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Seven days at IBM
ibm annual report 2002

Table of contents

  • Page 1
    ibm annual report 2002 Seven days at IBM

  • Page 2

  • Page 3
    day 1 Adopting the name International Business Machines Corporation, this mid-size U.S. company declares its loftier ambitions. february 14, 1924

  • Page 4
    day 2 IBM commits to equal pay for equal work 28 years before it becomes the law of the land. august 15, 1935

  • Page 5
    day 3 Despite the Great Depression, IBM repositions itself for a recovery, keeps making tabulating machines - and it pays off big, as the new Social Security Administration adopts the technology for "the biggest accounting operation of all time." september 28, 1936

  • Page 6
    day 4 We launch the system/360 and change the course of modern computing - and modern business. april 7, 1964

  • Page 7

  • Page 8
    day 5 Gerd Binnig and Heinrich Rohrer earn a Nobel Prize in Physics for the invention of the scanning tunneling microscope, allowing the first-ever view of individual atoms - and presaging a new golden age for IBM Research. december 8, 1986 in 1989, ibm's don eigler uses the scanning tunneling ...

  • Page 9
    day 6 With the formation of IBM Global Services, we define the outlines of a new model for the IT industry. december 12, 1996 dennie welsh (right), the first leader of ibm global services, finalizes one of the company's early outsourcing contracts.

  • Page 10
    Today

  • Page 11
    over the course of our 92-year history, we've experienced our share of important days -days when fundamental change was in the air. Those moments can be uncertain, often unsettling. But of course, they're also the times when the need for leadership is the greatest. When one company - one team of ...

  • Page 12
    samuel j. palmisano Chairman, President and Chief Executive Officer

  • Page 13
    ... the second year in a row. Although our revenue from continuing operations of $81.2 billion was off 2 percent from 2001 and our earnings decreased 35 percent, to $5.3 billion, all of our core businesses-from servers to storage systems, to middleware, to services - gained marketshare in 2002. This is...

  • Page 14
    ...956 0.55 Cash, cash equivalents and current marketable securities Total assets Working capital Total debt Stockholders' equity Common shares outstanding -basic (in millions) Market capitalization Stock price per common share Number of employees in IBM / wholly owned subsidiaries 5,975 96,484 7,102...

  • Page 15
    ... year. One of the most important investments we made in 2002 was to contribute just under $4 billion, in cash and IBM stock, to fully fund the accumulated benefit obligation of our U.S. pension plan - which was underfunded mainly due to low interest rates and continued weakness in capital markets...

  • Page 16
    chairman's letter it would not have taken the market by storm if we had only brought customers a new machine. We had to bring them a new idea about business, and we had to show them how to apply mainframe systems to transform back-office functions like accounting, payroll and inventory management....

  • Page 17
    comparison of five-year cumulative total return for ibm, s&p 500 stock index, and s&p computers index (excluding IBM) $500 400 300 200 100 ibm common stock s&p computers (hardware) index (excluding IBM) 0 1997 1998 1999 s&p 500 stock index 2000 2001 2002

  • Page 18
    ... on demand enterprises. It was this realization that drove us to acquire PwC Consulting. We now have nearly 60,000 professionals in industries ranging from financial services to health care, with business process expertise in areas like supply chain, customer relationship management, human capital...

  • Page 19
    .... But we also want to equip and help customers to build their own internal utilities- software to manage and balance workloads, and server and storage systems to provide additional capacity on demand. Clearly, the bet we're placing on e-business on demand is a big one. And part of what makes it big...

  • Page 20
    ... volunteered four million hours last year.) It's about building relationships based on respect, trust and integrity- IBM's bedrock values. And it's about using our remarkable scientific, managerial and analytic assets-some of the best minds on the planet-to help local, national and international...

  • Page 21
    19

  • Page 22
    ... Solutions IBM's client teams are specialized in the competitive pressures and dynamics of 18 industries, from automotive and government, to life sciences and wholesale distribution. colleen arnold Worldwide General Manager Communications Sector 20 mark greene General Manager Global Banking...

  • Page 23
    ... strategies and spending today is the need to integrate processes, people, ideas and work to create wholly new kinds of business designs and business value. Rather than talk about automation, efficiency or reengineering, they use a new set of terms to describe the kind of enterprise they want...

  • Page 24
    .... In 2002, IBM outperformed this sector globally. 90,000 business partners worldwide generate 50% of IBM's small and medium business sales IBM will invest million in 2003 to help business partners generate demand and sales marc lautenbach General Manager Global Small and Medium Business $500...

