EX-99.1 2 ex-99d1.htm EX-99.1 ibm_Ex99_1

Exhibit 99.1

 

IBM REPORTS 2019 FOURTH-QUARTER AND FULL-YEAR RESULTS

Revenue Growth Driven by Accelerated Cloud Performance; Strong Gross Margin Expansion

Highlights

Fourth Quarter:

·

GAAP EPS from continuing operations of  $4.11

·

Operating (non-GAAP) EPS of $4.71

·

Revenue of $21.8 billion, up 0.1 percent

-- up 1 percent adjusting for currency

-- up 3 percent adjusting for divested businesses and currency

·

Red Hat revenue, up 24 percent, normalized for historical comparability

·

Revenue growth in Cloud & Cognitive Software and Systems segments

-- Cloud & Cognitive Software up 9 percent

-- Systems up 16 percent

·

Total cloud revenue of $6.8 billion, up 21 percent (up 23 percent adjusting for divested businesses and currency)

·

GAAP gross profit margin up 190 basis points;  Operating (non-GAAP) gross profit margin up 230 basis points

·

Debt reduced by $10 billion since closing the Red Hat acquisition

 

Full Year:

·

GAAP EPS from continuing operations of $10.57;  Operating (non-GAAP) EPS of $12.81

·

Revenue of $77.1 billion, down 3.1 percent (up 0.2 percent adjusting for divested businesses and currency)

·

Total cloud revenue of $21.2 billion, up 11 percent (up 14 percent adjusting for divested businesses and currency)

·

Net cash from operating activities of $14.8 billion and free cash flow of $11.9 billion

 

2020 Expectations:

·

GAAP EPS of at least $10.57; Operating (non-GAAP) EPS of at least $13.35

·

Free cash flow of approximately $12.5 billion

 

ARMONK, N.Y., January 21, 2020 . . . IBM (NYSE: IBM) today announced fourth-quarter and full-year 2019 earnings results.

We ended 2019 on a strong note, returning to overall revenue growth in the quarter, led by accelerated cloud performance," said Ginni Rometty, IBM chairman, president and chief executive officer. "Looking ahead, this positions us for sustained revenue growth in 2020 as we continue to help our clients shift their mission-critical workloads to the hybrid cloud and scale their efforts to become a cognitive enterprise.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FOURTH QUARTER 2019

 

 

 

Results Reflect the Impact of Items Related to

 

 

 

the Red Hat Acquisition Closed in July 2019

 

 

    

 

 

    

 

 

    

 

 

    

Pre-tax

    

Gross

 

 

 

Diluted

 

Net

 

Pre-tax

 

Income

 

Profit

 

 

 

EPS

 

Income

 

Income

 

Margin

 

Margin

 

GAAP from Continuing Operations

 

$

4.11

 

$

3.7B

 

$

4.0B

 

18.3

%  

51.0

%

Year/Year *

 

 

91

%  

 

88

%  

 

(10)

%  

(2.0)

Pts

1.9

Pts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating (Non-GAAP)

 

$

4.71

 

$

4.2B

 

$

4.7B

 

21.6

%  

51.8

%

Year/Year

 

 

(3)

%  

 

(5)

%  

 

(7)

%  

(1.5)

Pts

2.3

Pts

*  GAAP Diluted EPS and Net Income include charges related to the U.S. Tax Cuts and Jobs Act of 2017 of $1.9 billion in 2018.

 

“In 2019,  we continued to invest in the higher-value growth areas of the industry and took bold actions — including several divestitures and a major acquisition — to position our business, which are reflected in our strong gross margin performance," said James Kavanaugh, IBM senior vice president and chief financial officer. "After completing the acquisition of Red Hat, and with strong free cash flow and disciplined financial management, we significantly deleveraged in the second half.

Cash Flow and Balance Sheet

In the fourth quarter, the company generated net cash from operating activities of $3.5 billion, or $6.7 billion excluding Global Financing receivables.  IBM’s free cash flow was $6.0 billion.  IBM returned $1.4 billion to shareholders in dividends.  

