UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: April 29, 1997
(Date of earliest event reported)
INTERNATIONAL BUSINESS MACHINES CORPORATION
(Exact name of registrant as specified in its charter)
New York 1-2360 13-0871985
(State of Incorporation) (Commission (IRS employer
File Number) Identification No.)
ARMONK, NEW YORK 10504
(Address of principal executive offices) (Zip Code)
914-765-1900
(Registrant's telephone number)
Item 5. Other Events.
On April 29, 1997 the stockholders of the company approved
amendments to the Certificate of Incorporation to increase the number
of authorized shares of common stock from 750 million to 1,875 million,
which is required to effect a two-for-one stock split approved by the company's
Board of Directors on January 28, 1997. In addition, the amendments
served to reduce the par value of the common shares from $1.25 per share to
$.50 per share.
Common stockholders of record at the close of business on May 9, 1997
will receive one additional share for each share held. Distribution of the
additional shares is presently expected to occur on May 27, 1997, and
will be effected in book-entry form, through the mailing of an account
statement to each stockholder of record as of the stock split record
date, crediting the additional shares of common stock as a result of the
stock split.
Item 7. Financial Statements, Pro-Forma Financial Information and
Exhibits.
(b) Pro-Forma Financial Information
The following is presented to reflect the two-for-one
stock split on a historical basis. (See attachments I
through V of this Form 8-K.)
I Consolidated Statement of Earnings for the years ended
December 31, 1996, 1995 and 1994.
II Consolidated Statement of Financial Position at
at December 31, 1996 and 1995.
III Computation of Fully Diluted Earnings Per Share for
1992 through 1996.
IV Five-year Comparison of Selected Financial Data
1992 through 1996.
V Selected Quarterly Data for 1996 and 1995.
(c) Exhibits
(3)(i) Certificate of Incorporation as amended through
May 2, 1997.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned, hereunto duly authorized.
INTERNATIONAL BUSINESS MACHINES CORPORATION
(Registrant)
Date: May 7, 1997
By: /s/ John R. Joyce
-------------------------------
(John R. Joyce)
Vice President and Controller
ATTACHMENT I
INTERNATIONAL BUSINESS MACHINES CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF EARNINGS
(UNAUDITED)
(Dollars in millions For the Year-Ended December 31:
except per share amounts) ________________________________________
1996 1995 1994
Revenue: ________ ________ _________
Hardware sales $ 36,316 $ 35,600 $ 32,344
Services 15,873 12,714 9,715
Software 13,052 12,657 11,346
Maintenance 6,981 7,409 7,222
Rentals and financing 3,725 3,560 3,425
________ ________ ________
Total revenue 75,947 71,940 64,052
Cost:
Hardware sales 23,396 21,862 21,300
Services 12,647 10,042 7,769
Software 4,082 4,428 4,680
Maintenance 3,659 3,651 3,635
Rentals and financing 1,624 1,590 1,384
________ ________ ________
Total cost 45,408 41,573 38,768
________ ________ ________
Gross profit 30,539 30,367 25,284
Operating expenses:
Selling, general and
administrative 16,854 16,766 15,916
Research, development and
engineering 4,654 4,170 4,363
Purchased in-process research
and development 435 1,840 --
________ ________ ________
Total operating expenses 21,943 22,776 20,279
Operating income 8,596 7,591 5,005
Other income, principally interest 707 947 1,377
Interest expense 716 725 1,227
________ ________ ________
Earnings before income taxes 8,587 7,813 5,155
Provision for income taxes 3,158 3,635 2,134
________ ________ ________
Net earnings 5,429 4,178 3,021
Preferred stock dividends and
transaction costs 20 62 84
________ ________ ________
Net earnings applicable to
common shareholders $ 5,409 $ 4,116 $ 2,937
======== ======== ========
Net earnings per share
of common stock* $ 5.12 $ 3.61 $ 2.51
Average number of common shares
outstanding* 1,056,704,188 1,138,768,058 1,169,917,398
* Restated to reflect the two-for-one stock split of May 9, 1997.
