EXHIBIT 99
Attachment I
Management System Segment View
SEGMENT INFORMATION
Quarter Ended March 31, 1999
(UNAUDITED)
Hardware Segments
-------------------------------------------------
Personal Enterprise Global
(Dollars in millions) Technology Systems Systems Services
- ------------------------------------------------------------------------------------------------------------------------------
External revenue $ 2,210 $ 3,751 $ 2,738 $ 7,550
Internal revenue 849 7 143 669
-------- -------- -------- --------
Total revenue $ 3,059 $ 3,758 $ 2,881 $ 8,219
======== ======== ======== ========
Pre-tax income (loss) $ 18 $ (55) $ 547 $ 940
======== ======== ======== ========
Pre-tax income previously reported $ 70 $ (89) $ 498 $ 973
======== ======== ======== ========
Reconciliation of change in pre-tax income:
Effect of organization changes $ (60) $ 32 $ 43 $ --
Effect of expense allocation changes 8 2 6 (33)
-------- -------- -------- --------
Total net effect of reclassifications $ (52) $ 34 $ 49 $ (33)
======== ======== ======== ========
Global Enterprise Total
(Dollars in millions) Software Financing Investments Segments
- ------------------------------------------------------------------------------------------------------------------------------
External revenue $ 2,920 $ 724 $ 382 $ 20,275
Internal revenue 211 207 11 2,097
-------- -------- -------- --------
Total revenue $ 3,131 $ 931 $ 393 $ 22,372
======== ======== ======== ========
Pre-tax income (loss) $ 706 $ 239 $ (135) $ 2,260
======== ======== ======== ========
Pre-tax income previously reported $ 657 $ 297 $ (72) $ 2,334
======== ======== ======== ========
Reconciliation of change in pre-tax income:
Effect of organization changes $ 42 $ -- $ (64) $ (7)
Effect of expense allocation changes 7 (58) 1 (67)
-------- -------- -------- --------
Total net effect of reclassifications $ 49 $ (58) $ (63) $ (74)
======== ======== ======== ========
-25-
Reconciliation to IBM as Reported:
Quarter Ended
(Dollars in million) March 31, 1999
--------------
Revenue:
Total reportable segments $ 22,372
Eliminations/other (2,055)
--------
Total IBM Consolidated $ 20,317
========
Pre-tax income:
Total reportable segments $ 2,260
Eliminations/other (160)
--------
Total IBM Consolidated $ 2,100
========
-26-
Attachment I (continued)
Management System Segment View
SEGMENT INFORMATION
Quarter Ended June 30, 1999
(UNAUDITED)
Hardware Segments
-----------------------------------------------
Personal Enterprise Global
(Dollars in millions) Technology Systems Systems Services
- ------------------------------------------------------------------------------------------------------------------------------
External revenue $ 2,347 $ 4,111 $ 3,069 $ 7,988
Internal revenue 1,031 7 142 628
-------- -------- -------- --------
Total revenue $ 3,378 $ 4,118 $ 3,211 $ 8,616
======== ======== ======== ========
Pre-tax income (loss) $ 70 $ (100) $ 595 $ 1,121
======== ======== ======== ========
Pre-tax income previously reported $ 130 $ (153) $ 516 $ 1,137
======== ======== ======== ========
Reconciliation of change in pre-tax income:
Effect of organization changes $ (68) $ 50 $ 72 $ --
Effect of expense allocation changes 8 3 7 (16)
-------- -------- -------- --------
Total net effect of reclassified items $ (60) $ 53 $ 79 $ (16)
======== ======== ======== ========
Global Enterprise Total
(Dollars in millions) Software Financing Investments Segments
- ------------------------------------------------------------------------------------------------------------------------------
External revenue $ 3,126 $ 764 $ 418 $ 21,823
Internal revenue 182 198 3 2,191
-------- -------- -------- --------
Total revenue $ 3,308 $ 962 $ 421 $ 24,014
======== ======== ======== ========
Pre-tax income (loss) $ 756 $ 263 $ (203) $ 2,502
======== ======== ======== ========
Pre-tax income previously reported $ 700 $ 328 $ (101) $ 2,557
======== ======== ======== ========
