We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
International Business Machines Corp | NYSE:IBM | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-1.83 | -1.08% | 167.08 | 167.87 | 165.73 | 167.50 | 8,983,798 | 01:00:00 |
IBM (NYSE:IBM):
NOTE: Results from continuing operations exclude discontinued Microelectronics business, to be acquired by GLOBALFOUNDRIES as announced today.
IBM (NYSE:IBM) today announced third-quarter 2014 diluted earnings from continuing operations of $3.46 per share, compared with diluted earnings of $3.77 per share in the third-quarter of 2013, a decrease of 8 percent. Operating (non-GAAP) diluted earnings from continuing operations were $3.68 per share compared with operating diluted earnings of $4.08 per share in the third-quarter of 2013, a decrease of 10 percent.
Third-quarter net income from continuing operations was $3.5 billion compared with $4.1 billion in the third-quarter of 2013, a decrease of 17 percent. Operating (non-GAAP) net income from continuing operations was $3.7 billion, as compared with $4.5 billion in the third-quarter of 2013, a decrease of 18 percent.
For the third-quarter of 2014, IBM reported consolidated net income of $18 million or $0.02 of diluted earnings per share, which includes a net loss from discontinued operations of $3.4 billion, or $3.44 per diluted common share.
Total revenues from continuing operations for the third-quarter of 2014 of $22.4 billion were down 4 percent (down 2 percent, adjusting for the impact of the divested customer care outsourcing business and for currency) from the third-quarter of 2013.
“We are disappointed in our performance. We saw a marked slowdown in September in client buying behavior, and our results also point to the unprecedented pace of change in our industry. While we did not produce the results we expected to achieve, we again performed well in our strategic growth areas – cloud, data and analytics, security, social and mobile - where we continue to shift our business. We will accelerate this transformation,” said Ginni Rometty, IBM chairman, president and chief executive officer.
“We are executing on a clear strategy that is moving IBM to higher value, and we've taken significant actions to exit nonstrategic elements of the business. This includes the announcement that we will divest semiconductor manufacturing to focus on research and development that will differentiate our systems. We will continue to make the investments and the changes necessary to manage our business for the long term. And we remain fully committed to returning significant value to shareholders through dividends and share repurchase."
Discontinued Operations
The company has reached an agreement under which GLOBALFOUNDRIES will acquire IBM’s Microelectronics OEM semiconductor business and manufacturing operations. The transaction with GLOBALFOUNDRIES is expected to close in 2015. The results from continuing operations exclude the Microelectronics business, which is presented separately as discontinued operations.
The loss from discontinued operations in the third quarter includes a non-recurring pre-tax charge of $4.7 billion, or $3.3 billion, net of tax. The charge includes an impairment to reflect fair value less estimated costs to sell the Microelectronics business assets, which the company has classified as held for sale at September 30, 2014. The charge also includes other estimated costs related to the transaction, including cash consideration expected to be transferred to GLOBALFOUNDRIES of approximately $1.5 billion. The cash consideration is expected to be paid to GLOBALFOUNDRIES over the next three years and will be adjusted by the amount of the working capital due by GLOBALFOUNDRIES to IBM, estimated to be $0.2 billion. In addition, discontinued operations includes operational net losses from the Microelectronics business of $0.1 billion in both the third quarter of 2014 and the third quarter of 2013.
Third-Quarter GAAP – Operating (non-GAAP) Reconciliation
Third-quarter operating (non-GAAP) diluted earnings from continuing operations exclude $0.22 per share of charges; $0.16 per share for the amortization of purchased intangible assets and other acquisition-related charges; and $0.06 per share for retirement-related charges driven by changes to plan assets and liabilities primarily related to market performance.
Earnings Guidance
The company will provide earnings guidance during today’s quarterly earnings conference call, and it is included in the presentation charts.
