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Segments
9 Months Ended
Sep. 30, 2021
Segments  
Segments

4. Segments:

The following tables reflect the results of continuing operations of the company’s segments consistent with the management and measurement system utilized within the company. Performance measurement is based on pre-tax income from continuing operations. These results are used, in part, by the chief operating decision maker, both in evaluating the performance of, and in allocating resources to, each of the segments. See note 1, "Basis of Presentation" for additional information about the new operating segments, that will be effective in the fourth quarter of 2021.

​

SEGMENT INFORMATION

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Cloud &

    

Global

    

Global

    

    

​

    

    

​

    

    

​

 

​

​

Cognitive

​

Business

​

Technology

​

​

​

​

Global

​

Total

 

(Dollars in millions)

​

Software

​

Services

​

Services

​

Systems

​

Financing

​

Segments

 

For the three months ended September 30, 2021:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

​

External revenue

​

$

5,692

​

$

4,427

​

$

6,154

​

$

1,107

​

$

220

​

$

17,601

​

Internal revenue

​

 

764

​

 

53

​

 

317

​

 

176

​

 

153

​

 

1,463

​

Total revenue

​

$

6,456

​

$

4,480

​

$

6,471

​

$

1,283

​

$

373

​

$

19,064

​

Pre-tax income/(loss) from continuing operations

​

$

1,675

​

$

587

​

$

383

​

$

(207)

​

$

206

​

$

2,644

​

Revenue year-to-year change

​

 

0.4

%  

 

11.6

%  

 

(4.5)

%  

 

(14.3)

%  

 

(22.3)

%  

 

(0.7)

%

Pre-tax income year-to-year change

​

 

(8.7)

%  

 

3.0

%  

 

(4.1)

%  

 

nm

​

 

5.1

%  

 

(10.7)

%

Pre-tax income/(loss) margin

​

 

25.9

%  

 

13.1

%  

 

5.9

%  

 

(16.1)

%  

 

55.1

%  

 

13.9

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the three months ended September 30, 2020:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

External revenue

​

$

5,553

​

$

3,965

​

$

6,462

​

$

1,257

​

$

273

​

$

17,510

​

Internal revenue

​

 

875

​

 

49

​

 

312

​

 

240

​

 

208

​

 

1,683

​

Total revenue

​

$

6,428

​

$

4,014

​

$

6,774

​

$

1,497

​

$

480

​

$

19,193

​

Pre-tax income/(loss) from continuing operations

​

$

1,834

​

$

570

​

$

399

​

$

(37)

​

$

196

​

$

2,962

​

Pre-tax income/(loss) margin

​

 

28.5

%

 

14.2

%

 

5.9

%

 

(2.5)

%  

 

40.7

%  

 

15.4

%

nm – not meaningful

​

Reconciliations to IBM as Reported:

​

​

​

​

​

​

​

​

(Dollars in millions)

    

    

​

    

    

​

 

For the three months ended September 30:

​

2021

​

2020

 

Revenue:

 

​

  

 

​

  

​

Total reportable segments

​

$

19,064

​

$

19,193

​

Other — divested businesses

​

 

(3)

​

 

4

​

Other revenue

​

 

20

​

 

46

​

Eliminations of internal transactions

​

 

(1,463)

​

 

(1,683)

​

Total consolidated revenue

​

$

17,618

​

$

17,560

​

​

​

​

​

​

​

​

​

Pre-tax income from continuing operations:

​

 

  

​

 

  

​

Total reportable segments

​

$

2,644

​

$

2,962

​

Amortization of acquired intangible assets

​

 

(475)

​

 

(459)

​

Acquisition-related (charges)/income

​

 

(4)

​

 

(1)

​

Non-operating retirement-related (costs)/income

​

 

(328)

​

 

(291)

​

Separation-related charges

​

​

(277)

​

​

—

​

Elimination of internal transactions

​

 

(57)

​

 

(158)