Reconciliation of change in pre-tax income:
Effect of organization changes $ 51 $ -- $ (104) $ 1
Effect of expense allocation changes 5 (65) 2 (56)
-------- -------- -------- --------
Total net effect of reclassifications $ 56 $ (65) $ (102) $ (55)
======== ======== ======== ========
-27-
Reconciliation to IBM as Reported:
Quarter Ended
(Dollars in million) June 30, 1999
-------------
Revenue:
Total reportable segments $ 24,014
Eliminations/other (2,109)
--------
Total IBM Consolidated $ 21,905
========
Pre-tax income:
Total reportable segments $ 2,502
Sale of IBM's Global Network 3,430
Second quarter actions (1,820)
Eliminations/other (69)
--------
Total IBM Consolidated $ 4,043
========
-28-
Attachment I (continued)
Management System Segment View
SEGMENT INFORMATION
Quarter Ended September 30, 1999
(UNAUDITED)
Hardware Segments
-----------------------------------------------
Personal Enterprise Global
(Dollars in millions) Technology Systems Systems Services
- ------------------------------------------------------------------------------------------------------------------------------
External revenue $ 2,515 $ 3,937 $ 2,536 $ 7,898
Internal revenue 887 12 132 688
-------- -------- -------- --------
Total revenue $ 3,402 $ 3,949 $ 2,668 $ 8,586
======== ======== ======== ========
Pre-tax income (loss) $ 317 $ (12) $ 298 $ 1,175
======== ======== ======== ========
Pre-tax income previously reported $ 285 $ (69) $ 295 $ 1,174
======== ======== ======== ========
Reconciliation of change in pre-tax income:
Effect of organization changes $ 21 $ 51 $ (10) $ --
Effect of expense allocation changes 11 6 13 1
-------- -------- -------- --------
Total net effect of reclassifications $ 32 $ 57 $ 3 $ 1
======== ======== ======== ========
Global Enterprise Total
(Dollars in millions) Software Financing Investments Segments
- ------------------------------------------------------------------------------------------------------------------------------
External revenue $ 3,010 $ 786 $ 393 $ 21,075
Internal revenue 168 194 4 2,085
-------- -------- -------- --------
Total revenue $ 3,178 $ 980 $ 397 $ 23,160
======== ======== ======== ========
Pre-tax income (loss) $ 669 $ 267 $ (198) $ 2,516
======== ======== ======== ========
Pre-tax income previously reported $ 597 $ 322 $ (89) $ 2,515
======== ======== ======== ========
Reconciliation of change in pre-tax income:
Effect of organization changes $ 54 $ -- $ (111) $ 5
Effect of expense allocation changes 18 (55) 2 (4)
-------- -------- -------- --------
Total net effect of reclassifications $ 72 $ (55) $ (109) $ 1
======== ======== ======== ========
-29-
Reconciliation to IBM as Reported:
Quarter Ended
(Dollars in million) September 30, 1999
------------------
Revenue:
Total reportable segments $ 23,160
Eliminations/other (2,016)
--------
Total IBM Consolidated $ 21,144
========
Pre-tax income:
Total reportable segments $ 2,516
Sales of IBM's Global Network 586
Third quarter actions (385)
Eliminations/other (88)
--------
Total IBM Consolidated $ 2,629
========
-30-
Attachment I (continued)
Management System Segment View
SEGMENT INFORMATION
Quarter Ended December 31, 1999
(UNAUDITED)
Hardware Segments
-----------------------------------------------
Personal Enterprise Global
(Dollars in millions) Technology Systems Systems Services
- ------------------------------------------------------------------------------------------------------------------------------
External revenue $ 2,760 $ 4,319 $ 3,160 $ 8,736
Internal revenue 1,010 19 148 651
-------- -------- -------- --------
Total revenue $ 3,770 $ 4,338 $ 3,308 $ 9,387
======== ======== ======== ========
Pre-tax income (loss) $ 181 $ (193) $ 392 $ 1,228
======== ======== ======== ========
Pre-tax income previously reported $ 279 $ (246) $ 281 $ 1,244
======== ======== ======== ========
Reconciliation of change in pre-tax income:
Effect of organization changes $ (112) $ 48 $ 97 $ --
