07/20/2022 | Press release | Distributed by Public on 07/20/2022 06:48
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Per Note
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Total
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Price to Public(1)
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Underwriting Discounts and Commissions
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Proceeds to Company(1)
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BNP PARIBAS
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J.P. Morgan
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RBC Capital Markets
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Santander
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Wells Fargo Securities
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Page
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Prospectus Supplement
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International Business Machines Corporation
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| | | | S-2 | | |
Where You Can Find More Information
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| | | | S-2 | | |
Recent Developments
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| | | | S-3 | | |
Use of Proceeds
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| | | | S-6 | | |
Description of Notes
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| | | | S-7 | | |
United States Taxation
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| | | | S-12 | | |
Underwriting
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| | | | S-16 | | |
Offering Restrictions
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| | | | S-18 | | |
Legal Opinions
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| | | | S-20 | | |
Experts
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| | | | S-20 | | |
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Prospectus
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Summary
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| | | | 1 | | |
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Use of Proceeds
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| | | | 4 | | |
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Description of the Debt Securities
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| | | | 4 | | |
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Description of the Preferred Stock
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| | | | 15 | | |
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Description of the Capital Stock
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| | | | 20 | | |
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Description of the Warrants
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| | | | 20 | | |
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Debt Warrants
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| | | | 20 | | |
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Stock Warrants
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| | | | 21 | | |
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Plan of Distribution
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| | | | 22 | | |
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Legal Opinions
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| | | | 23 | | |
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Experts
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| | | | 23 | | |
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Three Months Ended
June 30, |
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Six Months Ended
June 30, |
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2022
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2021*
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2022
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2021*
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Income Statement Data: | | | | | | | ||||||||||||||||||||||
REVENUE | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Software
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| | | $ | 6,166 | | | | | $ | 5,795 | | | | | $ | 11,938 | | | | | $ | 10,933 | | | | ||
Consulting
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| | | | 4,809 | | | | | | 4,378 | | | | | | 9,637 | | | | | | 8,641 | | | | ||
Infrastructure
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| | | | 4,235 | | | | | | 3,560 | | | | | | 7,453 | | | | | | 6,853 | | | | ||
Financing
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| | | | 146 | | | | | | 209 | | | | | | 300 | | | | | | 417 | | | | ||
Other
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| | | | 180 | | | | | | 277 | | | | | | 404 | | | | | | 561 | | | | ||
TOTAL REVENUE
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| | | | 15,535 | | | | | | 14,218 | | | | | | 29,732 | | | | | | 27,405 | | | | ||
GROSS PROFIT
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| | | | 8,290 | | | | | | 7,852 | | | | | | 15,625 | | | | | | 14,879 | | | | ||
GROSS PROFIT MARGIN | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Software
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| | | | 79.2% | | | | | | 79.7% | | | | | | 79.0% | | | | | | 78.8% | | | | ||
Consulting
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| | | | 24.2% | | | | | | 27.6% | | | | | | 24.3% | | | | | | 27.7% | | | | ||
Infrastructure
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| | | | 53.8% | | | | | | 57.1% | | | | | | 52.4% | | | | | | 56.7% | | | | ||
Financing
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| | | | 35.3% | | | | | | 29.9% | | | | | | 36.5% | | | | | | 32.7% | | | | ||
TOTAL GROSS PROFIT MARGIN