ATTACHMENT II
INTERNATIONAL BUSINESS MACHINES CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(UNAUDITED)
ASSETS
(Dollars in millions) At December 31 At December 31
1996 1995
_______________ ______________
Current assets:
Cash and cash equivalents $ 7,687 $ 7,259
Marketable securities 450 442
Notes and accounts receivable - trade,
net of allowances 16,515 16,450
Sales-type leases receivable 5,721 5,961
Other accounts receivable 931 991
Inventories 5,870 6,323
Prepaid expenses and other current assets 3,521 3,265
________ ________
Total current assets 40,695 40,691
Plant, rental machines and other property 41,893 43,981
Less: Accumulated depreciation 24,486 27,402
________ ________
Plant, rental machines and other property - net 17,407 16,579
Software, less accumulated
amortization (1996, $12,199; 1995, $11,276) 1,435 2,419
Investments and sundry assets 21,595 20,603
________ ________
Total assets $ 81,132 $ 80,292
======== ========
ATTACHMENT II
INTERNATIONAL BUSINESS MACHINES CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - (CONTINUED)
(UNAUDITED)
LIABILITIES AND STOCKHOLDERS' EQUITY
(Dollars in millions) At December 31 At December 31
1996 1995
_______________ ______________
Current liabilities:
Taxes $ 3,029 $ 2,634
Short-term debt 12,957 11,569
Accounts payable 4,767 4,511
Compensation and benefits 2,950 2,914
Deferred income 3,640 3,469
Other accrued expenses and liabilities 6,657 6,551
________ ________
Total current liabilities 34,000 31,648
Long-term debt 9,872 10,060
Other liabilities 14,005 14,354
Deferred income taxes 1,627 1,807
________ ________
Total liabilities 59,504 57,869
Contingencies
Stockholders' equity:
Preferred stock - par value $.01 per share 253 253
Shares authorized: 150,000,000
Shares issued: 1996 - 2,610,711
1995 - 2,610,711
Common stock - par value $.50* per share 7,752 7,488
Shares authorized: 1,875,000,000*
Shares issued: 1996 - 1,018,141,084*
1995 - 1,096,398,026*
Retained earnings 11,189 11,630
Translation adjustments 2,401 3,036
Treasury stock, at cost (135) (41)
Shares: 1996 - 2,179,066*
1995 - 849,166*
Net unrealized gain on marketable securities 168 57
________ ________
Total stockholders' equity 21,628 22,423
________ ________
Total liabilities and stockholders' equity $ 81,132 $ 80,292
======== ========
* Restated to reflect the two-for-one stock split of May 9, 1997.
ATTACHMENT III
COMPUTATION OF FULLY DILUTED EARNINGS PER SHARE
UNDER TREASURY STOCK METHOD SET FORTH IN
ACCOUNTING PRINCIPLES BOARD OPINION NO. 15
(UNAUDITED)
Year Ended December 31:
____________________________________________________________________________
1996 1995 1994 1993** 1992**
_____________ _____________ _____________ _____________ ____________
Number of shares on
which published
earnings per share
is based:
Average outstanding
during year*......... 1,056,704,188 1,138,768,058 1,169,917,398 1,146,478,480 1,141,792,978
Add--Incremental
shares under stock
compensation and stock
purchase plans*........ 23,004,716 18,446,278 8,616,538 - -
--Incremental
shares related to
5 3/4% CGI convertible
bonds* (average) ...... - 10,582,196 15,430,782 - -
____________ _____________ _____________ _____________ _____________
Number of shares on
which fully
diluted earnings
per share is
based*................. 1,079,708,904 1,167,796,532 1,193,964,718 1,146,478,480 1,141,792,978
============= ============= ============= ============= =============
Net earnings (loss)
applicable to common
shareholders
(millions) ............ $ 5,409 $ 4,116 $ 2,937 $ (8,148) $ (4,965)
-- Net earnings (loss)
effect of interest
on 5 3/4% CGI
convertible bonds
(millions) ............ - 1 19 - -
_____________ _____________ _____________ _____________ ____________
Net earnings (loss)
on which fully
diluted earnings per
share is based
(millions) ............ $ 5,409 $ 4,117 $ 2,956 $ (8,148) $ (4,965)
============= ============= ============= ============= ============
Fully diluted
earnings (loss)
per share*............. $ 5.01 $ 3.53 $ 2.48 $ (7.11) $ (4.35)
Published earnings
(loss) per share*...... $ 5.12 $ 3.61 $ 2.51 $ (7.11) $ (4.35)
____________________________
* Restated to reflect the two-for-one stock split of May 9, 1997.
