Skip to main content

Consolidated financial statements (audited)
International Business Machines Corporation and Subsidiary Companies

Consolidated statement of stockholders’ equity (audited)

($ in millions)
Common Stock and Additional Paid-in Capital Retained Earnings Treasury Stock Accumulated Gains and (Losses) not Affecting Retained Earnings Total

* Foreign currency translation adjustments are presented gross with associated hedges shown net of tax.

The accompanying notes are an integral part of the financial statements.

2006          
Stockholders’ equity, January 1, 2006 $28,926 $44,734 $ (38,546) $ (2,016) $33,098
Net income plus gains and (losses) not affecting retained earnings:          
Net income   9,492     $9,492
Gains and (losses) not affecting retained earnings (net of tax):          
Net unrealized losses on cash flow hedge derivatives (net of tax benefit of $178)       (342) (342)
Foreign currency translation adjustments (net of tax benefit of $225*)       1,020 1,020
Minimum pension liability adjustment (net of tax expense of $900)       1,881 1,881
Net unrealized gains on marketable securities (net of tax expense of $34)       53 53
Total gains and (losses) not affecting retained earnings         2,613
Adjustments to initially adopt SFAS No. 158          
Prior service credits/(costs) (net of tax expense of $494)       871 871
Net gains/(losses) (net of tax benefit of $6,028)       (10,371) (10,371)
Transition assets/(obligations) (net of tax expense of $1)       2 2
Subtotal: Net income plus gains and (losses) not affecting retained earnings and adjustments to adopt SFAS No. 158         $2,607
Cash dividends declared — common stock   (1,683)     (1,683)
Common stock issued under employee plans (27,211,279 shares) 2,322       2,322
Purchases (633,769 shares) and sales (3,489,803 shares) of treasury stock under employee plans — net   (111) 272   161
Other treasury shares purchased, not retired (97,564,462 shares)     (8,022)   (8,022)
Decrease in shares remaining to be issued in acquisition (3)       (3)
Income tax benefits — stock transactions 26       26
Stockholders’ equity, December 31, 2006 $31,271 $52,432 $(46,296) $(8,901) $28,506
($ in millions)
  Common Stock and Additional Paid-in Capital Retained Earnings Treasury Stock Accumulated Gains and (Losses) not Affecting Retained Earnings Total

* Foreign currency translation adjustments are presented gross with associated hedges shown net of tax.

The accompanying notes are an integral part of the financial statements.

2007          
Stockholders’ equity, January 1, 2007 $31,271 $52,432 $(46,296) $(8,901) $28,506
Adjustment to initially adopt FIN 48   117     117
Net income plus gains and (losses) not affecting retained earnings:          
Net income   10,418     $10,418
Gains and (losses) not affecting retained earnings (net of tax):          
Net unrealized losses on cash flow hedge derivatives (net of tax benefit of $32)       (123) (123)
Foreign currency translation adjustments (net of tax benefit of $553*)       726 726
Retirement-related benefit plans:          
Prior service credits (net of tax expense of $31)       44 44
Net gains/(losses) (net of tax expense of $1,913)       3,611 3,611
Amortization of prior service costs/(credits) (net of tax benefit of $50)       (85) (85)
Amortization of net gains/(losses) (net of tax expense of $654)       1,110 1,110
Amortization of transition assets (net of tax benefit of $1)       (2) (2)
Net unrealized gains on marketable securities (net of tax expense of $132)       206 206
Total gains and (losses) not affecting retained earnings         5,487
Subtotal: Net income plus gains and (losses) not affecting retained earnings         $15,905
Cash dividends declared — common stock   (2,147)     (2,147)
Common stock issued under employee plans (49,137,038 shares) 4,332       4,332
Purchases (1,282,131 shares) and sales (9,282,055 shares) of treasury stock under employee plans — net   (179) 729   550
Other treasury shares purchased, not retired (178,385,436 shares) (405)   (18,378)   (18,783)
Decrease in shares remaining to be issued in acquisition (6)       (6)
Income tax expense — stock transactions (4)       (4)
Stockholders’ equity, December 31, 2007 $35,188 $60,640 $ (63,945) $ (3,414) $28,470
($ in millions)
  Common Stock and Additional Paid-in Capital Retained Earnings Treasury Stock Accumulated Gains and (Losses) not Affecting Retained Earnings Total

* Foreign currency translation adjustments are presented gross with associated hedges shown net of tax.

The accompanying notes are an integral part of the financial statements.

2008          
Stockholders’ equity, January 1, 2008 $35,188 $60,640 $(63,945) $(3,414) $28,470
Net income plus gains and (losses) not affecting retained earnings:          
Net income   12,334     $12,334
Gains and (losses) not affecting retained earnings (net of tax):          
Net unrealized gains on cash flow hedge derivatives (net of tax expense of $79)       301 301
Foreign currency translation adjustments (net of tax benefit of $153*)        (3,552)  (3,552)
Retirement-related benefit plans:          
Prior service credits (net of tax benefit of $86)       (136) (136)
Net (losses)/gains (net of tax benefit of $8,436)       (15,245) (15,245)
Curtailments and settlements (net of tax expense of $9)       16 16
Amortization of prior service (credits)/costs (net of tax benefit of $73)       (132) (132)
Amortization of net gains/(losses) (net of tax expense of $358)       640 640
Net unrealized losses on marketable securities (net of tax benefit of $207)       (324) (324)
Total gains and (losses) not affecting retained earnings         (18,431)
Subtotal: Net income plus gains and (losses) not affecting retained earnings         $(6,097)
Cash dividends declared—common stock   (2,585)     (2,585)
Common stock issued under employee plans (39,374,439 shares) 3,919       3,919
Purchases (1,505,107 shares) and sales (5,882,800 shares) of treasury stock under employee plans — net   (36) 391   355
Other treasury shares purchased, not retired (89,890,347 shares) 54   (10,618)   (10,563)
Decrease in shares remaining to be issued in acquisition 3       3
Income tax expense — stock transactions (36)       (36)
Stockholders’ equity, December 31, 2008 $39,129 $70,353 $(74,171) $(21,845) $13,465
Previous
|Next
Back to Top