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IBM ANNUAL REPORT
2004
international business machines2004

Table of contents

  • Page 1
    IBM A NNUA L REPO R T 20 0 4 2004 international business machines

  • Page 2

  • Page 3
    ... through share repurchase and $1.2 billion through dividends. We ended the year in a strong cash position, with $10.6 billion, including marketable securities. In 2004, our return on invested capital increased to 29 percent , excluding our Global Financing business and a one-time pension settlement...

  • Page 4
    ... overall. WebSphere grew 14 percent, Rational 15 percent and Tivoli 15 percent. • We continue as number one in the world in servers, with zSeries, pSeries and xSeries each increasing its share position in 2004. IBM is the market leader in the super-hot category of blade servers, with revenue...

  • Page 5
    .... They want new options and alternatives, not only in how they manage IT, but in how they conceptualize and manage their companies. This is what we mean by On Demand Business. CEOs might not use that exact term (yet), but a more responsive, virtually integrated company is increasingly what they are...

  • Page 6
    ... 32,768 Power processors are at the heart of our Blue Gene supercomputer, which last year set a new record - more than 70 trillion calculations per second. Yet variations of Power chips are also the foundation for our pSeries and iSeries, and are used in our blade servers, our storage systems and an...

  • Page 7
    .... And speaking of software, through steady internal development and select acquisitions over the past several years, IBM has become the leader in enterprise-class middleware, which helps companies integrate and manage their operations. An important differentiator for our software business is that it...

  • Page 8
    ... operations Investment in plant, rental machines and other property Cash dividends paid on common stock Per share of common stock $««96,293 $««89,131 8,448 18 8,430 7,613 30 7,583 Cash, cash equivalents and marketable securities Total assets Working capital Total debt Stockholders' equity...

  • Page 9
    ..., practical and focused on execution. The top-rated ideas range from back-office integration supporting the development and marketing of integrated solutions; to helping first-line managers by giving them more authority over budgets and freeing up their time to devote to their people; to clearing...

  • Page 10
    ... Stock-Based Compensation Plans ...Retirement-Related Benefits ...Segment Information ... 55 ...57 Road Map ...11 61 61 Management Discussion Snapshot ...Description of Business ...Year in Review ...Prior Year in Review ...Looking Forward ...Employees and Related Workforce ...Global Financing...

  • Page 11
    ... to stockholder ratification. The Audit Committee meets periodically and privately with the independent registered public accounting firm, with the company's internal auditors, as well as with IBM management, to review accounting, auditing, internal control structure and financial reporting matters...

  • Page 12
    ibm annual report 2004 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM International Business Machines Corporation and Subsidiary Companies To the Stockholders and Board of Directors of International Business Machines Corporation: We have completed an integrated audit of International ...

  • Page 13
    ... it operates. The model is designed to allow for flexibility and periodic rebalancing. In 2004, 14 acquisitions were completed, all in software and services, at an aggregate cost of over $2 billion, and in the fourth quarter the company announced the agreement to sell its Personal Computing Division...

  • Page 14
    ... settlement of certain legal claims against the company's IBM Personal Pension Plan (PPP), and unfavorable currency translation. Overall, retirement-related plan costs increased $1,082 million versus 2003, impacting both gross margin and expense. See note w, "Retirement-Related Benefits" on pages 78...

  • Page 15
    MANAGEMENT DISCUSSION International Business Machines Corporation and Subsidiary Companies ibm annual report 2004 With regard to Assets, approximately $3.6 billion of the increase relates to the impact of currency translation. The remaining increase primarily consists of an increase in Cash and ...

  • Page 16
    ... with increased productivity and cost-effectiveness. (Personal Systems Group) Printing Systems. Production print solutions, on demand print-related solutions, enterprise workgroup print technologies, and print management software and services. (Personal Systems Group) Rational software. Integrated...

  • Page 17
    ... upgrades and technical support. Global Financing is described on pages 35 to 39. Enterprise Investments develops and provides industry-specific IT solutions supporting the Hardware, Software and Global Services segments of the company. Primary product lines include product life cycle management...

