Back to GetFilings.com
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------------
FORM 10-K
ANNUAL REPORT
PURSUANT TO SECTION 13 OR 15 (D) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE YEAR ENDED DECEMBER 31, 1993
1-2360
(Commission File Number)
INTERNATIONAL BUSINESS MACHINES CORPORATION
(Exact name of registrant as specified in its charter)
NEW YORK 13-0871985
(STATE OF INCORPORATION) (IRS EMPLOYER IDENTIFICATION NUMBER)
ARMONK, NEW YORK 10504
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
914-765-1900
(Registrant's telephone number)
SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:
VOTING SHARES OUTSTANDING NAME OF EACH EXCHANGE
TITLE OF EACH CLASS AT FEBRUARY 10, 1994 ON WHICH REGISTERED
- --------------------------- ------------------------- ------------------------
Capital stock, par value 582,112,340 New York Stock Exchange
$1.25 per share Midwest Stock Exchange
Pacific Stock Exchange
Depositary shares each New York Stock Exchange
representing one-fourth
of a share of 7 1/2%
Preferred stock, par
value $ .01 per share
6 3/8% Notes due 1997 New York Stock Exchange
9% Notes due 1998 New York Stock Exchange
6 3/8% Notes due 2000 New York Stock Exchange
7 1/4% Notes due 2002 New York Stock Exchange
7 1/2% Debentures due 2013 New York Stock Exchange
8 3/8% Debentures due 2019 New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. / /
The aggregate market value of the voting stock held by non-affiliates of
the registrant at February 10, 1994 was $30.8 billion.
Documents incorporated by reference:
Portions of IBM's Annual Report to Stockholders for the year ended
December 31, 1993 into Parts I and II of Form 10-K.
Portions of IBM's definitive Proxy Statement dated March 14, 1994 into
Part III of Form 10-K.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PART I
ITEM 1. BUSINESS:
IBM develops, manufactures and sells advanced information processing
products, including computers and microelectronic technology, software,
networking systems and information technology-related services. IBM offers value
worldwide through its United States, Canada, Europe/Middle East/Africa, Latin
America, and Asia/Pacific business units, by providing comprehensive and
competitive product choices.
The value of unfilled orders is not a meaningful indicator of future
revenues due to the significant proportion of revenue from services, the volume
of products delivered from shelf inventories, and the shortening of product
delivery schedules. Therefore, the Company believes that backlog information is
not material to an understanding of its business.
IBM owns or is licensed under a number of patents relating to its products.
Licenses under patents owned by IBM have been and are being granted to others.
IBM believes its business as a whole is not materially dependent upon any
particular patent or license, or any particular group of patents or licenses.
The following information is included in IBM's 1993 Annual Report to
Stockholders and is incorporated herein by reference:
1. Segment information and revenue by classes of similar products or
services--Pages 59 and 60
2. Financial information by geographic areas--Pages 61 and 62
3. Amount spent during each of the last three years on research and
development activities--Page 45
4. The number of persons employed by the registrant--Page 31
5. Management discussion overview --Pages 20 and 21
ITEM 2. PROPERTIES:
At December 31, 1993, IBM's manufacturing and development facilities in the
United States had aggregate floor space of 57.4 million square feet, of which
46.6 million was owned and 10.8 million was leased. Of these amounts, 4.3
million square feet was vacant and .7 million square feet was being leased to
non-IBM businesses. Similar facilities in 15 other countries totaled 21.8
million square feet, of which 18.3 million was owned and 3.5 million was leased.
Of these amounts, .6 million square feet was vacant and .3 million square feet
was being leased to non-IBM businesses.
Although improved production techniques, productivity gains, and
restructuring actions have resulted in reduced manufacturing floor space,
continuous upgrading of facilities is essential to maintain technological
leadership, improve productivity, and meet customer demand. For additional
information on expenditures for plant and other property, refer to page 27
(Investments) of IBM's 1993 Annual Report to Stockholders which is incorporated
herein by reference.
ITEM 3. LEGAL PROCEEDINGS:
No material pending legal proceedings.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS:
Not applicable.
