Segments (Tables)

3 Months Ended

Mar. 31, 2017

Segments:

Revenue and Pre-tax Income by Segment

	Cognitive Solutions &
	Industry Services						Technology
				Global			Services &
	Cognitive			Business			Cloud						Global			Total
(Dollars in millions)	Solutions			Services			Platforms			Systems			Financing			Segments
For the three months ended March 31, 2017:
External revenue	$	4,062		$	4,006		$	8,216		$	1,395		$	405		$	18,083
Internal revenue	716			86			160			167			363			1,492
Total revenue	$	4,778		$	4,092		$	8,376		$	1,562		$	768		$	19,576
Pre-tax income from continuing operations	$	1,274		$	291		$	687		$	(186	)	$	311		$	2,377
Revenue year-to-year change	2.8		%	(3.6		)%	(2.5		)%	(17.3		)%	(14.3		)%	(3.4		)%
Pre-tax income year-to-year change	25.7		%	53.4		%	166.1		%	nm			(19.5		)%	29.4		%
Pre-tax income margin	26.7		%	7.1		%	8.2		%	(11.9		)%	40.5		%	12.1		%
For the three months ended March 31, 2016:
External revenue	$	3,979		$	4,131		$	8,424		$	1,675		$	410		$	18,619
Internal revenue	668			113			165			212			486			1,645
Total revenue	$	4,647		$	4,245		$	8,589		$	1,888		$	896		$	20,264
Pre-tax income from continuing operations	$	1,013		$	190		$	258		$	(10	)	$	386		$	1,837
Pre-tax income margin	21.8		%	4.5		%	3.0		%	(0.5		)%	43.1		%	9.1		%

nm - not meaningful

Reconciliation of segment revenue to IBM as reported

(Dollars in millions)
For the three months ended March 31:	2017			2016
Revenue:
Total reportable segments	$	19,576		$	20,264
Eliminations of internal transactions	(1,492		)	(1,645		)
Other revenue	71			66
Total consolidated revenue	$	18,155		$	18,684

Reconciliation of segment pre-tax income to IBM as reported

(Dollars in millions)
For the three months ended March 31:	2017			2016
Pre-tax income from continuing operations:
Total reportable segments	$	2,377		$	1,837
Amortization of acquired intangible assets	(249		)	(211		)
Acquisition-related (charges)/income	(13		)	27
Non-operating retirement-related (costs)/income	(378		)	(142		)
Eliminations of internal transactions	(227		)	(355		)
Unallocated corporate amounts	(87		)	(122		)
Total pre-tax income from continuing operations	$	1,424		$	1,034