Subsequent Events:

9 Months Ended

Sep. 30, 2012

Subsequent Events:

Subsequent Events:

14. Subsequent Events: On October 12, 2012, the High Court in London issued a ruling against IBM United Kingdom Limited and IBM United Kingdom Holdings Limited, both wholly-owned subsidiaries of the company, in litigation involving one of IBM UK’s defined benefit plans. As a result of the ruling, the company recorded an additional pre-tax retirement-related obligation of $162 million in the third quarter of 2012 in selling, general and administrative expense in the Consolidated Statement of Earnings. See Note 12, “Contingencies,” on pages 36 and 37 for additional information.

On October 30, 2012, the company announced that the Board of Directors approved a quarterly dividend of $0.85 per common share. The dividend is payable December 10, 2012 to shareholders of record on November 9, 2012.

On October 30, 2012, the company announced that the Board of Directors authorized $5 billion in additional funds for use in the company’s common stock repurchase program.