  • Page 18
    ... of IBM clients, deploy the right expertise quickly, and create a better short-term and long-term balance of labor supply and demand by comparing the demands of the market against the database of available skills. In addition to its own manufacturing operations, the company uses a number of contract...

  • Page 19
    ... Rational software development tools, which can be used to develop and upgrade any other company's software products. Emerging Business Opportunities IBM continues to drive greater productivity and cost savings as it transforms itself into an on demand enterprise. This includes the internal supply...

  • Page 20
    ... Blades. pSeries server revenue increased as the company's POWER5 technology was well received by customers in 2004. Demand for the company's Engineering & Technology services continued to be strong. Storage Systems revenue increased due to greater demand for external midrange disk and tape products...

  • Page 21
    ... by increased expense for retirement-related plan costs of approximately $515 million, which included a one-time charge of $320 million related to the partial settlement of certain legal claims against the company's PPP (see pages 20 and 21 for further information on retirement-related benefits...

  • Page 22
    ...information regarding Global Financing debt and interest expense. Retirement-Related Benefits (Dollars in millions) FOR THE YEAR ENDED DECEMBER 31: 2004 2003 Yr. to Yr. Change Research, development and engineering: Total $«5,673 $«5,077 11.7% The following table provides the total pre-tax...

  • Page 23
    MANAGEMENT DISCUSSION International Business Machines Corporation and Subsidiary Companies ibm annual report 2004 Overall, retirement-related plan costs increased $1,082 million versus 2003. On December 31, 2003, the company lowered its PPP discount rate from 6.75 percent to 6.0 percent which ...

  • Page 24
    ... BladeCenter. pSeries server revenue increased reflecting clients very strong acceptance of the POWER5 systems. The new pSeries high-end system started shipping in November 2004, marking the completion of a top to bottom refresh of the pSeries server product line in just three months. iSeries server...

  • Page 25
    ... to favorable currency movements, as well as productivity improvements in the company's support and distribution models. Global Financing Software Revenue: Middleware WebSphere family Data Management Lotus Tivoli Rational Other middleware Operating systems Other * Reclassified to conform with 2004...

  • Page 26
    ibm annual report 2004 MANAGEMENT DISCUSSION International Business Machines Corporation and Subsidiary Companies a combination of several factors: a decline of $1,782 million in Short-term financing receivables as collections exceeded new originations; an increase in Other accounts receivable of ...

  • Page 27
    MANAGEMENT DISCUSSION International Business Machines Corporation and Subsidiary Companies ibm annual report 2004 Debt consolidated fourth quarter results (Dollars and shares in millions except per share amounts) FOR FOURTH QUARTER: The company's funding requirements are continually monitored ...

  • Page 28
    ...). The WebSphere family of software products grew 18 percent for the quarter. Application servers grew 33 percent following the October announcement of a new release that provided improved security and integration of Web Services. Business Integration products grew 17 percent. Rational revenue grew...

  • Page 29
    MANAGEMENT DISCUSSION International Business Machines Corporation and Subsidiary Companies ibm annual report 2004 continuing operations The increase in the company's 2003 Income from continuing operations and diluted earnings per share from continuing operations as compared to 2002 was due to: •...

  • Page 30
    ... annual report 2004 MANAGEMENT DISCUSSION International Business Machines Corporation and Subsidiary Companies Software Software revenue increased 9.4 percent (1.9 percent at constant currency) in 2003 versus 2002, driven by Middleware software products. The WebSphere family of software offerings...

  • Page 31
    ... long-term contracts), periodic revalidations, and currency assumptions used to approximate constant currency. Contract portfolios purchased in an acquisition are treated as positive backlog adjustments provided those contracts meet the company's requirements for initial signings. A new signing...

  • Page 32
    ibm annual report 2004 MANAGEMENT DISCUSSION International Business Machines Corporation and Subsidiary Companies Given the declining interest rate environment, the company reduced its discount rate assumption for the PPP by 25 basis points to 5.75 percent on December 31, 2004. The company will ...

