IBM 2006 Annual Report Download - page 13

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MANAGEMENT DISCUSSION
Road Map 12
Forward-Looking and Cautionary Statements 13
Management Discussion Snapshot 14
Description of Business 15
Year in Review 22
Prior Year in Review 37
Discontinued Operations 41
Other Information 41
Looking Forward 41
Liquidity and Capital Resources 43
Critical Accounting Estimates 45
Currency Rate Fluctuations 47
Market Risk 47
Financing Risks 48
Employees and Related Workforce 48
Global Financing 49
REPORT OF MANAGEMENT 54
REPORT OF INDEPENDENT
REGISTERED PUBLIC
ACCOUNTING FIRM 55
CONSOLIDATED FINANCIAL
STATEMENTS
Earnings 56
Financial Position 57
Cash Flows 58
Stockholders’ Equity 59
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
A Significant Accounting Policies 62
B Accounting Changes 71
C Acquisitions/Divestitures 73
D Financial Instruments (excluding derivatives) 78
E Inventories 79
F Financing Receivables 79
G Plant, Rental Machines and Other Property 79
H Investments and Sundry Assets 80
I Intangible Assets Including Goodwill 80
J Securitization of Receivables 81
K Borrowings 81
L Derivatives and Hedging Transactions 83
M Other Liabilities 87
N Stockholders’ Equity Activity 88
O Contingencies and Commitments 89
P Taxes 92
Q Research, Development and Engineering 93
R 2005 Actions 93
S Earnings Per Share of Common Stock 95
T Rental Expense and Lease Commitments 96
U Stock-Based Compensation 96
V Retirement-Related Benefits 100
W Segment Information 111
X Subsequent Events 115
FIVE-YEAR COMPARISON OF
SELECTED FINANCIAL DATA 116
SELECTED QUARTERLY DATA 117
PERFORMANCE GRAPHS 118
BOARD OF DIRECTORS AND
SENIOR EXECUTIVE OFFICERS 120
STOCKHOLDER INFORMATION 121
REPORT OF FINANCIALS
INTERNATIONAL BUSINESS MACHIN ES CORPORATION AND SUBSI DIARY COMPANIES
11
cyan mag yelo black
MAC
2718 CG10