IBM
RELEASES FOURTH-QUARTER RESULTS
Revenue
growth in all segments; Strong margin expansion and cash
generation
ARMONK, N.Y., Jan. 24, 2024 --
IBM (NYSE: IBM)
today announced fourth-quarter 2023 earnings results.
Logo
- https://mma.prnewswire.com/media/2319830/4511865/IBM_LOGO_1.jpg
"In the
fourth quarter, we grew revenue in all of our segments, driven by
continued adoption of our hybrid cloud and AI offerings. Client
demand for AI is accelerating and our book of business for watsonx
and generative AI roughly doubled from the third to the fourth
quarter," said Arvind Krishna, IBM
chairman and chief executive officer. "For the year, revenue growth
was in line with our expectations, and we exceeded our free cash
flow objective. Based on the strength of our portfolio and
demonstrated track record of innovation, for 2024 we expect revenue
performance in line with our mid-single digit model and about
$12 billion in free cash
flow."
Fourth-Quarter
Highlights
-
Revenue
- Revenue
of $17.4 billion, up 4 percent, up 3
percent at constant currency
- Software
revenue up 3 percent, up 2 percent at constant currency
-
Consulting revenue up 6 percent, up 5 percent at constant
currency
-
Infrastructure revenue up 3 percent, up 2 percent at constant
currency
-
Profit
Margin
- Gross
Profit Margin: GAAP: 59.1 percent, up 1.4 points; Operating
(Non-GAAP): 60.1 percent, up 1.4 points
- Pre-Tax
Income Margin: GAAP: 21.6 percent, up 1.8 points; Operating
(Non-GAAP): 24.0 percent, up 1.1 points
Full-Year
Highlights
-
Revenue of
$61.9 billion, up 2 percent, up 3
percent at constant currency
- Software
revenue up 5 percent
-
Consulting revenue up 5 percent, up 6 percent at constant
currency
-
Infrastructure revenue down 5 percent, down 4 percent at constant
currency
-
Profit
Margin
- Gross
Profit Margin: GAAP: 55.4 percent, up 1.4 points; Operating
(Non-GAAP): 56.5 percent, up 1.3 points
- Pre-Tax
Income Margin: GAAP: 14.0 percent, up 12.1 points; Operating
(Non-GAAP): 16.7 percent, up 0.4 points
-
Cash
Flow
- Net cash
from operating activities of $13.9
billion, up $3.5 billion; free
cash flow of $11.2 billion, up
$1.9 billion
|
|
FOURTH
QUARTER 2023 INCOME STATEMENT SUMMARY
|
|
|
|
Revenue
|
|
Gross
Profit
|
|
|
Gross
Profit
Margin
|
|
|
Pre-tax
Income
|
|
Pre-tax
Income
Margin
|
|
Net
Income
|
|
Diluted
Earnings
Per
Share
|
|
GAAP
from
Continuing
Operations
|
$
17.4
B
|
|
|
$
10.3 B
|
|
|
59.1
|
%
|
|
$
3.8
B
|
|
|
21.6
|
%
|
|
$
3.3
B
|
|
|
$
3.54
|
|
|
Year/Year
|
4
|
%(1)
|
|
7
|
%
|
|
1.4
|
Pts
|
|
13
|
%
|
|
1.8
|
Pts
|
|
14
|
%
|
|
13
|
%
|
|
Operating
(Non-GAAP)
|
|
|
|
$
10.4 B
|
|
|
60.1
|
%
|
|
$
4.2
B
|
|
|
24.0
|
%
|
|
$
3.6
B
|
|
|
$
3.87
|
|
|
Year/Year
|
|
|
|
7
|
%
|
|
1.4
|
Pts
|
|
9
|
%
|
|
1.1
|
Pts
|
|
9
|
%
|
|
8
|
%
|
|
(1)
3% at
constant currency
|
"We again
demonstrated the fundamental strengths of our business in the
fourth quarter through solid, broad-based revenue growth, continued
profit margin expansion, increased productivity gains and strong
cash generation," said James
Kavanaugh, IBM senior vice president and chief financial
officer. "Throughout 2023, those strengths enabled us to increase
our investment in R&D and talent, and complete nine
acquisitions to bolster our hybrid cloud and AI capabilities, all
while continuing to return value to shareholders through our
dividend."
Segment
Results for Fourth Quarter
-
Software
— revenues
of $7.5 billion, up 3.1 percent, up
2.0 percent at constant currency:
- Hybrid
Platform & Solutions up 2 percent, up 1 percent at constant
currency:
--
Red Hat up 8 percent, up 7 percent at constant currency
--
Automation up 1 percent, flat at constant currency
--
Data & AI up 1 percent
--
Security down 5 percent, down 6 percent at constant
currency
-
Transaction Processing up 5 percent, up 4 percent at constant
currency
-
Consulting
— revenues
of $5.0 billion, up 5.8 percent, up
5.5 percent at constant currency:
- Business
Transformation up 6 percent, up 5 percent at constant
currency
-
Technology Consulting up 5 percent, up 4 percent at constant
currency
-
Application Operations up 7 percent, up 6 percent at constant
currency
-
Infrastructure
— revenues
of $4.6 billion, up 2.7 percent, up
2.0 percent at constant currency:
- Hybrid
Infrastructure up 8 percent, up 7 percent at constant
currency
--
IBM zSystems
up 8 percent
--
Distributed Infrastructure up 8 percent, up 7 percent at constant
currency
-
Infrastructure Support down 9 percent
-
Financing
— revenues
of $0.2 billion, up 1.8 percent, up
0.3 percent at constant currency
Cash
Flow and Balance Sheet
In the
fourth quarter, the company generated net cash from operating
activities of $4.5 billion, up
$0.5 billion year to year. Net cash
from operating activities excluding IBM Financing receivables was
$6.3 billion. IBM's free cash flow
was $6.1 billion, up $0.9 billion year to year. The company returned
$1.5 billion to shareholders in
dividends in the fourth quarter.
