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Segments (Tables)
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Schedule of segment updates
The following table displays the segment updates:
Reportable Segment Change
Resulting Segment Implications
The Weather Company asset divestiture (1)
-
Software Segment
+
Other—divested business
Security Services realignment
-
Software Segment
+
Consulting Segment
Removal of stock-based compensation and net interest allocations from segment profitability
-
Software Segment, Consulting Segment, Infrastructure Segment, Financing Segment (2)
+
Other
(1)The Weather Company asset divestiture closed January 31, 2024.
(2)Presentation of interest for the Financing Segment did not change.
Segment revenue and profit
The following tables reflect the results of continuing operations of the company’s segments consistent with the management and measurement system utilized within the company and have been recast for the prior-year periods to reflect the company's segment changes described above. Performance measurement is based on segment profit. The chief operating decision maker considers budget-to-actual results of segment profit, both when evaluating the performance of and allocating resources to each of the segments as well as in developing certain compensation recommendations.
Management System Segment View
($ in millions)
For the year ended December 31 (1):
Software Consulting Infrastructure
Financing (2)
Total
Segments
2024
Revenue$27,085 $20,692 $14,020 $713 $62,510 
Segment cost4,428 15,103 6,201 372 26,103 
Other expense and (income) (3)
13,974 3,535 5,369 (6)22,872 
Segment profit8,684 2,054 2,450 348 13,535 
Revenue year-to-year change8.3 %(0.9)%(3.9)%(3.7)%2.1 %
Segment profit year-to-year change15.8 %(3.6)%(13.4)%(6.6)%5.5 %
Segment profit margin32.1 %9.9 %17.5 %48.8 %21.7 %
2023
Revenue$25,011 $20,884 $14,593 $741 $61,229 
Segment cost4,289 15,297 6,406 384 26,376 
Other expense and (income) (3)
13,222 3,458 5,359 (16)22,023 
Segment profit7,499 2,130 2,828 373 12,829 
Revenue year-to-year change5.8 %4.1 %(4.5)%14.8 %2.7 %
Segment profit year-to-year change6.9 %13.8 %5.9 %9.8 %7.9 %
Segment profit margin30.0 %10.2 %19.4 %50.3 %21.0 %
2022
Revenue$23,629 $20,058 $15,288 $645 $59,621 
Segment cost4,146 14,878 7,212 398 26,634 
Other expense and (income) (3)
12,471 3,310 5,405 (92)21,093 
Segment profit7,012 1,871 2,671 340 11,893 
(1)Prior-year amounts recast to reflect January 2024 segment changes.
(2)Refer to “Segment Assets and Other Items” section below for additional information on financing interest income and expense.
(3)Other expense and (income) by segment primarily includes:
Software - SG&A, RD&E, Other income, Intellectual property and custom development income
Consulting - SG&A
Infrastructure - SG&A, RD&E, Intellectual property and custom development income, Other income
Financing - Intercompany financing net other income, SG&A
Reconciliation of segment revenue and profit to IBM as reported
($ in millions) 
For the year ended December 31:2024
2023 (1)
2022 (1)
Revenue
Total reportable segments$62,510 $61,229 $59,621 
Other—divested businesses35 397 774 
Other revenue207 235 135 
Total revenue$62,753 $61,860 $60,530 
($ in millions)  
For the year ended December 31:2024 
2023 (1)
2022 (1)
Pre-tax income from continuing operations
Total reportable segment profit$13,535 $12,829 $11,893 
Amortization of acquired intangible assets(1,830)(1,627)(1,747)
Acquisition-related (charges)/income (2)
(122)(33)(18)
Non-operating retirement-related (costs)/income (3)
(3,457)39 (6,548)
Kyndryl-related impacts (4)
— — (351)
Stock-based compensation(1,311)(1,133)(987)
Net interest excluding the Financing segment(984)(973)(1,071)
Workforce rebalancing charges (5)
(692)(435)— 
Other—divested businesses (6)
234 83 239 
Unallocated corporate amounts and other (7)
425 (59)(254)
Total pre-tax income from continuing operations$5,797 $8,690 $1,156 
(1)Recast to reflect January 2024 segment changes.
(2)2024 and 2023 include the impacts of foreign exchange derivative contracts entered into by the company prior to the acquisition of StreamSets and webMethods from Software AG. Refer to note S, “Derivative Financial Instruments,” for additional information.
