Segments (Tables)

12 Months Ended

Dec. 31, 2021

Segments

Revenue and Pre-tax Income by Segment

($ in millions)
													Total
For the year ended December 31:	Software			Consulting			Infrastructure			Financing			Segments
2021
Revenue	$	24,141		$	17,844		$	14,188		$	774		$	56,946
Pre-tax income from continuing operations		4,722			1,449			2,025			441			8,637
Revenue year-to-year change		5.3	%		9.8	%		(2.4)	%		(20.6)	%		4.1	%
Pre-tax income year-to-year change		41.3	%		40.1	%		22.4	%		(1.8)	%		33.3	%
Pre-tax income margin		19.6	%		8.1	%		14.3	%		57.0	%		15.2	%
2020*
Revenue	$	22,927		$	16,257		$	14,533		$	975		$	54,691
Pre-tax income from continuing operations**		3,341			1,034			1,654			449			6,479
Revenue year-to-year change		2.3	%		(4.0)	%		(7.9)	%		(19.8)	%		(2.9)	%
Pre-tax income year-to-year change		(33.5)	%		(23.0)	%		(33.3)	%		(31.2)	%		(31.8)	%
Pre-tax income margin		14.6	%		6.4	%		11.4	%		46.1	%		11.8	%
2019*
Revenue	$	22,408		$	16,939		$	15,774		$	1,215		$	56,336
Pre-tax income from continuing operations		5,025			1,344			2,481			652			9,502

*  Recast to conform to 2021 presentation.

** Includes the impact of a $1.5 billion pre-tax charge for structural actions in the fourth quarter of 2020. The impact by segment was as follows: Software ($0.7 billion), Consulting ($0.4 billion), Infrastructure ($0.4 billion). The impact to Financing was immaterial.

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

Reconciliations of IBM as Reported

($ in millions)
For the year ended December 31:	2021		2020		*	2019		*
Revenue
Total reportable segments	$	56,946	$	54,691		$	56,336
Other—divested businesses		70		101			1,010
Other revenue		335		387			368
Total revenue	$	57,350	$	55,179		$	57,714
		0		0

($ in millions)
For the year ended December 31:	2021		2020		*	2019		*
Pre-tax income from continuing operations
Total reportable segments	$	8,637	$	6,479	**	$	9,502
Amortization of acquired intangible assets		(1,838)		(1,832)			(1,271)
Acquisition-related charges		(43)		(13)			(423)
Non-operating retirement-related (costs)/income		(1,282)		(1,073)			(576)
Kyndryl-related impacts		118		—			—
Elimination of internal transactions		(7)		(28)			(21)
Other—divested businesses		25		12			580
Unallocated corporate amounts and other		(774)		(973)			(586)
Total pre-tax income from continuing operations	$	4,837	$	2,572	**	$	7,206

*  Recast to conform to 2021 presentation.

** Includes the impact of a $1.5 billion pre-tax charge for structural actions in the fourth quarter of 2020.

Assets and Other Items by segment

($ in millions)
									Total
For the year ended December 31:	Software		Consulting		Infrastructure		Financing		Segments
2021
Assets	$	59,336	$	11,914	$	11,766	$	16,880	$	99,896
Depreciation/amortization of intangibles**		1,204		250		1,399		49		2,902
Capital expenditures/investments in intangibles		565		55		792		33		1,444
Interest income		—		—		—		628		628
Interest expense		—		—		—		129		129
2020*
Assets	$	58,558	$	10,548	$	12,378	$	24,974	$	106,458
Depreciation/amortization of intangibles**		1,237		207		1,419		120		2,983
Capital expenditures/investments in intangibles		548		26		1,093		41		1,709
Interest income		—		—		—		834		834
Interest expense		—		—		—		307		307
2019*
Assets	$	58,230	$	10,421	$	12,002	$	29,460	$	110,113
Depreciation/amortization of intangibles**		676		179		1,348		186		2,389
Capital expenditures/investments in intangibles		517		45		612		57		1,230
Interest income		—		—		—		1,133		1,133
Interest expense		—		—		—		512		512

* Recast to conform to 2021 presentation.

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

Reconciliation of assets to IBM as reported

($ in millions)
At December 31:	2021		2020		*	2019		*
Assets
Total reportable segments	$	99,896	$	106,458		$	110,113
Elimination of internal transactions		(1,608)		(4,686)			(4,317)
Other—divested businesses		193		254			1,942
Unallocated amounts
Cash and marketable securities		6,222		12,463			7,271
Notes and accounts receivable		1,622		1,655			1,601
Deferred tax assets		7,158		8,175			4,917
Plant, other property and equipment		2,196		2,449			2,488
Operating right-of-use assets		1,945		2,368			2,531
Pension assets		9,848		7,557			6,819
Other		4,530		3,514			3,184
Total assets of discontinued operations**		—		15,764			15,638
Total IBM consolidated assets	$	132,001	$	155,971		$	152,186

* Recast to conform to 2021 presentation.

** Refer to note C, “Separation of Kyndryl,” for additional information.

Geographic Information

Revenue^È

($ in millions)
For the year ended December 31:	2021		2020		*	2019		*
United States	$	22,893	$	22,258		$	23,389
Japan		5,648		5,680			5,755
Other countries		28,810		27,241			28,570
Total revenue	$	57,350	$	55,179		$	57,714

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

*  Recast to conform to 2021 presentation.

Plant and Other Property–Net

($ in millions)
At December 31:	2021		2020		*	2019		*
United States	$	3,375	$	3,452		$	3,513
Other countries		2,293		2,656			2,273
Total	$	5,668	$	6,108		$	5,785

*  Recast to conform to 2021 presentation.

Operating Right-of-Use Assets–Net

($ in millions)
At December 31:	2021		2020		*	2019		*
United States	$	1,148	$	1,165		$	1,305
Japan		398		532			599
Other countries		1,676		1,870			1,947
Total	$	3,222	$	3,566		$	3,850

*  Recast to conform to 2021 presentation.

Revenue by Classes of Similar Products or Services

($ in millions)
For the year ended December 31:	2021		2020		*	2019		*
Software
Software	$	20,098	$	19,046		$	18,574
Services		3,934		3,770			3,670
Systems		109		110			165
Consulting
Services	$	17,563	$	15,986		$	16,663
Software		173		183			160
Systems		108		89			116
Infrastructure
Maintenance	$	4,743	$	4,804		$	5,171
Servers		3,363		3,549			3,829
Services		2,616		2,656			2,927
Storage		1,908		1,813			1,936
Software		1,426		1,563			1,725
Used Equipment Sales**		131		149			186
Financing
Financing	$	628	$	834		$	1,120
Used Equipment Sales		145		140			95

*  Recast to conform to 2021 presentation.

** Represents Global Asset Recovery Service transferred from Financing segment.