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Segment Information (Tables)

6 Months Ended

Sep. 30, 2014



Three Months Ended September 30, 2014	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)	Mainframe Solutions			Enterprise Solutions			Services			Total
Revenue	$	610		$	378		$	91		$	1,079
Expenses	234			327			89			650
Segment profit	$	376		$	51		$	2		$	429
Segment operating margin	62		%	13		%	2		%	40		%
Depreciation	$	11		$	7		$	—		$	18



Six Months Ended September 30, 2014	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)	Mainframe Solutions			Enterprise Solutions			Services			Total
Revenue	$	1,224		$	746		$	178		$	2,148
Expenses	469			652			171			1,292
Segment profit	$	755		$	94		$	7		$	856
Segment operating margin	62		%	13		%	4		%	40		%
Depreciation	$	23		$	14		$	—		$	37



Six Months Ended September 30, 2013	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)	Mainframe Solutions			Enterprise Solutions			Services			Total
Revenue	$	1,243		$	762		$	195		$	2,200
Expenses	475			688			178			1,341
Segment profit	$	768		$	74		$	17		$	859
Segment operating margin	62		%	10		%	9		%	39		%
Depreciation	$	27		$	17		$	—		$	44



Three Months Ended September 30, 2013	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)	Mainframe Solutions			Enterprise Solutions			Services			Total
Revenue	$	624		$	384		$	97		$	1,105
Expenses	232			337			88			657
Segment profit	$	392		$	47		$	9		$	448
Segment operating margin	63		%	12		%	9		%	41		%
Depreciation	$	13		$	9		$	—		$	22

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 six months ended September 30, 2014:



(in millions)
Segment profit	$	856
Less:
Purchased software amortization	59
Other intangibles amortization	31
Software development costs capitalized	—
Internally developed software products amortization	83
Share-based compensation expense	42
Other expenses, net ⁽¹⁾	8
Interest expense, net	26
Income from continuing operations before income taxes	$	607


(1)	Other expenses, net consists of approximately $21 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 September 30, 2014:



(in millions)
Segment profit	$	429
Less:
Purchased software amortization	31
Other intangibles amortization	16
Software development costs capitalized	—
Internally developed software products amortization	44
Share-based compensation expense	22
Other expenses, net ⁽¹⁾	(4		)
Interest expense, net	12
Income from continuing operations before income taxes	$	308


(1)	Other expenses, net consists of approximately $12 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 September 30, 2013:



(in millions)
Segment profit	$	448
Less:
Purchased software amortization	31
Other intangibles amortization	15
Software development costs capitalized	(8		)
Internally developed software products amortization	38
Share-based compensation expense	20
Other expenses, net ⁽¹⁾	7
Interest expense, net	13
Income from continuing operations before income taxes	$	332


(1)	Other 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 from continuing operations before income taxes for the six months ended September 30, 2013:



(in millions)
Segment profit	$	859
Less:
Purchased software amortization	59
Other intangibles amortization	29
Software development costs capitalized	(31		)
Internally developed software products amortization	76
Share-based compensation expense	40
Other expenses, net ⁽¹⁾	122
Interest expense, net	24
Income from continuing operations before income taxes	$	540


(1)	Other expenses, net consists of approximately $119 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 September 30,				Six Months Ended September 30,
	2014		2013		2014		2013
	(in millions)
United States	$	656	$	671	$	1,299	$	1,328
EMEA ⁽¹⁾	259		267		518		531
Other	164		167		331		341
Total revenue	$	1,079	$	1,105	$	2,148	$	2,200


(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.

+ References+ Details