For the
year, the company generated net cash from operating activities of
$13.9 billion, up $3.5 billion year to year. Net cash from
operating activities excluding IBM Financing receivables was
$12.7 billion. IBM's free cash flow
was $11.2 billion, up $1.9 billion year to year.
IBM ended
the fourth quarter with $13.5 billion
of cash and marketable securities, up $4.6
billion from year-end 2022. Debt, including IBM Financing
debt of $11.9 billion, totaled
$56.5 billion, up $5.6 billion since the end of 2022.
Full-Year
2023 Results
|
|
FULL-YEAR
2023 INCOME STATEMENT SUMMARY
|
|
|
|
Revenue
|
|
Gross
Profit
|
|
|
Gross
Profit
Margin
|
|
|
Pre-tax
Income
|
|
Pre-tax
Income
Margin
|
|
Net
Income
|
|
Diluted
Earnings
Per
Share
|
|
GAAP
from
Continuing
Operations
|
$
61.9
B
|
|
|
$
34.3 B
|
|
|
55.4
|
%
|
|
$
8.7
B
|
|
|
14.0
|
%
|
|
$
7.5
B
|
|
|
$
8.15
|
|
|
Year/Year
|
2
|
%(1)
|
|
5
|
%
|
|
1.4
|
Pts
|
|
NM
|
(2)
|
|
12.1
|
Pts(2)
|
|
NM
|
(2)
|
|
NM
|
%(2)
|
|
Operating
(Non-GAAP)
|
|
|
|
$
34.9 B
|
|
|
56.5
|
%
|
|
$
10.3 B
|
|
|
16.7
|
%
|
|
$
8.9
B
|
|
|
$
9.62
|
|
|
Year/Year
|
|
|
|
5
|
%
|
|
1.3
|
Pts
|
|
5
|
%
|
|
0.4
|
Pts
|
|
7
|
%
|
|
5
|
%
|
|
(1)
3% at
constant currency
|
|
(2)
GAAP YTY results
include the impact of a one-time, non-cash pension settlement
charge related to the transfer of a portion of the
company's
U.S. defined benefit pension obligations and related plan assets to
third-party insurers in third-quarter 2022.
|
Full-Year
2024 Expectations
-
Revenue:
The company expects constant currency revenue growth consistent
with its mid-single digit model. At current foreign exchange rates,
currency is expected to be about a one-point headwind to revenue
growth
-
Free cash
flow: The company expects about $12
billion in free cash flow
Forward-Looking
and Cautionary Statements
Except for
the historical information and discussions contained herein,
statements contained in this release may constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are based on the
company's current assumptions regarding future business and
financial performance. These statements involve a number of risks,
uncertainties and other factors that could cause actual results to
differ materially, including, but not limited to, the following: a
downturn in economic environment and client spending budgets; a
failure of the company's innovation initiatives; damage to the
company's reputation; risks from investing in growth opportunities;
failure of the company's intellectual property portfolio to prevent
competitive offerings and the failure of the company to obtain
necessary licenses; the company's ability to successfully manage
acquisitions, alliances and dispositions, including integration
challenges, failure to achieve objectives, the assumption of
liabilities and higher debt levels; fluctuations in financial
results; impact of local legal, economic, political, health and
other conditions; the company's failure to meet growth and
productivity objectives; ineffective internal controls; the
company's use of accounting estimates; impairment of the company's
goodwill or amortizable intangible assets; the company's ability to
attract and retain key employees and its reliance on critical
skills; impacts of relationships with critical suppliers; product
quality issues; impacts of business with government clients;
reliance on third party distribution channels and ecosystems;
cybersecurity and data privacy considerations; adverse effects
related to climate change and environmental matters; tax matters;
legal proceedings and investigatory risks; the company's pension
plans; currency fluctuations and customer financing risks; impact
of changes in market liquidity conditions and customer credit risk
on receivables; potential failure of the separation of Kyndryl
Holdings, Inc. to qualify for tax-free treatment; risk factors
related to IBM securities; and other risks, uncertainties and
factors discussed in the company's Form 10-Qs, Form 10-K and in the
company's other filings with the U.S. Securities and Exchange
Commission or in materials incorporated therein by reference. Any
forward-looking statement in this release speaks only as of the
date on which it is made. Except as required by law, the company
assumes no obligation to update or revise any forward-looking
statements.
Presentation
of Information in this Press Release
In an
effort to provide investors with additional information regarding
the company's results as determined by generally accepted
accounting principles (GAAP), the company has also disclosed in
this press release the following non-GAAP information, which
management believes provides useful information to
investors:
IBM
results —
-
adjusting
for currency (i.e., at constant currency);
-
presenting
operating (non-GAAP) earnings per share amounts and related income
statement items;
-
free cash
flow;
-
net cash
from operating activities excluding IBM Financing
receivables;
-
adjusted
EBITDA.
The
rationale for management's use of these non-GAAP measures is
included in Exhibit 99.2 in the Form 8-K that includes this press
release and is being submitted today to the SEC.
For
watsonx and generative AI, book of business includes Software
transactional revenue, SaaS Annual Contract Value and Consulting
signings.
Conference
Call and Webcast
IBM's
regular quarterly earnings conference call is scheduled to begin at
5:00 p.m. ET, today. The Webcast may
be accessed via a link at https://www.ibm.com/investor/events/earnings-4q23.
Presentation charts will be available shortly before the
Webcast.
Financial
Results Below (certain
amounts may not add due to use of rounded numbers; percentages
presented are calculated from the underlying whole-dollar
amounts).