​

Other — divested businesses

​

 

(10)

​

 

(20)

​

Unallocated corporate amounts

​

 

(175)

​

 

(206)

​

Total pre-tax income from continuing operations

​

$

1,319

​

$

1,827

​

​

SEGMENT INFORMATION

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Cloud &

    

Global

    

Global

    

    

​

    

    

​

    

    

​

 

​

​

Cognitive

​

Business

​

Technology

​

​

​

​

Global

​

Total

 

(Dollars in millions)

​

Software

​

Services

​

Services

​

Systems

​

Financing

​

Segments

 

For the nine months ended September 30, 2021:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

​

External revenue

​

$

17,227

​

$

13,002

​

$

18,866

​

$

4,251

​

$

702

​

$

54,047

​

Internal revenue

​

 

2,322

​

 

166

​

 

956

​

 

606

​

 

581

​

 

4,631

​

Total revenue

​

$

19,549

​

$

13,168

​

$

19,822

​

$

4,857

​

$

1,283

​

$

58,678

​

Pre-tax income/(loss) from continuing operations

​

$

4,822

​

$

1,349

​

$

903

​

$

(33)

​

$

618

​

$

7,659

​

Revenue year-to-year change

​

 

3.0

%  

 

8.5

%  

 

(1.7)

%  

 

(4.9)

%  

 

(14.3)

%  

 

1.4

%

Pre-tax income year-to-year change

​

 

7.8

%  

 

12.1

%  

 

91.9

%  

 

nm

​

 

9.1

%  

 

14.2

%

Pre-tax income/(loss) margin

​

 

24.7

%  

 

10.2

%  

 

4.6

%  

 

(0.7)

%  

 

48.1

%  

 

13.1

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the nine months ended September 30, 2020:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

External revenue

​

$

16,540

​

$

11,992

​

$

19,245

​

$

4,477

​

$

837

​

$

53,090

​

Internal revenue

​

 

2,431

​

 

150

​

 

911

​

 

628

​

 

660

​

 

4,780

​

Total revenue

​

$

18,971

​

$

12,142

​

$

20,155

​

$

5,106

​

$

1,497

​

$

57,870

​

Pre-tax income/(loss) from continuing operations

​

$

4,475

​

$

1,203

​

$

471

​

$

(7)

​

$

566

​

$

6,708

​

Pre-tax income/(loss) margin

​

 

23.6

%

 

9.9

%

 

2.3

%

 

(0.1)

%  

 

37.8

%  

 

11.6

%

nm – not meaningful

​

Reconciliations to IBM as Reported:

​

​

​

​

​

​

​

​

​

(Dollars in millions)

    

    

​

    

    

​

 

For the nine months ended September 30:

​

2021

​

2020

 

Revenue:

 

​

  

 

​

  

​

Total reportable segments

​

$

58,678

​

$

57,870

​

Other — divested businesses

​

 

(2)

​

 

36

​

Other revenue

​

 

47

​

 

127

​

Eliminations of internal transactions

​

 

(4,631)

​

 

(4,780)

​

Total consolidated revenue

​

$

54,093

​

$

53,253

​

​

​

​

​

​

​

​

​

Pre-tax income from continuing operations:

​

 

  

​

 

  

​

Total reportable segments

​

$

7,659

​

$

6,708

​

Amortization of acquired intangible assets

​

 

(1,389)

​

 

(1,404)

​

Acquisition-related (charges)/income

​

 

(37)

​

 

(3)

​

Non-operating retirement-related (costs)/income

​

 

(998)

​

 

(829)

​

Separation-related charges

​

​

(513)

​

​

—

​

Eliminations of internal transactions

​

 

(269)

​

 

(334)

​

Other — divested businesses

​

 

(34)

​

 

(17)

​

Unallocated corporate amounts

​

 

(643)

​

 

(773)

​

Total pre-tax income from continuing operations

​

$

3,776

​

$

3,348

​

​