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| | | | 53.4% | | | | | | 55.2% | | | | | | 52.6% | | | | | | 54.3% | | | | ||
EXPENSE AND OTHER INCOME | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
S,G&A
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| | | | 4,855 | | | | | | 4,849 | | | | | | 9,452 | | | | | | 9,536 | | | | ||
R,D&E
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| | | | 1,673 | | | | | | 1,641 | | | | | | 3,352 | | | | | | 3,257 | | | | ||
Intellectual property and custom development income
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| | | | (176) | | | | | | (133) | | | | | | (297) | | | | | | (278) | | | | ||
Other (income) and expense
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| | | | (81) | | | | | | 302 | | | | | | 166 | | | | | | 647 | | | | ||
Interest expense
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| | | | 297 | | | | | | 281 | | | | | | 607 | | | | | | 561 | | | | ||
TOTAL EXPENSE AND OTHER INCOME
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| | | | 6,568 | | | | | | 6,940 | | | | | | 13,280 | | | | | | 13,724 | | | | ||
INCOME/(LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | | | | | 1,722 | | | | | | 912 | | | | | | 2,345 | | | | | | 1,155 | | | | ||
Pre-tax margin
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| | | | 11.1% | | | | | | 6.4% | | | | | | 7.9% | | | | | | 4.2% | | | | ||
Provision for/(Benefit from) income taxes
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| | | | 257 | | | | | | 101 | | | | | | 218 | | | | | | (58) | | | | ||
Effective tax rate
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| | | | 14.9% | | | | | | 11.1% | | | | | | 9.3% | | | | | | (5.0)% | | | | ||
INCOME FROM CONTINUING OPERATIONS
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| | | $ | 1,465 | | | | | $ | 810 | | | | | $ | 2,127 | | | | | $ | 1,213 | | | | ||
DISCONTINUED OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Income/(Loss) from discontinued operations, net of taxes
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| | | | (73) | | | | | | 515 | | | | | | (2) | | | | | | 1,067 | | | | | |
NET INCOME
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| | | $ | 1,392 | | | | | $ | 1,325 | | | | | $ | 2,125 | | | | | $ | 2,280 | | | |
(Dollars in Millions)
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At
June 30, 2022 |
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At
December 31, 2021 |
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Balance Sheet Data: | | | | ||||||||||
Cash and cash equivalents
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| | | $ | 7,034 | | | | | $ | 6,650 | | |
Total Current Assets
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| | | $ | 27,896 | | | | | $ | 29,539 | | |
Total Assets
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| | | $ | 127,503 | | | | | $ | 132,001 | | |
Short-term debt
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| | | $ | 5,981 | | | | | $ | 6,787 | | |
Long-term debt
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| | | $ | 44,328 | | | | | $ | 44,917 | | |
Total Liabilities
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| | | $ | 108,026 | | | | | $ | 113,005 | | |
Total Equity
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| | | $ | 19,476 | | | | | $ | 18,996 | | |
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Three Months Ended
June 30, |
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Six Months Ended
June 30, |
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(Dollars in Millions)
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2022
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2021
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2022
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2021
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Cash Flow Data: | | | | | | ||||||||||||||||||||
Net Cash Provided by Operating Activities
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| | | $ | 1,321 | | | | | $ | 2,625 | | | | | $ | 4,569 | | | | | $ | 7,539 | | |
Net Cash Provided by/(Used in) Investing Activities
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| | | $ | 172 | | | | | $ | (2,671) | | | | | $ | (1,186) | | | | | $ | (4,671) | | |
Net Cash Provided by/(Used in) Financing Activities
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| | | $ | (4,197) | | | | | $ | (3,131) | | | | | $ | (2,819) | | | | | $ | (8,914) | | |
Underwriter
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Principal
Amount of Notes to be Purchased |
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BNP Paribas Securities Corp.
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| | | $ | | | |
J.P. Morgan Securities LLC
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RBC Capital Markets, LLC
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Santander Investment Securities Inc.
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Wells Fargo Securities, LLC
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Total
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| | | $ | | | |
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Paid by IBM
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Per Note
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| | | | % | | |
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Page
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| |||
Summary
|
| | | | 1 | | |
Where You Can Find More Information
|
| | | | 3 | | |
Use of Proceeds
|
| | | | 4 | | |
Description of the Debt Securities
|
| | | | 4 | | |
Description of the Preferred Stock
|
| | | | 15 | | |
Description of the Capital Stock
|
| | | | 20 | | |
Description of the Warrants
|
| | | | 20 | | |
Plan of Distribution
|
| | | | 22 | | |
Legal Opinions
|
| | | | 23 | | |
Experts
|
| | | | 23 | | |