Segment Information (Tables)

9 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment information

Three Months Ended December 31, 2014	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)
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

Nine Months Ended December 31, 2014	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)
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, 2015	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)
Revenue	$	554		$	398		$	82		$	1,034
Expenses	218			349			77			644
Segment profit	$	336		$	49		$	5		$	390
Segment operating margin	61		%	12		%	6		%	38		%
Depreciation	$	9		$	7		$	—		$	16

Nine Months Ended December 31, 2015	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)
Revenue	$	1,668		$	1,104		$	244		$	3,016
Expenses	641			996			227			1,864
Segment profit	$	1,027		$	108		$	17		$	1,152
Segment operating margin	62		%	10		%	7		%	38		%
Depreciation	$	27		$	20		$	—		$	47

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, 2014:

(in millions)
Segment profit	$	1,267
Less:
Purchased software amortization	87
Other intangibles amortization	45
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.

Reconciliation of segment profit to income from continuing operations before income taxes for the nine months ended December 31, 2015:

(in millions)
Segment profit	$	1,152
Less:
Purchased software amortization	106
Other intangibles amortization	36
Internally developed software products amortization	86
Share-based compensation expense	70
Other gains, net (1)	(2		)
Interest expense, net	36
Income from continuing operations before income taxes	$	820

(1) Other gains, net consists of costs associated with 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, 2015:

(in millions)
Segment profit	$	390
Less:
Purchased software amortization	39
Other intangibles amortization	11
Internally developed software products amortization	26
Share-based compensation expense	25
Other gains, net (1)	(4		)
Interest expense, net	15
Income from continuing operations before income taxes	$	278

(1) Other gains, net consists of costs associated with 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
Internally developed software products amortization	34
Share-based compensation expense	23
Other gains, net (1)	(6		)
Interest expense, net	12
Income from continuing operations before income taxes	$	306

(1) Other gains, 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,
	2015		2014		2015		2014
	(in millions)
United States	$	671	$	668	$	1,935	$	1,967
EMEA (1)	230		263		679		781
Other	133		160		402		491
Total revenue	$	1,034	$	1,091	$	3,016	$	3,239

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