Segment and Geographic Information (Tables)

12 Months Ended

Mar. 31, 2015



Year Ended March 31, 2013	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)	Mainframe Solutions			Enterprise Solutions			Services			Total
Revenue	$	2,489		$	1,633		$	382		$	4,504
Expenses	1,038			1,520			358			2,916
Segment profit	$	1,451		$	113		$	24		$	1,588
Segment operating margin	58		%	7		%	6		%	35		%
Depreciation	$	63		$	41		$	—		$	104



Year Ended March 31, 2014	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)	Mainframe Solutions			Enterprise Solutions			Services			Total
Revenue	$	2,478		$	1,555		$	379		$	4,412
Expenses	996			1,440			357			2,793
Segment profit	$	1,482		$	115		$	22		$	1,619
Segment operating margin	60		%	7		%	6		%	37		%
Depreciation	$	52		$	32		$	—		$	84



Year Ended March 31, 2015	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)	Mainframe Solutions			Enterprise Solutions			Services			Total
Revenue	$	2,392		$	1,519		$	351		$	4,262
Expenses	970			1,353			342			2,665
Segment profit	$	1,422		$	166		$	9		$	1,597
Segment operating margin	59		%	11		%	3		%	37		%
Depreciation	$	43		$	28		$	—		$	71

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	$	1,588
Less:
Purchased software amortization ⁽¹⁾	162
Other intangibles amortization	54
Software development costs capitalized	(152		)
Internally developed software products amortization	143
Share-based compensation expense	77
Other expenses (gains), net	—
Interest expense, net	44
Income from continuing operations before income taxes	$	1,260


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

Reconciliation of segment profit to income from continuing operations before income taxes for fiscal year 2014:



Segment profit	$	1,619
Less:
Purchased software amortization	116
Other intangibles amortization	60
Software development costs capitalized	(33		)
Internally developed software products amortization	155
Share-based compensation expense	81
Other expenses (gains), net ⁽¹⁾	170
Interest expense, net	54
Income from continuing operations before income taxes	$	1,016


(1)	Other expenses (gains), net consists of approximately $168 million of costs associated with the Fiscal 2014 Plan and other miscellaneous costs.

Reconciliation of segment profit to income from continuing operations before income taxes for fiscal year 2015:



Segment profit	$	1,597
Less:
Purchased software amortization	124
Other intangibles amortization	58
Software development costs capitalized	—
Internally developed software products amortization	149
Share-based compensation expense	87
Other expenses (gains), net ⁽¹⁾	17
Interest expense, net	47
Income from continuing operations before income taxes	$	1,115


(1)	Other expenses (gains), net consists of costs associated with the Fiscal 2014 Plan and other miscellaneous costs.

Information about Company by geographic area

The following table presents information about the Company by geographic area for fiscal years 2015, 2014 and 2013:



(in millions)	United States		EMEA ⁽¹⁾		Other		Eliminations			Total
Year Ended March 31, 2015
Revenue:
From unaffiliated customers	$	2,615	$	1,008	$	639	$	—		$	4,262
Between geographic areas ⁽²⁾	438		—		—		(438		)	—
Total revenue	$	3,053	$	1,008	$	639	$	(438	)	$	4,262
Property and equipment, net	$	112	$	97	$	43	$	—		$	252
Total assets	$	8,128	$	1,874	$	977	$	—		$	10,979
Total liabilities	$	4,047	$	809	$	498	$	—		$	5,354
Year Ended March 31, 2014
Revenue:
From unaffiliated customers	$	2,645	$	1,093	$	674	$	—		$	4,412
Between geographic areas ⁽²⁾	446		—		—		(446		)	—
Total revenue	$	3,091	$	1,093	$	674	$	(446	)	$	4,412
Property and equipment, net	$	125	$	116	$	54	$	—		$	295
Total assets	$	8,908	$	2,076	$	1,032	$	—		$	12,016
Total liabilities	$	4,919	$	890	$	637	$	—		$	6,446
Year Ended March 31, 2013
Revenue:
From unaffiliated customers	$	2,679	$	1,106	$	719	$	—		$	4,504
Between geographic areas ⁽²⁾	460		—		—		(460		)	—
Total revenue	$	3,139	$	1,106	$	719	$	(460	)	$	4,504
Property and equipment, net	$	138	$	108	$	65	$	—		$	311
Total assets	$	8,897	$	1,911	$	1,007	$	—		$	11,815
Total liabilities	$	4,802	$	939	$	624	$	—		$	6,365


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


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

- 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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