  • Page 33
    ... DISCUSSION International Business Machines Corporation and Subsidiary Companies ibm annual report 2004 The company's Board of Directors meets quarterly to approve the dividend payment. The company announced a dividend payment of $0.18 per common share, payable March 10, 2005, which is the company...

  • Page 34
    ... Contracts The company enters into numerous service contracts through its SO and BCS businesses. SO contracts range for periods up to ten years and BCS contracts can be for several years. The expected long-term return on plan assets is used in calculating the net periodic pension (income)/cost...

  • Page 35
    ...expected. Warranty Claims The company generally offers three-year warranties for its personal computer products and one-year warranties on most of its other products. The company estimates the amount and cost of future warranty claims for its current period sales. These estimates are used to record...

  • Page 36
    ... the Global Financing - Description of Business on page 35 for a discussion of the financing risks associated with the company's Global Financing business and management's goals to mitigate such risks while striving for superior return on Global Financing's equity. Employees and Related Workforce...

  • Page 37
    ...Return on equity calculation. Global Financing comprises three lines of business: • 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...

  • Page 38
    ... also include non-IBM equipment, software and services to meet IBM clients' total solutions requirements. Customer financing assets are primarily salestype, direct financing, and operating leases for equipment as well as loans for hardware, software and services with terms generally for two to five...

  • Page 39
    ... into product plans and cycles for the IBM products under lease. Based upon this product information, Global Financing continually monitors projections of future equipment values and compares them with the residual values reflected in the portfolio. See note a, "Significant Accounting Policies" on...

  • Page 40
    ibm annual report 2004 MANAGEMENT DISCUSSION International Business Machines Corporation and Subsidiary Companies Sales of equipment, which are primarily sourced from equipment returned at end of lease, represented 36.6 percent of Global Financing's revenue in 2004 and 40.5 percent in 2003. The ...

  • Page 41
    MANAGEMENT DISCUSSION International Business Machines Corporation and Subsidiary Companies ibm annual report 2004 return on equity (Dollars in millions) AT DECEMBER 31: 2004 2003 Numerator: Global Financing after tax income (A)* Denominator: Average Global Financing equity (B)** Global ...

  • Page 42
    ibm annual report 2004 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 2004 2003 2002 Revenue: Global Services Hardware Software Global Financing ...

  • Page 43
    ... International Business Machines Corporation and Subsidiary Companies ibm annual report 2004 (continued) (Dollars in millions except per share amounts) FOR THE YEAR ENDED DECEMBER 31: Notes 2004 2003 2002 Earnings/(Loss) per Share of Common Stock: Assuming Dilution: Continuing operations...

  • Page 44
    ibm annual report 2004 CONSOLIDATED STATEMENT OF FINANCIAL POSITION International Business Machines Corporation and Subsidiary Companies (Dollars in millions) AT DECEMBER 31: Notes 2004 2003* Assets Current assets: Cash and cash equivalents Marketable securities Notes and accounts receivable ...

  • Page 45
    ... International Business Machines Corporation and Subsidiary Companies ibm annual report 2004 (continued) (Dollars in millions) AT DECEMBER 31: Notes 2004 2003* Liabilities and Stockholders' Equity Current liabilities: Taxes Short-term debt Accounts payable Compensation and benefits Deferred...

  • Page 46
    ibm annual report 2004 CONSOLIDATED STATEMENT OF CASH FLOWS International Business Machines Corporation and Subsidiary Companies (Dollars in millions) FOR THE YEAR ENDED DECEMBER 31: 2004 2003* 2002* Cash Flow from Operating Activities from Continuing Operations: Income from continuing ...

  • Page 47
    ... OF CASH FLOWS International Business Machines Corporation and Subsidiary Companies ibm annual report 2004 (continued) (Dollars in millions) FOR THE YEAR ENDED DECEMBER 31: 2004 2003* 2002* Cash Flow from Financing Activities from Continuing Operations: Proceeds from new debt Short-term...

  • Page 48
    ... shares) Purchases (189,797 shares) and sales (12,873,502 shares) of treasury stock under employee plans - net Other treasury shares purchased, not retired (48,481,100 shares) Treasury shares issued to fund the U.S. pension fund (24,037,354 shares) Shares issued/to be issued in the PwCC acquisition...

