| Segments |
4. Segments: 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. Performance measurement is based on pre-tax income from continuing operations. These results are used, in part, by the chief operating decision maker, both in evaluating the performance of, and in allocating resources to, each of the segments. SEGMENT INFORMATION | | | | | | | | | | | | | | | | | | | | | | Cloud & | | Global | | Global | | | | | | | | | | | | | Cognitive | | Business | | Technology | | | | | Global | | Total | | (Dollars in millions) | | Software | | Services | | Services | | Systems | | Financing | | Segments | | For the three months ended June 30, 2021: | | | | | | | | | | | | | | | | | | | | External revenue | | $ | 6,098 | | $ | 4,341 | | $ | 6,342 | | $ | 1,717 | | $ | 242 | | $ | 18,740 | | Internal revenue | | | 726 | | | 58 | | | 326 | | | 241 | | | 260 | | | 1,611 | | Total revenue | | $ | 6,824 | | $ | 4,399 | | $ | 6,668 | | $ | 1,958 | | $ | 502 | | $ | 20,351 | | Pre-tax income from continuing operations | | $ | 1,720 | | $ | 371 | | $ | 381 | | $ | 176 | | $ | 246 | | $ | 2,894 | | Revenue year-to-year change | | | 5.1 | % | | 11.5 | % | | 0.7 | % | | (6.4) | % | | (0.7) | % | | 3.5 | % | Pre-tax income year-to-year change | | | 0.7 | % | | 2.5 | % | | 52.3 | % | | (28.8) | % | | 39.3 | % | | 5.5 | % | Pre-tax income margin | | | 25.2 | % | | 8.4 | % | | 5.7 | % | | 9.0 | % | | 48.9 | % | | 14.2 | % | | | | | | | | | | | | | | | | | | | | | For the three months ended June 30, 2020: | | | | | | | | | | | | | | | | | | | | External revenue | | $ | 5,748 | | $ | 3,890 | | $ | 6,316 | | $ | 1,852 | | $ | 265 | | $ | 18,072 | | Internal revenue | | | 743 | | | 55 | | | 304 | | | 240 | | | 241 | | | 1,582 | | Total revenue | | $ | 6,491 | | $ | 3,945 | | $ | 6,621 | | $ | 2,092 | | $ | 506 | | $ | 19,655 | | Pre-tax income from continuing operations | | $ | 1,708 | | $ | 362 | | $ | 250 | | $ | 248 | | $ | 176 | | $ | 2,744 | | Pre-tax income margin | | | 26.3 | % | | 9.2 | % | | 3.8 | % | | 11.8 | % | | 34.9 | % | | 14.0 | % |
Reconciliations to IBM as Reported: | | | | | | | | (Dollars in millions) | | | | | | | | For the three months ended June 30: | | 2021 | | 2020 | | Revenue: | | | | | | | | Total reportable segments | | $ | 20,351 | | $ | 19,655 | | Other — divested businesses | | | 0 | | | 13 | | Other revenue | | | 5 | | | 37 | | Eliminations of internal transactions | | | (1,611) | | | (1,582) | | Total consolidated revenue | | $ | 18,745 | | $ | 18,123 | | | | | | | | | | Pre-tax income from continuing operations: | | | | | | | | Total reportable segments | | $ | 2,894 | | $ | 2,744 | | Amortization of acquired intangible assets | | | (462) | | | (472) | | Acquisition-related (charges)/income | | | (18) | | | (1) | | Non-operating retirement-related (costs)/income | | | (328) | | | (273) | | Separation-related charges | | | (175) | | | — | | Elimination of internal transactions | | | (139) | | | (121) | | Other — divested businesses | | | (15) | | | (22) | | Unallocated corporate amounts | | | (205) | | | (283) | | Total pre-tax income from continuing operations | | $ | 1,552 | | $ | 1,571 | |
SEGMENT INFORMATION | | | | | | | | | | | | | | | | | | | | | | Cloud & | | Global | | Global | | | | | | | | | | | | | Cognitive | | Business | | Technology | | | | | Global | | Total | | (Dollars in millions) | | Software | | Services | | Services | | Systems | | Financing | | Segments | | For the six months ended June 30, 2021: | | | | | | | | | | | | | | | | | | | | External revenue | | $ | 11,534 | | $ | 8,575 | | $ | 12,712 | | $ | 3,144 | | $ | 482 | | $ | 36,447 | | Internal revenue | | | 1,558 | | | 113 | | | 639 | | | 430 | | | 428 | | | 3,168 | | Total revenue | | $ | 13,093 | | $ | 8,688 | | $ | 13,351 | | $ | 3,574 | | $ | 910 | | $ | 39,615 | | Pre-tax income from continuing operations | | $ | 3,147 | | $ | 761 | | $ | 520 | | $ | 174 | | $ | 412 | | $ | 5,015 | | Revenue year-to-year change | | | 4.4 | % | | 6.9 | % | | (0.2) | % | | (1.0) | % | | (10.5) | % | | 2.4 | % | Pre-tax income year-to-year change | | | 19.2 | % | | 20.3 | % | | 624.6 | % | | 466.3 | % | | 11.3 | % | | 33.9 | % | Pre-tax income margin | | | 24.0 | % | | 8.8 | % | | 3.9 | % | | 4.9 | % | | 45.3 | % | | 12.7 | % | | | | | | | | | | | | | | | | | | | | | For the six months ended June 30, 2020: | | | | | | | | | | | | | | | | | | | | External revenue | | $ | 10,987 | | $ | 8,027 | | $ | 12,783 | | $ | 3,220 | | $ | 564 | | $ | 35,581 | | Internal revenue | | | 1,556 | | | 101 | | | 599 | | | 388 | | | 453 | | | 3,096 | | Total revenue | | $ | 12,543 | | $ | 8,128 | | $ | 13,382 | | $ | 3,608 | | $ | 1,017 | | $ | 38,677 | | Pre-tax income from continuing operations | | $ | 2,641 | | $ | 633 | | $ | 72 | | $ | 31 | | $ | 370 | | $ | 3,747 | | Pre-tax income margin | | | 21.1 | % | | 7.8 | % | | 0.5 | % | | 0.9 | % | | 36.4 | % | | 9.7 | % |
Reconciliations to IBM as Reported: | | | | | | | | (Dollars in millions) | | | | | | | | For the six months ended June 30: | | 2021 | | 2020 | | Revenue: | | | | | | | | Total reportable segments | | $ | 39,615 | | $ | 38,677 | | Other — divested businesses | | | 1 | | | 32 | | Other revenue | | | 27 | | | 81 | | Eliminations of internal transactions | | | (3,168) | | | (3,096) | | Total consolidated revenue | | $ | 36,474 | | $ | 35,694 | | | | | | | | | | Pre-tax income from continuing operations: | | | | | | | | Total reportable segments | | $ | 5,015 | | $ | 3,747 | | Amortization of acquired intangible assets | | | (914) | | | (945) | | Acquisition-related (charges)/income | | | (34) | | | (2) | | Non-operating retirement-related (costs)/income | | | (670) | | | (538) | | Separation-related charges | | | (236) | | | — | | Eliminations of internal transactions | | | (212) | | | (176) | | Other — divested businesses | | | (24) | | | 3 | | Unallocated corporate amounts | | | (468) | | | (568) | | Total pre-tax income from continuing operations | | $ | 2,457 | | $ | 1,522 | |
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