For the full year, the company generated net cash from operating activities of $14.8 billion,  or $14.3 billion excluding Global Financing receivables, and full-year free cash flow of $11.9 billion. IBM returned $7.1 billion to shareholders through $5.7 billion in dividends and $1.4 billion of gross share repurchases.

IBM ended the fourth quarter with $9.0 billion of cash on hand which includes marketable securities. Debt, including Global Financing debt of $24.7 billion, totaled $62.9 billion – down $3.4 billion since the end of the third quarter, down $10.1 billion since the end of the second quarter.

Segment Results for Fourth Quarter

·

Cloud & Cognitive Software (includes Cloud & Data Platforms which includes Red Hat; Cognitive Applications; and Transaction Processing Platforms) — revenues of $7.2 billion, up 8.7 percent (up 9.4 percent adjusting for currency), led by cloud, Security, and IoT; Cloud & Data Platforms, up 19 percent (up 20 percent adjusting for currency); Cognitive Applications,  up 1 percent;  Transaction Processing Platforms, up 3 percent (up 4 percent adjusting for currency).

·

Global Business Services (includes Consulting, Application Management and Global Process Services) — revenues of $4.2 billion,  down 0.6 percent  (down 0.3 percent adjusting for currency), with growth in Consulting, up 4 percent.

·

Global Technology Services (includes Infrastructure & Cloud Services and Technology Support Services) — revenues of $6.9 billion, down 4.8 percent  (down 4.0 percent adjusting for currency).  

·

Systems (includes Systems Hardware and Operating Systems Software) — revenues of $3.0 billion, up 16.0 percent  (up 16.5 percent adjusting for currency),  led by IBM Z, up 62 percent (up 63 percent adjusting for currency); Storage Systems revenue grew 3 percent.

·

Global Financing (includes financing and used equipment sales) — revenues of $301  million, down 25.3 percent  (down 24.9 percent adjusting for currency); revenue reflects the wind-down of OEM commercial financing.

 

Full-Year 2019 Results

Full-year results reflect the impact of items related to the Red Hat acquisition closed in July 2019. Consolidated diluted earnings per share was  $10.56 compared to $9.52 for 2018,  up 11 percent year to year. Consolidated net income was $9.4 billion, up 8 percent year to year. Revenues for the full year totaled $77.1 billion, a decrease of 3.1 percent year to year (up 0.2 percent adjusting for divested businesses and currency) compared with $79.6 billion for the full-year 2018.

Operating (non-GAAP) diluted earnings per share from continuing operations was $12.81 compared with $13.81 per diluted share for the 2018 period, a decrease of 7 percent. Operating (non-GAAP) net income for the full year was $11.4 billion compared with $12.7 billion in the prior-year period, a decrease of 10 percent.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FULL YEAR 2019

 

 

 

Results Reflect the Impact of Items Related to

 

 

 

the Red Hat Acquisition Closed in July 2019

 

 

    

 

 

    

 

 

    

 

 

    

Pre-tax

    

Gross

 

 

 

Diluted

 

Net

 

Pre-tax

 

Income

 

Profit

 

 

 

EPS

 

Income

 

Income

 

Margin

 

Margin

 

GAAP from Continuing Operations

 

$

10.57

 

$

9.4B

 

$

10.2B

 

13.2

%  

47.3

%

Year/Year *

 

 

11

%  

 

 8

%  

 

(10)

%  

(1.1)

Pts

0.9

Pts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating (Non-GAAP)

 

$

12.81

 

$

11.4B

 

$

12.5B

 

16.2

%  

48.0

%

Year/Year

 

 

(7)

%  

 

(10)

%  

 

(9)

%  

(1.1)

Pts

1.1

Pts

*  GAAP Diluted EPS and Net Income include charges related to the U.S. Tax Cuts and Jobs Act of 2017 of $2.0 billion in 2018 versus $0.1 billion in 2019.

