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Segments (Tables)

6 Months Ended

Jun. 30, 2020


	Cloud &			Global			Global
	Cognitive			Business			Technology						Global			Total
(Dollars in millions)	Software			Services			Services			Systems			Financing			Segments
For the three months ended June 30, 2020:
External revenue	$	5,748		$	3,890		$	6,316		$	1,852		$	265		$	18,072
Internal revenue		743			55			304			240			241			1,582
Total revenue	$	6,491		$	3,945		$	6,621		$	2,092		$	506		$	19,655
Pre-tax income from continuing operations	$	1,708		$	362		$	250		$	248		$	176		$	2,744
Revenue year-to-year change		5.2	%		(7.5)	%		(7.3)	%		8.7	%		(20.0)	%		(2.4)	%
Pre-tax income year-to-year change		(14.9)	%		25.1	%		6.4	%		304.8	%		(26.2)	%		(3.1)	%
Pre-tax income margin		26.3	%		9.2	%		3.8	%		11.8	%		34.9	%		14.0	%

For the three months ended June 30, 2019:
External revenue	$	5,563	*	$	4,197	*	$	6,837		$	1,753		$	351		$	18,701	*
Internal revenue		607			69			302			171			281			1,430
Total revenue	$	6,170	*	$	4,266	*	$	7,139		$	1,924		$	632		$	20,131	*
Pre-tax income from continuing operations	$	2,007	*	$	290	*	$	235		$	61		$	239		$	2,832	*
Pre-tax income margin		32.5	%*		6.8	%*		3.3	%		3.2	%		37.8	%		14.1	%*


	Cloud &			Global			Global
	Cognitive			Business			Technology						Global			Total
(Dollars in millions)	Software			Services			Services			Systems			Financing			Segments
For the six months ended June 30, 2020:
External revenue	$	10,987		$	8,027		$	12,783		$	3,220		$	564		$	35,581
Internal revenue		1,556			101			599			388			453			3,096
Total revenue	$	12,543		$	8,128		$	13,382		$	3,608		$	1,017		$	38,677
Pre-tax income from continuing operations	$	2,641		$	633		$	72		$	31		$	370		$	3,747
Revenue year-to-year change		4.7	%		(4.3)	%		(6.4)	%		5.7	%		(24.0)	%		(2.2)	%
Pre-tax income year-to-year change		(30.4)	%		7.8	%		(85.9)	%		nm			(29.8)	%		(29.0)	%
Pre-tax income margin		21.1	%		7.8	%		0.5	%		0.9	%		36.4	%		9.7	%

For the six months ended June 30, 2019:
External revenue	$	10,530	*	$	8,353	*	$	13,711		$	3,081		$	757		$	36,432	*
Internal revenue		1,448			143			591			334			581			3,097
Total revenue	$	11,978	*	$	8,495	*	$	14,303		$	3,415		$	1,338		$	39,529	*
Pre-tax income/(loss) from continuing operations	$	3,792	*	$	587	*	$	510		$	(141)		$	527		$	5,276	*
Pre-tax income/(loss) margin		31.7	%*		6.9	%*		3.6	%		(4.1)	%		39.4	%		13.3	%*

Reconciliations to IBM as Reported:


(Dollars in millions)
For the three months ended June 30:	2020		2019
Revenue:
Total reportable segments	$	19,655	$	20,131	*
Other—divested businesses		13		403	*
Other revenue		37		57
Eliminations of internal transactions		(1,582)		(1,430)
Total consolidated revenue	$	18,123	$	19,161

Pre-tax income from continuing operations:
Total reportable segments	$	2,744	$	2,832	*
Amortization of acquired intangible assets		(472)		(169)
Acquisition-related (charges)/income		(1)		(102)
Non-operating retirement-related (costs)/income		(273)		(136)
Eliminations of internal transactions		(121)		(60)
Other—divested businesses		(22)		561	*
Unallocated corporate amounts		(283)		(156)
Total pre-tax income from continuing operations	$	1,571	$	2,768

* Recast to conform to current period presentation.

Reconciliations to IBM as Reported:


(Dollars in millions)
For the six months ended June 30:	2020		2019
Revenue:
Total reportable segments	$	38,677	$	39,529	*
Other—divested businesses		32		780	*
Other revenue		81		131
Eliminations of internal transactions		(3,096)		(3,097)
Total consolidated revenue	$	35,694	$	37,342

Pre-tax income from continuing operations:
Total reportable segments	$	3,747	$	5,276	*
Amortization of acquired intangible assets		(945)		(343)
Acquisition-related (charges)/income		(2)		(141)
Non-operating retirement-related (costs)/income		(538)		(274)
Eliminations of internal transactions		(176)		(149)
Other—divested businesses		3		505	*
Unallocated corporate amounts		(568)		(224)
Total pre-tax income from continuing operations	$	1,522	$	4,651

* Recast to conform to current period presentation.

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