Contact:
IBM
Sarah Meron, 347-891-1770
sarah.meron@ibm.com
Tim Davidson, 914-844-7847
tfdavids@us.ibm.com
|
INTERNATIONAL
BUSINESS MACHINES CORPORATION
COMPARATIVE
FINANCIAL RESULTS
(Unaudited;
Dollars in millions except per share amounts)
|
|
|
|
|
Three
Months Ended
December
31,
|
|
|
Year
Ended
December
31,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022(1)
|
|
|
REVENUE
BY SEGMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
Software
|
$
7,514
|
|
|
$
7,288
|
|
|
$
26,308
|
|
|
$
25,037
|
|
|
Consulting
|
5,048
|
|
|
4,770
|
|
|
19,985
|
|
|
19,107
|
|
|
Infrastructure
|
4,604
|
|
|
4,483
|
|
|
14,593
|
|
|
15,288
|
|
|
Financing
|
175
|
|
|
172
|
|
|
741
|
|
|
645
|
|
|
Other
|
41
|
|
|
(22)
|
|
|
233
|
|
|
453
|
|
|
TOTAL
REVENUE
|
17,381
|
|
|
16,690
|
|
|
61,860
|
|
|
60,530
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
10,267
|
|
|
9,632
|
|
|
34,300
|
|
|
32,687
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT MARGIN
|
|
|
|
|
|
|
|
|
|
|
|
|
Software
|
81.7
|
%
|
|
81.2
|
%
|
|
80.1
|
%
|
|
79.6
|
%
|
|
Consulting
|
27.7
|
%
|
|
27.4
|
%
|
|
26.6
|
%
|
|
25.5
|
%
|
|
Infrastructure
|
60.6
|
%
|
|
54.9
|
%
|
|
56.0
|
%
|
|
52.8
|
%
|
|
Financing
|
50.2
|
%
|
|
47.1
|
%
|
|
48.1
|
%
|
|
38.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
GROSS PROFIT MARGIN
|
59.1
|
%
|
|
57.7
|
%
|
|
55.4
|
%
|
|
54.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSE
AND OTHER INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
S,G&A
|
4,791
|
|
|
4,765
|
|
|
19,003
|
|
|
18,609
|
|
|
R,D&E
|
1,748
|
|
|
1,604
|
|
|
6,775
|
|
|
6,567
|
|
|
Intellectual
property and custom development
income
|
(242)
|
|
|
(245)
|
|
|
(860)
|
|
|
(663)
|
|
|
Other
(income) and expense
|
(193)
|
|
|
(118)
|
|
|
(914)
|
|
|
5,803
|
|
|
Interest
expense
|
405
|
|
|
313
|
|
|
1,607
|
|
|
1,216
|
|
|
TOTAL
EXPENSE AND OTHER INCOME
|
6,509
|
|
|
6,320
|
|
|
25,610
|
|
|
31,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
FROM CONTINUING OPERATIONS
BEFORE
INCOME TAXES
|
3,759
|
|
|
3,312
|
|
|
8,690
|
|
|
1,156
|
|
|
Pre-tax
margin
|
21.6
|
%
|
|
19.8
|
%
|
|
14.0
|
%
|
|
1.9
|
%
|
|
Provision
for/(Benefit from) income taxes
|
474
|
|
|
443
|
|
|
1,176
|
|
|
(626)
|
|
|
Effective
tax rate
|
12.6
|
%
|
|
13.4
|
%
|
|
13.5
|
%
|
|
(54.2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
FROM CONTINUING OPERATIONS
|
$
3,285
|
|
|
$
2,869
|
|
|
$
7,514
|
|
|
$
1,783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DISCONTINUED
OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss)
from discontinued operations, net of
taxes
|
3
|
|
|
(159)
|
|
|
(12)
|
|
|
(143)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
$
3,288
|
|
|
$
2,711
|
|
|
$
7,502
|
|
|
$
1,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS/(LOSS)
PER SHARE OF COMMON STOCK
|
|
|
|
|
|
|
|
|
|
|
|
|
Assuming
Dilution
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
Operations
|
$
3.54
|
|
|
$
3.13
|
|
|
$
8.15
|
|
|
$
1.95
|
|
|
Discontinued
Operations
|
$
0.00
|
|
|
$
(0.17)
|
|
|
$
(0.01)
|
|
|
$
(0.16)
|
|
|
TOTAL
|
$
3.55
|
|
|
$
2.96
|
|
|
$
8.14
|
|
|
$
1.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
Operations
|
$
3.59
|
|
|
$
3.17
|
|
|
$
8.25
|
|
|
$
1.97
|
|
|
Discontinued
Operations
|
$
0.00
|
|
|
$
(0.18)
|
|
|
$
(0.01)
|
|
|
$
(0.16)
|
|
|
TOTAL
|
$
3.59
|
|
|
$
2.99
|
|
|
$
8.23
|
|
|
$
1.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE
NUMBER OF COMMON
SHARES
OUTSTANDING (M's)
|
|
|
|
|
|
|
|
|
|
|
|
|
Assuming
Dilution
|
927.3
|
|
|
915.9
|
|
|
922.1
|
|
|
912.3
|
|
|
Basic
|
914.7
|
|
|
905.8
|
|
|
911.2
|
|
|
902.7
|
|
|
____________________
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes
a one-time, non-cash, pre-tax pension settlement charge of $5.9
billion ($4.4 billion net of tax).
