EX-12 7 a08-10117_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)

 

2008

 

2007

 

 

 

 

 

 

 

Income from continuing operations before income taxes (1)

 

$

3,194

 

$

2,581

 

 

 

 

 

 

 

Add: Fixed charges, excluding capitalized interest

 

486

 

370

 

 

 

 

 

 

 

Income as adjusted before income taxes

 

$

3,860

 

$

2,951

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

Interest expense

 

$

384

 

$

261

 

Capitalized interest

 

3

 

8

 

Portion of rental expense representative of interest

 

102

 

109

 

 

 

 

 

 

 

Total fixed charges

 

$

489

 

$

378

 

 

 

 

 

 

 

Ratio of income from continuing operations to fixed charges

 

7.53

 

7.81

 

 

(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.

 

47


 

SEGMENT INFORMATION - ON CONTINUING OPERATIONS BASIS

(UNAUDITED)

 

 

 

Global Services

 

 

 

 

 

 

 

 

 

 

 

Global

 

Global

 

 

 

 

 

 

 

 

 

 

 

Technology

 

Business

 

Systems and

 

 

 

Global

 

Total

 

(Dollars in millions)

 

Services

 

Services

 

Technology

 

Software

 

Financing

 

Segments

 

For the Three Months Ended March 31, 2008:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External revenue

 

$

9,677

 

$

4,911

 

$

4,219

 

$

4,847

 

$

633

 

$

24,286

 

Internal revenue

 

388

 

258

 

195

 

667

 

386

 

1,894

 

Total revenue

 

$

10,065

 

$

5,169

 

$

4,414

 

$

5,514

 

$

1,019

 

$

26,180

 

Pre-tax income

 

$

988

 

$

579

 

$

145

 

$

1,267

 

$

388

 

$

3,368

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue year-to-year change

 

15.9

%

15.3

%

(7.8

)%

14.0

%

5.8

%

10.2

%

Pre-tax income year-to-year change

 

45.1

%

23.4

%

50.7

%

22.3

%

3.9

%

26.8

%

Pre-tax income margin

 

9.8

%

11.2

%

3.3

%

23.0

%

38.1

%

12.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended March 31, 2007:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External revenue

 

$

8,258

 

$

4,183

 

$

4,520

 

$

4,251

 

$

614

 

$

21,826

 

Internal revenue

 

425

 

301

 

267

 

585

 

349

 

1,927

 

Total revenue

 

$

8,683

 

$

4,485

 

$

4,787

 

$

4,836

 

$

963

 

$

23,753

 

Pre-tax income

 

$

681

 

$

470

 

$

96

 

$

1,036

 

$

374

 

$

2,657

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income margin

 

7.8

%

10.5

%

2.0

%

21.4

%

38.8

%

11.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliations to IBM as Reported:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three

 

For the Three

 

 

 

 

 

 

 

 

 

 

 

Months Ended

 

Months Ended

 

(Dollars in millions)

 

 

 

 

 

 

 

 

 

March 31, 2008

 

March 31, 2007

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Total reportable segments

 

 

 

 

 

 

 

 

 

$

26,180

 

$

23,753

 

Eliminations/other

 

 

 

 

 

 

 

 

 

(1,679

)

(1,724

)

Total IBM Consolidated

 

 

 

 

 

 

 

 

 

$

24,502

 

$

22,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Total reportable segments

 

 

 

 

 

 

 

 

 

$

3,368

 

$

2,657

 

Eliminations/other

 

 

 

 

 

 

 

 

 

(170

)

(78

)

Total IBM Consolidated

 

 

 

 

 

 

 

 

 

$

3,198

 

$

2,579

 

 

48