1
PART I (CONTINUED)
EXECUTIVE OFFICERS OF THE REGISTRANT (AT MARCH 28, 1994):
OFFICER
AGE SINCE
----------- -----------
Chairman of the Board of Directors and Chief Executive Officer
Louis V. Gerstner, Jr.(1)....................................................................... 52 1993
Vice Chairman of the Board of Directors
Paul J. Rizzo(1)................................................................................ 66 1993
Senior Vice Presidents
James A. Cannavino, Strategy and Development.................................................... 49 1988
Gerald M. Czarnecki, Human Resources and Administration......................................... 54 1993
Donato A. Evangelista, General Counsel.......................................................... 61 1983
Ellen M. Hancock, Group Executive............................................................... 50 1985
Robert J. LaBant, Group Executive............................................................... 48 1989
Ned C. Lautenbach, Group Executive.............................................................. 50 1987
G. Richard Thoman, Group Executive.............................................................. 49 1993
John M. Thompson, Group Executive............................................................... 51 1989
Patrick A. Toole, Group Executive............................................................... 56 1984
Jerome B. York, Chief Financial Officer......................................................... 55 1993
Vice President and Controller
Lawrence A. Zimmerman........................................................................... 51 1991
Vice President and Treasurer
Frederick W. Zuckerman.......................................................................... 59 1993
- ------------
(1) Member of the Board of Directors.
All officers are elected by the Board of Directors and serve until the next
election of officers in conjunction with the annual meeting of the stockholders
as provided in the By-laws. Each officer named above, with the exception of
Gerald M. Czarnecki, Louis V. Gerstner, Jr., Paul J. Rizzo, G. Richard Thoman,
Jerome B. York, and Frederick W. Zuckerman has been an officer or an executive
of IBM or its subsidiaries during the past five years.
Mr. Czarnecki was the chairman of the board and chief executive officer, of
Bank of America-Hawaii from 1992 until joining IBM in 1993. From 1987 to 1992,
he was chairman of the board and chief executive officer of HonFed Bank in
Honolulu, Hawaii.
Mr. Gerstner was the chairman of the board and chief executive officer of
RJR Nabisco Holdings Corporation from 1989 until joining IBM in 1993. From 1985
to 1989, he was chairman and chief executive officer of American Express Travel
Related Services Co., Inc.
Mr. Rizzo was the Dean of the Kenan-Flagler Business School at the
University of North Carolina-Chapel Hill from 1987 to 1992. He then became a
partner in Franklin Street Partners, a Chapel Hill investment firm. He rejoined
IBM in 1993, having previously retired in 1988.
Mr. Thoman was the president of Nabisco International from 1992 until
joining IBM in 1993. From 1985 to 1989, he was president of American Express
Travel Related Services International, and co-CEO of American Express Travel
Related Services Co., and CEO of American Express International from 1989 to
1992.
Mr. York was the executive vice president-finance and chief financial
officer of Chrysler Corporation from 1990 until joining IBM in 1993. From 1979
to 1990, he had also served as vice president and controller at Chrysler, vice
president in charge of the company's Dodge car and truck division, and managing
director of its operations in Mexico.
Mr. Zuckerman was the senior vice president and treasurer of RJR Nabisco
from 1991 until joining IBM in 1993. From 1981 to 1991, he was the corporate
vice president and treasurer of Chrysler Corporation.
2
PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS:
Refer to page 63 and the inside back cover of IBM's 1993 Annual Report to
Stockholders which are incorporated herein by reference solely as they relate to
this item.
There were 738,948 common stockholders of record at February 10, 1994.
ITEM 6. SELECTED FINANCIAL DATA:
Refer to page 63 of IBM's 1993 Annual Report to Stockholders which is
incorporated herein by reference.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS:
Refer to pages 20 through 31 of IBM's 1993 Annual Report to Stockholders
which are incorporated herein by reference.
On March 1, 1994, Loral Corporation completed its acquisition of the
Federal Systems Company for $1.503 billion in cash. The amount of any gain
resulting from this sale may be dependent on future performance of the Advanced
Automation System contract for the Federal Aviation Authority and certain other
open matters.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA:
Refer to pages 18 and 19 and 32 through 62 of IBM's 1993 Annual Report to
Stockholders which are incorporated herein by reference. Also refer to the
Financial Statement Schedules on pages S-1 to S-5 of this Form.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE:
Not applicable.