  • Page 25
    ... revenue equal to that of its three largest competitors combined. 20 percent increase in hosting revenue for 2002 500 new customers worldwide in 2002- 350 were first-time IBM customers albert han kiat lee Vice President, e-business Hosting Services, Asia Pacific daria schuster Pricing Manager...

  • Page 26
    ... what we at IBM call the On Demand Operating Environment. first, and most important, this new model is ultimately open and collaborative. It shares resources - by allowing the computing assets within any individual enterprise, or across the networked systems of the world, to work together on common...

  • Page 27
    jai menon IBM Fellow, Co-director jeff nick IBM Fellow, Vice President, Architecture and Design Storage Systems Institute e-business On Demand

  • Page 28
    ...Systems Infrastructure Technology like prior computing architectures, the model that supports on demand business is composed of individual systems, hardware, software... productivity and savings from what customers already own, without forcing them to do what they are doing today-spend about 40 ...

  • Page 29
    ...products such as Web application server software, databases and software for collaboration, content and systems management - that transcends the limitations of proprietary systems and organizational constructs. The Grid Gets Down to Business In simplest terms, "grids" are systems that get connected...

  • Page 30
    ... storage share to grow 5.8% between 2000 and 2002, while the market leader's share was predicted to decline high-end server technologies "learn" about Internet traffic patterns or the ebb and ï¬,ow of application use, and improve performance-in real time- across a diverse set of systems 28

  • Page 31
    ... for blade servers more than 15% of the IBM mainframe capacity shipped in 2002 was for Linux workloads IBM has engaged with thousands of customers worldwide, and has about 7,500 employees working in porting centers, research, services, development labs, and the sales and marketing of Linux...

  • Page 32
    ... of the lab to immerse themselves in the marketplace, working on grand challenges brought to them by our customers. Over the past 10 years, we've steadily invested about $5 billion annually in research, development and engineering. We consider it the price of entry for those who want to play in the...

  • Page 33
    ... of recorded history. More than 200 IBM researchers are on the case-making information discovery, synthesis and analysis (leading to genuine insight) more than a blue-sky ideal. Products are scheduled for release later this year. alfred spector Vice President Services and Software Research andrew...

  • Page 34
    ... drug discovery and development, and deliver information-based medicine. Lab Meets World On Demand Innovation Services, a new unit we formed in 2002, combines the talents of IBM Research with our Business Consulting Services experts to bring our researchers into a whole new type of "lab." They're...

  • Page 35
    'Cells' Multiply IBM and Sony Computer Entertainment, Inc., in partnership with Toshiba, are at work on a breakthrough microprocessor architecture that puts broadband communications right on the chip. Just as the cells in a body unite to form complete physical systems, this "Cell" architecture will ...

  • Page 36
    ... event to generate and share ideas on the manager's role in a networked enterprise ManagerJam: In July 2002, more than 8,000 managers came together in a global National Business and Disability Council names IBM's Web Adaptation Technology its 2002 "product of the year" "I've worked in plenty of...

  • Page 37
    ... corporate responsibility, we've always come at them with equal measures of personal involvement and management discipline. Now, as we enter this new day and confront its new challenges, we draw on the experience and learning of the last 92 years. And we feel, more than ever, the urgency of business...

  • Page 38
    ...demand supply chain achieved $5.6 billion in cost reductions in 2002, with a target of $5 billion more in 2003 Time between requisition and supplier order placement has gone from 2-3 weeks to 2 hours, allowing IBM to react faster to changes in market pricing Rated the technology industry's number...

  • Page 39
    ... technologies and mobility management practices allow more than 3/4 of all employees to work remotely "In addition to the savings and dramatic process improvements in how we interact with customers, suppliers, partners and employees, e-business on demand is really changing IBM at a deeper level...

  • Page 40
    ... and the U.K. Employees and retirees gave more than $30 million to more than 10,000 health and human services agencies through the Employee Charitable Contribution Campaign in 2002 "I trained to be an engineer, but I've always cared about the environment. When you imagine the sheer number of our...

  • Page 41
    ... 12 of the last 14 years, the national society of black engineers has voted IBM the company its members would most like to work for " I met Tom Watson, Jr., some years after he retired, and asked him why he wrote what many believe is the first equal opportunity policy letter in 1953. He said that...

  • Page 42
    ... manufacture of the industry's most advanced information technologies, including computer systems, software, storage systems and microelectronics. We translate these advanced technologies into value for our customers through our professional solutions, services and consulting businesses worldwide.

