1. International Business Machines, abbreviated IBM and
nicknamed "Big Blue", is a multinational computer technology
and IT consulting corporation headquartered in Armonk, New
York, United States. The company is one of the few information
technology companies with a continuous history dating back to
the 19th century. IBM manufactures and sells computer
hardware and software (with a focus on the latter), and offers
infrastructure services, hosting services, and consulting services
in areas ranging from mainframe computers to
nanotechnology.[1] Ginni Rometty is the president and CEO of
IBM.
IBM has been well known through most of its recent history as
one of the world's largest computer companies and systems
integrators.[2] With over 433,362 (2012) employees worldwide,
IBM is one of the largest and most profitable information
technology employers in the world.[3] IBM holds more patents
than any other U.S. based technology company and has eleven
research laboratories worldwide.[4] The company has scientists,
engineers, consultants, and sales professionals in over 170
countries.[5] IBM employees have earned five Nobel Prizes, four
Turing Awards, five National Medals of Technology, and five
National Medals of Science.[6]

2. International Business Machines Corporation
Logo used since 1972.
Public
Type
NYSE: IBM
Dow Jones Industrial Average
Traded as
Component
S&P 500 Component
Computer hardware, Computer
Industry
software, IT services, IT consulting
Endicott, New York, U.S.
Founded
(June 16, 1911 (102 years ago))
Thomas J. Watson
Founder(s)
Charles Ranlett Flint
Headquarters Armonk, New York, U.S.
Worldwide
Area served
Ginni Rometty
Key people
(Chairman, President, and CEO)
See IBM products
Products
US$ 104.5 billion (2012)[1]
Revenue
Operating
US$ 21.90 billion (2012)[1]
income
US$ 17.60 billion (2012)[1]
Net income
US$ 119.21 billion (2012)[1]
Total assets
US$ 18.86 billion (2012)[1]
Total equity
434,246 (December 31, 2012)[2]
Employees
Financing, Hardware, Services,
Divisions
Software
IBM.com
Website

3. Corporate affairs
IBM's headquarters complex is located in Armonk, Town of
North Castle, New York, United States. The 283,000-squarefoot (26,300 m2) IBM building has three levels of custom
curtain wall. The building is located on a 25-acre (10 ha) site.
IBM has been headquartered in Armonk since 1964. The
company has twelve research labs worldwide—Almaden,
Austin, Australia, Brazil, China, Dublin, Israel, India, Tokyo,
Watson (New York), Zurich and Nairobi—with Watson
(dedicated in 1961) serving as headquarters for the research
division and the site of its annual meeting. Other campus
installations include towers in Montreal, Paris, and Atlanta;
software labs in Raleigh-Durham, Rome and Toronto; buildings
in Chicago, Johannesburg, and Seattle; and facilities in
Hakozaki and Yamato. The company also operates the IBM
Scientific Center, Hursley House, the Canada Head Office
Building, IBM Rochester, and the Somers Office Complex. The
company's contributions to architecture and design, including
Chicago's 330 North Wabash building designed by Ludwig Mies
van der Rohe, were recognized with the 1990 Honor Award
from the National Building Museum.

4. BOARD OF DIRECTORS
IBM's Board of Directors, with 14 members, is responsible for
the overall management of the company. With Cathie Black's
resignation from the board in November 2010, the remaining 13
members (along with their affiliation and year of joining the
board) are as follows: Alain J. P. Belda '08 (Alcoa), William R.
Brody '07 (Salk Institute / Johns Hopkins University), Kenneth
Chenault '98 (American Express), Michael L. Eskew '05 (UPS),
Shirley Ann Jackson '05 (Rensselaer Polytechnic Institute),
Andrew N. Liveris '10 (Dow Chemical), W. James McNerney,
Jr. '09 (Boeing), James W. Owens '06 (Caterpillar), Samuel J.
Palmisano '00 (IBM), Joan Spero '04 (Doris Duke Charitable
Foundation), Sidney Taurel '01 (Eli Lilly), and Lorenzo Zambrano '03
(Cemex)
Various IBM facilities
IBM Rochester (Minnesota), nicknamed the "Big
Blue Zoo"
IBM Avenida de América Building in Madrid, Spain
Somers (New York) Office Complex, designed by
I.M. Pei