Geographic Regions
The Americas’ third-quarter revenues were $10.1 billion, a decrease of 2 percent (down 1 percent, adjusting for currency) from the 2013 period. Revenues from Europe/Middle East/Africa were down 2 percent to $7.2 billion (down 3 percent, adjusting for currency). Asia-Pacific revenues decreased 9 percent (down 8 percent, adjusting for currency) to $5.0 billion.
Growth Markets
Revenues from the company’s growth markets were down 6 percent (down 5 percent, adjusting for currency). Revenues in the BRIC countries — Brazil, Russia, India and China — were down 7 percent (down 7 percent, adjusting for currency).
Services
Global Services segment revenues decreased 3 percent (flat adjusting for the impact of the divested customer care outsourcing business and for currency) to $13.7 billion. Global Technology Services segment revenues decreased 3 percent (up 1 percent adjusting for the impact of the divested customer care outsourcing business and for currency) to $9.2 billion. Global Business Services segment revenues were down 2 percent (down 1 percent, adjusting for currency) to $4.5 billion.
Pre-tax income from Global Technology Services decreased 11 percent and pre-tax margin decreased to 17.7 percent. Global Business Services pre-tax income decreased 15 percent and pre-tax margin decreased to 17.5 percent.
The estimated services backlog at September 30, 2014 was $128 billion, down 7 percent year to year adjusting for the divested customer care outsourcing business (down 2 percent, adjusting for currency).
Software
Revenues from the Software segment were $5.7 billion, down 2 percent (down 2 percent, adjusting for currency) compared with the third-quarter of 2013. Software pre-tax income decreased 3 percent and pre-tax margin decreased to 35.5 percent.
Revenues from IBM’s key middleware products, which include WebSphere, Information Management, Tivoli, Workforce Solutions and Rational products, were $3.7 billion, down 1 percent (down 1 percent, adjusting for currency) versus the third-quarter of 2013. Operating systems revenues of $513 million were down 11 percent (down 11 percent, adjusting for currency) compared with the prior-year quarter.
Financing
Global Financing segment revenues decreased 3 percent (down 3 percent, adjusting for currency) in the third-quarter to $487 million. Pre-tax income for the segment decreased 4 percent to $475 million.
Hardware
Revenues from continuing operations from the Systems and Technology segment totaled $2.4 billion for the quarter, down 15 percent (down 15 percent, adjusting for currency) from the third-quarter of 2013. Systems and Technology pre-tax loss increased $91 million to a loss of $99 million.
Revenues from Power Systems were down 12 percent compared with the 2013 period. Revenues from System x were down 10 percent. Revenues from System z mainframe server products decreased 35 percent compared with the year-ago period. Revenues from System Storage decreased 6 percent.
Gross Profit
The company’s total gross profit margin from continuing operations was 48.6 percent in the 2014 third-quarter period compared with 49.0 percent in the 2013 third-quarter period. Total operating (non-GAAP) gross profit margin from continuing operations was 49.2 percent in the 2014 third-quarter compared with 50.1 percent in the 2013 third-quarter period.
Expense
Total expense and other income from continuing operations increased 1 percent to $6.5 billion compared with the prior year period. S,G&A expense of $5.3 billion was flat year over year. R,D&E expense of $1.4 billion was flat compared with the year-ago period. Intellectual property and custom development income decreased to $145 million compared with $191 million a year ago. Other (income) and expense was income of $103 million compared with prior-year income of $63 million. Interest expense increased to $126 million compared with $97 million in the prior year period.
Total operating (non-GAAP) expense and other income from continuing operations increased 2 percent to $6.4 billion compared with the prior-year period. Operating (non-GAAP) S,G&A expense increased 2 percent to $5.1 billion compared with the prior-year period. Operating (non-GAAP) R,D&E expense of $1.4 billion was up 2 percent compared with the year-ago period.
Pre-Tax Income
Pre-tax income from continuing operations decreased 12 percent to $4.4 billion and pre-tax margin of 19.5 percent was down 1.8 points compared with the prior-year period. Operating (non-GAAP) pre-tax income decreased 15 percent to $4.6 billion and pre-tax margin was 20.7 percent, down 2.6 points, compared to the year-ago period.
