IBM Balance Sheet for Period Ending 31 December 2018 2019 2020 2021

Million USD Million USD Million USD Million USD

Total Assets 123,382 152,186 155,971 132,001

Current Assets:
Cash & Equivalents 11,379 8,173 13,188 6,651
Short Term Investments 620 696 600 600
Total Receivables, Net 30,563 24,219 17,370 15,407
Total Inventory 1,682 1,619 1,812 1,649
Prepaid Expenses 1,993 1,677 1,713 3,036
Other Current Assets, Total 2,909 2,037 4,482 2,197
Total Current Assets 49,146 38,421 39,165 29,540
Long Term Assets:
Property/Plant/Equipment, Total - Gross 32,460 37,023 23,667 23,307
Accumulated Depreciation, Total (21,668) (22,018) (13,896) (14,391)
Goodwill, Net 36,265 58,222 53,765 55,643
Intangibles, Net 3,087 15,235 13,739 12,511
Long Term Investments 573 222 216 206
Note Receivable - Long Term 9,507 8,988 7,509 5,606
Other Long Term Assets, Total 14,012 16,093 31,806 19,579
Long Term Assets 74,236 113,765 116,806 102,461
Total Liabilities 106,587 131,345 135,373 113,100
Current Liabilities:
Accounts Payable 6,558 4,896 4,033 3,955
Accrued Expenses 7,073 9,143 9,722 8,070
Notes Payable/Short Term Debt 3,156 1,275 130 22
Current Port. of LT Debt/Capital Leases 7,051 7,522 6,986 6,765
Other Current liabilities, Total 14,389 14,865 18,998 14,807
Total Current Liabilities 38,227 37,701 39,869 33,619
Long Term Liabilities:
Long Term Debt 35,605 53,951 54,157 44,854
Capital Lease Obligations - 151 60 63
Deferred Income Tax 3,696 5,230 4,958 3,956
Minority Interest 134 144 129 95
Other Liabilities, Total 28,925 34,168 36,200 30,513
Total Long term Liabilities 68,360 93,644 95,504 79,481
Equity:
Common Stock, Total 447 448 449 450
Additional Paid-In Capital 54,704 55,447 56,107 56,869
Retained Earnings (Accumulated Deficit) 159,206 162,954 162,717 154,208
Treasury Stock - Common (168,071) (169,413) (169,339) (169,392)
Other Equity, Total (29,491) (28,595) (29,336) (23,234)
Total Equity 16,795 20,841 20,598 18,901
Total Liabilities & Shareholders' Equity 123,382 152,186 155,971 132,001
Total Common Shares Outstanding 892 887 893 898
Total Preferred Shares Outstanding - - - -
Market Capitalization 101,440 118,900 112,160 119,860
Common Stock Price ($) 114 134 126 133
 IBM Balance Sheet for Period Ending 31 December 2018 2019 2020 2021
Million USD % Million USD % Million USD % Million USD %