|
|
INTERNATIONAL
BUSINESS MACHINES CORPORATION
CONDENSED
CONSOLIDATED BALANCE SHEET
(Unaudited)
|
|
|
|
(Dollars
in Millions)
|
|
At
December
31,
2023
|
|
At
December
31,
2022
|
|
ASSETS:
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and
cash equivalents
|
|
$
13,068
|
|
$
7,886
|
|
Restricted
cash
|
|
21
|
|
103
|
|
Marketable
securities
|
|
373
|
|
852
|
|
Notes and
accounts receivable - trade, net
|
|
7,214
|
|
6,541
|
|
Short-term
financing receivables, net
|
|
6,793
|
|
7,790
|
|
Other
accounts receivable, net
|
|
640
|
|
817
|
|
Inventories
|
|
1,161
|
|
1,552
|
|
Deferred
costs
|
|
998
|
|
967
|
|
Prepaid
expenses and other current assets
|
|
2,639
|
|
2,611
|
|
Total
Current Assets
|
|
32,908
|
|
29,118
|
|
|
|
|
|
|
|
Property,
plant and equipment, net
|
|
5,501
|
|
5,334
|
|
Operating
right-of-use assets, net
|
|
3,220
|
|
2,878
|
|
Long-term
financing receivables, net
|
|
5,766
|
|
5,806
|
|
Prepaid
pension assets
|
|
7,506
|
|
8,236
|
|
Deferred
costs
|
|
842
|
|
866
|
|
Deferred
taxes
|
|
6,656
|
|
6,256
|
|
Goodwill
|
|
60,178
|
|
55,949
|
|
Intangibles,
net
|
|
11,036
|
|
11,184
|
|
Investments
and sundry assets
|
|
1,626
|
|
1,617
|
|
Total
Assets
|
|
$
135,241
|
|
$
127,243
|
|
|
|
|
|
|
|
LIABILITIES:
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Taxes
|
|
$
2,270
|
|
$
2,196
|
|
Short-term
debt
|
|
6,426
|
|
4,760
|
|
Accounts
payable
|
|
4,132
|
|
4,051
|
|
Deferred
income
|
|
13,451
|
|
12,032
|
|
Operating
lease liabilities
|
|
820
|
|
874
|
|
Other
liabilities
|
|
7,022
|
|
7,592
|
|
Total
Current Liabilities
|
|
34,122
|
|
31,505
|
|
|
|
|
|
|
|
Long-term
debt
|
|
50,121
|
|
46,189
|
|
Retirement
related obligations
|
|
10,808
|
|
9,596
|
|
Deferred
income
|
|
3,533
|
|
3,499
|
|
Operating
lease liabilities
|
|
2,568
|
|
2,190
|
|
Other
liabilities
|
|
11,475
|
|
12,243
|
|
Total
Liabilities
|
|
112,628
|
|
105,222
|
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
|
IBM
Stockholders' Equity:
|
|
|
|
|
|
Common
stock
|
|
59,643
|
|
58,343
|
|
Retained
earnings
|
|
151,276
|
|
149,825
|
|
Treasury
stock — at cost
|
|
(169,624)
|
|
(169,484)
|
|
Accumulated
other comprehensive income/(loss)
|
|
(18,761)
|
|
(16,740)
|
|
Total
IBM Stockholders' Equity
|
|
22,533
|
|
21,944
|
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
80
|
|
77
|
|
Total
Equity
|
|
22,613
|
|
22,021
|
|
|
|
|
|
|
|
Total
Liabilities and Equity
|
|
$
135,241
|
|
$
127,243
|
|
INTERNATIONAL
BUSINESS MACHINES CORPORATION
CASH
FLOW ANALYSIS
(Unaudited)
|
|
|
|
|
|
Three
Months Ended
December
31,
|
|
Year
Ended
December
31,
|
|
|
(Dollars
in Millions)
|
|
2023
|
|
2022
|
|
2023
|
|
2022(1)
|
|
|
Net
Cash from Operations per GAAP
|
|
$
4,463
|
|
$
3,965
|
|
$
13,931
|
|
$
10,435
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
change in IBM Financing receivables
|
|
(1,887)
|
|
(1,788)
|
|
1,233
|
|
(717)
|
|
|
Capital
Expenditures, net
|
|
(263)
|
|
(544)
|
|
(1,488)
|
|
(1,860)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free
Cash Flow
|
|
6,087
|
|
5,209
|
|
11,210
|
|
9,291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions
|
|
(137)
|
|
(1,329)
|
|
(5,082)
|
|
(2,348)
|
|
|
Divestitures
|
|
—
|
|
1
|
|
(4)
|
|
1,272
|
|
|
Dividends
|
|
(1,518)
|
|
(1,494)
|
|
(6,040)
|
|
(5,948)
|
|
|
Non-Financing
Debt
|
|
(2,025)
|
|
(2,777)
|
|
5,547
|
|
1,909
|
|
|
Other
(includes IBM Financing net receivables and debt)
|
|
59
|
|
(498)
|
|
(1,009)
|
|
(2,893)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
in Cash, Cash Equivalents, Restricted Cash and
Short-term
Marketable
Securities
|
|
$
2,466
|
|
$
(888)
|
|
$
4,622
|
|
$
1,283
|
|
|
____________________
|
|
(1)
Includes immaterial cash flows from discontinued
operations.
|
|
INTERNATIONAL
BUSINESS MACHINES CORPORATION
CASH
FLOW
(Unaudited)
|
|
|
|
|
|
Three
Months Ended
December
31,
|
|
Year
Ended
December
31,
|
|
(Dollars
in Millions)
|
|
2023
|
|
2022
|
|
2023
|
|
2022(1)
|
|
Net
Income from Operations
|
|
$
3,288
|
|
$
2,711
|
|
$
7,502
|
|
$
1,639
|
|
Pension
Settlement Charge
|
|
-
|
|
-
|
|
-
|
|
5,894
|
|
Depreciation/Amortization
of Intangibles
|
|
1,152
|
|
1,137
|
|
4,395
|
|
4,802
|
|
Stock-based
Compensation
|
|
291
|
|
248
|
|
1,133
|
|
987
|
|
Operating
assets and liabilities / Other, net(2)
|
|
1,619
|
|
1,657
|
|
(332)
|
|
(2,170)
|
|
IBM
Financing A/R
|
|
(1,887)
|
|
(1,788)
|
|
1,233
|
|
(717)
|
|
Net
Cash Provided by Operating Activities
|
|
$
4,463
|
|
$
3,965
|
|
$
13,931
|
|
$
10,435
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures, net of payments & proceeds
|
|
(263)
|
|
(544)
|
|
(1,488)
|
|
(1,860)
|
|
Divestitures,
net of cash transferred
|
|
-
|
|
1
|
|
(4)
|
|
1,272
|
|
Acquisitions,
net of cash acquired
|
|
(137)
|
|
(1,329)
|
|
(5,082)
|
|
(2,348)
|
|
Marketable
Securities / Other Investments, net
|
|
3,236
|
|
553
|
|
(496)
|
|
(1,265)
|
|
Net
Cash Provided by/(Used in) Investing Activities
|
|
$
2,837
|
|
$
(1,318)
|
|
$
(7,070)
|
|
$
(4,202)
|
|
|
|
|
|
|
|
|
|
|
|
Debt, net
of payments & proceeds
|
|
(122)
|
|
(1,350)
|
|
4,497
|
|
1,221
|
|
Dividends
|
|
(1,518)
|
|
(1,494)
|
|
(6,040)
|
|
(5,948)
|
|
Financing -
Other
|
|
26
|
|
(8)
|
|
(226)
|
|
(231)
|
|
Net
Cash Provided by/(Used in) Financing Activities
|
|
$
(1,615)
|
|
$
(2,852)
|
|
$
(1,769)
|
|
$
(4,958)
|
|
|
|
|
|
|
|
|
|
|
|
Effect of
Exchange Rate changes on Cash
|
|
128
|
|
219
|
|
9
|
|
(244)
|
|
Net
Change in Cash, Cash Equivalents and Restricted
Cash
|
|
$
5,814
|
|
$
13
|
|
$
5,101
|
|
$
1,032
|
|
____________________
|
|
(1)
Includes
immaterial cash flows from discontinued
operations.