Effect of expense allocation changes 14 5 14 (16)
-------- -------- -------- --------
Total net effect of reclassifications $ (98) $ 53 $ 111 $ (16)
======== ======== ======== ========
Global Enterprise Total
(Dollars in millions) Software Financing Investments Segments
- ------------------------------------------------------------------------------------------------------------------------------
External revenue $ 3,606 $ 945 $ 458 $ 23,984
Internal revenue 206 236 1 2,271
-------- -------- -------- --------
Total revenue $ 3,812 $ 1,181 $ 459 $ 26,255
======== ======== ======== ========
Pre-tax income (loss) $ 968 $ 278 $ (161) $ 2,693
======== ======== ======== ========
Pre-tax income previously report $ 876 $ 339 $ (62) $ 2,711
======== ======== ======== ========
Reconciliation of change in pre-tax income:
Effect of organization changes $ 65 $ -- $ (102) $ (4)
Effect of expense allocation changes 27 (61) 3 (14)
-------- -------- -------- --------
Total net effect of reclassifications $ 92 $ (61) $ (99) $ (18)
======== ======== ======== ========
-31-
Reconciliation to IBM as Reported:
Quarter Ended
(Dollars in million) December 31, 1999
-----------------
Revenue:
Total reportable segments $ 26,255
Eliminations/other (2,073)
--------
Total IBM Consolidated $ 24,182
========
Pre-tax income:
Total reportable segments $ 2,693
Eliminations/other 292
--------
Total IBM Consolidated $ 2,985
========
-32-
Attachment I (continued)
Management System Segment View
SEGMENT INFORMATION
Full Year Ended December 31, 1999
Hardware Segments
-----------------------------------------------
Personal Enterprise Global
(Dollars in millions) Technology Systems Systems Services
- ------------------------------------------------------------------------------------------------------------------------------
External revenue $ 9,832 $ 16,118 $ 11,503 $ 32,172
Internal revenue 3,777 45 565 2,636
-------- -------- -------- --------
Total revenue $ 13,609 $ 16,163 $ 12,068 $ 34,808
======== ======== ======== ========
Pre-tax income (loss) $ 586 $ (360) $ 1,832 $ 4,464
======== ======== ======== ========
Pre-tax income previously reported $ 764 $ (557) $ 1,590 $ 4,528
======== ======== ======== ========
Reconciliation of change in pre-tax income:
Effect of organization changes $ (219) $ 181 $ 202 $ --
Effect of expense allocation changes 41 16 40 (64)
-------- -------- -------- --------
Total net effect of reclassifications $ (178) $ 197 $ 242 $ (64)
======== ======== ======== ========
Global Enterprise Total
(Dollars in millions) Software Financing Investments Segments
- ------------------------------------------------------------------------------------------------------------------------------
External revenue $ 12,662 $ 3,219 $ 1,651 $ 87,157
Internal revenue 767 835 19 8,644
-------- -------- -------- --------
Total revenue $ 13,429 $ 4,054 $ 1,670 $ 95,801
======== ======== ======== ========
Pre-tax income (loss) $ 3,099 $ 1,047 $ (697) $ 9,971
======== ======== ======== ========
Pre-tax income previously reported $ 2,830 $ 1,286 $ (324) $ 10,117
======== ======== ======== ========
Reconciliation of change in pre-tax income:
Effect of organizational changes $ 212 $ -- $ (381) $ (5)
Effect of expense allocation changes 57 (239) 8 (141)
-------- -------- -------- --------
Total net effect of reclassifications $ 269 $ (239) $ (373) $ (146)
======== ======== ======== ========
-33-
Reconciliation to IBM as Reported:
Full Year Ended
(Dollars in million) December 31, 1999
-----------------
Revenue:
Total reportable segments $ 95,801
Elimination of internal revenue (8,644)
Other revenue 391
--------
Total IBM Consolidated $ 87,548
========
Pre-tax income:
Total reportable segments $ 9,971
Sale of IBM's Global Network 4,057
1999 Actions (2,205)
Eliminations/ other (66)
--------
Total IBM Consolidated $ 11,757
========
-34-
Attachment II
Management System Segment View
SEGMENT INFORMATION
Quarter Ended March 31, 1998
(UNAUDITED)