  • Page 43
    ... Liabilities Stockholders' Equity Activity Contingencies and Commitments Taxes Advertising and Promotional Expense Research, Development and Engineering 2002 Actions Earnings Per Share of Common Stock Rental Expense and Lease Commitments Stock-Based Compensation Plans Segment Information Subsequent...

  • Page 44
    ... position of International Business Machines Corporation and subsidiary companies at December 31, 2002 and 2001, and the results of their operations and their cash ï¬,ows for each of the three years in the period ended December 31, 2002, in conformity with accounting principles generally accepted in...

  • Page 45
    ... the business drivers. The Management Discussion contains a new separate section dedicated to the company's Global Financing business on pages 60 through 63. This section includes a Global Financing balance sheet. In order to help readers of the Annual Report place IBM's services accounting policies...

  • Page 46
    ... technical innovations. IBM is committed to fostering open standards because they benefit customers, because they are vital to the on demand computing model, and because their acceptance will expand growth opportunities across the entire IT industry. 44 international business machines corporation...

  • Page 47
    ... estimates that it is maintaining or gaining market share in most of its key business areas. Global Services and Software revenue grew year over year, but was more than offset by lower Hardware and Global Financing revenue. international business machines corporation and Subsidiary Companies 45

  • Page 48
    ... 51. description of business Global Services is an important part of the company's strategy of providing insight and solutions to customers. The application of technology is becoming increasingly critical to customers' advantage in the marketplace. As a result, the value that customers place on IBM...

  • Page 49
    ...not reported as external revenue, hardware is also deployed internally in support of IBM Global Services offerings and contracts. Personal Systems Group The Personal Systems Group includes the company's lines of personal computers, printers and point-of-sale terminals. The personal computer business...

  • Page 50
    ... pSeries UNIX servers decreased in 2002 versus 2001 although high-end pSeries server revenue increased in 2002 versus 2001. In November 2002 the company announced a new mid-range p650 server with Power 4 engines, which generated strong demand. Revenue from pSeries servers declined due to weak market...

  • Page 51
    ...of its iSeries midrange product line that allows customers to buy and pay for only the computing capacity they need. â- of maintenance. The customer can also purchase ongoing maintenance after the first year, which includes product upgrades and technical support. The remaining software is sold on...

  • Page 52
    ... led to efficiencies, cost savings in the production of code, and improved time to market with new offerings. The increase in gross profit dollars and gross profit margin in 2001 versus 2000 was primarily due to higher Software revenue, lower service costs and purchased vendor software, partially...

  • Page 53
    ...in high-growth opportunities such as e-business, initiatives to support Linux, middleware software products, autonomic computing and e-business on demand. Looking Forward In November 2002, the company announced On Demand Innovation Services, a new services arm located in its Research Division, which...

  • Page 54
    ...excluding amounts recorded in Cost of Global Financing, declined 37.9 percent in 2002 from 2001 and 31.4 percent in 2001 versus 2000. The declines were primarily due to lower average interest rates and a decline in average debt outstanding in the periods. 2002 2001 2000 Sales and other transfers...

  • Page 55
    ... through 3 of the IBM 2002 Form 10-K, filed with the Securities and Exchange Commission on March 10, 2003, provide additional information regarding IBM's business, focusing on high-level organization and certain key risk factors. international business machines corporation and Subsidiary Companies...

  • Page 56
    ... and associated removal costs for machinery and equipment and tooling, workforce reduction-related charges and excess leased space charges associated with the HDD business, all as a result of the final agreement completed with Hitachi. The 2002 and 2001 discontinued operations tax rates of...

  • Page 57
    ... Global Financing business. Overall During 2002, the company made significant acquisitions as well as ongoing investments in RD&E and in fixed assets. In addition, the company fully funded, on an ABO basis, the IBM Personal Pension Plan (PPP). In spite of this activity, the company ended the year...

  • Page 58
    ... of internal-use software costs. The company invested $4,753 million for Plant, rental machines and other property. This comprises continuing investments in the Microelectronics Division 300 millimeter chip-making facility in East Fishkill, New York. In addition, Global Services purchased equipment...

  • Page 59
    ... resulting accounting estimates will, by definition, not always precisely equal the related actual results, seven of these estimates involve more judgment than others. Two of these estimates are the allowance for uncollectible financing receivables and the fair value of lease residual values. See...

  • Page 60
    ... with interest rate and currency movements on outstanding debt and non-U.S. dollar denominated assets and liabilities, other examples of risk include collectibility of accounts receivable and recoverability of residual values on leased assets. 58 international business machines corporation and...