|
|
(2)
Full-year
2022 includes a $1.5 billion tax effect associated with the
one-time, non-cash, pension settlement charge.
|
|
INTERNATIONAL
BUSINESS MACHINES CORPORATION
GAAP
NET INCOME TO ADJUSTED EBITDA RECONCILIATION
(Unaudited)
|
|
|
|
|
|
Three
Months Ended
December
31,
|
|
Year
Ended
December
31,
|
|
(Dollars
in Billions)
|
|
2023
|
|
2022
|
|
Yr/Yr
|
|
2023
|
|
2022
|
|
Yr/Yr
|
|
Net
Income as reported (GAAP)
|
|
$
3.3
|
|
$
2.7
|
|
$
0.6
|
|
$
7.5
|
|
$
1.6
|
|
$
5.9
|
|
Less:
Income/(loss) from discontinued operations, net of tax
|
|
0.0
|
|
(0.2)
|
|
0.2
|
|
0.0
|
|
(0.1)
|
|
0.1
|
|
Income from
continuing operations
|
|
3.3
|
|
2.9
|
|
0.4
|
|
7.5
|
|
1.8
|
|
5.7
|
|
Provision
for/(Benefit from) income taxes from continuing ops.
|
|
0.5
|
|
0.4
|
|
0.0
|
|
1.2
|
|
(0.6)
|
|
1.8
|
|
Pre-tax
income from continuing operations (GAAP)
|
|
3.8
|
|
3.3
|
|
0.4
|
|
8.7
|
|
1.2
|
|
7.5
|
|
Non-operating
adjustments (before tax)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
charges(1)
|
|
0.4
|
|
0.4
|
|
0.0
|
|
1.7
|
|
1.8
|
|
(0.1)
|
|
Non-operating
retirement-related costs/(income)(2)
|
|
0.0
|
|
0.1
|
|
(0.1)
|
|
0.0
|
|
6.5
|
|
(6.6)
|
|
Kyndryl-related
impacts
|
|
—
|
|
0.0
|
|
0.0
|
|
—
|
|
0.4
|
|
(0.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
(non-GAAP) pre-tax income from continuing ops.
|
|
4.2
|
|
3.8
|
|
0.3
|
|
10.3
|
|
9.8
|
|
0.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest expense
|
|
0.3
|
|
0.2
|
|
0.0
|
|
0.9
|
|
1.1
|
|
(0.1)
|
|
Depreciation/Amortization
of non-acquired intangible assets
|
|
0.7
|
|
0.7
|
|
0.0
|
|
2.8
|
|
3.1
|
|
(0.3)
|
|
Stock-based
compensation
|
|
0.3
|
|
0.2
|
|
0.0
|
|
1.1
|
|
1.0
|
|
0.1
|
|
Workforce
rebalancing charges
|
|
0.0
|
|
0.0
|
|
0.0
|
|
0.4
|
|
0.0
|
|
0.4
|
|
Corporate
(gains) and charges(3)
|
|
0.0
|
|
0.0
|
|
0.0
|
|
(0.1)
|
|
(0.3)
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
5.5
|
|
$
5.0
|
|
$
0.4
|
|
$
15.5
|
|
$
14.6
|
|
$
0.9
|
|
____________________
|
|
(1)
Primarily
consists of amortization of acquired intangible
assets.
|
|
(2)
Full-year
2022 includes a one-time, non-cash, pre-tax pension settlement
charge of $5.9 billion.
|
|
(3)
Corporate
(gains) and charges primarily consists of unique corporate actions
such as gains on divestitures.
|
|
INTERNATIONAL
BUSINESS MACHINES CORPORATION
SEGMENT
DATA
(Unaudited)
|
|
|
|
|
|
Three
Months Ended December 31, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars
in Millions)
|
|
Software
|
|
|
Consulting
|
|
|
Infrastructure
|
|
|
Financing
|
|
|
Revenue
|
|
$
7,514
|
|
|
$
5,048
|
|
|
$
4,604
|
|
|
$
175
|
|
|
Pre-tax
Income from Continuing Operations(1)
|
|
$
2,417
|
|
|
$
582
|
|
|
$
1,185
|
|
|
$
117
|
|
|
Pre-tax
Margin(1)
|
|
32.2
|
%
|
|
11.5
|
%
|
|
25.7
|
%
|
|
67.3
|
%
|
|
Change
YTY Revenue
|
|
3.1
|
%
|
|
5.8
|
%
|
|
2.7
|
%
|
|
1.8
|
%
|
|
Change
YTY Revenue - Constant Currency
|
|
2.0
|
%
|
|
5.5
|
%
|
|
2.0
|
%
|
|
0.3
|
%
|
|
|
|
|
|
Three
Months Ended December 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars
in Millions)
|
|
Software
|
|
|
Consulting
|
|
|
Infrastructure
|
|
|
Financing
|
|
|
Revenue
|
|
$
7,288
|
|
|
$
4,770
|
|
|
$
4,483
|
|
|
$
172
|
|
|
Pre-tax
Income from Continuing Operations
|
|
$
2,347
|
|
|
$
523
|
|
|
$
1,026
|
|
|
$
75
|
|
|
Pre-tax
Margin
|
|
32.2
|
%
|
|
11.0
|
%
|
|
22.9
|
%
|
|
43.6
|
%
|
|
____________________
|
|
(1) The
fourth-quarter 2023 pre-tax charge of approximately $0.03 billion
for workforce rebalancing is
not included in the measure of
segment
pre-tax income, consistent with the company's management
system.
