International Business Machines (IBM) 10-Q 2015 Q2 Quarterly report

EXHIBIT 12

COMPUTATION OF RATIO OF INCOME FROM

CONTINUING OPERATIONS TO FIXED CHARGES

FOR SIX MONTHS ENDED JUNE 30,

(UNAUDITED)

(Dollars in millions)	2015		2014*
Income from continuing operations before income taxes (1)	$	7,230	$	8,535
Add: fixed charges, excluding capitalized interest		724		768
Income as adjusted before income taxes	$	7,953	$	9,303
Fixed charges:
Interest expense	$	499	$	519
Capitalized interest		(3)		3
Portion of rental expense representative of interest		225		249
Total fixed charges	$	721	$	771
Ratio of income from continuing operations to fixed charges		11.03		12.07
* Reclassified to reflect discontinued operations presentation.
(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.

91