IBM 2014 Annual Report Download - page 81

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80 Consolidated Statement of Earnings
International Business Machines Corporation and Subsidiary Companies
($ in millions except per share amounts)
For the year ended December 31: Notes 2014 2013*2012*
Revenue
Services $55,673 $57,655 $ 59,453
Sales 35,063 38,666 41,381
Financing 2,057 2,047 2,040
Total revenue T92,793 98,367 102,874
Cost
Services 36,034 37,564 39,166
Sales 9,312 11,009 12,260
Financing 1,040 1,110 1,087
Total cost 46,386 49,683 52,513
Gross profit 46,407 48,684 50,361
Expense and other (income)
Selling, general and administrative 23,180 23,451 23,463
Research, development and engineering O5,437 5,743 5,816
Intellectual property and custom development income (742) (822) (1,074)
Other (income) and expense (1,938) (333) (843)
Interest expense D&J 484 402 459
Total expense and other (income) 26,421 28,440 27,821
Income from continuing operations before income taxes 19,986 20,244 22,540
Provision for income taxes N4,234 3,363 5,541
Income from continuing operations 15,751 16,881 16,999
Loss from discontinued operations, net of tax C(3,729) (398) (395)
Net income $12,022 $16,483 $ 16,604
Earnings/(loss) per share of common stock
Assuming dilution
Continuing operations P$ 15.59 $ 15.30 $ 14.71
Discontinued operations P(3.69) (0.36) (0.34)
Total P$ 11.90 $ 14.94 $ 14.37
Basic
Continuing operations P$ 15.68 $ 15.42 $ 14.88
Discontinued operations P(3.71) (0.36) (0.35)
Total P$ 11.97 $ 15.06 $ 14.53
Weighted-average number of common shares outstanding
Assuming dilution 1,010,000,480 1,103,042,156 1,155,449,317
Basic 1,004,272,584 1,094,486,604 1,142,508,521
* Reclassified to reflect discontinued operations presentation.
Amounts may not add due to rounding.
The accompanying notes on pages 86 through 150 are an integral part of the financial statements.