  • Page 61
    ...In 2002 versus 2001, the reported decrease in foreign currency exchange rate sensitivity was primarily due to a reduction in the amount of hedge of net investment related currency debt outstanding after taking into account the effect of "receive euro/pay U.S. dollar" and "receive yen/pay U.S. dollar...

  • Page 62
    ... for the IBM consolidated tax rate. Customer financing provides lease and loan financing to end users and internal customers for terms generally between two and five years. Internal financing is predominantly in support of Global Services' long-term customer service contracts. Global Financing...

  • Page 63
    ..., direct financing, and operating leases for equipment as well as loans for software and services with terms generally for two to five years. Commercial financing originations arise primarily from inventory and accounts receivable financing for dealers and remarketers of IBM and non-IBM products...

  • Page 64
    .... See note a, "Significant Accounting Policies" on page 74 for the company's accounting policy for residual values. Sales of equipment, which are primarily sourced from equipment returned at end of lease, represented 32.1 percent of Global Financing's revenue in 2002 and 27.7 percent in 2001...

  • Page 65
    ... debt and pay dividends in order to maintain an appropriate debt to equity ratio. Market Risk See pages 58 and 59 for discussion of the company's overall market risk. Looking Forward Given Global Financing's mission of supporting IBM's hardware, software and services, originations for both customer...

  • Page 66
    ... except per share amounts) for the year ended december 31: notes 2002 2001 2000 revenue: Global Services Hardware Software Global Financing Enterprise Investments /Other total revenue cost: Global Services Hardware Software Global Financing Enterprise Investments/Other total cost gross profit...

  • Page 67
    ... depreciation Plant, rental machines and other property - net Long-term financing receivables Prepaid pension assets Investments and sundry assets Goodwill total assets liabilities and stockholders' equity Current liabilities: Taxes Short-term debt Accounts payable Compensation and benefits...

  • Page 68
    ... stock issued under employee plans (17,275,350 shares) Purchases (8,799,382 shares) and sales (9,074,212 shares) of treasury stock under employee plans - net Other treasury shares purchased, not retired (58,867,226 shares) Fair value adjustment of employee benefits trust Increase due to shares...

  • Page 69
    ...(391) 1,032 (5,091) 673 (5,091) 1,712 3 (6) 502 546 (6) 502 $÷- $«14,248 $«30,142 (2,255) Stockholders' equity, December 31, 2001 * Reclassified to conform with 2002 presentation. $«(20,114) $«(828) $«23,448 international business machines corporation and Subsidiary Companies 67

  • Page 70
    ... on marketable securities (net of tax benefit of $8) Total gains and (losses) not affecting retained earnings Subtotal: Net income plus gains and (losses) not affecting retained earnings Cash dividends declared - common stock Common stock issued under employee plans (7,255,995 shares) Purchases...

  • Page 71
    .../divestitures: Receivables Inventories Pension assets Other assets Accounts payable Pension liabilities Other liabilities net cash provided by operating activities from continuing operations cash flow from investing activities from continuing operations: Payments for plant, rental machines and other...

  • Page 72
    ... than one year to ten years. Revenue from time and material services contracts is recognized as the services are provided. Revenue from Strategic Outsourcing Services contracts in which IBM manages the customer's data center reï¬,ects the extent of actual services delivered in the period, based upon...

  • Page 73
    ... program. Revenue from maintenance, unspecified upgrades and technical support is recognized over the period such items are delivered. See "Multiple-Element Arrangements" below for further information. financing Finance income attributable to sales-type leases, direct financing leases and loans...

  • Page 74
    ... to market during the performance period based upon the intrinsic value at the end of each quarter. The following table summarizes the pro forma operating results of the company had compensation cost for stock options granted and for employee stock purchases under the ESPP (see note v, "Stock-Based...

  • Page 75
    ... cost and termination cost are used to determine fair value. Dealer quotes are used for the remaining financial instruments. All methods of assessing fair value result in a general approximation of value, and such value may never actually be realized. international business machines corporation...

  • Page 76
    ...incurred to purchase or to create and implement internal-use computer software, which includes software coding, installation, testing and data conversion. Capitalized costs are amortized on a straight-line basis over two years. 74 international business machines corporation and Subsidiary Companies

  • Page 77
    ... when actual warranty claim experience differs from estimates. Earnings Per Share of Common Stock Earnings per share of common stock - basic is computed by dividing Net income applicable to common stockholders by the weighted-average number of common shares outstanding for the period. Earnings per...

