Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2019

Revenue Recognition

Schedule of disaggregation of revenue

Revenue by Major Products/Service Offerings

(Dollars in millions)	Cloud &		Global		Global
For the three months	Cognitive		Business		Technology				Global				Total
ended March 31, 2019:	Software		Services		Services		Systems		Financing		Other		Revenue
Cognitive Applications	$	1,308	$	—	$	—	$	—	$	—	$	—	$	1,308
Cloud & Data Platforms	1,917		—		—		—		—		—		1,917
Transaction Processing Platforms	1,812		—		—		—		—		—		1,812
Consulting	—		1,964		—		—		—		—		1,964
Application Management	—		1,908		—		—		—		—		1,908
Global Process Services	—		247		—		—		—		—		247
Infrastructure & Cloud Services	—		—		5,209		—		—		—		5,209
Technology Support Services	—		—		1,665		—		—		—		1,665
Systems Hardware	—		—		—		914		—		—		914
Operating Systems Software	—		—		—		414		—		—		414
Global Financing*	—		—		—		—		406		—		406
Other Revenue	—		—		—		—		—		417		417
Total	$	5,037	$	4,119	$	6,875	$	1,328	$	406	$	417	$	18,182

* Contains lease and loan/working capital financing arrangements which are not subject to the guidance on revenue from contracts with customers.

Revenue by Geography

(Dollars in millions)
For the three months	Total
ended March 31, 2019:	Revenue
Americas	$	8,493
Europe/Middle East/Africa	5,727
Asia Pacific	3,961
Total	$	18,182

Revenue by Major Products/Service Offerings

(Dollars in millions)	Cloud &		Global		Global
For the three months	Cognitive		Business		Technology				Global				Total
ended March 31, 2018:	Software*		Services*		Services*		Systems		Financing		Other*		Revenue
Cognitive Applications	$	1,286	$	—	$	—	$	—	$	—	$	—	$	1,286
Cloud & Data Platforms	1,950		—		—		—		—		—		1,950
Transaction Processing Platforms	1,880		—		—		—		—		—		1,880
Consulting	—		1,867		—		—		—		—		1,867
Application Management	—		2,002		—		—		—		—		2,002
Global Process Services	—		246		—		—		—		—		246
Infrastructure & Cloud Services	—		—		5,639		—		—		—		5,639
Technology Support Services	—		—		1,782		—		—		—		1,782
Systems Hardware	—		—		—		1,093		—		—		1,093
Operating Systems Software	—		—		—		407		—		—		407
Global Financing**	—		—		—		—		405		—		405
Other Revenue	—		—		—		—		—		515		515
Total	$	5,116	$	4,115	$	7,421	$	1,500	$	405	$	515	$	19,072

*   Recast to conform to 2019 presentation.

** Contains lease and loan/working capital financing arrangements which are not subject to the guidance on revenue from contracts with customers.

Revenue by Geography

(Dollars in millions)
For the three months	Total
ended March 31, 2018:	Revenue
Americas	$	8,707
Europe/Middle East/Africa	6,176
Asia Pacific	4,188
Total	$	19,072

Schedule of reconciliation of contract balances

	At March 31,		At December 31,
(Dollars in millions)	2019		2018
Notes and accounts receivable—trade (net of allowances of $316 and $309 at March 31, 2019 and December 31, 2018, respectively)	$	6,987	$	7,432
Contract assets (1)	528		470
Deferred income (current)	12,134		11,165
Deferred income (noncurrent)	3,481		3,445

(1) Included within prepaid expenses and other current assets in the Consolidated Statement of Financial Position.