 

Full-Year 2020 Expectations

The company expects GAAP diluted earnings per share of at least $10.57, and operating (non-GAAP) diluted earnings per share of at least $13.35. Operating (non-GAAP) diluted earnings per share excludes  $2.78 per share of charges for: amortization of purchased intangible assets and other acquisition-related charges, including pre-closing charges, such as financing costs; retirement-related charges; and tax reform enactment impacts. IBM expects free cash flow of approximately $12.5 billion.

 

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, but not limited to, 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; damage to the company’s reputation; 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 employees and its reliance on critical skills; impacts of relationships with critical suppliers; product quality issues; impacts of 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 and ecosystems; the company’s ability to successfully manage acquisitions, alliances and dispositions, including integration challenges, failure to achieve objectives, the assumption of liabilities, and higher debt levels; legal proceedings and investigatory risks; 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.  Except as required by law, 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 —

·

adjusting for currency (i.e., at constant currency);

·

total revenue and cloud revenue adjusting for divested businesses and currency;

·

revenue for Red Hat normalized for historical comparability;

·

presenting operating (non-GAAP) earnings per share amounts and related income statement items;

·

adjusting for free cash flow;

·

net cash from operating activities, excluding Global Financing receivables.

 

Free cash flow guidance is derived using an estimate of profit, working capital and operational cash outflows.  The company views Global Financing receivables as a profit-generating investment, which it seeks to maximize and therefore it is not considered when formulating guidance for free cash flow.  As a result, the company does not estimate a GAAP Net Cash from Operations expectation metric.

The rationale for management’s use of these non-GAAP measures is included in Exhibit 99.2 in 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 5:00 p.m. EST, today.  The Webcast may be accessed via a link at http://www.ibm.com/investor/events/earnings/4q19.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).

 

 

Contact:

IBM

 

Edward Barbini, 914‑499‑6565

 

barbini@us.ibm.com

 

 

 

John Bukovinsky, 732‑618‑3531

 

jbuko@us.ibm.com

 

 

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

COMPARATIVE FINANCIAL RESULTS

(Unaudited; Dollars in millions except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Year Ended

 

 

 

 

December 31, 

 

 

 

December 31, 

 

 

 

    

2019

    

2018

 

 

 

2019

    

2018

 

 

REVENUE

 

 

  

 

 

  

 

 

 

 

  

 

 

  

 

 

Cloud & Cognitive Software

 

$

7,238

 

$

6,661

 

*

 

$

23,200

 

$

22,209

 

*

Global Business Services

 

 

4,243

 

 

4,269

 

*

 

 

16,634

 

 

16,595

 

*

Global Technology Services

 

 

6,949

 

 

7,299

 

*

 

 

27,361

 

 

29,146

 

*

Systems

 

 

3,042

 

 

2,621

 

 

 

 

7,604

 

 

8,034

 

 

Global Financing

 

 

301

 

 

402

 

 

 

 

1,400

 

 

1,590

 

 

Other

 

 

 4

 

 

507

 

*

 

 

948

 

 

2,018

 

*

TOTAL REVENUE

 

 

21,777

 

 

21,760

 

 

 

 

77,147

 

 

79,591

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

 

11,100

 

 

10,687

 

 

 

 

36,488

 

 

36,936

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT MARGIN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud & Cognitive Software

 

 

79.2

%

 

79.4

%

*

 

 

76.7

%  

 

77.6

%

*

Global Business Services

 

 

27.5

%

 

27.8

%

*

 

 

27.7

%  

 

26.8

%

*

Global Technology Services

 

 

35.2

%

 

34.9

%

*

 

 

34.8

%  

 

34.4

%

*

Systems

 

 

56.0

%

 

50.8

%

 

 

 

53.1

%  

 

49.8

%

 

Global Financing

 

 

35.6

%

 

29.1

%

 

 

 

35.6

%  

 