  • Page 78
    ... equal to the present value of the estimated costs associated with the retirement of long-lived assets where a legal or contractual obligation exists. The asset is required to be depreciated over the life of the related equipment or facility, and the liability is required to be accreted each year...

  • Page 79
    ... over the service period. This change is effective for new exit or disposal activities initiated after December 31, 2002. Had SFAS No. 146 been effective for the company's second quarter and fourth quarter 2002 actions, a portion of the pre-tax employee termination costs listed in the table on pages...

  • Page 80
    ... $196 million of pre-tax, one-time compensation costs for certain PwCC partners and employees. This amount relates to restricted stock awards and the compensation element of the convertible notes issued as part of the purchase consideration and was recorded in the fourth quarter of 2002. The portion...

  • Page 81
    ... purchase price related to the 2000 acquisitions as of the respective dates of acquisition. (dollars in millions) amortization life (in years) informix other Current assets Fixed/non-current assets Intangible assets: Goodwill Customer lists Completed technology Trademarks Total assets acquired...

  • Page 82
    ..., and excess leased space charges related to its discontinued HDD business. The company recorded a charge of approximately $508 million, net of tax, in discontinued operations associated with these announced actions. fair value 2002 2001 Marketable securities - current: Time deposits and other...

  • Page 83
    ... investment in sales-type leases is for leases that relate principally to IBM equipment and are generally for terms ranging from two to five years. Net investment in sales-type leases includes unguaranteed residual values of $821 million and $791 million at December 31, 2002 and 2001, respectively...

  • Page 84
    ... year ended December 31, 2002, are as follows: (dollars in millions) segment balance jan. 1, 2002 assembled workforce reclass* goodwill additions purchase price adjustments divestitures balance dec. 31, 2002 Global Services Enterprise Systems Personal and Printing Systems Technology Software...

  • Page 85
    ... market interest rates and applicable foreign currency exchange rates. Unused lines: From the committed global credit facility From other committed and uncommitted lines Total unused lines of credit $«11,945 $«11,383 4,989 $«16,934 4,738 $«16,121 international business machines corporation...

  • Page 86
    ... global capital markets, principally to fund its financing lease and loan portfolio. Access to cost-effective financing can result in interest rate and/or currency mismatches with the underlying assets. To manage these mismatches and to reduce overall interest cost, the company 84 international...

  • Page 87
    ...broad equity market indices and in the company's own stock. Changes in the overall value of this employee compensation obligation are recorded in SG&A expense in the Consolidated risk management program Statement of Earnings. Although not designated as accounting hedges, the company utilizes equity...

  • Page 88
    ... thereof that were either ineffective as hedges, excluded from the assessment of hedge effectiveness, or associated with an underlying exposure that did not occur; nor are there any anticipated in the normal course of business. 86 international business machines corporation and Subsidiary Companies

  • Page 89
    ... quarter of 2002, in connection with the PwCC acquisition, IBM issued 3,677,213 shares of restricted stock valued at approximately $254 million and recorded an additional $30 million for stock to be issued in future periods as part of the purchase price consideration paid to the PwCC partners. See...

  • Page 90
    ... May 31, 2001, and all of the shares (20 million on a split-adjusted basis) were returned to the company as treasury shares. Dissolution of the trust did not affect the company's obligations related to any of its compensation and employee benefit plans or its ability to settle the obligations. In...

  • Page 91
    ... to the company's business partners to support their working capital needs. In addition, the company committed to provide future financing to its customers in connection with customer purchase agreements for approximately $288 million and $269 million at December 31, 2002 and 2001, respectively...

  • Page 92
    ... decline in corporate spending on technology services. 2002 35% (7) 1 - - 29% 2001 2000 Statutory rate Foreign tax differential State and local Valuation allowance related items Other Effective rate 35% (6) 1 - (1) 29% 35% (6) 1 (1) 2 31% 90 international business machines corporation and...

  • Page 93
    ... loss on sale in the second quarter of 2002, primarily relating to land, buildings, machinery and equipment. This loss was recorded in Other (income) and expense in the Consolidated Statement of Earnings. This transaction closed in (c) (f ) (d) international business machines corporation and...

  • Page 94
    ...quarter of 2002. The company entered into a limited supply agreement with EIT for future products, and it will also lease back, at fair market value rental rates, approximately one-third of the Endicott campus' square footage for operations outside the interconnect OEM business. (g) (h) As part of...

