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Segments:
9 Months Ended
Sep. 30, 2012
Segments:  
Segments:

6. Segments:  The tables on pages 26 and 27 reflect the results of operations of the company’s segments consistent with the management and measurement system utilized within the company. Performance measurement is based on pre-tax income. These results are used, in part, by senior management, both in evaluating the performance of, and in allocating resources to, each of the segments.

 

SEGMENT INFORMATION

 

 

 

Global Services

 

 

 

 

 

 

 

 

 

 

 

Global

 

Global

 

 

 

 

 

 

 

 

 

 

 

Technology

 

Business

 

 

 

Systems and

 

Global

 

Total

 

(Dollars in millions)

 

Services

 

Services

 

Software

 

Technology

 

Financing

 

Segments

 

For the three months ended September 30, 2012:

 

 

 

 

 

 

 

 

 

 

 

 

 

External revenue

 

$

9,922

 

$

4,542

 

$

5,763

 

$

3,895

 

$

472

 

$

24,594

 

Internal revenue

 

285

 

175

 

843

 

181

 

491

 

1,976

 

Total revenue

 

$

10,206

 

$

4,717

 

$

6,606

 

$

4,076

 

$

963

 

$

26,570

 

Pre-tax income

 

$

1,697

 

$

738

 

$

2,355

 

$

124

 

$

476

 

$

5,389

 

Revenue year-to-year change

 

(4.1

)%

(6.2

)%

(0.2

)%

(12.8

)%

(3.6

)%

(5.0

)%

Pre-tax income year-to-year change

 

0.1

%

(4.8

)%

6.3

%

(61.1

)%

(1.2

)%

(1.7

)%

Pre-tax income margin

 

16.6

%

15.6

%

35.6

%

3.0

%

49.4

%

20.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended September 30, 2011:

 

 

 

 

 

 

 

 

 

 

 

 

 

External revenue

 

$

10,322

 

$

4,832

 

$

5,817

 

$

4,482

 

$

520

 

$

25,974

 

Internal revenue

 

316

 

199

 

804

 

190

 

480

 

1,989

 

Total revenue

 

$

10,638

 

$

5,031

 

$

6,621

 

$

4,672

 

$

999

 

$

27,963

 

Pre-tax income

 

$

1,695

 

$

775

 

$

2,214

 

$

318

 

$

481

 

$

5,484

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income margin

 

15.9

%

15.4

%

33.4

%

6.8

%

48.2

%

19.6

%

 

Reconciliations to IBM as Reported:

 

(Dollars in millions)

 

 

 

 

 

For the three months ended September 30:

 

2012

 

2011*

 

Revenue:

 

 

 

 

 

Total reportable segments

 

$

26,570

 

$

27,963

 

Eliminations of internal transactions

 

(1,976

)

(1,989

)

Other revenue adjustments

 

154

 

182

 

Total IBM Consolidated

 

$

24,747

 

$

26,157

 

 

 

 

 

 

 

Pre-tax income:

 

 

 

 

 

Total reportable segments

 

$

5,389

 

$

5,484

 

Amortization of acquired intangible assets

 

(178

)

(158

)

Acquisition-related charges

 

(10

)

(21

)

Non-operating retirement-related (costs)/income

 

(258

)

29

 

Eliminations of internal transactions

 

(322

)

(271

)

Unallocated corporate amounts

 

453

**

(35

)

Total IBM Consolidated

 

$

5,074

 

$

5,027

 

 

 

*  Reclassified to conform with 2012 presentation.

 

** Includes Retail Stores Solutions divestiture gain of $447 million. See Note 9, “Acquisitions/Divestitures,” on page 33 for additional information.

 

SEGMENT INFORMATION

 

 

 

Global Services

 

 

 

 

 

 

 

 

 

 

 

Global

 

Global

 

 

 

 

 

 

 

 

 

 

 

Technology

 

Business

 

 

 

Systems and

 

Global

 

Total

 

(Dollars in millions)

 

Services

 

Services

 

Software

 

Technology

 

Financing

 

Segments

 

For the nine months ended September 30, 2012:

 

 

 

 

 

 

 

 

 

 

 

 

 

External revenue

 

$

29,952

 

$

13,846

 

$

17,533

 

$

11,903

 

$

1,478

 

$

74,713

 

Internal revenue

 

869

 

538

 

2,459

 

491

 

1,492

 

5,848

 

Total revenue

 

$

30,821

 

$

14,384

 

$

19,992

 

$

12,394

 

$

2,970

 

$

80,561

 

Pre-tax income

 

$

4,934

 

$

2,142

 

$

6,793

 

$

253

 

$

1,516

 

$

15,637

 

Revenue year-to-year change

 

(1.8

)%

(4.2

)%

1.4

%

(10.4

)%

(3.5

)%

(3.0

)%

Pre-tax income year-to-year change

 

13.3

%

(1.1

)%

8.5

%

(70.0

)%

1.3

%

3.4

%

Pre-tax income margin

 

16.0

%

14.9

%

34.0

%

2.0

%

51.0

%

19.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the nine months ended September 30, 2011:

 

 

 

 

 

 

 

 

 

 

 

 

 

External revenue

 

$

30,427

 

$

14,407

 

$

17,295

 

$

13,182

 

$

1,555

 

$

76,866

 

Internal revenue

 

943

 

604

 

2,425

 

652

 

1,524

 

6,148

 

Total revenue

 

$

31,370

 

$

15,012

 

$

19,720

 

$

13,834

 

$

3,078

 

$

83,015

 

Pre-tax income

 

$

4,353

 

$

2,166

 

$

6,260

 

$

843

 

$

1,497

 

$

15,118

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income margin

 

13.9

%

14.4

%

31.7

%

6.1

%

48.6

%

18.2

%

 

Reconciliations to IBM as Reported:

 

(Dollars in millions)

 

 

 

 

 

For the nine months ended September 30:

 

2012

 

2011*

 

Revenue:

 

 

 

 

 

Total reportable segments

 

$

80,561

 

$

83,015

 

Eliminations of internal transactions

 

(5,848

)

(6,148

)

Other revenue adjustments

 

490

 

563

 

Total IBM Consolidated

 

$

75,203

 

$

77,430

 

 

 

 

 

 

 

Pre-tax income:

 

 

 

 

 

Total reportable segments

 

$

15,637

 

$

15,118

 

Amortization of acquired intangible assets

 

(517

)

(476

)

Acquisition-related charges

 

(24

)

(32

)

Non-operating retirement-related (costs)/income

 

(454

)

37

 

Eliminations of internal transactions

 

(949

)

(895

)

Unallocated corporate amounts

 

379

**

(23

)

Total IBM Consolidated

 

$

14,071

 

$

13,729

 

 

 

*            Reclassified to conform with 2012 presentation.

 

**     Includes Retail Stores Solutions divestiture gain of $447 million. See Note 9, “Acquisitions/Divestitures,” on page 33 for additional information.