IBM 2010 Annual Report Download - page 64

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62
Consolidated Statement of Earnings
International Business Machines Corporation and Subsidiary Companies
($ in millions except per share amounts)
For the year ended December 31: Notes 2010 2009 2008
Revenue:
Services $56,868 $55,128 $ 58,892
Sales 40,736 38,300 42,156
Financing 2,267 2,331 2,582
Total revenue 99,870 95,758 103,630
Cost:
Services 38,383 37,146 40,937
Sales 14,374 13,606 15,776
Financing 1,100 1,220 1,256
Total cost 53,857 51,973 57,969
Gross profit 46,014 43,785 45,661
Expense and other income:
Selling, general and administrative 21,837 20,952 23,386
Research, development and engineering Q 6,026 5,820 6,337
Intellectual property and custom development income (1,154) (1,177) (1,153)
Other (income) and expense (787) (351) (298)
Interest expense K&L 368 402 673
Total expense and other income 26,291 25,647 28,945
Income before income taxes 19,723 18,138 16,715
Provision for income taxes P 4,890 4,713 4,381
Net income $14,833 $13,425 $ 12,334
Earnings per share of common stock:
Assuming dilution R $ 11.52 $ 10.01 $ 8.89
Basic R $ 11.69 $ 10.12 $ 9.02
Weighted-average number of common shares outstanding:
Assuming dilution 1,287,355,388 1,341,352,754 1,387,797,198
Basic 1,268,789,202 1,327,157,410 1,369,367,069
The accompanying notes on pages 68 through 130 are an integral part of the financial statements.