REVENUE RECOGNITION (Tables)

3 Months Ended

Mar. 31, 2022

REVENUE RECOGNITION

Schedule of reconciliation of contract balances

	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.

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

	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.

Schedule of capitalized costs to acquire and fulfill customer contracts

	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.