REG-Intnl Bus. Mach IBM Reports 2017 Fourth-Quarter and Full-Year Results <Origin Href="QuoteRef">IBM.N</Origin> - Part 2
19/01/2018 07:05
- Part 2: For the preceding part double click ID:nBw3xR7Hla
S,G&A 5,147 (116 ) (145 ) - 4,886
R,D&E 1,427 - (50 ) - 1,378
Other (Income) & Expense 2 (32 ) - - (30 )
Total Expense & Other (Income) 6,393 (148 ) (195 ) - 6,050
Pre-tax Income from Continuing Operations 4,469 247 404 - 5,120
Pre-tax Income Margin from Continuing Operations 19.8 % 1.1Pts 1.8Pts - 22.7 %
Provision for Income Taxes*** 5,522 67 197 (5,475 ) 310
Effective Tax Rate 123.6 % -4.7Pts -5.9Pts -106.9Pts 6.1 %
Income / (Loss) from Continuing Operations (1,053 ) 181 206 5,475 4,809
Income / (Loss) Margin from Continuing Operations (4.7 )% 0.8Pts 0.9Pts 24.3Pts 21.3 %
Diluted Earnings / (Loss) Per Share: Continuing Operations ($1.14 ) $ 0.19 $ 0.22 $ 5.91 $ 5.18
(1) Operating (non-GAAP) earnings excludes a one-time charge of $5.5 billion
associated with the enactment of U.S. tax reform due to its unique
non-recurring nature.
FOURTH - QUARTER 2016
CONTINUING OPERATIONS
Acquisition- Retirement-
Related Related Operating
GAAP Adjustments* Adjustments** (Non-GAAP)
Gross Profit $ 10,893 $ 124 $ 78 $ 11,095
Gross Profit Margin 50.0 % 0.6Pts 0.4Pts 51.0 %
S,G&A 4,976 (136 ) (69 ) 4,771
R,D&E 1,431 - (6 ) 1,425
Other (Income) & Expense (136 ) 0 - (136 )
Total Expense & Other (Income) 5,907 (136 ) (76 ) 5,696
Pre-tax Income from Continuing Operations 4,986 260 154 5,399
Pre-tax Income Margin from Continuing Operations 22.9 % 1.2Pts 0.7Pts 24.8 %
Provision for Income Taxes*** 480 66 77 623
Effective Tax Rate 9.6 % 0.8Pts 1.1Pts 11.5 %
Income from Continuing Operations 4,505 193 77 4,776
Income Margin from Continuing Operations 20.7 % 0.9Pts 0.4Pts 21.9 %
Diluted Earnings Per Share: Continuing Operations $ 4.73 $ 0.20 $ 0.08 $ 5.01
* 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 2017
CONTINUING OPERATIONS
Acquisition- Retirement- Tax Reform
Related Related One-Time Operating
GAAP Adjustments* Adjustments** Charge (1) (Non-GAAP)
Gross Profit $ 36,227 $ 449 $ 799 - $ 37,475
Gross Profit Margin 45.8 % 0.6Pts 1.0Pts - 47.4 %
S,G&A 20,107 (509 ) (472 ) - 19,126
R,D&E 5,787 - (197 ) - 5,590
Other (Income) & Expense (216 ) (39 ) - - (255 )
Total Expense & Other (Income) 24,827 (548 ) (669 ) - 23,609
Pre-tax Income from Continuing Operations 11,400 997 1,468 - 13,866
Pre-tax Income Margin from Continuing Operations 14.4 % 1.3Pts 1.9Pts - 17.5 %
Provision for Income Taxes*** 5,642 279 485 (5,475 ) 931
Effective Tax Rate 49.5 % -1.5Pts -1.7Pts -39.5Pts 6.7 %
Income from Continuing Operations 5,758 718 983 5,475 12,935
Income Margin from Continuing Operations 7.3 % 0.9Pts 1.2Pts 6.9Pts 16.3 %
Diluted Earnings Per Share: Continuing Operations $ 6.14 $ 0.77 $ 1.05 $ 5.84 $ 13.80
(1) Operating (non-GAAP) earnings excludes a one-time charge of $5.5 billion
associated with the enactment of U.S. tax reform due to its unique
non-recurring nature.
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 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
* 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.
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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