Table:
| ($ in millions) |  |  |  |
| --- | --- | --- | --- |
| For the year ended December 31: | 2019 | 2018 | Yr.-to-Yr. Percent Change |
| Interest expense | $1,344 | $723 | 85.9% |
| Non-operating adjustment |  |  |  |
| Acquisition-related charges | (228) | — | NM |
| Operating (non-GAAP) interest expense | $1,116 | $723 | 54.4 |
Paragraphs:
Interest Expense
NM-not meaningful
Interest expense increased $621 million compared to 2018. Interest expense is presented in cost of financing in the Consolidated Income Statement only if the related external borrowings are to support the Global Financing external business. Overall interest expense (excluding capitalized interest) in 2019 was $1,952 million, an increase of $473 million year to year, driven by a higher average debt balance and higher interest rates as we issued debt to finance the Red Hat acquisition.
Operating (non-GAAP) interest expense increased $393 million compared to the prior-year period. It excludes the Red Hat pre-closing debt financing costs.
Question:
What is excluded from the Operating (non-GAAP) interest expense?
Answer: It excludes the Red Hat pre-closing debt financing costs.