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT:
Refer to pages 2 through 4 and 7 of IBM's definitive Proxy Statement dated
March 14, 1994 which are incorporated herein by reference solely as they relate
to this item. Also refer to the Item entitled "Executive Officers of the
Registrant" in Part I of this Form.
ITEM 11. EXECUTIVE COMPENSATION:
Refer to pages 9 through 16 of IBM's definitive Proxy Statement dated March
14, 1994, which are incorporated herein by reference.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT:
(A) SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS:
Not applicable.
(B) SECURITY OWNERSHIP OF MANAGEMENT:
Refer to the section entitled "Stock Ownership" appearing on pages 7
and 8 of IBM's definitive Proxy Statement dated March 14, 1994, which
is incorporated herein by reference.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS:
Refer to page 7 (Other Relationships) of IBM's definitive Proxy Statement
dated March 14, 1994, which is incorporated herein by reference.
3
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K:
(A) THE FOLLOWING DOCUMENTS ARE FILED AS PART OF THIS REPORT:
1. FINANCIAL STATEMENTS FROM IBM'S 1993 ANNUAL REPORT TO STOCKHOLDERS
WHICH ARE INCORPORATED HEREIN BY REFERENCE:
Report of Independent Accountants (page 19).
Consolidated Statement of Operations for the years ended December 31,
1993, 1992 and 1991 (page 32).
Consolidated Statement of Financial Position at December 31, 1993 and
1992 (page 33).
Consolidated Statement of Cash Flows for the years ended December 31,
1993, 1992 and 1991 (page 34).
Consolidated Statement of Stockholders' Equity at December 31, 1993, 1992
and 1991 (page 35).
Notes to Consolidated Financial Statements (pages 36 through 62).
2. FINANCIAL STATEMENT SCHEDULES REQUIRED TO BE FILED BY ITEM 8 OF
THIS FORM:
SCHEDULE
PAGE NUMBER
- ----------- -----------
7 Report of Independent Accountants on Financial Statement Schedules.
S-1 V-- Plant, Rental Machines and Other Property.
S-2 VI-- Accumulated Depreciation of Plant, Rental Machines and Other Property.
S-3 VIII-- Valuation and Qualifying Accounts.
S-4 IX-- Short-Term Borrowings.
S-5 X-- Supplementary Income Statement Information.
All other schedules are omitted as the required matter is not present,
the amounts are not significant or the information is shown in the
financial statements or the notes thereto.
3. EXHIBITS:
INCLUDED IN THIS FORM 10-K:
I-- Computation of Fully Diluted Earnings Per Share.
II-- Parents and Subsidiaries.
III-- Consent of Independent Accountants.
IV-- Additional Exhibits
(a) Quarterly Consolidated Statement of Operations--Restated 1993.
V-- The By-laws of IBM as amended through November 30, 1993.
VI-- The Certificate of Incorporation of IBM as restated April 27, 1992, and
filed May 27, 1992, as amended through May 28, 1993.
VII-- IBM's 1993 Annual Report to Stockholders, certain sections of which have
been incorporated herein by reference.
VIII-- Powers of Attorney.
4
PART IV (CONTINUED)
NOT INCLUDED IN THIS FORM 10-K:
-- A copy of the IBM 1989 Long-Term Performance Plan, a management
compensatory plan, is contained in Registration Statement No.
33-29022 on Form S-8, filed on May 31, 1989, and is hereby
incorporated by reference.
-- Board of Directors compensatory plans, as described under Directors'
Compensation on page 7 of IBM's definitive Proxy Statement dated
March 14, 1994, which is incorporated herein by reference.
-- The instruments defining the rights of the holders of the 6 3/8%
Notes due 1997 and the 7 1/4% Notes due 2002 are Exhibits 4(a)
through 4(1) to Registration Statement No. 33-33590 on Form S-3,
filed on February 22, 1990, and are hereby incorporated by reference.
-- The instruments defining the rights of the holders of the 9% Notes
due 1998 are Exhibit 4 to the Company's Quarterly Report on Form 10-Q
for the quarter ended June 30, 1985, and Exhibit 4(b) to Registration
Statement No. 33-6889 on Form S-3, filed on July 1, 1986, and are
hereby incorporated by reference.
