Segments (Tables)

3 Months Ended

Mar. 31, 2022

Segments

Revenue and Pre-tax Income by Segment

													Total
(Dollars in millions)	Software			Consulting			Infrastructure			Financing			Segments
For the three months ended March 31, 2022:
Revenue	$	5,772		$	4,829		$	3,219		$	154		$	13,973
Pre-tax income from continuing operations	$	1,134		$	348		$	199		$	84		$	1,766
Revenue year-to-year change		12.3	%		13.3	%		(2.3)	%		(26.2)	%		8.3	%
Pre-tax income year-to-year change		72.3	%		25.8	%		(31.7)	%		(14.3)	%		33.3	%
Pre-tax income margin		19.7	%		7.2	%		6.2	%		54.6	%		12.6	%
For the three months ended March 31, 2021*:
Revenue	$	5,138		$	4,262		$	3,293		$	208		$	12,902
Pre-tax income from continuing operations	$	658		$	277		$	292		$	98		$	1,325
Pre-tax income margin		12.8	%		6.5	%		8.9	%		47.0	%		10.3	%

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

Reconciliations to IBM as Reported:

(Dollars in millions)
For the three months ended March 31:	2022		2021*
Revenue:
Total reportable segments	$	13,973	$	12,902
Other ‒ divested businesses		154		197
Other revenue		70		87
Total consolidated revenue	$	14,197	$	13,187
Pre-tax income from continuing operations:
Total reportable segments	$	1,766	$	1,325
Amortization of acquired intangible assets		(461)		(447)
Acquisition-related (charges)/income		(7)		(16)
Non-operating retirement-related (costs)/income		(202)		(332)
Kyndryl-related impacts**		(222)		—
Eliminations of internal transactions		(11)		(9)
Other ‒ divested businesses		(52)		(15)
Unallocated corporate amounts and other		(188)		(262)
Total pre-tax income from continuing operations	$	623	$	244

* Recast to conform to current year presentation.

** Refer to note 8, “Financial Assets & Liabilities,” for additional information.