International Business Machines (IBM) 10-Q 2016 Q3 Quarterly report

EXHIBIT 12

COMPUTATION OF RATIO OF INCOME FROM

CONTINUING OPERATIONS TO FIXED CHARGES

FOR NINE MONTHS ENDED SEPTEMBER 30,

(UNAUDITED)

(Dollars in millions)	2016		2015
Income from continuing operations before income taxes (1)	$	7,348	$	10,854
Add: fixed charges, excluding capitalized interest	1,241		1,085
Income as adjusted before income taxes	$	8,589	$	11,939
Fixed charges:
Interest expense	$	904	$	747
Capitalized interest	3		(1		)
Portion of rental expense representative of interest	337		338
Total fixed charges	$	1,244	$	1,084
Ratio of income from continuing operations to fixed charges	6.90		11.02

(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.

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