Segments: (Tables)

3 Months Ended

Mar. 31, 2012

Segments:

Revenue and Pre-tax Income by Segment

	Global Services
	Global			Global
	Technology			Business						Systems and			Global			Total
(Dollars in millions)	Services			Services			Software			Technology			Financing			Segments
For the three months ended March 31, 2012:
External revenue	$	10,035		$	4,637		$	5,600		$	3,749		$	490		$	24,511
Internal revenue	293			182			840			151			485			1,951
Total revenue	$	10,328		$	4,820		$	6,439		$	3,900		$	975		$	26,462
Pre-tax income	$	1,480		$	601		$	1,945		$	(105	)	$	512		$	4,434
Revenue year-to-year change	1.6		%	(1.8		)%	4.9		%	(8.5		)%	(3.8		)%	(0.1		)%
Pre-tax income year-to-year change	19.6		%	(6.1		)%	12.1		%	nm			(1.3		)%	4.0		%
Pre-tax income margin	14.3		%	12.5		%	30.2		%	(2.7		)%	52.6		%	16.8		%
For the three months ended March 31, 2011:
External revenue	$	9,863		$	4,710		$	5,308		$	4,019		$	516		$	24,416
Internal revenue	307			200			830			244			497			2,078
Total revenue	$	10,170		$	4,910		$	6,138		$	4,263		$	1,013		$	26,494
Pre-tax income	$	1,238		$	640		$	1,735		$	132		$	519		$	4,264
Pre-tax income margin	12.2		%	13.0		%	28.3		%	3.1		%	51.3		%	16.1		%

nm — not meaningful

Revenue and pre-tax income reconciliations to IBM as Reported

(Dollars in millions)
For the three months ended March 31:	2012			2011*
Revenue:
Total reportable segments	$	26,462		$	26,494
Eliminations of internal transactions	(1,951		)	(2,078		)
Other revenue adjustments	162			190
Total IBM Consolidated	$	24,673		$	24,607
Pre-tax income:
Total reportable segments	$	4,434		$	4,264
Amortization of acquired intangible assets	(166		)	(159		)
Acquisition-related charges	(7		)	(7		)
Non-operating retirement-related (costs)/income	(102		)	(4		)
Eliminations of internal transactions	(284		)	(309		)
Unallocated corporate amounts	(39		)	31
Total IBM Consolidated	$	3,836		$	3,817

* Reclassified to conform with 2012 presentation.