Segment Information (Tables)

12 Months Ended

Dec. 31, 2018

($ in millions)

							Technology
				Global			Services &
	Cognitive			Business			Cloud						Global			Total
For the year ended December 31:	Solutions			Services			Platforms			Systems			Financing			Segments
2018
External revenue	$	18,481		$	16,817		$	34,462		$	8,034		$	1,590		$	79,383
Internal revenue	2,715			326			795			815			1,610			6,261

Total revenue	$	21,197		$	17,143		$	35,257		$	8,848		$	3,200		$	85,644

Pre-tax income from continuing operations	$	7,154		$	1,676		$	3,786		$	904		$	1,361		$	14,881

Revenue year-to-year change	0.5		%	2.6		%	0.9		%	(1.1		)%	1.0		%	0.9		%
Pre-tax income year-to-year change	5.3		%	23.0		%	(11.7		)%	(19.9		)%	6.5		%	0.2		%
Pre-tax income margin	33.8		%	9.8		%	10.7		%	10.2		%	42.5		%	17.4		%

2017
External revenue	$	18,453		$	16,348		$	34,277		$	8,194		$	1,696		$	78,968
Internal revenue	2,647			363			657			750			1,471			5,889

Total revenue	$	21,100		$	16,711		$	34,934		$	8,945		$	3,168		$	84,857

Pre-tax income from continuing operations*	$	6,795		$	1,362		$	4,286		$	1,128		$	1,278		$	14,849

Revenue year-to-year change	1.4		%	(2.3		)%	(3.1		)%	5.7		%	(9.3		)%	(1.3		)%
Pre-tax income year-to-year change*	7.4		%	(19.0		)%	(7.7		)%	21.9		%	(22.8		)%	(2.5		)%
Pre-tax income margin*	32.2		%	8.2		%	12.3		%	12.6		%	40.3		%	17.5		%

2016
External revenue	$	18,187		$	16,700		$	35,337		$	7,714		$	1,692		$	79,630
Internal revenue	2,630			409			715			750			1,802			6,307

Total revenue	$	20,817		$	17,109		$	36,052		$	8,464		$	3,494		$	85,936

Pre-tax income from continuing operations*	$	6,325		$	1,683		$	4,643		$	925		$	1,654		$	15,230

Revenue year-to-year change	3.8		%	(3.1		)%	0.6		%	(18.0		)%	(22.0		)%	(2.7		)%
Pre-tax income year-to-year change*	(12.5		)%	(34.4		)%	(17.4		)%	(46.1		)%	(30.0		)%	(21.9		)%
Pre-tax income margin*	30.4		%	9.8		%	12.9		%	10.9		%	47.3		%	17.7		%

*Recast to reflect adoption of the FASB guidance on presentation of net benefit cost.

($ in millions)

For the year ended December 31:	2018			2017			2016
Revenue
Total reportable segments	$	85,644		$	84,857		$	85,936

Other revenue	207			171			289
Elimination of internal transactions	(6,261		)	(5,889		)	(6,307		)

Total IBM consolidated revenue	$	79,591		$	79,139		$	79,919

($ in millions)

For the year ended December 31:	2018			2017			2016
Pre-tax income from continuing operations
Total reportable segments	$	14,881		$	14,849	*	$	15,230	*

Amortization of acquired intangible assets	(809		)	(945		)	(998		)
Acquisition-related charges	(16		)	(52		)	(5		)
Non-operating retirement-related (costs)/income	(1,572		)	(1,341		)*	(448		)*
Elimination of internal transactions	(758		)	(726		)	(1,160		)
Unallocated corporate amounts	(385		)	(385		)	(290		)

Total pre-tax income from continuing operations	$	11,342		$	11,400		$	12,330

*Recast to reflect adoption of the FASB guidance on presentation of net benefit cost.

($ in millions)

					Technology
			Global		Services &
	Cognitive		Business		Cloud				Global		Total
For the year ended December 31:	Solutions		Services		Platforms		Systems		Financing		Segments
2018
Assets	$	24,244	$	8,404	$	24,624	$	4,030	$	41,320	$	102,622
Depreciation/amortization of intangibles*	987		102		2,501		315		229		4,135
Capital expenditures/investments in intangibles	363		57		2,678		241		274		3,612
Interest income	—		—		—		—		1,647		1,647
Interest expense	—		—		—		—		515		515

2017
Assets**	$	24,828	$	8,713	$	24,619	$	3,898	$	41,096	$	103,153
Depreciation/amortization of intangibles*	1,121		101		2,359		341		267		4,190
Capital expenditures/investments in intangibles	373		50		2,290		189		364		3,265
Interest income	—		—		—		—		1,527		1,527
Interest expense	—		—		—		—		381		381

2016
Assets**	$	25,514	$	8,627	$	24,085	$	3,812	$	36,492	$	98,530
Depreciation/amortization of intangibles*	1,228		104		2,224		375		317		4,248
Capital expenditures/investments in intangibles	495		55		2,382		453		380		3,764
Interest income	—		—		—		—		1,547		1,547
Interest expense	—		—		—		—		371		371

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

** Recast to reflect adoption of the FASB guidance on restricted cash.

($ in millions)

At December 31:	2018			2017			2016
Assets
Total reportable segments	$	102,622		$	103,153	*	$	98,530	*

Elimination of internal transactions	(7,143		)	(6,272		)	(5,670		)
Unallocated amounts
Cash and marketable securities	10,393			10,162		*	6,999		*
Notes and accounts receivable	1,597			2,554			2,660
Deferred tax assets	5,089			4,746			5,078
Plant, other property and equipment	2,463			2,659			2,656
Pension assets	4,666			4,643			3,034
Other	3,695			3,712		*	4,183		*

Total IBM consolidated assets	$	123,382		$	125,356		$	117,470

*Recast to reflect adoption of the FASB guidance on restricted cash.

Revenue*

($ in millions)

For the year ended December 31:	2018		2017		2016
United States	$	29,078	$	29,759	$	30,194
Japan	8,489		8,239		8,339
Other countries	42,024		41,141		41,386

Total IBM consolidated revenue	$	79,591	$	79,139	$	79,919

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

Plant and Other Property — Net

($ in millions)

($ in millions)