| $600,000,000 4.700% Notes due 2026 | | | $1,000,000,000 4.900% Notes due 2034 | |
| $500,000,000 4.600% Notes due 2027 | | | $1,000,000,000 5.250% Notes due 2044 | |
| $500,000,000 4.600% Notes due 2029 | | | $1,400,000,000 5.300% Notes due 2054 | |
| $500,000,000 4.750% Notes due 2031 | | |
| | |
Price to Public(1)
|
| |
Underwriting Discounts
and Commissions |
| |
Proceeds to IIC(1)
|
| |||||||||
Per 2026 Note
|
| | | | 99.876% | | | | | | 0.100% | | | | | | 99.776% | | |
Total
|
| | | $ | 599,256,000 | | | | | $ | 600,000 | | | | | $ | 598,656,000 | | |
Per 2027 Note
|
| | | | 99.842% | | | | | | 0.150% | | | | | | 99.692% | | |
Total
|
| | | $ | 499,210,000 | | | | | $ | 750,000 | | | | | $ | 498,460,000 | | |
Per 2029 Note
|
| | | | 99.854% | | | | | | 0.250% | | | | | | 99.604% | | |
Total
|
| | | $ | 499,270,000 | | | | | $ | 1,250,000 | | | | | $ | 498,020,000 | | |
Per 2031 Note
|
| | | | 99.770% | | | | | | 0.300% | | | | | | 99.470% | | |
Total
|
| | | $ | 498,850,000 | | | | | $ | 1,500,000 | | | | | $ | 497,350,000 | | |
Per 2034 Note
|
| | | | 99.750% | | | | | | 0.450% | | | | | | 99.300% | | |
Total
|
| | | $ | 997,500,000 | | | | | $ | 4,500,000 | | | | | $ | 993,000,000 | | |
Per 2044 Note
|
| | | | 99.596% | | | | | | 0.600% | | | | | | 98.996% | | |
Total
|
| | | $ | 995,960,000 | | | | | $ | 6,000,000 | | | | | $ | 989,960,000 | | |
Per 2054 Note
|
| | | | 99.435% | | | | | | 0.800% | | | | | | 98.635% | | |
Total
|
| | | $ | 1,392,090,000 | | | | | $ | 11,200,000 | | | | | $ | 1,380,890,000 | | |
| Blaylock Van, LLC | | |
C.L. King & Associates
|
| |
Drexel Hamilton
|
|
| | |
Page
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| | | | S-7 | | | |
| | | | S-8 | | | |
| | | | S-16 | | | |
| | | | S-20 | | | |
| | | | S-23 | | | |
| | | | S-26 | | | |
| | | | S-29 | | | |
| | | | S-29 | | | |
| | | | S-29 | | | |
| | | | S-30 | | |
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| | | | 14 | | |
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Three Months Ended
December 31, |
| |
Year Ended
December 31, |
| ||||||||||||||||||
| | |
2023
|
| |
2022
|
| |
2023
|
| |
2022(1)
|
| ||||||||||||
Income Statement Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
REVENUE BY SEGMENT | | | | | | | | | | | | | | | | | | | | | | | | | |
Software
|
| | | $ | 7,514 | | | | | $ | 7,288 | | | | | $ | 26,308 | | | | | $ | 25,037 | | |
Consulting
|
| | | | 5,048 | | | | | | 4,770 | | | | | | 19,985 | | | | | | 19,107 | | |
Infrastructure
|
| | | | 4,604 | | | | | | 4,483 | | | | | | 14,593 | | | | | | 15,288 | | |
Financing
|
| | | | 175 | | | | | | 172 | | | | | | 741 | | | | | | 645 | | |
Other
|
| | | | 41 | | | | | | (22) | | | | | | 233 | | | | | | 453 | | |
TOTAL REVENUE
|
| | | | 17,381 | | | | | | 16,690 | | | | | | 61,860 | | | | | | 60,530 | | |
GROSS PROFIT
|
| | | | 10,267 | | | | | | 9,632 | | | | | | 34,300 | | | | | | 32,687 | | |
GROSS PROFIT MARGIN | | | | | | | | | | | | | | | | | | | | | | | | | |
Software
|
| | | | 81.7% | | | | | | 81.2% | | | | | | 80.1% | | | | | | 79.6% | | |
Consulting
|
| | | | 27.7% | | | | | | 27.4% | | | | | | 26.6% | | | | | | 25.5% | | |
Infrastructure
|
| | | | 60.6% | | | | | | 54.9% | | | | | | 56.0% | | | | | | 52.8% | | |
Financing
|
| | | | 50.2% | | | | | | 47.1% | | | | | | 48.1% | | | | | | 38.3% | | |
