IBM 2007 Annual Report Download - page 15

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Report of Financials
International Business Machines Corporation and Subsidiary Companies
Management Discussion
Road Map 14
Forward-Looking and Cautionary Statements 15
Management Discussion Snapshot 16
Description of Business 17
Year in Review 23
Prior Year in Review 37
Discontinued Operations 42
Other Information 42
Looking Forward 42
Liquidity and Capital Resources 44
Critical Accounting Estimates 47
Currency Rate Fluctuations 49
Market Risk 49
Financing Risks 50
Employees and Related Workforce 50
Global Financing 50
Report of Management 56
Report of Independent Registered
Public Accounting Firm 57
Consolidated Financial
Statements
Earnings 58
Financial Position 59
Cash Flows 60
Stockholders’ Equity 61
Notes to Consolidated
Financial Statements
A Significant Accounting Policies 64
B Accounting Changes 73
C Acquisitions/Divestitures 76
D Financial Instruments (excluding derivatives) 82
E Inventories 83
F Financing Receivables 83
G Plant, Rental Machines and Other Property 84
H Investments and Sundry Assets 84
I Intangible Assets Including Goodwill 84
J Borrowings 85
K Derivatives and Hedging Transactions 88
L Other Liabilities 91
M Stockholders’ Equity Activity 92
N Contingencies and Commitments 94
O Taxes 97
P Research, Development and Engineering 99
Q 2005 Actions 99
R Earnings Per Share of Common Stock 101
S Rental Expense and Lease Commitments 101
T Stock-Based Compensation 102
U Retirement-Related Benefits 105
V Segment Information 116
W Subsequent Events 119
Five-year Comparison of
Selected Financial Data 120
Selected Quarterly Data 121
Performance Graphs 122
Board of Directors and
Senior Executive Officers 123
Stockholder Information 124
13