| 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 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 | % |
| | | | | | | | | | | | | | | | | | | | | | 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 | % |
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| 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 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 | |
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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