TOTAL GROSS PROFIT MARGIN
|
| | | | 59.1% | | | | | | 57.7% | | | | | | 55.4% | | | | | | 54.0% | | |
EXPENSE AND OTHER INCOME | | | | | | | | | | | | | | | | | | | | | | | | | |
S,G&A
|
| | | | 4,791 | | | | | | 4,765 | | | | | | 19,003 | | | | | | 18,609 | | |
R,D&E
|
| | | | 1,748 | | | | | | 1,604 | | | | | | 6,775 | | | | | | 6,567 | | |
Intellectual property and custom development income
|
| | | | (242) | | | | | | (245) | | | | | | (860) | | | | | | (663) | | |
Other (income) and expense
|
| | | | (193) | | | | | | (118) | | | | | | (914) | | | | | | 5,803 | | |
Interest expense
|
| | | | 405 | | | | | | 313 | | | | | | 1,607 | | | | | | 1,216 | | |
TOTAL EXPENSE AND OTHER INCOME
|
| | | | 6,509 | | | | | | 6,320 | | | | | | 25,610 | | | | | | 31,531 | | |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | | | | | 3,759 | | | | | | 3,312 | | | | | | 8,690 | | | | | | 1,156 | | |
Pre-tax margin
|
| | | | 21.6% | | | | | | 19.8% | | | | | | 14.0% | | | | | | 1.9% | | |
Provision for/(Benefit from) income taxes
|
| | | | 474 | | | | | | 443 | | | | | | 1,176 | | | | | | (626) | | |
Effective tax rate
|
| | | | 12.6% | | | | | | 13.4% | | | | | | 13.5% | | | | | | (54.2)% | | |
INCOME FROM CONTINUING OPERATIONS
|
| | | $ | 3,285 | | | | | $ | 2,869 | | | | | $ | 7,514 | | | | | $ | 1,783 | | |
DISCONTINUED OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | | |
Income/(loss) from discontinued operations, net of taxes
|
| | | | 3 | | | | | | (159) | | | | | | (12) | | | | | | (143) | | |
NET INCOME
|
| | | $ | 3,288 | | | | | $ | 2,711 | | | | | $ | 7,502 | | | | | $ | 1,639 | | |
(Dollars in Millions)
|
| |
At
December 31, 2023 |
| |
At
December 31, 2022 |
| ||||||
Balance Sheet Data: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 13,068 | | | | | $ | 7,886 | | |
Total Current Assets
|
| | | $ | 32,908 | | | | | $ | 29,118 | | |
Total Assets
|
| | | $ | 135,241 | | | | | $ | 127,243 | | |
Short-term debt
|
| | | $ | 6,426 | | | | | $ | 4,760 | | |
Long-term debt
|
| | | $ | 50,121 | | | | | $ | 46,189 | | |
Total Liabilities
|
| | | $ | 112,628 | | | | | $ | 105,222 | | |
Total Equity
|
| | | $ | 22,613 | | | | | $ | 22,021 | | |
| | |
Three Months Ended
December 31, |
| |
Year Ended
December 31, |
| ||||||||||||||||||
(Dollars in Millions)
|
| |
2023
|
| |
2022
|
| |
2023
|
| |
2022(1)
|
| ||||||||||||
Cash Flow Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Cash Provided by Operating Activities
|
| | | $ | 4,463 | | | | | $ | 3,965 | | | | | $ | 13,931 | | | | | $ | 10,435 | | |
Net Cash Provided by/(Used in) Investing Activities
|
| | | $ | 2,837 | | | | | $ | (1,318) | | | | | $ | (7,070) | | | | | $ | (4,202) | | |
Net Cash Provided by/(Used in) Financing Activities
|
| | | $ | (1,615) | | | | | $ | (2,852) | | | | | $ | (1,769) | | | | | $ | (4,958) | | |
Underwriter
|
| |
Principal
Amount of 2026 Notes to be Purchased |
| |
Principal
Amount of 2027 Notes to be Purchased |
| |
Principal
Amount of 2029 Notes to be Purchased |
| |
Principal
Amount of 2031 Notes to be Purchased |
| |
Principal
Amount of 2034 Notes to be Purchased |
| |
Principal
Amount of 2044 Notes to be Purchased |
| |
Principal
Amount of 2054 Notes to be Purchased |
| |||||||||||||||||||||
Merrill Lynch (Singapore) Pte. Ltd.
