4-Attachment 7 Supplement 2.pdf
PDF 118 KB Posted
- Attached to
- Master Agreement AZ|CTR062780
- Contract number
- CTR062780
- Issued by
- Arizona
About this file
This document is a set of consolidated financial statements for International Business Machines Corporation (IBM) for the fiscal years 2019, 2020, and 2021. The statements include a Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Consolidated Statement of Cash Flows, and Consolidated Statement of Equity. The financial reports cover IBM's global business operations and subsidiary companies, providing a comprehensive overview of the company's financial performance and position.
The financial statements detail IBM's revenue streams, including Services ($29,225 million in 2021), Sales ($27,346 million in 2021), and Financing ($780 million in 2021). Total revenue for 2021 was $57,350 million, with a gross profit of $31,486 million. Net income for the year was $5,743 million, showing a slight increase from $5,590 million in 2020. The statements also highlight significant changes, such as the separation of Kyndryl (a business unit) in 2021, which impacted the company's equity and financial structure. Key financial metrics include earnings per share of $6.35 (assuming dilution) in 2021, cash flows from operating activities of $12,796 million, and total assets of $132,001 million as of December 31, 2021.
View the file
Other files
Show all 46
On GovTribe
Work with this file
- Download the original file
- Contacts named in this file
- Similar government files
- Ask GovTribe AI about this file
Text version
62 Consolidated Income Statement International Business Machines Corporation and Subsidiary Companies
($ in millions except per share amounts) For the year ended December 31: Notes 2021 2020 * 2019 * Revenue
Services $29,225 $27,626 $29,141 Sales 27,346 26,569 ** 27,357 ** Financing 780 984 ** 1,216 **
Total revenue D 57,350 55,179 57,714 Cost
Services 19,147 17,689 19,009 Sales 6,184 6,048 ** 6,467 ** Financing 534 577 ** 704 **
Total cost 25,865 24,314 26,181 Gross profit 31,486 30,865 31,533 Expense and other (income)
Selling, general and administrative 18,745 20,561 18,724 Research, development and engineering G 6,488 6,262 5,910 Intellectual property and custom development income (612) (620) (639) Other (income) and expense 873 802 (1,012) Interest expense Q&U 1,155 1,288 1,344
Total expense and other (income) 26,649 28,293 24,327 Income from continuing operations before income taxes 4,837 2,572 7,206 Provision for/(benefit from) income taxes H 124 (1,360) 60 Income from continuing operations 4,712 3,932 7,146 Income/(loss) from discontinued operations, net of tax C 1,030 1,658 2,285 Net income $ 5,743 $ 5,590 $ 9,431 Earnings/(loss) per share of common stock
Assuming dilution Continuing operations I $ 5.21 $ 4.38 $ 8.00 Discontinued operations I 1.14 1.85 2.56
Total I $ 6.35 $ 6.23 $ 10.56 Basic
Continuing operations I $ 5.26 $ 4.42 $ 8.05 Discontinued operations I 1.15 1.86 2.58
Total I $ 6.41 $ 6.28 $ 10.63 Weighted-average number of common shares outstanding
Assuming dilution 904,641,001 896,563,971 892,813,376 Basic 895,990,771 890,348,679 887,235,105
* Reclassified to reflect discontinued operations presentation.
** Reclassified to conform to 2021 presentation.
Amounts may not add due to rounding.
The accompanying notes are an integral part of the financial statements.
Consolidated Statement of Comprehensive Income
($ in millions) For the year ended December 31: Notes 2021 2020 * 2019 *
Net income $ 5,743 $ 5,590 $ 9,431 Other comprehensive income/(loss), before tax
Foreign currency translation adjustments T 987 (1,500) (39) Net changes related to available-for-sale securities T
Unrealized gains/(losses) arising during the period 0 (1) 1 Reclassification of (gains)/losses to net income — — —
Total net changes related to available-for-sale securities 0 (1) 1 Unrealized gains/(losses) on cash flow hedges T
Unrealized gains/(losses) arising during the period 344 (349) (689) Reclassification of (gains)/losses to net income 243 (21) 75
Total unrealized gains/(losses) on cash flow hedges 587 (370) (614) Retirement-related benefit plans T
Prior service costs/(credits) (51) (37) (73) Net (losses)/gains arising during the period 2,433 (1,678) (120) Curtailments and settlements 94 52 41 Amortization of prior service (credits)/costs 9 13 (9) Amortization of net (gains)/losses 2,484 2,314 1,843
Total retirement-related benefit plans 4,969 664 1,681 Other comprehensive income/(loss), before tax T 6,542 (1,206) 1,029 Income tax (expense)/benefit related to items of other comprehensive income T (1,703) 466 (136) Other comprehensive income/(loss) T 4,839 (740) 893 Total comprehensive income $ 10,582 $ 4,850 $ 10,324
* Amounts presented have not been recast to exclude discontinued operations.