  • Page 95
    ... following table sets forth the computation of basic and diluted earnings per share of common stock. for the year ended december 31: 2002 2001 2000 Weighted-average number of shares on which earnings per share calculations are based: Basic Add - incremental shares under stock compensation plans...

  • Page 96
    ...common stock in one calendar year or 1,000 shares in an offering period. Approximately 4.6 million, 16.5 million and 26.3 million reserved unissued shares were available for purchase under the ESPP at December 31, 2002, 2001 and 2000, respectively. The 94 international business machines corporation...

  • Page 97
    ... a new ESPP in April 2003. If approved, shares may be issued under that plan and employee participation would be subject to the terms and conditions of that plan. w Retirement-Related Benefits IBM offers defined benefit pension plans, defined contribution Pro Forma Disclosure See "Stock-Based...

  • Page 98
    ... deposits funds under various fiduciarytype arrangements, purchases annuities under group contracts or provides reserves. Benefits under the defined benefit plans are typically based either on years of service and the employee's compensation, generally during a fixed number of years immediately...

  • Page 99
    ... (income )/ cost of pension plans (dollars in millions) for the year ended december 31: u.s. plans non-u.s. plans 2002 $«««««650 2001* $««««647 2000* $««««586 2002 $««««505 2001 $««««429 2000 $««««445 Service cost Interest cost Expected return on plan assets...

  • Page 100
    ...-term return on plan assets Rate of compensation increase 7.0% 10.0% 6.0% 7.25% 10.0% 6.0% 4.5-7.1% 5.0-10.0% 2.0-6.1% 4.5-7.1% 5.0-11.0% 2.6-6.1% * The company lowered its expected long-term return on plan assets assumption for 2003 to 8 percent. 98 international business machines corporation...

  • Page 101
    ... reduced the 2002 income from retirement-related plans by approximately $375 million as compared to 2001. funded status for defined benefit pension plans It is the company's practice to fund amounts for pensions sufficient to meet the minimum requirements set forth in applicable employee benefits...

  • Page 102
    ... SFAS No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions." The discount rate changes did not have a material effect on net postretirement benefit cost for the years ended December 31, 2002, 2001 and 2000. 100 international business machines corporation and Subsidiary...

  • Page 103
    ... arm's-length leases at prices equivalent to market rates with the Global Financing segment to facilitate the acquisition of equipment used in services engagements. Generally, all internal transaction prices are reviewed and reset annually if appropriate. The company uses shared-resources concepts...

  • Page 104
    ... marketable securities. The explanation of the difference between Cost of Global Financing and Interest expense for segment presentation versus presentation in the Consolidated Statement of Earnings is included on page 63 of the Management Discussion. 102 international business machines corporation...

  • Page 105
    ... ibm as reported (dollars in millions) 2002 2001* 2000* Assets: Total reportable segments Elimination of internal transactions Unallocated amounts: Cash and marketable securities Notes and accounts receivable Deferred tax assets Plant, other property and equipment Pension assets Other Total IBM...

  • Page 106
    ... company filed with the Securities and Exchange Commission a shelf registration to periodically sell up to $20 billion in debt securities, preferred and capital stock, depositary shares and warrants. The company may sell securities in one or more separate offerings with the size, price and terms to...

  • Page 107
    ... operations Total Basic: Continuing operations Discontinued operations Total Cash dividends paid on common stock Per share of common stock Investment in plant, rental machines and other property Return on stockholders' equity at end of year: 5,334 (1,755) 3,579 8,146 (423) 7,723 7,874 219 8,093...

  • Page 108
    ... of shares outstanding during that quarter while EPS for the full year + Does not total due to rounding. + + The stock prices reflect the high and low prices for IBM's common stock on the New York Stock Exchange composite tape for the last two years. 106 international business machines corporation...

  • Page 109
    ... Relations New Orchard Road Armonk, New York 10504 Corporate Offices International Business Machines Corporation New Orchard Road Armonk, New York 10504 (914) 499-1900 The IBM Annual Report is printed on recycled paper and is recyclable. DB2, e-business on demand, eServer, IBM, iSeries, Selectric...

  • Page 110
    ... President and General Counsel Mark Loughridge Senior Vice President and General Manager Global Financing Linda S. Sanford Senior Vice President Enterprise On Demand Transformation and Information Technology Stephen M. Ward, Jr. Senior Vice President and General Manager Personal Systems Group Robert...

  • Page 111
    design: vsa partners, inc., chicago printing: anderson lithograph www.ibm.com/annualreport/2002

  • Page 112