Exhibits (27 KB)

Exhibit 1
International Business Machines Corporation
Adjustments to GAAP Net Income, Gross Profit Margin, S,G&A, R,D&E, and Diluted Earnings Per Share
(Unaudited, Dollars in millions except per share amounts)
GAAP
Gross profit
S,G&A
R,D&E
Pre-tax income
Net income
Diluted Earnings Per Share
$
$
9,976
5,677
1,509
3,515
2,601
1.97
GAAP
Gross profit
S,G&A
R,D&E
Pre-tax income
Net income
Diluted Earnings Per Share
$
$
10,809
5,061
1,475
4,575
3,386
2.61
First Quarter 2010
Acquisition-related
Retirement-related
Adjustments
Adjustments
$
$
55
(61)
116
82
0.06
$
$
(35)
10
30
(76)
(45)
(0.03)
Operating
(Non-GAAP)
$
$
Second Quarter 2010
Acquisition-related
Retirement-related
Adjustments
Adjustments
$
$
58
(62)
122
84
0.06
$
$
(56)
25
32
(113)
(68)
(0.05)
9,996
5,626
1,539
3,556
2,638
2.00
Operating
(Non-GAAP)
$
$
10,811
5,024
1,507
4,584
3,402
2.62
Exhibit 1 (cont)
International Business Machines Corporation
Adjustments to GAAP Net Income, Gross Profit Margin, S,G&A, R,D&E, and Diluted Earnings Per Share
(Unaudited, Dollars in millions except per share amounts)
GAAP
Gross profit
S,G&A
R,D&E
Pre-tax income
Net income
Diluted Earnings Per Share
$
$
9,431
5,264
1,480
3,122
2,295
1.70
GAAP
Gross profit
S,G&A
R,D&E
Pre-tax income
Net income
Diluted Earnings Per Share
$
$
10,581
5,115
1,434
4,262
3,103
2.32
GAAP
Gross profit
S,G&A
R,D&E
Pre-tax income
Net income
Diluted Earnings Per Share
$
$
10,627
5,013
1,446
4,373
3,214
2.40
GAAP
Gross profit
S,G&A
R,D&E
Pre-tax income
Net income
Diluted Earnings Per Share
$
$
13,145
5,560
1,461
6,381
4,813
3.59
GAAP
Gross profit
S,G&A
R,D&E
Pre-tax income
Net income
Diluted Earnings Per Share
$
$
43,785
20,952
5,820
18,138
13,425
10.01
First Quarter 2009
Acquisition-related
Retirement-related
Adjustments
Adjustments
$
$
52
(73)
125
90
0.07
$
$
(45)
24
26
(94)
(61)
(0.05)
Operating
(Non-GAAP)
$
$
Second Quarter 2009
Acquisition-related
Retirement-related
Adjustments
Adjustments
$
$
49
(73)
122
86
0.06
$
$
(77)
34
35
(145)
(95)
(0.07)
Operating
(Non-GAAP)
$
$
Third Quarter 2009
Acquisition-related
Retirement-related
Adjustments
Adjustments
$
$
50
(74)
124
89
0.07
$
$
(59)
31
31
(121)
(79)
(0.06)
$
53
(72)
127
92
0.07
$
$
(80)
38
30
(149)
(95)
(0.07)
$
$
$
204
(293)
498
357
0.27
$
$
(259)
127
123
(509)
(330)
(0.25)
10,618
4,969
1,477
4,375
3,224
2.41
Operating
(Non-GAAP)
$
$
Full Year 2009
Acquisition-related
Retirement-related
Adjustments
