Segments (Tables)

3 Months Ended

Mar. 31, 2016

Segments:

Revenue and Pre-tax Income by Segment

SEGMENT INFORMATION
		Cognitive Solutions &
		Industry Services
								Technology
					Global			Services &
		Cognitive			Business			Cloud						Global			Total
(Dollars in millions)		Solutions			Services			Platforms			Systems			Financing			Segments
For the three months
	ended March 31, 2016:
External revenue		$	3,979		$	4,131		$	8,424		$	1,675		$	410		$	18,619
Internal revenue			668			113			165			212			486			1,645
Total revenue		$	4,647		$	4,245		$	8,589		$	1,888		$	896		$	20,264
Pre-tax income/(loss) from
	continuing operations	$	1,013		$	190		$	258		$	(10)		$	386		$	1,837
Revenue year-to-year change			(0.8)	%		(4.6)	%		(1.5)	%		(18.4)	%		(14.5)	%		(4.5)	%
Pre-tax income year-to-year
	change		(33.7)	%		(67.7)	%		(77.2)	%		nm			(25.0)	%		(54.3)	%
Pre-tax income margin			21.8	%		4.5	%		3.0	%		(0.5)	%		43.1	%		9.1	%
For the three months
	ended March 31, 2015*:
External revenue		$	4,047		$	4,318		$	8,554		$	2,142		$	461		$	19,523
Internal revenue			635			131			166			173			586			1,690
Total revenue		$	4,682		$	4,449		$	8,720		$	2,314		$	1,048		$	21,213
Pre-tax income from
	continuing operations	$	1,528		$	588		$	1,131		$	261		$	515		$	4,023
Pre-tax income margin			32.6	%		13.2	%		13.0	%		11.3	%		49.2	%		19.0	%
* Reclassified to conform with 2016 presentation.
nm - not meaningful

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 March 31:		2016		2015*
Revenue:
Total reportable segments		$	20,264	$	21,213
Eliminations of internal transactions			(1,645)		(1,690)
Other revenue			66		67
	Total consolidated revenue	$	18,684	$	19,590
Pre-tax income from continuing operations:
Total reportable segments		$	1,837	$	4,023
Amortization of acquired intangible assets			(211)		(170)
Acquisition-related (charges)/income			27		0
Non-operating retirement-related (costs)/income			(142)		(442)
Eliminations of internal transactions			(355)		(363)
Unallocated corporate amounts			(122)		(48)
	Total pre-tax income from continuing operations	$	1,034	$	3,001
* Reclassified to conform with 2016 presentation.