29.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL GROSS PROFIT MARGIN

 

 

51.0

%  

 

49.1

%

 

 

 

47.3

%  

 

46.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXPENSE AND OTHER INCOME

 

 

 

 

 

  

 

 

 

 

  

 

 

  

 

 

S,G&A

 

 

5,433

 

 

4,701

 

 

 

 

20,604

 

 

19,366

 

 

R,D&E

 

 

1,596

 

 

1,358

 

 

 

 

5,989

 

 

5,379

 

 

Intellectual property and custom development income

 

 

(159)

 

 

(184)

 

 

 

 

(648)

 

 

(1,026)

 

 

Other (income) and expense

 

 

(117)

 

 

185

 

 

 

 

(968)

 

 

1,152

 

 

Interest expense

 

 

354

 

 

193

 

 

 

 

1,344

 

 

723

 

 

TOTAL EXPENSE AND OTHER INCOME

 

 

7,107

 

 

6,253

 

 

 

 

26,322

 

 

25,594

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS

 

 

 

 

 

  

 

 

 

 

  

 

 

  

 

 

BEFORE INCOME TAXES

 

 

3,993

 

 

4,434

 

 

 

 

10,166

 

 

11,342

 

 

Pre-tax margin

 

 

18.3

%  

 

20.4

%

 

 

 

13.2

%  

 

14.3

%

 

Provision for / (Benefit from) income taxes

 

 

324

 

 

2,481

 

 

 

 

731

 

 

2,619

 

 

Effective tax rate

 

 

8.1

%  

 

55.9

%

 

 

 

7.2

%  

 

23.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS

 

$

3,669

 

$

1,954

 

 

 

$

9,435

 

$

8,723

 

 

DISCONTINUED OPERATIONS

 

 

 

 

 

  

 

 

 

 

  

 

 

  

 

 

Income / (Loss) from discontinued operations, net of taxes

 

 

 0

 

 

(2)

 

 

 

 

(4)

 

 

 5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

$

3,670

 

$

1,951

 

 

 

$

9,431

 

$

8,728

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS / (LOSS) PER SHARE OF COMMON STOCK

 

 

 

 

 

  

 

 

 

 

  

 

 

  

 

 

Assuming Dilution

 

 

 

 

 

  

 

 

 

 

  

 

 

  

 

 

Continuing Operations

 

$

4.11

 

$

2.15

 

 

 

$

10.57

 

$

9.51

 

 

Discontinued Operations

 

$

0.00

 

$

0.00

 

 

 

$

(0.01)

 

$

0.01

 

 

TOTAL

 

$

4.11

 

$

2.15

 

 

 

$

10.56

 

$

9.52

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing Operations

 

$

4.14

 

$

2.17

 

 

 

$

10.63

 

$

9.56

 

 

Discontinued Operations

 

$

0.00

 

$

0.00

 

 

 

$

0.00

 

$

0.01

 

 

TOTAL

 

$

4.14

 

$

2.17

 

 

 

$

10.63

 

$

9.57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (M’s)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assuming Dilution

 

 

893.7

 

 

905.2

 

 

 

 

892.8

 

 

916.3

 

 

Basic

 

 

887.1

 

 

901.3

 

 

 

 

887.2

 

 

912.0

 

 


*Recast to conform with 2019 presentation.

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

 

 

 

 

 

 

 

 

    

At

    

At

 

 

December 31, 

 

December 31, 

(Dollars in Millions)

 

2019

 

2018

ASSETS:

 

 

  

 

 

  

 

 

 

 

 

 

 

Current Assets:

 

 

  

 

 

  

Cash and cash equivalents

 

$

8,172

 

$

11,379

Restricted cash

 

 

141

 

 

225

Marketable securities

 

 

696

 

 

618

Notes and accounts receivable - trade, net

 

 

7,870

 

 

7,432

Short-term financing receivables, net

 

 

14,192

 

 

22,388

Other accounts receivable, net

 