(3)2024 and 2022 include the impacts of pension settlement charges of $3.1 billion and $5.9 billion, respectively. Refer to note U, “Retirement-Related Benefits,” for additional information.
(4)Net impacts for Kyndryl retained shares and related swaps. Refer to note S, “Derivative Financial Instruments,” for additional information.
(5)Beginning in the first quarter of 2023, the company updated its measure of segment profit, consistent with its management system, to no longer allocate workforce rebalancing charges to its reportable segments. Workforce rebalancing charges of $40 million for 2022 were included in the segments.
(6)2024 includes a gain from the divestiture of The Weather Company assets. 2022 includes a gain from the sale of healthcare software assets. Refer to note E, “Acquisitions & Divestitures,” for additional information.
(7)2024 includes a gain from the sale of certain QRadar SaaS assets. Refer to note E, “Acquisitions & Divestitures,” for additional information.
Assets and other items by segment
($ in millions)
For the year ended December 31:SoftwareConsultingInfrastructureFinancingTotal
Segments
2024
Assets$60,707 $14,826 $12,161 $14,075 $101,769 
Depreciation/amortization of non-acquired intangibles495 100 1,103 9 1,708 
Capital expenditures/investments in intangibles338 14 684 11 1,048 
2023 (1)
Assets$59,811 $15,089 $11,991 $14,409 $101,300 
Depreciation/amortization of non-acquired intangibles510 109 1,018 8 1,646 
Capital expenditures/investments in intangibles369 21 836 15 1,241 
2022 (1)
Assets$55,822 $14,261 $12,243 $15,757 $98,083 
Depreciation/amortization of non-acquired intangibles547 112 1,250 14 1,923 
Capital expenditures/investments in intangibles463 29 853 27 1,371 
(1)Recast to reflect January 2024 segment changes.
Reconciliation of assets to IBM as reported
($ in millions)
At December 31:20242023
Assets
Total reportable segments (1)
$101,769 $101,300 
Elimination of internal transactions(853)(1,028)
Other—divested businesses (1)
74 601 
Unallocated amounts
Cash and marketable securities14,243 12,907 
Deferred tax assets6,850 6,468 
Plant, other property and equipment1,952 1,838 
Operating right-of-use assets2,001 2,085 
Pension assets7,492 7,506 
  Other3,647 3,563 
Total IBM consolidated assets$137,175 $135,241 
(1)Prior-year amount recast to reflect January 2024 segment changes.
Geographic information
The following tables provide information for those countries that are 10 percent or more of the specific category.
Revenue (1)
($ in millions) 
For the year ended December 31:202420232022
United States$25,144 $25,309 $25,098 
Other countries37,609 36,551 35,432 
Total revenue$62,753 $61,860 $60,530 
(1)Revenues are attributed to countries based on the location of the client.
Plant and Other Property–Net (1)
($ in millions) 
At December 31:202420232022
United States$4,009 $3,466 $3,209 
Other countries1,717 2,027 2,100 
Total$5,726 $5,492 $5,308 
(1)Excludes rental machines.
Operating Right-of-Use Assets–Net
($ in millions) 
At December 31:202420232022
United States$1,154 $1,249 $1,074 
India (1)
365 218 254 
Japan324 340 259 
Other countries (1)
1,355 1,413 1,290 
Total$3,197 $3,220 $2,878 
(1)Prior-year amounts have been reclassified to conform to the change in 2024 presentation.
Revenue by classes of similar products or services
The following table presents external revenue for similar classes of products or services within the company’s reportable segments. Client solutions often include IBM software and systems and other suppliers’ products if the client solution requires it. For each of the segments that include services, Software-as-a-Service, consulting, education, training and other product-related services are included as services. For each of these segments, software includes product license charges and ongoing subscriptions.
($ in millions) 
For the year ended December 31:2024
2023 (1)
2022 (1)
Software
Software$24,055 $22,409 $21,326 
Services3,002 2,562 2,237 
Systems29 40 66 
Consulting
Services$20,277 $20,515 $19,757 
Software324 272 207 
Systems91 98 94 
Infrastructure
Maintenance$3,951 $4,138 $4,590 
Servers3,693 4,253 4,471 
Storage2,360 2,081 1,989 
Services2,262 2,463 2,653 
Software1,753 1,658 1,585 
Financing
Financing$681 $680 $582 
Used equipment sales32 60 64 
(1)Recast to reflect January 2024 segment changes.