***
IBM’s tax rate from continuing operations was 20.8 percent, up 4.0 points year over year; operating (non-GAAP) tax rate was 20.8 percent, up 3.2 points compared to the year-ago period. The change in the third-quarter tax rate is driven by discrete benefits associated with foreign tax audits in the third-quarter 2013.
Net income margin from continuing operations decreased 2.3 points to 15.4 percent. Total operating (non-GAAP) net income margin decreased 2.8 points to 16.4 percent.
The weighted-average number of diluted common shares outstanding in the third-quarter 2014 was 998 million compared with 1.10 billion shares in the same period of 2013. As of September 30, 2014, there were 990 million basic common shares outstanding.
Debt, including Global Financing, totaled $45.7 billion, compared with $39.7 billion at year-end 2013. From a management segment view, Global Financing debt totaled $28.6 billion versus $27.5 billion at year-end 2013, resulting in a debt-to-equity ratio of 7.4 to 1. Non-global financing debt totaled $17.1 billion, an increase of $4.8 billion since year-end 2013, resulting in a debt-to-capitalization ratio of 61.9 percent (higher than the ratio at year-end 2013).
IBM ended the third-quarter 2014 with $9.6 billion of cash on hand and generated free cash flow of $2.2 billion, excluding Global Financing receivables, down approximately $0.1 billion year over year. In the third quarter of 2014, the company returned $2.8 billion to shareholders through $1.1 billion in dividends and $1.7 billion of gross share repurchases.
At the end of September 2014, IBM had approximately $1.4 billion remaining from the current share repurchase authorization. The company expects to request an additional share repurchase authorization at the October 2014 board meeting.
Year-To-Date 2014 Results
Net income from continuing operations for the nine months ended September 30, 2014 was $10.2 billion compared with $10.7 billion in the year-ago period, a decrease of 4 percent. Diluted earnings per share from continuing operations were $10.09, up 5 percent compared to the 2013 period. The consolidated diluted earnings per share were $6.44 as compared to $9.27, down 31 percent as compared to the 2013 period. Revenues from continuing operations for the nine-month period totaled $68.7 billion, a decrease of 3 percent (down 3 percent, adjusting for currency) compared with $71.0 billion for the first nine months of 2013.
Operating (non-GAAP) net income from continuing operations for the nine months ended September 30, 2014 was $10.9 billion compared with $11.7 billion in the year-ago period, a decrease of 7 percent. Operating (non-GAAP) diluted earnings per share from continuing operations were $10.76 compared with $10.54 per diluted share for the 2013 period, an increase of 2 percent.
Forward-Looking and Cautionary Statements
Except for the historical information and discussions contained herein, statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the company’s current assumptions regarding future business and financial performance. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the following: a downturn in economic environment and client spending budgets; the company’s failure to meet growth and productivity objectives; a failure of the company’s innovation initiatives; risks from investing in growth opportunities; failure of the company’s intellectual property portfolio to prevent competitive offerings and the failure of the company to obtain necessary licenses; cybersecurity and data privacy considerations; fluctuations in financial results, impact of local legal, economic, political and health conditions; adverse effects from environmental matters, tax matters and the company’s pension plans; ineffective internal controls; the company’s use of accounting estimates; the company’s ability to attract and retain key personnel and its reliance on critical skills; impacts of relationships with critical suppliers and business with government clients; currency fluctuations and customer financing risks; impact of changes in market liquidity conditions and customer credit risk on receivables; reliance on third party distribution channels; the company’s ability to successfully manage acquisitions, alliances and dispositions; risks from legal proceedings; risk factors related to IBM securities; and other risks, uncertainties and factors discussed in the company’s Form 10-Qs, Form 10-K and in the company’s other filings with the U.S. Securities and Exchange Commission (SEC) or in materials incorporated therein by reference. Any forward-looking statement in this release speaks only as of the date on which it is made. The company assumes no obligation to update or revise any forward-looking statements.
