IBM 2011 Annual Report Download - page 112

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Notes to Consolidated Financial Statements
International Business Machines Corporation and Subsidiary Companies110
Note L.
Equity Activity
The authorized capital stock of IBM consists of 4,687,500,000 shares
of common stock with a $.20 per share par value, of which
1,163,182,565 shares were outstanding at December 31, 2011 and
150,000,000 shares of preferred stock with a $.01 per share par
value, none of which were outstanding at December 31, 2011.
Stock Repurchases
The Board of Directors authorizes the company to repurchase IBM
common stock. The company repurchased 88,683,716 common
shares at a cost of $15,034 million, 117,721,650 common shares at
a cost of $15,419 million and 68,650,727 common shares at a cost
of $7,534 million in 2011, 2010 and 2009, respectively. These amounts
reflect transactions executed through December 31 of each year.
Actual cash disbursements for repurchased shares may differ due to
varying settlement dates for these transactions. At December 31, 2011,
$8,660 million of Board common stock repurchase authorization
was still available. The company plans to purchase shares on the open
market or in private transactions from time to time, depending on
market conditions.
Other Stock Transactions
The company issued the following shares of common stock as part
of its stock-based compensation plans and employee stock purchase
plan: 20,669,785 shares in 2011, 34,783,386 shares in 2010 and
30,034,808 shares in 2009.The company issued 4,920,198 treasury
shares in 2011, 7,929,318 treasury shares in 2010 and 6,408,265 treasury
shares in 2009, as a result of exercises of stock options by employees
of certain acquired businesses and by non-U.S. employees. Also,
as part of the company’s stock-based compensation plans, 1,717,246
common shares at a cost of $289 million, 2,334,932 common shares
at a cost of $297 million and 1,550,846 common shares at a cost of
$161 million in 2011, 2010 and 2009, respectively, were remitted by
employees to the company in order to satisfy minimum statutory tax
withholding requirements. These amounts are included in the
treasury stock balance in the Consolidated Statement of Financial
Position and the Consolidated Statement of Changes in Equity.