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EXHIBIT 12
COMPUTATION OF RATIO OF INCOME
FROM CONTINUING OPERATIONS TO FIXED CHARGES
(UNAUDITED)
| For Nine Months Ended | ||||||
---|---|---|---|---|---|---|---|
| September 30, 2003 | September 30, 2002 | |||||
| (Dollars in millions) | ||||||
Income from continuing operations before income taxes (1) | $ | 6,989 | $ | 4,821 | |||
Add: Fixed charges, excluding capitalized interest | 843 | 939 | |||||
Income as adjusted before income taxes | $ | 7,832 | $ | 5,760 | |||
Fixed charges: | |||||||
Interest expense | $ | 501 | $ | 594 | |||
Capitalized interest | 11 | 32 | |||||
Portion of rental expense representative of interest | 342 | 345 | |||||
Total fixed charges | $ | 854 | $ | 971 | |||
Ratio of income from continuing operations to fixed charges | 9.17 | 5.93 |
- (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.
SEGMENT INFORMATION—ON CONTINUING OPERATIONS BASIS
(UNAUDITED)
| | Hardware Segments | | | | | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Global Services | Systems Group | Personal Systems Group | Technology Group | Software | Global Financing | Enterprise Investments | Total Segments | |||||||||||||||||
(Dollars in millions) | | | | | | | | | |||||||||||||||||
Three Months Ended September 30, 2003: | |||||||||||||||||||||||||
External revenue | $ | 10,383 | $ | 3,199 | $ | 2,796 | $ | 695 | $ | 3,461 | $ | 713 | $ | 257 | $ | 21,504 | |||||||||
Internal revenue | 691 | 209 | 43 | 187 | 370 | 266 | 2 | 1,768 | |||||||||||||||||
Total revenue | $ | 11,074 | $ | 3,408 | $ | 2,839 | $ | 882 | $ | 3,831 | $ | 979 | $ | 259 | $ | 23,272 | |||||||||
Pre-tax income (loss) | $ | 1,210 | $ | 387 | $ | (50 | ) | $ | (96 | ) | $ | 858 | $ | 292 | $ | (54 | ) | $ | 2,547 | ||||||
Revenue year-to-year change | 15.3 | % | 5.6 | % | 2.5 | % | (29.6 | )% | 12.3 | % | (4.7 | )% | 7.5 | % | 8.1 | % | |||||||||
Pre-tax income year-to-year change | (3.9 | )% | 1.6 | % | (150.0 | )% | (464.7 | )% | 7.4 | % | 33.9 | % | 22.9 | % | (0.1 | )% | |||||||||
Pre-tax income margin | 10.9 | % | 11.4 | % | (1.8 | )% | (10.9 | )% | 22.4 | % | 29.8 | % | (20.8 | )% | 10.9 | % | |||||||||
Three Months Ended September 30, 2002: | |||||||||||||||||||||||||
External revenue | $ | 8,895 | $ | 3,028 | $ | 2,736 | $ | 1,039 | $ | 3,110 | $ | 789 | $ | 240 | $ | 19,837 | |||||||||
Internal revenue | 708 | 200 | 33 | 214 | 302 | 238 | 1 | 1,696 | |||||||||||||||||
Total revenue | $ | 9,603 | $ | 3,228 | $ | 2,769 | $ | 1,253 | $ | 3,412 | $ | 1,027 | $ | 241 | $ | 21,533 | |||||||||
Pre-tax income (loss) | $ | 1,259 | $ | 381 | $ | (20 | ) | $ | (17 | ) | $ | 799 | $ | 218 | $ | (70 | ) | $ | 2,550 | ||||||
Pre-tax income margin | 13.1 | % | 11.8 | % | (0.7 | )% | (1.4 | )% | 23.4 | % | 21.2 | % | (29.0 | )% | 11.8 | % |
Reconciliations to IBM as Reported:
| Three Months Ended September 30, 2003 | Three Months Ended September 30, 2002 | ||||||
---|---|---|---|---|---|---|---|---|
(Dollars in millions) | | | ||||||
Revenue: | ||||||||