-- The instruments defining the rights of the holders of the 6 3/8%
Notes due 2000 and the 7 1/2% Debentures due 2013 are Exhibits 4(a)
through 4(1) to Registration Statement No. 33-49475(1) on Form S-3,
filed May 24, 1993, and are hereby incorporated by reference.
-- The instruments defining the rights of holders of the 8 3/8%
Debentures due 2019 are Exhibits 4(a)(b)(c) and (d) to Registration
Statement 33-31732 on Form S-3, filed on October 24, 1989, and are
hereby incorporated by reference.
-- IBM's definitive Proxy Statement dated March 14, 1994, certain
sections of which have been incorporated herein by reference.
(B) REPORTS ON FORM 8-K:
-- No reports on Form 8-K were filed during the last quarter of 1993.
5
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934, THE REGISTRANT HAS DULY CAUSED THIS REPORT TO BE SIGNED ON
ITS BEHALF BY THE UNDERSIGNED, THEREUNTO DULY AUTHORIZED.
INTERNATIONAL BUSINESS MACHINES
CORPORATION
(Registrant)
By: LOUIS V. GERSTNER, JR.
..................................
(LOUIS V. GERSTNER, JR.
CHAIRMAN OF THE BOARD OF DIRECTORS
AND CHIEF EXECUTIVE OFFICER)
Date: March 28, 1994
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THIS
REPORT HAS BEEN SIGNED BELOW BY THE FOLLOWING PERSONS ON BEHALF OF THE
REGISTRANT AND IN THE CAPACITIES AND ON THE DATES INDICATED.
SIGNATURE TITLE DATE
- -------------------------------------------- ------------------ ------------------------------------------
JEROME B. YORK Senior Vice March 28, 1994
............................................ President
(JEROME B. YORK) and
Chief
Financial
Officer
LAWRENCE A. ZIMMERMAN Vice President March 28, 1994
............................................ and
(LAWRENCE A. ZIMMERMAN) Controller
HAROLD BROWN Director
JAMES E. BURKE Director
THOMAS F. FRIST, JR. Director
FRITZ GERBER Director
JUDITH RICHARDS HOPE Director
NANNERL O. KEOHANE Director
CHARLES F. KNIGHT Director
THOMAS S. MURPHY Director By: JOHN E. HICKEY
...............................
(JOHN E. HICKEY)
JOHN R. OPEL Director ATTORNEY-IN-FACT
PAUL J. RIZZO Vice Chairman March 28, 1994
of the Board
JOHN B. SLAUGHTER Director
LODEWIJK C. VAN WACHEM Director
EDGAR S. WOOLARD, JR. Director
6
REPORT OF INDEPENDENT ACCOUNTANTS ON
FINANCIAL STATEMENT SCHEDULES
To the Board of Directors of
INTERNATIONAL BUSINESS MACHINES CORPORATION
Our audits of the consolidated financial statements referred to in our report
dated February 16, 1994 (which refers to the changes in the methods of
accounting for postemployment benefits in 1993, income taxes in 1992, and
nonpension postretirement benefits in 1991) appearing on page 19 of the 1993
Annual Report to Stockholders of International Business Machines Corporation
(which report and consolidated financial statements are incorporated by
reference in this Annual Report on Form 10-K) also included an audit of the
Financial Statement Schedules listed in Item 14(a)2 of this Form 10-K. In our
opinion, these Financial Statement Schedules present fairly, in all material
respects, the information set forth therein when read in conjunction with the
related consolidated financial statements.