Adjustments
$
10,554
5,076
1,469
4,239
3,094
2.31
Operating
(Non-GAAP)
Fourth Quarter 2009
Acquisition-related
Retirement-related
Adjustments
Adjustments
$
9,438
5,214
1,506
3,153
2,324
1.72
13,119
5,526
1,491
6,359
4,810
3.59
Operating
(Non-GAAP)
$
$
43,730
20,787
5,943
18,126
13,452
10.03
Exhibit 1 (cont)
International Business Machines Corporation
Adjustments to GAAP Net Income, Gross Profit Margin, S,G&A, R,D&E, and Diluted Earnings Per Share
(Unaudited, Dollars in millions except per share amounts)
GAAP
Gross profit
S,G&A
R,D&E
Pre-tax income
Net income
Diluted Earnings Per Share
$
$
10,166
5,620
1,569
3,198
2,319
1.64
GAAP
Gross profit
S,G&A
R,D&E
Pre-tax income
Net income
Diluted Earnings Per Share
$
$
11,599
6,289
1,660
3,814
2,765
1.97
GAAP
Gross profit
S,G&A
R,D&E
Pre-tax income
Net income
Diluted Earnings Per Share
$
$
10,959
5,644
1,579
3,895
2,824
2.04
GAAP
Gross profit
S,G&A
R,D&E
Pre-tax income
Net income
Diluted Earnings Per Share
$
$
12,936
5,832
1,528
5,808
4,427
3.27
GAAP
Gross profit
S,G&A
R,D&E
Pre-tax income
Net income
Diluted Earnings Per Share
$
$
45,661
23,386
6,337
16,715
12,334
8.89
First Quarter 2008
Acquisition-related
Retirement-related
Adjustments
Adjustments
$
$
46
(69)
115
82
0.06
$
$
(69)
26
26
(121)
(76)
(0.05)
Operating
(Non-GAAP)
$
$
Second Quarter 2008
Acquisition-related
Retirement-related
Adjustments
Adjustments
$
$
58
(83)
(24)
165
129
0.09
$
$
(79)
32
29
(140)
(77)
(0.05)
Operating
(Non-GAAP)
$
$
Third Quarter 2008
Acquisition-related
Retirement-related
Adjustments
Adjustments
$
$
55
(79)
134
90
0.07
$
$
(73)
32
27
(132)
(93)
(0.07)
$
55
(75)
130
96
0.07
$
$
(176)
90
31
(297)
(193)
(0.14)
$
$
$
214
(306)
(24)
544
397
0.29
$
$
(398)
179
113
(691)
(439)
(0.32)
10,941
5,596
1,606
3,897
2,821
2.04
Operating
(Non-GAAP)
$
$
Full Year 2008
Acquisition-related
Retirement-related
Adjustments
Adjustments
$
11,578
6,237
1,665
3,839
2,817
2.01
Operating
(Non-GAAP)
Fourth Quarter 2008
Acquisition-related
Retirement-related
Adjustments
Adjustments
$
10,143
5,578
1,596
3,191
2,325
1.65
12,814
5,847
1,559
5,642
4,330
3.20
Operating
(Non-GAAP)
$
$
45,477
23,259
6,426
16,569
12,293
8.86
(Amounts may not add due to rounding)
(The tax impact on the Non-GAAP (Operational) Pre-tax income will be calculated under the same accounting
principles applied to the As Reported Pre-tax income under ACS 740, which employs an annual effective tax rate
concept to the results.)
