Segments (Tables)

12 Months Ended

Dec. 31, 2022

Segments

Revenue and Pre-tax Income by Segment

($ in millions)
													Total
For the year ended December 31:	Software			Consulting			Infrastructure			Financing			Segments
2022
Revenue	$	25,037		$	19,107		$	15,288		$	645		$	60,077
Pre-tax income from continuing operations		6,162			1,677			2,262			340			10,441
Revenue year-to-year change		6.9	%		7.1	%		7.8	%		(16.6)	%		6.8	%
Pre-tax income year-to-year change		27.1	%		15.7	%		11.7	%		(22.9)	%		19.1	%
Pre-tax income margin		24.6	%		8.8	%		14.8	%		52.6	%		17.4	%
2021*
Revenue	$	23,426		$	17,844		$	14,188		$	774		$	56,231
Pre-tax income from continuing operations		4,849			1,449			2,025			441			8,765
Revenue year-to-year change		5.9	%		9.8	%		(2.4)	%		(20.6)	%		4.3	%
Pre-tax income year-to-year change		41.7	%		40.1	%		22.4	%		(1.8)	%		33.6	%
Pre-tax income margin		20.7	%		8.1	%		14.3	%		57.0	%		15.6	%
2020*
Revenue	$	22,124		$	16,257		$	14,533		$	975		$	53,888
Pre-tax income from continuing operations**		3,423			1,034			1,654			449			6,561

*  Recast to reflect segment change.

** 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 ($0.6 billion), Consulting ($0.4 billion) and 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:	2022		2021		(1)	2020		(1)
Revenue
Total reportable segments	$	60,077	$	56,231		$	53,888
Other—divested businesses		318		785			904
Other revenue		135		335			387
Total revenue	$	60,530	$	57,350		$	55,179
		0		0

($ in millions)
For the year ended December 31:	2022			2021		(1)	2020		(1)
Pre-tax income from continuing operations
Total reportable segments	$	10,441		$	8,765		$	6,561	(2)
Amortization of acquired intangible assets		(1,747)			(1,838)			(1,832)
Acquisition-related charges		(18)			(43)			(13)
Non-operating retirement-related (costs)/income		(6,548)	(3)		(1,282)			(1,073)
Kyndryl-related impacts (4)		(351)			118			—
Elimination of internal transactions		(10)			(7)			(28)
Other—divested businesses		91	(5)		(102)			(70)
Unallocated corporate amounts and other		(702)			(774)			(973)
Total pre-tax income from continuing operations	$	1,156		$	4,837		$	2,572

⁽¹⁾ Recast to reflect segment change.

⁽²⁾ Includes the impact of a $1.5 billion pre-tax charge for structural actions in the fourth quarter of 2020.

⁽³⁾ Includes a one-time, non-cash, pre-tax pension settlement charge of $5.9 billion. See note V, “Retirement-Related Benefits,” for additional information.

⁽⁴⁾ Refer to note J, “Financial Assets & Liabilities,” for additional information.

⁽⁵⁾ Includes a gain on the sale of the company's healthcare software assets. Refer to note F, "Acquisitions & Divestitures," for additional information.

Assets and Other Items by segment

($ in millions)
										Total
For the year ended December 31:	Software		*	Consulting		Infrastructure		Financing		Segments
2022
Assets	$	57,186		$	13,481	$	12,243	$	15,757	$	98,667
Depreciation/amortization of intangibles**		968			289		1,403		14		2,674
Capital expenditures/investments in intangibles		446			33		853		27		1,359
Interest income		—			—		—		582		582
Interest expense		—			—		—		175		175
2021
Assets	$	58,420		$	11,914	$	11,766	$	16,880	$	98,980
Depreciation/amortization of intangibles**		983			250		1,399		49		2,681
Capital expenditures/investments in intangibles		559			55		792		33		1,439
Interest income		—			—		—		628		628
Interest expense		—			—		—		129		129
2020
Assets	$	57,436		$	10,548	$	12,378	$	24,974	$	105,336
Depreciation/amortization of intangibles**		1,007			207		1,419		120		2,753
Capital expenditures/investments in intangibles		538			26		1,093		41		1,699
Interest income		—			—		—		834		834
Interest expense		—			—		—		307		307

* Prior-year periods were recast to reflect segment change.

** 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:	2022		2021		*	2020		*
Assets
Total reportable segments	$	98,667	$	98,980		$	105,336
Elimination of internal transactions		(1,062)		(1,608)			(4,686)
Other—divested businesses		100		1,109			1,376
Unallocated amounts
Cash and marketable securities		8,138		6,222			12,463
Notes and accounts receivable		281		1,622			1,655
Deferred tax assets		6,078		7,158			8,175
Plant, other property and equipment		1,760		2,196			2,449
Operating right-of-use assets		1,586		1,945			2,368
Pension assets		8,236		9,848			7,557
Other		3,459		4,530			3,514
Total assets of discontinued operations		—		—			15,764
Total IBM consolidated assets	$	127,243	$	132,001		$	155,971

* Recast to reflect segment change.

Geographic Information

Revenue*

($ in millions)
For the year ended December 31:	2022		2021		2020
United States	$	25,098	$	22,893	$	22,258
Japan		5,453		5,648		5,680
Other countries		29,980		28,810		27,241
Total revenue	$	60,530	$	57,350	$	55,179

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

Plant and Other Property–Net

($ in millions)
At December 31:	2022		2021		2020
United States	$	3,209	$	3,375	$	3,452
Other countries		2,100		2,293		2,656
Total*	$	5,308	$	5,668	$	6,108

* Balances do not include rental machines.

Operating Right-of-Use Assets–Net

($ in millions)
At December 31:	2022		2021		2020
United States	$	1,074	$	1,148	$	1,165
Japan		259		398		532
Other countries		1,545		1,676		1,870
Total	$	2,878	$	3,222	$	3,566

Revenue by Classes of Similar Products or Services

($ in millions)
For the year ended December 31:	2022		2021			2020
Software *
Software	$	21,374	$	19,845		$	18,771
Services		3,575		3,485			3,253
Systems		88		96			100
Consulting
Services	$	18,857	$	17,563		$	15,986
Software		170		173			183
Systems		80		108			89
Infrastructure
Maintenance	$	4,590	$	4,743		$	4,804
Servers		4,471		3,483	**		3,686	**
Services		2,653		2,616			2,656
Storage		1,989		1,919	**		1,824	**
Software		1,585		1,426			1,563
Financing
Financing	$	582	$	628		$	834
Used equipment sales	$	64	$	145		$	140

*  Prior-year periods were recast to reflect segment change.

** Recast to conform to 2022 presentation to present used equipment sales in servers and storage.