|
| | | $ | 72,000,000 | | | | | $ | 60,000,000 | | | | | $ | 60,000,000 | | | | | $ | 60,000,000 | | | | | $ | 120,000,000 | | | | | $ | 120,000,000 | | | | | $ | 168,000,000 | | |
Citigroup Global Markets Singapore Pte. Ltd.
|
| | | | 72,000,000 | | | | | | 60,000,000 | | | | | | 60,000,000 | | | | | | 60,000,000 | | | | | | 120,000,000 | | | | | | 120,000,000 | | | | | | 168,000,000 | | |
Goldman Sachs (Singapore)
Pte. |
| | | | 72,000,000 | | | | | | 60,000,000 | | | | | | 60,000,000 | | | | | | 60,000,000 | | | | | | 120,000,000 | | | | | | 120,000,000 | | | | | | 168,000,000 | | |
The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch
|
| | | | 72,000,000 | | | | | | 60,000,000 | | | | | | 60,000,000 | | | | | | 60,000,000 | | | | | | 120,000,000 | | | | | | 120,000,000 | | | | | | 168,000,000 | | |
J.P. Morgan Securities Asia Private Limited
|
| | | | 72,000,000 | | | | | | 60,000,000 | | | | | | 60,000,000 | | | | | | 60,000,000 | | | | | | 120,000,000 | | | | | | 120,000,000 | | | | | | 168,000,000 | | |
BNP Paribas Securities Corp.
|
| | | | 37,500,000 | | | | | | 31,250,000 | | | | | | 31,250,000 | | | | | | 31,250,000 | | | | | | 62,500,000 | | | | | | 62,500,000 | | | | | | 87,500,000 | | |
Deutsche Bank Securities Inc.
|
| | | | 37,500,000 | | | | | | 31,250,000 | | | | | | 31,250,000 | | | | | | 31,250,000 | | | | | | 62,500,000 | | | | | | 62,500,000 | | | | | | 87,500,000 | | |
RBC Capital Markets, LLC
|
| | | | 37,500,000 | | | | | | 31,250,000 | | | | | | 31,250,000 | | | | | | 31,250,000 | | | | | | 62,500,000 | | | | | | 62,500,000 | | | | | | 87,500,000 | | |
Wells Fargo Securities, LLC
|
| | | | 37,500,000 | | | | | | 31,250,000 | | | | | | 31,250,000 | | | | | | 31,250,000 | | | | | | 62,500,000 | | | | | | 62,500,000 | | | | | | 87,500,000 | | |
Mizuho Securities USA LLC
|
| | | | 19,000,000 | | | | | | 15,833,000 | | | | | | 15,833,000 | | | | | | 15,834,000 | | | | | | 31,666,000 | | | | | | 31,667,000 | | | | | | 44,333,000 | | |
MUFG Securities Americas
Inc. |
| | | | 19,000,000 | | | | | | 15,834,000 | | | | | | 15,833,000 | | | | | | 15,833,000 | | | | | | 31,667,000 | | | | | | 31,667,000 | | | | | | 44,333,000 | | |
Santander US Capital Markets LLC
|
| | | | 19,000,000 | | | | | | 15,833,000 | | | | | | 15,834,000 | | | | | | 15,833,000 | | | | | | 31,667,000 | | | | | | 31,666,000 | | | | | | 44,334,000 | | |
Scotia Capital (USA) Inc.