|
|
|
|
|
|
|
|
|
|
Year
Ended December 31, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars
in Millions)
|
|
Software
|
|
|
Consulting
|
|
|
Infrastructure
|
|
|
Financing
|
|
|
Revenue
|
|
$
26,308
|
|
|
$
19,985
|
|
|
$
14,593
|
|
|
$
741
|
|
|
Pre-tax
Income from Continuing Operations(1)
|
|
$
6,571
|
|
|
$
1,918
|
|
|
$
2,421
|
|
|
$
374
|
|
|
Pre-tax
Margin(1)
|
|
25.0
|
%
|
|
9.6
|
%
|
|
16.6
|
%
|
|
50.5
|
%
|
|
Change
YTY Revenue
|
|
5.1
|
%
|
|
4.6
|
%
|
|
(4.5)
|
%
|
|
14.8
|
%
|
|
Change
YTY Revenue - Constant Currency
|
|
5.2
|
%
|
|
6.1
|
%
|
|
(3.9)
|
%
|
|
15.0
|
%
|
|
|
|
|
|
Year
Ended December 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars
in Millions)
|
|
Software
|
|
|
Consulting
|
|
|
Infrastructure
|
|
|
Financing
|
|
|
Revenue
|
|
$
25,037
|
|
|
$
19,107
|
|
|
$
15,288
|
|
|
$
645
|
|
|
Pre-tax
Income from Continuing Operations
|
|
$
6,162
|
|
|
$
1,677
|
|
|
$
2,262
|
|
|
$
340
|
|
|
Pre-tax
Margin
|
|
24.6
|
%
|
|
8.8
|
%
|
|
14.8
|
%
|
|
52.6
|
%
|
|
____________________
|
|
(1) The
full-year 2023 pre-tax charge of approximately $0.4 billion for
workforce rebalancing is
not included in the measure of segment
pre-tax
income, consistent with the company's management
system.
|
|
INTERNATIONAL
BUSINESS MACHINES CORPORATION
U.S.
GAAP TO OPERATING (Non-GAAP) RESULTS
RECONCILIATION
(Unaudited;
Dollars in millions except per share amounts)
|
|
|
|
|
Three
Months Ended December 31, 2023
|
|
|
|
Continuing
Operations
|
|
|
|
GAAP
|
|
|
Acquisition-
Related
Adjustments
(1)
|
|
|
Retirement-
Related
Adjustments
(2)
|
|
|
Tax
Reform
Impacts
|
|
|
Kyndryl-
Related
Impacts
|
|
|
Operating
(Non-
GAAP)
|
|
|
Gross
Profit
|
$
10,267
|
|
|
$
172
|
|
|
$
—
|
|
|
$
—
|
|
|
$
—
|
|
|
$
10,439
|
|
|
Gross
Profit Margin
|
59.1
|
%
|
|
1.0
|
pts.
|
|
—
|
pts.
|
|
—
|
pts.
|
|
—
|
pts.
|
|
60.1
|
%
|
|
S,G&A
|
$
4,791
|
|
|
$
(271)
|
|
|
$
—
|
|
|
$
—
|
|
|
$
—
|
|
|
$
4,520
|
|
|
Other
(Income) & Expense
|
(193)
|
|
|
12
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|
(159)
|
|
|
Total
Expense & Other
(Income)
|
6,509
|
|
|
(259)
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|
6,272
|
|
|
Pre-tax
Income from
Continuing
Operations
|
3,759
|
|
|
431
|
|
|
(22)
|
|
|
—
|
|
|
—
|
|
|
4,167
|
|
|
Pre-tax
Income Margin from
Continuing
Operations
|
21.6
|
%
|
|
2.5
|
pts.
|
|
(0.1)
|
pts.
|
|
—
|
pts.
|
|
—
|
pts.
|
|
24.0
|
%
|
|
Provision
for/(Benefit from)
Income
Taxes
(4)
|
$
474
|
|
|
$
91
|
|
|
$
19
|
|
|
$
(4)
|
|
|
$
—
|
|
|
$
580
|
|
|
Effective
Tax Rate
|
12.6
|
%
|
|
0.9
|
pts.
|
|
0.5
|
pts.
|
|
(0.1)
|
pts.
|
|
—
|
pts.
|
|
13.9
|
%
|
|
Income from
Continuing
Operations
|
$
3,285
|
|
|
$
339
|
|
|
$
(41)
|
|
|
$
4
|
|
|
$
—
|
|
|
$
3,587
|
|
|
Income
Margin from
Continuing
Operations
|
18.9
|
%
|
|
2.0
|
pts.
|
|
(0.2)
|
pts.
|
|
0.0
|
pts.
|
|
—
|
pts.
|
|
20.6
|
%
|
|
Diluted
Earnings Per Share:
Continuing
Operations
|
$
3.54
|
|
|
$
0.37
|
|
|
$
(0.04)
|
|
|
$
0.00
|
|
|
$
—
|
|
|
$
3.87
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended December 31, 2022
|
|
|
|
Continuing
Operations
|
|
|
|
GAAP
|
|
|
Acquisition-
Related
Adjustments
(1)
|
|
|
Retirement-
Related
Adjustments
(2)
|
|
|
Tax
Reform
Impacts
|
|
|
Kyndryl-
Related
Impacts
(3)
|
|
|
Operating
(Non-
GAAP)
|
|
|
Gross
Profit
|
$
9,632
|
|
|
$
156
|
|
|
$
—
|
|
|
$
—
|
|
|
$
—
|
|
|
$
9,788
|
|
|
Gross
Profit Margin
|
57.7
|
%
|
|
0.9
|
pts.
