Segments (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2019:
External revenue	$	5,645		$	4,155		$	6,837		$	1,753		$	351		$	18,741
Internal revenue		607			69			302			171			281			1,430
Total revenue	$	6,252		$	4,224		$	7,139		$	1,924		$	632		$	20,170
Pre-tax income/(loss) from continuing operations	$	2,001		$	300		$	235		$	61		$	239		$	2,836
Revenue year-to-year change		(0.5)	%		0.1	%		(4.7)	%		(20.5)	%		(27.1)	%		(5.2)	%
Pre-tax income year-to-year change		(1.4)	%		(19.4)	%		(47.9)	%		(82.3)	%		(33.1)	%		(20.2)	%
Pre-tax income/(loss) margin		32.0	%		7.1	%		3.3	%		3.2	%		37.8	%		14.1	%
For the three months ended June 30, 2018:
External revenue	$	5,470	*	$	4,135	*	$	7,325	*	$	2,177		$	394		$	19,500	*
Internal revenue		811	*		83			169			242			473			1,778	*
Total revenue	$	6,280	*	$	4,218	*	$	7,494	*	$	2,419		$	867		$	21,278	*
Pre-tax income/(loss) from continuing operations	$	2,029	*	$	372	*	$	451	*	$	346		$	357		$	3,556	*
Pre-tax income/(loss) margin		32.3	%*		8.8	%*		6.0	%*		14.3	%		41.2	%		16.7	%*

* Recast to conform to 2019 presentation.

Reconciliation of segment revenue and pre-tax income to IBM as reported

(Dollars in millions)
For the three months ended June 30:	2019		2018
Revenue:
Total reportable segments	$	20,170	$	21,278	*
Other — divested businesses		363		457	*
Other revenue		57		45
Eliminations of internal transactions		(1,430)		(1,778)	*
Total consolidated revenue	$	19,161	$	20,003
Pre-tax income from continuing operations:
Total reportable segments	$	2,836	$	3,556	*
Amortization of acquired intangible assets		(169)		(203)
Acquisition-related (charges)/income		(102)		(1)
Non-operating retirement-related (costs)/income		(136)		(394)
Eliminations of internal transactions		(60)		(308)	*
Other — divested businesses		557		188	*
Unallocated corporate amounts		(156)		(62)
Total pre-tax income from continuing operations	$	2,768	$	2,776

* Recast to conform to 2019 presentation.

(Dollars in millions)
For the six months ended June 30:	2019		2018
Revenue:
Total reportable segments	$	39,603	$	41,578	*
Other — divested businesses		706		903	*
Other revenue		131		114
Eliminations of internal transactions		(3,097)		(3,521)	*
Total consolidated revenue	$	37,342	$	39,075
Pre-tax income from continuing operations:
Total reportable segments	$	5,280	$	5,601	*
Amortization of acquired intangible assets		(343)		(406)
Acquisition-related (charges)/income		(141)		(1)
Non-operating retirement-related (costs)/income		(274)		(796)
Eliminations of internal transactions		(149)		(497)	*
Other — divested businesses		502		202	*
Unallocated corporate amounts		(224)		(192)
Total pre-tax income from continuing operations	$	4,651	$	3,911

* Recast to conform to 2019 presentation.