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Segment Information (Tables)

12 Months Ended

Dec. 31, 2011

Segment Information

Revenue and Pre-tax Income by Segment

($ in millions)

		Global Services Segments
		Global			Global
		Technology			Business						Systems and			Global			Total
For the year ended December 31:		Services			Services			Software			Technology			Financing			Segments
2011
External revenue		$	40,879		$	19,284		$	24,944		$	18,985		$	2,102		$	106,194
Internal revenue		1,242			797			3,276			838			2,092			8,246
Total revenue		$	42,121		$	20,081		$	28,219		$	19,823		$	4,195		$	114,440
Pre-tax income		$	6,284		$	3,006		$	9,970		$	1,633		$	2,011		$	22,904
Revenue year-to-year change		6.6		%	5.6		%	10.9		%	5.6		%	2.8		%	7.1		%
Pre-tax income year-to-year change		14.3		%	18.1		%	5.3		%	12.2		%	2.8		%	9.5		%
Pre-tax income margin		14.9		%	15.0		%	35.3		%	8.2		%	47.9		%	20.0		%

2010
External revenue		$	38,201		$	18,223		$	22,485		$	17,973		$	2,238		$	99,120
Internal revenue		1,313			798			2,950			804			1,842			7,707
Total revenue		$	39,514		$	19,021		$	25,436		$	18,777		$	4,080		$	106,827
Pre-tax income*		$	5,499		$	2,546		$	9,466		$	1,456		$	1,956		$	20,923
Revenue year-to-year change		2.0		%	2.6		%	5.7		%	9.8		%	0.1		%	4.2		%
Pre-tax income year-to-year change*		0.3		%	1.8		%	13.8		%	12.1		%	13.5		%	8.3		%
Pre-tax income margin*		13.9		%	13.4		%	37.2		%	7.8		%	48.0		%	19.6		%

2009
External revenue		$	37,347		$	17,653		$	21,396		$	16,190		$	2,302		$	94,889
Internal revenue		1,386			887			2,677			911			1,774			7,635
Total revenue		$	38,734		$	18,540		$	24,073		$	17,102		$	4,076		$	102,524
Pre-tax income*		$	5,482		$	2,501		$	8,319		$	1,298		$	1,724		$	19,323
Revenue year-to-year change		(5.1		)%	(10.3		)%	(3.1		)%	(15.2		)%	(8.4		)%	(7.6		)%
Pre-tax income year-to-year change*		23.0		%	(3.4		)%	13.9		%	(8.8		)%	7.1		%	11.2		%
Pre-tax income margin*		14.2		%	13.5		%	34.6		%	7.6		%	42.3		%	18.8		%

* Reclassified to conform with 2011 presentation.

Revenue and pre-tax income reconciliations to IBM as Reported

($ in millions)

For the year ended December 31:		2011			2010			2009
Revenue
Total reportable segments		$	114,440		$	106,827		$	102,524
Other revenue and adjustments		722			750			869
Elimination of internal transactions		(8,246		)	(7,707		)	(7,635		)
Total IBM consolidated revenue		$	106,916		$	99,870		$	95,758

($ in millions)

For the year ended December 31:		2011			2010 *			2009 *
Pre-tax income
Total reportable segments		$	22,904		$	20,923		$	19,323
Amortization of acquired intangible assets		(629		)	(512		)	(489		)
Acquisition-related charges		(46		)	(46		)	(9		)
Non-operating retirement-related (costs)/income		72			414			509
Elimination of internal transactions		(1,243		)	(957		)	(744		)
Unallocated corporate amounts**		(56		)	(98		)	(453		)
Total IBM consolidated pre-tax income		$	21,003		$	19,723		$	18,138

* Reclassified to conform with 2011 presentation.

** The 2009 amount included a provision related to a joint venture investment, while the 2010 amount included an adjustment of that provision as the venture was divested. The 2009 and 2010 amounts included gains related to the divestiture of the printing business.