|
|
—
|
pts.
|
|
—
|
pts.
|
|
—
|
pts.
|
|
58.6
|
%
|
|
S,G&A
|
$
4,765
|
|
|
$
(262)
|
|
|
$
—
|
|
|
$
—
|
|
|
$
0
|
|
|
$
4,503
|
|
|
Other
(Income) & Expense
|
(118)
|
|
|
(1)
|
|
|
(93)
|
|
|
—
|
|
|
2
|
|
|
(210)
|
|
|
Total
Expense & Other (Income)
|
6,320
|
|
|
(263)
|
|
|
(93)
|
|
|
—
|
|
|
2
|
|
|
5,965
|
|
|
Pre-tax
Income from Continuing
Operations
|
3,312
|
|
|
419
|
|
|
93
|
|
|
—
|
|
|
(2)
|
|
|
3,823
|
|
|
Pre-tax
Income Margin from
Continuing
Operations
|
19.8
|
%
|
|
2.5
|
pts.
|
|
0.6
|
pts.
|
|
—
|
pts.
|
|
0.0
|
pts.
|
|
22.9
|
%
|
|
Provision
for/(Benefit from)
Income
Taxes
(4)
|
$
443
|
|
|
$
109
|
|
|
$
16
|
|
|
$
(42)
|
|
|
$
—
|
|
|
$
526
|
|
|
Effective
Tax Rate
|
13.4
|
%
|
|
1.4
|
pts.
|
|
0.1
|
pts.
|
|
(1.1)
|
pts.
|
|
0.0
|
pts.
|
|
13.8
|
%
|
|
Income from
Continuing
Operations
|
$
2,869
|
|
|
$
310
|
|
|
$
77
|
|
|
$
42
|
|
|
$
(2)
|
|
|
$
3,296
|
|
|
Income
Margin from Continuing
Operations
|
17.2
|
%
|
|
1.9
|
pts.
|
|
0.5
|
pts.
|
|
0.3
|
pts.
|
|
0.0
|
pts.
|
|
19.8
|
%
|
|
Diluted
Earnings Per Share:
Continuing
Operations
|
$
3.13
|
|
|
$
0.34
|
|
|
$
0.08
|
|
|
$
0.05
|
|
|
$
0.00
|
|
|
$
3.60
|
|
|
____________________
|
|
(1)
Includes
amortization of purchased intangible assets, in process R&D,
transaction costs, applicable restructuring and related expenses,
tax
charges
related to acquisition integration and pre-closing charges, such as
financing costs. 2023 also includes a gain of $12 million on
foreign
exchange
call option contracts related to the company's planned acquisition
of StreamSets and webMethods from
Software AG.
|
|
(2)
Includes
amortization of prior service costs, interest cost, expected return
on plan assets, amortized actuarial gains/losses, the impacts of
any plan
curtailments/settlements
and pension insolvency costs and other costs.
|
|
(3)
Primarily
relates to fair value changes in shares of Kyndryl common
stock that were retained by IBM and the related cash-settled
swap.
|
|
(4)
Tax impact
on operating (non-GAAP) pre-tax income from continuing operations
is calculated under the same accounting principles applied to
the
As Reported
pre-tax income under ASC 740,
which employs an annual effective tax rate method to the
results.
|
|
INTERNATIONAL
BUSINESS MACHINES CORPORATION
U.S.
GAAP TO OPERATING (Non-GAAP) RESULTS
RECONCILIATION
(Unaudited;
Dollars in millions except per share amounts)
|
|
|
|
|
Year
Ended December 31, 2023
|
|
|
|
Continuing
Operations
|
|
|
|
GAAP
|
|
|
Acquisition-
Related
Adjustments
(1)
|
|
|
Retirement-
Related
Adjustments
(2)
|
|
|
Tax
Reform
Impacts
|
|
|
Kyndryl-
Related
Impacts
|
|
|
Operating
(Non-
GAAP)
|
|
|
Gross
Profit
|
$
34,300
|
|
|
$
631
|
|
|
$
—
|
|
|
$
—
|
|
|
$
—
|
|
|
$
34,931
|
|
|
Gross
Profit Margin
|
55.4
|
%
|
|
1.0
|
pts.
|
|
—
|
pts.
|
|
—
|
pts.
|
|
—
|
pts.
|
|
56.5
|
%
|
|
S,G&A
|
$
19,003
|
|
|
$
(1,039)
|
|
|
$
—
|
|
|
$
—
|
|
|
$
—
|
|
|
$
17,964
|
|
|
Other
(Income) & Expense
|
(914)
|
|
|
10
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
(866)
|
|
|
Total
Expense & Other
(Income)
|
25,610
|
|
|
(1,029)
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
24,620
|
|
|
Pre-tax
Income from
Continuing
Operations
|
8,690
|
|
|
1,660
|
|
|
(39)
|
|
|
—
|
|
|
—
|
|
|
10,311
|
|
|
Pre-tax
Income Margin from
Continuing
Operations
|
14.0
|
%
|
|
2.7
|
pts.
|
|
(0.1)
|
pts.
|
|
—
|
pts.
|
|
—
|
pts.
|
|
16.7
|
%
|
|
Provision
for/(Benefit from)
Income
Taxes
(4)
|
$
1,176
|
|
|
$
368
|
|
|
$
(8)
|
|
|
$
(95)
|
|
|
$
—
|
|
|
$
1,441
|
|
|
Effective
Tax Rate
|
13.5
|
%
|
|
1.4
|
pts.
|
|
0.0
|
pts.
|
|
(0.9)
|
pts.
|
|
—
|
pts.
|
|
14.0
|
%
|
|
Income from
Continuing
Operations
|
$
7,514
|
|
|
$
1,292
|
|
|
$
(30)
|
|
|
$
95
|
|
|
$
—
|
|
|
$
8,870
|
|
|
Income
Margin from
Continuing
Operations
|
12.1
|
%
|
|
2.1
|
pts.
|
|
0.0
|
pts.
