Segment Information (Tables)

3 Months Ended

Jun. 30, 2014



Three Months Ended June 30, 2013	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)	Mainframe Solutions			Enterprise Solutions			Services			Total
Revenue	$	619		$	378		$	98		$	1,095
Expenses	243			351			90			684
Segment profit	$	376		$	27		$	8		$	411
Segment operating margin	61		%	7		%	8		%	38		%
Depreciation	$	14		$	8		$	—		$	22



Three Months Ended June 30, 2014	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)	Mainframe Solutions			Enterprise Solutions			Services			Total
Revenue	$	614		$	368		$	87		$	1,069
Expenses	235			325			82			642
Segment profit	$	379		$	43		$	5		$	427
Segment operating margin	62		%	12		%	6		%	40		%
Depreciation	$	12		$	7		$	—		$	19

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 the three months ended June 30, 2013:



(in millions)
Segment profit	$	411
Less:
Purchased software amortization	28
Other intangibles amortization	14
Software development costs capitalized	(23		)
Internally developed software products amortization	38
Share-based compensation expense	20
Other expenses, net ⁽¹⁾	115
Interest expense, net	11
Income from continuing operations before income taxes	$	208


(1)	Other expenses, net consists of approximately $117 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 from continuing operations before income taxes for the three months ended June 30, 2014:



(in millions)
Segment profit	$	427
Less:
Purchased software amortization	28
Other intangibles amortization	15
Software development costs capitalized	—
Internally developed software products amortization	39
Share-based compensation expense	20
Other expenses, net ⁽¹⁾	12
Interest expense, net	14
Income from continuing operations before income taxes	$	299


(1)	Other expenses, net consists of approximately $9 million of costs associated with the Fiscal 2014 Plan, 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 June 30,
	2014		2013
	(in millions)
United States	$	643	$	657
EMEA ⁽¹⁾	259		264
Other	167		174
Total revenue	$	1,069	$	1,095


(1)	Consists of Europe, the Middle East and Africa.

- 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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