EXHIBIT 12
COMPUTATION OF RATIO OF INCOME FROM
CONTINUING OPERATIONS TO FIXED CHARGES
FOR THREE MONTHS ENDED MARCH 31,
(UNAUDITED)
(Dollars in millions) |
| 2008 |
| 2007 |
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Income from continuing operations before income taxes (1) |
| $ | 3,194 |
| $ | 2,581 |
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Add: Fixed charges, excluding capitalized interest |
| 486 |
| 370 |
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Income as adjusted before income taxes |
| $ | 3,860 |
| $ | 2,951 |
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Fixed charges: |
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Interest expense |
| $ | 384 |
| $ | 261 |
|
Capitalized interest |
| 3 |
| 8 |
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Portion of rental expense representative of interest |
| 102 |
| 109 |
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Total fixed charges |
| $ | 489 |
| $ | 378 |
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Ratio of income from continuing operations to fixed charges |
| 7.53 |
| 7.81 |
|
(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.
47
SEGMENT INFORMATION - ON CONTINUING OPERATIONS BASIS
(UNAUDITED)
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| Global Services |
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| Global |
| Global |
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| Technology |
| Business |
| Systems and |
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| Global |
| Total |
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(Dollars in millions) |
| Services |
| Services |
| Technology |
| Software |
| Financing |
| Segments |
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For the Three Months Ended March 31, 2008: |
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External revenue |
| $ | 9,677 |
| $ | 4,911 |
| $ | 4,219 |
| $ | 4,847 |
| $ | 633 |
| $ | 24,286 |
|
Internal revenue |
| 388 |
| 258 |
| 195 |
| 667 |
| 386 |
| 1,894 |
| ||||||
Total revenue |
| $ | 10,065 |
| $ | 5,169 |
| $ | 4,414 |
| $ | 5,514 |
| $ | 1,019 |
| $ | 26,180 |
|
Pre-tax income |
| $ | 988 |
| $ | 579 |
| $ | 145 |
| $ | 1,267 |
| $ | 388 |
| $ | 3,368 |
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Revenue year-to-year change |
| 15.9 | % | 15.3 | % | (7.8 | )% | 14.0 | % | 5.8 | % | 10.2 | % | ||||||
Pre-tax income year-to-year change |
| 45.1 | % | 23.4 | % | 50.7 | % | 22.3 | % | 3.9 | % | 26.8 | % | ||||||
Pre-tax income margin |
| 9.8 | % | 11.2 | % | 3.3 | % | 23.0 | % | 38.1 | % | 12.9 | % | ||||||
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For the Three Months Ended March 31, 2007: |
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External revenue |
| $ | 8,258 |
| $ | 4,183 |
| $ | 4,520 |
| $ | 4,251 |
| $ | 614 |
| $ | 21,826 |
|
Internal revenue |
| 425 |
| 301 |
| 267 |
| 585 |
| 349 |
| 1,927 |
| ||||||
Total revenue |
| $ | 8,683 |
| $ | 4,485 |
| $ | 4,787 |
| $ | 4,836 |
| $ | 963 |
| $ | 23,753 |
|
Pre-tax income |
| $ | 681 |
| $ | 470 |
| $ | 96 |
| $ | 1,036 |
| $ | 374 |
| $ | 2,657 |
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Pre-tax income margin |
| 7.8 | % | 10.5 | % | 2.0 | % | 21.4 | % | 38.8 | % | 11.2 | % | ||||||
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Reconciliations to IBM as Reported: |
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| For the Three |
| For the Three |
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| Months Ended |
| Months Ended |
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(Dollars in millions) |
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| March 31, 2008 |
| March 31, 2007 |
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Revenue: |
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Total reportable segments |
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| $ | 26,180 |
| $ | 23,753 |
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Eliminations/other |
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| (1,679 | ) | (1,724 | ) | ||||||
Total IBM Consolidated |
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| $ | 24,502 |
| $ | 22,029 |
| ||||
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Pre-tax income: |
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Total reportable segments |
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| $ | 3,368 |
| $ | 2,657 |
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Eliminations/other |
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| (170 | ) | (78 | ) | ||||||
Total IBM Consolidated |
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| $ | 3,198 |
| $ | 2,579 |
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48