Segments (Tables)

3 Months Ended

Mar. 31, 2019

Segments

Revenue and Pre-tax Income by Segment

	Cloud &			Global			Global
	Cognitive			Business			Technology						Global			Total
(Dollars in millions)	Software			Services			Services			Systems			Financing			Segments
For the three months ended March 31, 2019:
External revenue	$	5,037		$	4,119		$	6,875		$	1,328		$	406		$	17,765
Internal revenue	841			74			290			163			300			1,668
Total revenue	$	5,879		$	4,193		$	7,164		$	1,491		$	706		$	19,433
Pre-tax income/(loss) from continuing operations	$	1,767		$	315		$	275		$	(202	)	$	288		$	2,444
Revenue year-to-year change	(2.8		)%	(0.3		)%	(5.3		)%	(9.8		)%	(15.4		)%	(4.3		)%
Pre-tax income year-to-year change	5.2		%	152.1		%	315.1		%	(0.4		)%	(23.4		)%	19.5		%
Pre-tax income/(loss) margin	30.1		%	7.5		%	3.8		%	(13.5		)%	40.8		%	12.6		%
For the three months ended March 31, 2018:
External revenue	$	5,116	*	$	4,115	*	$	7,421	*	$	1,500		$	405		$	18,557	*
Internal revenue	931		*	89			141			153			429			1,743		*
Total revenue	$	6,047	*	$	4,204	*	$	7,562	*	$	1,653		$	834		$	20,299	*
Pre-tax income/(loss) from continuing operations	$	1,680	*	$	125	*	$	66	*	$	(203	)	$	377		$	2,045	*
Pre-tax income/(loss) margin	27.8		%*	3.0		%*	0.9		%*	(12.3		)%	45.1		%	10.1		%*

* Recast to conform to 2019 presentation.

Reconciliation of segment revenue to IBM as reported

(Dollars in millions)
For the three months ended March 31:	2019			2018
Revenue:
Total reportable segments	$	19,433		$	20,299	*
Other — divested businesses	343			446		*
Other revenue	74			69
Eliminations of internal transactions	(1,668		)	(1,743		)*
Total consolidated revenue	$	18,182		$	19,072

* Recast to conform to 2019 presentation.

Reconciliation of segment pre-tax income to IBM as reported

(Dollars in millions)
For the three months ended March 31:	2019			2018
Pre-tax income from continuing operations:
Total reportable segments	$	2,444		$	2,045	*
Amortization of acquired intangible assets	(173		)	(203		)
Acquisition-related (charges)/income	(39		)	0
Non-operating retirement-related (costs)/income	(138		)	(402		)
Eliminations of internal transactions	(89		)	(190		)*
Other — divested businesses	(55		)	14		*
Unallocated corporate amounts	(67		)	(130		)
Total pre-tax income from continuing operations	$	1,883		$	1,136

* Recast to conform to 2019 presentation.