** In 1993 and 1992, incremental shares under stock plans and the effect
of the convertible debentures and bonds were not considered for the
fully diluted earnings per share calculation due to their antidilutive
effect.
As such, the amounts reported for primary and fully diluted earnings
per share are the same.
ATTACHMENT IV
INTERNATIONAL BUSINESS MACHINES CORPORATION
AND SUBSIDIARY COMPANIES
(UNAUDITED)
FIVE YEAR COMPARISON OF SELECTED FINANCIAL DATA
(Dollars in millions
except per share amounts)
For the year: 1996 1995 1994 1993 1992
Revenue $ 75,947 $ 71,940 $ 64,052 $ 62,716 $ 64,523
Net earnings (loss) before
changes in accounting principles 5,429 4,178 3,021 (7,987) (6,865)
Per share of common stock* 5.12 3.61 2.51 (7.01) (6.01)
Effect of accounting changes** - - - (114) 1,900
Per share of common stock* - - - (.10) 1.66
Net earnings (loss) 5,429 4,178 3,021 (8,101) (4,965)
Per share of common stock* 5.12 3.61 2.51 (7.11) (4.35)
Cash dividends paid on common stock 686 572 585 905 2,765
Per share of common stock* .65 .50 .50 .79 2.42
Investment in plant, rental machines
and other property 5,883 4,744 3,078 3,232 4,698
Return on stockholders' equity 24.8% 18.5% 14.3% - -
At end of year:
Total assets $ 81,132 $ 80,292 $ 81,091 $ 81,113 $ 86,705
Net investment in plant, rental
machines and other property 17,407 16,579 16,664 17,521 21,595
Working capital 6,695 9,043 12,112 6,052 2,955
Total debt 22,829 21,629 22,118 27,342 29,320
Stockholders' equity 21,628 22,423 23,413 19,738 27,624
* Restated to reflect the two-for-one stock split of May 9, 1997.
** 1993, postemployment benefits; 1992, income taxes.
ATTACHMENT V
INTERNATIONAL BUSINESS MACHINES CORPORATION
AND SUBSIDIARY COMPANIES
(UNAUDITED)
SELECTED QUARTERLY DATA
(Dollars in millions except
per share and stock prices)
Per Share Common Stock
Net
Gross Earnings Earnings Stock Prices#
Revenue Profit (Loss) (Loss) Dividends High Low
1996
First quarter $ 16,559 $ 6,769 $ 774 $ .71* $ .125* $ 64.44* $ 41.56*
Second quarter 18,183 7,191 1,347 1.26* .175* 60.44* 48.06*
Third quarter 18,062 7,258 1,285 1.23* .175* 63.94* 44.56*
Fourth quarter 23,143 9,321 2,023 1.97* .175* 83.00* 61.56*
________ ________ _______ _______ ______
Total $ 75,947 $ 30,539 $ 5,429 $ 5.12** $ .65*
======== ======== ======= ======= ======
1995
First quarter $ 15,735 $ 6,664 $ 1,289 $ 1.06* $ .125* $ 42.56* $ 35.13*
Second quarter 17,531 7,631 1,716 1.49* .125* 49.69* 41.13*
Third quarter 16,754 6,921 (538) (.48)* .125* 57.31* 45.81*
Fourth quarter 21,920 9,151 1,711 1.54* .125* 51.19* 43.88*
________ ________ _______ _______ ______
Total $ 71,940 $ 30,367 $ 4,178 $ 3.61* $ .50*
======== ======== ======= ======= ======
* Restated to reflect the two-for-one stock split of May 9, 1997.
** The sum of the quarter's earnings per share does not equal the year-
to-date earnings per share due to changes in average share calculations.
This in accordance with prescribed reporting requirements.
# The stock prices reflect the high and low prices for IBM's common stock
on the New York Stock Exchange composite tape for the last two years.