | At December 31: | | 2020 | Assets | | | | Current assets | | | | Notes and accounts receivable (net of allowances of $94) | | $ | 1,361 | Deferred costs | | | 1,089 | Prepaid expenses and other current assets | | | 168 | Total current assets of discontinued operations | | | 2,618 | Plant, rental machines and other property, net | | | 3,835 | Operating right-of-use assets, net | | | 1,120 | Deferred costs | | | 1,300 | Deferred taxes | | | 837 | Goodwill* | | | 5,851 | Other assets | | | 203 | Total non-current assets of discontinued operations | | | 13,147 | Total assets of discontinued operations | | $ | 15,764 | Liabilities | | | | Current liabilities | | | | Accounts payable | | $ | 875 | Compensation and benefits | | | 384 | Workforce reductions | | | 449 | Deferred income | | | 854 | Operating lease liabilities | | | 322 | Other accrued expenses and liabilities | | | 936 | Total current liabilities of discontinued operations | | | 3,820 | Long-term debt | | | 138 | Retirement and nonpension postretirement benefit obligations | | | 1,063 | Deferred income | | | 543 | Operating lease liabilities | | | 854 | Other liabilities | | | 718 | Total non-current liabilities of discontinued operations | | | 3,317 | Total liabilities of discontinued operations | | $ | 7,136 | | | | |
* | Goodwill allocated to discontinued operations represents the amount of goodwill attributable to Kyndryl which was determined on a relative fair value basis. |
| | | | | | | | | | ($ in millions) | | | | | | | For the year ended December 31: | | 2021 | * | 2020 | | 2019 | Net cash provided by/(used in) operating activities | | $ | 1,612 | | $ | 4,403 | | $ | 4,535 | Net cash provided by/(used in) investing activities | | | (380) | | | (935) | | | (1,113) | | | | | | | | | | |
* Represents 10 months of Kyndryl operations in 2021, versus a full year of Kyndryl operations in 2020 and 2019.
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