Segments:

3 Months Ended

Mar. 31, 2013

Segments:

Segments:

6. Segments:  The table on page 25 reflects the results of operations of the company’s segments consistent with the management and measurement system utilized within the company. Performance measurement is based on pre-tax income. These results are used, in part, by senior management, both in evaluating the performance of, and in allocating resources to, each of the segments.

SEGMENT INFORMATION

	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, 2013:
External revenue	$	9,605		$	4,484		$	5,572		$	3,106		$	499		$	23,266
Internal revenue	248			180			831			120			541			1,919
Total revenue	$	9,852		$	4,664		$	6,403		$	3,226		$	1,040		$	25,185
Pre-tax income	$	1,585		$	703		$	2,014		$	(405	)	$	538		$	4,435
Revenue year-to-year change	(4.6		)%	(3.2		)%	(0.6		)%	(17.3		)%	6.7		%	(4.8		)%
Pre-tax income year-to-year change	7.1		%	17.0		%	3.5		%	(286.7		)%	5.0		%	0.0		%
Pre-tax income margin	16.1		%	15.1		%	31.5		%	(12.5		)%	51.8		%	17.6		%
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
Pre-tax income margin	14.3		%	12.5		%	30.2		%	(2.7		)%	52.6		%	16.8		%

Reconciliations to IBM as Reported:

(Dollars in millions)
For the three months ended March 31:	2013			2012
Revenue:
Total reportable segments	$	25,185		$	26,462
Eliminations of internal transactions	(1,919		)	(1,951		)
Other revenue adjustments	142			162
Total IBM Consolidated	$	23,408		$	24,673
Pre-tax income:
Total reportable segments	$	4,435		$	4,434
Amortization of acquired intangible assets	(183		)	(166		)
Acquisition-related charges	(11		)	(7		)
Non-operating retirement-related (costs)/income	(283		)	(102		)
Eliminations of internal transactions	(339		)	(284		)
Unallocated corporate amounts	(13		)	(39		)
Total IBM Consolidated	$	3,606		$	3,836