Hardware Segments
-----------------------------------------------
Personal Enterprise Global
(Dollars in millions) Technology Systems Systems Services
- ------------------------------------------------------------------------------------------------------------------------------
External revenue $ 2,110 $ 2,511 $ 2,802 $ 6,341
Internal revenue 984 6 123 659
-------- -------- -------- --------
Total revenue $ 3,094 $ 2,517 $ 2,925 $ 7,000
======== ======== ======== ========
Pre-tax income (loss) $ 497 $ (436) $ 275 $ 677
======== ======== ======== ========
Pre-tax income previously reported $ 238 $ (458) $ 508 $ 727
======== ======== ======== ========
Reconciliation of change in pre-tax income:
Effect of organization changes $ 164 $ (8) $ (176) $ --
Effect of expense allocation changes 95 30 (57) (50)
-------- -------- -------- --------
Total net effect of reclassifications $ 259 $ 22 $ (233) $ (50)
======== ======== ======== ========
Global Enterprise Total
(Dollars in millions) Software Financing Investments Segments
- ------------------------------------------------------------------------------------------------------------------------------
External revenue $ 2,644 $ 725 $ 385 $ 17,518
Internal revenue 186 161 11 2,130
-------- -------- -------- --------
Total revenue $ 2,830 $ 886 $ 396 $ 19,648
======== ======== ======== ========
Pre-tax income (loss) $ 613 $ 217 $ (126) $ 1,717
======== ======== ======== ========
Pre-tax income previously reported $ 595 $ 279 $ (150) $ 1,739
======== ======== ======== ========
Reconciliation of change in pre-tax income:
Effect of organization changes $ 16 $ -- $ 5 $ 1
Effect of expense allocation changes 2 (62) 19 (23)
-------- -------- -------- --------
Total net effect of reclassifications $ 18 $ (62) $ 24 $ (22)
======== ======== ======== ========
-35-
Reconciliation to IBM as Reported:
Quarter Ended
(Dollars in million) March 31, 1998
--------------
Revenue:
Total reportable segments $ 19,648
Eliminations/other (2,030)
--------
Total IBM Consolidated $ 17,618
========
Pre-tax income:
Total reportable segments $ 1,717
Eliminations/other (194)
--------
Total IBM Consolidated $ 1,523
========
-36-
Attachment II (continued)
Management System Segment View
SEGMENT INFORMATION
Quarter Ended June 30, 1998
(UNAUDITED)
Hardware Segments
-----------------------------------------------
Personal Enterprise Global
(Dollars in millions) Technology Systems Systems Services
- ------------------------------------------------------------------------------------------------------------------------------
External revenue $ 1,998 $ 2,726 $ 3,061 $ 6,969
Internal revenue 1,113 7 150 632
-------- -------- -------- --------
Total revenue $ 3,111 $ 2,733 $ 3,211 $ 7,601
======== ======== ======== ========
Pre-tax income (loss) $ 583 $ (429) $ 279 $ 915
======== ======== ======== ========
Pre-tax income previously reported $ 281 $ (436) $ 551 $ 949
======== ======== ======== ========
Reconciliation of change in pre-tax income:
Effect of organizational changes $ 194 $ 10 $ (179) $ --
Effect of expense allocation changes 108 (3) (93) (34)
-------- -------- -------- --------
Total net effect of reclassifications $ 302 $ 7 $ (272) $ (34)
======== ======== ======== ========
Global Enterprise Total
(Dollars in millions) Software Financing Investments Segments
- ------------------------------------------------------------------------------------------------------------------------------
External revenue $ 2,866 $ 741 $ 410 $ 18,771
Internal revenue 175 166 13 2,256
-------- -------- -------- --------
Total revenue $ 3,041 $ 907 $ 423 $ 21,027
======== ======== ======== ========
Pre-tax income (loss) $ 677 $ 237 $ (191) $ 2,071
======== ======== ======== ========
Pre-tax income previously reported $ 626 $ 289 $ (161) $ 2,099
======== ======== ======== ========
Reconciliation of change in pre-tax income:
Effect of organizational changes $ 34 $ -- $ (43) $ 16