  • Page 49
    ...shares) and sales (5,992,342 shares) of treasury stock under employee plans - net Other treasury shares purchased, not retired (49,994,514 shares) Shares to be issued in the PwCC acquisition Decrease in shares remaining to be issued in acquisition Tax effect - stock transactions Stockholders' equity...

  • Page 50
    ... shares) and sales (2,840,648 shares) of treasury stock under employee plans - net Other treasury shares purchased, not retired (78,562,974 shares) Decrease in shares remaining to be issued in acquisition Tax effect - stock transactions Stockholders' equity, December 31, 2004 The accompanying notes...

  • Page 51
    ... Companies ibm annual report 2004 a. Significant Accounting Policies basis of presentation On December 31, 2002, the International Business Machines Corporation (IBM and/or the company) sold its hard disk drive (HDD) business to Hitachi, Ltd. (Hitachi). See note c, "Acquisitions/Divestitures...

  • Page 52
    ... generally within four months, rarely exceeding nine months. Hardware The company's primary services offerings include information technology (IT) datacenter and business process transformation outsourcing, application management services, technology infrastructure and system maintenance, Web...

  • Page 53
    ... costs incurred by the company to transition the services. expense and other income Selling, General and Administrative Finance income attributable to sales-type leases, direct financing leases and loans is recognized at level rates of return over the terms of the leases or loans. Operating lease...

  • Page 54
    ... "Software Costs" on page 55 for additional information.) Other intangible assets are amortized over periods up to 7 years. retirement-related benefits See note w, "Retirement-Related Benefits," on pages 78 through 86 for the company's accounting policy for retirement-related benefits. stock-based...

  • Page 55
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS International Business Machines Corporation and Subsidiary Companies ibm annual report 2004 income taxes Income tax expense is based on reported income before income taxes. Deferred income taxes reflect the effect of temporary differences between asset ...

  • Page 56
    ... based on a combination of write-off history, aging analysis, and any specific, known troubled accounts. Financing Financing receivables include sales-type leases, direct financing leases, and loans. Below are the methodologies the company uses to calculate both its specific and its unallocated...

  • Page 57
    ... calculated and reported in the pro forma footnote disclosures required by SFAS No. 123. SFAS No. 123(R) allows the use of both closed form models (e.g., Black-Scholes Model) and open form models (e.g., lattice models) to measure the fair value of the share-based payment as long as that model...

  • Page 58
    ... its deferred tax assets and liabilities as of December 31, 2004 to reflect the impact of this special deduction. Rather, the impact of this deduction will be reported in the period for which the deduction is claimed on the company's U.S. federal income tax return. As discussed in note p, "Taxes" on...

  • Page 59
    ... costs associated with the retirement of long-lived assets for which 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 based on a present value interest rate...

  • Page 60
    ... company for the right to control the businesses acquired. None of the goodwill is deductible for tax purposes. The overall weighted-average life of the intangible assets purchased is 4.8 years. 2003 In 2003, the company completed nine acquisitions at an aggregate cost of $2,536 million. (Dollars...

  • Page 61
    ... fair value of $68 million to Rational employees. Rational provides open, industry-standard tools and best practices and services for developing business applications and building software products and systems. The Rational acquisition provides the company with the ability to offer a complete...

  • Page 62
    ...Computing Division. Under the terms of the agreement, IBM will receive consideration at closing in the form of cash and equity in Lenovo Group. IBM, as part of the agreement, retained the right and will be given a preference to provide maintenance, warranty and financing services to Lenovo Group. In...

  • Page 63
    ... Income tax (benefit)/ expense line item of discontinued operations. e. Inventories (Dollars in millions) AT DECEMBER 31: d. Financial Instruments (excluding derivatives) fair value of financial instruments Cash and cash equivalents, marketable securities, notes and other accounts receivable, and...

  • Page 64
    ...-line payments over the term. Each financing contract is priced independently at competitive market rates. The company has a history of enforcing the terms of these separate financing agreements. (Dollars in millions) AT DECEMBER 31: 2004 2003* Deferred taxes Alliance investments: Equity method...

