XML 188 R35.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Segments (Tables)
12 Months Ended
Dec. 31, 2019
Segments  
Revenue and Pre-tax Income by Segment

Cloud &

 

Global

 

Global

($ in millions)

 

Cognitive

 

Business

 

Technology

 

Global

 

Total

For the year ended December 31:

    

Software

    

Services

    

Services

    

Systems

    

Financing

    

Segments

2019 

External revenue

 

$

23,200

$

16,634

$

27,361

$

7,604

$

1,400

$

76,199

Internal revenue

2,827

278

1,157

726

1,232

6,220

Total revenue

 

$

26,027

$

16,911

$

28,518

$

8,330

$

2,632

$

82,419

Pre-tax income from continuing operations

 

$

7,952

$

1,666

$

1,645

$

701

$

1,055

$

13,019

Revenue year-to-year change

2.5

%  

(0.1)

%  

(5.0)

%  

(5.9)

%  

(17.8)

%  

(2.3)

%

Pre-tax income year-to-year change

(10.5)

%  

2.2

%  

(7.6)

%  

(22.4)

%  

(22.5)

%  

(10.6)

%

Pre-tax income margin

30.6

%  

9.9

%  

5.8

%  

8.4

%  

40.1

%  

15.8

%

2018 

External revenue

 

$

22,209

*  

$

16,595

*  

$

29,146

*  

$

8,034

$

1,590

$

77,573

*

Internal revenue

3,190

*  

326

872

*  

815

1,610

6,813

*

Total revenue

 

$

25,399

*  

$

16,921

*  

$

30,018

*  

$

8,848

$

3,200

$

84,386

*

Pre-tax income from continuing operations

 

$

8,882

*  

$

1,629

*  

$

1,781

*  

$

904

$

1,361

$

14,557

*

Revenue year-to-year change

2.0

%*  

2.9

%*  

0.5

%*  

(1.1)

%  

1.0

%  

1.3

%*

Pre-tax income year-to-year change

10.1

%*  

25.0

%*  

(32.0)

%*  

(19.9)

%  

6.5

%  

1.1

%*

Pre-tax income margin

35.0

%*  

9.6

%*  

5.9

%*  

10.2

%  

42.5

%  

17.3

%*

2017 

External revenue

 

$

21,751

*  

$

16,073

*  

$

29,213

*  

$

8,194

$

1,696

$

76,927

*

Internal revenue

3,159

*  

363

657

750

1,471

6,401

*

Total revenue

 

$

24,910

*  

$

16,436

*  

$

29,870

*  

$

8,945

$

3,168

$

83,329

*

Pre-tax income from continuing operations

 

$

8,068

*  

$

1,303

*  

$

2,618

*  

$

1,128

$

1,278

$

14,396

*

Revenue year-to-year change

2.0

%*  

(1.9)

%*  

(3.6)

%*  

5.7

%  

(9.3)

%  

(0.9)

%*

Pre-tax income year-to-year change

7.3

%*  

(18.4)

%*  

(13.2)

%*  

21.9

%  

(22.8)

%  

(2.2)

%*

Pre-tax income margin

32.4

%*  

7.9

%*  

8.8

%*  

12.6

%  

40.3

%  

17.3

%*

* Recast to conform to 2019 presentation.

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

($ in millions)

    

    

    

 

For the year ended December 31:

2019

2018

2017

Revenue

Total reportable segments

$

82,419

$

84,386

*  

$

83,329

*

Other—divested businesses

786

1,810

*  

2,041

*

Other revenue

162

207

171

Elimination of internal transactions

(6,220)

(6,813)

*  

(6,401)

*

Total IBM consolidated revenue

$

77,147

$

79,591

$

79,139

* Recast to conform to 2019 presentation.

($ in millions)

For the year ended December 31:

    

2019

    

2018

    

2017

 

Pre-tax income from continuing operations

Total reportable segments

$

13,019

$

14,557

*  

$

14,396

*

Amortization of acquired intangible assets

(1,298)

(809)

(945)

Acquisition-related charges

(423)

(16)

(52)

Non-operating retirement - related (costs)/income

(615)

(1,572)

(1,341)

Elimination of internal transactions

(290)

(725)

*  

(742)

*

Other—divested businesses

390

292

*

468

*

Unallocated corporate amounts

(617)

(385)

(385)

Total pre-tax income from continuing operations

$

10,166

$

11,342

$

11,400

* Recast to conform to 2019 presentation.

