Segment Information

3 Months Ended

Jun. 30, 2012

Segment Information [Abstract]

SEGMENT INFORMATION

NOTE N – SEGMENT INFORMATION

The Company’s Mainframe Solutions and Enterprise Solutions operating segments comprise its software business organized by the nature of the Company’s software offerings and the product hierarchy in which the platform operates. The Services operating segment comprises implementation, consulting, education and training services, including those directly related to the Mainframe Solutions and Enterprise Solutions software that the Company sells to its customers. A measure of segment assets is not currently provided to the Company’s Chief Executive Officer and has therefore not been disclosed.

The Company’s segment information for the three months ended June 30, 2012 and 2011 is as follows:

Three Months Ended June 30, 2012 (in millions)	Mainframe Solutions			Enterprise Solutions			Services			Total
Revenue	$	628		$	426		$	91		$	1,145
Expenses		260			359			87			706
Segment profit	$	368		$	67		$	4		$	439
Segment operating margin		59	%		16	%		4	%		38	%
Depreciation and amortization	$	26		$	38		$	—		$	64

Reconciliation of segment profit to income from continuing operations before income taxes for the three months ended June 30, 2012:

Segment profit	$	439
Less:
Purchased software amortization		27
Other intangibles amortization		14
Share-based compensation expense		23
Other (gains) expenses, net (1)		(6	)
Interest expense, net		11
Income from continuing operations before income taxes	$	370

⁽¹⁾  Other (gains) expenses, net consists of other unallocated costs including foreign exchange derivative (gains) losses, and other miscellaneous costs.

Three Months Ended June 30, 2011 (in millions)	Mainframe Solutions			Enterprise Solutions			Services			Total
Revenue	$	646		$	427		$	90		$	1,163
Expenses		276			382			88			746
Segment profit	$	370		$	45		$	2		$	417
Segment operating margin		57	%		11	%		2	%		36	%
Depreciation and amortization	$	24		$	31		$	—		$	55

Reconciliation of segment profit to income from continuing operations before income taxes for the three months ended June 30, 2011:

Segment profit	$	417
Less:
Purchased software amortization		23
Other intangibles amortization		19
Share-based compensation expense		25
Other (gains) expenses, net (1)		8
Interest expense, net		9
Income from continuing operations before income taxes	$	333

⁽¹⁾  Other (gains) expenses, net consists of other unallocated costs including foreign exchange derivative (gains) losses, and other miscellaneous costs.

The table below summarizes the Company’s revenue from the United States and from international (i.e., non-U.S.) locations:

(in millions)	Three Months Ended June 30, 2012		Three Months Ended June 30, 2011
United States	$	683	$	672
Europe		273		299
Other		189		192
Total revenue	$	1,145	$	1,163