Segments (Tables)

3 Months Ended

Mar. 31, 2021

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, 2021:
External revenue	$	5,437		$	4,234		$	6,370		$	1,427		$	240		$	17,707
Internal revenue		832			55			313			189			168			1,557
Total revenue	$	6,269		$	4,289		$	6,683		$	1,616		$	408		$	19,264
Pre-tax income/(loss) from continuing operations	$	1,428		$	390		$	140		$	(2)		$	166		$	2,122
Revenue year-to-year change		3.6	%		2.5	%		(1.2)	%		6.6	%		(20.2)	%		1.3	%
Pre-tax income/(loss) year-to-year change		53.0	%		44.1	%		nm			nm			(14.2)	%		111.6	%
Pre-tax income/(loss) margin		22.8	%		9.1	%		2.1	%		(0.1)	%		40.8	%		11.0	%
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
Pre-tax income/(loss) margin		15.4	%		6.5	%		(2.6)	%		(14.3)	%		37.9	%		5.3	%

nm - not meaningful

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

(Dollars in millions)
For the three months ended March 31:	2021		2020
Revenue:
Total reportable segments	$	19,264	$	19,023
Other–divested businesses		1		18
Other revenue		21		44
Eliminations of internal transactions		(1,557)		(1,514)
Total consolidated revenue	$	17,730	$	17,571
Pre-tax income from continuing operations:
Total reportable segments	$	2,122	$	1,003
Amortization of acquired intangible assets		(452)		(473)
Acquisition-related (charges)/income		(16)		0
Non-operating retirement-related (costs)/income		(343)		(264)
Spin-off related charges		(61)		—
Elimination of internal transactions		(73)		(55)
Other–divested businesses		(8)		25
Unallocated corporate amounts		(263)		(284)
Total pre-tax income/(loss) from continuing operations	$	905	$	(49)