Non-GAAP operating expense (research & development expenses and selling, general and administration expenses) declined 16% year over year. On a GAAP basis operating expenses increased year over year on Red Hat acquisition synergies and improving operational efficiencies. Currently, IBM continues to invest in rapidly growing fields like hybrid cloud, AI, security and blockchain. Pre-tax margin from continuing operations contracted 590 bps on a year-over-year basis to 13.3%. Balance Sheet & Cash Flow Details IBM ended third-quarter 2019 with $10.82 billion in total cash and marketable securities compared with $45.4billion in the previous quarter. Total debt (including current portion) was $66.3 billion (which includes $23.1 billion from Global Financing debt), down from $73 million from the previous quarter.