XML 42 R30.htm IDEA: XBRL DOCUMENT v3.7.0.1
Segment Information (Tables)
3 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
Segment information
Three Months Ended June 30, 2016
Mainframe
Solutions
 
Enterprise
Solutions
 
Services
 
Total
(dollars in millions)
Revenue
$
551

 
$
371

 
$
77

 
$
999

Expenses
208

 
324

 
75

 
607

Segment profit
$
343

 
$
47

 
$
2

 
$
392

Segment operating margin
62
%
 
13
%
 
3
%
 
39
%
Depreciation
$
9

 
$
6

 
$

 
$
15

Three Months Ended June 30, 2017
Mainframe
Solutions
 
Enterprise
Solutions
 
Services
 
Total
(dollars in millions)
Revenue
$
536

 
$
414

 
$
75

 
$
1,025

Expenses
187

 
381

 
74

 
642

Segment profit
$
349

 
$
33

 
$
1

 
$
383

Segment operating margin
65
%
 
8
%
 
1
%
 
37
%
Depreciation
$
9

 
$
7

 
$

 
$
16

Reconciliation of segment profit to income before income taxes
Reconciliation of segment profit to income before income taxes for the three months ended June 30, 2017:
(in millions)
 
Segment profit
$
383

Less:
 
Purchased software amortization
58

Other intangibles amortization
10

Internally developed software products amortization
12

Share-based compensation expense
32

Other expenses, net (1)
8

Interest expense, net
25

Income before income taxes
$
238

(1)
Other expenses, net consists of costs associated with certain foreign exchange derivative hedging gains and losses, and other miscellaneous costs.
Reconciliation of segment profit to income before income taxes for the three months ended June 30, 2016:
(in millions)
 
Segment profit
$
392

Less:
 
Purchased software amortization
43

Other intangibles amortization
5

Internally developed software products amortization
23

Share-based compensation expense
29

Interest expense, net
15

Income before income taxes
$
277

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
June 30,
 
2017
 
2016
 
(in millions)
United States
$
657

 
$
637

EMEA (1)
229

 
225

Other
139

 
137

Total revenue
$
1,025

 
$
999


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