EX-12 4 a2122202zex-12.htm EXHIBIT 12
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EXHIBIT 12


COMPUTATION OF RATIO OF INCOME
FROM CONTINUING OPERATIONS TO FIXED CHARGES
(UNAUDITED)

 
   For Nine Months Ended
 
   September 30, 2003
   September 30, 2002
 
   (Dollars in millions)
Income from continuing operations before income taxes (1)   $ 6,989   $ 4,821
Add: Fixed charges, excluding capitalized interest     843     939
   
 

Income as adjusted before income taxes
 
$
7,832
 
$
5,760
   
 
Fixed charges:            
  Interest expense   $ 501   $ 594
  Capitalized interest     11     32
  Portion of rental expense representative of interest     342     345
   
 

Total fixed charges
 
$
854
 
$
971
   
 
Ratio of income from continuing operations to fixed charges     9.17     5.93
(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.


SEGMENT INFORMATION—ON CONTINUING OPERATIONS BASIS
(UNAUDITED)

 
    
   Hardware Segments
    
    
    
    
  
 
   Global
Services
   Systems
Group
   Personal
Systems
Group
   Technology
Group
   Software
   Global
Financing
   Enterprise
Investments
   Total
Segments
  
(Dollars in millions)

    
    
    
    
    
    
    
    
  
Three Months Ended September 30, 2003:                                                  

External revenue
 
$
10,383
 
$
3,199
 
$
2,796
 
$
695
 
$
3,461
 
$
713
 
$
257
 
$
21,504
 
Internal revenue     691     209     43     187     370     266     2     1,768  
   
 
 
 
 
 
 
 
 
Total revenue   $ 11,074   $ 3,408   $ 2,839   $ 882   $ 3,831   $ 979   $ 259   $ 23,272  
   
 
 
 
 
 
 
 
 
Pre-tax income (loss)   $ 1,210   $ 387   $ (50 ) $ (96 ) $ 858   $ 292   $ (54 ) $ 2,547  
   
 
 
 
 
 
 
 
 

Revenue year-to-year change
 
 
15.3
%
 
5.6
%
 
2.5
%
 
(29.6
)%
 
12.3
%
 
(4.7
)%
 
7.5
%
 
8.1
%
Pre-tax income year-to-year change     (3.9 )%   1.6 %   (150.0 )%   (464.7 )%   7.4 %   33.9 %   22.9 %   (0.1 )%
Pre-tax income margin     10.9 %   11.4 %   (1.8 )%   (10.9 )%   22.4 %   29.8 %   (20.8 )%   10.9 %

Three Months Ended September 30, 2002:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

External revenue
 
$
8,895
 
$
3,028
 
$
2,736
 
$
1,039
 
$
3,110
 
$
789
 
$
240
 
$
19,837
 
Internal revenue     708     200     33     214     302     238     1     1,696  
   
 
 
 
 
 
 
 
 
Total revenue   $ 9,603   $ 3,228   $ 2,769   $ 1,253   $ 3,412   $ 1,027   $ 241   $ 21,533  
   
 
 
 
 
 
 
 
 
Pre-tax income (loss)   $ 1,259   $ 381   $ (20 ) $ (17 ) $ 799   $ 218   $ (70 ) $ 2,550  
   
 
 
 
 
 
 
 
 
Pre-tax income margin     13.1 %   11.8 %   (0.7 )%   (1.4 )%   23.4 %   21.2 %   (29.0 )%   11.8 %

Reconciliations to IBM as Reported:

 
   Three Months Ended
September 30, 2003
   Three Months Ended
September 30, 2002
  
(Dollars in millions)

    
    
  
Revenue:              
Total reportable segments   $ 23,272   $ 21,533  
Eliminations/other     (1,750 )   (1,712 )
   
 
 
  Total IBM Consolidated   $ 21,522   $ 19,821  
   
 
 

Pretax income:
 
 
 
 
 
 
 
Total reportable segments   $ 2,547   $ 2,550  
Eliminations /other     2     (146 )
   
 
 
  Total IBM Consolidated   $ 2,549   $ 2,404  
   
 
 


SEGMENT INFORMATION—ON CONTINUING OPERATIONS BASIS
(UNAUDITED)

 
    
   Hardware Segments
    
    
    
    
  
(Dollars in millions)
   Global
Services
   Systems
Group
   Personal
Systems
Group
   Technology
Group
   Software
   Global
Financing
   Enterprise
Investments
   Total
Segments
  
Nine Months Ended September 30, 2003:                                                  
External revenue   $ 31,187   $ 9,066   $ 7,909   $ 2,096   $ 10,061   $ 2,095   $ 725   $ 63,139  
Internal revenue     2,085     571     123     598     1,147     868     4     5,396  
   
 
 
 
 
 
 
 
 
Total revenue   $ 33,272   $ 9,637   $ 8,032   $ 2,694   $ 11,208   $ 2,963   $ 729   $ 68,535  
   
 
 
 
 
 
 
 
 
Pre-tax income (loss)   $ 3,361   $ 978   $ (127 ) $ (218 ) $ 2,347   $ 861   $ (208 ) $ 6,994  
   
 
 
 
 
 
 
 
 
Revenue year-to-year change     19.4 %   7.4 %   (1.2 )%   (25.6 )%   10.8 %   (1.0 )%   4.6 %   9.8 %
Pre-tax income year-to-year change     10.6 %   32.2 %   nm     80.2 %   3.3 %   27.2 %   (2.0 )%   28.7 %
Pre-tax income margin     10.1 %   10.1 %   (1.6 )%   (8.1 )%   20.9 %   29.1 %   (28.5 )%   10.2 %
Nine Months Ended September 30, 2002:                                                  
External revenue   $ 25,785   $ 8,446   $ 8,047   $ 2,972   $ 9,2733   $ 2,375   $ 694   $ 57,592  
Internal revenue     2,089     526     79     649     844     617     3     4,807  
   
 
 
 
 
 
 
 
 
Total revenue   $ 27,874   $ 8,972   $ 8,126   $ 3,621   $ 10,117   $ 2,992   $ 697   $ 62,399  
   
 
 
 
 
 
 
 
 
Pre-tax income (loss)   $ 3,038   $ 740   $ 10   $ (1,099 ) $ 2,272   $ 677   $ (204 ) $ 5,434  
   
 
 
 
 
 
 
 
 
Pre-tax income margin     10.9 %   8.2 %   0.1 %   (30.4 )%   22.5 %   22.6 %   (29.3 )%   8.7 %

Reconciliations to IBM as Reported:

(Dollars in millions)
   Nine Months Ended
September 30, 2003
   Nine Months Ended
September 30, 2002
  
Revenue:              
Total reportable segments   $ 68,535   $ 62,399  
Eliminations/other     (5,317 )   (4,897 )
   
 
 
  Total IBM Consolidated   $ 63,218   $ 57,502  
   
 
 
Pretax income:              
Total reportable segments   $ 6,994   $ 5,434  
Eliminations/other     2     (622 )
   
 
 
  Total IBM Consolidated   $ 6,996   $ 4,812  
   
 
 


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COMPUTATION OF RATIO OF INCOME FROM CONTINUING OPERATIONS TO FIXED CHARGES (UNAUDITED)
SEGMENT INFORMATION—ON CONTINUING OPERATIONS BASIS (UNAUDITED)
SEGMENT INFORMATION—ON CONTINUING OPERATIONS BASIS (UNAUDITED)