EX-12 3 ibm15q3_ex12.htm EX-12  

                                                                                                                                                                                                           EXHIBIT 12

 

COMPUTATION OF RATIO OF INCOME FROM

CONTINUING OPERATIONS TO FIXED CHARGES

FOR NINE MONTHS ENDED SEPTEMBER 30,

(UNAUDITED)

 

(Dollars in millions)

 

2015

 

2014

Income from continuing operations before income taxes (1)

 

$

10,854

 

$

12,897

 

 

 

 

 

 

 

Add: fixed charges, excluding capitalized interest

 

 

1,085

 

 

1,147

 

 

 

    

 

 

 

Income as adjusted before income taxes

 

$

11,939

 

$

14,044

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

     Interest expense

 

$

747

 

$

774

     Capitalized interest

 

 

(1)

 

 

3

     Portion of rental expense representative of interest

 

 

338

 

 

373

 

 

 

 

 

 

 

Total fixed charges

 

$

1,084

 

$

1,150

 

 

 

 

 

 

 

Ratio of income from continuing operations to fixed charges

 

 

11.02

 

 

12.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Income from continuing operations before income taxes excludes (a) amortization of capitalized interest, and (b) the

      company's share in the income and losses of less-than-fifty percent-owned affiliates.

 

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