Exhibit 99.1
On June 22, 2005, the company filed a Form 8-K, restating its consolidated financial statements and related footnotes to reflect the implementation of SFAS 123(R), Share-Based Payment. The company adopted the accounting standard in the first quarter of 2005.
Following the company’s earnings announcement and the filing of its Form 10Q for the second quarter, the company will file an additional 8-K which will reflect the changes to the company’s management and measurement system and its reportable segments. The changes are discussed in Note 11, on pages 17 and 18.
The preceding segment information on pages 75 through 78 reflect the changes in all periods presented. In order to provide investors with additional historical financial information related to these changes, the following chart includes segment revenue and pre-tax income data for each of the four quarters of 2004 and the first quarter 2005. Reconciliation information for non-GAAP measures in connection with the revised management structure may be found in Note x, “Segment Information” and pages 107 through 112 to the Consolidated Financial Statements in the company’s Form 8-K filed on June 22, 2005.
79
Exhibit 99.1
Management System Segment View - Unaudited
(Dollars in millions) |
| Global |
| Systems & |
| Software |
| Global |
| Enterprise |
| Personal |
| Total |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
QUARTER ENDED MARCH 31, 2005: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
External revenue |
| $ | 11,696 |
| $ | 4,289 |
| $ | 3,551 |
| $ | 579 |
| $ | 292 |
| $ | 2,319 |
| $ | 22,726 |
|
Internal revenue |
| 745 |
| 241 |
| 461 |
| 449 |
| 2 |
| 26 |
| $ | 1,924 |
| ||||||
Total revenue |
| $ | 12,441 |
| $ | 4,530 |
| $ | 4,012 |
| $ | 1,028 |
| $ | 294 |
| $ | 2,345 |
| $ | 24,650 |
|
Pre-tax income |
| $ | 816 |
| $ | 62 |
| $ | 822 |
| $ | 391 |
| $ | (34 | ) | $ | (16 | ) | $ | 2,041 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Revenue Y-T-Y change |
| 5.6 | % | 1.5 | % | 3.7 | % | 8.8 | % | 6.1 | % | -2.1 | % | 3.9 | % | |||||||
Pre-tax income Y-T-Y change |
| -1.8 | % | -50.4 | % | 9.2 | % | 7.1 | % | 39.3 | % | 57.9 | % | 3.1 | % | |||||||
Pre-tax income margin |
| 6.6 | % | 1.4 | % | 20.5 | % | 38.0 | % | -11.6 | % | -0.7 | % | 8.3 | % | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
QUARTER ENDED DECEMBER 31, 2004: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
External revenue |
| $ | 12,605 |
| $ | 6,443 |
| $ | 4,549 |
| $ | 656 |
| $ | 379 |
| $ | 2,968 |
| $ | 27,600 |
|
Internal revenue |
| 819 |
| 294 |
| 514 |
| 412 |
| 2 |
| 38 |
| 2,079 |
| |||||||
Total revenue |
| $ | 13,424 |
| $ | 6,737 |
| $ | 5,063 |
| $ | 1,068 |
| $ | 381 |
| $ | 3,006 |
| $ | 29,679 |
|
Pre-tax income |
| $ | 1,271 |
| $ | 1,059 |
| $ | 1,626 |
| $ | 413 |
| $ | (36 | ) | $ | 36 |
| $ | 4,369 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Revenue Y-T-Y change |
| 10.0 | % | 3.4 | % | 7.4 | % | -8.2 | % | 11.7 | % | 4.4 | % | 6.7 | % | |||||||
