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Notes to consolidated financial statements (audited)
International Business Machines Corporation and Subsidiary Companies
Q. Research, development and engineering (audited)
RD&E expense was $5,842 million in 2005, $5,874 million in 2004 and $5,314 million in 2003.
The company incurred expense of $5,379 million in 2005, $5,339 million in 2004 and $4,814 million in 2003 for scientific research and the application of scientific advances to the development of new and improved products and their uses as well as services and their application. Of these amounts, software-related expense was $2,689 million, $2,626 million and $2,393 million in 2005, 2004 and 2003, respectively. Included in the expense was a charge of $1 million and $9 million in 2005 and 2003, respectively, for acquired in-process R&D.
Expense for product-related engineering was $463 million, $535 million and $500 million in 2005, 2004 and 2003, respectively.
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