EX-12 4 a06-9204_1ex12.htm EX-12

EXHIBIT 12

 

COMPUTATION OF RATIO OF INCOME FROM

CONTINUING OPERATIONS TO FIXED CHARGES

FOR THREE MONTHS ENDED MARCH 31,

(UNAUDITED)

 

(Dollars in millions)

 

2006

 

2005

 

 

 

 

 

 

 

Income from continuing operations before income taxes (1)

 

$

2,442

 

$

2,010

 

 

 

 

 

 

 

 

 

Add: Fixed charges, excluding capitalized interest

 

330

 

291

 

 

 

 

 

 

 

Income as adjusted before income taxes

 

$

2,772

 

$

2,301

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

Interest expense

 

$

220

 

$

176

 

Capitalized interest

 

5

 

3

 

Portion of rental expense representative of interest

 

111

 

115

 

 

 

 

 

 

 

Total fixed charges

 

$

335

 

$

294

 

 

 

 

 

 

 

 

 

Ratio of income from continuing operations to fixed charges

 

8.27

 

7.83

 

 

(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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SEGMENT INFORMATION - ON CONTINUING OPERATIONS BASIS

(UNAUDITED)

 

 

 

Global Services

 

 

 

 

 

 

 

 

 

 

 

 

 

Global

 

Global

 

Systems and

 

 

 

 

 

Personal

 

 

 

 

 

Technology

 

Business

 

Technology

 

 

 

Global

 

Computing

 

Total

 

(Dollars in millions)

 

Services

 

Services

 

Group

 

Software

 

Financing

 

Division

 

Segments

 

Quarter Ended March 31, 2006:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External revenue

 

$

7,719

 

$

3,848

 

$

4,419

 

$

3,907

 

$

582

 

$

—

 

$

20,475

 

Internal revenue

 

451

 

336

 

280

 

514

 

364

 

—

 

1,946

 

Total revenue

 

$

8,171

 

$

4,184

 

$

4,699

 

$

4,421

 

$

946

 

$

—

 

$

22,421

 

Pre-tax income (loss)

 

$

844

 

$

356

 

$

(18

)

$

1,021

 

$

414

 

$

—

 

$

2,616

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue year-to-year change

 

(2.7

)%

(0.6

)%

3.7

%

3.3

%

(8.0

)%

nm

 

(9.5

)%

Pre-tax income year-to-year change

 

27.9

%

122.6

%

nm

 

26.9

 

5.9

%

nm

 

28.3

%

Pre-tax income margin

 

10.3

%

8.5

%

(0.4

)%

23.1

%

43.8

%

nm

 

11.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended March 31, 2005:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External revenue

 

$

7,822

 

$

3,887

 

$

4,289

 

$

3,814

 

$

579

 

$

2,319

 

$

22,710

 

Internal revenue

 

574

 

323

 

241

 

463

 

449

 

26

 

2,076

 

Total revenue

 

$

8,396

 

$

4,210

 

$

4,530

 

$

4,277

 

$

1,028

 

$

2,345

 

$

24,786

 

Pre-tax income (loss)

 

$

660

 

$

160

 

$

40

 

$

805

 

$

391

 

$

(16

)

$

2,040

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income margin

 

7.9

%

3.8

%

0.9

%

18.8

%

38.0

%

(0.7

)%

8.2

%

nm - not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliations to IBM as Reported:

 

 

 

Quarter Ended

 

Quarter Ended

 

(Dollars in millions)

 

March 31, 2006

 

March 31, 2005

 

Revenue:

 

 

 

 

 

Total reportable segments

 

$

22,421

 

$

24,786

 

Eliminations/other

 

(1,762

)

(1,878

)

Total IBM Consolidated

 

$

20,659

 

$

22,908

 

 

 

 

 

 

 

Pretax income:

 

 

 

 

 

Total reportable segments

 

$

2,616

 

$

2,040

 

Eliminations/other

 

(177

)

(30

)

Total IBM Consolidated

 

$

2,440

 

$

2,010

 

 

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