Segments: (Tables)

9 Months Ended

Sep. 30, 2014

Segments:

Revenue and Pre-tax Income by Segment

SEGMENT INFORMATION
			Global Services
		Global			Global
		Technology			Business						Systems and			Global			Total
(Dollars in millions)		Services			Services			Software			Technology*			Financing			Segments*
For the three months
	ended September 30, 2014:
External revenue		$	9,218		$	4,459		$	5,708		$	2,434		$	487		$	22,305
Internal revenue			252			135			862			182			598			2,029
Total revenue		$	9,470		$	4,594		$	6,570		$	2,616		$	1,084		$	24,334
Pre-tax income/(loss)		$	1,680		$	805		$	2,333		$	(99)		$	475		$	5,195
Revenue year-to-year change			(2.9)	%		(3.0)	%		0.4	%		(13.7)	%		6.9	%		(3.0)	%
Pre-tax income year-to-year
	change		(11.3)	%		(15.0)	%		(3.2)	%		nm	%		(3.7)	%		(9.5)	%
Pre-tax income margin			17.7	%		17.5	%		35.5	%		(3.8)	%		43.9	%		21.3	%
nm - not meaningful
For the three months
	ended September 30, 2013*:
External revenue		$	9,494		$	4,558		$	5,798		$	2,864		$	502		$	23,216
Internal revenue			262			177			744			168			512			1,863
Total revenue		$	9,755		$	4,735		$	6,542		$	3,032		$	1,015		$	25,079
Pre-tax income/(loss)		$	1,895		$	948		$	2,410		$	(8)		$	494		$	5,738
Pre-tax income margin			19.4	%		20.0	%		36.8	%		(0.3)	%		48.7	%		22.9	%

SEGMENT INFORMATION
			Global Services
		Global			Global
		Technology			Business						Systems and			Global			Total
(Dollars in millions)		Services			Services			Software			Technology*			Financing			Segments*
For the nine months
	ended September 30, 2014:
External revenue		$	27,962		$	13,476		$	17,857		$	7,590		$	1,502		$	68,387
Internal revenue			739			416			2,652			541			1,900			6,248
Total revenue		$	28,701		$	13,892		$	20,508		$	8,131		$	3,403		$	74,635
Pre-tax income/(loss)		$	4,876		$	2,266		$	6,935		$	(354)		$	1,664		$	15,386
Revenue year-to-year change			(2.5)	%		(2.1)	%		2.0	%		(14.1)	%		9.2	%		(2.2)	%
Pre-tax income year-to-year
	change		(2.4)	%		(0.3)	%		1.0	%		167.1	%		5.2	%		(1.3)	%
Pre-tax income margin			17.0	%		16.3	%		33.8	%		(4.4)	%		48.9	%		20.6	%
For the nine months
	ended September 30, 2013*:
External revenue		$	28,634		$	13,649		$	17,792		$	9,041		$	1,488		$	70,604
Internal revenue			801			545			2,312			423			1,628			5,710
Total revenue		$	29,435		$	14,194		$	20,105		$	9,464		$	3,116		$	76,314
Pre-tax income/(loss)		$	4,994		$	2,274		$	6,867		$	(133)		$	1,582		$	15,583
Pre-tax income margin			17.0	%		16.0	%		34.2	%		(1.4)	%		50.8	%		20.4	%

Segment revenue and pre-tax income reconciliations to total IBM revenue and pre-tax income from continuing operations as reported

Reconciliations to IBM as Reported:
(Dollars in millions)
For the three months ended September 30:		2014		2013*
Revenue:
Total reportable segments		$	24,334	$	25,079
Eliminations of internal transactions			(2,029)		(1,863)
Other revenue adjustments			92		122
	Total IBM Consolidated	$	22,397	$	23,338
Pre-tax income from continuing operations:
Total reportable segments		$	5,195	$	5,738
Amortization of acquired intangible assets			(201)		(201)
Acquisition-related charges			0		(13)
Non-operating retirement-related (costs)/income			(71)		(257)
Eliminations of internal transactions			(402)		(280)
Unallocated corporate amounts			(160)		(15)
	Total income from continuing operations, before
	income taxes	$	4,361	$	4,972
* Reclassified to reflect discontinued operations presentation.

Reconciliations to IBM as Reported:
(Dollars in millions)
For the nine months ended September 30:		2014		2013*
Revenue:
Total reportable segments		$	74,635	$	76,314
Eliminations of internal transactions			(6,248)		(5,710)
Other revenue adjustments			292		378
	Total IBM Consolidated	$	68,680	$	70,982
Pre-tax income from continuing operations:
Total reportable segments		$	15,386	$	15,583
Amortization of acquired intangible assets			(596)		(562)
Acquisition-related charges			(10)		(29)
Non-operating retirement-related (costs)/income			(246)		(803)
Eliminations of internal transactions			(1,433)		(998)
Unallocated corporate amounts			(209)		(49)
	Total income from continuing operations before
	income taxes	$	12,891	$	13,142
* Reclassified to reflect discontinued operations presentation.