|
| | | | 10,000,000 | | | | | | 8,334,000 | | | | | | 8,333,000 | | | | | | 8,333,000 | | | | | | 16,667,000 | | | | | | 16,666,000 | | | | | | 23,333,000 | | |
SMBC Nikko Securities America, Inc.
|
| | | | 10,000,000 | | | | | | 8,333,000 | | | | | | 8,334,000 | | | | | | 8,333,000 | | | | | | 16,667,000 | | | | | | 16,667,000 | | | | | | 23,333,000 | | |
Truist Securities Inc.
|
| | | | 10,000,000 | | | | | | 8,333,000 | | | | | | 8,333,000 | | | | | | 8,334,000 | | | | | | 16,666,000 | | | | | | 16,667,000 | | | | | | 23,334,000 | | |
Blaylock Van, LLC
|
| | | | 1,000,000 | | | | | | 834,000 | | | | | | 833,000 | | | | | | 833,000 | | | | | | 1,667,000 | | | | | | 1,666,000 | | | | | | 2,334,000 | | |
C.L. King & Associates, Inc.
|
| | | | 1,000,000 | | | | | | 833,000 | | | | | | 834,000 | | | | | | 833,000 | | | | | | 1,667,000 | | | | | | 1,667,000 | | | | | | 2,333,000 | | |
Drexel Hamilton, LLC
|
| | | | 1,000,000 | | | | | | 833,000 | | | | | | 833,000 | | | | | | 834,000 | | | | | | 1,666,000 | | | | | | 1,667,000 | | | | | | 2,333,000 | | |
Total
|
| | | $ | 600,000,000 | | | | | $ | 500,000,000 | | | | | $ | 500,000,000 | | | | | $ | 500,000,000 | | | | | $ | 1,000,000,000 | | | | | $ | 1,000,000,000 | | | | | $ | 1,400,000,000 | | |
| | |
Paid by IIC
|
| |||
Per 2026 Note
|
| | | | 0.100% | | |
Per 2027 Note
|
| | | | 0.150% | | |
Per 2029 Note
|
| | | | 0.250% | | |
Per 2031 Note
|
| | | | 0.300% | | |
Per 2034 Note
|
| | | | 0.450% | | |
Per 2044 Note
|
| | | | 0.600% | | |
Per 2054 Note
|
| | | | 0.800% | | |
| | |
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|
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EX-FILING FEES
Calculation of Filing Fee Tables
424(b)(5)1
(Form Type)
International Business Machines Corporation
IBM International Capital Pte. Ltd.
(Exact Name of Registrant as Specified in their respective Charters)
Table 1: Newly Registered and Carry Forward Securities
Security Type | Security Class Title |
Fee Calculation or Carry Forward Rule |
Amount Registered |
Proposed Maximum Offering Price Per Unit |
Maximum Aggregate Offering Price |
Fee Rate | Amount of Registration Fee |
Carry Forward Form Type |
Carry Forward File Number |
Carry Forward Initial Effective Date |
Filing Fee Previously Paid in Connection with Unsold Securities to be Carried Forward | |
Newly Registered Securities | ||||||||||||
Fees to Be Paid | ||||||||||||
Debt | 4.700% Notes due 2026 | 457(r) | $600,000,000 | 99.876% | $599,256,000 | .00014760 | $88,450.19 | |||||
Debt | 4.600% Notes due 2027 | 457(r) | $500,000,000 | 99.842% | $499,210,000 | .00014760 | $73,683.40 | |||||
Debt | 4.600% Notes due 2029 | 457(r) | $500,000,000 | 99.854% | $499,270,000 | .00014760 | $73,692.25 |
1 Final Prospectus Supplement
Debt | 4.750% Notes due 2031 | 457(r) | $500,000,000 | 99.770% | $498,850,000 | .00014760 | $73,630.26 | |||||
Debt | 4.900% Notes due 2034 | 457(r) | $1,000,000,000 | 99.750% | $997,500,000 | .00014760 | $147,231.00 | |||||
Debt | 5.250% Notes due 2044 | 457(r) | $1,000,000,000 | 99.596% | $995,960,000 | .00014760 | $147,003.70 | |||||
Debt | 5.300% Notes due 2054 | 457(r) | $1,400,000,000 | 99.435% | $1,392,090,000 | .00014760 | $205,472.48 | |||||
Other | Guarantee of IBM (1) | 457(n) | N/A | N/A | N/A | N/A | N/A | |||||
Fees Previously Paid (2) | ||||||||||||
Total Offering Amounts | $5,482,136,000 | $809,163.27 | ||||||||||
Total Fees Previously Paid | $0 | |||||||||||
Total Fee Offsets | $443,711.11 | |||||||||||
Net Fee Due | $365,452.16(2) |
(1) | International Business Machines Corporation (IBM) will fully and unconditionally guarantee the notes issued by IBM International Capital Pte. Ltd. Pursuant to Rule 457(n) under the Securities Act of 1933, as amended (the Securities Act), no separate registration fee is required with respect to such guarantee. |