PRICE WATERHOUSE
1177 Avenue of the Americas
New York, N.Y. 10036
February 16, 1994
7
SCHEDULE V
INTERNATIONAL BUSINESS MACHINES CORPORATION
AND SUBSIDIARY COMPANIES
PLANT, RENTAL MACHINES AND OTHER PROPERTY
FOR THE YEAR ENDED DECEMBER 31:
(DOLLARS IN MILLIONS)
BALANCE
AT RETIREMENTS, BALANCE
BEGINNING ADDITIONS SALES AND TRANSLATION AT END
DESCRIPTION OF PERIOD AT COST RECLASSIFICATIONS ADJUSTMENTS OF PERIOD
- ----------------------------------------- ----------- ----------- ----------------- ------------- -----------
1993
Land and land improvements............. $ 1,477 $ 12 $ 59 $ (8) $ 1,422
Buildings.............................. 13,839 278 641 (162) 13,314
Plant, laboratory and office
equipment................................ 34,500 2,147 6,480 (338) 29,829
----------- ----------- -------- ------------- -----------
49,816 2,437 7,180 (508) 44,565
Rental machines and parts.............. 2,970 795 801 (25) 2,939
----------- ----------- -------- ------------- -----------
Total......................... $ 52,786 $ 3,232 $ 7,981 $ (533) $ 47,504
----------- ----------- -------- ------------- -----------
----------- ----------- -------- ------------- -----------
1992
Land and land improvements............. $ 1,604 $ 15 $ 71 $ (71) $ 1,477
Buildings.............................. 14,281 477 389 (530) 13,839
Plant, laboratory and office
equipment................................ 36,490 3,721 4,549 (1,162) 34,500
----------- ----------- -------- ------------- -----------
52,375 4,213 5,009 (1,763) 49,816
Rental machines and parts.............. 3,303 485 714 (104) 2,970
----------- ----------- -------- ------------- -----------
Total......................... $ 55,678 $ 4,698 $ 5,723 $ (1,867) $ 52,786
----------- ----------- -------- ------------- -----------
----------- ----------- -------- ------------- -----------
1991
Land and land improvements............. $ 1,645 $ 19 $ 64 $ 4 $ 1,604
Buildings.............................. 13,792 833 361 17 14,281
Plant, laboratory and office
equipment................................ 35,155 4,508 3,216 43 36,490
----------- ----------- -------- ------------- -----------
50,592 5,360 3,641 64 52,375
Rental machines and parts.............. 3,067 1,142 922 16 3,303
----------- ----------- -------- ------------- -----------
Total......................... $ 53,659 $ 6,502 $ 4,563 $ 80 $ 55,678
----------- ----------- -------- ------------- -----------
----------- ----------- -------- ------------- -----------
DEPRECIATION: Plant, rental machines and other property are carried at cost
and depreciated over their estimated useful lives using the straight-line
method.
With minor exceptions, the estimated useful lives of depreciable properties
are as follows:
Land improvements....................................... 20 years
Buildings and building equipment........................ 5 to 50 years
Plant, laboratory and office equipment.................. 2 to 16 years
Rental machines......................................... 1 to 7 years
S-1
SCHEDULE VI
INTERNATIONAL BUSINESS MACHINES CORPORATION
AND SUBSIDIARY COMPANIES
ACCUMULATED DEPRECIATION OF PLANT, RENTAL MACHINES AND OTHER PROPERTY
FOR THE YEAR ENDED DECEMBER 31:
(DOLLARS IN MILLIONS)
ADDITIONS DEDUCTIONS
------------------ -----------------
BALANCE AT CHARGED TO COSTS, RETIREMENTS, BALANCE
BEGINNING EXPENSES AND SALES AND TRANSLATION AT END
DESCRIPTION OF PERIOD OTHER ACCOUNTS RECLASSIFICATIONS ADJUSTMENTS OF PERIOD
- ------------------------------ ----------- ------------------ ----------------- ------------- -----------
1993
Land improvements........... $ 260 $ 101 $ 21 $ (11) $ 329
Buildings................... 6,301 713 353 (108) 6,553
Plant, laboratory and office
equipment..................... 23,228 4,381 5,627 (288) 21,694
----------- -------- -------- ------------- -----------
29,789 5,195 6,001 (407) 28,576
Rental machines............. 1,402 583 561 (17) 1,407
----------- -------- -------- ------------- -----------
Total.............. $ 31,191 $ 5,778(A) $ 6,562 $ (424) $ 29,983
----------- -------- -------- ------------- -----------
----------- -------- -------- ------------- -----------
1992
Land improvements........... $ 289 $ 23 $ 38 $ (14) $ 260
Buildings................... 4,848 1,837 157 (227) 6,301
Plant, laboratory and office
equipment..................... 21,480 6,819 4,322 (749) 23,228
----------- -------- -------- ------------- -----------
26,617 8,679 4,517 (990) 29,789
Rental machines............. 1,483 542 573 (50) 1,402
----------- -------- -------- ------------- -----------
Total.............. $ 28,100 $ 9,221(B) $ 5,090 $ (1,040) $ 31,191
----------- -------- -------- ------------- -----------
----------- -------- -------- ------------- -----------
1991
Land improvements........... $ 272 $ 25 $ 8 $ -- $ 289
Buildings................... 4,474 524 151 1 4,848
Plant, laboratory and office
equipment..................... 20,170 4,146 2,848 12 21,480
----------- -------- -------- ------------- -----------
24,916 4,695 3,007 13 26,617
Rental machines............. 1,502 454 481 8 1,483
----------- -------- -------- ------------- -----------
Total.............. $ 26,418 $ 5,149(C) $ 3,488 $ 21 $ 28,100
----------- -------- -------- ------------- -----------
----------- -------- -------- ------------- -----------
- ------------
(A) Includes charge for accelerated depreciation due to restructuring actions
taken in 1993 of $1,068 million.