Effect of expense allocation changes 17 (52) 13 (44)
-------- -------- -------- --------
Total net effect of reclassifications $ 51 $ (52) $ (30) $ (28)
======== ======== ======== ========
-37-
Reconciliation to IBM as Reported:
Quarter Ended
(Dollars in million) June 30, 1998
-------------
Revenue:
Total reportable segments $ 21,027
Eliminations/other (2,204)
--------
Total IBM Consolidated $ 18,823
========
Pre-tax income:
Total reportable segments $ 2,071
Eliminations/other 12
--------
Total IBM Consolidated $ 2,083
========
-38-
Attachment II (continued)
Management System Segment View
SEGMENT INFORMATION
Quarter Ended September 30, 1998
(UNAUDITED)
Hardware Segments
-----------------------------------------------
Personal Enterprise Global
(Dollars in millions) Technology Systems Systems Services
- ------------------------------------------------------------------------------------------------------------------------------
External revenue $ 2,104 $ 3,527 $ 3,478 $ 7,046
Internal revenue 1,197 8 185 742
-------- -------- -------- --------
Total revenue $ 3,301 $ 3,535 $ 3,663 $ 7,788
======== ======== ======== ========
Pre-tax income (loss) $ 426 $ (111) $ 487 $ 848
======== ======== ======== ========
Pre-tax income previously reported $ 137 $ (122) $ 731 $ 850
======== ======== ======== ========
Reconciliation of change in pre-tax income:
Effect of organizational changes $ 190 $ 15 $ (181) $ --
Effect of expense allocation changes 99 (4) (63) (2)
-------- -------- -------- --------
Total net effect of reclassifications $ 289 $ 11 $ (244) $ (2)
======== ======== ======== ========
Global Enterprise Total
(Dollars in millions) Software Financing Investments Segments
- ------------------------------------------------------------------------------------------------------------------------------
External revenue $ 2,808 $ 706 $ 394 $ 20,063
Internal revenue 191 177 16 2,516
-------- -------- -------- --------
Total revenue $ 2,999 $ 883 $ 410 $ 22,579
======== ======== ======== ========
Pre-tax income (loss) $ 579 $ 232 $ (171) $ 2,290
======== ======== ======== ========
Pre-tax income previously reported $ 553 $ 282 $ (164) $ 2,267
======== ======== ======== ========
Reconciliation of change in pre-tax income:
Effect of organizational changes $ 5 $ -- $ (20) $ 9
Effect of expense allocation changes 21 (50) 13 14
-------- -------- -------- --------
Total net effect of reclassifications $ 26 $ (50) $ (7) $ 23
======== ======== ======== ========
-39-
Reconciliation to IBM as Reported:
Quarter Ended
(Dollars in million) September 30, 1998
------------------
Revenue:
Total reportable segments $ 22,579
Eliminations/other (2,484)
--------
Total IBM Consolidated $ 20,095
========
Pre-tax income:
Total reportable segments $ 2,290
Eliminations/other (158)
--------
Total IBM Consolidated $ 2,132
========
-40-
Attachment II (continued)
Management System Segment View
SEGMENT INFORMATION
Quarter Ended December 31, 1998
(UNAUDITED)
Hardware Segments
-----------------------------------------------
Personal Enterprise Global
(Dollars in millions) Technology Systems Systems Services
- ------------------------------------------------------------------------------------------------------------------------------
External revenue $ 2,489 $ 4,655 $ 4,506 $ 8,560
Internal revenue 1,249 8 225 714
-------- -------- -------- --------
Total revenue $ 3,738 $ 4,663 $ 4,731 $ 9,274
======== ======== ======== ========
Pre-tax income (loss) $ 472 $ (10) $ 907 $ 1,163
======== ======== ======== ========
Pre-tax income previously reported $ 299 $ 24 $ 1,052 $ 1,231
======== ======== ======== ========
Reconciliation of change in pre-tax income:
Effect of organizational changes $ 5 $ 18 $ (20) $ --
Effect of expense allocation changes 168 (52) (125) (68)
-------- -------- -------- --------
Total net effect of reclassifications $ 173 $ (34) $ (145) $ (68)
======== ======== ======== ========
Global Enterprise Total
