IBM 2009 Annual Report Download - page 128

Notes to Consolidated Financial Statements
INTERNATIONAL BUSINESS MACHINES CORPORATION AND SUBSIDIARY COMPANIES
Revenue by Classes of
Similar Products or Services
The table presents external revenue for similar classes of products
or services within the company’s reportable segments. Within
Global Technology Services and Global Business Services,
client solutions often include IBM software and systems and
other suppliers’ products if the client solution requires it. Within
Software, product license charges and ongoing subscription
and support are reported as Software and consulting, educa-
tion, training and other product-related services are reported
as Services. Within Systems and Technology, Microelectronics
original equipment manufacturer (OEM) revenue is primarily from
the sale of semiconductors. Microelectronics Services revenue
includes circuit and component design services and technology
and manufacturing consulting services. See “Description of the
Business” beginning on page 20 for additional information. The
data is presented on a continuing operations basis.
($ in millions)
For the year ended December 31: 2009 2008 2007
Global Technology Services:
Services $28,762 $29,928 $27,482
Maintenance 6,956 7,250 6,670
Systems 1,279 1,648 1,496
Software 351 438 454
Global Business Services:
Services $17,213 $19,176 $17,579
Software 231 237 289
Systems 208 215 173
Software:
Software $20,094 $20,695 $18,992
Services 1,302 1,394 990
Systems and Technology:
Servers $10,627 $12,717 $13,348
Storage 3,177 3,612 3,738
Microelectronics OEM 1,550 1,862 2,589
Retail Store Solutions 551 741 872
Microelectronics Services 285 355 383
Printing Systems — — 386
Global Financing:
Financing $ 1,715 $ 1,946 $ 1,803
Remarketing 588 613 699
Note W.
Subsequent Events
On January 20, 2010, the company announced that it signed
a definitive agreement to acquire National Interest Security
Company, LLC (NISC). NISC, a privately held company, will
strengthen the company’s ability to deliver advanced analytics
and IT solutions to the public sector. The transaction is subject
to customary closing conditions, including regulatory reviews,
and is expected to be completed in the first quarter of 2010.
On January 26, 2010, the company announced that the
Board of Directors approved a quarterly dividend of $0.55 per
common share. The dividend is payable March 10, 2010 to
shareholders of record on February 10, 2010.
On January 26, 2010, the company announced that it com-
pleted the acquisition of Lombardi, a privately held software
company based in Austin, Texas. Lombardi is a leading pro-
vider of business process management software and services.
Lombardi will become a part of the company’s application inte-
gration software portfolio. At the date of issuance of the financial
statements, the initial purchase accounting was not complete.
On February 3, 2010, the company announced that it
signed a definitive agreement to acquire Initiate Systems. Initiate
Systems, a privately held company based in Chicago, Illinois
is a leading provider of data integrity software for information
sharing among healthcare and government organizations. The
transaction is subject to customary closing conditions, including
regulatory reviews, and is expected to be completed in the first
quarter of 2010.
On February 16, 2010, the company announced that it had
completed the acquisition of Intelliden Inc., a privately held soft-
ware company based in Menlo Park, California. Intelliden will
extend the company’s network management offerings. At the
date of issuance of the financial statements, the initial purchase
accounting was not complete.
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