Exhibit 2
International Business Machines Corporation
Adjustments to Segment Pre-tax Income
(Unaudited, Dollars in millions)
Global Services
Global
Global
Technology
Business
Services
Services
Systems and
Technology
Software
Global
Financing
Total
Segments
1Q10:
External revenue
Internal revenue
Total revenue
Pre-tax income
Pre-tax income margin
$
Non-operating adjustments:
Acquisition-related
Retirement-related
Operating pre-tax income
Operating pre-tax income margin
9,306
320
9,626
964
10.0%
$
4,410
203
4,613
445
9.7%
$
5,018
758
5,776
2,052
35.5%
$
3,385
173
3,559
(170)
-4.8%
5
(12)
3
(3)
108
(32)
1
(28)
957
9.9%
445
9.7%
2,127
36.8%
(197)
-5.5%
$
537
403
941
427
45.4%
$
-
22,657
1,858
24,515
3,719
15.2%
116
(76)
427
45.4%
3,760
15.3%
2Q10:
External revenue
Internal revenue
Total revenue
Pre-tax income
Pre-tax income margin
Non-operating adjustments:
Acquisition-related
Retirement-related
Operating pre-tax income
Operating pre-tax income margin
$
9,234
332
9,566
1,422
14.9%
$
4,483
197
4,680
683
14.6%
$
5,277
690
5,967
1,988
33.3%
$
3,985
202
4,187
221
5.3%
$
544
431
975
463
47.4%
$
23,523
1,852
25,376
4,777
18.8%
4
(27)
6
(11)
113
(39)
(1)
(35)
(1)
122
(113)
1,399
14.6%
678
14.5%
2,062
34.5%
185
4.4%
462
47.3%
4,786
18.9%
Exhibit 2 (cont)
International Business Machines Corporation
Adjustments to Segment Pre-tax Income
(Unaudited, Dollars in millions)
Global Services
Global
Global
Technology
Business
Services
Services
Systems and
Technology
Software
Global
Financing
Total
Segments
1Q09:
External revenue
Internal revenue
Total revenue
Pre-tax income
Pre-tax income margin
Non-operating adjustments:
Acquisition-related
Retirement-related
Operating pre-tax income
Operating pre-tax income margin
$
8,754
342
9,096
1,104
12.1%
$
4,397
232
4,629
521
11.3%
$
4,539
614
5,153
1,335
25.9%
$
3,228
176
3,404
28
0.8%
$
578
390
968
360
37.2%
$
21,498
1,754
23,251
3,348
14.4%
18
(18)
8
(13)
98
(35)
1
(27)
0
(1)
125
(94)
1,104
12.1%
516
11.2%
1,398
27.1%
2
0.1%
359
37.1%
3,379
14.5%
9,108
343
9,451
1,405
14.9%
4,338
223
4,562
608
13.3%
5,166
614
5,780
1,852
32.0%
3,855
244
4,098
333
8.1%
568
447
1,014
465
45.8%
23,035
1,870
24,905
4,663
18.7%
18
(40)
8
(21)
95
(47)
1
(36)
0
(1)
122
(145)
1,383
14.6%
595
13.1%
1,899
32.9%
299
7.3%
463
45.7%
4,640
18.6%
9,434
355
9,789
1,471
15.0%
4,338
214
4,552
659
14.5%
5,114
656
5,770
1,850
32.1%
3,917
260
4,177
225
5.4%
536
419
955
408
42.7%
23,339
1,904
25,243
4,614
18.3%
18
(29)
8
(17)
96
(40)
1
(34)
0
(1)
124
(121)
1,461
14.9%
651
14.3%
1,906
33.0%
192
4.6%
407
42.6%
4,616
18.3%
10,051
347
10,398
1,556
15.0%
4,579
217
4,796
766
16.0%
6,577
793
7,370
3,058
41.5%
5,190
232
5,422
832
15.4%
621
518
1,139
497
43.6%
27,017
2,108
29,125
6,710
23.0%
18
(41)
4
(32)
104
(46)
1
(28)
0
(2)
127
(149)
1,534
14.8%
737
15.4%
3,116
42.3%
805
14.9%
495
43.5%
6,688
23.0%
37,347
1,386
38,734
5,537
14.3%
17,653
887
18,540
2,555
13.8%
21,396
2,677
24,073
8,095
33.6%
16,190
911
17,102
1,419
8.3%
2,302
1,774
4,076
1,730
42.4%
94,889
7,635
102,524
19,335
18.9%
73
(127)
29
(83)
393
(169)
4
(124)
0
(6)
498
(509)
5,482
14.2%
2,501
13.5%
8,319
34.6%
1,298
7.6%
1,724
42.3%
19,323
18.8%
2Q09:
External revenue
Internal revenue
Total revenue