(Dollars in millions) Software Financing Investments Segments
- ------------------------------------------------------------------------------------------------------------------------------
External revenue $ 3,545 $ 807 $ 602 $ 25,164
Internal revenue 197 288 16 2,697
-------- -------- -------- --------
Total revenue $ 3,742 $ 1,095 $ 618 $ 27,861
======== ======== ======== ========
Pre-tax income (loss) $ 873 $ 246 $ (171) $ 3,480
======== ======== ======== ========
Pre-tax income previously report $ 814 $ 315 $ (141) $ 3,594
======== ======== ======== ========
Reconciliation of change in pre-tax income:
Effect of organizational changes $ 27 $ -- $ (52) $ (22)
Effect of expense allocation changes 32 (69) 22 (92)
-------- -------- -------- --------
Total net effect of reclassifications $ 59 $ (69) $ (30) $ (114)
======== ======== ======== ========
-41-
Reconciliation to IBM as Reported:
Quarter Ended
(Dollars in million) December 31, 1998
-----------------
Revenue:
Total reportable segments $ 27,861
Eliminations/other (2,730)
--------
Total IBM Consolidated $ 25,131
========
Pre-tax income:
Total reportable segments $ 3,480
Eliminations/other (178)
--------
Total IBM Consolidated $ 3,302
========
-42-
Attachment II (continued)
Management System Segment View
SEGMENT INFORMATION
Full Year Ended December 31, 1998
Hardware Segments
-----------------------------------------------
Personal Enterprise Global
(Dollars in millions) Technology Systems Systems Services
- ------------------------------------------------------------------------------------------------------------------------------
External revenue $ 8,701 $ 13,419 $ 13,847 $ 28,916
Internal revenue 4,543 29 683 2,747
-------- -------- -------- --------
Total revenue $ 13,244 $ 13,448 $ 14,530 $ 31,663
======== ======== ======== ========
Pre-tax income (loss) $ 1,978 $ (986) $ 1,948 $ 3,603
======== ======== ======== ========
Pre-tax income previously reported $ 955 $ (992) $ 2,842 $ 3,757
======== ======== ======== ========
Reconciliation of change in pre-tax income:
Effect of organizational changes $ 553 $ 35 $ (556) $ --
Effect of expense allocation changes 470 (29) (338) (154)
-------- -------- -------- --------
Total net effect of reclassifications $ 1,023 $ 6 $ (894) $ (154)
======== ======== ======== ========
Global Enterprise Total
(Dollars in millions) Software Financing Investments Segments
- ------------------------------------------------------------------------------------------------------------------------------
External revenue $ 11,863 $ 2,979 $ 1,791 $ 81,516
Internal revenue 749 792 56 9,599
-------- -------- -------- --------
Total revenue $ 12,612 $ 3,771 $ 1,847 $ 91,115
======== ======== ======== ========
Pre-tax income (loss) $ 2,742 $ 932 $ (659) $ 9,558
======== ======== ======== ========
Pre-tax income previously reported $ 2,588 $ 1,165 $ (616) $ 9,699
======== ======== ======== ========
Reconciliation of change in pre-tax income:
Effect of organizational changes $ 82 $ -- $ (110) $ 4
Effect of expense allocation changes 72 (233) 67 (145)
-------- -------- -------- --------
Total net effect of reclassifications $ 154 $ (233) $ (43) $ (141)
======== ======== ======== ========
-43-
Reconciliation to IBM as Reported:
Full Year Ended
(Dollars in million) December 31, 1998
-----------------
Revenue:
Total reportable segments $ 91,115
Eliminations internal revenue (9,599)
Other revenue 151
--------
Total IBM Consolidated $ 81,667
========
Pre-tax income:
Total reportable segments $ 9,558
Eliminations/other (518)
--------
Total IBM Consolidated $ 9,040
========
-44-
Attachment III
Management System Segment View
SEGMENT ASSET INFORMATION
Full Year Ended December 31, 1999
Hardware Segments
------------------------------------------
Personal Enterprise Global
(Dollars in millions) Technology Systems Systems Services
- ------------------------------------------------------------------------------------------------------------------------
