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Revenue Recognition (Tables) | 3 Months Ended
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Mar. 31, 2025
Revenue from Contract with Customer [Abstract] |
Schedule of disaggregation of revenue | The following tables provide details of revenue by major products/service offerings and revenue by geography. Revenue by Major Products/Service Offerings
(Dollars in millions) |  |  |  |  |  |  |  |
For the three months ended March 31: |  | 2025 |  | 2024 (1) |  |  |  |
Hybrid Cloud |  | $ | 1,687 |  |  | $ | 1,510 |  |  |  |  |
Automation |  | 1,584 |  |  | 1,391 |  |  |  |  |
Data |  | 1,236 |  |  | 1,173 |  |  |  |  |
Transaction Processing |  | 1,828 |  |  | 1,824 |  |  |  |  |
Total Software |  | $ | 6,336 |  |  | $ | 5,899 |  |  |  |  |
Strategy and Technology |  | 2,782 |  |  | 2,863 |  |  |  |  |
Intelligent Operations |  | 2,286 |  |  | 2,323 |  |  |  |  |
Total Consulting |  | $ | 5,068 |  |  | $ | 5,186 |  |  |  |  |
Hybrid Infrastructure |  | 1,646 |  |  | 1,803 |  |  |  |  |
Infrastructure Support |  | 1,240 |  |  | 1,273 |  |  |  |  |
Total Infrastructure |  | $ | 2,886 |  |  | $ | 3,076 |  |  |  |  |
Financing (2) |  | 191 |  |  | 193 |  |  |  |  |
Other |  | 61 |  |  | 108 |  |  |  |  |
Total revenue |  | $ | 14,541 |  |  | $ | 14,462 |  |  |  |  |
(1)Prior-year amounts recast to reflect January 2025 changes to the reported revenue categories within Software and Consulting segments. (2)Contains lease and loan financing arrangements which are not subject to the guidance on revenue from contracts with customers.
Schedule of disaggregation of revenue by geography |
(Dollars in millions) |  |  |  |  |  |  |  |
For the three months ended March 31: |  | 2025 |  | 2024 |  |  |  |
Americas |  | $ | 7,206 |  |  | $ | 7,296 |  |  |  |  |
Europe/Middle East/Africa |  | 4,552 |  |  | 4,313 |  |  |  |  |
Asia Pacific |  | 2,783 |  |  | 2,853 |  |  |  |  |
Total |  | $ | 14,541 |  |  | $ | 14,462 |  |  |  |  |
Schedule of reconciliation of contract balances | The following table provides information about notes and accounts receivable — trade, contract assets and deferred income balances.
(Dollars in millions) |  | At March 31, 2025 |  | At December 31, 2024
Notes and accounts receivable — trade (net of allowances of $102 in 2025 and $114 in 2024) |  | $ | 5,857 |  |  | $ | 6,804 |
Contract assets (1) |  | $ | 465 |  |  | $ | 433 |
Deferred income (current) |  | $ | 15,057 |  |  | $ | 13,907 |
Deferred income (noncurrent) |  | $ | 3,844 |  |  | $ | 3,622 |
(1)Included within prepaid expenses and other current assets in the Consolidated Balance Sheet.
Schedule of notes and accounts receivable - trade allowance for credit losses | The following table provides roll forwards of the notes and accounts receivable–trade allowance for expected credit losses for the three months ended March 31, 2025 and the year ended December 31, 2024.
(Dollars in millions) |  |  |  |  |  |  |  |
January 1, 2025 |  | Additions / (Releases) |  | Write-offs (1) |  | Foreign currency and other |  | March 31, 2025
$114 |  | $(10) |  | $(8) |  | $6 |  | $102
January 1, 2024 |  | Additions / (Releases) |  | Write-offs (1) |  | Foreign currency and other |  | December 31, 2024
$192 |  | $(2) |  | $(78) |  | $2 |  | $114
(1)The majority of the write-offs during the period related to receivables which had been previously reserved.

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- Definition Tabular disclosure of receivable, contract asset, and contract liability from contract with customer. Includes, but is not limited to, change in contract asset and contract liability. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 + Details
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- Definition Tabular disclosure of revenue from external customers by geographic areas attributed to the entity's country of domicile and to foreign countries from which the entity derives revenue. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-41 + Details
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