64 Consolidated Balance Sheet
At December 31: Notes 2021 2020 * Assets Current assets
Cash and cash equivalents $ 6,650 $ 13,188 Restricted cash 307 463 Marketable securities J 600 600 Notes and accounts receivable—trade (net of allowances of $218 in 2021 and $260 in 2020) 6,754 5,790 Short-term financing receivables L
Held for investment (net of allowances of $176 in 2021 and $218 in 2020) 7,221 10,509 ** Held for sale 793 383 **
Other accounts receivable (net of allowances of $24 in 2021 and $25 in 2020) 1,002 695 Inventory K 1,649 1,812 Deferred costs D 1,097 1,018 Prepaid expenses and other current assets 3,466 2,089 Current assets of discontinued operations C — 2,618
Total current assets 29,539 39,165 Property, plant and equipment M 20,085 20,100
Less: Accumulated depreciation M 14,390 13,895 Property, plant and equipment—net M 5,694 6,205 Operating right-of-use assets—net N 3,222 3,566 Long-term financing receivables (net of allowances of $25 in 2021 and $45 in 2020) L 5,425 7,086 Prepaid pension assets W 9,850 7,557 Deferred costs D 924 1,150 Deferred taxes H 7,370 8,404 Goodwill O 55,643 53,765 Intangible assets—net O 12,511 13,739 Investments and sundry assets P 1,823 2,187 Non-current assets of discontinued operations C — 13,147 Total assets $ 132,001 $ 155,971 Liabilities and equity Current liabilities
Taxes H $ 2,289 $ 3,198 Short-term debt J&Q 6,787 7,116 Accounts payable 3,955 4,033 Compensation and benefits 3,204 3,056 Deferred income 12,518 11,980 Operating lease liabilities N 974 1,035 Other accrued expenses and liabilities 3,892 5,632 Current liabilities of discontinued operations C — 3,820
Total current liabilities 33,619 39,869 Long-term debt J&Q 44,917 54,217 Retirement and nonpension postretirement benefit obligations W 14,435 17,184 Deferred income 3,577 3,758 Operating lease liabilities N 2,462 2,720 Other liabilities R 13,996 14,180 Non-current liabilities of discontinued operations C — 3,317 Total liabilities 113,005 135,244 Commitments and Contingencies S Equity T IBM stockholders' equity
Common stock, par value $.20 per share, and additional paid-in capital 57,319 56,556 Shares authorized: 4,687,500,000 Shares issued (2021—2,248,577,848; 2020—2,242,969,004)
Retained earnings 154,209 162,717 Treasury stock, at cost (shares: 2021—1,350,509,249; 2020—1,350,315,580) (169,392) (169,339) Accumulated other comprehensive income/(loss) (23,234) (29,337) Total IBM stockholders' equity 18,901 20,597
Noncontrolling interests A 95 129 Total equity 18,996 20,727 Total liabilities and equity $ 132,001 $ 155,971
* Reclassified to reflect discontinued operations presentation.
** Recast to conform to 2021 presentation.
Consolidated Statement of Cash Flows
($ in millions) For the year ended December 31: 2021 2020 2019 Cash flows from operating activities Net income $ 5,743 $ 5,590 $ 9,431 Adjustments to reconcile net income to cash provided by operating activities
Depreciation 3,888 4,227 4,209 Amortization of intangibles 2,529 2,468 1,850 Stock-based compensation 982 937 679 Deferred taxes (2,001) (3,203) (1,527) Net (gain)/loss on asset sales and other (307) (70) (1,096)
Change in operating assets and liabilities, net of acquisitions/divestitures Receivables (including financing receivables) 1,372 5,297 502 Retirement related 1,038 936 301 Inventory 138 (209) 67 Other assets/other liabilities (671) 2,087 858 Accounts payable 85 138 (503)
Net cash provided by operating activities 12,796 18,197 14,770 Cash flows from investing activities Payments for property, plant and equipment (2,062) (2,618) (2,286) Proceeds from disposition of property, plant and equipment 387 188 537 Investment in software (706) (612) (621) Purchases of marketable securities and other investments (3,561) (6,246) (3,693) Proceeds from disposition of marketable securities and other investments 3,147 5,618 3,961 Non-operating finance receivables—net 0 475 6,720 Acquisition of businesses, net of cash acquired (3,293) (336) (32,630) Divestiture of businesses, net of cash transferred 114 503 1,076 Net cash provided by/(used in) investing activities (5,975) (3,028) (26,936) Cash flows from financing activities Proceeds from new debt 522 10,504 31,825 Payments to settle debt (8,597) (13,365) (12,944) Short-term borrowings/(repayments) less than 90 days—net (40) (853) (2,597) Common stock repurchases — — (1,361) Common stock repurchases for tax withholdings (319) (302) (272) Financing—other 70 92 99 Distribution from Kyndryl* 879 — — Cash dividends paid (5,869) (5,797) (5,707) Net cash provided by/(used in) financing activities (13,354) (9,721) 9,042 Effect of exchange rate changes on cash, cash equivalents and restricted cash (185) (87) (167) Net change in cash, cash equivalents and restricted cash (6,718) 5,361 (3,290) Cash, cash equivalents and restricted cash at January 1 13,675 8,314 11,604 Cash, cash equivalents and restricted cash at December 31 $ 6,957 $ 13,675 $ 8,314 Supplemental data Income taxes paid—net of refunds received $ 2,103 $ 2,253 $ 2,091 Interest paid on debt $ 1,512 $ 1,830 $ 1,685
* Represents $879 million net cash proceeds from Kyndryl dividend payments to IBM, funded from the proceeds of $2.9 billion of debt issued and retained by Kyndryl.
