IBM 1997 Annual Report Download - page 59

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notes to consolidated financial statements
International Business Machines Corporation
and Subsidiary Companies
57
E Plant, Rental Machines and Other Property
(Dollars in millions)
At December 31:1997 1996
Land and land improvements $1,117 $1,208
Buildings 11,208 12,073
Plant, laboratory and
office equipment 25,015 24,824
_________________ _________________
37,340 38,105
Less: Accumulated
depreciation 21,680 22,935
_________________ _________________
15,660 15,170
Rental machines 4,793 3,788
Less: Accumulated
depreciation 2,106 1,551
_________________ _________________
2,687 2,237
_________________ _________________
Total $18,347 $17,407
F Investments and Sundry Assets
(Dollars in millions)
At December 31:1997 1996
Net investment in
sales-type leases*$13,733 $13,345
Less: Current portion – net 5,720 5,721
_________________ _________________
8,013 7,624
Deferred taxes 3,163 3,246
Prepaid pension cost 3,828 3,324
Customer loan
receivables – not yet due 2,741 2,622
Installment payment
receivables 977 830
Alliance investments:
Cost method 236 320
Equity method 484 564
Goodwill, less accumulated
amortization (1997, $1,717;
1996, $1,300) 950 1,067
Marketable securities –
non-current 295 381
Other investments and
sundry assets 1,228 1,617
_________________ _________________
Total $21,915 $21,595
*These leases relate principally to IBM equipment and are generally for
terms ranging from three to five years. Net investment in sales-type leases
includes unguaranteed residual values of approximately $563 million and
$471 million at December 31, 1997 and 1996, respectively, and is reflected
net of unearned income at these dates of approximately $1,600 million
and $2,000 million, respectively. Scheduled maturities of minimum
lease payments outstanding at December 31, 1997, expressed as a
percentage of the total, are approximately as follows: 1998, 45 percent;
1999, 32 percent; 2000, 16 percent; 2001, 5 percent; and 2002 and beyond,
2 percent.