Segments (Tables)

3 Months Ended

Mar. 31, 2020

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, 2020:
External revenue	$	5,238		$	4,136		$	6,467		$	1,368		$	299		$	17,508
Internal revenue		813			46			294			148			212			1,514
Total revenue	$	6,052		$	4,183		$	6,761		$	1,516		$	511		$	19,023
Pre-tax income/(loss) from continuing operations	$	933		$	271		$	(178)		$	(217)		$	194		$	1,003
Revenue year-to-year change		4.2	%		(1.1)	%		(5.6)	%		1.7	%		(27.6)	%		(1.9)	%
Pre-tax income year-to-year change		(47.7)	%		(9.1)	%		(164.7)	%		7.6	%		(32.7)	%		(59.0)	%
Pre-tax income/(loss) margin		15.4	%		6.5	%		(2.6)	%		(14.3)	%		37.9	%		5.3	%
For the three months ended March 31, 2019:
External revenue	$	4,967	*	$	4,155	*	$	6,875		$	1,328		$	406		$	17,731	*
Internal revenue		841			74			290			163			300			1,668
Total revenue	$	5,808	*	$	4,229	*	$	7,164		$	1,491		$	706		$	19,398	*
Pre-tax income/(loss) from continuing operations	$	1,785	*	$	298	*	$	275		$	(202)		$	288		$	2,445	*
Pre-tax income/(loss) margin		30.7	%*		7.0	%*		3.8	%		(13.5)	%		40.8	%		12.6	%*

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

(Dollars in millions)
For the three months ended March 31:	2020		2019
Revenue:
Total reportable segments	$	19,023	$	19,398	*
Other—divested businesses		18		377	*
Other revenue		44		74
Eliminations of internal transactions		(1,514)		(1,668)
Total consolidated revenue	$	17,571	$	18,182
Pre-tax income from continuing operations:
Total reportable segments	$	1,003	$	2,445	*
Amortization of acquired intangible assets		(473)		(173)
Acquisition-related (charges)/income		0		(39)
Non-operating retirement-related (costs)/income		(264)		(138)
Eliminations of internal transactions		(55)		(89)
Other—divested businesses		25		(56)	*
Unallocated corporate amounts		(284)		(67)
Total pre-tax income from continuing operations	$	(49)	$	1,883