Segment and Geographic Information (Tables)

12 Months Ended

Mar. 31, 2013



Year Ended March 31, 2013	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)	Mainframe Solutions			Enterprise Solutions			Services			Total
Revenue	$	2,489		$	1,772		$	382		$	4,643
Expenses	1,016			1,612			358			2,986
Segment profit	$	1,473		$	160		$	24		$	1,657
Segment operating margin	59		%	9		%	6		%	36		%
Depreciation and amortization	$	103		$	157		$	—		$	260



Year Ended March 31, 2012	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)	Mainframe Solutions			Enterprise Solutions			Services			Total
Revenue	$	2,612		$	1,820		$	382		$	4,814
Expenses	1,140			1,668			359			3,167
Segment profit	$	1,472		$	152		$	23		$	1,647
Segment operating margin	56		%	8		%	6		%	34		%
Depreciation and amortization	$	99		$	134		$	—		$	233



Year Ended March 31, 2011	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)	Mainframe Solutions			Enterprise Solutions			Services			Total
Revenue	$	2,479		$	1,623		$	327		$	4,429
Expenses	1,129			1,501			310			2,940
Segment profit	$	1,350		$	122		$	17		$	1,489
Segment operating margin	54		%	8		%	5		%	34		%
Depreciation and amortization	$	102		$	116		$	—		$	218

Reconciliation of segment profit to income from continuing operations before income taxes

Reconciliation of segment profit to income from continuing operations before income taxes for fiscal year 2013:



Segment profit	$	1,657
Less:
Purchased software amortization ⁽¹⁾	163
Other intangibles amortization	54
Share-based compensation expense	78
Other (gains) expenses, net ⁽²⁾	—
Interest expense, net	44
Income from continuing operations before income taxes	$	1,318


(1)	Amount includes impairment recorded in the fourth quarter of fiscal year 2013 of $55 million relating to purchased software (see Note 6, “Long Lived Assets,” in the Notes to the Consolidated Financial Statements for additional information).


(2)	Other (gains) expenses, net consists of other unallocated costs including foreign exchange derivative (gains) losses, and other miscellaneous costs.

Reconciliation of segment profit to income from continuing operations before income taxes for fiscal year 2012:



Segment profit	$	1,647
Less:
Purchased software amortization	103
Other intangibles amortization	65
Share-based compensation expense	89
Other (gains) expenses, net ⁽¹⁾	1
Interest expense, net	35
Income from continuing operations before income taxes	$	1,354


(1)	Other (gains) expenses, net consists of other unallocated costs including foreign exchange derivative (gains) losses, and other miscellaneous costs.

Reconciliation of segment profit to income from continuing operations before income taxes for fiscal year 2011:



Segment profit	$	1,489
Less:
Purchased software amortization	88
Other intangibles amortization	73
Share-based compensation expense	80
Other (gains) expenses, net ⁽¹⁾	(6		)
Interest expense, net	45
Income from continuing operations before income taxes	$	1,209


(1)	Other (gains) expenses, net consists of other unallocated costs including foreign exchange derivative (gains) losses, and other miscellaneous costs.

Changes in the carrying value of goodwill by segment

Changes in the carrying value of goodwill by segment for fiscal year 2013 are as follows:



(in millions)	Mainframe Solutions			Enterprise Solutions			Services
Balance at beginning of year	$	4,179		$	1,596		$	81
Acquisitions	—			17			—
Foreign currency translation adjustment	(1		)	(1		)	—
Balance at end of year	$	4,178		$	1,612		$	81

Information about Company by geographic area

The following table presents information about the Company by geographic area for fiscal years 2013, 2012 and 2011:



(in millions)	United States		Europe		Other		Eliminations			Total
Year Ended March 31, 2013
Revenue
To unaffiliated customers	$	2,747	$	1,104	$	792	$	—		$	4,643
Between geographic areas⁽¹⁾	460		—		—		(460		)	—
Total revenue	$	3,207	$	1,104	$	792	$	(460	)	$	4,643
Property and equipment, net	$	138	$	108	$	65	$	—		$	311
Total assets	$	8,887	$	1,917	$	1,007	$	—		$	11,811
Total liabilities	$	4,793	$	944	$	624	$	—		$	6,361
Year Ended March 31, 2012
Revenue
To unaffiliated customers	$	2,812	$	1,182	$	820	$	—		$	4,814
Between geographic areas⁽¹⁾	472		—		—		(472		)	—
Total revenue	$	3,284	$	1,182	$	820	$	(472	)	$	4,814
Property and equipment, net	$	181	$	121	$	84	$	—		$	386
Total assets	$	9,078	$	1,904	$	1,015	$	—		$	11,997
Total liabilities	$	4,911	$	1,009	$	680	$	—		$	6,600
Year Ended March 31, 2011
Revenue
To unaffiliated customers	$	2,519	$	1,139	$	771	$	—		$	4,429
Between geographic areas⁽¹⁾	453		—		—		(453		)	—
Total revenue	$	2,972	$	1,139	$	771	$	(453	)	$	4,429
Property and equipment, net	$	211	$	132	$	94	$	—		$	437
Total assets	$	9,641	$	1,789	$	981	$	—		$	12,411
Total liabilities	$	4,996	$	1,163	$	632	$	—		$	6,791


(1)	Represents royalties from foreign subsidiaries determined as a percentage of certain amounts invoiced to customer.

- Definition

Tabular disclosure of all significant reconciling items in the reconciliation of total profit or loss from reportable segments, to the entity's consolidated income before income taxes, extraordinary items, and discontinued operations.

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- Definition

Tabular disclosure of information concerning material long-lived assets (excluding financial instruments, customer relationships with financial institutions, mortgage and other servicing rights, deferred policy acquisition costs, and deferred taxes assets) located in identified geographic areas and/or the amount of revenue from external customers attributed to that country from which revenue is material. An entity may also provide subtotals of geographic information about groups of countries.

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- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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