EX-99.1 8 a05-12302_4ex99d1.htm EX-99.1

Exhibit 99.1

 

On June 22, 2005, the company filed a Form 8-K, restating its consolidated financial statements and related footnotes to reflect the implementation of SFAS 123(R), Share-Based Payment.  The company adopted the accounting standard in the first quarter of 2005.

 

Following the company’s earnings announcement and the filing of its Form 10Q for the second quarter, the company will file an additional 8-K which will reflect the changes to the company’s management and measurement system and its reportable segments. The changes are discussed in Note 11, on pages 17 and 18.

 

The preceding segment information on pages 75 through 78 reflect the changes in all periods presented.  In order to provide investors with additional historical financial information related to these changes, the following chart includes segment revenue and pre-tax income data for each of the four quarters of 2004 and the first quarter 2005.  Reconciliation information for non-GAAP measures in connection with the revised management structure may be found in Note x, “Segment Information” and pages 107 through 112  to the Consolidated Financial Statements in the company’s Form 8-K filed on June 22, 2005.

 

79


 

Exhibit 99.1

 

Management System Segment View - Unaudited

 

(Dollars in millions)

 

Global
Services

 

Systems &
Technology
Group

 

Software

 

Global
Financing

 

Enterprise
Investments

 

Personal
Computing
Division

 

Total
Segments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QUARTER ENDED MARCH 31, 2005:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External revenue

 

$

11,696

 

$

4,289

 

$

3,551

 

$

579

 

$

292

 

$

2,319

 

$

22,726

 

Internal revenue

 

745

 

241

 

461

 

449

 

2

 

26

 

$

1,924

 

Total revenue

 

$

12,441

 

$

4,530

 

$

4,012

 

$

1,028

 

$

294

 

$

2,345

 

$

24,650

 

Pre-tax income

 

$

816

 

$

62

 

$

822

 

$

391

 

$

(34

)

$

(16

)

$

2,041

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Y-T-Y change

 

5.6

%

1.5

%

3.7

%

8.8

%

6.1

%

-2.1

%

3.9

%

Pre-tax income Y-T-Y change

 

-1.8

%

-50.4

%

9.2

%

7.1

%

39.3

%

57.9

%

3.1

%

Pre-tax income margin

 

6.6

%

1.4

%

20.5

%

38.0

%

-11.6

%

-0.7

%

8.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QUARTER ENDED DECEMBER 31, 2004:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External revenue

 

$

12,605

 

$

6,443

 

$

4,549

 

$

656

 

$

379

 

$

2,968

 

$

27,600

 

Internal revenue

 

819

 

294

 

514

 

412

 

2

 

38

 

2,079

 

Total revenue

 

$

13,424

 

$

6,737

 

$

5,063

 

$

1,068

 

$

381

 

$

3,006

 

$

29,679

 

Pre-tax income

 

$

1,271

 

$

1,059

 

$

1,626

 

$

413

 

$

(36

)

$

36

 

$

4,369

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Y-T-Y change

 

10.0

%

3.4

%

7.4

%

-8.2

%

11.7

%

4.4

%

6.7

%

Pre-tax income Y-T-Y change

 

33.1

%

-2.0

%

18.9

%

31.9

%

25.0

%

148.0

%

21.6

%

Pre-tax income margin

 

9.5

%

15.7

%

32.1

%

38.7

%

-9.4

%

1.2

%

14.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QUARTER ENDED SEPTEMBER 30, 2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External revenue

 

$

11,312

 

$

4,665

 

$

3,621

 

$

634

 

$

257

 

$

2,713

 

$

23,202

 

Internal revenue

 

791

 

276

 

433

 

309

 

2

 

41

 

1,852

 

Total revenue

 

$

12,103

 

$

4,941

 

$

4,054

 

$

943

 

$

259

 

$

2,754

 

$

25,054

 

Pre-tax income

 

$

995

 

$

394

 

$

907

 

$

341

 

$

(58

)

$

2

 

$

2,581

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Y-T-Y change

 

9.3

%

10.4

%

5.8

%

-3.7

%

0.0

%

16.9

%

9.0

%

Pre-tax income Y-T-Y change

 

-3.4

%

42.8

%

24.6

%

19.6

%

3.3

%

101.9

%

19.8

%

Pre-tax income margin

 

8.2

%

8.0

%

22.4

%

36.2

%

-22.4

%

0.1

%

10.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QUARTER ENDED JUNE 30, 2004:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External revenue

 

$

11,272

 

$

4,640

 

$

3,458

 

$

652

 

$

269

 

$

2,679

 

$

22,970

 

Internal revenue

 

759

 

285

 

457

 

286

 

2

 

31

 

1,820

 

Total revenue

 

$

12,031

 

$

4,925

 

$

3,915

 

$

938

 

$

271

 

$

2,710

 

$

24,790

 

Pre-tax income

 

$

921

 

$

562

 

$

852

 

$

339

 

$

(49

)

$

(10

)

$

2,615

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Y-T-Y change

 

6.2

%

10.2

%

1.4

%

-5.1

%

18.9

%

19.2

%

7.1

%

Pre-tax income Y-T-Y change

 

-9.2

%

156.6

%

12.3

%

18.1

%

46.2

%

84.8

%

23.2

%

Pre-tax income margin

 

7.7

%

11.4

%

21.8

%

36.1

%

-18.1

%

-0.4

%

10.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QUARTER ENDED MARCH 31, 2004:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External revenue

 

$

11,024

 

$

4,225

 

$

3,466

 

$

665

 

$

275

 

$

2,377

 

$

22,032

 

Internal revenue

 

762

 

240

 

401

 

280

 

2

 

19

 

1,704

 

Total revenue

 

$

11,786

 

$

4,465

 

$

3,867

 

$

945

 

$

277

 

$

2,396

 

$

23,736

 

Pre-tax income

 

$

831

 

$

125

 

$

753

 

$

365

 

$

(56

)

$

(38

)

$

1,980

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Y-T-Y change

 

8.4

%

13.6

%

10.0

%

-5.1

%

14.5

%

20.5

%

10.2

%

Pre-tax income Y-T-Y change

 

0.8

%

-2.3

%

38.4

%

36.7

%

21.1

%

63.1

%

24.6

%

Pre-tax income margin

 

7.1

%

2.8

%

19.5

%

38.6

%

-20.2

%

-1.6

%

8.3

%

 

80