Cash flows above are presented on an IBM consolidated basis and therefore, also include $24 million of cash and cash equivalents presented in current assets of discontinued operations in the IBM Consolidated Balance Sheet as of December 31, 2020. Refer to note C, “Separation of Kyndryl,” for additional information related to cash flows from Kyndryl discontinued operations.
66 Consolidated Statement of Equity
Common Stock and Accumulated Additional Other Total IBM Non- Paid-in Retained Treasury Comprehensive Stockholders’ Controlling Total Capital Earnings Stock Income/(Loss) Equity Interests Equity Equity, January 1, 2019 $55,151 $ 159,206 $ (168,071) $(29,490) $16,796 $ 134 $16,929 Net income plus other comprehensive income/(loss) Net income 9,431 9,431 9,431 Other comprehensive income/(loss) 893 893 893
Total comprehensive income/(loss) $10,324 $10,324 Cash dividends paid—common stock
($6.43 per share) (5,707) (5,707) (5,707) Common stock issued under employee plans (4,569,917 shares) 745 745 745 Purchases (2,000,704 shares) and sales
(2,041,347 shares) of treasury stock under employee plans—net
30 (11) 19 19
Other treasury shares purchased, not retired (9,979,516 shares) (1,331) (1,331) (1,331)
Changes in other equity (5) (5) (5) Changes in noncontrolling interests 10 10 Equity, December 31, 2019 $55,895 $ 162,954 $ (169,413) $(28,597) $20,841 $ 144 $20,985
Stock and Accumulated Additional Other Total IBM Non- Paid-in Retained Treasury Comprehensive Stockholders’ Controlling Total Capital Earnings Stock Income/(Loss) Equity Interests Equity Equity, January 1, 2020 $55,895 $162,954 $(169,413) $(28,597) $20,841 $ 144 $20,985 Cumulative effect of change in accounting principle* (66) (66) (66) Net income plus other comprehensive income/(loss) Net income 5,590 5,590 5,590 Other comprehensive income/(loss) (740) (740) (740)
Total comprehensive income/(loss) $ 4,850 $ 4,850 Cash dividends paid—common stock
($6.51 per share) (5,797) (5,797) (5,797) Common stock issued under employee plans (4,972,028 shares) 661 661 661 Purchases (2,363,966 shares) and sales
(2,934,907 shares) of treasury stock
36 74 110 110
Changes in noncontrolling interests (15) (15) Equity, December 31, 2020 $56,556 $162,717 $(169,339) $(29,337) $20,597 $ 129 $20,727
* Reflects the adoption of the FASB guidance on current expected credit losses. Refer to note B, “Accounting Changes.”
Consolidated Statement of Equity
Stock and Accumulated Additional Other Total IBM Non- Paid-in Retained Treasury Comprehensive Stockholders’ Controlling Total Capital Earnings Stock Income/(Loss) Equity Interests Equity Equity, January 1, 2021 $56,556 $162,717 $(169,339) $(29,337) $20,597 $ 129 $ 20,727 Net income plus other comprehensive income/(loss) Net income 5,743 5,743 5,743 Other comprehensive income/(loss) 4,839 4,839 4,839
Total comprehensive income/(loss) $10,582 $ 10,582 Cash dividends paid—common stock
($6.55 per share) (5,869) (5,869) (5,869) Common stock issued under employee plans (5,608,845 shares) 762 762 762 Purchases (2,286,912 shares) and sales
(2,093,243 shares) of treasury stock
22 (53) (31) (31)
Separation of Kyndryl* (8,404) 1,264 (7,140) (62) (7,203) Changes in noncontrolling interests 28 28 Equity, December 31, 2021 $57,319 $154,209 $(169,392) $(23,234) $18,901 $ 95 $ 18,996
* Refer to note C, “Separation of Kyndryl,” for additional information.
File details come from the government source that posted it. Updated .