5. Corporate recognition and brand
In 2012, Fortune ranked IBM the No. 2 largest U.S. firm in terms of number of
employees the No. 4 largest in terms of market capitalization, the No. 9 most
profitable, and the No. 19 largest firm in terms of revenue. Globally, the company
was ranked the No. 31 largest firm in terms of revenue by Forbes for 2011. Other
rankings for 2011/2012 include the following:[






No. 1 company for leaders (Fortune)
No. 1 green company worldwide (Newsweek)[46]
No. 2 best global brand (Interbrand)
No. 2 most respected company (Barron's)[47]
No. 5 most admired company (Fortune)
No. 18 most innovative company (Fast Company)
For 2012, IBM's brand was valued by Interbrand at $75.5 billion.[48]
Research and inventions
In 1945, The Watson Scientific Computing Laboratory was founded at Columbia
University in New York, New York. The renovated fraternity house on Manhattan's
West Side was used as IBM's first laboratory devoted to pure science. The lab was
the forerunner of IBM's Research Division, which today operates research
facilities around the world.
In 1966, IBM researcher Robert H. Dennard invented Dynamic Random Access
Memory (DRAM) cells, one-transistor memory cells that store each single bit of
information as an electrical charge in an electronic circuit. The technology permits
major increases in memory density and is widely adopted throughout the industry
where it remains in widespread use today.

6. IBM has been a leading proponent of the Open Source Initiative, and began
supporting Linux in 1998.[62] The company invests billions of dollars in services
and software based on Linux through the IBM Linux Technology Center, which
includes over 300 Linux kernel developers.[63] IBM has also released code under
different open source licenses, such as the platform-independent software
framework Eclipse (worth approximately US$40 million at the time of the
donation),[64] the three-sentence International Components for Unicode (ICU)
license, and the Java-based relational database management system (RDBMS)
Apache Derby. IBM's open source involvement has not been trouble-free, however
(see SCO v. IBM).
Famous inventions by IBM include the following:














Automated teller machine (ATM)
Floppy disk
Hard disk drive
Electronic keypunch
Magnetic stripe card
Virtual machine
Scanning tunneling microscope
Reduced instruction set computing
Relational database
Universal Product Code (UPC)
Financial swap
SABRE airline reservation system
Dynamic Random Access Memory (DRAM)
Watson artificial intelligence

7. IBM Corp.
Profit & Loss
Year Ended 31 December
2012
2011
2010
2009
2008
$ millions
Turnover
104507.0 106916.0 99870.0 95758.0 103630.0
Operating Profit
22361.0 21414.0 20091.0 18540.0 17388.0
Net Interest
-459.0
Profit Before Tax
21902.0 21003.0 19723.0 18138.0 16715.0
Profit After Tax
16604.0 15855.0 14833.0 13425.0 12334.0
Total Dividend
n/a
n/a
n/a
n/a
n/a
Retained Profit / Loss
n/a
n/a
n/a
n/a
n/a
-411.0
-368.0 -402.0 n/a
Balance Sheet
Year Ended 31 December
2012
2011
2010
2009
2008
Intangible Assets
33034.0
29605.0
28624.0
22703.0
21104.0
Tangible Assets
13996.0
13883.0
14096.0
14165.0
14305.0
Fixed Investments
5021.0
4895.0
5778.0
5379.0
n/a
Total Fixed Assets
69780.0
65505.0
65334.0
60087.0
60520.0
$ millions

8. Stocks
2287.0
2595.0
2450.0
2494.0
2701.0
Debtors
n/a
n/a
n/a
n/a
n/a
Cash at Bank and in Hand
10412.0
11922.0
11651.0
12183.0
12741.0
Total Assets
119213.0 116433.0 113450.0 109024.0 109524.0
Creditors Amount Within 1 year 34444.0
33660.0
33784.0
31835.0
31199.0
Creditors Amount After 1 year 32516.0
31217.0
27870.0
28334.0
30815.0
Total Liabilities
100229.0 96197.0
90278.0
86269.0
95939.0
Net Assets
18984.0
20236.0
23172.0
22755.0
13585.0
Net Current Assets
n/a
n/a
n/a
n/a
n/a
Called Up Share Capital
50110.0
48129.0
45418.0
41810.0
n/a
Share Premium Account
n/a
n/a
n/a
n/a
n/a
Other Reserves
-148890.0 -132847.0 -114904.0 -100073.0 n/a
Profit and Loss Account
117640.0 104857.0 92532.0
80900.0
n/a
Shareholders Funds
18860.0
20139.0
23046.0
22637.0
13465.0
Minority Interests
124.0
97.0
126.0
118.0
120.0
Key Figures
Year Ended 31 December
Earnings Per Share Basic USD
2012 2011 2010 2009 2008
0.01 0.01 0.01 0.01 9.02
Earnings Per Share Diluted USD 0.01 0.01 0.01 0.01 n/a
Earnings Per Share Adjusted USD 0.01 0.01 0.01 0.01 9.02
Earnings Per Share Growth (%)
10
13
16
12
23