Presentation of Information in this Press Release
In an effort to provide investors with additional information regarding the company’s results as determined by generally accepted accounting principles (GAAP), the company has also disclosed in this press release the following non-GAAP information which management believes provides useful information to investors:
IBM results and expectations --
o presenting operating (non-GAAP) earnings per share from continuing operations amounts and related income statement items;
o presenting non-global financing debt-to-capitalization ratio;
o adjusting for free cash flow;
o adjusting for currency (i.e., at constant currency).
The rationale for management’s use of non-GAAP measures is included as part of the supplemental materials presented within the third-quarter earnings materials. These materials are available on the IBM investor relations Web site at www.ibm.com/investor and are being included in Attachment II (“Non-GAAP Supplemental Materials”) to the Form 8-K that includes this press release and is being submitted today to the SEC.
Conference Call and Webcast
IBM’s regular quarterly earnings conference call is scheduled to begin at 8:00 a.m. EDT, today. The Webcast may be accessed via a link at http://www.ibm.com/investor/events/earnings/3q14.html. Presentation charts will be available shortly before the Webcast.
Financial Results Below (certain amounts may not add due to use of rounded numbers; percentages presented are calculated from the underlying whole-dollar amounts).
INTERNATIONAL BUSINESS MACHINES CORPORATION
COMPARATIVE FINANCIAL RESULTS (Unaudited; Dollars in millions except per share amounts)
Three Months Ended
Nine Months Ended
September 30,
September 30,
Percent
Percent
2014
2013*
Change
2014
2013*
Change
REVENUE
Global Technology Services$
9,218
$
9,494
-2.9%$
$27,962
$28,634
-2.3% Gross profit margin38.5
%
39.0
%
38.3% 37.9% Global Business Services 4,459 4,558 -2.2% 13,476 13,649 -1.3% Gross profit margin31.3
%
32.9
%
30.4% 30.9% Software 5,708 5,798 -1.6% 17,857 17,792 0.4% Gross profit margin87.6
%
88.0
%
88.0% 88.0% Systems and Technology 2,434 2,864 -15.0% 7,590 9,041 -16.0% Gross profit margin 33.9%39.9
%
36.3% 40.2% Global Financing 487 502 -3.2% 1,502 1,488 1.0% Gross profit margin47.8
%
47.2
%
49.6% 46.4% Other 92 122 -24.3% 292 378 -22.8% Gross profit margin-143.8
%
-211.6
%
-162.5% -185.3%TOTAL REVENUE
22,397 23,338 -4.0% 68,680 70,982 -3.2%GROSS PROFIT
10,874 11,429 -4.9% 33,545 34,347 -2.3% Gross profit margin48.6
%
49.0
%
48.8% 48.4%EXPENSE AND OTHER INCOME
S,G&A 5,281 5,260 0.4% 17,146 17,463 -1.8% Expense to revenue23.6
%
22.5
%
25.0% 24.6% R,D&E 1,354 1,356 -0.1% 4,117 4,291 -4.0% Expense to revenue6.0
%
5.8
%
6.0% 6.0% Intellectual property and custom development income(145
)
(191
)
-23.9% (543) (621) -12.5% Other (income) and expense(103
)
(63
)
62.3% (433) (217) 99.3% Interest expense 126 97 30.2% 367 289 26.9%TOTAL EXPENSE AND
OTHER INCOME
6,513 6,458 0.9% 20,654 21,205 -2.6% Expense to revenue29.1
%
27.7
%
30.1% 29.9%INCOME FROM CONTINUING
OPERATIONS BEFORE INCOME TAXES
