IBM 1999 Annual Report Download - page 66

Download and view the complete annual report

Please find page 66 of the 1999 IBM annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

consolidated statement of earnings
International Business Machines Corporation
and Subsidiary Companies
(Dollars in millions except per share amounts)
For the year ended December 31: Notes 1999 1998 1997
Revenue:
Hardware $«37,041 $«35,419 $«36,630
Global Services 32,172 28,916 25,166
Software 12,662 11,863 11,164
Global Financing 3,137 2,877 2,806
Enterprise Investments/ Other 2,536 2,592 2,742
Total revenue 87,548 81,667 78,508
Cost:
Hardware 27,071 24,214 23,473
Global Services 23,304 21,125 18,464
Software 2,240 2,260 2,785
Global Financing 1,446 1,494 1,448
Enterprise Investments/ Other 1,558 1,702 1,729
Total cost 55,619 50,795 47,899
Gross profit 31,929 30,872 30,609
Operating expenses:
Selling, general and administrative Q14,729 16,662 16,634
Research, development and engineering S5,273 5,046 4,877
Total operating expenses 20,002 21,708 21,511
Operating income 11,927 9,164 9,098
Other income, principally interest 557 589 657
Interest expense K727 713 728
Income before income taxes 11,757 9,040 9,027
Provision for income taxes P4,045 2,712 2,934
Net income 7,712 6,328 6,093
Preferred stock dividends 20 20 20
Net income applicable to common stockholders $«««7,692 $«««6,308 $÷«6,073
Earnings per share of common stock:
Assuming dilution T$«««««4.12 $««÷«3.29* $«÷««3.00*
Basic T$«««««4.25 $«÷««3.38* $«÷««3.09*
Average number of common shares outstanding:
Assuming dilution: 1999–1,871,073,912; 1998 –1,920,130,470*; 1997– 2,021,869,884*
Basic: 1999– 1,808,538,346; 1998 – 1,869,005,570*; 1997– 1,966,572,722*
*Adjusted to reflect a two-for-one stock split effective May 10, 1999.
The accompanying notes on pages 69 through 93 are an integral part of the financial statements.
64