Revenue Recognition (Tables)
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12 Months Ended |
Dec. 31, 2022 |
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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: | | 2022 | | | 2021 | | | 2020 | | Hybrid Platform & Solutions | | $ | 17,866 | | | $ | 17,036 | * | | $ | 15,518 | * | Transaction Processing | | | 7,171 | | | | 6,390 | | | | 6,606 | | Total Software | | $ | 25,037 | | | $ | 23,426 | * | | $ | 22,124 | * | Business Transformation | | $ | 8,834 | | | $ | 8,284 | | | $ | 7,193 | | Application Operations | | | 6,508 | | | | 6,095 | | | | 5,931 | | Technology Consulting | | | 3,765 | | | | 3,466 | | | | 3,133 | | Total Consulting | | $ | 19,107 | | | $ | 17,844 | | | $ | 16,257 | | Hybrid Infrastructure | | $ | 9,451 | | | $ | 8,167 | | | $ | 8,415 | | Infrastructure Support | | | 5,837 | | | | 6,021 | | | | 6,118 | | Total Infrastructure | | $ | 15,288 | | | $ | 14,188 | | | $ | 14,533 | | Financing** | | $ | 645 | | | $ | 774 | | | $ | 975 | | Other | | $ | 453 | | | $ | 1,119 | * | | $ | 1,291 | * | Total Revenue | | $ | 60,530 | | | $ | 57,350 | | | $ | 55,179 | | | | | | | | | | | | | | |
* | Recast to reflect segment change. |
** | Contains lease and loan 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: | | 2022 | | | 2021 | | | 2020 | | Software | | $ | 9,321 | | | $ | 8,386 | * | | $ | 6,517 | * | Consulting | | | 9,019 | | | | 7,852 | | | | 5,861 | | Infrastructure | | | 3,895 | | | | 3,645 | | | | 4,039 | | Other | | | 142 | | | | 328 | * | | | 422 | * | Total | | $ | 22,377 | | | $ | 20,210 | | | $ | 16,838 | | | | | | | | | | | | | | |
* Recast to reflect segment change.
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| Schedule of disaggregation of revenue by geography |
| | | | | | | | | | | | ($ in millions) | | | | | | | | | | For the year ended December 31: | | 2022 | | | 2021 | | | 2020 | Americas | | $ | 31,057 | | | $ | 28,299 | | | $ | 27,119 | Europe/Middle East/Africa | | | 17,950 | | | | 17,447 | | | | 16,767 | Asia Pacific | | | 11,522 | | | | 11,604 | | | | 11,293 | Total | | $ | 60,530 | | | $ | 57,350 | | | $ | 55,179 | | | | | | | | | | | | |
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| Schedule of reconciliation of contract balances |
| | | | | | | ($ in millions) | | | | | At December 31: | | 2022 | | 2021 | Notes and accounts receivable — trade (net of allowances of $233 in 2022 and $218 in 2021) | | $ | 6,541 | | $ | 6,754 | Contract assets* | | | 464 | | | 471 | Deferred income (current) | | | 12,032 | | | 12,518 | Deferred income (noncurrent) | | | 3,499 | | | 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 |
| | | | | | | | | | | | | | ($ in millions) | January 1, 2022 | | Additions/(Releases) | | Write-offs | | Foreign currency and Other | | December 31, 2022 | $ | 218 | | $ | 59 | | $ | (31) | | $ | (14) | | $ | 233 | | January 1, 2021 | | Additions/(Releases) | | Write-offs | | Foreign currency and Other | | December 31, 2021 | $ | 260 | | $ | (15) | | $ | (28) | | $ | 1 | | $ | 218 |
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| Schedule of deferred contract costs |
| | | | | | | ($ in millions) | | | | | | At December 31: | | 2022 | | 2021 | Capitalized costs to obtain a contract | | $ | 563 | | $ | 476 | Deferred costs to fulfill a contract | | | | | | | Deferred setup costs | | | 456 | | | 546 | Other deferred fulfillment costs | | | 814 | | | 1,000 | Total deferred costs* | | $ | 1,833 | | $ | 2,022 | | | | | | | |
* Of the total deferred costs, $967 million was current and $866 million was noncurrent at December 31, 2022 and $1,097 million was current and $924 million was noncurrent at December 31, 2021.
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