  • Page 65
    ... TO CONSOLIDATED FINANCIAL STATEMENTS International Business Machines Corporation and Subsidiary Companies ibm annual report 2004 i. Intangible Assets Including Goodwill The following schedule details the company's intangible asset balances by major asset class: (Dollars in millions) At December...

  • Page 66
    ibm annual report 2004 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS International Business Machines Corporation and Subsidiary Companies j. Sale and Securitization of Receivables The company periodically sells receivables through the securitization of loans, leases and trade receivables. The company...

  • Page 67
    ... hedging programs follows. debt risk management The company issues debt in the 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...

  • Page 68
    ibm annual report 2004 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS International Business Machines Corporation and Subsidiary Companies long-term investments in foreign subsidiaries (net investment) A significant portion of the company's foreign currency denominated debt portfolio is designated as ...

  • Page 69
    ... TO CONSOLIDATED FINANCIAL STATEMENTS International Business Machines Corporation and Subsidiary Companies ibm annual report 2004 (Dollars in millions) Hedge Designation Fair Value Cash Flow Net Investment Non-Hedge/ Other (Dollars in millions, net of tax) Debit/(Credit) December 31, 2001 Net...

  • Page 70
    ...note c, "Acquisitions/Divestitures," on pages 60 and 61. The company employs extensive internal environmental protection programs that primarily are preventive in nature. The company also participates in environmental assessments and cleanups at a number of locations, including operating facilities...

  • Page 71
    ... FINANCIAL STATEMENTS International Business Machines Corporation and Subsidiary Companies ibm annual report 2004 n. Stockholders' Equity Activity In the fourth quarter of 2002, in connection with the PwCC acquisition, the company issued 3,677,213 shares of restricted stock valued at approximately...

  • Page 72
    ibm annual report 2004 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS International Business Machines Corporation and Subsidiary Companies settlement of some claims, and a stipulated remedy on remaining claims if plaintiffs prevail on appeal. Under the terms of the settlement, the judge will issue no ...

  • Page 73
    ... year is due to increased signings of long-term IT infrastructure arrangements in which financing is committed by the company to fund a client's future purchases from the company. The company has applied the disclosure provisions of FIN 45 to its agreements that contain guarantee or indemnification...

  • Page 74
    ibm annual report 2004 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS International Business Machines Corporation and Subsidiary Companies p. Taxes (Dollars in millions) FOR THE YEAR ENDED DECEMBER 31: A reconciliation of the company's continuing operations effective tax rate to the statutory U.S. ...

  • Page 75
    ... FINANCIAL STATEMENTS International Business Machines Corporation and Subsidiary Companies ibm annual report 2004 deferred tax liabilities (Dollars in millions) AT DECEMBER 31: 2004 2003 Retirement benefits Leases Software development costs Other Gross deferred tax liabilities $«7,057...

  • Page 76
    ...+ Payments Other Adjustments+ Microelectronics: Machinery/equipment: Current * Non-current ** Non-cancelable purchase commitments: Current * Non-current ** Employee terminations: Current * Non-current ** Vacant space: Current * Non-current ** Sale of Endicott facility * Sale of certain operations...

  • Page 77
    ... closed in the fourth 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...

  • Page 78
    ibm annual report 2004 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS International Business Machines Corporation and Subsidiary Companies fourth quarter actions During the fourth quarter of 2002, the company executed several actions related to the company's acquisition of PwCC. Specifically, the ...

  • Page 79
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS International Business Machines Corporation and Subsidiary Companies ibm annual report 2004 t. Earnings Per Share of Common Stock The following table sets forth the computation of basic and diluted earnings per share of common stock. FOR THE YEAR ENDED ...

  • Page 80
    ... Life (in years) Options Currently Exercisable Wtd. Avg. Exercise Price Number of Shares Under Option w. Retirement-Related Benefits IBM offers defined benefit pension plans, defined contribution pension plans, as well as nonpension postretirement plans primarily consisting of retiree medical...

