Segments (Tables)

3 Months Ended

Mar. 31, 2018

Segments

Revenue and Pre-tax Income by Segment

							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.

Reconciliation of segment revenue 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

Reconciliation of segment pre-tax income to IBM as reported

(Dollars in millions)
For the three months ended March 31:	2018			2017
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.