Assets $ 9,459 $ 1,611 $ 3,596 $ 2,060
Depreciation/amortization 2,088 147 225 367
Capital expenditures/investment software 1,803 177 338 249
Interest income -- -- -- --
Interest expense -- -- -- --
Effect of organizational changes
Assets (950) 239 750 --
Depreciation/amortization (54) 20 34 --
Capital expenditures/investment in
software (31) 5 26 --
Global Enterprise Total
(Dollars in millions) Software Financing Investments Segments
- ------------------------------------------------------------------------------------------------------------------------
Assets $ 2,527 $ 39,686 $ 369 $ 59,308
Depreciation/amortization 576 2,976 15 6,394
Capital expenditures/investment software 656 3,217 12 6,452
Interest income -- 2,961 -- 2,961
Interest expense -- 1,232 -- 1,232
Effect of organizational changes
Assets -- -- (39) --
Depreciation/amortization -- -- -- --
Capital expenditures/investment in software -- -- -- --
Reconciliation to IBM as Reported:
(Dollars in million)
Assets:
Total reportable segments $ 59,308
Elimination internal transactions (5,776)
Unallocated amounts:
Cash and marketable securities 4,563
Notes and accounts receivable 7,004
Deferred tax assets 5,428
Plant, other property and equipment 6,146
Pension assets 5,636
Other 5,186
--------
Total IBM Consolidated $ 87,495
========
-45-
Attachment III (continued)
Management System Segment View
SEGMENT ASSET INFORMATION
Full Year Ended December 31, 1998
Hardware Segments
--------------------------------------------------
Personal Enterprise Global
(Dollars in millions) Technology Systems Systems Services
- ------------------------------------------------------------------------------------------------------------------------------------
Assets $ 10,191 $ 1,729 $ 2,957 $ 2,236
Depreciation/amortization 1,163 137 206 322
Capital expenditures/investment software 2,006 173 309 358
Interest income -- -- -- --
Interest expense -- -- -- --
Effect of organizational changes
Assets (1,060) 265 851 --
Depreciation/amortization (44) 16 28 --
Capital expenditures/investment in software (38) 17 21 --
Global Enterprise Total
(Dollars in millions) Software Financing Investments Segments
- ------------------------------------------------------------------------------------------------------------------------------------
Assets $ 2,577 $ 40,109 $ 307 $ 60,106
Depreciation/amortization 681 2,768 15 5,292
Capital expenditures/investment software 424 3,438 19 6,727
Interest income -- 2,725 -- 2,725
Interest expense -- 1,252 -- 1,252
Effect of organizational changes
Assets -- -- (56) --
Depreciation/amortization -- -- -- --
Capital expenditures/investment in software -- -- -- --
Reconciliation to IBM as Reported:
(Dollars in million)
Assets:
Total reportable segments $ 60,106
Elimination internal transactions (7,519)
Unallocated amounts:
Cash and marketable securities 4,295
Notes and accounts receivable 7,715
Deferred tax assets 5,376
Plant, other property and equipment 7,706
Pension assets 4,836
Other 3,585
--------
Total IBM Consolidated $ 86,100
========
-46-
Attachment IV
INTERNATIONAL BUSINESS MACHINES CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF EARNINGS
1999
(Dollars in millions except
per share amounts)
1st Qtr.* 2nd Qtr.* 3rd Qtr.* 4th Qtr.* Full Year
-------- -------- -------- -------- ---------
Revenue:
Hardware $ 8,751 $ 9,622 $ 9,065 $ 10,450 $ 37,888
Global Services 7,550 7,988 7,898 8,736 32,172
Software 2,920 3,126 3,010 3,606 12,662
Global Financing 705 743 774 915 3,137
Enterprise Investments/Other 391 426 397 475 1,689
-------- -------- -------- -------- --------
Total revenue 20,317 21,905 21,144 24,182 87,548
Cost:
Hardware 6,352 6,851 6,750 7,638 27,591
Global Services 5,567 5,721 5,715 6,301 23,304
Software 555 520 567 598 2,240
Global Financing 311 332 335 468 1,446
Enterprise Investments/Other 274 257 213 294 1,038
-------- -------- -------- -------- --------
Total cost 13,059 13,681 13,580 15,299 55,619
