Revenue Recognition (Tables)
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12 Months Ended |
Dec. 31, 2021 |
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| Revenue Recognition |
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| Schedule of disaggregation of revenue |
Revenue by Major Products/Service Offerings | | | | | | | | | | | | | ($ in millions) | | | | | | | | | | | For the year ended December 31: | | 2021 | | | 2020 | * | | 2019 | * | Hybrid Platform & Solutions | | $ | 17,751 | | | $ | 16,321 | | | $ | 14,472 | | Transaction Processing | | | 6,390 | | | | 6,606 | | | | 7,936 | | Total Software | | $ | 24,141 | | | $ | 22,927 | | | $ | 22,408 | | Business Transformation | | $ | 8,284 | | | $ | 7,193 | | | $ | 7,569 | | Technology Consulting | | | 3,466 | | | | 3,133 | | | | 2,821 | | Application Operations | | | 6,095 | | | | 5,931 | | | | 6,549 | | Total Consulting | | $ | 17,844 | | | $ | 16,257 | | | $ | 16,939 | | Hybrid Infrastructure | | $ | 8,167 | | | $ | 8,415 | | | $ | 9,176 | | Infrastructure Support | | | 6,021 | | | | 6,118 | | | | 6,599 | | Total Infrastructure | | $ | 14,188 | | | $ | 14,533 | | | $ | 15,774 | | Financing** | | $ | 774 | | | $ | 975 | | | $ | 1,215 | | Other | | $ | 404 | | | $ | 488 | | | $ | 1,378 | | Total Revenue | | $ | 57,350 | | | $ | 55,179 | | | $ | 57,714 | | | | | | | | | | | | | | |
* | Recast to reflect segment changes. |
** | Contains lease and loan/working capital financing arrangements which are not subject to the guidance on revenue from contracts with customers. |
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| Schedule of hybrid cloud revenue by segment |
| | | | | | | | | | | | ($ in millions) | | | | | | | | | | For the year ended December 31: | | 2021 | | | 2020 | | | 2019 | Software | | $ | 8,713 | | | $ | 6,907 | | | $ | 4,099 | Consulting | | | 7,852 | | | | 5,861 | | | | 5,274 | Infrastructure | | | 3,645 | | | | 4,039 | | | | 4,183 | Other—divested businesses | | | — | | | | 32 | | | | 279 | Total | | $ | 20,210 | | | $ | 16,838 | | | $ | 13,834 | | | | | | | | | | | | |
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| Schedule of disaggregation of revenue by geography |
| | | | | | | | | | | | ($ in millions) | | | | | | | | | | For the year ended December 31: | | 2021 | | | 2020 | | | 2019 | Americas | | $ | 28,299 | | | $ | 27,119 | | | $ | 28,704 | Europe/Middle East/Africa | | | 17,447 | | | | 16,767 | | | | 17,282 | Asia Pacific | | | 11,604 | | | | 11,293 | | | | 11,728 | Total | | $ | 57,350 | | | $ | 55,179 | | | $ | 57,714 | | | | | | | | | | | | |
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| Schedule of reconciliation of contract balances |
| | | | | | | ($ in millions) | | | | | At December 31: | | 2021 | | 2020 | Notes and accounts receivable—trade (net of allowances of $218 in 2021 and $260 in 2020) | | $ | 6,754 | | $ | 5,790 | Contract assets* | | | 471 | | | 425 | Deferred income (current) | | | 12,518 | | | 11,980 | Deferred income (noncurrent) | | | 3,577 | | | 3,758 | | | | | | | |
* Included within prepaid expenses and other current assets in the Consolidated Balance Sheet.
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| Schedule of notes and accounts receivable - trade allowance for credit losses |
| | | | | | | | | | | | | | | ($ in millions) | | January 1, 2021 | | Additions/(Releases) | | Write-offs | | Other | * | December 31, 2021 | | $ | 260 | | $ | (15) | | $ | (28) | | $ | 1 | | $ | 218 | | | | January 1, 2020 | | Additions/(Releases) | | Write-offs | | Other | * | December 31, 2020 | | $ | 235 | | $ | 63 | | $ | (39) | | $ | 1 | | $ | 260 | |
* Primarily represents translation adjustments.
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| Schedule of deferred contract costs |
| | | | | | | ($ in millions) | | | | | | At December 31: | | 2021 | | 2020 | Capitalized costs to obtain a contract | | $ | 476 | | $ | 572 | Deferred costs to fulfill a contract | | | | | | | Deferred setup costs | | | 546 | | | 591 | Other deferred fulfillment costs | | | 1,000 | | | 1,004 | Total deferred costs* | | $ | 2,022 | | $ | 2,168 | | | | | | | |
* Of the total deferred costs, $1,097 million was current and $924 million was noncurrent at December 31, 2021 and $1,018 million was current and $1,150 million was noncurrent at December 31, 2020.
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