Segments (Tables)
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12 Months Ended |
Dec. 31, 2022 |
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| Segments |
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| Revenue and Pre-tax Income by Segment |
| | | | | | | | | | | | | | | | | ($ in millions) | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | | For the year ended December 31: | | Software | | Consulting | | Infrastructure | | Financing | | Segments | | 2022 | | | | | | | | | | | | | | | | | Revenue | | $ | 25,037 | | $ | 19,107 | | $ | 15,288 | | $ | 645 | | $ | 60,077 | | Pre-tax income from continuing operations | | | 6,162 | | | 1,677 | | | 2,262 | | | 340 | | | 10,441 | | Revenue year-to-year change | | | 6.9 | % | | 7.1 | % | | 7.8 | % | | (16.6) | % | | 6.8 | % | Pre-tax income year-to-year change | | | 27.1 | % | | 15.7 | % | | 11.7 | % | | (22.9) | % | | 19.1 | % | Pre-tax income margin | | | 24.6 | % | | 8.8 | % | | 14.8 | % | | 52.6 | % | | 17.4 | % | 2021* | | | | | | | | | | | | | | | | | Revenue | | $ | 23,426 | | $ | 17,844 | | $ | 14,188 | | $ | 774 | | $ | 56,231 | | Pre-tax income from continuing operations | | | 4,849 | | | 1,449 | | | 2,025 | | | 441 | | | 8,765 | | Revenue year-to-year change | | | 5.9 | % | | 9.8 | % | | (2.4) | % | | (20.6) | % | | 4.3 | % | Pre-tax income year-to-year change | | | 41.7 | % | | 40.1 | % | | 22.4 | % | | (1.8) | % | | 33.6 | % | Pre-tax income margin | | | 20.7 | % | | 8.1 | % | | 14.3 | % | | 57.0 | % | | 15.6 | % | 2020* | | | | | | | | | | | | | | | | | Revenue | | $ | 22,124 | | $ | 16,257 | | $ | 14,533 | | $ | 975 | | $ | 53,888 | | Pre-tax income from continuing operations** | | | 3,423 | | | 1,034 | | | 1,654 | | | 449 | | | 6,561 | | | | | | | | | | | | | | | | | | |
* | Recast to reflect segment change. |
** | 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 ($0.6 billion), Consulting ($0.4 billion) and Infrastructure ($0.4 billion). The impact to Financing was immaterial. |
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| Reconciliation of segment revenue and pre-tax income to IBM as reported |
Reconciliations of IBM as Reported | | | | | | | | | | | ($ in millions) | | | | | | | | | | | For the year ended December 31: | | 2022 | | 2021 | (1) | 2020 | (1) | Revenue | | | | | | | | | | | Total reportable segments | | $ | 60,077 | | $ | 56,231 | | $ | 53,888 | | Other—divested businesses | | | 318 | | | 785 | | | 904 | | Other revenue | | | 135 | | | 335 | | | 387 | | Total revenue | | $ | 60,530 | | $ | 57,350 | | $ | 55,179 | | | | | 0 | | | 0 | | | | |
| | | | | | | | | | | ($ in millions) | | | | | | | | | | | For the year ended December 31: | | 2022 | | 2021 | (1) | 2020 | (1) | Pre-tax income from continuing operations | | | | | | | | | | | Total reportable segments | | $ | 10,441 | | $ | 8,765 | | $ | 6,561 | (2) | Amortization of acquired intangible assets | | | (1,747) | | | (1,838) | | | (1,832) | | Acquisition-related charges | | | (18) | | | (43) | | | (13) | | Non-operating retirement-related (costs)/income | | | (6,548) | (3) | | (1,282) | | | (1,073) | | Kyndryl-related impacts (4) | | | (351) | | | 118 | | | — | | Elimination of internal transactions | | | (10) | | | (7) | | | (28) | | Other—divested businesses | | | 91 | (5) | | (102) | | | (70) | | Unallocated corporate amounts and other | | | (702) | | | (774) | | | (973) | | Total pre-tax income from continuing operations | | $ | 1,156 | | $ | 4,837 | | $ | 2,572 | |
(1) Recast to reflect segment change. (2) Includes the impact of a $1.5 billion pre-tax charge for structural actions in the fourth quarter of 2020. (3) Includes a one-time, non-cash, pre-tax pension settlement charge of $5.9 billion. See note V, “Retirement-Related Benefits,” for additional information. (4) Refer to note J, “Financial Assets & Liabilities,” for additional information. (5) Includes a gain on the sale of the company's healthcare software assets. Refer to note F, "Acquisitions & Divestitures," for additional information.
