IBM 2007 Annual Report Download - page 119

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§§Ì
Notes to Consolidated Financial Statements
International Business Machines Corporation and Subsidiary Companies
RECONCILIATIONS OF IBM AS REPORTED
($ in millions)
FOR THE YEAR ENDED DECEMBER 31: 2007 2006 2005
Revenue:
/Ó>ÑÅi°ÅÓ>LiÑÈiiÓÈÑ $105,670 $98,867 $98,572
"ÓiÅÑÅiäiÞiÑ>`Ñ>`ÞÈÓiÓÈÑ 842 637 639
>ÓÑwÑÓiÅ>ÑÅiäiÞiÑ (7,726) (8,080) (8,077)
Total IBM consolidated revenue $ 98,786 $91,424 $91,134
($ in millions)
FOR THE YEAR ENDED DECEMBER 31: 2007 2006 2005
Pre-Tax Income:
/Ó>ÑÅi°ÅÓ>LiÑÈiiÓÈÑ $15,163 $13,682 $11,485
Elimination of internal transactions (194) (171) (168)
1>V>Ói`ÑVÅ°Å>ÓiÑ>ÞÓÈÑ (480) (194) 909
Total IBM consolidated pre-tax
income from continuing operations $14,489 $13,317 $12,226
7ÓÑ °ÅiÓ>æÑ ViÑ wÅÑ VÓÞÑ °iÅ>ÓÈ]Ñ Þ>V>Ói`Ñ
VÅ°Å>ÓiÑ>ÞÓÈÑÑÛííÌÑVÞ`iÑÓiÑ>ÑwÅÑÓiÑ`äiÈÓÓÞÅiÑwÑÓiÑ
°ÅÓÑLÞÈiÈÈÑ>`ÑÓiÑÓiÅiÈÓÑiæ°iÈiÑ>ÈÈV>Ói`ÑåÓÑÓiÑVÅi-
iÓ>Ñ`iLÓÑÓÑÈÞ°°ÅÓÑÓiÑ-,ËÑÛííyÑVÞ`iÈÑÓiÑ>ÑwÅÑÓiÑÈ>iÑ
wÑÓiÑ*iÅÈ>Ñ°ÞÓÑLÞÈiÈÈÑÓÑiä]ÑÓiÑ°>VÓÑwÑÓiÑi>Ñ
ÈiÓÓiiÓÑåÓÑVÅÈwÓÑÅ°Å>Ó]Ñ°iÈÑVÞÅÓ>iÓÑÅi>Ói`Ñ
V>ÅiÈÑ>`ÑÞ>V>Ói`ÑV>ÅiÈÑÅi>Ói`ÑÓÑÓiÑÅiÈÓÅÞVÓÞÅÑ>VÓȵ
Immaterial Items
INVESTMENT IN EQUITY ALLIANCES AND
EQUITY ALLIANCES GAINS/(LOSSES)
/iÑ äiÈÓiÓÈÑ Ñ iºÞÓçÑ >>ViÈÑ >`Ñ ÓiÑ ÅiÈÞÓÑ >ÈÑ >`Ñ
²ÈÈiȳÑwÅÑÓiÈiÑäiÈÓiÓÈÑÓ>ÓÑ>ÅiÑ>ÓÓÅLÞÓ>LiÑÓÑÓiÑÈiiÓÈÑ
``ÑÓÑ>äiÑ>Ñ>ÓiÅ>ÑiwwiVÓÑÑÓiÑw>V>Ñ°ÈÓÑÅÑÓiÑw>V>Ñ
ÅiÈÞÓÈÑwÑÓiÑÈiiÓȵ
Management System Segment View
($ in millions)
GLOBAL SERVICES SEGMENTS
GLOBAL GLOBAL PERSONAL
TECHNOLOGY BUSINESS SYSTEMS AND GLOBAL COMPUTING TOTAL
FOR THE YEAR ENDED DECEMBER 31: SERVICES SERVICES TECHNOLOGY SOFTWARE FINANCING DIVISION SEGMENTS
2007:
æÓiÅ>ÑÅiäiÞiÑ $36,103 $18,041 $21,317 $19,982 $2,502 $ — $ 97,944
ÓiÅ>ÑÅiäiÞiÑ 1,636 1,193 998 2,416 1,482 — 7,726
Total revenue $37,739 $19,234 $22,315 $22,398 $3,984 $ — $105,670
Pre-tax income $ 3,557 $ 2,064 $ 2,153 $ 6,002 $1,386 $ — $ 15,163
,iäiÞiÑçi>ÅÓçi>ÅÑV>iÑ 10.7% 10.9% (3.6)% 9.7% 2.4% — 6.9%
*ÅiÓ>æÑViÑçi>ÅÓçi>ÅÑV>iÑ 8.2% 21.0% 23.8% 9.3% (4.7)% — 10.8%
*ÅiÓ>æÑViÑ>ÅÑ 9.4% 10.7% 9.6% 26.8% 34.8% — 14.3%
2006:
æÓiÅ>ÑÅiäiÞiÑ $32,322 $15,969 $21,970 $18,161 $2,365 $ — $ 90,787
ÓiÅ>ÑÅiäiÞiÑ 1,763 1,373 1,168 2,249 1,527 — 8,080
/Ó>ÑÅiäiÞi $34,086 $17,341 $23,138 $20,409 $3,892 $ — $ 98,867
Pre-tax income $ 3,288 $ 1,706 $ 1,739 $ 5,493 $1,455 $ — $ 13,682
,iäiÞiÑçi>ÅÓçi>ÅÑV>iÑ 1.4% 0.6% 4.7% 8.5% (0.4)% NM 0.3%
*ÅiÓ>æÑViÑçi>ÅÓçi>ÅÑV>iÑ 25.6% 116.9% (7.6)% 14.9% (8.1)% NM 19.1%
*ÅiÓ>æÑViÑ>ÅÑ 9.6% 9.8% 7.5% 26.9% 37.4% NM 13.8%
2005:
æÓiÅ>ÑÅiäiÞiÑ $31,501 $15,906 $20,981 $16,830 $2,401 $2,876 $ 90,495
ÓiÅ>ÑÅiäiÞiÑ 2,102 1,339 1,118 1,979 1,506 33 8,077
/Ó>ÑÅiäiÞi $33,603 $17,245 $22,099 $18,809 $3,907 $2,909 $ 98,572
*ÅiÓ>æÑViвÈȳ $ 2,619 $ 786 $ 1,883 $ 4,779 $1,583 $ (165) $ 11,485
,iäiÞiÑçi>ÅÓçi>ÅÑV>iÑ 3.5% (1.9)% 4.9% 4.8% 0.3% NM (5.0)%
*ÅiÓ>æÑViÑçi>ÅÓçi>ÅÑV>iÑ (10.9)% (28.9)% (7.9)% 19.1% 8.6% NM (0.6)%
*ÅiÓ>æÑViÑ>ÅÑ 7.8% 4.6% 8.5% 25.4% 40.5% NM 11.7%
NM — Not meaningful