Segments: (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2012:
External revenue	$	9,995		$	4,667		$	6,171		$	4,259		$	517		$	25,608
Internal revenue	291			180			776			159			515			1,921
Total revenue	$	10,286		$	4,847		$	6,946		$	4,418		$	1,032		$	27,529
Pre-tax income	$	1,757		$	803		$	2,493		$	234		$	528		$	5,814
Revenue year-to-year change	(2.6		)%	(4.4		)%	(0.2		)%	(9.8		)%	(3.2		)%	(3.6		)%
Pre-tax income year-to-year change	23.7		%	7.0		%	7.9		%	(40.4		)%	6.4		%	8.3		%
Pre-tax income margin	17.1		%	16.6		%	35.9		%	5.3		%	51.1		%	21.1		%
For the three months ended June 30, 2011:
External revenue	$	10,241		$	4,866		$	6,169		$	4,681		$	519		$	26,476
Internal revenue	320			205			792			218			547			2,082
Total revenue	$	10,561		$	5,071		$	6,961		$	4,899		$	1,066		$	28,558
Pre-tax income	$	1,420		$	750		$	2,310		$	393		$	496		$	5,370
Pre-tax income margin	13.4		%	14.8		%	33.2		%	8.0		%	46.5		%	18.8		%

	Global Services
	Global			Global
	Technology			Business						Systems and			Global			Total
(Dollars in millions)	Services			Services			Software			Technology			Financing			Segments
For the six months ended June 30, 2012:
External revenue	$	20,031		$	9,304		$	11,770		$	8,008		$	1,006		$	50,120
Internal revenue	584			363			1,615			309			1,000			3,872
Total revenue	$	20,615		$	9,667		$	13,386		$	8,317		$	2,006		$	53,991
Pre-tax income	$	3,237		$	1,404		$	4,438		$	130		$	1,040		$	10,248
Revenue year-to-year change	(0.6		)%	(3.1		)%	2.2		%	(9.2		)%	(3.5		)%	(1.9		)%
Pre-tax income year-to-year change	21.8		%	1.0		%	9.7		%	(75.3		)%	2.4		%	6.4		%
Pre-tax income margin	15.7		%	14.5		%	33.2		%	1.6		%	51.8		%	19.0		%
For the six months ended June 30, 2011:
External revenue	$	20,104		$	9,575		$	11,478		$	8,700		$	1,035		$	50,892
Internal revenue	627			405			1,621			462			1,044			4,160
Total revenue	$	20,732		$	9,980		$	13,099		$	9,162		$	2,079		$	55,052
Pre-tax income	$	2,658		$	1,390		$	4,045		$	525		$	1,015		$	9,634
Pre-tax income margin	12.8		%	13.9		%	30.9		%	5.7		%	48.8		%	17.5		%

Revenue and pre-tax income reconciliations to IBM as Reported

(Dollars in millions)
For the three months ended June 30:	2012			2011*
Revenue:
Total reportable segments	$	27,529		$	28,558
Eliminations of internal transactions	(1,921		)	(2,082		)
Other revenue adjustments	175			191
Total IBM Consolidated	$	25,783		$	26,666
Pre-tax income:
Total reportable segments	$	5,814		$	5,370
Amortization of acquired intangible assets	(173		)	(159		)
Acquisition-related charges	(7		)	(4		)
Non-operating retirement-related (costs)/income	(94		)	12
Eliminations of internal transactions	(343		)	(315		)
Unallocated corporate amounts	(36		)	(18		)
Total IBM Consolidated	$	5,161		$	4,885

* Reclassified to conform with 2012 presentation.

(Dollars in millions)
For the six months ended June 30:	2012			2011*
Revenue:
Total reportable segments	$	53,991		$	55,052
Eliminations of internal transactions	(3,872		)	(4,160		)
Other revenue adjustments	336			381
Total IBM Consolidated	$	50,456		$	51,273
Pre-tax income:
Total reportable segments	$	10,248		$	9,634
Amortization of acquired intangible assets	(339		)	(318		)
Acquisition-related charges	(14		)	(11		)
Non-operating retirement-related (costs)/income	(197		)	8
Eliminations of internal transactions	(627		)	(624		)
Unallocated corporate amounts	(74		)	13
Total IBM Consolidated	$	8,997		$	8,702

* Reclassified to conform with 2011 presentation.