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| Assets and Other Items by segment |
| | | | | | | | | | | | | | | | | ($ in millions) | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | | For the year ended December 31: | | Software | * | Consulting | | Infrastructure | | Financing | | Segments | | 2022 | | | | | | | | | | | | | | | | | Assets | | $ | 57,186 | | $ | 13,481 | | $ | 12,243 | | $ | 15,757 | | $ | 98,667 | | Depreciation/amortization of intangibles** | | | 968 | | | 289 | | | 1,403 | | | 14 | | | 2,674 | | Capital expenditures/investments in intangibles | | | 446 | | | 33 | | | 853 | | | 27 | | | 1,359 | | Interest income | | | — | | | — | | | — | | | 582 | | | 582 | | Interest expense | | | — | | | — | | | — | | | 175 | | | 175 | | 2021 | | | | | | | | | | | | | | | | | Assets | | $ | 58,420 | | $ | 11,914 | | $ | 11,766 | | $ | 16,880 | | $ | 98,980 | | Depreciation/amortization of intangibles** | | | 983 | | | 250 | | | 1,399 | | | 49 | | | 2,681 | | Capital expenditures/investments in intangibles | | | 559 | | | 55 | | | 792 | | | 33 | | | 1,439 | | Interest income | | | — | | | — | | | — | | | 628 | | | 628 | | Interest expense | | | — | | | — | | | — | | | 129 | | | 129 | | 2020 | | | | | | | | | | | | | | | | | Assets | | $ | 57,436 | | $ | 10,548 | | $ | 12,378 | | $ | 24,974 | | $ | 105,336 | | Depreciation/amortization of intangibles** | | | 1,007 | | | 207 | | | 1,419 | | | 120 | | | 2,753 | | Capital expenditures/investments in intangibles | | | 538 | | | 26 | | | 1,093 | | | 41 | | | 1,699 | | Interest income | | | — | | | — | | | — | | | 834 | | | 834 | | Interest expense | | | — | | | — | | | — | | | 307 | | | 307 | | | | | | | | | | | | | | | | | | |
* | Prior-year periods were recast to reflect segment change. |
** | Segment pre-tax income from continuing operations does not include the amortization of acquired intangible assets. |
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| Reconciliation of assets to IBM as reported |
| | | | | | | | | | | ($ in millions) | | | | | | | | | | | At December 31: | | 2022 | | 2021 | * | 2020 | * | Assets | | | | | | | | | | | Total reportable segments | | $ | 98,667 | | $ | 98,980 | | $ | 105,336 | | Elimination of internal transactions | | | (1,062) | | | (1,608) | | | (4,686) | | Other—divested businesses | | | 100 | | | 1,109 | | | 1,376 | | Unallocated amounts | | | | | | | | | | | Cash and marketable securities | | | 8,138 | | | 6,222 | | | 12,463 | | Notes and accounts receivable | | | 281 | | | 1,622 | | | 1,655 | | Deferred tax assets | | | 6,078 | | | 7,158 | | | 8,175 | | Plant, other property and equipment | | | 1,760 | | | 2,196 | | | 2,449 | | Operating right-of-use assets | | | 1,586 | | | 1,945 | | | 2,368 | | Pension assets | | | 8,236 | | | 9,848 | | | 7,557 | | Other | | | 3,459 | | | 4,530 | | | 3,514 | | Total assets of discontinued operations | | | — | | | — | | | 15,764 | | Total IBM consolidated assets | | $ | 127,243 | | $ | 132,001 | | $ | 155,971 | | | | | | | | | | | | |
* Recast to reflect segment change.
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| Geographic Information |
Revenue* | | | | | | | | | | | ($ in millions) | | | | | | | | | | | For the year ended December 31: | | 2022 | | 2021 | | 2020 | | United States | | $ | 25,098 | | $ | 22,893 | | $ | 22,258 | | Japan | | | 5,453 | | | 5,648 | | | 5,680 | | Other countries | | | 29,980 | | | 28,810 | | | 27,241 | | Total revenue | | $ | 60,530 | | $ | 57,350 | | $ | 55,179 | | | | | | | | | | | | |
* Revenues are attributed to countries based on the location of the client. Plant and Other Property–Net | | | | | | | | | | | ($ in millions) | | | | | | | | | | | At December 31: | | 2022 | | 2021 | | 2020 | | United States | | $ | 3,209 | | $ | 3,375 | | $ | 3,452 | | Other countries | | | 2,100 | | | 2,293 | | | 2,656 | | Total* | | $ | 5,308 | | $ | 5,668 | | $ | 6,108 | | | | | | | | | | | | |
* Balances do not include rental machines. Operating Right-of-Use Assets–Net | | | | | | | | | | | ($ in millions) | | | | | | | | | | | At December 31: | | 2022 | | 2021 | | 2020 | | United States | | $ | 1,074 | | $ | 1,148 | | $ | 1,165 | | Japan | | | 259 | | | 398 | | | 532 | | Other countries | | | 1,545 | | | 1,676 | | | 1,870 | | Total | | $ | 2,878 | | $ | 3,222 | | $ | 3,566 | | | | | | | | | | | | |
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| Revenue by Classes of Similar Products or Services |
| | | | | | | | | | | ($ in millions) | | | | | | | | | | | For the year ended December 31: | | 2022 | | 2021 | | 2020 | | Software * | | | | | | | | | | | Software | | $ | 21,374 | | $ | 19,845 | | $ | 18,771 | | Services | | | 3,575 | | | 3,485 | | | 3,253 | | Systems | | | 88 | | | 96 | | | 100 | | Consulting | | | | | | | | | | | Services | | $ | 18,857 | | $ | 17,563 | | $ | 15,986 | | Software | | | 170 | | | 173 | | | 183 | | Systems | | | 80 | | | 108 | | | 89 | | Infrastructure | | | | | | | | | | | Maintenance | | $ | 4,590 | | $ | 4,743 | | $ | 4,804 | | Servers | | | 4,471 | | | 3,483 | ** | | 3,686 | ** | Services | | | 2,653 | | | 2,616 | | | 2,656 | | Storage | | | 1,989 | | | 1,919 | ** | | 1,824 | ** | Software | | | 1,585 | | | 1,426 | | | 1,563 | | Financing | | | | | | | | | | | Financing | | $ | 582 | | $ | 628 | | $ | 834 | | Used equipment sales | | $ | 64 | | $ | 145 | | $ | 140 | | | | | | | | | | | | |
* Prior-year periods were recast to reflect segment change. ** Recast to conform to 2022 presentation to present used equipment sales in servers and storage.
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