Total Assets 123,382 100.00% 152,186 100.00% 155,971 100.00% 132,001 100.00%
Current Assets:
Cash & Equivalents 11,379 9.22% 8,173 5.37% 13,188 8.46% 6,651 5.04%
Short Term Investments 620 0.50% 696 0.46% 600 0.38% 600 0.45%
Total Receivables, Net 30,563 24.77% 24,219 15.91% 17,370 11.14% 15,407 11.67%
Total Inventory 1,682 1.36% 1,619 1.06% 1,812 1.16% 1,649 1.25%
Prepaid Expenses 1,993 1.62% 1,677 1.10% 1,713 1.10% 3,036 2.30%
Other Current Assets, Total 2,909 2.36% 2,037 1.34% 4,482 2.87% 2,197 1.66%
Total Current Assets 49,146 39.83% 38,421 25.25% 39,165 25.11% 29,540 22.38%
Long Term Assets:
Property/Plant/Equipment, Total - Gross 32,460 26.31% 37,023 24.33% 23,667 15.17% 23,307 17.66%
Accumulated Depreciation, Total (21,668) -17.56% (22,018) -14.47% (13,896) -8.91% (14,391) -10.90%
Goodwill, Net 36,265 29.39% 58,222 38.26% 53,765 34.47% 55,643 42.15%
Intangibles, Net 3,087 2.50% 15,235 10.01% 13,739 8.81% 12,511 9.48%
Long Term Investments 573 0.46% 222 0.15% 216 0.14% 206 0.16%
Note Receivable - Long Term 9,507 7.71% 8,988 5.91% 7,509 4.81% 5,606 4.25%
Other Long Term Assets, Total 14,012 11.36% 16,093 10.57% 31,806 20.39% 19,579 14.83%
Long Term Assets 74,236 60.17% 113,765 74.75% 116,806 74.89% 102,461 77.62%
Total Liabilities 106,587 86.39% 131,345 86.31% 135,373 86.79% 113,100 85.68%
Current Liabilities:
Accounts Payable 6,558 5.32% 4,896 3.22% 4,033 2.59% 3,955 3.00%
Accrued Expenses 7,073 5.73% 9,143 6.01% 9,722 6.23% 8,070 6.11%
Notes Payable/Short Term Debt 3,156 2.56% 1,275 0.84% 130 0.08% 22 0.02%
Current Port. of LT Debt/Capital Leases 7,051 5.71% 7,522 4.94% 6,986 4.48% 6,765 5.12%
Other Current liabilities, Total 14,389 11.66% 14,865 9.77% 18,998 12.18% 14,807 11.22%
Total Current Liabilities 38,227 30.98% 37,701 24.77% 39,869 25.56% 33,619 25.47%
Long Term Liabilities:
Long Term Debt 35,605 28.86% 53,951 35.45% 54,157 34.72% 44,854 33.98%
Capital Lease Obligations - 0.00% 151 0.10% 60 0.04% 63 0.05%
Deferred Income Tax 3,696 3.00% 5,230 3.44% 4,958 3.18% 3,956 3.00%
Minority Interest 134 0.11% 144 0.09% 129 0.08% 95 0.07%
Other Liabilities, Total 28,925 23.44% 34,168 22.45% 36,200 23.21% 30,513 23.12%
Total Long term Liabilities 68,360 55.41% 93,644 61.53% 95,504 61.23% 79,481 60.21%
Equity:
Common Stock, Total 447 0.36% 448 0.29% 449 0.29% 450 0.34%
Additional Paid-In Capital 54,704 44.34% 55,447 36.43% 56,107 35.97% 56,869 43.08%
Retained Earnings (Accumulated Deficit) 159,206 129.04% 162,954 107.08% 162,717 104.33% 154,208 116.82%
Treasury Stock - Common (168,071) -136.22% (169,413) -111.32% (169,339) -108.57% (169,392) -128.33%
Other Equity, Total (29,491) -23.90% (28,595) -18.79% (29,336) -18.81% (23,234) -17.60%
Total Equity 16,795 13.61% 20,841 13.69% 20,598 13.21% 18,901 14.32%
Total Liabilities & Shareholders' Equity 123,382 100.00% 152,186 100.00% 155,971 100.00% 132,001 100.00%
Total Common Shares Outstanding 892 887 893 898
Total Preferred Shares Outstanding - - - -
Market Capitalization 101,440 118,900 112,160 119,860
Common Stock Price ($) 114 134 126 133
 IBM Income Statement for Period Ending 31 December 2018 2019 2020 2021
Million USD Million USD Million USD Million USD

Total Revenue 79,591 77,147 55,179 57,351

Revenue 79,591 77,147 55,179 56,571
Other Revenue, Total - - - 780
Cost of Revenue, Total 42,655 40,659 24,314 25,865
Gross Profit 36,936 36,488 30,865 31,485
Total Operating Expenses 68,249 66,981 52,607 52,513
Selling/General/Admin. Expenses, Total 18,217 19,501 18,539 18,608
Research & Development 5,379 5,989 6,262 6,488
Depreciation / Amortization 435 762 1,104 1,116
Interest Expense (Income) - Net Operating 481 485 1,174 971
Unusual Expense (Income) 598 555 1,989 301
Other Operating Expenses, Total 484 (970) (775) (836)
Operating Income 11,342 10,166 2,572 4,837
Net Income Before Taxes 11,342 10,166 2,572 4,837
Provision for Income Taxes 582 585 (1,470) 213
Net Income After Taxes 10,760 9,581 4,042 4,624
Net Income Before Extraordinary Items 10,760 9,581 4,042 4,624
Total Extraordinary Items (2,032) (150) 1,548 1,119
Net Income 8,728 9,431 5,590 5,743
Income Available to Common Excluding Extraordinary Items 10,760 9,581 4,042 4,624
Diluted Net Income 8,728 9,431 5,590 5,743
Diluted Weighted Average Shares 916 893 897 905
Diluted EPS Excluding Extraordinary Items 12 11 5 5
DPS - Common Stock Primary Issue 6 6 7 7
Diluted Normalized EPS 13 14 7 6
 IBM Income Statement for Period Ending 31 December 2018 2019 2020 2021
Million USD % Million USD % Million USD % Million USD %