Assets and Other Items by segment

    

Cloud &

    

Global

    

Global

    

    

    

 

($ in millions)

Cognitive

Business

Technology

Global

Total

For the year ended December 31:

Software

Services

Services

Systems

Financing

Segments

2019

Assets

$

58,453

$

10,039

$

22,436

$

4,590

$

29,568

$

125,087

Depreciation/amortization of intangibles**

1,107

149

2,601

350

186

4,392

Capital expenditures/investments in intangibles

515

48

1,575

305

57

2,501

Interest income

1,490

1,490

Interest expense

512

512

2018

Assets

$

28,713

*  

$

8,360

*  

$

17,624

*  

$

4,030

$

41,320

$

100,047

*

Depreciation/amortization of intangibles**

1,058

*  

100

*  

2,359

*  

315

229

4,063

*

Capital expenditures/investments in intangibles

469

*  

57

*  

2,569

*  

241

274

3,610

*

Interest income

1,647

1,647

Interest expense

515

515

2017

Assets

$

29,650

*  

$

8,647

*  

$

17,577

*  

$

3,898

$

41,096

$

100,868

*

Depreciation/amortization of intangibles**

1,185

*

99

*

2,209

*

341

267

4,101

*

Capital expenditures/investments in intangibles

467

*

46

*

2,193

*

189

364

3,259

*

Interest income

1,527

1,527

Interest expense

381

381

*   Recast to conform to 2019 presentation.

** Segment pre-tax income from continuing operations does not include the amortization of intangible assets.

Reconciliation of assets to IBM as reported

($ in millions)

    

    

    

 

At December 31:

2019

2018

2017

Assets

Total reportable segments

$

125,087

$

100,047

*  

$

100,868

*

Elimination of internal transactions

(4,317)

(7,143)

(6,272)

Other—divested businesses

1,894

2,575

*  

2,285

*

Unallocated amounts

Cash and marketable securities

7,308

10,393

10,162

Notes and accounts receivable

3,298

1,597

2,554

Deferred tax assets

4,995

5,089

4,746

Plant, other property and equipment

2,334

2,463

2,659

Operating right-of-use assets**

3,530

Pension assets

6,865

4,666

4,643

Other

1,194

3,695

3,712

Total IBM consolidated assets

$

152,186

$

123,382

$

125,356

*   Recast to conform to 2019 presentation.

** Reflects the adoption of the FASB guidance on leases in 2019.

Geographic Information

The following provides information for those countries that are 10 percent or more of the specific category.

Revenue*

($ in millions)

    

    

    

For the year ended December 31:

2019

2018

2017

United States

$

28,395

$

29,078

$

29,759

Japan

8,681

8,489

8,239

Other countries

40,071

42,024

41,141

Total IBM consolidated revenue

$

77,147

$

79,591

$

79,139

* Revenues are attributed to countries based on the location of the client.

Plant and Other Property–Net

($ in millions)

At December 31:

    

2019

    

2018

    

2017

United States

$

4,485

$

4,585

$

4,670

Other countries

5,294

5,774

5,985

Total

$

9,778

$

10,359

$

10,655

Operating Right-of-Use Assets–Net*

($ in millions)

    

    

    

At December 31:

2019

2018

2017

United States

$

1,386

$

$

Japan

659

Other countries

2,951

Total

$

4,996

$

$

* Reflects the adoption of the FASB guidance on leases in 2019.

Revenue by Classes of Similar Products or Services

($ in millions)

For the year ended December 31:

    

2019

    

2018

    

2017

 

Cloud & Cognitive Software*

Software

$

18,712

$

17,970

**  

$

17,681

**

Services

4,321

4,082

**  

3,920

**

Systems

166

156

150

Global Business Services*

Services

$

16,363

$

16,238

**  

$

15,728

**

Software

156

151

**  

179

**

Systems

115

206

165

Global Technology Services*

Services

$

20,768

$

22,222

**  

$

21,913

**

Maintenance

5,183

5,484

5,783

Systems

1,072

1,069

1,207

Software

338

371

**  

310

**

Systems

Servers

$

3,746

$

3,996

$

3,993

Storage

1,920

2,114

2,243

Software

1,528

1,499

**  

1,520

**

Services

410

425

**  

438

**

Global Financing

Financing

$

1,120

$

1,223

$

1,167

Used equipment sales

281

366

530

*   Recast to conform to 2019 presentation.

** Reclassified to conform to 2019 presentation. Refer to “Basis of Presentation” in note A, “Significant Accounting Policies,” for additional information.