Segments (Tables)

3 Months Ended

Mar. 31, 2023

Segments

Revenue and Pre-tax Income by Segment

													Total
(Dollars in millions)	Software			Consulting			Infrastructure			Financing			Segments
For the three months ended March 31, 2023:
Revenue	$	5,921		$	4,962		$	3,098		$	196		$	14,177
Pre-tax income from continuing operations	$	1,164		$	382		$	216		$	100		$	1,863
Revenue year-to-year change		2.6	%		2.8	%		(3.7)	%		27.3	%		1.5	%
Pre-tax income year-to-year change		2.7	%		9.6	%		8.5	%		19.6	%		5.5	%
Pre-tax income margin		19.7	%		7.7	%		7.0	%		51.3	%		13.1	%
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
Pre-tax income margin		19.7	%		7.2	%		6.2	%		54.6	%		12.6	%

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:	2023		2022
Revenue:
Total reportable segments	$	14,177	$	13,973
Other‒divested businesses		0		154
Other revenue		75		70
Total consolidated revenue	$	14,252	$	14,197
Pre-tax income/(loss) from continuing operations:
Total reportable segments	$	1,863	$	1,766
Amortization of acquired intangible assets		(392)		(461)
Acquisition-related (charges)/income		(3)		(7)
Non-operating retirement-related (costs)/income		5		(202)
Kyndryl-related impacts		—		(222)	*
Workforce rebalancing charges**		(259)		—
Other‒divested businesses		(4)		(52)
Unallocated corporate amounts and other		(151)		(199)	È
Total pre-tax income from continuing operations	$	1,058	$	623

* Unrealized loss on Kyndryl retained shares. See note 5, “Acquisitions & Divestitures,” for additional information.

** Beginning in the first quarter of 2023, the company updated its measure of segment pre-tax income, consistent with its management system, to no longer allocate workforce rebalancing charges to its segments. Workforce rebalancing charges in the first quarter of 2022 of $5 million were included in the segments.

^È Recast to conform to 2023 presentation.