EX-12 4 ibm14q1_ex12.htm  

                                                                                                                                                                                                          EXHIBIT 12

 

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

FOR THREE MONTHS ENDED MARCH 31,

(UNAUDITED)

 

 

(Dollars in millions)

 

2014

 

2013

Income before income taxes (1)

 

$

2,983

 

$

3,611

 

 

 

 

 

 

 

Add: fixed charges, excluding capitalized interest

 

 

384

 

 

366

 

 

 

    

 

 

 

Income as adjusted before income taxes

 

$

3,367

 

$

3,977

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

     Interest expense

 

$

260

 

$

244

     Capitalized interest

 

 

21

 

 

15

     Portion of rental expense representative of interest

 

 

124

 

 

122

 

 

 

 

 

 

 

Total fixed charges

 

$

405

 

$

381

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

 

8.31

 

 

10.44

 

 

 

 

 

 

 

(1) Income 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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