Total Revenue 79,591 77,147 55,179 57,351

Revenue 79,591 100.00% 77,147 100.00% 55,179 100.00% 56,571 98.64%
Other Revenue, Total - - - 780 1.36%
Cost of Revenue, Total 42,655 53.59% 40,659 52.70% 24,314 44.06% 25,865 45.10%
Gross Profit 36,936 46.41% 36,488 47.30% 30,865 55.94% 31,485 54.90%
Total Operating Expenses 68,249 85.75% 66,981 86.82% 52,607 95.34% 52,513 91.56%
Selling/General/Admin. Expenses, Total 18,217 22.89% 19,501 25.28% 18,539 33.60% 18,608 32.45%
Research & Development 5,379 6.76% 5,989 7.76% 6,262 11.35% 6,488 11.31%
Depreciation / Amortization 435 0.55% 762 0.99% 1,104 2.00% 1,116 1.95%
Interest Expense (Income) - Net Operating 481 0.60% 485 0.63% 1,174 2.13% 971 1.69%
Unusual Expense (Income) 598 0.75% 555 0.72% 1,989 3.60% 301 0.52%
Other Operating Expenses, Total 484 0.61% (970) -1.26% (775) -1.40% (836) -1.46%
Operating Income 11,342 14.25% 10,166 13.18% 2,572 4.66% 4,837 8.43%
Net Income Before Taxes 11,342 14.25% 10,166 13.18% 2,572 4.66% 4,837 8.43%
Provision for Income Taxes 582 0.73% 585 0.76% (1,470) -2.66% 213 0.37%
Net Income After Taxes 10,760 13.52% 9,581 12.42% 4,042 7.33% 4,624 8.06%
Net Income Before Extraordinary Items 10,760 13.52% 9,581 12.42% 4,042 7.33% 4,624 8.06%
Total Extraordinary Items (2,032) -2.55% (150) -0.19% 1,548 2.81% 1,119 1.95%
Net Income 8,728 10.97% 9,431 12.22% 5,590 10.13% 5,743 10.01%
Income Available to Common Excluding Extraordinary Items 10,760 13.52% 9,581 12.42% 4,042 7.33% 4,624 8.06%
Diluted Net Income 8,728 10.97% 9,431 12.22% 5,590 10.13% 5,743 10.01%
Diluted Weighted Average Shares 916 1.15% 893 1.16% 897 1.62% 905 1.58%
Diluted EPS Excluding Extraordinary Items 12 0.01% 11 0.01% 5 0.01% 5 0.01%
DPS - Common Stock Primary Issue 6 0.01% 6 0.01% 7 0.01% 7 0.01%
Diluted Normalized EPS 13 0.02% 14 0.02% 7 0.01% 6 0.01%
Source and Use Financial Analysis
IBM Balance Sheet for Period Ending 31 December 2018-2019 2019-2020 2020-2021
Variance Variance Variance
Source Use Source Use Source Use
19-18 20-19 21-20
Total Assets 28,804 3,785 (23,970)
Current Assets: - - - - - - - - -
Cash & Equivalents (3,206) 3,206 - 5,015 - 5,015 (6,537) 6,537 -
Short Term Investments 76 - 76 (96) 96 - - - -
Total Receivables, Net (6,344) 6,344 - (6,849) 6,849 - (1,963) 1,963 -
Total Inventory (63) 63 - 193 - 193 (163) 163 -
Prepaid Expenses (316) 316 - 36 - 36 1,323 - 1,323
Other Current Assets, Total (872) 872 - 2,445 - 2,445 (2,285) 2,285 -
Total Current Assets (10,725) 744 (9,625)
Long Term Assets: - - - - - - - - -
Property/Plant/Equipment, Total - Gross 4,563 - 4,563 (13,356) 13,356 - (360) 360 -
Accumulated Depreciation, Total (350) 350 - 8,122 - 8,122 (495) 495 -
Goodwill, Net 21,957 - 21,957 (4,457) 4,457 - 1,878 - 1,878
Intangibles, Net 12,148 - 12,148 (1,496) 1,496 - (1,228) 1,228 -
Long Term Investments (351) 351 - (6) 6 - (10) 10 -
Note Receivable - Long Term (519) 519 - (1,479) 1,479 - (1,903) 1,903 -
Other Long Term Assets, Total 2,081 - 2,081 15,713 - 15,713 (12,227) 12,227 -
Long Term Assets 39,529 3,041 (14,345)
Total Liabilities 24,758 4,028 (22,273)
Current Liabilities: - - - - - - - - -
Accounts Payable (1,662) - 1,662 (863) - 863 (78) - 78
Accrued Expenses 2,070 2,070 - 579 579 - (1,652) - 1,652
Notes Payable/Short Term Debt (1,881) - 1,881 (1,145) - 1,145 (108) - 108
Current Port. of LT Debt/Capital Leases 471 471 - (536) - 536 (221) - 221
Other Current liabilities, Total 476 476 - 4,133 4,133 - (4,191) - 4,191
Total Current Liabilities (526) 2,168 (6,250)
Long Term Liabilities: - - - - - - - - -
Long Term Debt 18,346 18,346 - 206 206 - (9,303) - 9,303
Capital Lease Obligations 151 151 - (91) - 91 3 3 -
Deferred Income Tax 1,534 1,534 - (272) - 272 (1,002) - 1,002
Minority Interest 10 10 - (15) - 15 (34) - 34
Other Liabilities, Total 5,243 5,243 - 2,032 2,032 - (5,687) - 5,687
Total Long term Liabilities 25,284 - 1,860 - (16,023)
Equity: - - - - - - - - -
Common Stock, Total 1 1 - 1 1 - 1 1 -
Additional Paid-In Capital 743 743 - 660 660 - 762 762 -
Retained Earnings (Accumulated Deficit) 3,748 3,748 - (237) - 237 (8,509) - 8,509
Treasury Stock - Common (1,342) - 1,342 74 74 - (53) - 53
Other Equity, Total 896 896 - (741) - 741 6,102 6,102 -
Total Equity 4,046 - (243) (1,697)
Total Liabilities & Shareholders' Equity 28,804 - 3,785 (23,970)
45,710 45,710 35,424 35,424 34,039 34,039
Short term 30.23% 7.92% 32.91% 28.89% 32.16% 22.25%
Long Term 69.77% 92.08% 67.09% 71.11% 67.84% 77.75%
 Source and Use Analysis