9. Total Dividend USD
2.55 3.00 2.60 2.20 2.00
Operating Margin (%)
21
20
20
19
17
ROCE (%)
116
98
87
71
63
Dividend Cover
5.70 4.42 4.50 4.60 4.51
Dividend Yield
1.40 1.60 1.80 n/a 1.10
Price / Earnings Ratio
12.90 14.20 12.50 n/a 20.90
Dividend Per Share Growth (%)
-15
15
18
10
33
Annual Financials for International Business
Machines Corp.
Fiscal year is January-December. All values USD
millions.
2008
2009
2010
2011
2012
Sales/Revenue
103.63B 95.76B 99.87B 106.92B 104.51B
Cost of Goods Sold (COGS) incl. D&A
58.6B
COGS excluding D&A
53.15B 47.39B 49.36B 52.22B 49.99B
Depreciation & Amortization Expense
5.45B
4.99B 4.83B 4.82B
4.68B
Depreciation
4.14B
3.77B 3.66B 3.59B
3.39B
Amortization of Intangibles
1.31B
1.22B 1.17B 1.23B
1.28B
Gross Income
5-year
trend
45.03B 43.38B 45.68B 49.88B 49.84B
2008
52.38B 54.19B 57.04B 54.67B
2009
2010
2011
2012
SG&A Expense
28.36B
26.2B
27.03B 29.11B 28.87B
Research & Development
6.02B
5.82B
6.03B 6.26B 6.3B
5-year
trend

10. 2008
2009
2010
2011
2012
Other SG&A
22.34B
20.38B 21B
22.85B 22.57B
Other Operating Expense
0
0
0
0
Unusual Expense
711M
50M
(84M) 144M 571M
EBIT after Unusual Expense
(711M)
(50M)
84M
Non Operating Income/Expense
1.08B
1.41B
1.37B 764M 1.96B
Non-Operating Interest Income
343M
107M
92M
136M 109M
Equity in Affiliates (Pretax)
0
-
-
-
Interest Expense
673M
498M
474M 519M 558M
Gross Interest Expense
688M
511M
479M 528M 576M
Interest Capitalized
15M
13M
5M
Pretax Income
16.72B
18.14B 19.72B 21B
Income Tax
4.38B
4.71B
4.89B 5.15B 5.3B
Income Tax - Current Domestic
554M
593M
469M 697M 1.5B
Income Tax - Current Foreign
1.93B
2.35B
3.13B 3.24B 3.01B
Income Tax - Deferred Domestic
1.47B
1.53B
1.23B 990M 692M
Income Tax - Deferred Foreign
432M
247M
69M
222M 105M
Income Tax Credits
0
0
0
0
0
Equity in Affiliates
0
0
0
0
0
Other After Tax Income (Expense)
-
0
0
0
0
Consolidated Net Income
12.33B
13.43B 14.83B 15.86B 16.6B
Minority Interest Expense
0
0
0
0
(144M) (571M)
9M
0
-
18M
21.9B
0
5-year
trend