(B) Includes charge for accelerated depreciation due to restructuring actions
taken in 1992 of $4,185 million.
(C) Includes charge for accelerated depreciation due to restructuring action
taken in 1991 of $378 million.
S-2
SCHEDULE VIII
INTERNATIONAL BUSINESS MACHINES CORPORATION
AND SUBSIDIARY COMPANIES
VALUATION AND QUALIFYING ACCOUNTS
FOR THE YEAR ENDED DECEMBER 31:
(DOLLARS IN MILLIONS)
BALANCE AT BALANCE AT
BEGINNING END
DESCRIPTION OF PERIOD NET CHANGE(A) OF PERIOD
- ---------------------------------------------------------------------- ------------- ----------------- -------------
1993
]Account deducted from assets:
Allowance for doubtful accounts
--Current........................................................ $ 578 $ 105 $ 683
------ ------ ------
------ ------ ------
--Non-current.................................................... $ 209 $ (22) $ 187
------ ------ ------
------ ------ ------
1992
Account deducted from assets:
Allowance for doubtful accounts
--Current........................................................ $ 414 $ 164 $ 578
------ ------ ------
------ ------ ------
--Non-current.................................................... $ 196 $ 13 $ 209
------ ------ ------
------ ------ ------
1991
Account deducted from assets:
Allowance for doubtful accounts
--Current........................................................ $ 389 $ 25 $ 414
------ ------ ------
------ ------ ------
--Non-current.................................................... $ 119 $ 77 $ 196
------ ------ ------
------ ------ ------
- ------------
(A) Includes additions charged to costs and expenses less accounts written off
and translation adjustments.
Note--
The receivables upon which the above allowances are based are highly
diversified by geography, industry, and individual customer. The allowances for
receivable losses for the year ended 1993, approximate less than three and
one-half percent of the company's current receivables and less than two percent
of the company's non-current receivables. The allowances for the year ended
1992, approproximate less than three percent of the company's current
receivables and less than two percent of the company's non-current receivables.
The allowances for the year ended 1991, approximate less than two percent in
both categories of receivables.
S-3
SCHEDULE IX
INTERNATIONAL BUSINESS MACHINES CORPORATION
AND SUBSIDIARY COMPANIES
SHORT-TERM BORROWINGS
FOR THE YEAR ENDED DECEMBER 31:
(DOLLARS IN MILLIONS)
WEIGHTED WEIGHTED
AVERAGE MAXIMUM AVERAGE
BALANCE AT INTEREST OUTSTANDING INTEREST RATE
END RATE AT DURING THE AVERAGE DURING THE
OF PERIOD YEAR END YEAR BALANCE PERIOD
----------- ------------- ------------- ----------- -------------
1993
Commercial Paper................................... $ 3,735 3.9% $ 8,357 $ 6,295 3.6%
Short-Term Loans................................... 4,356 5.9% 6,815 5,652 7.4%
1992
Commercial Paper................................... 7,869 3.5% 7,869 5,325 3.9%
Short-Term Loans................................... 5,342 13.3% 6,793 5,767 16.2%
1991
Commercial Paper................................... 3,426 5.1% 3,426 2,485 6.3%
Short-Term Loans................................... 5,927 18.6% 7,955 5,316 22.5%
- ------------
Note--
The balance at end of period excludes the current portion of long-term debt
of $4,006 million, $3,256 million, and $4,363 million for the years 1993, 1992,
and 1991, respectively.
