Segment Information (Tables)

12 Months Ended

Dec. 31, 2014

Management System Segment View

($ 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*
2014
External revenue			$	37,130		$	17,825		$	25,434		$	9,996		$	2,034		$	92,418
Internal revenue				934			543			3,496			647			2,488			8,108
Total revenue			$	38,063		$	18,367		$	28,931		$	10,643		$	4,522		$	100,527
Pre-tax income
	from continuing operations		$	6,340		$	2,999		$	10,699		$	34		$	2,189		$	22,262
Revenue year-to-year change				(3.9)	%		(3.9)	%		(0.7)	%		(21.6)	%		5.1	%		(4.9)	%
Pre-tax income year-to-year change				(9.2)	%		(6.7)	%		(3.7)	%		(84.1)	%		0.8	%		(6.0)	%
Pre-tax income margin				16.7	%		16.3	%		37.0	%		0.3	%		48.4	%		22.1	%

2013*
External revenue			$	38,551		$	18,396		$	25,932		$	12,988		$	2,022		$	97,889
Internal revenue				1,063			714			3,191			593			2,282			7,843
Total revenue			$	39,615		$	19,109		$	29,123		$	13,581		$	4,304		$	105,732
Pre-tax income
	from continuing operations		$	6,983		$	3,214		$	11,106		$	213		$	2,171		$	23,687
Revenue year-to-year change				(4.3)	%		(0.9)	%		1.4	%		(18.7)	%		5.7	%		(4.0)	%
Pre-tax income year-to-year change				0.3	%		7.7	%		2.7	%		(88.6)	%		6.8	%		(3.9)	%
Pre-tax income margin				17.6	%		16.8	%		38.1	%		1.6	%		50.4	%		22.4	%

2012*
External revenue			$	40,236		$	18,566		$	25,448		$	16,034		$	2,013		$	102,297
Internal revenue				1,166			719			3,274			676			2,060			7,896
Total revenue			$	41,402		$	19,286		$	28,722		$	16,710		$	4,073		$	110,193
Pre-tax income
	from continuing operations		$	6,961		$	2,983		$	10,810		$	1,866		$	2,034		$	24,653
Revenue year-to-year change				(1.7)	%		(4.0)	%		1.8	%		(7.0)	%		(2.9)	%		(2.1)	%
Pre-tax income year-to-year change				10.8	%		(0.8)	%		8.4	%		(11.6)	%		1.1	%		5.4	%
Pre-tax income margin				16.8	%		15.5	%		37.6	%		11.2	%		49.9	%		22.4	%

* Reclassified to reflect discontinued operations presentation.

Revenue and pre-tax income reconciliations to IBM as Reported

Reconciliations of IBM as Reported

($ in millions)

For the year ended December 31:	2014		2013*		2012*
Revenue
Total reportable segments	$	100,527	$	105,732	$	110,193
Other revenue and adjustments		374		478		577
Elimination of internal transactions		(8,108)		(7,843)		(7,896)
Total IBM consolidated revenue	$	92,793	$	98,367	$	102,874

($ in millions)

For the year ended December 31:	2014		2013*		2012*
Pre-tax income from continuing operations:
Total reportable segments	$	22,262	$	23,687	$	24,653
Amortization of acquired intangible assets		(791)		(758)		(703)
Acquisition-related charges		(12)		(46)		(36)
Non-operating retirement- related (costs)/income		(353)		(1,062)		(538)
Elimination of internal transactions		(1,914)		(1,480)		(1,197)
Unallocated corporate amounts**		795		(98)		361
Total income from continuing operations, before tax	$	19,986	$	20,244	$	22,540

* Reclassified to reflect discontinued operations presentation.

** The 2014, 2013 and 2012 amounts include the gain related to the Retail Store Solutions divestiture. The 2014 amount also includes the net gain related to the industry standard server divestiture.

Assets and Other Items by segment

Management System Segment View

($ in millions)

	Global Services Segments
	Global		Global				Systems and
	Technology		Business				Technology		Global		Total
For the year ended December 31:	Services		Services		Software		**		Financing		Segments**
2014
Assets	$	17,245	$	7,795	$	25,813	$	4,235	$	38,845	$	93,933
Depreciation/amortization of intangibles*		1,873		58		1,210		712		455		4,308
Capital expenditures/investments in intangibles		2,272		33		534		600		482		3,921
Interest income		—		—		—		—		1,951		1,951
Interest expense		—		—		—		—		518		518

2013**
Assets	$	18,048	$	8,311	$	27,101	$	4,901	$	40,138	$	98,499
Depreciation/amortization of intangibles*		1,670		72		1,211		435		574		3,963
Capital expenditures/investments in intangibles		1,938		69		540		395		467		3,410
Interest income		—		—		—		—		1,904		1,904
Interest expense		—		—		—		—		405		405

2012**
Assets	$	15,884	$	8,022	$	26,291	$	5,092	$	38,882	$	94,170
Depreciation/amortization of intangibles*		1,597		75		1,157		404		853		4,088
Capital expenditures/investments in intangibles		1,760		42		618		517		708		3,644
Interest income		—		—		—		—		1,972		1,972
Interest expense		—		—		—		—		410		410

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

** Reclassified to reflect discontinued operations presentation.

Asset reconciliation to IBM as reported

Reconciliations of IBM as Reported

($ in millions)

At December 31:		2014		2013*		2012*
Assets
Total reportable segments		$	93,933	$	98,499	$	94,170
Elimination of internal transactions			(5,193)		(4,740)		(4,943)
Unallocated amounts
	Cash and marketable securities		7,182		9,697		9,779
	Notes and accounts receivable		4,253		2,907		3,987
	Deferred tax assets		6,643		4,532		5,194
	Plant, other property and equipment		2,169		4,827		4,900
	Pension assets		2,160		5,551		945
	Other		6,386		4,949		5,181
Total IBM consolidated assets		$	117,532	$	126,223	$	119,213

	* Reclassified to reflect discontinued operations presentation.

Geographic Information

Revenue*

($ in millions)

For the year ended December 31:	2014		2013**		2012**
United States	$	32,021	$	33,427	$	34,653
Japan		8,382		9,070		10,696
Other countries		52,390		55,871		57,525
Total IBM consolidated revenue	$	92,793	$	98,367	$	102,874

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

** Reclassified to reflect discontinued operations presentation.

Plant and Other Property—Net

($ in millions)

At December 31:	2014		2013		2012
United States	$	4,388	$	6,723	$	6,555
Other countries		5,690		6,257		6,299
Total	$	10,078	$	12,979	$	12,854

Revenue by Classes of Similar Products or Services

($ in millions)

For the year ended December 31:		2014		2013*		2012*
Global Technology Services
	Services	$	28,817	$	29,953	$	31,161
	Maintenance		6,853		7,111		7,343
	Systems		1,294		1,322		1,574
	Software		165		164		159
Global Business Services
	Services	$	17,515	$	18,065	$	18,216
	Software		185		221		208
	Systems		124		109		142
Software
	Software	$	22,722	$	23,420	$	23,144
	Services		2,712		2,512		2,304
Systems and Technology*
	Servers	$	7,320	$	9,946	$	12,623
	Storage		2,676		3,041		3,411
Global Financing
	Financing	$	1,543	$	1,493	$	1,471
	Used equipment sales		491		529		542

	* Reclassified to reflect discontinued operations presentation.

- Definition

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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