REG-Intnl Bus. Mach IBM Reports 2016 Fourth-Quarter and Full-Year Results <Origin Href="QuoteRef">IBM.N</Origin> - Part 2
20/01/2017 07:25
- Part 2: For the preceding part double click ID:nBw8Yptbqa
0.08 $ 5.01
FOURTH - QUARTER 2015
CONTINUING OPERATIONS
Acquisition- Retirement-
Related Related Operating
GAAP Adjustments* Adjustments** (Non-GAAP)
Gross Profit $ 11,407 $ 105 $ 119 $ 11,630
Gross Profit Margin 51.7 % 0.5Pts 0.5Pts 52.7 %
S,G&A 5,157 (95 ) (88 ) 4,975
R,D&E 1,362 - - (12 ) 1,350
Other (Income) & Expense (146 ) 0 - - (146 )
Total Expense & Other (Income) 6,308 (95 ) (100 ) 6,114
Pre-tax Income from Continuing Operations 5,098 199 218 5,516
Pre-tax Income Margin from Continuing Operations 23.1 % 0.9Pts 1.0Pts 25.0 %
Provision for Income Taxes*** 638 89 82 809
Effective Tax Rate 12.5 % 1.2Pts 1.0Pts 14.7 %
Income from Continuing Operations 4,460 110 137 4,707
Income Margin from Continuing Operations 20.2 % 0.5Pts 0.6Pts 21.3 %
Diluted Earnings Per Share: Continuing Operations $ 4.59 $ 0.11 $ 0.14 $ 4.84
* Includes amortization of purchased intangible assets, in process R&D,
severance cost for acquired employees, vacant space for acquired companies,
deal costs and acquisition integration tax charges.
** Includes retirement-related interest cost, expected return on plan assets,
recognized actuarial losses or gains, amortization of transition assets, other
settlements, curtailments, multi-employer plans and insolvency insurance.
*** 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)
TWELVE - MONTHS 2016
CONTINUING OPERATIONS
Acquisition- Retirement-
Related Related Operating
GAAP Adjustments* Adjustments** (Non-GAAP)
Gross Profit $ 38,294 $ 494 $ 316 $ 39,104
Gross Profit Margin 47.9 % 0.6Pts 0.4Pts 48.9 %
S,G&A 21,069 (501 ) (253 ) 20,315
R,D&E 5,751 - - (29 ) 5,722
Other (Income) & Expense 145 (7 ) - - 138
Total Expense & Other (Income) 25,964 (508 ) (282 ) 25,174
Pre-tax Income from Continuing Operations 12,330 1,003 598 13,931
Pre-tax Income Margin from Continuing Operations 15.4 % 1.3Pts 0.7Pts 17.4 %
Provision for / (Benefit) from Income Taxes*** 449 268 183 900
Effective Tax Rate 3.6 % 1.7Pts 1.2Pts 6.5 %
Income from Continuing Operations 11,881 735 415 13,031
Income Margin from Continuing Operations 14.9 % 0.9Pts 0.5Pts 16.3 %
Diluted Earnings Per Share: Continuing Operations $ 12.39 $ 0.77 $ 0.43 $ 13.59
TWELVE - MONTHS 2015
CONTINUING OPERATIONS
Acquisition- Retirement-
Related Related Operating
GAAP Adjustments* Adjustments** (Non-GAAP)
Gross Profit $ 40,684 $ 373 $ 469 $ 41,526
Gross Profit Margin 49.8 % 0.5Pts 0.6Pts 50.8 %
S,G&A 20,430 (324 ) (533 ) 19,573
R,D&E 5,247 - - (48 ) 5,200
Other (Income) & Expense (724 ) (5 ) - - (729 )
Total Expense & Other (Income) 24,740 (330 ) (581 ) 23,830
Pre-Tax Income from Continuing Operations 15,945 703 1,050 17,697
Pre-tax Income Margin from Continuing Operations 19.5 % 0.9Pts 1.3Pts 21.6 %
Provision for Income Taxes*** 2,581 141 316 3,037
Effective Tax Rate 16.2 % 0.2Pts 0.9Pts 17.2 %
Income from Continuing Operations 13,364 562 734 14,659
Income Margin from Continuing Operations 16.3 % 0.7Pts 0.9Pts 17.9 %
Diluted Earnings Per Share: Continuing Operations $ 13.60 $ 0.57 $ 0.75 $ 14.92
* Includes amortization of purchased intangible assets, in process R&D,
severance cost for acquired employees, vacant space for acquired companies,
deal costs and acquisition integration tax charges.
** Includes retirement-related interest cost, expected return on plan assets,
recognized actuarial losses or gains, amortization of transition assets, other
settlements, curtailments, multi-employer plans and insolvency insurance.
*** 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
RECONCILIATION OF OPERATING EARNINGS PER SHARE
(Unaudited)
2017
EPS Guidance Expectations
IBM GAAP EPS at least $11.95
IBM Operating EPS (non-GAAP) at least $13.80
Adjustments
Acquisition related charges * $0.75
Non-Operating Retirement-Related Items $1.10
* Includes acquisitions through December 31, 2016
IBM Ian Colley, 914-434-3043 colley@us.ibm.com (mailto:colley@us.ibm.com) or
John Bukovinsky, 732-618-3531 jbuko@us.ibm.com (mailto:jbuko@us.ibm.com)
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