Effective 1993, short-term loan amounts in subsidiaries where the economic
environment is highly inflationary, were primarily denominated in U.S. dollars.
In prior years, these loans were denominated in local currencies, and the high
interest rates in those operations were largely offset by the effects of
inflation on funds borrowed. If the inflationary effects of these loans were
excluded, the weighted average interest rate at year-end would have been 7.5%
and 8.7% for the years 1992 and 1991, respectively, and the weighted average
interest rate during the year would have been 7.8% and 9.0% for 1992 and 1991,
respectively.
The average amount outstanding during the year and the weighted average
interest rate during the year were calculated by averaging the quarterly
balances and rates.
S-4
SCHEDULE X
INTERNATIONAL BUSINESS MACHINES CORPORATION
AND SUBSIDIARY COMPANIES
SUPPLEMENTARY INCOME STATEMENT INFORMATION
FOR THE YEAR ENDED DECEMBER 31:
(DOLLARS IN MILLIONS)
ITEM 1993 1992 1991
- ---------------------------------------------------------------- --------- --------- ---------
Maintenance and repairs(A)...................................... $ 1,871 $ 2,260 $ 2,376
--------- --------- ---------
--------- --------- ---------
Taxes, other than payroll and income taxes(A)................... $ 702 $ 800 $ 795
--------- --------- ---------
--------- --------- ---------
- ------------
(A) Includes amounts charged to all accounts, including inventories and
fixed assets.
S-5
EXHIBIT INDEX
REFERENCE NUMBER EXHIBIT
PER ITEM 601 OF NUMBER IN
REGULATION S-K DESCRIPTION OF EXHIBITS THIS FORM 10-K
- --------------------- -------------------------------------------------------------------------- -----------------
(3) Certificate of Incorporation and By-laws.
The Certificate of Incorporation of IBM as restated April 27, 1992, and VI
filed May 27, 1992, as amended through May 28, 1993.
The By-laws of IBM as amended through November 30, 1993. V
(4) Instruments defining the rights of security holders.
The instruments defining the rights of the holders of the 6 3/8% Notes due
1997 and the 7 1/4% Notes due 2002 are Exhibits 4(a) through 4(1) to
Registration Statement No. 33-33590 on Form S-3, filed February 22,
1990, and are hereby incorporated by reference.
The instruments defining the rights of the holders of the 9% Notes due
1998 are Exhibit 4 to the Company's Quarterly Report on Form 10-Q for
the quarter ended June 30, 1985, and Exhibit 4(b) to Registration
Statement No. 33-6889 on Form S-3 filed on July 1, 1986, and are hereby
incorporated by reference.
The instruments defining the rights of the holders of the 6 3/8% Notes due
2000 and the 7 1/2% Debentures due 2013 are Exhibits 4(a) through 4(1)
to Registration Statement No. 33-49475(1) on Form S-3, file May 24,
1993, and are hereby incorporated by reference.
The instruments defining the rights of the holders of the 8 3/8%
Debentures due 2019 are Exhibits (4)(a)(b)(c) and (d) to Registration
Statement No. 33-31732 on Form S-3, filed on October 24, 1989, are
hereby incorporated by reference.
(9) Voting trust agreement. Not applicable
(10) Material contracts.
A copy of the IBM 1989 Long-Term Performance Plan is contained in
Registration Statement No. 33-29022 on Form S-8, filed on May 31, 1989,
and is hereby incorporated by reference.
Board of Directors compensatory plans, as described under Director's
Compensation on page 7 of IBM's definitive Proxy Statement dated March
14, 1994, which is incorporated herein by reference.
(11) Statement re computation of per share earnings. I
(12) Statement re computation of ratios. Not applicable
(13) Annual report to security holders. VII
(18) Letter re change in accounting principles. Not applicable
(19) Previously unfiled documents. Not applicable
(21) Subsidiaries of the registrant. II
(22) Published report regarding matters submitted to vote of security holders. Not applicable
(23) Consents of experts and counsel. III
(24) Powers of attorney. VIII
(27) Financial Data Schedules IX
(28) Information from reports furnished to state insurance regulatory Not applicable
authorities.
(29) Additional exhibits. IV