 

1,733

 

 

743

Inventories

 

 

1,619

 

 

1,682

Deferred costs

 

 

1,896

 

 

2,300

Prepaid expenses and other current assets

 

 

2,101

 

 

2,378

Total Current Assets

 

 

38,420

 

 

49,146

 

 

 

 

 

 

 

Property, plant and equipment, net

 

 

10,010

 

 

10,792

Operating right-of-use assets, net*

 

 

4,996

 

 

 —

Long-term financing receivables, net

 

 

8,712

 

 

9,148

Prepaid pension assets

 

 

6,865

 

 

4,666

Deferred costs

 

 

2,472

 

 

2,676

Deferred taxes

 

 

5,182

 

 

5,216

Goodwill and intangibles, net

 

 

73,456

 

 

39,353

Investments and sundry assets

 

 

2,074

 

 

2,386

Total Assets

 

$

152,186

 

$

123,382

 

 

 

 

 

 

 

LIABILITIES:

 

 

  

 

 

  

 

 

 

 

 

 

 

Current Liabilities:

 

 

  

 

 

  

Taxes

 

$

2,839

 

$

3,046

Short-term debt

 

 

8,797

 

 

10,207

Accounts payable

 

 

4,896

 

 

6,558

Deferred income

 

 

12,026

 

 

11,165

Operating lease liabilities*

 

 

1,380

 

 

 —

Other liabilities

 

 

7,763

 

 

7,251

Total Current Liabilities

 

 

37,701

 

 

38,227

 

 

 

 

 

 

 

Long-term debt

 

 

54,102

 

 

35,605

Retirement related obligations

 

 

17,142

 

 

17,002

Deferred income

 

 

3,851

 

 

3,445

Operating lease liabilities*

 

 

3,879

 

 

 —

Other liabilities

 

 

14,526

 

 

12,174

Total Liabilities

 

 

131,202

 

 

106,452

 

 

 

 

 

 

 

EQUITY:

 

 

  

 

 

  

 

 

 

 

 

 

 

IBM Stockholders’ Equity:

 

 

  

 

 

  

Common stock

 

 

55,895

 

 

55,151

Retained earnings

 

 

162,954

 

 

159,206

Treasury stock — at cost

 

 

(169,413)

 

 

(168,071)

Accumulated other comprehensive income/(loss)

 

 

(28,597)

 

 

(29,490)

Total IBM Stockholders’ Equity

 

 

20,841

 

 

16,796

 

 

 

 

 

 

 

Noncontrolling interests

 

 

144

 

 

134

Total Equity

 

 

20,985

 

 

16,929

 

 

 

 

 

 

 

Total Liabilities and Equity

 

$

152,186

 

$

123,382


* Reflects the adoption of the FASB guidance on leases.

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

CASH FLOW ANALYSIS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31, 

 

December 31, 

(Dollars in Millions)

 

2019

    

2018

    

2019

    

2018

Net Cash Provided by Operating Activities per GAAP:

 

$

3,451

 

$

4,119

 

$

14,770

 

 

15,247

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: change in Global Financing (GF) Receivables

 

 

(3,220)

 

 

(3,219)

 

 

491

 

 

(345)

Capital Expenditures, Net

 

 

(645)

 

 

(877)

 

 

(2,370)

 

 

(3,716)

 

 

 

 

 

 

 

 

 

 

 

 

 

Free Cash Flow

 

 

6,027

 

 

6,460

 

 

11,909

 

 

11,876

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisitions

 

 

 —

 

 

(16)

 

 

(32,630)

 

 

(139)

Divestitures

 

 

149

 

 

 —

 

 

1,076

 

 

 —

Dividends

 

 

(1,438)

 

 

(1,416)

 

 

(5,707)

 

 

(5,666)

Share Repurchase

 

 

 —

 

 

(2,050)

 

 

(1,361)

 

 

(4,443)

Non-GF Debt

 

 

(5,640)

 

 

