INTERNATIONAL BUSINESS MACHINES CORP | 2013 | FY | 3

Reconciliations of IBM as Reported
($ in millions)
For the year ended December 31:201320122011
Revenue
Total reportable segments$ 107,115$ 111,826$ 114,440
Other revenue and adjustments 478 577 722
Elimination of internal transactions (7,843) (7,896) (8,246)
Total IBM consolidated revenue$ 99,751$ 104,507$ 106,916
($ in millions)
For the year ended December 31:201320122011
Pre-tax income
Total reportable segments$ 22,967$ 24,015$ 22,904
Amortization of acquired intangible assets (758) (703) (629)
Acquisition-related charges (46) (36) (46)
Non-operating retirement- related (costs)/income (1,062) (538) 72
Elimination of internal transactions (1,480) (1,197) (1,243)
Unallocated corporate amounts* (98) 361 (56)
Total IBM consolidated pre-tax income$ 19,524$ 21,902$ 21,003

*              The 2013 and 2012 amounts include the gain related to the Retail Store Solutions divestiture. The 2011 amount includes gains related to the sale of Lenovo common stock.

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Management System Segment View
($ in millions)
Global Services Segments
GlobalGlobal
TechnologyBusinessSystems andGlobalTotal
For the year ended December 31:ServicesServicesSoftwareTechnologyFinancingSegments
2013
Assets$ 18,048$ 8,311$ 27,101$ 7,960$ 40,138$ 101,558
Depreciation/amortization of intangibles* 1,670 72 1,211 855 574 4,383
Capital expenditures/investments in intangibles 1,938 69 540 781 467 3,796
Interest income———— 1,904 1,904
Interest expense———— 405 405
2012
Assets$ 15,884$ 8,022$ 26,291$ 8,232$ 38,882$ 97,310
Depreciation/amortization of intangibles* 1,597 75 1,157 786 853 4,470
Capital expenditures/investments in intangibles 1,760 42 618 1,106 708 4,233
Interest income **———— 1,972 1,972
Interest expense ———— 410 410
2011
Assets$ 15,475$ 8,078$ 23,926$ 7,649$ 36,427$ 91,557
Depreciation/amortization of intangibles* 1,713 83 1,062 737 1,145 4,739
Capital expenditures/investments in intangibles 1,838 56 469 1,032 930 4,325
Interest income **———— 2,176 2,176
Interest expense ———— 538 538

*              Segment pre-tax income does not include the amortization of intangible assets.

** Reclassified to conform with 2013 presentation..

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Reconciliations of IBM as Reported
($ in millions)
At December 31:201320122011
Assets
Total reportable segments$ 101,558$ 97,310$ 91,557
Elimination of internal transactions (4,740) (4,943) (5,407)
Unallocated amounts
Cash and marketable securities 9,697 9,779 10,575
Notes and accounts receivable 2,741 3,769 3,526
Deferred tax assets 4,532 5,194 4,865
Plant, other property and equipment 2,505 2,555 2,918
Pension assets 5,551 945 2,837
Other 4,378 4,604 5,562
Total IBM consolidated assets$ 126,223$ 119,213$ 116,433

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($ in millions)
For the year ended December 31:201320122011
Global Technology Services
Services$ 29,953$ 31,161$ 31,746
Maintenance 7,111 7,343 7,515
Systems 1,322 1,574 1,478
Software 164 159 140
Global Business Services
Services$ 18,065$ 18,216$ 18,956
Software 221 208 211
Systems 109 142 118
Software
Software$ 23,420$ 23,144$ 22,921
Services 2,512 2,304 2,022
Systems and Technology
Servers$ 9,646$ 11,980$ 12,362
Storage 3,041 3,411 3,619
Microelectronics OEM 1,463 1,572 1,975
Retail Store Solutions 6 357 753
Microelectronics Services 215 346 277
Global Financing
Financing$ 1,493$ 1,471$ 1,612
Used equipment sales 529 542 490

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Revenue*
($ in millions)
For the year ended December 31:201320122011
United States$34,809$36,270$37,041
Japan9,07110,69710,968
Other countries55,87157,54058,906
Total IBM consolidated revenue$99,751$104,507$106,916

*              Revenues are attributed to countries based on the location of the client.

Plant and Other Property—Net
($ in millions)
At December 31:201320122011
United States$ 6,723$ 6,555$ 6,271
Other countries 6,257 6,299 6,186
Total$ 12,979$ 12,854$ 12,457

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Management System Segment View
($ in millions)
Global Services Segments
GlobalGlobal
TechnologyBusinessSystems andGlobalTotal
For the year ended December 31:ServicesServicesSoftwareTechnologyFinancingSegments
2013
External revenue$ 38,551$ 18,396$ 25,932$ 14,371$ 2,022$ 99,273
Internal revenue 1,063 714 3,191 593 2,282 7,843
Total revenue$ 39,615$ 19,109$ 29,123$ 14,964$ 4,304$ 107,115
Pre-tax income$ 6,983$ 3,214$ 11,106$ (507)$ 2,171$ 22,967
Revenue year-to-year change (4.3)% (0.9)% 1.4% (18.4)% 5.7% (4.2)%
Pre-tax income year-to-year change 0.3% 7.7% 2.7% (141.3)% 6.8% (4.4)%
Pre-tax income margin 17.6% 16.8% 38.1% (3.4)% 50.4% 21.4%
2012
External revenue$ 40,236$ 18,566$ 25,448$ 17,667$ 2,013$ 103,930
Internal revenue 1,166 719 3,274 676 2,060 7,896
Total revenue$ 41,402$ 19,286$ 28,722$ 18,343$ 4,073$ 111,826
Pre-tax income$ 6,961$ 2,983$ 10,810$ 1,227$ 2,034$ 24,015
Revenue year-to-year change (1.7)% (4.0)% 1.8% (7.5)% (2.9)% (2.3)%
Pre-tax income year-to-year change 10.8% (0.8)% 8.4% (24.9)% 1.1% 4.8%
Pre-tax income margin 16.8% 15.5% 37.6% 6.7% 49.9% 21.5%
2011
External revenue$ 40,879$ 19,284$ 24,944$ 18,985$ 2,102$ 106,194
Internal revenue 1,242 797 3,276 838 2,092 8,246
Total revenue$ 42,121$ 20,081$ 28,219$ 19,823$ 4,195$ 114,440
Pre-tax income$ 6,284$ 3,006$ 9,970$ 1,633$ 2,011$ 22,904
Revenue year-to-year change 6.6% 5.6% 10.9% 5.6% 2.8% 7.1%
Pre-tax income year-to-year change 14.3% 18.1% 5.3% 12.2% 2.8% 9.5%
Pre-tax income margin 14.9% 15.0% 35.3% 8.2% 47.9% 20.0%

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