REVENUE RECOGNITION (Tables)

3 Months Ended

12 Months Ended

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

REVENUE RECOGNITION

Schedule of reconciliation of contract balances

	June 30,		March 31,
(Dollars in millions)	2022		2022
Accounts receivable (net of allowances of $34 at June 30, 2022 and $44 at March 31, 2022)*	$	1,902	$	2,271
Contract assets**		31		41
Deferred income (current)		774		882
Deferred income (noncurrent)		413		452

*Included unbilled receivable balances of $446 million at June 30, 2022 and $473 million at March 31, 2022.

**Included within prepaid expenses and other current assets in the Consolidated Balance Sheet.

	March 31,		December 31,
(Dollars in millions)	2022		2021
Accounts receivable (net of allowances of $44 in 2022 and $44 in 2021)	$	2,271	$	2,279
Contract assets *		41		62
Deferred income (current)		882		872
Deferred income (noncurrent)		452		475

* Included within prepaid expenses and other current assets in the Consolidated Balance Sheet.

	December 31,
(Dollars in millions)	2021		2020
Accounts receivable (net of allowances of $44 in 2021 and $91 in 2020)	$	2,279	$	1,444
Contract assets *		62		72
Deferred income (current)		872		854
Deferred income (noncurrent)		475		543

Schedule of notes and accounts receivable - trade allowance for credit losses

	Three Months Ended		Three Months Ended
(Dollars in millions)	June 30, 2022		March 31, 2022
Beginning balance	$	44	$	44
Additions (releases)		(2)		6
Write-offs		(1)		(4)
Other*		(7)		(2)
Ending balance	$	34	$	44

*Primarily represents currency translation adjustments.

	Three Months Ended		Year Ended
(Dollars in millions)	March 31, 2022		December 31, 2021
Beginning balance	$	44	$	91
Additions (releases)		6		(23)
Write-offs		(4)		(5)
Other *		(2)		(19)
Ending balance	$	44	$	44

* Primarily represents translation adjustments and reclassifications.

	Year Ended December 31,
(Dollars in millions)	2021		2020		2019
Beginning balance	$	91	$	82	$	111
Additions (releases)		(23)		25		51
Write-offs		(5)		(7)		(78)
Other *		(19)		(9)		(3)
Ending balance	$	44	$	91	$	82

Schedule of capitalized costs to acquire and fulfill customer contracts

	June 30,		March 31,
(Dollars in millions)	2022		2022
Deferred transition costs	$	894	$	961
Prepaid software costs		753		806
Capitalized costs to fulfill contracts		296		302
Capitalized costs to obtain contracts		307		318
Total deferred costs *	$	2,250	$	2,387

* Of the total deferred costs, $1,092 million was current and $1,158 million was noncurrent at June 30, 2022, and $1,143 million was current and $1,244 million was noncurrent at March 31, 2022.

	March 31,		December 31,
(Dollars in millions)	2022		2021
Deferred transition costs	$	961	$	1,012
Prepaid software costs		806		658
Capitalized costs to fulfill contracts		302		235
Capitalized costs to obtain contracts		318		282
Total deferred costs *	$	2,387	$	2,185

* Of the total deferred costs, $1,143 million was current and $1,244 million was noncurrent at March 31, 2022, and $920 million was current and $1,265 million was noncurrent at December 31, 2021.

	December 31,
(Dollars in millions)	2021		2020
Deferred transition costs	$	1,012	$	1,369
Prepaid software costs		658		679
Capitalized costs to fulfill contracts		235		328
Capitalized costs to obtain contracts		282		269
Total deferred costs *	$	2,185	$	2,646

* Of the total deferred costs, $920 million was current and $1,265 million was noncurrent at December 31, 2021, and $1,205 million was current and $1,441 million was noncurrent at December 31, 2020.