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. |