Pre-tax income
Pre-tax income margin
Non-operating adjustments:
Acquisition-related
Retirement-related
Operating pre-tax income
Operating pre-tax income margin
3Q09:
External revenue
Internal revenue
Total revenue
Pre-tax income
Pre-tax income margin
Non-operating adjustments:
Acquisition-related
Retirement-related
Operating pre-tax income
Operating pre-tax income margin
4Q09:
External revenue
Internal revenue
Total revenue
Pre-tax Income
Pre-tax income margin
Non-operating adjustments:
Acquisition-related
Retirement-related
Operating pre-tax income
Operating pre-tax income margin
FY 2009:
External revenue
Internal revenue
Total revenue
Pre-tax income
Pre-tax income margin
Non-operating adjustments:
Acquisition-related
Retirement-related
Operating pre-tax income
Operating pre-tax income margin
Exhibit 2 (cont)
International Business Machines Corporation
Adjustments to Segment Pre-tax Income
(Unaudited, Dollars in millions)
Global Services
Global
Global
Technology
Business
Services
Services
Systems and
Technology
Software
Global
Financing
Total
Segments
1Q08:
External revenue
Internal revenue
Total revenue
Pre-tax income
Pre-tax income margin
$
Non-operating adjustments:
Acquisition-related
Retirement-related
Operating pre-tax income
Operating pre-tax income margin
9,677
388
10,065
988
9.8%
$
4,911
258
5,169
579
11.2%
$
4,847
667
5,514
1,267
23.0%
$
4,219
195
4,414
145
3.3%
$
633
386
1,019
388
38.1%
$
24,286
1,894
26,180
3,368
12.9%
21
(47)
10
(10)
84
(33)
(31)
(1)
115
(121)
962
9.6%
580
11.2%
1,318
23.9%
115
2.6%
387
38.0%
3,361
12.8%
2Q08:
External revenue
Internal revenue
Total revenue
Pre-tax income
Pre-tax income margin
$
Non-operating adjustments:
Acquisition-related
Retirement-related
Operating pre-tax income
Operating pre-tax income margin
10,100
390
10,489
994
9.5%
$
5,107
259
5,366
637
11.9%
$
5,574
719
6,293
1,492
23.7%
$
5,212
215
5,427
400
7.4%
$
634
525
1,159
428
36.9%
$
26,626
2,108
28,734
3,951
13.8%
21
(44)
10
(22)
107
(36)
26
(36)
(1)
165
(140)
971
9.3%
625
11.6%
1,564
24.8%
390
7.2%
427
36.8%
3,976
13.8%
3Q08:
External revenue
Internal revenue
Total revenue
Pre-tax income
Pre-tax income margin
$
Non-operating adjustments:
Acquisition-related
Retirement-related
Operating pre-tax income
Operating pre-tax income margin
9,864
384
10,248
1,189
11.6%
$
4,900
259
5,160
724
14.0%
$
5,249
655
5,904
1,527
25.9%
$
4,431
223
4,654
283
6.1%
$
633
456
1,090
349
32.0%
$
25,077
1,978
27,055
4,072
15.1%
21
(41)
9
(21)
103
(35)
1
(34)
(1)
134
(132)
1,169
11.4%
712
13.8%
1,595
27.0%
250
5.4%
348
31.9%
4,074
15.1%
4Q08:
External revenue
Internal revenue
Total revenue
Pre-tax income
Pre-tax income margin
$
Non-operating adjustments:
Acquisition-related
Retirement-related
Operating pre-tax income
Operating pre-tax income margin
9,623
383
10,007
1,437
14.4%
$
4,709
267
4,977
740
14.9%
$
6,420
720
7,139
2,789
39.1%
$
5,425
249
5,674
722
12.7%
21
(101)
8
(76)
100
(62)
1
(54)
1,356
13.6%
672
13.5%
2,828
39.6%
669
11.8%
$
660
525
1,184
452
38.2%
$
-
26,837
2,144
28,981
6,140
21.2%
(4)
130
(297)
448
37.8%
5,973
20.6%
FY 2008:
External revenue
Internal revenue
Total revenue
Pre-tax income
Pre-tax income margin
Non-operating adjustments:
Acquisition-related
Retirement-related
Operating pre-tax income
Operating pre-tax income margin
(Amounts may not add due to rounding)
$
39,264
1,546
40,810
4,607
11.3%
$
19,628
1,044
20,671
2,681
13.0%
$
22,089
2,761
24,850
7,075
28.5%
$
19,287
882
20,169
1,550
7.7%
$
2,559
1,892
4,451
1,617
36.3%
$
102,827
8,125
110,951
17,531
15.8%
84
(234)
38
(129)
395
(166)
28
(155)
(7)
544
(691)
4,458
10.9%
2,589
12.5%
7,304
29.4%
1,423
7.1%
1,610
36.2%
17,384
15.7%
Exhibit 3
International Business Machines Corporation
Adjustments to Segment Gross Profit
(Unaudited, Dollars in millions except per share amounts)
Global Services
Global
Global
Business
Technology
Services
Services
Systems and
Technology
Software
Global
Financing
Total
Segments
1Q10:
External revenue
External gross profit
External gross profit margin
$
Non-operating adjustments:
Acquisition-related
Retirement-related
Operating gross profit
Operating gross profit margin
9,306
3,197
34.4%
$
4,410
1,202
27.3%
$
5,018
4,244
84.6%
$
3,385
1,137
33.6%
1
(12)
0
(4)
53
(3)
0
(16)
3,186
34.2%
1,199
27.2%
4,294
85.6%
1,122
33.1%
$
537
267
49.8%
$
-
22,657
10,048
44.3%
55
(35)
0
267
49.8%
10,067
44.4%
2Q10:
External revenue
External gross profit
External gross profit margin
Non-operating adjustments:
Acquisition-related
Retirement-related
Operating gross profit
Operating gross profit margin
$
9,234
3,191
34.6%
$
4,483
1,277
28.5%
$
5,277
4,595
87.1%
$
3,985
1,439
36.1%
2
(24)
0
(11)
56
(5)
0
(16)
3,168
34.3%
1,266
28.2%
4,647
88.1%
1,423
35.7%
$
544
273
50.1%
0
273
50.1%
$
23,523
10,773
45.8%
58
(56)
10,776
45.8%
Exhibit 3 (cont)
International Business Machines Corporation
Adjustments to Segment Gross Profit
(Unaudited, Dollars in millions except per share amounts)
Global Services
Global
Global
Business
Technology
Services
Services
Systems and
Technology
Software
Global
Financing
Total
Segments
1Q09:
External revenue
External gross profit
External gross profit margin
Non-operating adjustments:
Acquisition-related
Retirement-related
Operating gross profit
Operating gross profit margin
$
8,754
2,968
33.9%
$
4,397
1,166
26.5%
$
4,539
3,822
84.2%
$
3,228
1,097
34.0%
$
578
265
45.9%
-
$
21,498
9,319
43.3%
8
(14)
(13)
44
(5)
0
(13)
2,962
33.8%
1,154
26.2%
3,862
85.1%
1,084
33.6%
265
45.9%
9,327
43.4%
9,108
3,167
34.8%
4,338
1,178
27.2%
5,166
4,436
85.9%
3,855
1,431
37.1%
568
268
47.1%
23,035
10,479
45.5%
8
(33)
(19)
41
(7)
0
(17)
3,142
34.5%
1,159
26.7%
4,471
86.5%
1,413
36.7%
268
47.1%
10,452
45.4%
9,434
3,349
35.5%
4,338
1,245
28.7%
5,114
4,381
85.7%
3,917
1,395
35.6%
536
238
44.4%
23,339
10,608
45.5%
8
(22)
(15)
41
(6)
0
(15)
3,335
35.4%
1,230
28.4%
4,417
86.4%
1,379
35.2%
238
44.4%
10,600
45.4%
10,051
3,597
35.8%
4,579
1,389
30.3%
6,577
5,765
87.7%
5,190
2,205
42.5%
621
323
52.0%
27,017
13,279
49.1%
9
(33)
(30)
44
(5)
0
(12)
3,574
35.6%
1,359
29.7%
5,804
88.2%
2,192
42.2%
323
52.0%
13,253
49.1%
37,347
13,081
35.0%
17,653
4,979
28.2%
21,396
18,405
86.0%
16,190
6,127
37.8%
2,302
1,093
47.5%
94,889
43,685
46.0%
34
(102)
(77)
170
(22)
0
(58)
13,014
34.8%
4,902
27.8%
18,553
86.7%
6,069
37.5%
0
52
(45)
2Q09:
External revenue
External gross profit
External gross profit margin
Non-operating adjustments:
Acquisition-related
Retirement-related
Operating gross profit
Operating gross profit margin
0
49
(77)
3Q09:
External revenue
External gross profit
External gross profit margin
Non-operating adjustments:
Acquisition-related
Retirement-related
Operating gross profit
Operating gross profit margin
0
50
(59)
4Q09:
External revenue
External gross profit
External gross profit margin
Non-operating adjustments:
Acquisition-related
Retirement-related
Operating gross profit
Operating gross profit margin
0
53
(80)
FY 2009:
External revenue
External gross profit
External gross profit margin
Non-operating adjustments:
Acquisition-related
Retirement-related
Operating gross profit
Operating gross profit margin
0
1,093
47.5%
204
(259)
43,631
46.0%
Exhibit 3 (cont)
International Business Machines Corporation
Adjustments to Segment Gross Profit
(Unaudited, Dollars in millions except per share amounts)
Global Services
Global
Global
Business
Technology
Services
Services
Systems and
Technology
Software
Global
Financing
Total
Segments
1Q08:
External revenue
External gross profit
External gross profit margin
$
Non-operating adjustments:
Acquisition-related
Retirement-related
Operating gross profit
Operating gross profit margin
9,677
3,032
31.3%
$
4,911
1,228
25.0%
$
4,847
4,066
83.9%
$
4,219
1,562
37.0%
8
(41)
0
(9)
38
(5)
0
(14)
2,998
31.0%
1,219
24.8%
4,099
84.6%
1,548
36.7%
$
633
321
50.8%
$
-
24,286
10,209
42.0%
46
(69)
0
321
50.8%
10,186
41.9%
2Q08:
External revenue
External gross profit
External gross profit margin
$
Non-operating adjustments:
Acquisition-related
Retirement-related
Operating gross profit
Operating gross profit margin
10,100
3,189
31.6%
$
5,107
1,318
25.8%
$
5,574
4,717
84.6%
$
5,212
2,013
38.6%
8
(38)
0
(22)
50
(5)
0
(15)
3,160
31.3%
1,297
25.4%
4,762
85.4%
1,998
38.3%
$
634
351
55.3%
$
-
26,626
11,589
43.5%
58
(79)
0
351
55.4%
11,567
43.4%
3Q08:
External revenue
External gross profit
External gross profit margin
$
Non-operating adjustments:
Acquisition-related
Retirement-related
Operating gross profit
Operating gross profit margin
9,864
3,222
32.7%
$
4,900
1,342
27.4%
$
5,249
4,447
84.7%
$
4,431
1,602
36.2%
8
(34)
0
(20)
47
(5)
0
(15)
3,197
32.4%
1,322
27.0%
4,489
85.5%
1,588
35.8%
$
633
311
49.1%
$
-
25,077
10,924
43.6%
55
(73)
0
311
49.1%
10,906
43.5%
4Q08:
External revenue
External gross profit
External gross profit margin
$
Non-operating adjustments:
Acquisition-related
Retirement-related
Operating gross profit
Operating gross profit margin
9,623
3,359
34.9%
$
4,709
1,349
28.7%
$
6,420
5,629
87.7%
$
5,425
2,164
39.9%
8
(79)
(65)
46
(12)
(21)
3,288
34.2%
1,284
27.3%
5,665
88.2%
2,144
39.5%
$
660
329
50.0%
$
0
0
26,837
12,831
47.8%
55
(176)
329
50.0%
12,711
47.4%
FY 2008:
External revenue
External gross profit
External gross profit margin
Non-operating adjustments:
Acquisition-related
Retirement-related
Operating gross profit
Operating gross profit margin
(Amounts may not add due to rounding)
$
39,264
12,802
32.6%
$
19,628
5,238
26.7%
$
22,089
18,859
85.4%
$
19,287
7,341
38.1%
33
(192)
0
(116)
181
(27)
0
(64)
12,643
32.2%
5,122
26.1%
19,015
86.1%
7,277
37.7%
$
2,559
1,313
51.3%
0
1,313
51.3%
$
102,827
45,553
44.3%
214
(398)
45,370
44.1%