Revenue Recognition (Tables)
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3 Months Ended |
Mar. 31, 2022 |
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| Revenue Recognition |
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| Schedule of disaggregation of revenue |
Revenue by Major Products/Service Offerings | | | | | | | (Dollars in millions) | | | For the three months ended March 31: | | 2022 | | 2021* | Hybrid Platform & Solutions | | $ | 4,080 | | $ | 3,800 | Transaction Processing | | | 1,692 | | | 1,338 | Total Software | | $ | 5,772 | | $ | 5,138 | Business Transformation | | | 2,255 | | | 1,953 | Application Operations | | | 1,619 | | | 1,474 | Technology Consulting | | | 955 | | | 835 | Total Consulting | | $ | 4,829 | | $ | 4,262 | Hybrid Infrastructure | | | 1,700 | | | 1,782 | Infrastructure Support | | | 1,519 | | | 1,512 | Total Infrastructure | | $ | 3,219 | | $ | 3,293 | Financing** | | | 154 | | | 208 | Other | | | 224 | | | 284 | Total revenue | | $ | 14,197 | | $ | 13,187 |
* | 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 |
Hybrid Cloud Revenue by Segment | | | | | | | (Dollars in millions) | | | For the three months ended March 31: | | 2022 | | 2021* | Software | | $ | 2,130 | | $ | 1,744 | Consulting | | | 2,135 | | | 1,722 | Infrastructure | | | 672 | | | 837 | Other | | | 72 | | | 87 | Total | | $ | 5,009 | | $ | 4,390 |
* | Recast to reflect segment changes. |
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| Schedule of disaggregation of revenue by geography |
Revenue by Geography | | | | | | | (Dollars in millions) | | | For the three months ended March 31: | | 2022 | | 2021 | Americas | | $ | 7,056 | | $ | 6,477 | Europe/Middle East/Africa | | | 4,231 | | | 3,928 | Asia Pacific | | | 2,910 | | | 2,781 | Total | | $ | 14,197 | | $ | 13,187 |
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| Schedule of reconciliation of contract balances |
| | | | | | | | | At March 31, | | At December 31, | (Dollars in millions) | | 2022 | | 2021 | Notes and accounts receivable — trade (net of allowances of $225 in 2022 and $218 in 2021) | | $ | 5,963 | | $ | 6,754 | Contract assets* | | | 517 | | | 471 | Deferred income (current) | | | 13,526 | | | 12,518 | Deferred income (noncurrent) | | | 3,423 | | | 3,577 |
* | 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 |
| | | | | | | | | | | | | | (Dollars in millions) | | | | | | | | | | | | | January 1, 2022 | | Additions / (Releases) | | Write-offs | | Foreign currency and other | | March 31, 2022 | $ | 218 | | $ | 23 | | $ | (7) | | $ | (9) | | $ | 225 |
| | | | | | | | | | | | | | January 1, 2021 | | Additions / (Releases) | | Write-offs | | Foreign currency and other | | December 31, 2021 | $ | 260 | | $ | (15) | | $ | (28) | | $ | 1 | | $ | 218 |
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