IBM 1998 Annual Report Download - page 68

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66
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY International Business Machines Corporation and Subsidiary Companies
Accumulated
Gains and
Losses Not
Employee Affecting
Preferred Common Retained Treasury Benefits Retained
(Dollars in millions) Stock Stock Earnings Stock Trust Earnings Total
1996*
Stockholders’ equity, January 1, 1996 $«253 $«7,488 $«11,630 $÷«(41) $÷÷— $«3,093 $«22,423
Net income plus gains and losses not
affecting retained earnings:
Net income 5,429 $«««5,429
Gains and losses not affecting
retained earnings (net of tax):
Foreign currency translation adjustments
(net of tax expense of $19) (635) (635)
Net unrealized gains on marketable
securities (net of tax expense of $71) 111 111
Total gains and losses not affecting
retained earnings (524)
Subtotal: Net income plus gains and
losses not affecting retained earnings $«««4,905
Cash dividends declared — common stock (686) (686)
Cash dividends declared — preferred stock (20) (20)
Common stock purchased and retired
(97,951,400 shares) (710) (5,046) (5,756)
Common stock issued under employee
plans (19,694,458 shares) 811 (13) 798
Purchases (8,914,332 shares) and sales
(7,584,432 shares) of treasury stock
under employee plans—net (105) (94) (199)
Tax effect— stock transactions 163 163
Stockholders’ equity, December 31, 1996 «253 «7,752 «11,189 «(135) ««««— «2,569 «21,628
1997*
Net income plus gains and losses not
affecting retained earnings:
Net income 6,093 $«««6,093
Gains and losses not affecting
retained earnings (net of tax):
Foreign currency translation adjustments
(net of tax expense of $24) (1,610) (1,610)
Net unrealized losses on marketable
securities (net of tax benefit of $37) (60) (60)
Total gains and losses not affecting
retained earnings (1,670)
Subtotal: Net income plus gains and
losses not affecting retained earnings $«««4,423
Cash dividends declared — common stock (763) (763)
Cash dividends declared — preferred stock (20) (20)
Common stock purchased and retired
(68,777,336 shares) (565) (5,455) (6,020)
Preferred stock purchased and
retired (13,450 shares) (1) (1)
Common stock issued under employee
plans (19,651,603 shares) 985 (2) 983
Purchases (3,850,643 shares) and sales
(5,105,754 shares) of treasury stock
under employee plans—net (32) 49 17
Employee benefits trust (10,000,000 shares) (860) (860)
Tax effect— stock transactions 429 429
Stockholders’ equity, December 31, 1997 «$«252 $«8,601 «$«11,010 ««$«««(86) «$«(860) ««$««««899 «$«19,816