11. 2008
Net Income
12.33B
2009
2010
2011
2012
13.43B 14.83B 15.86B 16.6B
Extraordinaries & Discontinued Operations 0
0
0
0
0
Extra Items & Gain/Loss Sale Of Assets
0
0
0
0
0
Cumulative Effect - Accounting Chg
-
0
0
0
0
Discontinued Operations
0
0
0
0
0
Net Income After Extraordinaries
12.33B
13.43B 14.83B 15.86B 16.6B
Preferred Dividends
0
0
Net Income Available to Common
12.33B
13.43B 14.83B 15.86B 16.6B
EPS (Basic)
9.01
10.12
11.69 13.25 14.53
Basic Shares Outstanding
1.37B
1.33B
1.27B 1.2B
EPS (Diluted)
8.89
10.01
11.52 13.06 14.37
Diluted Shares Outstanding
1.39B
1.34B
1.29B 1.21B 1.16B
EBITDA
22.13B
22.17B 23.49B 25.58B 25.64B
0
0
MAJOR SHAREHOLDERS
Breakdown
% of Shares Held by All Insider and 5% Owners:
% of Shares Held by Institutional & Mutual Fund
Owners:
0%
60%
0
1.14B
5-year
trend

12. 2008
% of Float Held by Institutional & Mutual Fund
Owners:
Number of Institutions Holding Shares:
2009
2010
2011
2012
5-year
trend
60%
1750
Major Direct Holders
Holder
Shares Reported
PALMISANO
SAMUEL J
285,107 Aug 16, 2012
MILLS STEVEN A
144,470 May 7, 2013
ROMETTY
VIRGINIA M
DANIELS MICHAEL
E
24,429 Feb 19, 2013
107,871 Feb 1, 2013
LEBLANC ROBERT
J.
51,400 Feb 15, 2013
Top Institutional Holders
Holder
Shares % Out
Value* Reported
Berkshire Hathaway, Inc
68,121,984
6.22
13,018,792,362 Jun 30, 2013
State Street Corporation
60,541,885
5.53
11,570,159,642 Jun 30, 2013
Vanguard Group, Inc. (The)
54,608,801
4.99
10,436,287,959 Jun 30, 2013
BlackRock Institutional Trust
Company, N.A.
27,496,733
2.51
5,254,900,643 Jun 30, 2013
State Farm Mutual Automobile
Insurance Co
16,651,892
1.52
3,182,343,080 Jun 30, 2013
Northern Trust Corporation
16,317,160
1.49
3,118,372,447 Jun 30, 2013
Bank of New York Mellon
Corporation
15,377,793
1.40
2,938,850,020 Jun 30, 2013
BlackRock Fund Advisors
10,562,286
0.96
2,018,558,477 Jun 30, 2013
Wellington Management Company,
10,471,466
0.96
2,001,201,867 Jun 30, 2013

13. 2008
2009
2010
2011
2012
5-year
trend
LLP
Norges Bank Investment
0.83
1,743,183,918 Dec 31, 2012
Shares
% Out
Value* Reported
15,742,070
1.44
3,008,466,997 Jun 30, 2013
Vanguard 500 Index Fund
9,982,835
0.91
1,907,819,596 Jun 30, 2013
Vanguard Institutional Index FundInstitutional Index Fund
9,906,435
0.90
1,893,218,792 Jun 30, 2013
SPDR S&P 500 ETF Trust
9,560,038
0.87
1,742,508,126 Aug 31, 2013
SPDR Dow Jones Industrial Average
ETF
5,974,574
0.55
1,088,985,602 Aug 31, 2013
Vanguard/Wellington Fund Inc.
5,038,680
0.46
1,048,146,213 May 31, 2013
Vanguard Growth Index Fund
5,060,289
0.46
967,071,830 Jun 30, 2013
Spartan 500 Index Fund
4,291,020
0.39
782,124,215 Aug 31, 2013
Select Sector SPDR FundTechnology
3,906,959
0.36
712,121,416 Aug 31, 2013
Vanguard Specialized-Dividend
Appreciation Index Fund
3,617,533
0.33
705,563,636 Jul 31, 2013
Management
9,100,412
Top Mutual Fund Holders
Holder
Vanguard Total Stock Market Index
Fund

14. FUTURE PLANS
IBM Developer Kits are made available with IBM Products such
as AIX, zOS, and WebSphere. In addition, for the various Linux
platforms, we intend to distribute the IBM Developer Kits with
the leading Linux distributions on each platform. For each
platform where the IBM Developer Kit is not available with a
distribution, IBM will provide alternative access.
The most recent JSE technology from IBM is the 7 level. Our
implementation of version 7 includes significant functional
enhancements as well as upgraded Java Virtual Machine and
Just-In-Time (JIT) compiler capabilities.