EX-12 3 ibm14q3_ex12.htm EX-12  

                                                                                                                                                                                                           EXHIBIT 12

 

COMPUTATION OF RATIO OF INCOME FROM

CONTINUING OPERATIONS TO FIXED CHARGES

FOR NINE MONTHS ENDED SEPTEMBER 30,

(UNAUDITED)

 

(Dollars in millions)

 

2014

 

2013*

Income from continuing operations before income taxes (1)

 

$

12,897

 

$

13,148

 

 

 

 

 

 

 

Add: fixed charges, excluding capitalized interest

 

 

1,147

 

 

1,100

 

 

 

    

 

 

 

Income as adjusted before income taxes

 

$

14,044

 

$

14,248

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

     Interest expense

 

$

774

 

$

733

     Capitalized interest

 

 

3

 

 

19

     Portion of rental expense representative of interest

 

 

373

 

 

367

 

 

 

 

 

 

 

Total fixed charges

 

$

1,150

 

$

1,119

 

 

 

 

 

 

 

Ratio of income from continuing operations to fixed charges

 

 

12.21

 

 

12.73

 

 

 

 

 

 

 

* Reclassified to reflect discontinued operations presentation.

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 

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