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Notes to consolidated financial statements (audited)

International Business Machines Corporation and Subsidiary Companies

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 A. Significant accounting policies
B. Accounting changes
C. Acquisitions/divestitures
D. Financial instruments (excluding derivatives)
E. Inventories
F. Financing receivables
G. Plant, rental machines and other property
H. Investments and sundry assets
I. Intangible assets including goodwill
J. Securitization of receivables
K. Borrowings
L. Derivatives and hedging transactions
 
 M. Other liabilities
N. Stockholders’ equity activity
O. Contingencies and commitments
P. Taxes
Q. Research, development and engineering
R. 2005 actions
S. Earnings per share of common stock
T. Rental expense and lease commitments
U. Stock-based compensation
V. Retirement-related benefits
W. Segment information
X. Subsequent events

G. Plant, rental machines and other property (audited)

(Dollars in millions)            
At December 31:   2005     2004  
Land and land improvements $ 684   $ 840  
Buildings and building improvements   8,312     9,100  
Plant, laboratory and office equipment   21,760     22,701  
    30,756     32,641  
Less: Accumulated depreciation   18,600     18,973  
    12,156     13,668  
Rental machines   3,505     3,744  
Less: Accumulated depreciation   1,905     2,237  
    1,600     1,507  
Total $ 13,756   $ 15,175  

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