Segments (Tables)

12 Months Ended

Dec. 31, 2021

Revenue and Pre-tax Income by Segment


($ in millions)
														Total
For the year ended December 31:		Software			Consulting			Infrastructure			Financing			Segments
2021
Revenue		$	24,141		$	17,844		$	14,188		$	774		$	56,946
Pre-tax income from continuing operations			4,722			1,449			2,025			441			8,637
Revenue year-to-year change			5.3	%		9.8	%		(2.4)	%		(20.6)	%		4.1	%
Pre-tax income year-to-year change			41.3	%		40.1	%		22.4	%		(1.8)	%		33.3	%
Pre-tax income margin			19.6	%		8.1	%		14.3	%		57.0	%		15.2	%
2020*
Revenue		$	22,927		$	16,257		$	14,533		$	975		$	54,691
Pre-tax income from continuing operations**			3,341			1,034			1,654			449			6,479
Revenue year-to-year change			2.3	%		(4.0)	%		(7.9)	%		(19.8)	%		(2.9)	%
Pre-tax income year-to-year change			(33.5)	%		(23.0)	%		(33.3)	%		(31.2)	%		(31.8)	%
Pre-tax income margin			14.6	%		6.4	%		11.4	%		46.1	%		11.8	%
2019*
Revenue		$	22,408		$	16,939		$	15,774		$	1,215		$	56,336
Pre-tax income from continuing operations			5,025			1,344			2,481			652			9,502

*	Recast to conform to 2021 presentation.

**	Includes the impact of a $1.5 billion pre-tax charge for structural actions in the fourth quarter of 2020. The impact by segment was as follows: Software ($0.7 billion), Consulting ($0.4 billion), Infrastructure ($0.4 billion). The impact to Financing was immaterial.

Reconciliation of segment revenue and pre-tax income to IBM as reported

Reconciliations of IBM as Reported


($ in millions)
For the year ended December 31:		2021			2020		*	2019		*
Revenue
Total reportable segments		$	56,946		$	54,691		$	56,336
Other—divested businesses			70			101			1,010
Other revenue			335			387			368
Total revenue		$	57,350		$	55,179		$	57,714
			0			0


($ in millions)
For the year ended December 31:		2021			2020		*	2019		*
Pre-tax income from continuing operations
Total reportable segments		$	8,637		$	6,479	**	$	9,502
Amortization of acquired intangible assets			(1,838)			(1,832)			(1,271)
Acquisition-related charges			(43)			(13)			(423)
Non-operating retirement-related (costs)/income			(1,282)			(1,073)			(576)
Kyndryl-related impacts			118			—			—
Elimination of internal transactions			(7)			(28)			(21)
Other—divested businesses			25			12			580
Unallocated corporate amounts and other			(774)			(973)			(586)
Total pre-tax income from continuing operations		$	4,837		$	2,572	**	$	7,206

*	Recast to conform to 2021 presentation.

**	Includes the impact of a $1.5 billion pre-tax charge for structural actions in the fourth quarter of 2020.

Assets and Other Items by segment


($ in millions)
														Total
For the year ended December 31:		Software			Consulting			Infrastructure			Financing			Segments
2021
Assets		$	59,336		$	11,914		$	11,766		$	16,880		$	99,896
Depreciation/amortization of intangibles**			1,204			250			1,399			49			2,902
Capital expenditures/investments in intangibles			565			55			792			33			1,444
Interest income			—			—			—			628			628
Interest expense			—			—			—			129			129
2020*
Assets		$	58,558		$	10,548		$	12,378		$	24,974		$	106,458
Depreciation/amortization of intangibles**			1,237			207			1,419			120			2,983
Capital expenditures/investments in intangibles			548			26			1,093			41			1,709
Interest income			—			—			—			834			834
Interest expense			—			—			—			307			307
2019*
Assets		$	58,230		$	10,421		$	12,002		$	29,460		$	110,113
Depreciation/amortization of intangibles**			676			179			1,348			186			2,389
Capital expenditures/investments in intangibles			517			45			612			57			1,230
Interest income			—			—			—			1,133			1,133
Interest expense			—			—			—			512			512

*	Recast to conform to 2021 presentation.

**	Segment pre-tax income from continuing operations does not include the amortization of acquired intangible assets.

Reconciliation of assets to IBM as reported


($ in millions)
At December 31:		2021			2020		*	2019		*
Assets
Total reportable segments		$	99,896		$	106,458		$	110,113
Elimination of internal transactions			(1,608)			(4,686)			(4,317)
Other—divested businesses			193			254			1,942
Unallocated amounts
Cash and marketable securities			6,222			12,463			7,271
Notes and accounts receivable			1,622			1,655			1,601
Deferred tax assets			7,158			8,175			4,917
Plant, other property and equipment			2,196			2,449			2,488
Operating right-of-use assets			1,945			2,368			2,531
Pension assets			9,848			7,557			6,819
Other			4,530			3,514			3,184
Total assets of discontinued operations**			—			15,764			15,638
Total IBM consolidated assets		$	132,001		$	155,971		$	152,186

*	Recast to conform to 2021 presentation.

**	Refer to note C, “Separation of Kyndryl,” for additional information.

Geographic Information

Revenue^È


($ in millions)
For the year ended December 31:		2021			2020		*	2019		*
United States		$	22,893		$	22,258		$	23,389
Japan			5,648			5,680			5,755
Other countries			28,810			27,241			28,570
Total revenue		$	57,350		$	55,179		$	57,714

^È Revenues are attributed to countries based on the location of the client.

* Recast to conform to 2021 presentation.

Plant and Other Property–Net


($ in millions)
At December 31:		2021			2020		*	2019		*
United States		$	3,375		$	3,452		$	3,513
Other countries			2,293			2,656			2,273
Total		$	5,668		$	6,108		$	5,785

* Recast to conform to 2021 presentation.

Operating Right-of-Use Assets–Net


($ in millions)
At December 31:		2021			2020		*	2019		*
United States		$	1,148		$	1,165		$	1,305
Japan			398			532			599
Other countries			1,676			1,870			1,947
Total		$	3,222		$	3,566		$	3,850

* Recast to conform to 2021 presentation.

Revenue by Classes of Similar Products or Services


($ in millions)
For the year ended December 31:		2021			2020		*	2019		*
Software
Software		$	20,098		$	19,046		$	18,574
Services			3,934			3,770			3,670
Systems			109			110			165
Consulting
Services		$	17,563		$	15,986		$	16,663
Software			173			183			160
Systems			108			89			116
Infrastructure
Maintenance		$	4,743		$	4,804		$	5,171
Servers			3,363			3,549			3,829
Services			2,616			2,656			2,927
Storage			1,908			1,813			1,936
Software			1,426			1,563			1,725
Used Equipment Sales**			131			149			186
Financing
Financing		$	628		$	834		$	1,120
Used Equipment Sales			145			140			95

* Recast to conform to 2021 presentation.

** Represents Global Asset Recovery Service transferred from Financing segment.