EX-12 5 a09-10849_1ex12.htm EX-12

EXHIBIT 12

 

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

FOR THREE MONTHS ENDED MARCH 31,

(UNAUDITED)

 

(Dollars in millions)

 

2009

 

2008

 

 

 

 

 

 

 

Income before income taxes (1)

 

$

3,123

 

$

3,194

 

 

 

 

 

 

 

Add: Fixed charges, excluding capitalized interest

 

455

 

486

 

 

 

 

 

 

 

Income as adjusted before income taxes

 

$

3,578

 

$

3,680

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

Interest expense

 

$

332

 

$

384

 

Capitalized interest

 

3

 

3

 

Portion of rental expense representative of interest

 

123

 

102

 

 

 

 

 

 

 

Total fixed charges

 

$

458

 

$

489

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

7.81

 

7.53

 

 

(1)          Income 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

(UNAUDITED)

 

 

 

Global Services

 

 

 

 

 

 

 

 

 

 

 

Global
Technology

 

Global
Business

 

 

 

Systems
and

 

Global

 

Total

 

(Dollars in millions)

 

Services

 

Services

 

Software

 

Technology

 

Financing

 

Segments

 

For the Three Months Ended March 31, 2009:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External revenue

 

$

8,754

 

$

4,397

 

$

4,539

 

$

3,228

 

$

578

 

$

21,498

 

Internal revenue

 

342

 

232

 

614

 

176

 

390

 

1,754

 

Total revenue

 

$

9,096

 

$

4,629

 

$

5,153

 

$

3,404

 

$

968

 

$

23,251

 

Pre-tax income

 

$

1,104

 

$

521

 

$

1,335

 

$

28

 

$

360

 

$

3,348

 

Revenue year-to-year change

 

(9.6

)%

(10.4

)%

(6.5

)%

(22.9

)%

(5.0

)%

(11.2

)%

Pre-tax income year-to-year change

 

11.7

%

(10.0

)%

5.4

%

(80.7

)%

(7.2

)%

(0.6

)%

Pre-tax income margin

 

12.1

%

11.3

%

25.9

%

0.8

%

37.2

%

14.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended March 31, 2008:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External revenue

 

$

9,677

 

$

4,911

 

$

4,847

 

$

4,219

 

$

633

 

$

24,286

 

Internal revenue

 

388

 

258

 

667

 

195

 

386

 

1,894

 

Total revenue

 

$

10,065

 

$

5,169

 

$

5,514

 

$

4,414

 

$

1,019

 

$

26,180

 

Pre-tax income

 

$

988

 

$

579

 

$

1,267

 

$

145

 

$

388

 

$

3,368

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income margin

 

9.8

%

11.2

%

23.0

%

3.3

%

38.1

%

12.9

%

 

Reconciliations to IBM as Reported:

 

 

 

For the Three
Months Ended

 

For the Three
Months Ended

 

(Dollars in millions)

 

March 31, 2009

 

March 31, 2008

 

Revenue:

 

 

 

 

 

Total reportable segments

 

$

23,251

 

$

26,180

 

Eliminations/other

 

(1,540

)

(1,679

)

Total IBM Consolidated

 

$

21,711

 

$

24,502

 

 

 

 

 

 

 

Pre-tax income:

 

 

 

 

 

Total reportable segments

 

$

3,348

 

$

3,368

 

Eliminations/other

 

(226

)

(170

)

Total IBM Consolidated

 

$

3,122

 

$

3,198

 

 

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