Pre-tax income Y-T-Y change |
| 33.1 | % | -2.0 | % | 18.9 | % | 31.9 | % | 25.0 | % | 148.0 | % | 21.6 | % | |||||||
Pre-tax income margin |
| 9.5 | % | 15.7 | % | 32.1 | % | 38.7 | % | -9.4 | % | 1.2 | % | 14.7 | % | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
QUARTER ENDED SEPTEMBER 30, 2004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
External revenue |
| $ | 11,312 |
| $ | 4,665 |
| $ | 3,621 |
| $ | 634 |
| $ | 257 |
| $ | 2,713 |
| $ | 23,202 |
|
Internal revenue |
| 791 |
| 276 |
| 433 |
| 309 |
| 2 |
| 41 |
| 1,852 |
| |||||||
Total revenue |
| $ | 12,103 |
| $ | 4,941 |
| $ | 4,054 |
| $ | 943 |
| $ | 259 |
| $ | 2,754 |
| $ | 25,054 |
|
Pre-tax income |
| $ | 995 |
| $ | 394 |
| $ | 907 |
| $ | 341 |
| $ | (58 | ) | $ | 2 |
| $ | 2,581 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Revenue Y-T-Y change |
| 9.3 | % | 10.4 | % | 5.8 | % | -3.7 | % | 0.0 | % | 16.9 | % | 9.0 | % | |||||||
Pre-tax income Y-T-Y change |
| -3.4 | % | 42.8 | % | 24.6 | % | 19.6 | % | 3.3 | % | 101.9 | % | 19.8 | % | |||||||
Pre-tax income margin |
| 8.2 | % | 8.0 | % | 22.4 | % | 36.2 | % | -22.4 | % | 0.1 | % | 10.3 | % | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
QUARTER ENDED JUNE 30, 2004: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
External revenue |
| $ | 11,272 |
| $ | 4,640 |
| $ | 3,458 |
| $ | 652 |
| $ | 269 |
| $ | 2,679 |
| $ | 22,970 |
|
Internal revenue |
| 759 |
| 285 |
| 457 |
| 286 |
| 2 |
| 31 |
| 1,820 |
| |||||||
Total revenue |
| $ | 12,031 |
| $ | 4,925 |
| $ | 3,915 |
| $ | 938 |
| $ | 271 |
| $ | 2,710 |
| $ | 24,790 |
|
Pre-tax income |
| $ | 921 |
| $ | 562 |
| $ | 852 |
| $ | 339 |
| $ | (49 | ) | $ | (10 | ) | $ | 2,615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Revenue Y-T-Y change |
| 6.2 | % | 10.2 | % | 1.4 | % | -5.1 | % | 18.9 | % | 19.2 | % | 7.1 | % | |||||||
Pre-tax income Y-T-Y change |
| -9.2 | % | 156.6 | % | 12.3 | % | 18.1 | % | 46.2 | % | 84.8 | % | 23.2 | % | |||||||
Pre-tax income margin |
| 7.7 | % | 11.4 | % | 21.8 | % | 36.1 | % | -18.1 | % | -0.4 | % | 10.5 | % | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
QUARTER ENDED MARCH 31, 2004: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
External revenue |
| $ | 11,024 |
| $ | 4,225 |
| $ | 3,466 |
| $ | 665 |
| $ | 275 |
| $ | 2,377 |
| $ | 22,032 |
|
Internal revenue |
| 762 |
| 240 |
| 401 |
| 280 |
| 2 |
| 19 |
| 1,704 |
| |||||||
Total revenue |
| $ | 11,786 |
| $ | 4,465 |
| $ | 3,867 |
| $ | 945 |
| $ | 277 |
| $ | 2,396 |
| $ | 23,736 |
|
Pre-tax income |
| $ | 831 |
| $ | 125 |
| $ | 753 |
| $ | 365 |
| $ | (56 | ) | $ | (38 | ) | $ | 1,980 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Revenue Y-T-Y change |
| 8.4 | % | 13.6 | % | 10.0 | % | -5.1 | % | 14.5 | % | 20.5 | % | 10.2 | % | |||||||
Pre-tax income Y-T-Y change |
| 0.8 | % | -2.3 | % | 38.4 | % | 36.7 | % | 21.1 | % | 63.1 | % | 24.6 | % | |||||||
Pre-tax income margin |
| 7.1 | % | 2.8 | % | 19.5 | % | 38.6 | % | -20.2 | % | -1.6 | % | 8.3 | % |
80