Total reportable segments | $ | 23,272 | $ | 21,533 | ||||
Eliminations/other | (1,750 | ) | (1,712 | ) | ||||
Total IBM Consolidated | $ | 21,522 | $ | 19,821 | ||||
Pretax income: | ||||||||
Total reportable segments | $ | 2,547 | $ | 2,550 | ||||
Eliminations /other | 2 | (146 | ) | |||||
Total IBM Consolidated | $ | 2,549 | $ | 2,404 | ||||
SEGMENT INFORMATION—ON CONTINUING OPERATIONS BASIS
(UNAUDITED)
| | Hardware Segments | | | | | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(Dollars in millions) | Global Services | Systems Group | Personal Systems Group | Technology Group | Software | Global Financing | Enterprise Investments | Total Segments | |||||||||||||||||
Nine Months Ended September 30, 2003: | |||||||||||||||||||||||||
External revenue | $ | 31,187 | $ | 9,066 | $ | 7,909 | $ | 2,096 | $ | 10,061 | $ | 2,095 | $ | 725 | $ | 63,139 | |||||||||
Internal revenue | 2,085 | 571 | 123 | 598 | 1,147 | 868 | 4 | 5,396 | |||||||||||||||||
Total revenue | $ | 33,272 | $ | 9,637 | $ | 8,032 | $ | 2,694 | $ | 11,208 | $ | 2,963 | $ | 729 | $ | 68,535 | |||||||||
Pre-tax income (loss) | $ | 3,361 | $ | 978 | $ | (127 | ) | $ | (218 | ) | $ | 2,347 | $ | 861 | $ | (208 | ) | $ | 6,994 | ||||||
Revenue year-to-year change | 19.4 | % | 7.4 | % | (1.2 | )% | (25.6 | )% | 10.8 | % | (1.0 | )% | 4.6 | % | 9.8 | % | |||||||||
Pre-tax income year-to-year change | 10.6 | % | 32.2 | % | nm | 80.2 | % | 3.3 | % | 27.2 | % | (2.0 | )% | 28.7 | % | ||||||||||
Pre-tax income margin | 10.1 | % | 10.1 | % | (1.6 | )% | (8.1 | )% | 20.9 | % | 29.1 | % | (28.5 | )% | 10.2 | % | |||||||||
Nine Months Ended September 30, 2002: | |||||||||||||||||||||||||
External revenue | $ | 25,785 | $ | 8,446 | $ | 8,047 | $ | 2,972 | $ | 9,2733 | $ | 2,375 | $ | 694 | $ | 57,592 | |||||||||
Internal revenue | 2,089 | 526 | 79 | 649 | 844 | 617 | 3 | 4,807 | |||||||||||||||||
Total revenue | $ | 27,874 | $ | 8,972 | $ | 8,126 | $ | 3,621 | $ | 10,117 | $ | 2,992 | $ | 697 | $ | 62,399 | |||||||||
Pre-tax income (loss) | $ | 3,038 | $ | 740 | $ | 10 | $ | (1,099 | ) | $ | 2,272 | $ | 677 | $ | (204 | ) | $ | 5,434 | |||||||
Pre-tax income margin | 10.9 | % | 8.2 | % | 0.1 | % | (30.4 | )% | 22.5 | % | 22.6 | % | (29.3 | )% | 8.7 | % |
Reconciliations to IBM as Reported:
(Dollars in millions) | Nine Months Ended September 30, 2003 | Nine Months Ended September 30, 2002 | ||||||
---|---|---|---|---|---|---|---|---|
Revenue: | ||||||||
Total reportable segments | $ | 68,535 | $ | 62,399 | ||||
Eliminations/other | (5,317 | ) | (4,897 | ) | ||||
Total IBM Consolidated | $ | 63,218 | $ | 57,502 | ||||
Pretax income: | ||||||||
Total reportable segments | $ | 6,994 | $ | 5,434 | ||||
Eliminations/other | 2 | (622 | ) | |||||
Total IBM Consolidated | $ | 6,996 | $ | 4,812 | ||||
COMPUTATION OF RATIO OF INCOME FROM CONTINUING OPERATIONS TO FIXED CHARGES (UNAUDITED)
SEGMENT INFORMATION—ON CONTINUING OPERATIONS BASIS (UNAUDITED)
SEGMENT INFORMATION—ON CONTINUING OPERATIONS BASIS (UNAUDITED)