EX-12 4 ex-12.txt STATEMENT RE: COMPUTATION OF RATIOS EXHIBIT 12 COMPUTATION OF RATIO OF NET INCOME TO FIXED CHARGES AND NET INCOME TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (UNAUDITED) (Dollars in millions)
For Six Months Ended -------------------------------- June 30, 2001 June 30, 2000 ------------- ------------- Income before income taxes (1) $ 5,418 $ 4,926 Add: Fixed charges, excluding capitalized interest 899 905 --------- --------- Income as adjusted before income taxes $ 6,317 $ 5,831 ========= ========= Fixed charges: Interest expense $ 672 $ 685 Capitalized interest 14 15 Portion of rental expense representative of interest 227 220 --------- --------- Total fixed charges $ 913 $ 920 ========= ========= Preferred stock dividends (2) 14 14 --------- --------- Combined fixed charges and preferred stock dividends $ 927 $ 934 ========= ========= Ratio of net income to fixed charges 6.92 6.33 Ratio of net income to combined fixed charges and preferred stock dividends 6.81 6.24
(1) Income before income taxes excludes the company's share in the income and losses of less-than-fifty percent-owned affiliates. (2) Included in the ratio computation are preferred stock dividends of $10 million for the first six months of 2001 and 2000, or $14 million, respectively, representing the pre-tax income that would be required to cover those dividend requirements based on the company's effective tax rate for the six months ended June 30, 2001 and 2000. - 25 - (THIS PAGE INTENTIONALLY LEFT BLANK) - 26 - SEGMENT INFORMATION (UNAUDITED)
Hardware Segments ----------------------------------- Personal and Global Printing Enterprise Global Enterprise Total (Dollars in Millions) Services Technology Systems Systems Software Financing Investments Segments --------------------------------------------------------------------------------------------------------------------------------- THREE MONTHS ENDED JUNE 30, 2001: External revenue $8,742 $ 2,120 $ 3,067 $3,477 $ 3,036 $ 838 $ 287 $ 21,567 Internal revenue 650 618 14 205 236 217 -- 1,940 ------ ------- ------- ------ ------- ------- ----- -------- Total revenue $9,392 $ 2,738 $ 3,081 $3,682 $ 3,272 $ 1,055 $ 287 $ 23,507 ====== ======= ======= ====== ======= ======= ===== ======== Pre-tax income (loss) $1,307 $ 46 $ (8) $ 526 $ 711 $ 291 $ (27) $ 2,846 ====== ======= ======= ====== ======= ======= ===== ======== Revenue year-to-year change 6.9% 0.2% (17.6)% 3.3% Pre-tax income year-to-year change 22.3% (77.6)% (300.0)% 30.8% (3.5)% (3.5)% (10.9)% (0.5)% Pre-tax income margin 13.9% 1.7% (0.3)% 14.3% (3.4)% (4.9)% 75.9% 9.3% 21.7% 27.6% (9.4)% 12.1% THREE MONTHS ENDED JUNE 30, 2000*: External revenue $8,184 $ 2,023 $ 3,729 $3,392 $ 3,182 $ 829 $ 321 $ 21,660 Internal revenue 600 709 12 172 209 264 1 1,967 ------ ------- ------- ------ ------- ------- ----- -------- Total revenue $8,784 $ 2,732 $ 3,741 $3,564 $ 3,391 $ 1,093 $ 322 $ 23,627 ====== ======= ======= ====== ======= ======= ===== ======== Pre-tax income (loss) $1,069 $ 205 $ (2) $ 402 $ 736 $ 306 $(112) $ 2,604 ====== ======= ======= ====== ======= ======= ===== ======== Pre-tax income margin 12.2% 7.5% (0.1)% 11.3% 21.7% 28.0% (34.8)% 11.0%
* Reclassified to conform with 2001 presentation. RECONCILIATIONS TO IBM AS REPORTED:
Three Months Ended Three Months Ended (Dollars in Millions) June 30, 2001 June 30, 2000 ------------- ------------- Revenue: Total reportable segments $ 23,507 $ 23,627 Eliminations/other (1,939) (1,976) -------- -------- Total IBM Consolidated $ 21,568 $ 21,651 ======== ======== Pretax income: Total reportable segments $ 2,846 $ 2,604 Eliminations/other 56 169 -------- -------- Total IBM Consolidated $ 2,902 $ 2 ,773 ======== ========
- 27 - & - 28 - SEGMENT INFORMATION (UNAUDITED)
Hardware Segments ---------------------------------- Personal and Global Printing Enterprise (Dollars in Millions) Services Technology Systems Systems Software Financing Investments Segments ---------------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED JUNE 30, 2001: External revenue $17,213 $ 4,437 $ 6,243 $6,613 $ 5,954 $ 1,672 $ 540 $42,672 Internal revenue 1,239 1,167 32 372 450 443 1 3,704 ------- ------- ------- ------ ------- ------- ----- ------- Total revenue $18,452 $ 5,604 $ 6,275 $6,985 $ 6,404 $ 2,115 $ 541 $46,376 ======= ======= ======= ====== ======= ======= ===== ======= Pre-tax income (loss) $ 2,375 $ 177 $ (66) $ 917 $ 1,297 $ 564 $(167) $ 5,097 ======= ======= ======= ====== ======= ======= ===== ======= Revenue year-to-year change 9.0% 10.4% (8.7)% 4.7% (1.4)% (0.6)% (18.5)% 3.4% Pre-tax income year-to-year change 14.9% (14.5)% 28.3% 18.9% (1.5)% (5.1)% (7.7)% 8.2% Pre-tax income margin 12.9% 3.2% (1.1)% 13.1% 20.3% 26.7% (30.9)% 11.0% SIX MONTHS ENDED JUNE 30, 2000*: External revenue $15,736 $ 3,576 $ 6,849 $6,336 $ 6,109 $ 1,657 $ 662 $40,925 Internal revenue 1,195 1,500 22 337 384 470 2 3,910 ------- ------- ------- ------ ------- ------- ----- ------- Total revenue $16,931 $ 5,076 $ 6,871 $6,673 $ 6,493 $ 2,127 $ 664 $44,835 ======= ======= ======= ====== ======= ======= ===== ======= Pre-tax income (loss) $ 2,067 $ 207 $ (92) $ 771 $ 1,317 $ 594 $(155) $ 4,709 ======= ======= ======= ====== ======= ======= ===== ======= Pre-tax income margin 12.2% 4.1% (1.3)% 11.6% 20.3% 27.9% (23.3)% 10.5%
* Reclassified to conform with 2001 presentation. RECONCILIATIONS TO IBM AS REPORTED:
Six Months Ended Six Months Ended (Dollars in Millions) June 30, 2001 June 30, 2000 ---------------- ---------------- Revenue: Total reportable segments $ 46,376 $ 44,835 Eliminations/other (3,764) (3,836) -------- -------- Total IBM Consolidated $ 42,612 $ 40,999 ======== ======== Pretax income: Total reportable segments $ 5 ,097 $ 4,709 Eliminations/other 294 234 -------- -------- Total IBM Consolidated $ 5,391 $ 4,943 ======== ========
- 29 - & - 30 - EXHIBITS OMITTED FROM THIS COPY IBM's Definitive Proxy Statement dated March 12, 2001. Copies of these exhibits may be obtained without charge from EquiServe, First Chicago Trust Division, Suite 4688, P.O. Box 2530, Jersey City, New Jersey 07303-2530 - 31 -