(2,128)

 

 

22,792

 

 

(521)

Other (includes GF Net Receivables and GF Debt)

 

 

(1,046)

 

 

(3,291)

 

 

709

 

 

(1,727)

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in Cash, Cash Equivalents, Restricted Cash and Short-term Marketable Securities

 

$

(1,948)

 

 

(2,440)

 

$

(3,213)

 

 

(620)

 

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

CASH FLOW

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31, 

 

December 31, 

(Dollars in Millions)

 

2019

    

2018

    

2019

    

2018

Net Income from Operations

 

$

3,670

 

$

1,951

 

$

9,431

 

$

8,728

Depreciation/Amortization of Intangibles

 

 

1,650

 

 

1,111

 

 

6,059

 

 

4,479

Stock-based Compensation

 

 

210

 

 

139

 

 

679

 

 

510

Working Capital / Other

 

 

1,142

 

 

4,135

 

 

(1,890)

 

 

1,874

Global Financing A/R

 

 

(3,220)

 

 

(3,219)

 

 

491

 

 

(345)

Net Cash Provided by Operating Activities

 

$

3,451

 

$

4,119

 

$

14,770

 

$

15,247

Capital Expenditures, net of payments & proceeds

 

 

(645)

 

 

(877)

 

 

(2,370)

 

 

(3,716)

Divestitures, net of cash transferred

 

 

149

 

 

 —

 

 

1,076

 

 

 —

Acquisitions, net of cash acquired

 

 

 —

 

 

(16)

 

 

(32,630)

 

 

(139)

Marketable Securities / Other Investments, net

 

 

624

 

 

1,348

 

 

6,988

 

 

(1,058)

Net Cash Provided by / (Used in) Investing Activities

 

$

127

 

$

455

 

$

(26,936)

 

$

(4,913)

Debt, net of payments & proceeds

 

 

(4,181)

 

 

(1,145)

 

 

16,284

 

 

(300)

Dividends

 

 

(1,438)

 

 

(1,416)

 

 

(5,707)

 

 

(5,666)

Common Stock Repurchases

 

 

 —

 

 

(2,050)

 

 

(1,361)

 

 

(4,443)

Common Stock Transactions - Other

 

 

(55)

 

 

5

 

 

(173)

 

 

(60)

Net Cash Provided by / (Used in) Financing Activities

 

$

(5,674)

 

$

(4,605)

 

$

9,042

 

$

(10,469)

Effect of Exchange Rate changes on Cash

 

 

185

 

 

(95)

 

 

(167)

 

 

(495)

Net Change in Cash, Cash Equivalents and Restricted Cash

 

$

(1,911)

 

$

(127)

 

$

(3,290)

 

$

(630)

 

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

SEGMENT DATA

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2019

 

 

    

Cloud &

    

Global

    

Global

    

 

 

    

 

 

 

 

 

Cognitive

 

Business

 

Technology

 

 

 

 

Global

 

(Dollars in Millions)

 

Software

 

Services

 

Services

 

Systems

 

Financing

 

Revenue

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

External

 

$

7,238

 

$

4,243

 

$

6,949

 

$

3,042

 

$

301

 

Internal

 

 

692

 

 

65

 

 

278

 

 

198

 

 

348

 

Total Segment Revenue

 

$

7,930

 

$

4,308

 

$

7,227

 

$

3,240

 

$

649

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax Income / (Loss) from Continuing Operations

 

 

2,901

 

 

478

 

 

645

 

 

802

 

 

252

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax margin

 

 

36.6

%  

 

11.1

%  

 

8.9

%  

 

24.8

%  

 

38.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change YTY Revenue - External

 

 

8.7

%  

 

(0.6)

%  

 

(4.8)

%  

 

16.0

%  

 

(25.3)

%

Change YTY Revenue - External @constant currency

 

 

9.4

%  

 

(0.3)

%  

 

(4.0)

%  

 

16.5

%  

 

(24.9)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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