7. Segments: The tables below reflect the continuing operations results of the company’s segments consistent with the management and measurement system utilized within the company. Performance measurement is based on operating pre-tax income from continuing operations. The segments represent components of the company for which separate financial information is available that is utilized on a regular basis by the chief operating decision maker (the chief executive officer) in determining how to allocate resources and evaluate performance.

SEGMENT INFORMATION

							Technology
				Global			Services &
	Cognitive			Business			Cloud						Global			Total
(Dollars in millions)	Solutions			Services			Platforms			Systems			Financing			Segments
For the three months ended March 31, 2018:
External revenue	$	4,299		$	4,174		$	8,625		$	1,500		$	405		$	19,003
Internal revenue	780			89			141			153			429			1,592

Total revenue	$	5,079		$	4,263		$	8,766		$	1,653		$	834		$	20,595

Pre-tax income/(loss) from continuing operations	$	1,333		$	145		$	436		$	(203	)	$	377		$	2,088

Revenue year-to-year change	6.3		%	4.2		%	4.7		%	5.8		%	8.6		%	5.2		%
Pre-tax income year-to-year change	5.1		%	(48.6		)%	(35.2		)%	7.9		%	21.3		%	(11.0		)%
Pre-tax income margin	26.2		%	3.4		%	5.0		%	(12.3		)%	45.1		%	10.1		%

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/(loss) from continuing operations *	$	1,268		$	281		$	673		$	(188	)	$	311		$	2,346


Pre-tax income/(loss) margin *	26.5		%	6.9		%	8.0		%	(12.0		)%	40.4		%	12.0		%

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

Reconciliations to IBM as Reported:

(Dollars in millions)
For the three months ended March 31:	2018			2017
Revenue:
Total reportable segments	$	20,595		$	19,576
Eliminations of internal transactions	(1,592		)	(1,492		)
Other revenue	69			71

Total consolidated revenue	$	19,072		$	18,155

Pre-tax income from continuing operations:
Total reportable segments	$	2,088		$	2,346	*
Amortization of acquired intangible assets	(203		)	(249		)
Acquisition-related (charges)/income	0			(13		)
Non-operating retirement-related (costs)/income	(402		)	(347		)*
Eliminations of internal transactions	(218		)	(227		)
Unallocated corporate amounts	(130		)	(87		)

Total pre-tax income from continuing operations	$	1,136		$	1,424

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