|
|
0.2
|
pts.
|
|
—
|
pts.
|
|
14.3
|
%
|
|
Diluted
Earnings Per Share:
Continuing
Operations
|
$
8.15
|
|
|
$
1.40
|
|
|
$
(0.03)
|
|
|
$
0.10
|
|
|
$
—
|
|
|
$
9.62
|
|
|
|
|
|
|
|
Year
Ended December 31, 2022
|
|
|
|
Continuing
Operations
|
|
|
|
GAAP
|
|
|
Acquisition-
Related
Adjustments
(1)
|
|
|
Retirement-
Related
Adjustments
(2)
|
|
|
Tax
Reform
Impacts
|
|
|
Kyndryl-
Related
Impacts
(3)
|
|
|
Operating
(Non-
GAAP)
|
|
|
Gross
Profit
|
$
32,687
|
|
|
$
682
|
|
|
$
—
|
|
|
$
—
|
|
|
$
—
|
|
|
$
33,370
|
|
|
Gross
Profit Margin
|
54.0
|
%
|
|
1.1
|
pts.
|
|
—
|
pts.
|
|
—
|
pts.
|
|
—
|
pts.
|
|
55.1
|
%
|
|
S,G&A
|
$
18,609
|
|
|
$
(1,080)
|
|
|
$
—
|
|
|
$
—
|
|
|
$
0
|
|
|
$
17,529
|
|
|
Other
(Income) & Expense
|
5,803
|
|
|
(3)
|
|
|
(6,548)
|
|
|
—
|
|
|
(351)
|
|
|
(1,099)
|
|
|
Total
Expense & Other (Income)
|
31,531
|
|
|
(1,083)
|
|
|
(6,548)
|
|
|
—
|
|
|
(351)
|
|
|
23,549
|
|
|
Pre-tax
Income from Continuing
Operations
|
1,156
|
|
|
1,765
|
|
|
6,548
|
|
|
—
|
|
|
351
|
|
|
9,821
|
|
|
Pre-tax
Income Margin from
Continuing
Operations
|
1.9
|
%
|
|
2.9
|
pts.
|
|
10.8
|
pts.
|
|
—
|
pts.
|
|
0.6
|
pts.
|
|
16.2
|
%
|
|
Provision
for/(Benefit from)
Income
Taxes
(4)
|
$
(626)
|
|
|
$
436
|
|
|
$
1,615
|
|
|
$
70
|
|
|
$
—
|
|
|
$
1,495
|
|
|
Effective
Tax Rate
|
(54.2)
|
%
|
|
14.2
|
pts.
|
|
52.6
|
pts.
|
|
0.7
|
pts.
|
|
1.9
|
pts.
|
|
15.2
|
%
|
|
Income from
Continuing
Operations
|
$
1,783
|
|
|
$
1,329
|
|
|
$
4,933
|
|
|
$
(70)
|
|
|
$
351
|
|
|
$
8,326
|
|
|
Income
Margin from Continuing
Operations
|
2.9
|
%
|
|
2.2
|
pts.
|
|
8.1
|
pts.
|
|
(0.1)
|
pts.
|
|
0.6
|
pts.
|
|
13.8
|
%
|
|
Diluted
Earnings Per Share:
Continuing
Operations
|
$
1.95
|
|
|
$
1.46
|
|
|
$
5.41
|
|
|
$
(0.08)
|
|
|
$
0.38
|
|
|
$
9.13
|
|
|
____________________
|
|
(1)
Includes
amortization of purchased intangible assets, in process R&D,
transaction costs, applicable restructuring and related expenses,
tax
charges
related to acquisition integration and pre-closing charges, such as
financing costs. 2023 also includes a gain of $12 million on
foreign
exchange
call option contracts related to the company's planned acquisition
of StreamSets and webMethods from
Software AG.
|
|
(2)
Includes
amortization of prior service costs, interest cost, expected return
on plan assets, amortized actuarial gains/losses, the impacts of
any plan
curtailments/settlements
and pension insolvency costs and other costs. 2022 also includes a
one-time, non-cash, pre-tax pension settlement
charge of
$5.9 billion ($4.4 billion net of tax).
|
|
(3)
Primarily
relates to fair value changes in shares of Kyndryl common
stock that were retained by IBM and the related cash-settled
swap.
|
|
(4)
Tax impact
on operating (non-GAAP) pre-tax income from continuing operations
is calculated under the same accounting principles applied to
the
As Reported
pre-tax income under ASC 740,
which employs an annual effective tax rate method to the
results.
|
|
INTERNATIONAL
BUSINESS MACHINES CORPORATION
GAAP
OPERATING CASH FLOW TO ADJUSTED EBITDA
RECONCILIATION
(Unaudited)
|
|
|
|
|
|
Three
Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
(Dollars
in Billions)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Net
Cash Provided by Operating Activities
|
|
$
4.5
|
|
$
4.0
|
|
$
13.9
|
|
$
10.4
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
Net
interest expense
|
|
0.3
|
|
0.2
|
|
0.9
|
|
1.1
|
|
Provision
for / (Benefit from) income taxes from continuing
operations(1)
|
|
0.5
|
|
0.4
|
|
1.2
|
|
(0.6)
|
|
|
|
|
|
|
|
|
|
|
|
Less change
in:
|
|
|
|
|
|
|
|
|
|
Financing
receivables
|
|
(1.9)
|
|
(1.8)
|
|
1.2
|
|
(0.7)
|
|
Other
assets and liabilities / Other, net(1)(2)
|
|
1.6
|
|
1.4
|
|
(0.7)
|
|
(3.1)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
5.5
|
|
$
5.0
|
|
$
15.5
|
|
$
14.6
|
|
__________
|
|
(1)
Full-year
2022 includes a $1.5 billion tax effect associated with the
one-time, non-cash pension settlement charge.
|
|
(2)
Other
assets and liabilities / Other, net mainly consists of Operating
assets and liabilities / Other, net in the Cash flow chart,
workforce
rebalancing charges,
non-operating impacts and corporate (gains) and
charges.
|
SOURCE
IBM