Use
Short Term Uses Long Term Uses Short Term Sources Short Term Uses
2018-2019 7.92% 92.08% 33.50% 35.00%
32.91%
2019-2020 33.00% 28.89%
28.89% 71.11% 30.00%
32.50% 32.16%
2020-2021 22.25% 77.75% 32.00% 25.00% 22.25%
31.50% 20.00%
Source 31.00%
30.50% 30.23% 15.00%
Short Term Sources Long Term Sources 30.00% 10.00% 7.92%
2018-2019 30.23% 69.77% 29.50%
5.00%
2019-2020 32.91% 67.09% 29.00%
28.50% 0.00%
2020-2021 32.16% 67.84% 2018-2019 2019-2020 2020-2021 2018-2019 2019-2020 2020-2021

Long Term Sources Long Term Uses

70.00% 69.77% 100.00% 92.08%
69.50% 90.00%
77.75%
69.00% 80.00% 71.11%
70.00%
68.50%
67.84% 60.00%
68.00%
50.00%
67.50% 67.09% 40.00%
67.00% 30.00%
66.50% 20.00%
66.00% 10.00%
65.50% 0.00%
2018-2019 2019-2020 2020-2021 2018-2019 2019-2020 2020-2021

2018-2019 2019-2020 2020-2021

Source Use Source Use Source Use
Short term 30.23% 7.92% Short term 32.91% 28.89% Short term 32.16% 22.25%
Long Term 69.77% 92.08% Long Term 67.09% 71.11% Long Term 67.84% 77.75%