| Revenue and Pre-tax Income by Segment |
| | | | | | | | | | | | | | | | | | | | | | Cloud & | | Global | | Global | | | | | | | | | | | | | Cognitive | | Business | | Technology | | | | | Global | | Total | | (Dollars in millions) | | Software | | Services | | Services | | Systems | | Financing | | Segments | | For the three months ended September 30, 2019: | | | | | | | | | | | | | | | | | | | | External revenue | | $ | 5,280 | | $ | 4,117 | | $ | 6,700 | | $ | 1,481 | | $ | 343 | | $ | 17,921 | | Internal revenue | | | 686 | | | 70 | | | 287 | | | 195 | | | 302 | | | 1,541 | | Total revenue | | $ | 5,966 | | $ | 4,187 | | $ | 6,988 | | $ | 1,676 | | $ | 645 | | $ | 19,462 | | Pre-tax income/(loss) from continuing operations | | $ | 1,283 | | $ | 573 | | $ | 490 | | $ | 39 | | $ | 275 | | $ | 2,661 | | Revenue year-to-year change | | | 4.0 | % | | 0.8 | % | | (5.3) | % | | (12.6) | % | | (11.2) | % | | (2.3) | % | Pre-tax income year-to-year change | | | (37.4) | % | | 1.2 | % | | (19.2) | % | | (81.3) | % | | (10.8) | % | | (28.9) | % | Pre-tax income/(loss) margin | | | 21.5 | % | | 13.7 | % | | 7.0 | % | | 2.3 | % | | 42.6 | % | | 13.7 | % | | | | | | | | | | | | | | | | | | | | | For the three months ended September 30, 2018: | | | | | | | | | | | | | | | | | | | | External revenue | | $ | 4,962 | * | $ | 4,076 | * | $ | 7,101 | * | $ | 1,736 | | $ | 388 | | $ | 18,262 | * | Internal revenue | | | 777 | * | | 77 | | | 279 | * | | 181 | | | 338 | | | 1,652 | * | Total revenue | | $ | 5,738 | * | $ | 4,153 | * | $ | 7,380 | * | $ | 1,917 | | $ | 726 | | $ | 19,914 | * | Pre-tax income/(loss) from continuing operations | | $ | 2,050 | * | $ | 566 | * | $ | 607 | * | $ | 209 | | $ | 308 | | $ | 3,741 | * | Pre-tax income/(loss) margin | | | 35.7 | %* | | 13.6 | %* | | 8.2 | %* | | 10.9 | % | | 42.5 | % | | 18.8 | %* |
* Recast to conform to 2019 presentation. | | | | | | | | | | | | | | | | | | | | | | Cloud & | | Global | | Global | | | | | | | | | | | | | Cognitive | | Business | | Technology | | | | | Global | | Total | | (Dollars in millions) | | Software | | Services | | Services | | Systems | | Financing | | Segments | | For the nine months ended September 30, 2019: | | | | | | | | | | | | | | | | | | | | External revenue | | $ | 15,962 | | $ | 12,391 | | $ | 20,412 | | $ | 4,562 | | $ | 1,100 | | $ | 54,426 | | Internal revenue | | | 2,135 | | | 213 | | | 879 | | | 528 | | | 884 | | | 4,638 | | Total revenue | | $ | 18,097 | | $ | 12,604 | | $ | 21,291 | | $ | 5,091 | | $ | 1,983 | | $ | 59,065 | | Pre-tax income/(loss) from continuing operations | | $ | 5,052 | | $ | 1,188 | | $ | 1,000 | | $ | (101) | | $ | 803 | | $ | 7,941 | | Revenue year-to-year change | | | 0.2 | % | | 0.2 | % | | (5.1) | % | | (15.0) | % | | (18.3) | % | | (3.9) | % | Pre-tax income year-to-year change | | | (12.3) | % | | 11.7 | % | | (11.0) | % | | (128.8) | % | | (23.0) | % | | (15.0) | % | Pre-tax income/(loss) margin | | | 27.9 | % | | 9.4 | % | | 4.7 | % | | (2.0) | % | | 40.5 | % | | 13.4 | % | | | | | | | | | | | | | | | | | | | | | For the nine months ended September 30, 2018: | | | | | | | | | | | | | | | | | | | | External revenue | | $ | 15,548 | * | $ | 12,326 | * | $ | 21,846 | * | $ | 5,412 | | $ | 1,188 | | $ | 56,319 | * | Internal revenue | | | 2,518 | * | | 249 | | | 589 | * | | 576 | | | 1,240 | | | 5,173 | * | Total revenue | | $ | 18,066 | * | $ | 12,575 | * | $ | 22,435 | * | $ | 5,989 | | $ | 2,428 | | $ | 61,492 | * | Pre-tax income/(loss) from continuing operations | | $ | 5,760 | * | $ | 1,063 | * | $ | 1,124 | * | $ | 352 | | $ | 1,042 | | $ | 9,342 | * | Pre-tax income/(loss) margin | | | 31.9 | %* | | 8.5 | %* | | 5.0 | %* | | 5.9 | % | | 42.9 | % | | 15.2 | %* |
* Recast to conform to 2019 presentation.
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| Reconciliation of segment revenue and pre-tax income to IBM as reported |
| | | | | | | | (Dollars in millions) | | | | | | | | For the three months ended September 30: | | 2019 | | 2018 | | Revenue: | | | | | | | | Total reportable segments | | $ | 19,462 | | $ | 19,914 | * | Other — divested businesses | | | 48 | | | 432 | * | Other revenue | | | 59 | | | 62 | | Eliminations of internal transactions | | | (1,541) | | | (1,652) | * | Total consolidated revenue | | $ | 18,028 | | $ | 18,756 | | | | | | | | | | Pre-tax income from continuing operations: | | | | | | | | Total reportable segments | | $ | 2,661 | | $ | 3,741 | * | Amortization of acquired intangible assets | | | (473) | | | (207) | | Acquisition-related (charges)/income | | | (255) | | | (2) | | Non-operating retirement-related (costs)/income | | | (145) | | | (389) | | Eliminations of internal transactions | | | (84) | | | (118) | * | Other — divested businesses | | | (25) | | | 62 | * | Unallocated corporate amounts | | | (157) | | | (91) | | Total pre-tax income from continuing operations | | $ | 1,522 | | $ | 2,996 | |
* Recast to conform to 2019 presentation. | | | | | | | | (Dollars in millions) | | | | | | | | For the nine months ended September 30: | | 2019 | | 2018 | | Revenue: | | | | | | | | Total reportable segments | | $ | 59,065 | | $ | 61,492 | * | Other — divested businesses | | | 754 | | | 1,335 | * | Other revenue | | | 190 | | | 176 | | Eliminations of internal transactions | | | (4,638) | | | (5,173) | * | Total consolidated revenue | | $ | 55,370 | | $ | 57,830 | | | | | | | | | | Pre-tax income from continuing operations: | | | | | | | | Total reportable segments | | $ | 7,941 | | $ | 9,342 | * | Amortization of acquired intangible assets | | | (816) | | | (613) | | Acquisition-related (charges)/income | | | (396) | | | (3) | | Non-operating retirement-related (costs)/income | | | (419) | | | (1,185) | | Eliminations of internal transactions | | | (233) | | | (615) | * | Other — divested businesses | | | 477 | | | 265 | * | Unallocated corporate amounts | | | (380) | | | (283) | | Total pre-tax income from continuing operations | | $ | 6,173 | | $ | 6,908 | |
* Recast to conform to 2019 presentation.
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