The following tables reflect the results of continuing 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 from continuing operations. These results are used, in part, by the chief operating decision maker, both in evaluating the performance of, and in allocating resources to, each of the segments. See note 1, "Basis of Presentation" for additional information about the new operating segments, that will be effective in the fourth quarter of 2021.

nm – not meaningful

Reconciliations to IBM as Reported:


(Dollars in millions)
For the three months ended September 30:	2021		2020
Revenue:
Total reportable segments	$	19,064	$	19,193
Other — divested businesses		(3)		4
Other revenue		20		46
Eliminations of internal transactions		(1,463)		(1,683)
Total consolidated revenue	$	17,618	$	17,560

Pre-tax income from continuing operations:
Total reportable segments	$	2,644	$	2,962
Amortization of acquired intangible assets		(475)		(459)
Acquisition-related (charges)/income		(4)		(1)
Non-operating retirement-related (costs)/income		(328)		(291)
Separation-related charges		(277)		—
Elimination of internal transactions		(57)		(158)
Other — divested businesses		(10)		(20)
Unallocated corporate amounts		(175)		(206)
Total pre-tax income from continuing operations	$	1,319	$	1,827

SEGMENT INFORMATION


	Cloud &			Global			Global
	Cognitive			Business			Technology						Global			Total
(Dollars in millions)	Software			Services			Services			Systems			Financing			Segments
For the nine months ended September 30, 2021:
External revenue	$	17,227		$	13,002		$	18,866		$	4,251		$	702		$	54,047
Internal revenue		2,322			166			956			606			581			4,631
Total revenue	$	19,549		$	13,168		$	19,822		$	4,857		$	1,283		$	58,678
Pre-tax income/(loss) from continuing operations	$	4,822		$	1,349		$	903		$	(33)		$	618		$	7,659
Revenue year-to-year change		3.0	%		8.5	%		(1.7)	%		(4.9)	%		(14.3)	%		1.4	%
Pre-tax income year-to-year change		7.8	%		12.1	%		91.9	%		nm			9.1	%		14.2	%
Pre-tax income/(loss) margin		24.7	%		10.2	%		4.6	%		(0.7)	%		48.1	%		13.1	%

For the nine months ended September 30, 2020:
External revenue	$	16,540		$	11,992		$	19,245		$	4,477		$	837		$	53,090
Internal revenue		2,431			150			911			628			660			4,780
Total revenue	$	18,971		$	12,142		$	20,155		$	5,106		$	1,497		$	57,870
Pre-tax income/(loss) from continuing operations	$	4,475		$	1,203		$	471		$	(7)		$	566		$	6,708
Pre-tax income/(loss) margin		23.6	%		9.9	%		2.3	%		(0.1)	%		37.8	%		11.6	%

nm – not meaningful

Reconciliations to IBM as Reported:


(Dollars in millions)
For the nine months ended September 30:	2021		2020
Revenue:
Total reportable segments	$	58,678	$	57,870
Other — divested businesses		(2)		36
Other revenue		47		127
Eliminations of internal transactions		(4,631)		(4,780)
Total consolidated revenue	$	54,093	$	53,253

Pre-tax income from continuing operations:
Total reportable segments	$	7,659	$	6,708
Amortization of acquired intangible assets		(1,389)		(1,404)
Acquisition-related (charges)/income		(37)		(3)
Non-operating retirement-related (costs)/income		(998)		(829)
Separation-related charges		(513)		—
Eliminations of internal transactions		(269)		(334)
Other — divested businesses		(34)		(17)
Unallocated corporate amounts		(643)		(773)
Total pre-tax income from continuing operations	$	3,776	$	3,348