4,3614,972
-12.3%
12,891
13,142
-1.9%
Pre-tax margin19.5
%
21.3%
18.8%
18.5%
Provision for income taxes 906 832 8.8% 2,655 2,478 7.1% Effective tax rate20.8
%
16.7% 20.6% 18.9%INCOME FROM CONTINUING
OPERATIONS
$
3,455
$4,139
-16.5%
$10,237
$10,665
-4.0% Net margin15.4
%
17.7% 14.9% 15.0%DISCONTINUED OPERATIONS
Loss from discontinued operations, net of taxes(3,437
)
(98) (3,698) (366)NET INCOME
$
18
$4,041
-99.6%
$6,539
$10,299
-36.5%EARNINGS PER SHARE
OF COMMON STOCK:
ASSUMING DILUTION CONTINUING OPERATIONS$
3.46
$3.77
-8.2%
$10.09
$9.60
5.1% DISCOUNTINUED OPERATIONS($3.44
)
($0.09) ($3.65) ($0.33) ----- ----- ----- -----TOTAL
$
0.02
$3.68
-99.5%
$6.44
$9.27
-30.5% BASIC CONTINUING OPERATIONS$
3.48
$3.79
-8.2%
$10.15
$9.68
4.9% DISCOUNTINUED OPERATIONS($3.46
)
($0.09) ($3.67) ($0.33)-----
----- ----- -----TOTAL
$
0.02
$3.70
-99.5%
$6.48
$9.35
-30.7%WEIGHTED-AVERAGE NUMBER
OF COMMON SHARES OUT-
STANDING (M's):
ASSUMING DILUTION 997.7 1,098.8 1,014.9 1,110.7 BASIC 991.8 1,090.9 1,008.9 1,101.8 * Reclassified to reflect discontinued operations presentation. INTERNATIONAL BUSINESS MACHINES CORPORATION CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Unaudited) At At (Dollars in Millions) September 30, December 31, 2014 2013 ASSETS: Current Assets: Cash and cash equivalents $9,561 $10,716 Marketable securities 4 350 Notes and accounts receivable - trade (net of allowances of $316 in 2014 and $291 in 2013) 9,122 10,465 Short-term financing receivables (net of allowances of $432 in 2014 and $308 in 2013) 17,411 19,787 Other accounts receivable (net of allowances of $46 in 2014 and $36 in 2013) 1,469 1,584 Inventories, at lower of average cost or market: Finished goods 508 444 Work in process and raw materials1,848
1,866 Total inventories 2,356 2,310 Deferred taxes 2,219 1,651 Prepaid expenses and other current assets 5,022 4,488 Total Current Assets 47,163 51,350 Property, plant and equipment 39,950 40,475 Less: Accumulated depreciation 28,882 26,654 Property, plant and equipment - net 11,068 13,821 Long-term financing receivables (net of allowances of $87 in 2014 and $80 in 2013) 10,993 12,755 Prepaid pension assets 7,443 5,551 Deferred taxes 2,697 3,051 Goodwill 31,045 31,184 Intangible assets - net 3,373 3,871 Investments and sundry assets 5,126 4,639 Total Assets
$118,911
$126,223
LIABILITIES:Current Liabilities: Taxes
$2,475
$4,633
Short-term debt 12,876 6,862 Accounts payable 5,855 7,461 Compensation and benefits 3,965 3,893 Deferred income 11,346 12,557 Other accrued expenses and liabilities 5,788 4,748 Total Current Liabilities 42,306 40,154 Long-term debt 32,821 32,856 Retirement and nonpension postretirement benefit obligations 15,093 16,242 Deferred income 3,683 4,108 Other liabilities 10,613 9,934 Total Liabilities 104,515 103,294 EQUITY: IBM Stockholders' Equity: Common stock 52,446 51,594 Retained earnings 133,403 130,042 Treasury stock -- at cost (150,616) (137,242) Accumulated other comprehensive income/(loss) (20,978) (21,602) Total IBM stockholders' equity 14,255 22,792 Noncontrolling interests 140 137 Total Equity 14,395 22,929 Total Liabilities and Equity
