Segment and Geographic Information (Tables)

12 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment information

Year Ended March 31, 2017	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)
Revenue	$	2,182		$	1,553		$	301		$	4,036
Expenses	851			1,378			302			2,531
Segment profit (loss)	$	1,331		$	175		$	(1	)	$	1,505
Segment operating margin	61		%	11		%	—		%	37		%
Depreciation	$	34		$	24		$	—		$	58

Year Ended March 31, 2015	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)
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

Year Ended March 31, 2016	Mainframe Solutions			Enterprise Solutions			Services			Total
(dollars in millions)
Revenue	$	2,215		$	1,484		$	326		$	4,025
Expenses	854			1,337			303			2,494
Segment profit	$	1,361		$	147		$	23		$	1,531
Segment operating margin	61		%	10		%	7		%	38		%
Depreciation	$	36		$	26		$	—		$	62

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 2016:

Segment profit	$	1,531
Less:
Purchased software amortization	146
Other intangibles amortization	44
Internally developed software products amortization	110
Share-based compensation expense	97
Other gains, net (1)	(1		)
Interest expense, net	51
Income from continuing operations before income taxes	$	1,084

(1) Other gains, net consists of miscellaneous items.

Reconciliation of segment profit to income from continuing operations before income taxes for fiscal year 2017:

Segment profit	$	1,505
Less:
Purchased software amortization	164
Other intangibles amortization	19
Internally developed software products amortization	79
Share-based compensation expense	108
Interest expense, net	62
Income from continuing operations before income taxes	$	1,073

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
Internally developed software products amortization	149
Share-based compensation expense	87
Other expenses, net (1)	17
Interest expense, net	47
Income from continuing operations before income taxes	$	1,115

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

Information about Company by geographic area

The following table presents information about the Company by geographic area for fiscal years 2017, 2016 and 2015:

(in millions)	United States		EMEA (1)		Other		Eliminations			Total
Year Ended March 31, 2017
Revenue:
From unaffiliated customers	$	2,586	$	887	$	563	$	—		$	4,036
Between geographic areas (2)	419		—		—		(419		)	—
Total revenue	$	3,005	$	887	$	563	$	(419	)	$	4,036
Property and equipment, net	$	105	$	93	$	39	$	—		$	237
Total assets	$	9,018	$	2,736	$	856	$	—		$	12,610
Total liabilities	$	5,502	$	934	$	485	$	—		$	6,921
Year Ended March 31, 2016
Revenue:
From unaffiliated customers	$	2,585	$	903	$	537	$	—		$	4,025
Between geographic areas (2)	400		—		—		(400		)	—
Total revenue	$	2,985	$	903	$	537	$	(400	)	$	4,025
Property and equipment, net	$	109	$	96	$	37	$	—		$	242
Total assets	$	8,185	$	2,170	$	849	$	—		$	11,204
Total liabilities	$	4,646	$	728	$	452	$	—		$	5,826
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	$	8,122	$	1,874	$	977	$	—		$	10,973
Total liabilities	$	4,041	$	809	$	498	$	—		$	5,348

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

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