In January 2022, IBM announced the divestiture of its healthcare software assets which closed in the second quarter of 2022. Refer to note 6, “Acquisitions & Divestitures,” for additional information. The company re-aligned its management structure to manage these assets outside of the Software segment prior to the divestiture. Beginning in the first quarter of 2022, the financial results of these assets are presented in Other–divested businesses. In the fourth quarter of 2021, immediately prior to the separation of Kyndryl, the company made a number of changes to its organizational structure and management system to align the company’s operating model to its platform-centric approach to hybrid cloud and AI. With these changes, the company revised its reportable segments, but did not impact its Consolidated Financial Statements.

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, and the prior-year periods have been recast to reflect the company’s segment changes in the first quarter of 2022 and the fourth quarter of 2021 described above. Performance measurement is based on pre-tax income from continuing operations. These results are used by the chief operating decision maker, both in evaluating the performance of, and in allocating resources to, each of the segments.

*	Recast to conform to current year presentation.

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

+ Includes a gain from the sale of the company’s healthcare software assets. Refer to note 6, “Acquisitions & Divestitures.”

SEGMENT INFORMATION


													Total
(Dollars in millions)	Software			Consulting			Infrastructure			Financing			Segments
For the six months ended June 30, 2022:
Revenue	$	11,938		$	9,637		$	7,453		$	300		$	29,328
Pre-tax income from continuing operations	$	2,509		$	691		$	956		$	186		$	4,342
Revenue year-to-year change		9.2	%		11.5	%		8.8	%		(28.0)	%		9.3	%
Pre-tax income year-to-year change		46.2	%		26.3	%		22.5	%		(18.9)	%		32.6	%
Pre-tax income margin		21.0	%		7.2	%		12.8	%		62.0	%		14.8	%

*For the six months ended June 30, 2021:**
Revenue	$	10,933		$	8,641		$	6,853		$	417		$	26,843
Pre-tax income from continuing operations	$	1,717		$	547		$	780		$	229		$	3,274
Pre-tax income margin		15.7	%		6.3	%		11.4	%		55.0	%		12.2	%

Reconciliations to IBM as Reported:


(Dollars in millions)
For the six months ended June 30:	2022			2021*
Revenue:
Total reportable segments	$	29,328		$	26,843
Other‒divested businesses		316			394
Other revenue		88			167
Total consolidated revenue	$	29,732		$	27,405

Pre-tax income from continuing operations:
Total reportable segments	$	4,342		$	3,274
Amortization of acquired intangible assets		(919)			(903)
Acquisition-related charges		(9)			(34)
Non-operating retirement-related (costs)/income		(394)			(649)
Kyndryl-related impacts**		(367)			—
Eliminations of internal transactions		(15)			(4)
Other‒divested businesses		109	+		(65)
Unallocated corporate amounts		(403)			(464)
Total pre-tax income from continuing operations	$	2,345		$	1,155

*	Recast to conform to current year presentation.

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

+ Includes a gain from the sale of the company’s healthcare software assets. Refer to note 6, “Acquisitions & Divestitures.”