International Business Machines (IBM) 10-Q 2018 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)	2018		2017
Income from continuing operations before income taxes (1)	$	6,915	$	6,936
Add: fixed charges, excluding capitalized interest	1,501		1,301
Income as adjusted before income taxes	$	8,416	$	8,236
Fixed charges:
Interest expense	$	1,098	$	947
Capitalized interest	3		(1		)
Portion of rental expense representative of interest	404		354
Total fixed charges	$	1,504	$	1,300
Ratio of income from continuing operations to fixed charges	5.59		6.34

(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.