  • Page 81
    ... assumption is tested for reasonableness against the historical return average, usually over a ten-year period. The discount rate assumptions used for pension and nonpension postretirement benefit plan accounting reflect the prevailing rates available on high-quality, fixed-income debt instruments...

  • Page 82
    ... 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 before retirement, or on annual credits. The range of assumptions that are used for...

  • Page 83
    ... International Business Machines Corporation and Subsidiary Companies ibm annual report 2004 Cost /(Income) of Pension Plans (Dollars in millions) U.S. Plans* FOR THE YEAR ENDED DECEMBER 31: Non-U.S. Plans 2002 2004 2003 2002 2004 2003 Service cost Interest cost Expected return on plan assets...

  • Page 84
    ... Acquisitions/divestitures, net Settlement of certain legal claims Actuarial losses Benefits paid from trust Direct benefit payments Foreign exchange impact Plan curtailments/settlements/termination benefits Benefit obligation at end of year Change in plan assets: Fair value of plan assets...

  • Page 85
    ...-U.S. discount rate assumptions It is the company's general practice to fund amounts for pensions sufficient to meet the minimum requirements set forth in applicable employee benefits laws and local tax laws. The company may also voluntarily make contributions up to the ABO level. From time to time...

  • Page 86
    ibm annual report 2004 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS International Business Machines Corporation and Subsidiary Companies plan assets The company's pension plan weighted-average asset allocations at December 31, 2004 and 2003 and target allocation for 2005, by asset category, are as ...

  • Page 87
    ... year Service cost Interest cost Actuarial losses/(gains) Direct benefit payments Benefit obligation at end of year Change in plan assets: Fair value of plan assets at beginning of year Actual return on plan assets Employer contributions Participant contributions Benefits paid from trust Fair value...

  • Page 88
    ibm annual report 2004 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS International Business Machines Corporation and Subsidiary Companies The benefit obligation was determined by applying the terms of medical, dental and life insurance plans, including the effects of established maximums on covered ...

  • Page 89
    ... 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 90
    ibm annual report 2004 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS International Business Machines Corporation and Subsidiary Companies management system segment view (Dollars in millions) Hardware Global Services Systems and Technology Group Personal Systems Group Global Financing Enterprise ...

  • Page 91
    ... software. The assets of the Hardware segments are primarily inventory and plant, property and equipment. The assets of the Global Financing segment are primarily financing receivables and fixed assets under operating leases. To accomplish the efficient use of the company's space and equipment...

  • Page 92
    ibm annual report 2004 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS International Business Machines Corporation and Subsidiary Companies management system segment view (Dollars in millions) Hardware Global Services Systems and Technology Group Personal Systems Group Global Financing Enterprise ...

  • Page 93
    ... 31: 2004 2003 2002 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 consolidated * Reclassified to...

  • Page 94
    ...Assuming dilution: Continuing operations Discontinued 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 $«««96,293 $«89...

  • Page 95
    ... is computed using the weighted-average number of shares outstanding during the year. Thus, the sum of the four quarters' EPS does not equal the full-year EPS. + 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...

  • Page 96
    ibm annual report 2004 ibm board of directors 94

  • Page 97
    IBM ANNUAL REPORT 2004 Board of Directors Seated left to right: Standing left to right: Cathleen Black PRESIDENT HEARST MAGAZINES John B. Slaughter * PRESIDENT AND CHIEF EXECUTIVE OFFICER NATIONAL ACTION COUNCIL FOR MINORITIES IN ENGINEERING, INC. Minoru Makihara SENIOR CORPORATE ADVISOR AND ...

  • Page 98
    ... 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. AIX, BladeCenter, Candle, DB2, Domino, eServer, IBM, iSeries, Lotus, Lotus Notes, pSeries, POWER5, PowerPC, Rational...

  • Page 99
    design: VSA Partners, Inc., Chicago printing: cover, Cenveo Anderson Lithograph; body, Allied Printing Services, Inc. additional re source s avail able online : www.ibm.com/annualreport/2004

  • Page 100
    international business machines corporation new orchard road armonk, new york 10504