-------- -------- -------- -------- --------
Gross profit 7,258 8,224 7,564 8,883 31,929
Expense:
Selling, general and
administrative 3,937 2,846 3,501 4,445 14,729
Research, development and
engineering 1,181 1,293 1,383 1,416 5,273
Other income (134) (155) (134) (134) (557)
Interest expense 174 197 185 171 727
-------- -------- -------- -------- --------
Total expense 5,158 4,181 4,935 5,898 20,172
Income before income taxes 2,100 4,043 2,629 2,985 11,757
Income tax provision 630 1,652 867 896 4,045
-------- -------- -------- -------- --------
Net income 1,470 2,391 1,762 2,089 7,712
Preferred stock dividends 5 5 5 5 20
-------- -------- -------- -------- --------
Net income applicable to common
shareholders $ 1,465 $ 2,386 $ 1,757 $ 2,084 $ 7,692
======== ======== ======== ======== ========
* Unaudited
-47-
INTERNATIONAL BUSINESS MACHINES CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF EARNINGS - (CONTINUED)
1999
1st Qtr.* 2nd Qtr.* 3rd Qtr.* 4th Qtr.* Full Year
--------- --------- --------- --------- ---------
Earnings per share of common
stock - assuming dilution $ 0.78 $ 1.28 $ 0.93 $ 1.12 $ 4.12
Earnings per share of common
stock - basic $ 0.80 $ 1.32 $ 0.97 $ 1.16 $ 4.25
Average number of common
shares outstanding: (millions)
Assuming dilution 1,882.9 1,870.6 1,869.6 1,847.8 1,871.1
Basic 1,823.8 1,812.1 1,805.2 1,793.0 1,808.6
Cash dividends per common share $ 0.11 $ 0.12 $ 0.12 $ 0.12 $ 0.47
* Unaudited
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Attachment V
INTERNATIONAL BUSINESS MACHINES CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF EARNINGS
1998
Dollars in millions except
per share amounts)
1st Qtr.* 2nd Qtr.* 3rd Qtr.* 4th Qtr.* Full Year
-------- -------- -------- -------- ---------
Revenue:
Hardware $ 7,426 $ 7,869 $ 9,110 $ 11,691 $ 36,096
Global Services 6,341 6,969 7,046 8,560 28,916
Software 2,644 2,866 2,808 3,545 11,863
Global Financing 719 712 679 767 2,877
Enterprise Investments/Other 488 407 452 568 1,915
-------- -------- -------- -------- --------
Total revenue 17,618 18,823 20,095 25,131 81,667
Cost:
Hardware 5,295 5,442 6,227 7,689 24,653
Global Services 4,630 5,065 5,222 6,208 21,125
Software 540 548 544 628 2,260
Global Financing 380 377 351 386 1,494
Enterprise Investments/Other 323 245 284 411 1,263
-------- -------- -------- -------- --------
Total cost 11,168 11,677 12,628 15,322 50,795
-------- -------- -------- -------- --------
Gross profit 6,450 7,146 7,467 9,809 30,872
Expense:
Selling, general and
administrative 3,719 3,812 4,057 5,074 16,662
Research, development and
engineering 1,179 1,220 1,240 1,407 5,046
Other income (150) (130) (122) (187) (589)
Interest expense 179 161 160 213 713
-------- -------- -------- -------- --------
Total expense 4,927 5,063 5,335 6,507 21,832
Income before income taxes 1,523 2,083 2,132 3,302 9,040
Income tax provision 487 631 638 956 2,712
-------- -------- -------- -------- --------
Net income 1,036 1,452 1,494 2,346 6,328
Preferred stock dividends 5 5 5 5 20
-------- -------- -------- -------- --------
Net income applicable to common
shareholders $ 1,031 $ 1,447 $ 1,489 $ 2,341 $ 6,308
======== ======== ======== ======== ========
* Unaudited
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INTERNATIONAL BUSINESS MACHINES CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF EARNINGS - (CONTINUED)
1998
1st Qtr.* 2nd Qtr.* 3rd Qtr.* 4th Qtr.* Full Year
--------- --------- --------- --------- ---------
Earnings per share of common
stock - assuming dilution $ 0.53 $ 0.75 $ 0.78 $ 1.24 $ 3.29
Earnings per share of common
stock - basic $ 0.54 $ 0.77 $ 0.80 $ 1.27 $ 3.38
Average number of common
shares outstanding: (millions)
Assuming dilution 1,946.6 1,928.7 1,909.0 1,894.3 1,920.1
Basic 1,900.4 1,879.2 1,856.9 1,839.5 1,869.0
Cash dividends per common share $ 0.10 $ 0.11 $ 0.11 $ 0.11 $ 0.43
* Unaudited
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