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Segment Information (Tables)

6 Months Ended

Sep. 30, 2013



Three Months Ended September 30, 2012	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)	Mainframe Solutions			Enterprise Solutions			Services			Total
Revenue	$	619		$	438		$	95		$	1,152
Expenses	250			409			89			748
Segment profit	$	369		$	29		$	6		$	404
Segment operating margin	60		%	7		%	6		%	35		%
Depreciation	$	16		$	11		$	—		$	27



Six Months Ended September 30, 2012	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)	Mainframe Solutions			Enterprise Solutions			Services			Total
Revenue	$	1,247		$	864		$	186		$	2,297
Expenses	511			766			176			1,453
Segment profit	$	736		$	98		$	10		$	844
Segment operating margin	59		%	11		%	5		%	37		%
Depreciation	$	32		$	22		$	—		$	54



Three Months Ended September 30, 2013	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)	Mainframe Solutions			Enterprise Solutions			Services			Total
Revenue	$	624		$	419		$	97		$	1,140
Expenses	228			357			88			673
Segment profit	$	396		$	62		$	9		$	467
Segment operating margin	63		%	15		%	9		%	41		%
Depreciation	$	13		$	9		$	—		$	22



Six Months Ended September 30, 2013	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)	Mainframe Solutions			Enterprise Solutions			Services			Total
Revenue	$	1,243		$	830		$	195		$	2,268
Expenses	470			727			178			1,375
Segment profit	$	773		$	103		$	17		$	893
Segment operating margin	62		%	12		%	9		%	39		%
Depreciation	$	26		$	18		$	—		$	44

Reconciliation of segment profit to income before income taxes

Reconciliation of segment profit to income before income taxes for the three months ended September 30, 2013:



(in millions)
Segment profit	$	467
Less:
Purchased software amortization	31
Other intangibles amortization	15
Software development costs capitalized	(8		)
Internally developed software products amortization	42
Share-based compensation expense	21
Other (gains) expenses, net ⁽¹⁾	7
Interest expense, net	13
Income before income taxes	$	346


(1)	Other (gains) expenses, net consists of approximately $2 million of costs associated with the Fiscal 2014 Plan, certain foreign exchange derivative hedging gains and losses, and other miscellaneous costs.

Reconciliation of segment profit to income before income taxes for the three months ended September 30, 2012:



(in millions)
Segment profit	$	404
Less:
Purchased software amortization	27
Other intangibles amortization	13
Software development costs capitalized	(42		)
Internally developed software products amortization	40
Share-based compensation expense	21
Other (gains) expenses, net ⁽¹⁾	8
Interest expense, net	10
Income before income taxes	$	327


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

Reconciliation of segment profit to income before income taxes for the six months ended September 30, 2013:



(in millions)
Segment profit	$	893
Less:
Purchased software amortization	59
Other intangibles amortization	29
Software development costs capitalized	(31		)
Internally developed software products amortization	83
Share-based compensation expense	41
Other (gains) expenses, net ⁽¹⁾	125
Interest expense, net	24
Income before income taxes	$	563


(1)	Other (gains) expenses, net consists of approximately $122 million of costs associated with the Fiscal 2014 Plan, certain foreign exchange derivative hedging gains and losses, and other miscellaneous costs.

Reconciliation of segment profit to income before income taxes for the six months ended September 30, 2012:



(in millions)
Segment profit	$	844
Less:
Purchased software amortization	54
Other intangibles amortization	27
Software development costs capitalized	(78		)
Internally developed software products amortization	77
Share-based compensation expense	44
Other (gains) expenses, net ⁽¹⁾	2
Interest expense, net	21
Income before income taxes	$	697


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

Revenue from the United States and international locations

The table below summarizes the Company’s revenue from the United States and from international (i.e., non-U.S.) locations:



	Three Months Ended September 30,				Six Months Ended September 30,
	2013		2012		2013		2012
	(in millions)
United States	$	687	$	685	$	1,360	$	1,368
Europe	267		266		531		538
Other	186		201		377		391
Total revenue	$	1,140	$	1,152	$	2,268	$	2,297

- 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 the names of foreign countries from which revenue is material and the amount of revenue from external customers attributed to those countries. 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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