EX-12 7 a04-12261_1ex12.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)

 

 

 

2004

 

2003

 

 

 

 

 

 

 

Income from continuing operations before income taxes (1)

 

$

7,600

 

$

6,989

 

 

 

 

 

 

 

Add: Fixed charges, excluding capitalized interest

 

767

 

843

 

 

 

 

 

 

 

Income as adjusted before income taxes

 

$

8,367

 

$

7,832

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

Interest expense

 

$

417

 

$

501

 

Capitalized interest

 

8

 

11

 

Portion of rental expense representative of interest

 

350

 

342

 

 

 

 

 

 

 

Total fixed charges

 

$

775

 

$

854

 

Ratio of income from continuing operations to fixed charges

 

10.80

 

9.17

 

 

(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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64


 

SEGMENT INFORMATION - ON CONTINUING OPERATIONS BASIS

(UNAUDITED)

 

 

 

Hardware Segments

 

(Dollars in millions)

 

Global
Services

 

Systems and
Technology
Group

 

Personal
Systems
Group

 

Three Months Ended September 30, 2004:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External revenue

 

$

11,392

 

$

4,117

 

$

3,261

 

Internal revenue

 

791

 

265

 

52

 

Total revenue

 

$

12,183

 

$

4,382

 

$

3,313

 

Pre-tax income (loss)

 

$

1,157

 

$

417

 

$

54

 

Revenue year-to-year change

 

10.0

%

9.7

%

16.7

%

Pre-tax income year-to-year change

 

(4.4

)%

32.4

%

nm

%

Pre-tax income margin

 

9.5

%

9.5

%

1.6

%

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2003:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External revenue

 

$

10,383

 

$

3,781

 

$

2,796

 

Internal revenue

 

691

 

213

 

43

 

Total revenue

 

$

11,074

 

$

3,994

 

$

2,839

 

Pre-tax income (loss)

 

$

1,210

 

$

315

 

$

(50

)

 

 

 

 

 

 

 

 

Pre-tax income margin

 

10.9

%

7.9

%

(1.8

)%

 

Reconciliations to IBM as Reported:

 

 

 

Three Months Ended
September 30, 2004

 

Three Months Ended
September 30, 2003

 

(Dollars in millions)

 

 

 

 

 

Revenue:

 

 

 

 

 

Total reportable segments

 

$

25,134

 

$

22,976

 

Eliminations/other

 

(1,705

)

(1,454

)

Total IBM Consolidated

 

$

23,429

 

$

21,522

 

Pretax income:

 

 

 

 

 

Total reportable segments

 

$

2,935

 

$

2,571

 

Eliminations/other

 

(404

)

(22

)

Total IBM Consolidated

 

$

2,531

 

$

2,549

 

 

65


 

(Dollars in millions)

 

Software

 

Global
Financing

 

Enterprise
Investments

 

Total
Segments

 

Three Months Ended September 30, 2004:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External revenue

 

$

3,621

 

$

634

 

$

257

 

$

23,282

 

Internal revenue

 

433

 

309

 

2

 

1,852

 

Total revenue

 

$

4,054

 

$

943

 

$

259

 

$

25,134

 

Pre-tax income (loss)

 

$

1,011

 

$

351

 

$

(55

)

$

2,935

 

Revenue year-to-year change

 

 

 

 

 

 

 

 

 

Pre-tax income year-to-year change

 

5.8

%

(3.7

)%

0.0

%

9.4

%

Pre-tax income margin

 

17.8

%

20.2

%

(1.9

)%

14.2

%

 

 

24.9

%

37.2

%

(21.2

)%

11.7

%

Three Months Ended September 30, 2003:

 

 

 

 

 

 

 

 

 

External revenue

 

$

3,461

 

$

713

 

$

257

 

$

21,391

 

Internal revenue

 

370

 

266

 

2

 

1,585

 

Total revenue

 

$

3,831

 

$

979

 

$

259

 

$

22,976

 

Pre-tax income (loss)

 

$

858

 

$

292

 

$

(54

)

$

2,571

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income margin

 

22.4

%

29.8

%

(20.8

)%

11.2

%

 

66


 

SEGMENT INFORMATION - ON CONTINUING OPERATIONS BASIS

(UNAUDITED)

 

 

 

Hardware Segments

 

(Dollars in millions)

 

Global
Services

 

Systems and
Technology
Group

 

Personal
Systems
Group

 

Nine Months Ended September 30, 2004:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External revenue

 

$

33,818

 

$

12,047

 

$

9,252

 

Internal revenue

 

2,312

 

777

 

115

 

Total revenue

 

$

36,130

 

$

12,824

 

$

9,367

 

Pre-tax income (loss)

 

$

3,237

 

$

1,190

 

$

70

 

 

 

 

 

 

 

 

 

Revenue year-to-year change

 

8.6

%

11.9

%

16.6

%

Pre-tax income year-to-year change

 

(3.7

)%

62.1

%

nm

%

Pre-tax income margin

 

9.0

%

9.3

%

0.7

%

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2003:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External revenue

 

$

31,187

 

$

10,875

 

$

7,909

 

Internal revenue

 

2,085

 

590

 

123

 

Total revenue

 

$

33,272

 

$

11,465

 

$

8,032

 

Pre-tax income (loss)

 

$

3,361

 

$

734

 

$

(127

)

 

 

 

 

 

 

 

 

Pre-tax income margin

 

10.1

%

6.4

%

(1.6%

)

 

Reconciliations to IBM as Reported:

 

(Dollars in millions)

 

Nine Months Ended
September 30, 2004

 

Nine Months Ended
September 30, 2003

 

Revenue:

 

 

 

 

 

Total reportable segments

 

$

73,790

 

$

67,669

 

Eliminations/other

 

(4,958

)

(4,451

)

Total IBM Consolidated

 

$

68,832

 

$

63,218

 

 

 

 

 

 

 

Pretax income:

 

 

 

 

 

Total reportable segments

 

$

8,240

 

$

6,968

 

Eliminations/other

 

(576

)

28

 

Total IBM Consolidated

 

$

7,664

 

$

6,996

 

 

67


 

(Dollars in millions)

 

Software

 

Global
Financing

 

Enterprise
Investments

 

Total
Segments

 

Nine Months Ended September 30, 2004:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External revenue

 

$

10,545

 

$

1,951

 

$

801

 

$

68,414

 

Internal revenue

 

1,291

 

875

 

6

 

5,376

 

Total revenue

 

$

11,836

 

$

2,826

 

$

807

 

$

73,790

 

Pre-tax income (loss)

 

$

2,823

 

$

1,073

 

$

(153

)

$

8,240

 

 

 

 

 

 

 

 

 

 

 

Revenue year-to-year change

 

5.6

%

(4.6

)%

10.7

%

9.0

%

Pre-tax income year-to-year change

 

20.3

%

24.6

%

26.4

%

18.3

%

Pre-tax income margin

 

23.9

%

38.0

%

(19.0

)%

11.2

%

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2003:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External revenue

 

$

10,061

 

$

2,095

 

$

725

 

$

62,852

 

Internal revenue

 

1,147

 

868

 

4

 

4,817

 

Total revenue

 

$

11,208

 

$

2,963

 

$

729

 

$

67,669

 

Pre-tax income (loss)

 

$

2,347

 

$

861

 

$

(208

)

$

6,968

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income margin

 

20.9

%

29.1

%

(28.5

)%

10.3

%

 

68