| Segments |
7. Segments: The tables below reflect the continuing operations results of the company’s segments consistent with the management and measurement system utilized within the company. Performance measurement is based on operating pre-tax income from continuing operations. The segments represent components of the company for which separate financial information is available that is utilized on a regular basis by the chief operating decision maker (the chief executive officer) in determining how to allocate resources and evaluate performance.
SEGMENT INFORMATION
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Technology
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Global
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Services &
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Cognitive
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Business
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Cloud
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Global
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Total
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(Dollars in millions)
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Solutions
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Services
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Platforms
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Systems
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Financing
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Segments
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For the three months ended March 31, 2018:
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External revenue
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$
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4,299
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$
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4,174
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$
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8,625
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$
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1,500
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$
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405
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$
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19,003
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Internal revenue
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780
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89
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141
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153
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429
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1,592
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Total revenue
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$
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5,079
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$
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4,263
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$
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8,766
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$
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1,653
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$
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834
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$
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20,595
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Pre-tax income/(loss) from continuing operations
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$
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1,333
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$
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145
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$
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436
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$
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(203
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)
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$
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377
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$
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2,088
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Revenue year-to-year change
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6.3
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%
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4.2
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%
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4.7
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%
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5.8
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%
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8.6
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%
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5.2
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%
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Pre-tax income year-to-year change
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5.1
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%
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(48.6
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)%
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(35.2
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)%
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7.9
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%
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21.3
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%
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(11.0
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)%
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Pre-tax income margin
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26.2
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%
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3.4
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%
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5.0
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%
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(12.3
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)%
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45.1
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%
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10.1
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%
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For the three months ended March 31, 2017:
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External revenue
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$
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4,062
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$
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4,006
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$
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8,216
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$
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1,395
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$
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405
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$
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18,083
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Internal revenue
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716
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86
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160
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167
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363
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1,492
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Total revenue
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$
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4,778
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$
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4,092
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$
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8,376
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$
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1,562
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$
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768
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$
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19,576
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Pre-tax income/(loss) from continuing operations *
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$
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1,268
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$
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281
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$
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673
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$
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(188
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)
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$
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311
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$
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2,346
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Pre-tax income/(loss) margin *
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26.5
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%
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6.9
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%
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8.0
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%
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(12.0
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)%
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40.4
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%
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12.0
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%
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*Recast to reflect adoption of the FASB guidance on presentation of net benefit cost.
Reconciliations to IBM as Reported:
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(Dollars in millions)
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For the three months ended March 31:
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2018
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2017
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Revenue:
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Total reportable segments
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$
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20,595
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$
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19,576
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Eliminations of internal transactions
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(1,592
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)
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(1,492
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)
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Other revenue
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69
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71
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Total consolidated revenue
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$
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19,072
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$
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18,155
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Pre-tax income from continuing operations:
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Total reportable segments
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$
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2,088
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$
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2,346
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*
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Amortization of acquired intangible assets
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(203
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)
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(249
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)
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Acquisition-related (charges)/income
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0
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(13
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)
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Non-operating retirement-related (costs)/income
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(402
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)
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(347
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)*
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Eliminations of internal transactions
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(218
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)
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(227
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)
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Unallocated corporate amounts
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(130
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)
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(87
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)
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Total pre-tax income from continuing operations
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$
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1,136
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$
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1,424
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*Recast to reflect adoption of the FASB guidance on presentation of net benefit cost.
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