(2) | A registration fee in the amount of $443,711.11 was previously paid (the 2024 IBM Shelf Registration Statement Previously Paid Fees) by the registrants in connection with the automatic shelf Registration Statement on Form S-3ASR (Registration Nos. 333- 276739, 333- 276739-01 and 333- 276739-02) filed on January 29, 2024 (the 2024 IBM Shelf Registration Statement). The 2024 IBM Shelf Registration Statement became effective on January 29, 2024. As detailed in the filing fees exhibit to the 2024 IBM Shelf Registration Statement, the 2024 IBM Shelf Registration Statement Previously Paid Fees were the result of the registrants’ application of $443,711.11 of unused registration fees previously paid in connection with the automatic shelf Registration Statement on Form S-3ASR (Registration No. 333-262911) filed on February 22, 2022 (the 2022 IBM Shelf Registration Statement). The registrants have applied $0 of the 2024 IBM Shelf Registration Statement Previously Paid Fees to any amounts due prior to the filing of this prospectus supplement. As such, $443,711.11 of the 2024 IBM Shelf Registration Statement Previously Paid Fees remains unused and is being applied towards the registration fee for the securities offered herein. Accordingly, the registration fee owed in connection with this prospectus supplement is $365,452.16 and the amount of the 2024 IBM Shelf Registration Statement Previously Paid Fees after such application is $0. |
Table 2: Fee Offset Claims and Sources
Registrant or Filer Name |
Form
or Filing Type |
File
Number |
Initial Filing Date |
Filing Date | Fee
Offset Claimed (3) |
Security
Type Associated with Fee Offset Claimed |
Security
Title Associated with Fee Offset Claimed |
Unsold Securities Associated with Fee Offset Claimed |
Unsold
Aggregate Offering Amount Associated with Fee Offset Claimed |
Fee
Paid with Fee Offset Source | |
Rule 457(p) | |||||||||||
Fee Offset Sources | IBM, IBM International Group Capital LLC and IBM International Capital Pte. Ltd. | S-3ASR | 333-276739, 333-276739-01 and 333-276739-02 | January 29, 2024 | $443,711.11 |
(3) | The total of the historical fee offset claims against the registration fees of $1,710,091.24 paid at the time of filing the 2022 IBM Shelf Registration Statement was $1,266,380.13, resulting in $443,711.11 in registration fees paid at the time of filing the 2022 IBM Shelf Registration Statement remaining unused prior to the filing of the 2024 IBM Shelf Registration Statement. Pursuant to Rule 457(p) under the Securities Act, those unused fees were applied as payment of fees payable pursuant to the 2024 IBM Shelf Registration Statement under applicable prospectus supplements. As set forth in footnote (2), the 2024 IBM Shelf Registration Statement Previously Paid Fees are being applied towards the registration fee for the securities offered herein. After the filing of this prospectus supplement, $0 in such registration fees will remain unused. As detailed in the filing fees exhibit to the 2022 IBM Shelf Registration Statement, the 2022 IBM Shelf Registration Statement Previously Paid Fees were the result of the registrant’s application of $1,710,091.24 of unused registration fees previously paid in connection with the Registration Statement on Form S-3 (Registration No. 333-219724) of IBM Credit LLC, an indirect, wholly owned subsidiary of International Business Machines, filed on August 4, 2017 and declared effective on August 17, 2017, as payment of fees payable pursuant to the 2022 IBM Shelf Registration Statement under applicable prospectus supplements. |
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