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Segment Information (Tables)

9 Months Ended

Dec. 31, 2014



Nine Months Ended December 31, 2013	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)	Mainframe Solutions			Enterprise Solutions			Services			Total
Revenue	$	1,865		$	1,174		$	289		$	3,328
Expenses	716			1,045			268			2,029
Segment profit	$	1,149		$	129		$	21		$	1,299
Segment operating margin	62		%	11		%	7		%	39		%
Depreciation	$	40		$	25		$	—		$	65



Nine Months Ended December 31, 2014	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)	Mainframe Solutions			Enterprise Solutions			Services			Total
Revenue	$	1,820		$	1,151		$	268		$	3,239
Expenses	717			999			256			1,972
Segment profit	$	1,103		$	152		$	12		$	1,267
Segment operating margin	61		%	13		%	4		%	39		%
Depreciation	$	33		$	21		$	—		$	54



Three Months Ended December 31, 2014	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)	Mainframe Solutions			Enterprise Solutions			Services			Total
Revenue	$	596		$	405		$	90		$	1,091
Expenses	248			347			85			680
Segment profit	$	348		$	58		$	5		$	411
Segment operating margin	58		%	14		%	6		%	38		%
Depreciation	$	10		$	7		$	—		$	17



Three Months Ended December 31, 2013	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)	Mainframe Solutions			Enterprise Solutions			Services			Total
Revenue	$	622		$	412		$	94		$	1,128
Expenses	241			357			90			688
Segment profit	$	381		$	55		$	4		$	440
Segment operating margin	61		%	13		%	4		%	39		%
Depreciation	$	13		$	8		$	—		$	21

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 nine months ended December 31, 2013:



(in millions)
Segment profit	$	1,299
Less:
Purchased software amortization	87
Other intangibles amortization	48
Software development costs capitalized	(32		)
Internally developed software products amortization	117
Share-based compensation expense	63
Other expenses, net ⁽¹⁾	131
Interest expense, net	39
Income from continuing operations before income taxes	$	846


(1)	Other expenses, net consists of approximately $131 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 December 31, 2014:



(in millions)
Segment profit	$	411
Less:
Purchased software amortization	28
Other intangibles amortization	14
Software development costs capitalized	—
Internally developed software products amortization	34
Share-based compensation expense	23
Other expenses, net ⁽¹⁾	(6		)
Interest expense, net	12
Income from continuing operations before income taxes	$	306


(1)	Other expenses, net consists 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 December 31, 2013:



(in millions)
Segment profit	$	440
Less:
Purchased software amortization	28
Other intangibles amortization	19
Software development costs capitalized	(1		)
Internally developed software products amortization	41
Share-based compensation expense	23
Other expenses, net ⁽¹⁾	9
Interest expense, net	15
Income from continuing operations before income taxes	$	306


(1)	Other expenses, net consists 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 nine months ended December 31, 2014:



(in millions)
Segment profit	$	1,267
Less:
Purchased software amortization	87
Other intangibles amortization	45
Software development costs capitalized	—
Internally developed software products amortization	117
Share-based compensation expense	65
Other expenses, net ⁽¹⁾	2
Interest expense, net	38
Income from continuing operations before income taxes	$	913


(1)	Other expenses, net consists 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 December 31,				Nine Months Ended December 31,
	2014		2013		2014		2013
	(in millions)
United States	$	668	$	667	$	1,967	$	1,995
EMEA ⁽¹⁾	263		288		781		819
Other	160		173		491		514
Total revenue	$	1,091	$	1,128	$	3,239	$	3,328


(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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