IBM 2009 Annual Report Download - page 14

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Pre-tax Income
Free Cash Flow
Revenue
Divested Revenue
Note: 2005
–
2008 EPS reects the adoption of amendments
to ASC 260, “Earnings Per Share”
Financial Performance History
($ in billions)
Earnings Per Share
$
161
billion
As a result, IBM today is a
higher-performing enterprise.4
We have achieved record earnings per share …
Diluted earnings per share in 2009 were $10.01, marking
seven consecutive years of double-digit growth. Pre-tax
earnings from continuing operations were $18.1 billion, an
increase of 9 percent.
… and record cash performance.
In 2009 our free cash flow, excluding the year-to-year change
in Global Financing receivables, was $15.1 billion—an increase
of $800 million from 2008.
Our business model is more aligned with our clients’ needs and generates better financial results.
09080706050403020100
85 83 81
89
96
91 91
99
104
96
$18.1
$15.1
0
4
8
12
16
$20
We have therefore been able to invest
in future sources of growth and provide
record return to shareholders . . .
Primary Uses of Cash
From 2000 to 2009
$65 billion
Reinvested
Acquisitions & Capital Expenditures
$96 billion
Returned to Shareholders
Share Repurchases & Dividends
. . . while continuing to invest in R&D—more
than $56 billion from 2000 to 2009.
5
3.88
2.43
09080706050403020100
3.94 3.76
4.39
4.91
6.05
7.15
8.89
10.01
0
2
4
6
8
$10
12