$118,911
$126,223
INTERNATIONAL BUSINESS MACHINES CORPORATION CASH FLOW ANALYSIS (Unaudited)Three Months Ended
Nine Months Ended (Dollars in Millions)September 30,
September 30,
2014 2013 2014 2013 Net Cash from Operating Activities per GAAP:$3,904
$3,760
$10,809
$10,957
Less: the change in Global Financing (GF) Receivables 719 481 2,223 1,628 Net Cash from Operating Activities (Excluding GF Receivables) 3,185 3,279 8,587 9,329 Capital Expenditures, Net (1,008) (1,041) (2,803) (2,709) Free Cash Flow (Excluding GF Receivables) 2,177 2,238 5,783 6,620 Acquisitions (47) (2,382) (650) (2,562) Divestitures 81 235 489 247 Dividends (1,090) (1,037) (3,176) (3,033) Share Repurchase (1,719) (1,917) (13,547) (8,062) Non-GF Debt (483) 1,351 4,536 1,556 Other (includes GF Receivables, and GF Debt) 925 1,388 5,065 4,337 Change in Cash, Cash Equivalents and Short-term Marketable Securities ($156) ($125) ($1,501) ($897) INTERNATIONAL BUSINESS MACHINES CORPORATION SEGMENT DATA (Unaudited) THIRD-QUARTER 2014Pre-tax
Income/
(Loss)
(Dollars in Millions)
----------- Revenue ------------
Continuing
Pre-tax
External
Internal
Total
Operations
Margin
SEGMENTS
Global Technology Services
$9,218
$252
$9,470
$1,680
17.7% Y-T-Y change -2.9% -3.8% -2.9% -11.3% Global Business Services 4,459 135 4,594 805 17.5% Y-T-Y change -2.2% -23.7% -3.0% -15.0% Software 5,708 862 6,570 2,333 35.5% Y-T-Y change -1.6% 15.9% 0.4% -3.2% Systems and Technology 2,434 182 2,616 (99) -3.8% Y-T-Y change -15.0% 8.7% -13.7% NM Global Financing 487 598 1,084 475 43.9% Y-T-Y change -3.2% 16.7% 6.9% -3.7% TOTAL REPORTABLE SEGMENTS
$22,305
$2,029
$24,334
$5,195
21.3% Y-T-Y change -3.9% 8.9% -3.0% -9.5% Eliminations / Other 92 (2,029) (1,937) (835) TOTAL IBM CONSOLIDATED
$22,397
$0
$22,397
$4,361
19.5% Y-T-Y change -4.0% -4.0% -12.3% THIRD-QUARTER 2013*Pre-tax
Income/
(Loss) (Dollars in Millions)----------- Revenue ------------
Continuing Pre-tax External Internal Total Operations Margin SEGMENTS Global Technology Services
$9,494
$262
$9,755
$1,895
19.4% Global Business Services 4,558 177 4,735 948 20.0% Software 5,798 744 6,542 2,410 36.8% Systems and Technology* 2,864 168 3,032 (8) -0.3% Global Financing 502 512 1,015 494 48.7% TOTAL REPORTABLE SEGMENTS
$23,216
$1,863
$25,079
$5,738
22.9% Eliminations / Other 122 (1,863) (1,741) (766) TOTAL IBM CONSOLIDATED
$23,338
$0
$23,338
$4,972
21.3% * Reclassified to reflect discontinued operations presentation. NM = Not Meaningful INTERNATIONAL BUSINESS MACHINES CORPORATION SEGMENT DATA (Unaudited) NINE-MONTHS 2014 Pre-tax Income/ (Loss) (Dollars in Millions) ----------Revenue ----------- Continuing Pre-tax External Internal Total Operations MarginSEGMENTS
Global Technology Services
$27,962
$739
$28,701
$4,876
17.0% Y-T-Y change -2.3% -7.8% -2.5% -2.4% Global Business Services 13,476 416 13,892 2,266 16.3% Y-T-Y change -1.3% -23.7% -2.1% -0.3% Software 17,857 2,652 20,508 6,935 33.8% Y-T-Y change 0.4% 14.7% 2.0% 1.0% Systems and Technology 7,590 541 8,131 (354) -4.4% Y-T-Y change -16.0% 27.9% -14.1% 167.1% Global Financing 1,502 1,900 3,403 1,664 48.9% Y-T-Y change 1.0% 16.7% 9.2% 5.2% TOTAL REPORTABLE SEGMENTS
