IBM 2005 Annual Report Download - page 49

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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 2005 2004 2003
Revenue:
GlobalServices $«47,357 $«46,213 $«42,635
Hardware 24,314 31,154 28,239
Software 15,753 15,094 14,311
GlobalFinancing 2,407 2,608 2,826
EnterpriseInvestments/Other 1,303 1,224 1,120
TotalRevenue 91,134 96,293 89,131
Cost:
GlobalServices 35,070 35,038 32,304
Hardware 15,771 21,976 20,453
Software 1,972 1,933 1,943
GlobalFinancing 1,091 1,046 1,249
EnterpriseInvestments/Other 698 731 635
TotalCost 54,602 60,724 56,584
GrossProfit 36,532 35,569 32,547
ExpenseandOtherIncome:
Selling,generalandadministrative 21,314 20,079 18,601
Research,developmentandengineering Q5,842 5,874 5,314
Intellectualpropertyandcustomdevelopmentincome (948) (1,169) (1,168)
Other(income)andexpense (2,122) (23) 238
Interestexpense K&L 220 139 145
TotalExpenseandOtherIncome 24,306 24,900 23,130
IncomefromContinuingOperationsBeforeIncomeTaxes 12,226 10,669 9,417
Provisionforincometaxes P4,232 3,172 2,829
IncomefromContinuingOperations 7,994 7,497 6,588
DiscontinuedOperations:
Lossfromdiscontinuedoperations,netoftax (24) (18) (30)
Incomebeforecumulativeeffectofchangeinaccountingprinciple 7,970 7,479 6,558
Cumulativeeffectofchangeinaccountingprinciple,netoftax** B(36) ——
NetIncome $«««7,934 $«««7,479 $«««6,558
Earnings/(Loss)perShareofCommonStock:
AssumingDilution:
Continuingoperations s $«««««4.91 $«««««4.39 $«««««3.76
Discontinuedoperations s (0.01) (0.01) (0.02)
Beforecumulativeeffectofchangeinaccountingprinciple s 4.90 4.38 3.74
Cumulativeeffectofchangeinaccountingprinciple** s (0.02) ——
Total s$«««««4.87* $«««««4.38 $«««««3.74
Basic:
Continuingoperations s $«««««4.99 $«««««4.48 $«««««3.83
Discontinuedoperations s (0.02) (0.01) (0.02)
Beforecumulative effectofchangeinaccountingprinciple s 4.98* 4.47 3.81
Cumulativeeffectofchangeinaccountingprinciple** s (0.02) ——
Total s$«««««4.96 $«««««4.47 $«««««3.81
Weighted-AverageNumberofCommonSharesOutstanding:
Assumingdilution 1,627,632,662 1,707,231,708 1,752,847,742
Basic 1,600,591,264 1,674,959,086 1,721,588,628
* Doesnottotalduetorounding.
** ReflectsimplementationofFASBInterpretationNo.47.Seenote B,“AccountingChanges,” onpages61 and62 foradditionalinformation.
Theaccompanyingnotesonpages 54 through 100 areanintegralpartofthefinancialstatements.
48_ ConsolidatedStatements