Assets and Other Items by segment

($ in millions)

		Global Services Segments
		Global			Global
		Technology			Business						Systems and			Global			Total
For the year ended December 31:		Services			Services			Software			Technology			Financing			Segments
2011
Assets		$	15,475		$	8,078		$	23,926		$	7,649		$	36,427		$	91,557
Depreciation/amortization of intangibles*		1,713			83			1,062			737			1,145			4,739
Capital expenditures/investments in intangibles		1,838			56			469			1,032			930			4,325
Interest income		—			—			—			—			2,139			2,139
Interest expense		—			—			—			—			538			538

2010
Assets		$	15,560		$	8,007		$	22,625		$	7,287		$	35,813		$	89,292
Depreciation/amortization of intangibles*		1,632			75			992			784			1,417			4,900
Capital expenditures/investments in intangibles		1,511			52			463			1,163			1,246			4,434
Interest income		—			—			—			—			2,116			2,116
Interest expense		—			—			—			—			548			548

2009
Assets		$	16,422		$	6,885		$	16,894		$	6,907		$	34,605		$	81,714
Depreciation/amortization of intangibles*		1,680			87			906			814			1,694			5,181
Capital expenditures/investments in intangibles		1,512			45			471			658			1,460			4,145
Interest income		—			—			—			—			2,265			2,265
Interest expense		—			—			—			—			674			674

* Segment pre-tax income does not include the amortization of intangible assets.

Asset reconciliation to IBM as reported

($ in millions)

At December 31:		2011			2010			2009
Assets
Total reportable segments		$	91,557		$	89,292		$	81,714
Elimination of internal transactions		(5,407		)	(5,515		)	(5,481		)
Unallocated amounts
Cash and marketable securities		10,575			10,113			12,688
Notes and accounts receivable		3,526			3,762			3,928
Deferred tax assets		4,865			4,494			5,545
Plant, other property and equipment		2,918			3,067			2,971
Pension assets		2,837			3,060			2,994
Other		5,562			5,178			4,665
Total IBM consolidated assets		$	116,433		$	113,452		$	109,022

Geographic Information

($ in millions)

For the year ended December 31:		2011			2010			2009
United States		$	37,041		$	35,581		$	34,150
Japan		10,968			10,701			10,222
Other countries		58,906			53,589			51,386
Total IBM consolidated revenue		$	106,916		$	99,870		$	95,758

* Revenues are attributed to countries based on the location of the client.

Net Plant, Property and Equipment

($ in millions)

At December 31:		2011			2010			2009
United States		$	6,271		$	6,134		$	6,313
Other countries		6,186			6,298			6,142
Total		$	12,457		$	12,432		$	12,455

Revenue by Classes of Similar Products or Services

($ in millions)

For the year ended December 31:		2011			2010			2009
Global Technology Services
Services		$	31,746		$	29,367		$	28,762
Maintenance		7,515			7,250			6,956
Systems		1,478			1,409			1,279
Software		140			175			351
Global Business Services
Services		$	18,956		$	17,858		$	17,213
Software		211			236			231
Systems		118			129			208
Software
Software		$	22,921		$	20,882		$	20,094
Services		2,022			1,603			1,302
Systems and Technology
Servers		$	12,362		$	11,619		$	10,627
Storage		3,619			3,420			3,177
Microelectronics OEM		1,975			1,938			1,550
Retail Store Solutions		753			674			551
Microelectronics Services		277			321			285
Global Financing
Financing		$	1,612		$	1,580		$	1,715
Used equipment sales		490			659			588

Tabular disclosure of information concerning material long-lived assets (excluding financial instruments, customer relationships with financial institutions, mortgage and other servicing rights, deferred policy acquisition costs, and deferred taxes assets) located in identified geographic areas and/or the amount of revenue from external customers attributed to that country from which revenue is material. An entity may also provide subtotals of geographic information about groups of countries.

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Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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