$68,387
$6,248
$74,635
$15,386
20.6% Y-T-Y change -3.1% 9.4% -2.2% -1.3% Eliminations / Other 292 (6,248) (5,955) (2,495) TOTAL IBM CONSOLIDATED
$68,680
$0
$68,680
$12,891
18.8% Y-T-Y change -3.2% -3.2% -1.9% NINE-MONTHS 2013* Pre-tax Income (Loss)/ (Dollars in Millions) --------Revenue ------------ Continuing Pre-tax External Internal Total Operations Margin SEGMENTS Global Technology Services
$28,634
$801
$29,435
$4,994
17.0% Global Business Services 13,649 545 14,194 2,274 16.0% Software 17,792 2,312 20,105 6,867 34.2% Systems and Technology* 9,041 423 9,464 (133) -1.4% Global Financing 1,488 1,628 3,116 1,582 50.8% TOTAL REPORTABLE SEGMENTS
$70,604
$5,710
$76,314
$15,583
20.4% Eliminations / Other 378 (5,710) (5,331) (2,441) TOTAL IBM CONSOLIDATED
$70,982
$0
$70,982
$13,142
18.5% * Reclassified to reflectdiscontinued operations presentation. INTERNATIONAL BUSINESS MACHINES CORPORATION U.S. GAAP TO OPERATING RESULTS RECONCILIATION (Unaudited; Dollars in millions except pershare amounts) THIRD-QUARTER 2014 CONTINUING OPERATIONS Acquisition- Retirement- Related Related Operating GAAP Adjustments* Adjustments** (Non-GAAP) Gross Profit
$10,874
$106
$43
$11,023
Gross Profit Margin 48.6% 0.5Pts 0.2Pts 49.2% S,G&A 5,281 (96) (48) 5,137 R,D&E 1,354 - 19 1,373 Other (Income) & Expense (103) 0 - (103) Total Expense & Other (Income) 6,513 (96) (29) 6,389 Pre-Tax Income from Continuing Operations 4,361 202 71 4,634 Pre-Tax Income Margin from Continuing Operations 19.5% 0.9Pts 0.3Pts 20.7% Provision for Income Taxes*** 906 42 14 963 Effective Tax Rate 20.8% 0.0Pts 0.0Pts 20.8% Income from Continuing Operations 3,455 159 57 3,671 Income Margin from Continuing Operations 15.4% 0.7Pts 0.3Pts 16.4% Loss from Discontinued Operations Net of Taxes (3,437) - - (3,437) Net Income 18 159 57 234 Diluted Earnings Per Share: Continuing Operations
$3.46
$0.16
$0.06
$3.68
Discontinued Operations ($3.44) - - ($3.44) THIRD-QUARTER 2013**** CONTINUING OPERATIONS Acquisition- Retirement- Related Related Operating GAAP Adjustments* Adjustments** (Non-GAAP) Gross Profit
$11,429
$102
$154
$11,686
Gross Profit Margin 49.0% 0.4Pts 0.7Pts 50.1% S,G&A 5,260 (111) (89) 5,060 R,D&E 1,356 - (14) 1,342 Other (Income) & Expense (63) (1) - (64) Total Expense & Other (Income) 6,458 (112) (103) 6,243 Pre-Tax Income from Continuing Operations 4,972 214 257 5,443 Pre-Tax Income Margin from Continuing Operations 21.3% 0.9Pts 1.1Pts 23.3% Provision for Income Taxes*** 832 48 77 958 Effective Tax Rate 16.7% 0.2Pts 0.6Pts 17.6% Income from Continuing Operations 4,139 166 181 4,485 Income Margin from Continuing Operations 17.7% 0.7Pts 0.8Pts 19.2% Loss from Discontinued Operations Net of Taxes (98) - - (98) Net Income 4,041 166 181 4,387 Diluted Earnings Per Share: Continuing Operations
$3.77
$0.15
$0.16
$4.08
Discontinued Operations ($0.09) - - ($0.09) * Includes amortization of acquired intangible assets and other acquisition-related charges. ** Includes retirement-related items driven by changes to plan assets and liabilities primarily related to market performance. *** Tax impact on operating (non-GAAP) pre-tax income from continuing operations is calculated under the same accounting principles applied to the GAAP pre-tax income which employs an annual effective tax rate method to the results. **** Reclassified to reflect discontinued operations presentation. INTERNATIONAL BUSINESS MACHINES CORPORATION U.S. GAAP TO OPERATING RESULTS RECONCILIATION (Unaudited; Dollars in millions except per share amounts)NINE-MONTHS 2014
CONTINUING OPERATIONS Acquisition- Retirement- Related Related Operating GAAP Adjustments* Adjustments** (Non-GAAP) Gross Profit
$33,545
$315
$141
$34,001
Gross Profit Margin 48.8% 0.5Pts 0.2Pts 49.5% S,G&A 17,146 (291) (162) 16,693 R,D&E 4,117 - 56 4,173 Other (Income) & Expense (433) 0 - (433) Total Expense & Other (Income) 20,654 (292) (106) 20,257 Pre-Tax Income from Continuing Operations 12,891 607 246 13,744 Pre-Tax Income Margin from Continuing Operations 18.8% 0.9Pts 0.4Pts 20.0% Provision for Income Taxes*** 2,655 123 49 2,827 Effective Tax Rate 20.6% 0.0Pts 0.0Pts 20.6% Income from Continuing Operations 10,237 483 197 10,917 Income Margin from Continuing Operations 14.9% 0.7Pts 0.3Pts 15.9% Loss from Discontinued Operations Net of Taxes (3,698) - - (3,698) Net Income 6,539 483 197 7,219 Diluted Earnings Per Share: Continuing Operations
$10.09
$0.48
$0.19
$10.76
Discontinued Operations ($3.65) - - ($3.65)NINE-MONTHS 2013****
CONTINUING OPERATIONS Acquisition- Retirement- Related Related Operating GAAP Adjustments* Adjustments** (Non-GAAP) Gross Profit
$34,347
$289
$474
$35,110
Gross Profit Margin 48.4% 0.4Pts 0.7Pts 49.5% S,G&A 17,463 (294) (286) 16,884 R,D&E 4,291 - (43) 4,248 Other (Income) & Expense (217) (8) - (225) Total Expense & Other (Income) 21,205 (302) (329) 20,574 Pre-Tax Income from Continuing Operations 13,142 590 803 14,536 Pre-Tax Income Margin from Continuing Operations 18.5% 0.8Pts 1.1Pts 20.5% Provision for Income Taxes*** 2,478 112 239 2,828 Effective Tax Rate 18.9% 0.0Pts 0.6Pts 19.5% Income from Continuing Operations 10,665 479 564 11,708 Income Margin from Continuing Operations 15.0% 0.7Pts 0.8Pts 16.5% Loss from Discontinued Operations Net of Taxes (366) - - (366) Net Income 10,299 479 564 11,342 Diluted Earnings Per Share: Continuing Operations
$9.60
$0.43
$0.51
$10.54
Discontinued Operations ($0.33) - - ($0.33) * Includes amortization of acquired intangible assets and other acquisition-related charges. ** Includes retirement-related items driven by changes to plan assets and liabilities primarily related to market performance. *** Tax impact on operating (non-GAAP) pre-tax income from continuing operations is calculated under the same accounting principles applied to the GAAP pre-tax income which employs an annual effective tax rate method to the results. **** Reclassified to reflect discontinued operations presentation.
IBMMike Fay, 914-525-8476mikefay@us.ibm.comorJohn Bukovinsky, 732-618-3531jbuko@us.ibm.com
1 Year International Business M... Chart |
1 Month International Business M... Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions