item 14 exhibits financial statement schedules reports form 8k following documents filed part report 1 financial statements ibms 1993 annual report stockholders incorporated herein reference report independent accountants page 19 consolidated statement operations years ended december 31 1993 1992 1991 page 32 consolidated statement financial position december 31 1993 1992 page 33 consolidated statement cash flows years ended december 31 1993 1992 1991 page 34 consolidated statement stockholders equity december 31 1993 1992 1991 page 35 notes consolidated financial statements pages 36 62 2 financial statement schedules required filed item 8 form schedules omitted required matter present amounts significant information shown financial statements notes thereto 3 exhibits included form 10k part iv continued included form 10k copy ibm 1989 longterm performance plan management compensatory plan contained registration statement 3329022 form s8 filed may 31 1989 hereby incorporated reference board directors compensatory plans described directors compensation page 7 ibms definitive proxy statement dated march 14 1994 incorporated herein reference instruments defining rights holders 6 38 notes due 1997 7 14 notes due 2002 exhibits 4a 41 registration statement 3333590 form s3 filed february 22 1990 hereby incorporated reference instruments defining rights holders 9 notes due 1998 exhibit 4 companys quarterly report form 10q quarter ended june 30 1985 exhibit 4b registration statement 336889 form s3 filed july 1 1986 hereby incorporated reference instruments defining rights holders 6 38 notes due 2000 7 12 debentures due 2013 exhibits 4a 41 registration statement 33494751 form s3 filed may 24 1993 hereby incorporated reference instruments defining rights holders 8 38 debentures due 2019 exhibits 4abc registration statement 3331732 form s3 filed october 24 1989 hereby incorporated reference ibms definitive proxy statement dated march 14 1994 certain sections incorporated herein reference b reports form 8k reports form 8k filed last quarter 1993 signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized international business machines corporation registrant louis v gerstner jr louis v gerstner jr chairman board directors chief executive officer date march 28 1994 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated report independent accountants financial statement schedules board directors international business machines corporation audits consolidated financial statements referred report dated february 16 1994 refers changes methods accounting postemployment benefits 1993 income taxes 1992 nonpension postretirement benefits 1991 appearing page 19 1993 annual report stockholders international business machines corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedules listed item 14a2 form 10k opinion financial statement schedules present fairly material respects information set forth therein read conjunction related consolidated financial statements price waterhouse 1177 avenue americas new york ny 10036 february 16 1994 schedule v international business machines corporation subsidiary companies plant rental machines property year ended december 31 dollars millions depreciation plant rental machines property carried cost depreciated estimated useful lives using straightline method minor exceptions estimated useful lives depreciable properties follows land improvements 20 years buildings building equipment 5 50 years plant laboratory office equipment 2 16 years rental machines 1 7 years s1 schedule vi international business machines corporation subsidiary companies accumulated depreciation plant rental machines property year ended december 31 dollars millions includes charge accelerated depreciation due restructuring actions taken 1993 1068 million b includes charge accelerated depreciation due restructuring actions taken 1992 4185 million c includes charge accelerated depreciation due restructuring action taken 1991 378 million s2 schedule viii international business machines corporation subsidiary companies valuation qualifying accounts year ended december 31 dollars millions includes additions charged costs expenses less accounts written translation adjustments note receivables upon allowances based highly diversified geography industry individual customer allowances receivable losses year ended 1993 approximate less three onehalf percent companys current receivables less two percent companys noncurrent receivables allowances year ended 1992 approproximate less three percent companys current receivables less two percent companys noncurrent receivables allowances year ended 1991 approximate less two percent categories receivables s3 schedule ix international business machines corporation subsidiary companies shortterm borrowings year ended december 31 dollars millions note balance end period excludes current portion longterm debt 4006 million 3256 million 4363 million years 1993 1992 1991 respectively effective 1993 shortterm loan amounts subsidiaries economic environment highly inflationary primarily denominated us dollars prior years loans denominated local currencies high interest rates operations largely offset effects inflation funds borrowed inflationary effects loans excluded weighted average interest rate yearend would 75 87 years 1992 1991 respectively weighted average interest rate year would 78 90 1992 1991 respectively average amount outstanding year weighted average interest rate year calculated averaging quarterly balances rates s4 schedule x international business machines corporation subsidiary companies supplementary income statement information year ended december 31 dollars millions includes amounts charged accounts including inventories fixed assets s5 exhibit indexitem 14 exhibits financial statement schedules reports form 8k following documents filed part report 1 financial statements ibms 1994 annual report stockholders incorporated herein reference report independent accountants page 35 consolidated statement operations years ended december 31 1994 1993 1992 page 48 consolidated statement financial position december 31 1994 1993 page 49 consolidated statement cash flows years ended december 31 1994 1993 1992 page 50 consolidated statement stockholders equity december 31 1994 1993 1992 page 51 notes consolidated financial statements pages 52 78 2 financial statement schedules required filed item 8 form schedule page number 7 report independent accountants financial statement schedules s1 ii valuation qualifying accounts schedules omitted required matter present amounts significant information shown financial statements notes thereto 3 exhibits included form 10k computation fully diluted earnings per share ii parents subsidiaries iii consent independent accountants iv additional exhibits supplemental consolidated statement operations1994 1993 v bylaws ibm amended february 1 1995 vi ibms 1994 annual report stockholders certain sections incorporated herein reference vii powers attorney viii financial data schedule ix ibm supplemental executive retirement plan x ibm extended tax deferred savings plan xi ibm board directors deferred compensation equity award plan included form 10k certificate incorporation ibm exhibit vi form 10k year ended december 31 1993 hereby incorporated reference copy ibm 1994 longterm performance plan management compensatory plan contained registration statement 3353777 form s8 filed may 24 1994 hereby incorporated reference board directors compensatory plans described directors compensation page 9 ibms definitive proxy statement dated march 14 1995 incorporated herein reference employment agreement lv gerstner jr exhibit 19 form 10q dated march 31 1993 hereby incorporated reference instruments defining rights holders 6 38 notes due 1997 7 14 notes due 2002 exhibits 4a 4l registration statement 3333590 form s3 filed february 22 1990 hereby incorporated reference instruments defining rights holders 9 notes due 1998 exhibit 4 companys quarterly report form 10q quarter ended june 30 1985 exhibit 4b registration statement 336889 form s3 filed july 1 1986 hereby incorporated reference instruments defining rights holders 6 38 notes due 2000 7 12 debentures due 2013 exhibits 4a 4l registration statement 33494751 form s3 filed may 24 1993 hereby incorporated reference instruments defining rights holders 8 38 debentures due 2019 exhibits 4abc registration statement 3331732 form s3 filed october 24 1989 hereby incorporated reference ibms definitive proxy statement dated march 14 1995 certain sections incorporated herein reference b reports form 8k reports form 8k filed last quarter 1994 signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized international business machines corporation registrant louis v gerstnerjr louis v gerstner jr chairman board directors chief executive officer date march 28 1995 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature title date jerome b york senior vice march 28 1995 president jerome b york chief financial officer acting controller director harold brown director james e burke director fritz gerber director nannerl keohane director charles f knight director thomas murphy director lucio noto director sjohn e hickey john b slaughter director alex trotman director john e hickey lodewijk c van wachem director attorneyinfact charles vest director edgar woolard jr director report independent accountants financial statement schedule board directors international business machines corporation audits consolidated financial statements referred report dated january 20 1995 refers changes methods accounting postemployment benefits 1993 income taxes 1992 appearing page 35 1994 annual report stockholders international business machines corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 14a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements price waterhouse llp 1177 avenue americas new york ny 10036 january 20 1995 schedule ii international business machines corporation subsidiary companies valuation qualifying accounts year ended december 31 dollars millions includes additions charged costs expenses less accounts written translation adjustments note receivables upon allowances based highly diversified geography industry individual customer growth companys working capital financing business 1994 concentration financings certain large dealers remarketers information industry products become significant allowances receivable losses year ended 1994 approximate less three onequarter percent companys current receivables less one onehalf percent companys noncurrent receivables allowances year ended 1993 approximate less three onehalf percent companys current receivables less two percent companys noncurrent receivables allowances year ended 1992 approximate less three percent companys current receivables less two percent companys noncurrent receivables s1 exhibit index exhibit computation fully diluted earnings per share treasury stock method set forth accounting principles board opinion 15 1993 1992 1991 incremental shares stock plans effect convertible debentures bonds considered fully diluted earnings per share calculation due antidilutive effect amounts reported primary fully diluted earnings per share 7 78 convertible debentures called redeemed november 21 1992 exhibit ii parents subsidiaries december 31 1994 parents subsidiaries december 31 1994continued footnotes following page footnotes preceding page exhibit iii consent independent accountants hereby consent incorporation reference prospectuses constituting part registration statements form s8 nos 277235 277236 335225 3329022 3333458 3334406 form s3 3350537 3354375 international business machines corporation report dated january 20 1995 appearing page 35 1994 annual report stockholders incorporated annual report form 10k also consent incorporation reference report financial statement schedule appears page 7 form 10k price waterhouse llp 1177 avenue americas new york ny 10036 march 28 1995item 14 exhibits financial statement schedules reports form 8k following documents filed part report 1 financial statements ibms 1995 annual report stockholders incorporated herein reference report independent accountants page 35 consolidated statement operations years ended december 31 1995 1994 1993 page 50 consolidated statement financial position december 31 1995 1994 page 51 consolidated statement cash flows years ended december 31 1995 1994 1993 page 52 consolidated statement stockholders equity december 31 1995 1994 1993 page 53 notes consolidated financial statements pages 54 78 2 financial statement schedules required filed item 8 form schedule page number 8 report independent accountants financial statement schedule s1 ii valuation qualifying accounts schedules omitted required matter present amounts significant information shown financial statements notes thereto 3 exhibits included form 10k computation fully diluted earnings per share ii computation ratio earnings fixed charges earnings combined fixed charges preferred stock dividends iii parents subsidiaries iv consent independent accountants v additional exhibits supplemental consolidated statement operations1995 1994 vi bylaws ibm amended january 30 1996 vii ibms 1995 annual report stockholders certain sections incorporated herein reference viii powers attorney ix financial data schedule x ibm board directors deferred compensation equity award plan xi amendment employment agreement lv gerstner jr dated january 1 1996 included form 10k certificate incorporation ibm exhibit vi form 10k year ended december 31 1993 hereby incorporated reference ibm 1994 longterm performance plan management compensatory plan contained registration statement 3353777 form s8 filed may 24 1994 hereby incorporated reference board directors compensatory plans described directors compensation pages 10 11 ibms definitive proxy statement dated march 18 1996 incorporated herein reference employment agreement lv gerstner jr exhibit 19 form 10q dated march 31 1993 hereby incorporated reference instruments defining rights holders 6 38 notes due 1997 7 14 notes due 2002 exhibits 4a 4l registration statement 3333590 form s3 filed february 22 1990 hereby incorporated reference instruments defining rights holders 6 38 notes due 2000 7 12 debentures due 2013 exhibits 4a 4l registration statement 33494751 form s3 filed may 24 1993 hereby incorporated reference instruments defining rights holders 8 38 debentures due 2019 exhibits 4abc registration statement 3331732 form s3 filed october 24 1989 hereby incorporated reference instruments defining rights holders 7 debentures due 2025 7 debentures due 2045 exhibit 2 3 form 8k filed october 30 1995 hereby incorporated reference ibm supplemental executive retirement plan exhibit ix form 10k year ended december 31 1994 hereby incorporated reference ibm extended tax deferred savings plan exhibit x form 10k year ended december 31 1994 hereby incorporated reference ibms definitive proxy statement dated march 18 1996 certain sections incorporated herein reference b reports form 8k form 8k dated october 30 1995 filed incorporate reference registration statement 3350537 form s3 effective october 26 1993 underwriting agreement dated october 25 1995 among international business machines corporation merrill lynch pierce fenner smith incorporated cs first boston corporation goldman sachs co jp morgan securities inc morgan stanley co incorporated salomon brothers inc addition form 600 million 7 debenture due 2025 form 150 million 7 debenture due 2045 incorporated reference registration statement 3350537 form s3 effective october 26 1993 part form 8k financial statements filed form 8k signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized international business machines corporation registrant louis v gerstner jr louis v gerstner jr chairman board directors chief executive officer date march 26 1996 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated report independent accountants financial statement schedule stockholders board directors international business machines corporation audits consolidated financial statements referred report dated january 19 1996 refers change method accounting postemployment benefits 1993 appearing page 35 1995 annual report stockholders international business machines corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 14a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements price waterhouse llp price waterhouse llp 1177 avenue americas new york ny 10036 january 19 1996 schedule ii international business machines corporation subsidiary companies valuation qualifying accounts year ended december 31 dollars millions includes additions charged costs expenses less accounts written translation adjustments note receivables upon allowances based highly diversified geography industry individual customer growth companys working capital financing business 1995 1994 concentration financings certain large dealers remarketers information industry products become significant allowances receivable losses year ended 1995 approximate less three onehalf percent companys current receivables one onehalf percent companys noncurrent receivables allowances year ended 1994 approximate less three onequarter percent companys current receivables less one onehalf percent companys non current receivables allowances year ended 1993 approximate less three onehalf percent companys current receivables less two percent companys noncurrent receivables s1 exhibit indexitem 14 exhibits financial statement schedules reports form 8k following documents filed part report 1 financial statements ibms 1997 annual report stockholders incorporated herein reference report independent accountants page 39 consolidated statement earnings years ended december 31 1997 1996 1995 page 50 consolidated statement financial position december 31 1997 1996 page 51 consolidated statement cash flows years ended december 31 1997 1996 1995 page 52 consolidated statement stockholders equity december 31 1997 1996 1995 page 53 notes consolidated financial statements pages 54 77 2 financial statement schedules required filed item 8 form schedules omitted required matter present amounts significant information shown financial statements notes thereto 3 exhibits included form 10k computation ratio earnings fixed charges earnings combined fixed charges preferred stock dividends ii parents subsidiaries iii consent independent accountants iv additional exhibits supplemental consolidated statement earnings1997 1996 v bylaws ibm amended january 27 1998 vi second amendment employment agreement lv gerstner jr dated november 17 1997 vii ibms 1997 annual report stockholders certain sections incorporated herein reference viii powers attorney ix financial data schedule included form 10k certificate incorporation ibm exhibit vi form 10k year ended december 31 1993 hereby incorporated reference ibm 1997 longterm performance plan compensatory plan contained registration statement 33331305 form s8 filed july 15 1997 hereby incorporated reference 1994 longterm performance plan management compensatory plan contained registration statement 3353777 form s8 filed may 24 1994 hereby incorporated reference board directors compensatory plans described directors compensation pages 10 11 ibms definitive proxy statement dated march 13 1998 incorporated herein reference ibm board directors deferred compensation equity award plan exhibit x form 10k year ended december 31 1996 hereby incorporated reference employment agreement lv gerstner jr exhibit 19 form 10q dated march 31 1993 hereby incorporated reference amendment employment agreement lv gerstner jr dated january 1 1996 exhibit xi form 10k year ended december 31 1996 hereby incorporated reference instruments defining rights holders 725 notes due 2002 exhibits 4a 4l registration statement 3333590 form s3 filed february 22 1990 hereby incorporated reference instruments defining rights holders 6375 notes due 2000 750 debentures due 2013 exhibits 4a 4l registration statement 33494751 form s3 filed may 24 1993 hereby incorporated reference instruments defining rights holders 8375 debentures due 2019 exhibits 4abc registration statement 3331732 form s3 filed october 24 1989 hereby incorporated reference instruments defining rights holders 700 debentures due 2025 700 debentures due 2045 exhibit 2 3 form 8k filed october 30 1995 hereby incorporated reference instrument defining rights holders 7125 debentures due 2096 exhibit 2 form 8ka filed december 6 1996 hereby incorporated reference instruments defining rights holders 645 notes due 2007 622 debentures due 2027 exhibits 2 3 form 8k filed august 1 1997 hereby incorporated reference instrument defining rights holders 650 debentures due 2028 exhibit 2 form 8k filed january 8 1998 hereby incorporated reference ibm supplemental executive retirement plan exhibit ix form 10k year ended december 31 1994 hereby incorporated reference ibm extended tax deferred savings plan exhibit x form 10k year ended december 31 1994 hereby incorporated reference ibms definitive proxy statement dated march 13 1998 certain sections incorporated herein reference b reports form 8k form 8k dated october 20 1997 filed respect companys financial results periods ended september 30 1997 included unaudited consolidated financial statements period ended september 30 1997 form 8k dated december 15 1997 filed incorporate reference registration statement 33340669 form s3 effective december 12 1997 agency agreement dated december 12 1997 among international business machines corporation credit suisse first boston corporation goldman sachs co merrill lynch pierce fenner smith incorporated morgan stanley co incorporated salomon brothers inc financial statements filed form 8k signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized international business machines corporation registrant louis v gerstner jr louis v gerstner jr chairman board directors chief executive officer date march 27 1998 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature title date lawrence r ricciardi senior vice president general counsel chief march 27 1998 lawrence r ricciardi financial officer john r joyce vice president controller march 27 1998 john r joyce report independent accountants financial statement schedule stockholders board directors international business machines corporation audits consolidated financial statements referred report dated january 19 1998 appearing page 39 1997 annual report stockholders international business machines corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 14a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements price waterhouse llp price waterhouse llp 1177 avenue americas new york ny 10036 january 19 1998 schedule ii international business machines corporation subsidiary companies valuation qualifying accounts year ended december 31 dollars millions includes additions charged costs expenses less accounts written translation adjustments note receivables upon allowances based highly diversified geography industry individual customer allowances receivable losses year ended 1997 approximate less three onequarter percent companys current receivables less one onehalf percent companys noncurrent receivables allowances receivable losses year ended 1996 approximate less three onehalf percent companys current receivables less one onehalf percent companys noncurrent receivables allowances receivable losses year ended 1995 approximate less three onehalf percent companys current receivables one onehalf percent companys noncurrent receivables s1 exhibit indexitem 14 exhibits financial statement schedules reports form 8k following documents filed part report 1 financial statements ibms 1998 annual report stockholders incorporated herein reference report independent accountants page 53 consolidated statement earnings years ended december 31 1998 1997 1996 page 64 consolidated statement financial position december 31 1998 1997 page 65 consolidated statement stockholders equity years ended december 31 1998 1997 1996 pages 66 67 consolidated statement cash flows years ended december 31 1998 1997 1996 page 68 notes consolidated financial statements pages 69 89 2 financial statement schedules required filed item 8 form schedules omitted required matter present amounts significant information shown financial statements notes thereto 3 exhibits included form 10k computation ratio earnings fixed charges earnings combined fixed charges preferred stock dividends ii parents subsidiaries iii consent independent accountants iv additional exhibits quarterly consolidated statement earningsrestated 1998 v ibms 1998 annual report stockholders certain sections incorporated herein reference vi powers attorney vii financial data schedule included form 10k certificate incorporation ibm exhibit 3i form 8k dated april 29 1997 hereby incorporated reference bylaws ibm amended october 27 1998 exhibit 3 form 10q quarter ended september 30 1998 hereby incorporated reference ibm 1997 longterm performance plan compensatory plan contained registration statement 33331305 form s8 filed july 15 1997 hereby incorporated reference ibm 1994 longterm performance plan management compensatory plan contained registration statement 3353777 form s8 filed may 24 1994 hereby incorporated reference board directors compensatory plans described directors compensation pages 9 10 ibms definitive proxy statement dated march 23 1999 incorporated herein reference ibm board directors deferred compensation equity award plan exhibit x form 10k year ended december 31 1996 hereby incorporated reference employment agreement lv gerstner jr exhibit 19 form 10q dated march 31 1993 hereby incorporated reference amendment employment agreement lv gerstner jr dated january 1 1996 exhibit xi form 10k year ended december 31 1996 hereby incorporated reference second amendment employment agreement lv gerstner jr dated november 17 1997 exhibit vi form 10k year ended december 31 1997 hereby incorporated reference instruments defining rights holders 725 notes due 2002 exhibits 4a 4l registration statement 3333590 form s3 filed february 22 1990 hereby incorporated reference instruments defining rights holders 6375 notes due 2000 750 debentures due 2013 exhibits 4a 4l registration statement 33494751 form s3 filed may 24 1993 hereby incorporated reference instruments defining rights holders 8375 debentures due 2019 exhibits 4abc registration statement 3331732 form s3 filed october 24 1989 hereby incorporated reference instruments defining rights holders 700 debentures due 2025 700 debentures due 2045 exhibits 2 3 form 8k filed october 30 1995 hereby incorporated reference instrument defining rights holders 7125 debentures due 2096 exhibit 2 form 8ka filed december 6 1996 hereby incorporated reference instruments defining rights holders 645 notes due 2007 622 debentures due 2027 exhibits 2 3 form 8k filed august 1 1997 hereby incorporated reference instruments defining rights holders 650 debentures due 2028 exhibit 2 form 8k filed january 8 1998 hereby incorporated reference instrument defining rights holders 5375 notes due 2009 exhibit 2 form 8k filed january 29 1999 hereby incorporated reference ibm supplemental executive retirement plan exhibit ix form 10k year ended december 31 1994 hereby incorporated reference ibm extended tax deferred savings plan exhibit x form 10k year ended december 31 1994 hereby incorporated reference ibms definitive proxy statement dated march 23 1999 certain sections incorporated herein reference b reports form 8k form 8k dated october 20 1998 filed respect companys financial results periods ended september 30 1998 included unaudited consolidated financial statements period ended september 30 1998 form 8k dated december 16 1998 filed press release announcing execution definitive agreements ibm att pursuant among things att acquire assets ibm global network ibm hereby incorporated reference signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized date march 29 1999 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature title date douglas l maine senior vice president march 29 1999 chief douglas l maine financial officer mark loughridge vice president march 29 1999 controller mark loughridge report independent accountants financial statement schedule stockholders board directors international business machines corporation audits consolidated financial statements referred report dated january 21 1999 appearing page 53 1998 annual report stockholders international business machines corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule item 14a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp pricewaterhousecoopers llp 1301 avenue americas new york ny 10019 january 21 1999 schedule ii international business machines corporation subsidiary companies valuation qualifying accounts year ended december 31 dollars millions includes additions charged costs expenses less accounts written translation adjustments note receivables upon allowances based highly diversified geography industry individual customer allowances receivable losses yearend 1998 approximate less three percent companys current receivables less one onehalf percent companys noncurrent receivables allowances receivable losses yearend 1997 approximate less three onequarter percent companys current receivables less one onehalf percent companys noncurrent receivables allowances receivable losses yearend 1996 approximate less three onehalf percent companys current receivables one onehalf percent companys noncurrent receivables s1 exhibit index exhibit computation ratio earnings fixed charges earnings combined fixed charges preferred stock dividends unaudited 1 earnings income taxes changes accounting principle excludes amortization expense capitalized interest well companys share income losses lessthanfiftypercentowned affiliates 2 company reported preferred stock dividends 20 million yearend 1998 1997 1996 respectively excluded ratio computation year end 1995 transaction costs 42 million relating repurchase series 7 12 percent preferred stock depositary shares included preferred stock dividends 20 million 1998 1997 1996 respectively 29 million 1998 1997 32 million 1996 representing pretax income would required cover dividend requirements based companys effective tax rate year end 1998 1997 1996 respectively 1995 1994 year ends preferred stock dividends also pretax basis exhibit ii parents subsidiaries parents subsidiaries december 31 1998 parents subsidiaries parents subsidiaries minor percentage held ibm shareholders subject repurchase option b ibm eurocoordination owned approximately 14 subsidiaries located france germany italy united kingdom approximately 4 subsidiaries located austria belgium denmark finland ireland netherlands norway portugal spain sweden switzerland four minority shareholders c remaining percentage owned another whollyowned ibm company ibm france ibm finland 166 ibm denmark ibm switzerland 333 ibm international treasury services company e minor percentage held another ibm shareholder exhibit iii consent independent accountants hereby consent incorporation reference registration statements form s8 nos 277235 3329022 3333458 3334406 3353777 3360225 3360227 3360237 3360815 33301411 33309055 33323315 33331305 33341813 33344981 33348435 prospectuses constituting part registration statements form s3 nos 3350537 3365119 33651191 33303763 33321073 33327669 33340669 33370521 international business machines corporation report dated january 21 1999 appearing page 53 1998 annual report stockholders incorporated annual report form 10k also consent incorporation reference report financial statement schedule appears page 11 form 10k pricewaterhousecoopers llp pricewaterhousecoopers llp 1301 avenue americas new york ny 10019 march 26 1999 exhibit iv international business machines corporation subsidiary companies additional exhibits effective december 31 1998 company adopted statement financial accounting standards 131 disclosures segments enterprise related information result adopting standard company changed revenue cost lines consolidated statement earnings generally aligning new segment information 1998 quarterly consolidated statements earnings restated exhibit iva additional information companys segments found note segment information pages 84 89 1998 annual report stockholders exhibit iva international business machines corporation subsidiary companies quarterly consolidated statement earningsrestated see text exhibit iv unauditeditem 14 exhibits financial statement schedules reports form 8k following documents filed part report 1 financial statements ibms 1999 annual report stockholders incorporated herein reference report independent accountants page 51 consolidated statement earnings years ended december 31 1999 1998 1997 page 64 consolidated statement financial position december 31 1999 1998 page 65 consolidated statement cash flows years ended december 31 1999 1998 1997 page 68 consolidated statement stockholders equity december 31 1999 1998 1997 pages 66 67 notes consolidated financial statements pages 69 93 2 financial statement schedules required filed item 8 form schedules omitted required matter present amounts significant information shown consolidated financial statements notes thereto 3 exhibits included form 10k computation ratio earnings fixed charges earnings combined fixed charges preferred stock dividends ii parents subsidiaries iii consent independent accountants iv ibms 1999 annual report stockholders certain sections incorporated herein reference v powers attorney vi financial data schedule vii ibm supplemental executive retention plan included form 10k certificate incorporation ibm exhibit 3i form 8k filed april 28 1999 hereby incorporated reference bylaws ibm amended october 27 1998 exhibit 3 form 10q quarter ended september 30 1998 hereby incorporated reference ibm 1999 longterm performance plan compensatory plan contained registration statement 33330424 form s8 filed february 15 2000 hereby incorporated reference ibm 1997 longterm performance plan compensatory plan contained registration statement 33331305 form s8 filed july 15 1997 hereby incorporated reference ibm 1994 longterm performance plan compensatory plan contained registration statement 3353777 form s8 filed may 24 1994 hereby incorporated reference board directors compensatory plans described directors compensation pages 9 10 ibms definitive proxy statement dated march 13 2000 incorporated herein reference ibm board directors deferred compensation equity award plan exhibit x form 10k year ended december 31 1996 hereby incorporated reference ibm nonemployee directors stock option plan appendix b ibms definitive proxy statement dated march 14 1995 hereby incorporated reference ibm extended tax deferred savings plan exhibit x form 10k year ended december 31 1994 hereby incorporated reference employment agreement lv gerstner jr exhibit 19 form 10q dated march 31 1993 hereby incorporated reference amendment employment agreement lv gerstner jr dated january 1 1996 exhibit xi form 10k year ended december 31 1995 hereby incorporated reference second amendment employment agreement lv gerstner jr dated november 17 1997 exhibit vi form 10k year ended december 31 1997 hereby incorporated reference instruments defining rights holders 725 notes due 2002 exhibits 4a 4l registration statement 3333590 form s3 filed february 22 1990 hereby incorporated reference instruments defining rights holders 6375 notes due 2000 750 debentures due 2013 exhibits 4a 4l registration statement 33494751 form s3 filed may 24 1993 hereby incorporated reference instruments defining rights holders 8375 debentures due 2019 exhibits 4abc registration statement 3331732 form s3 filed october 24 1989 hereby incorporated reference instruments defining rights holders 700 debentures due 2025 700 debentures due 2045 exhibit 2 3 form 8k filed october 30 1995 hereby incorporated reference instrument defining rights holders 7125 debentures due 2096 exhibit 2 form 8ka filed december 6 1996 hereby incorporated reference instruments defining rights holders 645 notes due 2007 622 debentures due 2027 exhibits 2 3 form 8k filed august 1 1997 hereby incorporated reference instruments defining rights holders 650 debentures due 2028 exhibit 2 form 8k filed january 8 1998 hereby incorporated reference instruments defining rights holders 5375 notes due 2009 exhibit 2 form 8k filed january 29 1999 hereby incorporated reference ibm extended tax deferred savings plan exhibit x form 10k year ended december 31 1994 hereby incorporated reference ibms definitive proxy statement dated march 13 2000 certain sections incorporated herein reference b reports form 8k company filed form 8k october 21 1999 respect companys financial results periods ended september 30 1999 included unaudited consolidated statement earnings consolidated statement financial position segment data periods ended september 30 1999 signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized date march 13 2000 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated report independent accountants financial statement schedules stockholders board directors international business machines corporation audits consolidated financial statements referred report dated january 19 2000 appearing page 51 1999 annual report stockholders international business machines corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 14a2 form 10k opinion financial statement schedule present fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp pricewaterhousecoopers llp new york new york january 19 2000 schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions primarily comprises currency translation adjustments s1 exhibit indexitem 14 exhibits financial statement schedules reports form 8k following documents filed part report 1 financial statements ibms 2000 annual report stockholders incorporated herein reference report independent accountants page 51 consolidated statement earnings years ended december 31 2000 1999 1998 page 64 consolidated statement financial position december 31 2000 1999 page 65 consolidated statement stockholders equity december 31 2000 1999 1998 pages 66 67 consolidated statement cash flows years ended december 31 2000 1999 1998 page 68 notes consolidated financial statements pages 69 93 2 financial statement schedules required filed item 8 form schedules omitted required matter present amounts significant information shown consolidated financial statements notes thereto 3 exhibits included form 10k included form 10k b reports form 8k company filed form 8k october 17 2000 respect companys financial results periods ended september 30 2000 included unaudited consolidated statement earnings consolidated statement financial position segment data periods ended september 30 2000 addition ibms chief financial officer john r joyces thirdquarter earnings presentation securities analysts tuesday october 17 2000 filed attachment ii form 8k signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated report independent accountants financial statement schedules stockholders board directors international business machines corporation audits consolidated financial statements referred report dated january 17 2001 appearing page 51 2000 annual report stockholders international business machines corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 14a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp pricewaterhousecoopers llp new york new york january 17 2001 schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions primarily comprises currency translation adjustments s1 exhibit indexitem 14 exhibits financial statement schedules reports form 8k following documents filed part report 1 financial statements ibms 2001 annual report stockholders incorporated herein reference report independent accountants page 54 consolidated statement earnings years ended december 31 2001 2000 1999 page 70 consolidated statement financial position december 31 2001 2000 page 71 consolidated statement stockholders equity december 31 2001 2000 1999 pages 72 73 consolidated statement cash flows years ended december 31 2001 2000 1999 page 74 notes consolidated financial statements pages 75 105 2 financial statement schedules required filed item 8 form schedules omitted required matter present amounts significant information shown consolidated financial statements notes thereto 3 exhibits included form 10k included form 10k b reports form 8k company filed form 8k october 16 2001 respect companys financial results periods ended september 30 2001 included unaudited consolidated statement earnings consolidated statement financial position segment data periods ended september 30 2001 addition ibms chief financial officer john r joyces third quarter earnings presentation securities analysts tuesday october 16 2001 filed attachment ii form 8k signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized international business machines corporation registrant samuel j palmisano samuel j palmisano president chief executive officer date march 11 2002 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated report independent accountants financial statement schedules stockholders board directors international business machines corporation audits consolidated financial statements referred report dated january 17 2002 appearing page 54 2001 annual report stockholders international business machines corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 14a2 form 10k opinion financial statement schedule present fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp pricewaterhousecoopers llp new york new york january 17 2002 schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions primarily comprises currency translation adjustments s1 exhibit indexitem 14 controls procedures based evaluation companys disclosure controls procedures date within 90 days filing report chief executive officer chief financial officer concluded controls procedures effective significant changes companys internal controls factors could significantly affect controls subsequent date evaluation part iv item 15item 14 principal accountant fees services refer section entitled audit nonaudit fees appearing page 21 ibms definitive proxy statement filed march 8 2004 incorporated herein reference part iv item 15item 14 principal accountant fees services refer information captions report audit committee board directors audit nonaudit fees ibms definitive proxy statement filed securities exchange commission delivered stockholders connection annual meeting stockholders held april 26 2005 information incorporated herein reference part iv item 15item 14 principal accountant fees services refer information captions report audit committee board directors audit nonaudit fees ibms definitive proxy statement filed securities exchange commission delivered stockholders connection annual meeting stockholders held april 25 2006 information incorporated herein reference part iv item 15item 14 principal accounting fees services refer information captions report audit committee board directors audit nonaudit fees ibms definitive proxy statement filed securities exchange commission delivered stockholders connection annual meeting stockholders held april 28 2009 information incorporated herein reference part iv item 15item 14 principal accounting fees services refer information captions report audit committee board directors audit nonaudit fees ibms definitive proxy statement filed securities exchange commission delivered stockholders connection annual meeting stockholders held april 27 2010 information incorporated herein reference part iv item 15item 14 principal accounting fees services refer information captions report audit committee board directors audit nonaudit fees ibms definitive proxy statement filed securities exchange commission delivered stockholders connection annual meeting stockholders held april 26 2011 information incorporated herein reference part iv item 15item 14 principal accounting fees services refer information captions report audit committee board directors audit nonaudit fees ibms definitive proxy statement filed securities exchange commission delivered stockholders connection annual meeting stockholders held april 24 2012 information incorporated herein reference part iv item 15item 14 principal accounting fees services refer information captions report audit committee board directors audit nonaudit fees ibms definitive proxy statement filed securities exchange commission delivered stockholders connection annual meeting stockholders held april 30 2013 information incorporated herein reference part iv item 15item 14 principal accounting fees services refer information captions report audit committee board directors audit nonaudit fees ibms definitive proxy statement filed securities exchange commission delivered stockholders connection annual meeting stockholders held april 29 2014 information incorporated herein reference part iv item 15item 14 principal accounting fees services refer information captions report audit committee board directors audit nonaudit fees ibms definitive proxy statement filed securities exchange commission delivered stockholders connection annual meeting stockholders held april 28 2015 information incorporated herein reference part iv item 15item 14 principal accounting fees services refer information captions report audit committee board directors audit nonaudit fees ibms definitive proxy statement filed securities exchange commission delivered stockholders connection annual meeting stockholders held april 26 2016 information incorporated herein reference part iv item 15item 14 principal accounting fees services refer information captions report audit committee board directors audit nonaudit fees ibms definitive proxy statement filed securities exchange commission delivered stockholders connection annual meeting stockholders held april 25 2017 information incorporated herein reference part iv item 15item 14 principal accounting fees services refer information captions report audit committee board directors audit nonaudit fees ibms definitive proxy statement filed sec delivered stockholders connection annual meeting stockholders held april 30 2019 information incorporated herein reference part iv item 15item 14 principal accounting fees services refer information captions “report audit committee board directors” “audit nonaudit fees” ibm’s definitive proxy statement filed sec delivered stockholders connection annual meeting stockholders held april 28 2020 information incorporated herein reference part iv item 15item 14 principal accounting fees services refer information captions “report audit committee board directors” “audit nonaudit fees” ibm’s definitive proxy statement filed sec delivered stockholders connection annual meeting stockholders held april 27 2021 information incorporated herein reference part iv item 15item 14 exhibits financial statement schedules reports form 8k following documents filed part report 1 financial statements ibms 1996 annual report stockholders incorporated herein reference report independent accountants page 43 consolidated statement earnings years ended december 31 1996 1995 1994 page 56 consolidated statement financial position december 31 1996 1995 page 57 consolidated statement cash flows years ended december 31 1996 1995 1994 page 58 consolidated statement stockholders equity december 31 1996 1995 1994 page 59 notes consolidated financial statements pages 60 85 2 financial statement schedules required filed item 8 form schedules omitted required matter present amounts significant information shown financial statements notes thereto 3 exhibits included form 10k icomputation fully diluted earnings per share ii computation ratio earnings fixed charges earnings combined fixed charges preferred stock dividends iiiparents subsidiaries ivconsent independent accountants v additional exhibits supplemental consolidated statement earnings1996 1995 vithe bylaws ibm amended april 30 1996 vii ibms 1996 annual report stockholders certain sections incorporated herein reference viiipowers attorney ixfinancial data schedule included form 10k certificate incorporation ibm exhibit vi form 10k year ended december 31 1993 hereby incorporated reference ibm 1994 longterm performance plan management compensatory plan contained registration statement 3353777 form s8 filed may 24 1994 hereby incorporated reference board directors compensatory plans described directors compensation pages 10 11 ibms definitive proxy statement dated march 18 1997 incorporated herein reference ibm board directors deferred compensation equity award plan exhibit x form 10k year ended december 31 1995 hereby incorporated reference employment agreement lv gerstner jr exhibit 19 form 10q dated march 31 1993 hereby incorporated reference amendment employment agreement lv gerstner jr dated january 1 1996 exhibit xi form 10k year ended december 31 1995 hereby incorporated reference instruments defining rights holders 6 38 notes due 1997 7 14 notes due 2002 exhibits 4a 4l registration statement 3333590 form s3 filed february 22 1990 hereby incorporated reference instruments defining rights holders 6 38 notes due 2000 7 12 debentures due 2013 exhibits 4a 4l registration statement 33494751 form s3 filed may 24 1993 hereby incorporated reference instruments defining rights holders 8 38 debentures due 2019 exhibits 4abc registration statement 3331732 form s3 filed october 24 1989 hereby incorporated reference instruments defining rights holders 7 debentures due 2025 7 debentures due 2045 exhibit 2 3 form 8k filed october 30 1995 hereby incorporated reference instrument defining rights holders 7 18 debentures due 2096 exhibit 2 form 8ka filed december 6 1996 hereby incorporated reference ibm supplemental executive retirement plan exhibit ix form 10k year ended december 31 1994 hereby incorporated reference ibm extended tax deferred savings plan amended restated effective january 1 1996 exhibit 10 form 10q quarter ended march 31 1996 hereby incorporated reference ibm tax deferred savings plan amended restated june 15 1996 exhibit 4 registration statment 33309055 form s8 filed july 29 1996 hereby incorporated reference ibms definitive proxy statement dated march 18 1997 certain sections incorporated herein reference b reports form 8k form 8k dated october 21 1996 filed respect companys financial results periods ended september 30 1996 included unaudited consolidated financial statements period ended september 30 1996 form 8k dated december 5 1996 form 8ka dated december 6 1996 filed incorporate reference registration statement 3365119 form s3 effective february 7 1996 underwriting agreement dated december 3 1996 among international business machines corporation salomon brothers inc chase securities inc cs first boston corporation merrill lynch pierce fenner smith incorporated morgan stanley co incorporated addition form 850 million 7 18 debenture due 2096 incorporated reference registration statement 3365119 form s3 effective february 7 1996 part form 8k form 8ka financial statements filed form 8k form 8ka signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized international business machines corporation registrant louis v gerstner jr louis v gerstner jr chairman board directors chief executive officer date march 26 1997 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature title date g richard thoman senior vice president chief financial march 26 1997 g richard thoman officer john r joyce vice president controller march 26 1997 john r joyce report independent accountants financial statement schedule stockholders board directors international business machines corporation audits consolidated financial statements referred report dated january 20 1997 appearing page 43 1996 annual report stockholders international business machines corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 14a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements price waterhouse llp price waterhouse llp 1177 avenue americas new york ny 10036 january 20 1997 schedule ii international business machines corporation subsidiary companies valuation qualifying accounts year ended december 31 dollars millions includes additions charged costs expenses less accounts written translation adjustments note receivables upon allowances based highly diversified geography industry individual customer allowances receivable losses year ended 1996 approximate less three onehalf percent companys current receivables less one half percent companys noncurrent receivables allowances receiveable losses year ended 1995 approximate less three onehalf percent companys current receivables one onehalf percent noncurrent receivables allowances receivable losses year ended 1994 approximate less three onequarter percent companys current receivables less one onehalf percent companys noncurrent receivables s1 exhibit indexitem 14 principal accounting fees services refer information captions report audit committee board directors audit nonaudit fees ibms definitive proxy statement filed securities exchange commission delivered stockholders connection annual meeting stockholders held april 24 2018 information incorporated herein reference part iv item 15item 14 principal accounting fees services refer information captions report audit committee board directors audit nonaudit fees ibms definitive proxy statement filed securities exchange commission delivered stockholders connection annual meeting stockholders held april 24 2007 information incorporated herein reference part iv item 15item 14 principal accounting fees services refer information captions report audit committee board directors audit nonaudit fees ibms definitive proxy statement filed securities exchange commission delivered stockholders connection annual meeting stockholders held april 29 2008 information incorporated herein reference part iv item 15 item 7 managements discussion analysis financial condition results operations refer pages 20 31 ibms 1993 annual report stockholders incorporated herein reference march 1 1994 loral corporation completed acquisition federal systems company 1503 billion cash amount gain resulting sale may dependent future performance advanced automation system contract federal aviation authority certain open matters item 8item 7 managements discussion analysis financial condition results operations refer pages 36 47 ibms 1994 annual report stockholders incorporated herein reference item 8item 7 managements discussion analysis financial condition results operations refer pages 36 49 ibms 1995 annual report stockholders incorporated herein reference item 8item 7 managements discussion analysis financial condition results operations refer pages 40 49 ibms 1997 annual report stockholders incorporated herein reference item 7aitem 7 managements discussion analysis financial condition results operations refer pages 54 63 ibms 1998 annual report stockholders incorporated herein reference item 7aitem 7 managements discussion analysis financial condition results operations refer pages 52 63 ibms 1999 annual report stockholders incorporated herein reference item 7aitem 7 managements discussion analysis financial condition results operations refer pages 52 63 ibms 2000 annual report stockholders incorporated herein reference item 7aitem 7 managements discussion analysis financial condition results operations refer pages 55 69 ibms 2001 annual report stockholders incorporated herein reference item 7aitem 7 managements discussion analysis financial condition results operations refer pages 43 63 ibms 2002 annual report stockholders incorporated herein reference item 7aitem 7 managements discussion analysis financial condition results operations refer pages 43 73 ibms 2003 annual report stockholders incorporated herein reference item 7aitem 7 managements discussion analysis financial condition results operations refer pages 11 39 ibms 2004 annual report stockholders incorporated herein reference item 7aitem 7 managements discussion analysis financial condition results operations refer pages 14 47 ibms 2005 annual report stockholders incorporated herein reference item 7aitem 7 managements discussion analysis financial condition results operations refer pages 18 57 ibms 2008 annual report stockholders incorporated herein reference addition information management discussion page 19 ibms 2008 annual report 2008 gross profit increased 9 percent 9 percent adjusted currency growth markets increased 11 percent 7 percent adjusted currency major markets versus 2007 item 7aitem 7 managements discussion analysis financial condition results operations refer pages 18 61 ibms 2009 annual report stockholders incorporated herein reference item 7aitem 7 managements discussion analysis financial condition results operations refer pages 18 59 ibms 2010 annual report stockholders incorporated herein reference item 7aitem 7 managements discussion analysis financial condition results operations refer pages 18 67 ibms 2011 annual report stockholders incorporated herein reference item 7aitem 7 managements discussion analysis financial condition results operations refer pages 18 67 ibms 2012 annual report stockholders incorporated herein reference item 7aitem 7 managements discussion analysis financial condition results operations refer pages 26 75 ibms 2013 annual report stockholders incorporated herein reference item 7aitem 7 managements discussion analysis financial condition results operations refer pages 22 77 ibms 2014 annual report stockholders incorporated herein reference item 7aitem 7 managements discussion analysis financial condition results operations refer pages 18 73 ibms 2015 annual report stockholders incorporated herein reference item 7aitem 7 managements discussion analysis financial condition results operations refer pages 26 81 ibms 2016 annual report stockholders incorporated herein reference item 7aitem 7 managements discussion analysis financial condition results operations refer pages 18 67 ibms 2018 annual report stockholders incorporated herein reference item 7aitem 7 management’s discussion analysis financial condition results operations refer pages 26 64 ibm’s 2019 annual report stockholders incorporated herein reference item 7aitem 7 management’s discussion analysis financial condition results operations refer pages 18 64 ibm’s 2020 annual report stockholders incorporated herein reference item 7aitem 7 managements discussion analysis financial condition results operations refer pages 44 55 ibms 1996 annual report stockholders incorporated herein reference january 28 1997 ibm board directors declared twoforone common stock split subject approval stockholders increase number common shares authorized 750 million 1875 million record date split currently expected may 9 1997 distribution split shares follow may 27 1997 item 8item 7 managements discussion analysis financial condition results operations refer pages 26 75 ibms 2017 annual report stockholders incorporated herein reference item 7aitem 7 managements discussion analysis financial condition results operations refer pages 12 53 ibms 2006 annual report stockholders incorporated herein reference item 7aitem 7 managements discussion analysis financial condition results operations refer pages 14 55 ibms 2007 annual report stockholders incorporated herein reference item 7a nannannanitem 7a quantitative qualitative disclosures market risk refer section titled market risk page 46 ibms 1997 annual report stockholders incorporated herein reference item 8item 7a quantitative qualitative disclosures market risks refer section titled market risk pages 60 61 ibms 1998 annual report stockholders incorporated herein reference item 8item 7a quantitative qualitative disclosures market risks refer section titled market risk pages 61 62 ibms 1999 annual report stockholders incorporated herein reference item 8item 7a quantitative qualitative disclosures market risks refer section titled market risk pages 61 62 ibms 2000 annual report stockholders incorporated herein reference item 8item 7a quantitative qualitative disclosures market risks refer section titled market risk pages 68 69 ibms 2001 annual report stockholders incorporated herein reference item 8item 7a quantitative qualitative disclosures market risks refer section titled market risk pages 58 59 ibms 2002 annual report stockholders incorporated herein reference item 8item 7a quantitative qualitative disclosures market risks refer section titled market risk page 68 ibms 2003 annual report stockholders incorporated herein reference item 8item 7a quantitative qualitative disclosures market risks refer section titled market risk page 33 34 ibms 2004 annual report stockholders incorporated herein reference item 8item 7a quantitative qualitative disclosures market risks refer section titled market risk page 42 43 ibms 2005 annual report stockholders incorporated herein reference item 8item 7a quantitative qualitative disclosures market risk refer section titled market risk pages 51 52 ibms 2008 annual report stockholders incorporated herein reference item 8item 7a quantitative qualitative disclosures market risk refer section titled market risk pages 55 56 ibms 2009 annual report stockholders incorporated herein reference item 8item 7a quantitative qualitative disclosures market risk refer section titled market risk pages 53 54 ibms 2010 annual report stockholders incorporated herein reference item 8item 7a quantitative qualitative disclosures market risk refer section titled market risk pages 61 62 ibms 2011 annual report stockholders incorporated herein reference item 8item 7a quantitative qualitative disclosures market risk refer section titled market risk page 62 ibms 2012 annual report stockholders incorporated herein reference item 8item 7a quantitative qualitative disclosures market risk refer section titled market risk pages 70 71 ibms 2013 annual report stockholders incorporated herein reference item 8item 7a quantitative qualitative disclosures market risk refer section titled market risk page 72 ibms 2014 annual report stockholders incorporated herein reference item 8item 7a quantitative qualitative disclosures market risk refer section titled market risk page 68 ibms 2015 annual report stockholders incorporated herein reference item 8item 7a quantitative qualitative disclosures market risk refer section titled market risk pages 74 75 ibms 2016 annual report stockholders incorporated herein reference item 8item 7a quantitative qualitative disclosures market risk refer section titled market risk pages 66 67 ibms 2018 annual report stockholders incorporated herein reference item 8item 7a quantitative qualitative disclosures market risk refer section titled “market risk” pages 63 64 ibm’s 2019 annual report stockholders incorporated herein reference item 8item 7a quantitative qualitative disclosures market risk refer section titled “market risk” pages 63 64 ibm’s 2020 annual report stockholders incorporated herein reference item 8nanitem 7a quantitative qualitative disclosures market risk refer section titled market risk page 74 ibms 2017 annual report stockholders incorporated herein reference item 8item 7a quantitative qualitative disclosures market risks refer section titled market risk pages 47 48 ibms 2006 annual report stockholders incorporated herein reference item 8item 7a quantitative qualitative disclosures market risks refer section titled market risk pages 49 50 ibms 2007 annual report stockholders incorporated herein reference item 8 item 8 financial statements supplementary data refer pages 18 19 32 62 ibms 1993 annual report stockholders incorporated herein reference also refer financial statement schedules pages s1 s5 form item 9item 8 financial statements supplementary data refer pages 34 35 48 78 ibms 1994 annual report stockholders incorporated herein reference also refer financial statement schedule page s1 form item 9item 8 financial statements supplementary data refer pages 34 35 50 78 ibms 1995 annual report stockholders incorporated herein reference also refer financial statement schedule page s1 form item 9item 8 financial statements supplementary data refer pages 38 39 50 77 ibms 1997 annual report stockholders incorporated herein reference also refer financial statement schedule page s1 form item 9item 8 financial statements supplementary data refer pages 52 53 64 89 ibms 1998 annual report stockholders incorporated herein reference also refer financial statement schedule page s1 form item 9item 8 financial statements supplementary data refer pages 50 51 64 93 ibms 1999 annual report stockholders incorporated herein reference also refer financial statement schedule page s1 form item 9item 8 financial statements supplementary data refer pages 50 51 64 93 ibms 2000 annual report stockholders incorporated herein reference also refer financial statement schedule page s1 form item 9item 8 financial statements supplementary data refer page 54 70 105 ibms 2001 annual report stockholders incorporated herein reference also refer financial statement schedule page s1 form item 9item 8 financial statements supplementary data refer page 42 64 104 ibms 2002 annual report stockholders incorporated herein reference also refer financial statement schedule page s1 form item 9item 8 financial statements supplementary data refer pages 42 74 121 ibms 2003 annual report stockholders incorporated herein reference also refer financial statement schedule page s1 form item 9item 8 financial statements supplementary data refer pages 9 10 40 91 ibms 2004 annual report stockholders incorporated herein reference also refer financial statement schedule page s1 form item 9item 8 financial statements supplementary data refer pages 12 13 48 100 ibms 2005 annual report stockholders incorporated herein reference also refer financial statement schedule page s1 form item 9item 8 financial statements supplementary data refer pages 60 119 ibms 2008 annual report stockholders incorporated herein reference also refer financial statement schedule page s1 form 10k item 9item 8 financial statements supplementary data refer pages 64 126 ibms 2009 annual report stockholders incorporated herein reference also refer financial statement schedule page s1 form 10k item 9item 8 financial statements supplementary data refer pages 62 130 ibms 2010 annual report stockholders incorporated herein reference also refer financial statement schedule page s1 form 10k item 9item 8 financial statements supplementary data refer pages 70 139 ibms 2011 annual report stockholders incorporated herein reference also refer financial statement schedule page s1 form 10k item 9item 8 financial statements supplementary data refer pages 70 138 ibms 2012 annual report stockholders incorporated herein reference also refer financial statement schedule page s1 form 10k item 9item 8 financial statements supplementary data refer pages 78 146 ibms 2013 annual report stockholders incorporated herein reference also refer financial statement schedule page s1 form 10k item 9item 8 financial statements supplementary data refer pages 80 150 ibms 2014 annual report stockholders incorporated herein reference also refer financial statement schedule page s1 form 10k item 9item 8 financial statements supplementary data refer pages 76 146 ibms 2015 annual report stockholders incorporated herein reference also refer financial statement schedule page s1 form 10k item 9item 8 financial statements supplementary data refer pages 84 154 ibms 2016 annual report stockholders incorporated herein reference also refer financial statement schedule page s1 form 10k item 9item 8 financial statements supplementary data refer pages 70 146 ibms 2018 annual report stockholders incorporated herein reference also refer financial statement schedule page s1 form 10k item 9item 8 financial statements supplementary data refer pages 68 138 ibm’s 2019 annual report stockholders incorporated herein reference also refer financial statement schedule page s1 form 10k item 9item 8 financial statements supplementary data refer pages 68 140 ibm’s 2020 annual report stockholders incorporated herein reference also refer financial statement schedule page s1 form 10k early adopted recent amendment regulation sk item 302 replaces current requirement quarterly tabular disclosure principlesbased requirement material retrospective changes item 9item 8 financial statements supplementary data refer pages 42 43 56 85 ibms 1996 annual report stockholders incorporated herein reference also refer financial statement schedule page s1 form item 9item 8 financial statements supplementary data refer pages 78 146 ibms 2017 annual report stockholders incorporated herein reference also refer financial statement schedule page s1 form 10k item 9item 8 financial statements supplementary data refer pages 54 115 ibms 2006 annual report stockholders incorporated herein reference also refer financial statement schedule page s1 form item 9item 8 financial statements supplementary data refer pages 58 119 ibms 2007 annual report stockholders incorporated herein reference also refer financial statement schedule page s1 form item 9 nannannannannannannannanitem 15 exhibits financial statement schedules reports form 8k athe following documents filed part report 1financial statements ibms 2002 annual report stockholders incorporated herein reference report independent accountants page 42 consolidated statement earnings years ended december 31 2002 2001 2000 page 64 consolidated statement financial position december 31 2002 2001 page 65 consolidated statement stockholders equity december 31 2002 2001 2000 pages 66 68 consolidated statement cash flows years ended december 31 2002 2001 2000 page 69 notes consolidated financial statements pages 70 104 2financial statement schedules required filed item 8 form page schedule number report independent accountants financial statement schedule report independent auditors s1 ii valuation qualifying accounts reserves schedules omitted required matter present amounts significant information shown consolidated financial statements notes thereto 3exhibits included form 10k computation ratio earnings continuing operations fixed charges earnings continuing operations combined fixed charges preferred stock dividends ibms 2002 annual report stockholders certain sections incorporated herein reference parents subsidiaries 231 consent independent accountants 232 consent independent auditors 241 powers attorney 242 certified resolutions ibm board directors authorizing execution report powers attorney 991 certification ceo pursuant 18 usc section 1350 adopted pursuant section 906 sarbanesoxley act 2002 992 certification cfo pursuant 18 usc section 1350 adopted pursuant section 906 sarbanesoxley act 2002 included form 10k certificate incorporation ibm exhibit 3i form 8k filed april 28 1999 hereby incorporated reference bylaws ibm amended january 1 2003 attachment iii exhibit 993 form 8k dated january 16 2003 hereby incorporated reference ibm 2001 longterm performance plan compensatory plan contained registration statement 33387708 form s8 filed may 7 2002 hereby incorporated reference ibm 1999 longterm performance plan compensatory plan contained registration statement 33330424 form s8 filed february 15 2000 hereby incorporated reference ibm 1997 longterm performance plan compensatory plan contained registration statement 33331305 form s8 filed july 15 1997 hereby incorporated reference ibm pwcc acquisition longterm performance plan compensatory plan contained registration statement 333102872 form s8 filed january 31 2003 hereby incorporated reference board directors compensatory plans described directors compensation pages 9 10 ibms definitive proxy statement dated march 10 2003 hereby incorporated reference ibm board directors deferred compensation equity award plan exhibit x form 10k year ended december 31 1996 hereby incorporated reference ibm nonemployee directors stock option plan appendix b ibms definitive proxy statement dated march 14 1995 hereby incorporated reference ibm executive deferred compensation plan contained registration statement 33333692 exhibit 4 form s8 filed march 31 2000 hereby incorporated reference ibm supplemental executive retention plan exhibit vii form 10k year ended december 31 1999 hereby incorporated reference ibm extended tax deferred savings plan exhibit x form 10k year ended december 31 1994 hereby incorporated reference ibm 2000 employees stock purchase plan set forth exhibit ibms definitive proxy statement dated march 13 2000 hereby incorporated reference employment agreement l v gerstner jr exhibit 19 form 10q dated march 31 1993 hereby incorporated reference amendment employment agreement l v gerstner jr dated january 1 1996 exhibit xi form 10k year ended december 31 1995 hereby incorporated reference second amendment employment agreement l v gerstner jr dated november 17 1997 exhibit vi form 10k year ended december 31 1997 hereby incorporated reference third amendment employment agreement l v gerstner jr dated january 29 2002 exhibit 10 form 10q dated may 15 2002 hereby incorporated reference instruments defining rights holders 750 debentures due 2013 exhibits 4a 4l registration statement 33494751 form s3 filed may 24 1993 hereby incorporated reference instruments defining rights holders 8375 debentures due 2019 exhibits 4abc registration statement 3331732 form s3 filed october 24 1989 hereby incorporated reference instruments defining rights holders 700 debentures due 2025 700 debentures due 2045 exhibit 2 3 form 8k filed october 30 1995 hereby incorporated reference instrument defining rights holders 7125 debentures due 2096 exhibit 2 form 8ka filed december 6 1996 hereby incorporated reference instruments defining rights holders 645 notes due 2007 622 debentures due 2027 exhibits 2 3 form 8k filed august 1 1997 hereby incorporated reference instruments defining rights holders 650 debentures due 2028 exhibit 2 form 8k filed january 8 1998 hereby incorporated reference instruments defining rights holders 5375 notes due 2009 exhibit 2 form 8k filed january 29 1999 hereby incorporated reference ibms definitive proxy statement dated march 10 2003 certain sections incorporated herein reference breports form 8k company filed form 8k october 16 2002 respect companys financial results periods ended september 30 2002 included unaudited consolidated statement earnings consolidated statement financial position segment data periods ended september 30 2002 addition ibms chief financial officer john r joyces third quarter earnings presentation securities analysts wednesday october 16 2002 filed attachment ii form 8k company filed form 8k october 29 2002 announcing samuel j palmisano elected chairman board effective january 1 2003 succeeding louis v gerstner jr financial statements filed form 8k company filed form 8k november 4 2002 publishing 2001 financial statements result companys decision sell disk drive operations hitachi ltd generally accepted accounting principles accounted discontinued operations following financial statements exhibits filed form 8k 1ibms audited financial statements accompanying notes management discussion 2001 2000 1999 reclassified reflect companys continuing discontinued operations 2computation ratio income continuing operations fixed charges years 2001 1997 3consent independent accountants company filed form 8k november 14 2002 respect certain remarks delivered ibms chief financial officer john r joyce ibms fall 2002 securities analysts meeting wednesday november 13 2002 also filed charts presentations john r joyce ginny rometty gm ibm business consulting services dr john e kelly iii senior vice president group executive technology group financial statements filed form 8k company filed form 8ka november 26 2002 amend page 3 current report form 8k dated november 20 2002 due inadvertent submission date thereof registrant also amended item 7 current report form 8k dated november 20 2002 due inadvertent failure mention inclusion exhibit 3 thereto financial statements filed form 8k company filed form 8k november 26 2002 incorporate reference registration statement 33337034 form s3 effective june 20 2000 following documents 1underwriting agreement dated november 20 2002 among international business machines corporation jp morgan securities inc morgan stanley co incorporated salomon smith barney inc abn amro incorporated banc america securities llc banc one capital markets inc banca imi spa banca nazionale del lavoro spa barclays capital inc bayerische hypound vereinsbank ag bear stearns co inc bnp paribas securities corp caboto intesabcisim spa credit suisse first boston corporation deutsche bank securities inc dresdner kleinwort wassersteingranchester inc fleet securities inc goldman sachs co hsbc securities usa inc ing financial markets llc lehman brothers inc merrill lynch pierce fenner smith incorporated rbc dominion securities corporation royal bank scotland plc ubs warburg llc utendahl capital partners lp williams capital group lp 2form 4750 note due 2012 3form 5875 debenture due 2032 relating 2000000000 aggregate principal amount debt securities registrant financial statements filed form 8k company filed form 8k december 4 2002 regarding plan pension funding also filed ibms chief financial officer john r joyces presentation december 4 2002 securities analysts regarding registrants plan pension funding financial statements filed form 8k company filed form 8k december 31 2002 regarding sale disk drive operations hitachi ltd financial statements filed form 8k signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized international business machines corporation registrant samuel j palmisano samuel j palmisano chairman board president chief executive officer date march 10 2003 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature title date john r joyce john r joyce senior vice president chief financial officer march 10 2003 robert f woods robert f woods vice president controller march 10 2003 cathleen black director kenneth chenault director nannerl keohane director charles f knight director lucio noto john b slaughter sidney taurel alex trotman charles vest director daniel e odonnell daniel e odonnell attorneyinfact march 10 2003 certification pursuant rule 13a14 15d14 securities exchange act 1934 adopted pursuant section 302 sarbanesoxley act 2002 samuel j palmisano certify 1i reviewed annual report form 10k international business machines corporation 2based knowledge annual report contain untrue statement material fact omit state material fact necessary make statements made light circumstances statements made misleading respect period covered annual report 3based knowledge financial statements financial information included annual report fairly present material respects financial condition results operations cash flows registrant periods presented annual report 4the registrants certifying officers responsible establishing maintaining disclosure controls procedures defined exchange act rules 13a14 15d14 registrant adesigned disclosure controls procedures ensure material information relating registrant including consolidated subsidiaries made known us others within entities particularly period annual report prepared bevaluated effectiveness registrants disclosure controls procedures date within 90 days prior filing date annual report evaluation date cpresented annual report conclusions effectiveness disclosure controls procedures based evaluation date 5the registrants certifying officers disclosed based recent evaluation registrants auditors audit committee registrants board directors persons performing equivalent functions aall significant deficiencies design operation internal controls could adversely affect registrants ability record process summarize report financial data identified registrants auditors material weaknesses internal controls bany fraud whether material involves management employees significant role registrants internal controls 6the registrants certifying officers indicated annual report whether significant changes internal controls factors could significantly affect internal controls subsequent date recent evaluation including corrective actions regard significant deficiencies material weaknesses date march 7 2003 samuel j palmisano samuel j palmisano chairman president chief executive officer certification pursuant rule 13a14 15d14 securities exchange act 1934 adopted pursuant section 302 sarbanesoxley act 2002 john r joyce certify 1i reviewed annual report form 10k international business machines corporation 2based knowledge annual report contain untrue statement material fact omit state material fact necessary make statements made light circumstances statements made misleading respect period covered annual report 3based knowledge financial statements financial information included annual report fairly present material respects financial condition results operations cash flows registrant periods presented annual report 4the registrants certifying officers responsible establishing maintaining disclosure controls procedures defined exchange act rules 13a14 15d14 registrant adesigned disclosure controls procedures ensure material information relating registrant including consolidated subsidiaries made known us others within entities particularly period annual report prepared bealuated effectiveness registrants disclosure controls procedures date within 90 days prior filing date annual report evaluation date cpresented annual report conclusions effectiveness disclosure controls procedures based evaluation date 5the registrants certifying officers disclosed based recent evaluation registrants auditors audit committee registrants board directors persons performing equivalent functions aall significant deficiencies design operation internal controls could adversely affect registrants ability record process summarize report financial data identified registrants auditors material weaknesses internal controls bany fraud whether material involves management employees significant role registrants internal controls 6the registrants certifying officers indicated annual report whether significant changes internal controls factors could significantly affect internal controls subsequent date recent evaluation including corrective actions regard significant deficiencies material weaknesses date march 6 2003 john r joyce john r joyce senior vice president chief financial officer report independent accountants financial statement schedule stockholders board directors international business machines corporation audits consolidated financial statements referred report dated january 16 2003 except note date february 21 2003 appearing page 42 2002 annual report stockholders international business machines corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp pricewaterhousecoopers llp new york new york january 16 2003 except note date february 21 2003 report independent auditors board directors international business machines corporation audited statement assets liabilities business consulting services reporting unit reporting unit reporting unit defined statement financial accounting standards 142 international business machines corporation company december 31 2002 related statement revenues expenses collectively statements three months ended separately presented herein statements responsibility companys management responsibility express opinion statements based audit conducted audit accordance auditing standards generally accepted united states standards require plan perform audit obtain reasonable assurance whether statements free material misstatement audit includes examining test basis evidence supporting amounts disclosures statements audit also includes assessing accounting principles used significant estimates made management well evaluating overall presentation statements believe audit provides reasonable basis opinion statements prepared purpose complying rules regulations securities exchange commission use company connection various filings commission certain corporate assets liabilities corporate expenses responsibility reporting unit allocated excluded statements accordingly statements intended complete presentation financial position results operations reporting unit opinion statements referred present fairly material respects assets liabilities revenues expenses reporting unit december 31 2002 three months ended conformity accounting principles generally accepted united states ernst young llp ernst young llp new york new york january 16 2003 schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions aprimarily comprises currency translation adjustments s1 exhibit index management contract compensatory plan arrangement part ii part iii part iv signatures certification pursuant rule 13a14 15d14 securities exchange act 1934 adopted pursuant section 302 sarbanesoxley act 2002 certification pursuant rule 13a14 15d14 securities exchange act 1934 adopted pursuant section 302 sarbanesoxley act 2002 report independent accountants financial statement schedule report independent auditors international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions exhibit indexitem 15 exhibits financial statement schedules reports form 8k athe following documents filed part report 1financial statements ibms 2003 annual report stockholders incorporated herein reference report independent auditors page 42 consolidated statement earnings years ended december 31 2003 2002 2001 page 74 consolidated statement financial position december 31 2003 2002 page 75 consolidated statement stockholders equity december 31 2003 2002 2001 pages 76 78 consolidated statement cash flows years ended december 31 2003 2002 2001 page 79 notes consolidated financial statements pages 80 121 2financial statement schedules required filed item 8 form page schedule number report independent auditors financial statement schedule report independent auditors s1 ii valuation qualifying accounts reserves schedules omitted required matter present amounts significant information shown consolidated financial statements notes thereto 3exhibits included form 10k bylaws ibm amended march 1 2004 computation ratio earnings continuing operations fixed charges earnings continuing operations combined fixed charges preferred stock dividends ibms 2003 annual report stockholders certain sections incorporated herein reference parents subsidiaries 231 consent independent auditors 232 consent independent auditors 241 powers attorney 242 certified resolutions ibm board directors authorizing execution report powers attorney 311 certification ceo pursuant rule 13a14a 15d14a securities exchange act 1934 adopted pursuant section 302 sarbanesoxley act 2002 312 certification cfo pursuant rule 13a14a 15d14a securities exchange act 1934 adopted pursuant section 302 sarbanesoxley act 2002 321 certification ceo pursuant 18 usc section 1350 adopted pursuant section 906 sarbanesoxley act 2002 322 certification cfo pursuant 18 usc section 1350 adopted pursuant section 906 sarbanesoxley act 2002 included form 10k certificate incorporation ibm exhibit 3i form 8k filed april 28 1999 hereby incorporated reference ibm 2001 longterm performance plan compensatory plan contained registration statement 33387708 form s8 filed may 7 2002 hereby incorporated reference ibm 1999 longterm performance plan compensatory plan contained registration statement 33330424 form s8 filed february 15 2000 hereby incorporated reference ibm 1997 longterm performance plan compensatory plan contained registration statement 33331305 form s8 filed july 15 1997 hereby incorporated reference ibm pwcc acquisition longterm performance plan compensatory plan contained registration statement 333102872 form s8 filed january 31 2003 hereby incorporated reference board directors compensatory plans described directors compensation page 10 ibms definitive proxy statement filed march 8 2004 hereby incorporated reference ibm board directors deferred compensation equity award plan exhibit x form 10k year ended december 31 1996 hereby incorporated reference ibm nonemployee directors stock option plan appendix b ibms definitive proxy statement dated march 14 1995 hereby incorporated reference ibm executive deferred compensation plan contained registration statement 33333692 exhibit 4 form s8 filed march 31 2000 hereby incorporated reference ibm supplemental executive retention plan exhibit vii form 10k year ended december 31 1999 hereby incorporated reference ibm extended tax deferred savings plan exhibit x form 10k year ended december 31 1994 hereby incorporated reference ibm 2003 employees stock purchase plan set forth appendix ibms definitive proxy statement dated march 10 2003 hereby incorporated reference instruments defining rights holders 750 debentures due 2013 exhibits 4a 4l registration statement 33494751 form s3 filed may 24 1993 hereby incorporated reference instruments defining rights holders 8375 debentures due 2019 exhibits 4abc registration statement 3331732 form s3 filed october 24 1989 hereby incorporated reference instruments defining rights holders 700 debentures due 2025 700 debentures due 2045 exhibit 2 3 form 8k filed october 30 1995 hereby incorporated reference instrument defining rights holders 7125 debentures due 2096 exhibit 2 form 8ka filed december 6 1996 hereby incorporated reference instruments defining rights holders 645 notes due 2007 622 debentures due 2027 exhibits 2 3 form 8k filed august 1 1997 hereby incorporated reference instruments defining rights holders 650 debentures due 2028 exhibit 2 form 8k filed january 8 1998 hereby incorporated reference instruments defining rights holders 5375 notes due 2009 exhibit 2 form 8k filed january 29 1999 hereby incorporated reference ibms definitive proxy statement filed march 8 2004 certain sections incorporated herein reference breports form 8k company filed form 8k october 15 2003 respect companys financial results periods ended september 30 2003 included unaudited consolidated statement earnings consolidated statement financial position segment data periods ended september 30 2003 addition ibms chief financial officer john r joyces third quarter earnings presentation securities analysts wednesday october 15 2003 filed attachment ii attachment iii form 8k company filed form 8k october 28 2003 containing press release announcing joan e spero elected board effective january 1 2004 signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized international business machines corporation registrant samuel j palmisano samuel j palmisano chairman board president chief executive officer date march 8 2004 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature title date john r joyce john r joyce senior vice president chief financial officer march 8 2004 robert f woods robert f woods vice president controller march 8 2004 cathleen black kenneth chenault nannerl keohane charles f knight lucio noto john b slaughter joan e spero sidney taurel alex trotman charles vest director daniel e odonnell daniel e odonnell attorneyinfact march 8 2004 report independent auditors financial statement schedule stockholders board directors international business machines corporation audits consolidated financial statements referred report dated january 15 2004 appearing page 42 2003 annual report stockholders international business machines corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp pricewaterhousecoopers llp new york new york january 15 2004 report independent auditors board directors international business machines corporation audited statement assets liabilities business consulting services reporting unit reporting unit reporting unit defined statement financial accounting standards 142 international business machines corporation company december 31 2003 related statement revenues expenses collectively statements three months ended separately presented herein statements responsibility companys management responsibility express opinion statements based audit conducted audit accordance auditing standards generally accepted united states standards require plan perform audit obtain reasonable assurance whether statements free material misstatement audit includes examining test basis evidence supporting amounts disclosures statements audit also includes assessing accounting principles used significant estimates made management well evaluating overall presentation statements believe audit provides reasonable basis opinion statements prepared purpose complying rules regulations securities exchange commission use company connection various filings commission certain corporate assets liabilities corporate expenses responsibility reporting unit allocated excluded statements accordingly statements intended complete presentation financial position results operations reporting unit opinion statements referred present fairly material respects assets liabilities revenues expenses reporting unit december 31 2003 three months ended conformity accounting principles generally accepted united states ernst young llp ernst young llp new york new york january 15 2004 schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions aprimarily comprises currency translation adjustments s1 exhibit index management contract compensatory plan arrangement part item 2 properties item 3 legal proceedings item 4 submission matters vote security holders part ii item 5 market registrants common equity related stockholder matters item 6 selected financial data item 7 managements discussion analysis financial condition results operations item 7a quantitative qualitative disclosures market risks item 8 financial statements supplementary data item 9 changes disagreements accountants accounting financial disclosure item 9a controls procedures part iii item 10 directors executive officers registrant item 11 executive compensation item 12 security ownership certain beneficial owners management related stockholder matters item 13 certain relationships related transactions item 14 principal accountant fees services part iv item 15 exhibits financial statement schedules reports form 8k signatures report independent auditors financial statement schedule report independent auditors schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions exhibit indexitem 15 exhibits financial statement schedules athe following documents filed part report 1financial statements ibms 2004 annual report stockholders incorporated herein reference report independent registered public accounting firm page 10 consolidated statement earnings years ended december 31 2004 2003 2002 pages 40 41 consolidated statement financial position december 31 2004 2003 pages 42 43 consolidated statement cash flows years ended december 31 2004 2003 2002 pages 44 45 consolidated statement stockholders equity december 31 2004 2003 2002 pages 46 48 notes consolidated financial statements pages 49 91 2financial statement schedules required filed item 8 form page schedule number report independent registered public accounting firm financial statement schedule report independent registered public accounting firm report independent registered public accounting firm s1 ii valuation qualifying accounts reserves schedules omitted required matter present amounts significant information shown consolidated financial statements notes thereto 3exhibits included form 10k bylaws ibm amended february 22 2005 101 form ltpp buyfirst stock option award agreement computation ratio earnings continuing operations fixed charges earnings continuing operations combined fixed charges preferred stock dividends ibms 2004 annual report stockholders certain sections incorporated herein reference parents subsidiaries 231 consent independent registered public accounting firm 232 consent independent registered public accounting firm 241 powers attorney 242 resolutions ibm board directors authorizing execution report powers attorney 311 certification ceo pursuant rule 13a14a 15d14a securities exchange act 1934 adopted pursuant section 302 sarbanesoxley act 2002 312 certification cfo pursuant rule 13a14a 15d14a securities exchange act 1934 adopted pursuant section 302 sarbanesoxley act 2002 321 certification ceo pursuant 18 usc section 1350 adopted pursuant section 906 sarbanesoxley act 2002 322 certification cfo pursuant 18 usc section 1350 adopted pursuant section 906 sarbanesoxley act 2002 included form 10k certificate incorporation ibm exhibit 3i form 8k filed april 28 1999 hereby incorporated reference ibm 1999 long term performance plan compensatory plan contained registration statement 33330424 form s8 amended plan filed exhibit 101 form 10q quarter ended september 30 2004 hereby incorporated reference ibm 2001 long term performance plan compensatory plan contained registration statement 33387708 form s8 amended plan filed exhibit 102 form 10q quarter ended september 30 2004 hereby incorporated reference ibm pwcc acquisition long term performance plan compensatory plan contained registration statement 333102872 form s8 amended plan filed exhibit 103 form 10q quarter ended september 30 2004 hereby incorporated reference forms ltpp stock option award agreement longterm incentive program award agreement restricted stock unit stock option award agreement filed exhibit 104 form 10q quarter ended september 30 2004 hereby incorporated reference board directors compensatory plans described caption directors compensation ibms definitive proxy statement filed securities exchange commission delivered stockholders connection annual meeting stockholders held april 26 2005 hereby incorporated reference ibm board directors deferred compensation equity award plan exhibit x form 10k year ended december 31 1996 hereby incorporated reference ibm nonemployee directors stock option plan appendix b ibms definitive proxy statement dated march 14 1995 hereby incorporated reference ibm executive deferred compensation plan contained registration statement 33333692 exhibit 4 form s8 filed march 31 2000 hereby incorporated reference ibm supplemental executive retention plan exhibit vii form 10k year ended december 31 1999 hereby incorporated reference ibm extended tax deferred savings plan exhibit x form 10k year ended december 31 1994 hereby incorporated reference ibm 2003 employees stock purchase plan set forth appendix ibms definitive proxy statement dated march 10 2003 hereby incorporated reference 10000000000 5year credit agreement dated may 27 2004 among international business machines corporation subsidiary borrower lenders time parties agreement jpmorgan chase bank administrative agent lenders citibank na syndication agent filed exhibit 10 form 10q quarter ended june 30 2004 hereby incorporated reference instruments defining rights holders 750 debentures due 2013 exhibits 4a 4l registration statement 33494751 form s3 filed may 24 1993 hereby incorporated reference instruments defining rights holders 8375 debentures due 2019 exhibits 4abc registration statement 3331732 form s3 filed october 24 1989 hereby incorporated reference instruments defining rights holders 700 debentures due 2025 700 debentures due 2045 exhibit 2 3 form 8k filed october 30 1995 hereby incorporated reference instrument defining rights holders 7125 debentures due 2096 exhibit 2 form 8ka filed december 6 1996 hereby incorporated reference instruments defining rights holders 645 notes due 2007 622 debentures due 2027 exhibits 2 3 form 8k filed august 1 1997 hereby incorporated reference instruments defining rights holders 650 debentures due 2028 exhibit 2 form 8k filed january 8 1998 hereby incorporated reference instruments defining rights holders 5375 notes due 2009 exhibit 2 form 8k filed january 29 1999 hereby incorporated reference ibms definitive proxy statement filed securities exchange commission delivered stockholders connection annual meeting stockholders held april 26 2005 certain sections incorporated herein reference signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized international business machines corporation registrant samuel j palmisano samuel j palmisano chairman board president chief executive officer date february 24 2005 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature title date mark loughridge mark loughridge senior vice president chief financial officer february 24 2005 timothy shaughnessy timothy shaughnessy vice president controller february 24 2005 cathleen black kenneth chenault juergen dormann michael l eskew nannerl keohane charles f knight minoru makihara lucio noto john b slaughter joan e spero sidney taurel charles vest lorenzo h zambrano director daniel e odonnell daniel e odonnell attorneyinfact february 24 2005 report independent registered public accounting firm financial statement schedule stockholders board directors international business machines corporation audits consolidated financial statements managements assessment effectiveness internal control financial reporting effectiveness internal control financial reporting referred report dated february 22 2005 appearing 2004 annual report shareholders international business machines corporation report consolidated financial statements assessment incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp pricewaterhousecoopers llp new york new york february 22 2005 report independent registered public accounting firm board directors international business machines corporation audited statements assets liabilities business consulting services reporting unit reporting unit reporting unit defined statement financial accounting standards 142 international business machines corporation company december 31 2004 2003 related statements revenues expenses collectively statements years ended december 31 2004 2003 three months ended december 31 2002 separately presented herein statements responsibility companys management responsibility express opinion statements based audits conducted audits accordance auditing standards public company accounting oversight board united states standards require plan perform audit obtain reasonable assurance whether statements free material misstatement audit includes examining test basis evidence supporting amounts disclosures statements audit also includes assessing accounting principles used significant estimates made management well evaluating overall presentation statements believe audits provide reasonable basis opinion statements prepared purpose complying rules regulations securities exchange commission use company connection various filings commission certain corporate assets liabilities corporate expenses responsibility reporting unit allocated excluded statements accordingly statements intended complete presentation financial position results operations reporting unit opinion statements referred present fairly material respects assets liabilities reporting unit december 31 2004 2003 revenues expenses years ended december 31 2004 2003 three months ended december 31 2002 conformity us generally accepted accounting principles ernst young llp ernst young llp new york new york february 22 2005 report independent registered public accounting firm board directors international business machines corporation examined managements assertion controls initiation recording revenue transactions recording direct costs business consulting services reporting unit reporting unit reporting unit defined statement financial accounting standards 142 international business machines corporation ibm effective december 31 2004 management responsible controls initiation recording revenue transactions recording direct costs reporting unit responsibility express opinion managements assertion based examination control objectives formed basis managements assertion included 1 credit checks contract pricing contract terms conditions valid signed contract obtained reviewed approved nonstandard contract terms conditions identified review prior revenue recognition 2 invoices generated based contract terms conditions reviewed prior issuance 3 revenues accounts receivable monitored appropriate adjustments made timely 4 costs appropriately timely captured contract business unit reconciled related revenues 5 losses contracts identified appropriate provisions made based established accounting policies examination conducted accordance attestation standards adopted public company accounting oversight board united states accordingly included obtaining understanding controls initiation recording revenue transactions recording direct costs reporting unit testing evaluating design operating effectiveness controls performing procedures considered necessary circumstances believe examination provides reasonable basis opinion examination limited controls applied individual revenue transactions initiated within reporting unit controls applied direct costs reporting unit personnel examination extend ibms internal control financial reporting relates applications controls common reporting units within ibm entitylevel controls including also affect recording reporting units revenues direct costs inherent limitations internal control misstatements due error fraud may occur detected also projections evaluation controls initiation recording revenue transactions recording direct costs reporting unit future periods subject risk controls may become inadequate changes conditions degree compliance controls may deteriorate opinion managements assertion controls initiation recording revenue transactions recording direct costs reporting unit effective december 31 2004 fairly stated material respects based control objectives described ernst young llp ernst young llp new york new york february 22 2005 schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions aprimarily comprises currency translation adjustments s1 exhibit index management contract compensatory plan arrangement part ii part iii part iv signatures report independent registered public accounting firm financial statement schedule report independent registered public accounting firm report independent registered public accounting firm international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions exhibit indexitem 15 exhibits financial statement schedules athe following documents filed part report 1financial statements ibms 2005 annual report stockholders incorporated herein reference report independent registered public accounting firm page 13 consolidated statement earnings years ended december 31 2005 2004 2003 page 48 consolidated statement financial position december 31 2005 2004 page 49 consolidated statement cash flows years ended december 31 2005 2004 2003 page 50 consolidated statement stockholders equity december 31 2005 2004 2003 pages 51 53 notes consolidated financial statements pages 54 100 2financial statement schedules required filed item 8 form page schedule number report independent registered public accounting firm financial statement schedule report independent registered public accounting firm s1 ii valuation qualifying accounts reserves schedules omitted required matter present amounts significant information shown consolidated financial statements notes thereto 3exhibits included form 10k 101 december 2005 amendments ibm executive deferred compensation plan compensatory plan incorporated reference registration statement 33333692 form s8 dated march 31 2000 102 ibm supplemental executive retention plan compensatory plan effective july 1 1999 amended february 17 2006 103 december 2005 amendments ibm savings plan compensatory plan incorporated reference registration statement 33309055 form s8 dated july 29 1996 104 forms ltpp stock option award agreement buyfirst stock option award agreement restricted stock unit agreement special restricted stock unit agreement performance stock unit award agreement computation ratio earnings continuing operations fixed charges earnings continuing operations combined fixed charges preferred stock dividends ibms 2005 annual report stockholders certain sections incorporated herein reference subsidiaries 231 consent independent registered public accounting firm 232 consent independent registered public accounting firm 241 powers attorney 242 resolutions ibm board directors authorizing execution report powers attorney 311 certification ceo pursuant rule 13a14a 15d14a securities exchange act 1934 adopted pursuant section 302 sarbanesoxley act 2002 312 certification cfo pursuant rule 13a14a 15d14a securities exchange act 1934 adopted pursuant section 302 sarbanesoxley act 2002 321 certification ceo pursuant 18 usc section 1350 adopted pursuant section 906 sarbanesoxley act 2002 322 certification cfo pursuant 18 usc section 1350 adopted pursuant section 906 sarbanesoxley act 2002 included form 10k bylaws ibm amended september 26 2005 exhibit 3 form 8k filed september 27 2005 hereby incorporated reference certificate incorporation ibm exhibit 3i form 8k filed april 28 1999 hereby incorporated reference ibm 1999 long term performance plan compensatory plan contained registration statement 33330424 form s8 amended plan filed exhibit 101 form 10q quarter ended september 30 2004 hereby incorporated reference ibm 2001 long term performance plan compensatory plan contained registration statement 33387708 form s8 amended plan filed exhibit 102 form 10q quarter ended september 30 2004 hereby incorporated reference ibm pwcc acquisition long term performance plan compensatory plan contained registration statement 333102872 form s8 amended plan filed exhibit 103 form 10q quarter ended september 30 2004 hereby incorporated reference form restricted stock unit stock option award agreement filed exhibit 104 form 10q quarter ended september 30 2004 hereby incorporated reference board directors compensatory plans described caption directors compensation ibms definitive proxy statement filed securities exchange commission delivered stockholders connection annual meeting stockholders held april 25 2006 hereby incorporated reference ibm board directors deferred compensation equity award plan exhibit x form 10k year ended december 31 1995 hereby incorporated reference ibm nonemployee directors stock option plan appendix b ibms definitive proxy statement dated march 14 1995 hereby incorporated reference ibm executive deferred compensation plan contained registration statement 33333692 exhibit 4 form s8 filed march 31 2000 hereby incorporated reference ibm extended tax deferred savings plan exhibit x form 10k year ended december 31 1994 hereby incorporated reference ibm savings plan compensatory plan amended restated effective january 1 2005 plan previously filed exhibit 4 registration statement 33309055 form s8 dated july 29 1996 plan amended filed exhibit 101 form 10q quarter ended march 31 2005 hereby incorporated reference amendments ibm executive deferred compensation plan compensatory plan previously filed exhibit 4 registration statement 33333692 form s8 dated march 31 2000 plan amended filed exhibit 102 form 10q quarter ended march 31 2005 hereby incorporated reference ibm 2003 employees stock purchase plan set forth appendix ibms definitive proxy statement dated march 10 2003 hereby incorporated reference ibm 2003 employees stock purchase plan amended april 1 2005 plan previously filed appendix ibms definitive proxy statement dated march 10 2003 plan amended filed exhibit 103 form 10q quarter ended march 31 2005 hereby incorporated reference 10000000000 5year credit agreement dated may 27 2004 among international business machines corporation subsidiary borrower lenders time parties agreement jpmorgan chase bank administrative agent lenders citibank na syndication agent filed exhibit 10 form 10q quarter ended june 30 2004 hereby incorporated reference instruments defining rights holders 750 debentures due 2013 exhibits 4a 4l registration statement 33494751 form s3 filed may 24 1993 hereby incorporated reference instruments defining rights holders 8375 debentures due 2019 exhibits 4abc registration statement 3331732 form s3 filed october 24 1989 hereby incorporated reference instruments defining rights holders 700 debentures due 2025 700 debentures due 2045 exhibit 2 3 form 8k filed october 30 1995 hereby incorporated reference instrument defining rights holders 7125 debentures due 2096 exhibit 2 form 8ka filed december 6 1996 hereby incorporated reference instruments defining rights holders 645 notes due 2007 622 debentures due 2027 exhibits 2 3 form 8k filed august 1 1997 hereby incorporated reference instruments defining rights holders 650 debentures due 2028 exhibit 2 form 8k filed january 8 1998 hereby incorporated reference instruments defining rights holders 5375 notes due 2009 exhibit 2 form 8k filed january 29 1999 hereby incorporated reference ibms definitive proxy statement filed securities exchange commission delivered stockholders connection annual meeting stockholders held april 25 2006 certain sections incorporated herein reference signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized international business machines corporation registrant samuel j palmisano samuel j palmisano chairman board president chief executive officer date february 28 2006 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature title date mark loughridge mark loughridge senior vice president chief financial officer february 28 2006 timothy shaughnessy timothy shaughnessy vice president controller february 28 2006 cathleen black kenneth chenault juergen dormann michael l eskew shirley ann jackson charles f knight lucio noto joan e spero sidney taurel charles vest lorenzo h zambrano director daniel e odonnell daniel e odonnell attorneyinfact february 28 2006 report independent registered public accounting firm financial statement schedule stockholders board directors international business machines corporation audits consolidated financial statements managements assessment effectiveness internal control financial reporting effectiveness internal control financial reporting referred report dated february 28 2006 appearing 2005 annual report shareholders international business machines corporation report consolidated financial statements assessment incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp pricewaterhousecoopers llp new york new york february 28 2006 report independent registered public accounting firm board directors international business machines corporation audited statements assets liabilities business consulting services reporting unit reporting unit reporting unit defined statement financial accounting standards 142 international business machines corporation company december 31 2004 related statements revenues expenses collectively statements years ended december 31 2004 2003 separately presented herein statements responsibility companys management responsibility express opinion statements based audits conducted audits accordance auditing standards public company accounting oversight board united states standards require plan perform audit obtain reasonable assurance whether statements free material misstatement audit includes examining test basis evidence supporting amounts disclosures statements audit also includes assessing accounting principles used significant estimates made management well evaluating overall presentation statements believe audits provide reasonable basis opinion statements prepared purpose complying rules regulations securities exchange commission use company connection various filings commission certain corporate assets liabilities corporate expenses responsibility reporting unit allocated excluded statements accordingly statements intended complete presentation financial position results operations reporting unit opinion statements referred present fairly material respects assets liabilities reporting unit december 31 2004 revenues expenses years ended december 31 2004 2003 conformity us generally accepted accounting principles ernst young llp ernst young llp new york new york february 22 2005 schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions aprimarily comprises currency translation adjustments s1 exhibit index management contract compensatory plan arrangement part item 1a risk factors item 1b unresolved staff comments item 2 properties item 3 legal proceedings item 4 submission matters vote security holders part ii item 5 market registrants common equity related stockholder matters issuer purchases equity securities item 6 selected financial data item 7 managements discussion analysis financial condition results operations item 7a quantitative qualitative disclosures market risks item 8 financial statements supplementary data item 9 changes disagreements accountants accounting financial disclosure item 9a controls procedures item 9b information part iii item 10 directors executive officers registrant item 11 executive compensation item 12 security ownership certain beneficial owners management related stockholder matters item 13 certain relationships related transactions item 14 principal accountant fees services part iv item 15 exhibits financial statement schedules signatures report independent registered public accounting firm financial statement schedule report independent registered public accounting firm schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions exhibit indexitem 15 exhibits financial statement schedules athe following documents filed part report 1financial statements ibms 2008 annual report stockholders incorporated herein reference report independent registered public accounting firm page 59 consolidated statement earnings years ended december 31 2008 2007 2006 page 60 consolidated statement financial position december 31 2008 2007 page 61 consolidated statement cash flows years ended december 31 2008 2007 2006 page 62 consolidated statement stockholders equity december 31 2008 2007 2006 pages 63 65 notes consolidated financial statements pages 66 119 2financial statement schedules required filed item 8 form page schedule number report independent registered public accounting firm financial statement schedule s1 ii valuation qualifying accounts reserves schedules omitted required matter present amounts significant information shown consolidated financial statements notes thereto 3exhibits management contract compensatory plan arrangement performance graphs set forth pages 122 123 ibms 2008 annual report stockholders deemed furnished filed signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized international business machines corporation registrant samuel j palmisano samuel j palmisano chairman board president chief executive officer date february 24 2009 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated alain jp belda cathleen black william r brody kenneth chenault michael l eskew shirley ann jackson taizo nishimuro james w owens joan e spero sidney taurel lorenzo h zambrano director andrew bonzani andrew bonzani attorneyinfact february 24 2009 report independent registered public accounting firm financial statement schedule stockholders board directors international business machines corporation audits consolidated financial statements effectiveness internal control financial reporting referred report dated february 24 2009 appearing 2008 annual report shareholders international business machines corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp pricewaterhousecoopers llp new york new york february 24 2009 schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions additions allowance doubtful accounts allowance inventory losses charged expense cost accounts respectively revenue based provisions charged revenue accounts primarily comprises currency translation adjustments s1 part item 1a risk factors item 1b unresolved staff comments item 2 properties item 3 legal proceedings item 4 submission matters vote security holders part ii item 5 market registrants common equity related stockholder matters issuer purchases equity securities item 6 selected financial data item 7 managements discussion analysis financial condition results operations item 7a quantitative qualitative disclosures market risk item 8 financial statements supplementary data item 9 changes disagreements accountants accounting financial disclosure item 9a controls procedures item 9b information part iii item 10 directors executive officers corporate governance item 11 executive compensation item 12 security ownership certain beneficial owners management related stockholder matters item 13 certain relationships related transactions director independence item 14 principal accounting fees services part iv item 15 exhibits financial statement schedules signatures report independent registered public accounting firm financial statement schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millionsitem 15 exhibits financial statement schedules athe following documents filed part report 1financial statements ibms 2009 annual report stockholders incorporated herein reference report independent registered public accounting firm page 63 consolidated statement earnings years ended december 31 2009 2008 2007 page 64 consolidated statement financial position december 31 2009 2008 page 65 consolidated statement cash flows years ended december 31 2009 2008 2007 page 66 consolidated statement changes equity december 31 2009 2008 2007 pages 67 69 notes consolidated financial statements pages 70 126 2financial statement schedule required filed item 8 form page schedule number report independent registered public accounting firm financial statement schedule s1 ii valuation qualifying accounts reserves schedules omitted required matter present amounts significant information shown consolidated financial statements notes thereto 3exhibits reference number per item 601 regulation sk description exhibits exhibit number form 10k 2 plan acquisition reorganization arrangement liquidation succession applicable 3 certificate incorporation bylaws certificate incorporation ibm exhibit 32 form 8k filed april 27 2007 hereby incorporated reference management contract compensatory plan arrangement performance graphs set forth pages 129 130 ibms 2009 annual report stockholders deemed furnished filed signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized international business machines corporation registrant samuel j palmisano samuel j palmisano chairman board president chief executive officer date february 23 2010 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated cathleen black william r brody michael l eskew shirley ann jackson w james mcnerney jr taizo nishimuro james w owens joan e spero sidney taurel director andrew bonzani andrew bonzani attorneyinfact february 23 2010 report independent registered public accounting firm financial statement schedule stockholders board directors international business machines corporation audits consolidated financial statements effectiveness internal control financial reporting referred report dated february 23 2010 appearing 2009 annual report shareholders international business machines corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp pricewaterhousecoopers llp new york new york february 23 2010 schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions additions allowance doubtful accounts allowance inventory losses charged expense cost accounts respectively revenue based provisions charged revenue accounts primarily comprises currency translation adjustments s1 part item 1a risk factors item 1b unresolved staff comments item 2 properties item 3 legal proceedings item 4 submission matters vote security holders part ii item 5 market registrants common equity related stockholder matters issuer purchases equity securities item 6 selected financial data item 7 managements discussion analysis financial condition results operations item 7a quantitative qualitative disclosures market risk item 8 financial statements supplementary data item 9 changes disagreements accountants accounting financial disclosure item 9a controls procedures item 9b information part iii item 10 directors executive officers corporate governance item 11 executive compensation item 12 security ownership certain beneficial owners management related stockholder matters item 13 certain relationships related transactions director independence item 14 principal accounting fees services part iv item 15 exhibits financial statement schedules signatures report independent registered public accounting firm financial statement schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millionsitem 15 exhibits financial statement schedules athe following documents filed part report 1financial statements ibms 2010 annual report stockholders incorporated herein reference report independent registered public accounting firm page 61 consolidated statement earnings years ended december 31 2010 2009 2008 page 62 consolidated statement financial position december 31 2010 2009 page 63 consolidated statement cash flows years ended december 31 2010 2009 2008 page 64 consolidated statement changes equity december 31 2010 2009 2008 pages 65 67 notes consolidated financial statements pages 68 130 2financial statement schedule required filed item 8 form page schedule number report independent registered public accounting firm financial statement schedule s1 ii valuation qualifying accounts reserves schedules omitted required matter present amounts significant information shown consolidated financial statements notes thereto 3exhibits reference number per item 601 regulation sk description exhibits exhibit number form 10k 2 plan acquisition reorganization arrangement liquidation succession applicable 3 certificate incorporation bylaws certificate incorporation ibm exhibit 32 form 8k filed april 27 2007 hereby incorporated reference management contract compensatory plan arrangement performance graphs set forth pages 133 134 ibms 2010 annual report stockholders deemed furnished filed signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized international business machines corporation registrant samuel j palmisano samuel j palmisano chairman board president chief executive officer date february 22 2011 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated alain j p belda william r brody kenneth chenault michael l eskew shirley ann jackson andrew n liveris w james mcnerney jr james w owens joan e spero sidney taurel lorenzo h zambrano director andrew bonzani andrew bonzani attorneyinfact february 22 2011 report independent registered public accounting firm financial statement schedule stockholders board directors international business machines corporation audits consolidated financial statements effectiveness internal control financial reporting referred report dated february 22 2011 appearing 2010 annual report shareholders international business machines corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp pricewaterhousecoopers llp new york new york february 22 2011 schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions additions allowance doubtful accounts allowance inventory losses charged expense cost accounts respectively revenue based provisions charged revenue accounts primarily comprises currency translation adjustments s1 part item 1a risk factors item 1b unresolved staff comments item 2 properties item 3 legal proceedings part ii item 5 market registrants common equity related stockholder matters issuer purchases equity securities item 6 selected financial data item 7 managements discussion analysis financial condition results operations item 7a quantitative qualitative disclosures market risk item 8 financial statements supplementary data item 9 changes disagreements accountants accounting financial disclosure item 9a controls procedures part iii item 10 directors executive officers corporate governance item 11 executive compensation item 12 security ownership certain beneficial owners management related stockholder matters item 13 certain relationships related transactions director independence item 14 principal accounting fees services part iv item 15 exhibits financial statement schedules signatures report independent registered public accounting firm financial statement schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millionsitem 15 exhibits financial statement schedules athe following documents filed part report 1financial statements ibms 2011 annual report stockholders incorporated herein reference report independent registered public accounting firm page 69 consolidated statement earnings years ended december 31 2011 2010 2009 page 70 consolidated statement comprehensive income years ended december 31 2011 2010 2009 page 71 consolidated statement financial position december 31 2011 2010 page 72 consolidated statement cash flows years ended december 31 2011 2010 2009 page 73 consolidated statement changes equity december 31 2011 2010 2009 pages 74 75 notes consolidated financial statements pages 76 139 2financial statement schedule required filed item 8 form page schedule number report independent registered public accounting firm financial statement schedule s1 ii valuation qualifying accounts reserves schedules omitted required matter present amounts significant information shown consolidated financial statements notes thereto 3exhibits reference number per item 601 regulation sk description exhibits exhibit number form 10k 2 plan acquisition reorganization arrangement liquidation succession applicable 3 certificate incorporation bylaws management contract compensatory plan arrangement performance graphs set forth pages 142 143 ibms 2011 annual report stockholders deemed furnished filed signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized international business machines corporation registrant virginia rometty virginia rometty president chief executive officer date february 28 2012 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated alain j p belda director william r brody director kenneth chenault director michelle h browdy michelle h browdy michael l eskew director attorneyinfact february 28 2012 david n farr director andrew n liveris director w james mcnerney jr director james w owens director samuel j palmisano chairman board joan e spero director sidney taurel director lorenzo h zambrano director report independent registered public accounting firm financial statement schedule stockholders board directors international business machines corporation audits consolidated financial statements effectiveness internal control financial reporting referred report dated february 28 2012 appearing 2011 annual report shareholders international business machines corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp pricewaterhousecoopers llp new york new york february 28 2012 schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions additions allowance doubtful accounts allowance inventory losses charged expense cost accounts respectively revenue based provisions charged revenue accounts primarily comprises currency translation adjustments s1 part item 1a risk factors item 1b unresolved staff comments item 2 properties item 3 legal proceedings item 4 mine safety disclosures part ii item 5 market registrants common equity related stockholder matters issuer purchases equity securities item 6 selected financial data item 7 managements discussion analysis financial condition results operations item 7a quantitative qualitative disclosures market risk item 8 financial statements supplementary data item 9 changes disagreements accountants accounting financial disclosure item 9a controls procedures part iii item 10 directors executive officers corporate governance item 11 executive compensation item 12 security ownership certain beneficial owners management related stockholder matters item 13 certain relationships related transactions director independence item 14 principal accounting fees services part iv item 15 exhibits financial statement schedules signatures report independent registered public accounting firm financial statement schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millionsitem 15 exhibits financial statement schedules athe following documents filed part report 1financial statements ibms 2012 annual report stockholders incorporated herein reference report independent registered public accounting firm page 69 consolidated statement earnings years ended december 31 2012 2011 2010 page 70 consolidated statement comprehensive income years ended december 31 2012 2011 2010 page 71 consolidated statement financial position december 31 2012 2011 page 72 consolidated statement cash flows years ended december 31 2012 2011 2010 page 73 consolidated statement changes equity december 31 2012 2011 2010 pages 74 75 notes consolidated financial statements pages 76 138 2financial statement schedule required filed item 8 form page schedule number report independent registered public accounting firm financial statement schedule s1 ii valuation qualifying accounts reserves schedules omitted required matter present amounts significant information shown consolidated financial statements notes thereto 3exhibits reference number per item 601 regulation sk description exhibits exhibit number form 10k 2 plan acquisition reorganization arrangement liquidation succession applicable 3 certificate incorporation bylaws management contract compensatory plan arrangement performance graph set forth page 141 ibms 2012 annual report stockholders deemed furnished filed signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized international business machines corporation registrant virginia rometty virginia rometty chairman board president chief executive officer date february 26 2013 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated alain j p belda director william r brody director kenneth chenault director michelle h browdy michelle h browdy michael l eskew director attorneyinfact february 26 2013 david n farr director shirley ann jackson director andrew n liveris director w james mcnerney jr director james w owens director joan e spero director sidney taurel director lorenzo h zambrano director report independent registered public accounting firm financial statement schedule stockholders board directors international business machines corporation audits consolidated financial statements effectiveness internal control financial reporting referred report dated february 26 2013 appearing 2012 annual report shareholders international business machines corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp pricewaterhousecoopers llp new york new york february 26 2013 schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions additions allowance doubtful accounts allowance inventory losses charged expense cost accounts respectively revenue based provisions charged revenue accounts primarily comprises currency translation adjustments s1 part item 1a risk factors item 1b unresolved staff comments item 2 properties item 3 legal proceedings item 4 mine safety disclosures part ii item 5 market registrants common equity related stockholder matters issuer purchases equity securities item 6 selected financial data item 7 managements discussion analysis financial condition results operations item 7a quantitative qualitative disclosures market risk item 8 financial statements supplementary data item 9 changes disagreements accountants accounting financial disclosure item 9a controls procedures item 9b information part iii item 10 directors executive officers corporate governance item 11 executive compensation item 12 security ownership certain beneficial owners management related stockholder matters item 13 certain relationships related transactions director independence item 14 principal accounting fees services part iv item 15 exhibits financial statement schedules signatures report independent registered public accounting firm financial statement schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millionsitem 15 exhibits financial statement schedules athe following documents filed part report 1financial statements ibms 2013 annual report stockholders incorporated herein reference report independent registered public accounting firm page 77 consolidated statement earnings years ended december 31 2013 2012 2011 page 78 consolidated statement comprehensive income years ended december 31 2013 2012 2011 page 79 consolidated statement financial position december 31 2013 2012 page 80 consolidated statement cash flows years ended december 31 2013 2012 2011 page 81 consolidated statement changes equity december 31 2013 2012 2011 pages 82 83 notes consolidated financial statements pages 84 146 2financial statement schedule required filed item 8 form page schedule number report independent registered public accounting firm financial statement schedule s1 ii valuation qualifying accounts reserves schedules omitted required matter present amounts significant information shown consolidated financial statements notes thereto 3exhibits management contract compensatory plan arrangement performance graph set forth page 149 ibms 2013 annual report stockholders deemed furnished filed signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized international business machines corporation registrant virginia rometty virginia rometty chairman board president chief executive officer date february 25 2014 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated alain j p belda director william r brody director kenneth chenault director michelle h browdy michelle h browdy michael l eskew director attorneyinfact february 25 2014 david n farr director shirley ann jackson director andrew n liveris director w james mcnerney jr director james w owens director joan e spero director sidney taurel director lorenzo h zambrano director report independent registered public accounting firm financial statement schedule stockholders board directors international business machines corporation audits consolidated financial statements effectiveness internal control financial reporting referred report dated february 25 2014 appearing 2013 annual report shareholders international business machines corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp pricewaterhousecoopers llp new york new york february 25 2014 schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions additions allowance doubtful accounts allowance inventory losses charged expense cost accounts respectively revenue based provisions charged revenue accounts primarily comprises currency translation adjustments s1 part item 1a risk factors item 1b unresolved staff comments item 2 properties item 3 legal proceedings item 4 mine safety disclosures part ii item 5 market registrants common equity related stockholder matters issuer purchases equity securities item 6 selected financial data item 7 managements discussion analysis financial condition results operations item 7a quantitative qualitative disclosures market risk item 8 financial statements supplementary data item 9 changes disagreements accountants accounting financial disclosure item 9a controls procedures part iii item 10 directors executive officers corporate governance item 11 executive compensation item 12 security ownership certain beneficial owners management related stockholder matters item 13 certain relationships related transactions director independence item 14 principal accounting fees services part iv item 15 exhibits financial statement schedules signatures report independent registered public accounting firm financial statement schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millionsitem 15 exhibits financial statement schedules athe following documents filed part report 1financial statements ibms 2014 annual report stockholders incorporated herein reference report independent registered public accounting firm page 79 consolidated statement earnings years ended december 31 2014 2013 2012 page 80 consolidated statement comprehensive income years ended december 31 2014 2013 2012 page 81 consolidated statement financial position december 31 2014 2013 page 82 consolidated statement cash flows years ended december 31 2014 2013 2012 page 83 consolidated statement changes equity december 31 2014 2013 2012 pages 84 85 notes consolidated financial statements pages 86 150 2financial statement schedule required filed item 8 form page schedule number report independent registered public accounting firm financial statement schedule s1 ii valuation qualifying accounts reserves schedules omitted required matter present amounts significant information shown consolidated financial statements notes thereto 3exhibits management contract compensatory plan arrangement performance graph set forth page 153 ibms 2014 annual report stockholders deemed furnished filed signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized international business machines corporation registrant virginia rometty virginia rometty chairman board president chief executive officer date february 24 2015 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated alain j p belda director william r brody director kenneth chenault director christina montgomery christina montgomery michael l eskew director attorneyinfact february 24 2015 david n farr director alex gorsky director shirley ann jackson director andrew n liveris director w james mcnerney jr director james w owens director joan e spero director sidney taurel director peter r voser director report independent registered public accounting firm financial statement schedule stockholders board directors international business machines corporation audits consolidated financial statements effectiveness internal control financial reporting referred report dated february 24 2015 appearing 2014 annual report shareholders international business machines corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp pricewaterhousecoopers llp new york new york february 24 2015 schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions additions allowance doubtful accounts allowance inventory losses charged expense cost accounts respectively revenue based provisions charged revenue accounts primarily comprises currency translation adjustments s1 part item 1a risk factors item 1b unresolved staff comments item 2 properties item 3 legal proceedings item 4 mine safety disclosures part ii item 5 market registrants common equity related stockholder matters issuer purchases equity securities item 6 selected financial data item 7 managements discussion analysis financial condition results operations item 7a quantitative qualitative disclosures market risk item 8 financial statements supplementary data item 9 changes disagreements accountants accounting financial disclosure item 9a controls procedures item 9b information part iii item 10 directors executive officers corporate governance item 11 executive compensation item 12 security ownership certain beneficial owners management related stockholder matters item 13 certain relationships related transactions director independence item 14 principal accounting fees services part iv item 15 exhibits financial statement schedules signatures report independent registered public accounting firm financial statement schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millionsitem 15 exhibits financial statement schedules athe following documents filed part report 1financial statements ibms 2015 annual report stockholders incorporated herein reference report independent registered public accounting firm page 75 consolidated statement earnings years ended december 31 2015 2014 2013 page 76 consolidated statement comprehensive income years ended december 31 2015 2014 2013 page 77 consolidated statement financial position december 31 2015 2014 page 78 consolidated statement cash flows years ended december 31 2015 2014 2013 page 79 consolidated statement changes equity december 31 2015 2014 2013 pages 80 81 notes consolidated financial statements pages 82 146 2financial statement schedule required filed item 8 form page schedule number report independent registered public accounting firm financial statement schedule s1 ii valuation qualifying accounts reserves schedules omitted required matter present amounts significant information shown consolidated financial statements notes thereto 3exhibits management contract compensatory plan arrangement performance graph set forth page 149 ibms 2015 annual report stockholders deemed furnished filed signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized international business machines corporation registrant virginia rometty virginia rometty chairman board president chief executive officer date february 23 2016 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated alain j p belda director william r brody director kenneth chenault director christina montgomery christina montgomery michael l eskew director attorneyinfact february 23 2016 david n farr director alex gorsky director shirley ann jackson director andrew n liveris director w james mcnerney jr director hutham olayan director james w owens director sidney taurel director peter r voser director report independent registered public accounting firm financial statement schedule stockholders board directors international business machines corporation audits consolidated financial statements effectiveness internal control financial reporting referred report dated february 23 2016 appearing 2015 annual report shareholders international business machines corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp pricewaterhousecoopers llp new york new york february 23 2016 schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions additions allowance doubtful accounts allowance inventory losses charged expense cost accounts respectively revenue based provisions charged revenue accounts primarily comprises currency translation adjustments s1 part item 1a risk factors item 1b unresolved staff comments item 2 properties item 3 legal proceedings item 4 mine safety disclosures part ii item 5 market registrants common equity related stockholder matters issuer purchases equity securities item 6 selected financial data item 7 managements discussion analysis financial condition results operations item 7a quantitative qualitative disclosures market risk item 8 financial statements supplementary data item 9 changes disagreements accountants accounting financial disclosure item 9a controls procedures item 9b information part iii item 10 directors executive officers corporate governance item 11 executive compensation item 12 security ownership certain beneficial owners management related stockholder matters item 13 certain relationships related transactions director independence item 14 principal accounting fees services part iv item 15 exhibits financial statement schedules signatures report independent registered public accounting firm financial statement schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millionsitem 15 exhibits financial statement schedules athe following documents filed part report 1financial statements ibms 2016 annual report stockholders incorporated herein reference report independent registered public accounting firm page 83 consolidated statement earnings years ended december 31 2016 2015 2014 page 84 consolidated statement comprehensive income years ended december 31 2016 2015 2014 page 85 consolidated statement financial position december 31 2016 2015 page 86 consolidated statement cash flows years ended december 31 2016 2015 2014 page 87 consolidated statement changes equity december 31 2016 2015 2014 pages 88 89 notes consolidated financial statements pages 90 154 2financial statement schedule required filed item 8 form page schedule number report independent registered public accounting firm financial statement schedule s1 ii valuation qualifying accounts reserves schedules omitted required matter present amounts significant information shown consolidated financial statements notes thereto 3exhibits management contract compensatory plan arrangement performance graphs set forth page 157 ibms 2016 annual report stockholders deemed furnished filed item 16 form 10k summary none signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized international business machines corporation registrant virginia rometty virginia rometty chairman board president chief executive officer date february 28 2017 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated kenneth chenault director christina montgomery christina montgomery michael l eskew director attorneyinfact february 28 2017 david n farr director mark fields director alex gorsky director shirley ann jackson director andrew n liveris director w james mcnerney jr director hutham olayan director james w owens director joan e spero director sidney taurel director peter r voser director report independent registered public accounting firm financial statement schedule stockholders board directors international business machines corporation audits consolidated financial statements effectiveness internal control financial reporting referred report dated february 28 2017 appearing 2016 annual report shareholders international business machines corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp pricewaterhousecoopers llp new york new york february 28 2017 schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions additions allowance credit losses allowance inventory losses charged expense cost accounts respectively revenue based provisions charged revenue accounts see note significant accounting policies exhibit 13 form 10k page 98 notes consolidated financial statements additional information regarding allowance credit loss writeoffs primarily comprises currency translation adjustments s1 part item 1a risk factors item 1b unresolved staff comments item 2 properties item 3 legal proceedings item 4 mine safety disclosures part ii item 5 market registrants common equity related stockholder matters issuer purchases equity securities item 6 selected financial data item 7 managements discussion analysis financial condition results operations item 7a quantitative qualitative disclosures market risk item 8 financial statements supplementary data item 9 changes disagreements accountants accounting financial disclosure item 9a controls procedures item 9b information part iii item 10 directors executive officers corporate governance item 11 executive compensation item 12 security ownership certain beneficial owners management related stockholder matters item 13 certain relationships related transactions director independence item 14 principal accounting fees services part iv item 15 exhibits financial statement schedules item 16 form 10k summary signatures report independent registered public accounting firm financial statement schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millionsitem 15 exhibits financial statement schedules athe following documents filed part report 1financial statements ibms 2018 annual report stockholders incorporated herein reference report independent registered public accounting firm page 69 consolidated statement earnings years ended december 31 2018 2017 2016 page 70 consolidated statement comprehensive income years ended december 31 2018 2017 2016 page 71 consolidated statement financial position december 31 2018 2017 page 72 consolidated statement cash flows years ended december 31 2018 2017 2016 page 73 consolidated statement changes equity december 31 2018 2017 2016 pages 74 75 notes consolidated financial statements pages 76 146 2financial statement schedule required filed item 8 form schedules omitted required matter present amounts significant information shown consolidated financial statements notes thereto 3exhibits management contract compensatory plan arrangement performance graphs set forth page 149 ibms 2018 annual report stockholders deemed furnished filed item 16 form 10k summary none signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized international business machines corporation registrant virginia rometty virginia rometty chairman board president chief executive officer date february 26 2019 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated christina montgomery christina montgomery michael l eskew director attorneyinfact february 26 2019 david n farr director alex gorsky director shirley ann jackson director andrew n liveris director james w owens director martha e pollack director sidney taurel director peter r voser director frederick h waddell director report independent registered public accounting firm financial statement schedule board directors stockholders international business machines corporation audits consolidated financial statements referred report dated february 26 2019 appearing 2018 annual report shareholders international business machines corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp pricewaterhousecoopers llp new york new york february 26 2019 schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions additions allowance credit losses allowance inventory losses charged expense cost accounts respectively revenue based provisions charged revenue accounts deductions represent reversal charges primarily comprises currency translation adjustments s1 part item 1a risk factors item 1b unresolved staff comments item 2 properties item 3 legal proceedings item 4 mine safety disclosures part ii item 5 market registrants common equity related stockholder matters issuer purchases equity securities item 6 selected financial data item 7 managements discussion analysis financial condition results operations item 7a quantitative qualitative disclosures market risk item 8 financial statements supplementary data item 9 changes disagreements accountants accounting financial disclosure item 9a controls procedures item 9b information part iii item 10 directors executive officers corporate governance item 11 executive compensation item 12 security ownership certain beneficial owners management related stockholder matters item 13 certain relationships related transactions director independence item 14 principal accounting fees services part iv item 15 exhibits financial statement schedules item 16 form 10k summary signatures report independent registered public accounting firm financial statement schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millionsitem 15 exhibits financial statement schedules athe following documents filed part report 1financial statements ibm’s 2019 annual report stockholders incorporated herein reference report independent registered public accounting firm page 66 67 consolidated income statement years ended december 31 2019 2018 2017 page 68 consolidated statement comprehensive income years ended december 31 2019 2018 2017 page 69 consolidated balance sheet december 31 2019 2018 page 70 consolidated statement cash flows years ended december 31 2019 2018 2017 page 71 consolidated statement equity december 31 2019 2018 2017 pages 72 73 notes consolidated financial statements pages 74 138 2financial statement schedule required filed item 8 form schedules omitted required matter present amounts significant information shown consolidated financial statements notes thereto 3exhibits reference number per item 601 regulation sk description exhibits exhibit number form 10k 2 plan acquisition reorganization arrangement liquidation succession applicable 3 certificate incorporation bylaws certificate incorporation ibm exhibit 32 form 8k filed april 27 2007 hereby incorporated reference bylaws ibm amended october 29 2019 exhibit 32 form 10q quarter ended september 30 2019 hereby incorporated reference bylaws ibm amended april 6 2020 32 4 instruments defining rights security holders instruments defining rights holders 700 debentures due 2025 700 debentures due 2045 exhibits 2 3 respectively form 8k filed october 30 1995 hereby incorporated reference number per item 601 regulation sk description exhibits exhibit number form 10k instrument defining rights holders 7125 debentures due 2096 exhibit 42 form 8ka filed december 6 1996 hereby incorporated reference instrument defining rights holders 622 debentures due 2027 exhibit 3 form 8k filed august 1 1997 hereby incorporated reference instrument defining rights holders 650 debentures due 2028 exhibit 2 form 8k filed january 8 1998 hereby incorporated reference instrument defining rights holders 2900 notes due 2021 exhibit 31 form 8k filed october 31 2011 hereby incorporated reference instruments defining rights holders 1875 notes due 2022 exhibit 21 form 8k filed july 27 2012 hereby incorporated reference instrument defining rights holders 1625 notes due 2020 exhibit 31 form 8k filed may 6 2013 hereby incorporated reference instrument defining rights holders 3375 notes due 2023 exhibit 2 form 8k filed july 31 2013 hereby incorporated reference instruments defining rights holders 1875 notes due 2020 2875 notes due 2025 exhibits 2 3 form 8k filed november 6 2013 hereby incorporated reference instrument defining rights holders 2750 notes due 2020 exhibit 2 form 8k filed november 20 2013 hereby incorporated reference instrument defining rights holders 3625 notes due 2024 exhibit 5 form 8k filed february 11 2014 hereby incorporated reference instrument defining rights holders floating rate notes due 2021 exhibit 2 form 8k filed november 5 2014 hereby incorporated reference instrument defining rights holders 1250 notes due 2023 exhibit 2 form 8k filed november 25 2014 hereby incorporated reference instrument defining rights holders 2625 notes due 2022 exhibit 2 form 8k filed august 4 2015 hereby incorporated reference instrument defining rights holders 2875 notes due 2022 exhibit 2 form 8k filed november 6 2015 hereby incorporated reference instruments defining rights holders 2250 notes due 2021 3450 notes due 2026 4700 notes due 2046 exhibits 43 44 45 form 8k filed february 18 2016 hereby incorporated reference instruments defining rights holders 0500 notes due 2021 1125 notes due 2024 1750 notes due 2028 exhibits 41 42 43 form 8k filed march 4 2016 hereby incorporated reference number per item 601 regulation sk description exhibits exhibit number form 10k instrument defining rights holders 030 notes due 2026 exhibit 4 form 8k filed november 1 2016 hereby incorporated reference instruments defining rights holders 2500 notes due 2022 3300 notes due 2027 exhibits 43 44 form 8k filed january 26 2017 hereby incorporated reference instruments defining rights holders 0950 notes due 2025 1500 notes due 2029 exhibits 41 42 form 8k filed may 22 2017 hereby incorporated reference instruments defining rights holders 0375 notes due 2023 0875 notes due 2025 1250 notes due 2027 1750 notes due 2031 exhibits 41 42 43 44 form 8k filed january 30 2019 hereby incorporated reference instruments defining rights holders floating rate notes due 2021 2800 notes due 2021 2850 notes due 2022 3000 notes due 2024 3300 notes due 2026 3500 notes due 2029 4150 notes due 2039 4250 notes due 2049 exhibits 41 42 43 44 45 46 47 48 form 8k filed may 14 2019 hereby incorporated reference instruments defining rights holders 0300 notes due 2028 0650 notes due 2032 1200 notes due 2040 exhibits 41 42 43 form 8k filed february 10 2020 hereby incorporated reference indenture dated october 1 1993 ibm bank new york mellon successor chase manhattan bank national association trustee exhibit 41 form 10q quarter ended september 30 2017 hereby incorporated reference first supplemental indenture dated october 1 1993 ibm bank new york mellon successor chase manhattan bank national association trustee dated december 15 1995 exhibit 42 form 10q quarter ended september 30 2017 hereby incorporated reference description securities registered section 12 exchange act 41 9 voting trust agreement applicable 10 material contracts ibm 2001 longterm performance plan compensatory plan contained registration statement 33387708 form s8 amended plan filed exhibit 101 form 10q quarter ended september 30 2007 hereby incorporated reference ibm pwcc acquisition longterm performance plan compensatory plan contained registration statement 333102872 form s8 amended plan filed exhibit 102 form 10q quarter ended september 30 2007 hereby incorporated reference ibm 1999 longterm performance plan compensatory plan contained registration statement 33330424 form s8 amended plan filed exhibit 103 form 10q quarter ended september 30 2007 hereby incorporated reference number per item 601 regulation sk description exhibits exhibit number form 10k ibm 1997 longterm performance plan compensatory plan contained registration statement 33331305 form s8 amended plan filed exhibit 104 form 10q quarter ended september 30 2007 hereby incorporated reference forms ltpp equity award agreements stock options restricted stock restricted stock units cashsettled restricted stock units sars ii retention restricted stock unit awards equity award agreement forms related terms conditions document effective june 9 2014 filed exhibit 101 exhibit 102 form 10q quarter ended march 31 2014 hereby incorporated reference form ltpp equity award agreement performance share units filed exhibit 101 form 10q quarter ended march 31 2015 hereby incorporated reference terms conditions ltpp equity award agreements filed exhibit 101 form 10q quarter ended june 30 2016 hereby incorporated reference form ltpp equity award agreement performance share units terms conditions ltpp equity awards effective june 1 2018 connection foregoing award agreements filed exhibit 101 form 10q quarter ended march 31 2018 hereby incorporated reference forms ltpp equity award agreements stock options restricted stock restricted stock units cashsettled restricted stock units sars ii performance share units iii retention restricted stock unit awards well terms conditions ltpp equity awards effective august 15 2018 connection foregoing award agreements filed exhibit 101 form 10q quarter ended june 30 2018 hereby incorporated reference forms equity award agreements stock options restricted stock restricted stock units cashsettled restricted stock units sars ii performance share units iii retention restricted stock unit awards well terms conditions ltpp equity awards effective october 1 2018 connection foregoing award agreements filed exhibit 101 form 10q quarter ended september 30 2018 hereby incorporated reference terms conditions ltpp equity award agreements filed exhibit 102 form 10q quarter ended march 31 2019 hereby incorporated reference forms equity award agreements stock options restricted stock restricted stock units cashsettled restricted stock units sars well terms conditions ltpp equity awards effective july 15 2019 connection foregoing award agreements filed exhibit 101 form 10q quarter ended june 30 2019 hereby incorporated reference number per item 601 regulation sk description exhibits exhibit number form 10k forms ltpp equity award agreements stock options restricted stock restricted stock units cashsettled restricted stock units sars ii performance share units well terms conditions ltpp equity awards effective october 1 2019 connection foregoing award agreements filed exhibit 101 form 10q quarter ended september 30 2019 hereby incorporated reference form ltpp equity award agreement performance share units terms conditions ltpp equity awards effective december 17 2019 connection foregoing award agreements 101 board directors compensatory plans described caption “general information2019 director compensation” ibm’s definitive proxy statement filed securities exchange commission delivered stockholders connection annual meeting stockholders held april 28 2020 hereby incorporated reference ibm nonemployee directors stock option plan contained registration statement 3360227 form s8 hereby incorporated reference ibm board directors amended restated deferred compensation equity award plan compensatory plan amended restated effective january 1 2014 filed exhibit 101 form 10k year ended december 31 2013 hereby incorporated reference amendment 1 amended restated deferred compensation equity award plan effective january 30 2018 filed exhibit 101 form 10k year ended december 31 2017 hereby incorporated reference ibm supplemental executive retention plan compensatory plan amended restated december 31 2008 filed exhibit 102 form 10k year ended december 31 2008 hereby incorporated reference amendment 1 ibm supplemental executive retention plan compensatory plan effective december 9 2014 filed exhibit 101 form 10k year ended december 31 2014 hereby incorporated reference ibm excess 401k plus plan compensatory plan formerly ibm executive deferred compensation plan amended restated january 1 2010 filed exhibit 101 form 10k year ended december 31 2009 contained registration statement 333171968 form s8 hereby incorporated reference amendment 1 ibm excess 401k plus plan compensatory plan effective january 1 2013 filed exhibit 101 form 10k year ended december 31 2012 hereby incorporated reference amendment 2 ibm excess 401k plus plan compensatory plan effective january 1 2013 filed exhibit 102 form 10k year ended december 31 2012 hereby incorporated reference amendment 3 ibm excess 401k plus plan compensatory plan effective january 1 2013 filed exhibit 102 form 10k year ended december 31 2013 hereby incorporated reference number per item 601 regulation sk description exhibits exhibit number form 10k amendment 4 ibm excess 401k plus plan compensatory plan dated february 25 2014 filed exhibit 101 form 10q quarter ended march 31 2014 hereby incorporated reference amendment 5 ibm excess 401k plus plan compensatory plan dated december 9 2014 filed exhibit 102 form 10k year ended december 31 2014 hereby incorporated reference amendment 6 ibm excess 401k plus plan compensatory plan dated december 18 2015 filed exhibit 101 form 10k year ended december 31 2015 hereby incorporated reference amendment 7 ibm excess 401k plus plan compensatory plan dated june 30 2016 filed exhibit 102 form 10q quarter ended june 30 2016 hereby incorporated reference amendment 8 ibm excess 401k plus plan compensatory plan dated december 31 2017 filed exhibit 102 form 10k year ended december 31 2017 hereby incorporated reference amendment 9 ibm excess 401k plus plan compensatory plan dated december 18 2018 filed exhibit 101 form 10k year ended december 31 2018 hereby incorporated reference ibm 2003 employees stock purchase plan contained registration statement 333104806 form s8 amended april 1 2005 filed exhibit 103 form 10q quarter ended march 31 2005 hereby incorporated reference form noncompetition agreement filed exhibit 102 form 10q quarter ended march 31 2009 hereby incorporated reference form noncompetition agreement filed exhibit 101 form 10q quarter ended march 31 2012 hereby incorporated reference form noncompetition agreement filed exhibit 102 form 10k year ended december 31 2015 hereby incorporated reference form noncompetition agreement filed exhibit 103 form 10q quarter ended june 30 2016 hereby incorporated reference form noncompetition agreement filed exhibit 101 form 10k year ended december 31 2016 hereby incorporated reference form noncompetition agreement filed exhibit 103 form 10k year ended december 31 2017 hereby incorporated reference form noncompetition agreement filed exhibit 102 form 10q quarter ended september 30 2018 hereby incorporated reference form noncompetition agreement 102 letter agreement signed erich clementi ibm effective april 30 2019 filed exhibit 101 form 10q quarter ended march 31 2019 hereby incorporated reference number per item 601 regulation sk description exhibits exhibit number form 10k 2500000000 364day credit agreement dated july 18 2019 among international business machines corporation ibm credit llc borrowers several lenders financial institutions time parties agreement jp morgan chase bank na administrative agent bnp paribas citibank na royal bank canada mizuho bank ltd syndication agents documentation agents named therein filed exhibit 101 form 8k dated july 19 2019 hereby incorporated reference amended restated 2500000000 threeyear credit agreement dated july 19 2018 among international business machines corporation ibm credit llc borrowers several lenders time parties agreement jpmorgan chase bank na administrative agent bnp paribas citibank na royal bank canada mizuho bank ltd syndication agents documentation agents named therein filed exhibit 102 form 8k dated july 20 2018 hereby incorporated reference amended restated 10250000000 fiveyear credit agreement dated july 19 2018 among international business machines corporation borrower several lenders time parties agreement jpmorgan chase bank na administrative agent bnp paribas citibank na royal bank canada mizuho bank ltd syndication agents documentation agents named therein filed exhibit 103 form 8k dated july 20 2018 hereby incorporated reference confirmation termination date extension 2500000000 amended restated threeyear credit agreement dated july 19 2018 among international business machines corporation ibm credit llc borrowers several lenders time parties agreement jpmorgan chase bank na administrative agent bnp paribas citibank na royal bank canada mizuho bank ltd syndication agents documentation agents named therein filed exhibit 102 form 8k dated july 19 2019 hereby incorporated reference confirmation termination date extension 10250000000 amended restated fiveyear credit agreement dated july 19 2018 among international business machines corporation borrower several lenders time parties agreement jpmorgan chase bank na administrative agent bnp paribas citibank na royal bank canada mizuho bank ltd syndication agents documentation agents named therein filed exhibit 103 form 8k dated july 19 2019 hereby incorporated reference 13 annual report security holders 18 letter change accounting principles applicable 21 subsidiaries registrant 23 consent independent registered public accounting firm 231 24 powers attorney 241 resolution ibm board directors authorizing execution annual report form 10k powers attorney 242 28 information reports furnished state insurance regulatory authorities applicable reference number per item 601 regulation sk description exhibits exhibit number form 10k 31 certification ceo pursuant rule 13a14a 15d14a securities exchange act 1934 adopted pursuant section 302 sarbanesoxley act 2002 311 certification cfo pursuant rule 13a14a 15d14a securities exchange act 1934 adopted pursuant section 302 sarbanesoxley act 2002 312 32 certification ceo pursuant 18 usc section 1350 adopted pursuant section 906 sarbanesoxley act 2002 321 certification cfo pursuant 18 usc section 1350 adopted pursuant section 906 sarbanesoxley act 2002 322 101ins xbrl instance document instance document appear interactive data file xbrl tags embedded within inline xbrl document 101sch xbrl taxonomy extension schema document 101cal xbrl taxonomy extension calculation linkbase document 101def xbrl taxonomy extension definition linkbase document 101lab xbrl taxonomy extension label linkbase document 101pre xbrl taxonomy extension presentation linkbase document cover page interactive data file cover page interactive data file appear interactive data file xbrl tags embedded within inline xbrl document management contract compensatory plan arrangement performance graphs set forth page 141 ibm’s 2019 annual report stockholders deemed furnished filed item 16 form 10k summary none signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized international business machines corporation registrant virginia rometty virginia rometty chairman board president chief executive officer date february 25 2020 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature title date virginia rometty chairman board president chief executive officer february 25 2020 virginia rometty james j kavanaugh senior vice president chief financial officer finance operations february 25 2020 james j kavanaugh robert f del bene vice president controller chief accounting officer february 25 2020 robert f del bene frank sedlarcik frank sedlarcik michael l eskew director attorneyinfact february 25 2020 david n farr director alex gorsky director michelle howard director shirley ann jackson director andrew n liveris director f william mcnabb iii director martha e pollack director joseph r swedish director sidney taurel director peter r voser director frederick h waddell director report independent registered public accounting firm financial statement schedule board directors stockholders international business machines corporation audits consolidated financial statements referred report dated february 25 2020 appearing 2019 annual report stockholders international business machines corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp pricewaterhousecoopers llp new york new york february 25 2020 schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions reclassifed conform 2019 presentation additionsdeductions allowances represent changes estimates unrecoverable amounts receivables inventory recorded expense cost accounts respectively amounts writtenoff deemed unrecoverable company additionsdeductions revenue based provisions represent changes estimated reductions revenue primarily result revenuerelated programs including customer business partner rebates writeoffs revenue based provisions represent reductions provision due amounts remitted customers business partners primarily comprises currency translation adjustments s1item 15 exhibits financial statement schedules athe following documents filed part report 1financial statements ibm’s 2020 annual report stockholders incorporated herein reference report independent registered public accounting firm page 66 67 consolidated income statement years ended december 31 2020 2019 2018 page 68 consolidated statement comprehensive income years ended december 31 2020 2019 2018 page 69 consolidated balance sheet december 31 2020 2019 page 70 consolidated statement cash flows years ended december 31 2020 2019 2018 page 71 consolidated statement equity december 31 2020 2019 2018 pages 72 73 notes consolidated financial statements pages 74 140 2financial statement schedule required filed item 8 form page schedule number report independent registered public accounting firm financial statement schedule s1 ii valuation qualifying accounts reserves years ended december 31 2020 2019 2018 schedules omitted required matter present amounts significant information shown consolidated financial statements notes thereto 3exhibits reference number per item 601 regulation sk description exhibits exhibit number form 10k 3 certificate incorporation bylaws certificate incorporation ibm exhibit 32 form 8k filed april 27 2007 hereby incorporated reference bylaws ibm amended january 1 2021 exhibit 32 form 8k filed december 18 2020 hereby incorporated reference bylaws ibm amended effective april 27 2021 32 4 instruments defining rights security holders instruments defining rights holders 700 debentures due 2025 700 debentures due 2045 exhibits 2 3 respectively form 8k filed october 30 1995 hereby incorporated reference instrument defining rights holders 7125 debentures due 2096 exhibit 42 form 8ka filed december 6 1996 hereby incorporated reference number per item 601 regulation sk description exhibits exhibit number form 10k instrument defining rights holders 622 debentures due 2027 exhibit 3 form 8k filed august 1 1997 hereby incorporated reference instrument defining rights holders 650 debentures due 2028 exhibit 2 form 8k filed january 8 1998 hereby incorporated reference instrument defining rights holders 1875 notes due 2022 exhibit 21 form 8k filed july 27 2012 hereby incorporated reference instrument defining rights holders 3375 notes due 2023 exhibit 2 form 8k filed july 31 2013 hereby incorporated reference instrument defining rights holders 2875 notes due 2025 exhibit 3 form 8k filed november 6 2013 hereby incorporated reference instrument defining rights holders 3625 notes due 2024 exhibit 5 form 8k filed february 11 2014 hereby incorporated reference instrument defining rights holders floating rate notes due 2021 exhibit 2 form 8k filed november 5 2014 hereby incorporated reference instrument defining rights holders 1250 notes due 2023 exhibit 2 form 8k filed november 25 2014 hereby incorporated reference instrument defining rights holders 2625 notes due 2022 exhibit 2 form 8k filed august 4 2015 hereby incorporated reference instrument defining rights holders 2875 notes due 2022 exhibit 2 form 8k filed november 6 2015 hereby incorporated reference instruments defining rights holders 3450 notes due 2026 4700 notes due 2046 exhibits 44 45 form 8k filed february 18 2016 hereby incorporated reference instruments defining rights holders 0500 notes due 2021 1125 notes due 2024 1750 notes due 2028 exhibits 41 42 43 form 8k filed march 4 2016 hereby incorporated reference instrument defining rights holders 0300 notes due 2026 exhibit 4 form 8k filed november 1 2016 hereby incorporated reference instruments defining rights holders 2500 notes due 2022 3300 notes due 2027 exhibits 43 44 form 8k filed january 26 2017 hereby incorporated reference instruments defining rights holders 0950 notes due 2025 1500 notes due 2029 exhibits 41 42 form 8k filed may 22 2017 hereby incorporated reference number per item 601 regulation sk description exhibits exhibit number form 10k instruments defining rights holders 0375 notes due 2023 0875 notes due 2025 1250 notes due 2027 1750 notes due 2031 exhibits 41 42 43 44 form 8k filed january 30 2019 hereby incorporated reference instruments defining rights holders floating rate notes due 2021 2850 notes due 2022 3000 notes due 2024 3300 notes due 2026 3500 notes due 2029 4150 notes due 2039 4250 notes due 2049 exhibits 41 43 44 45 46 47 48 form 8k filed may 14 2019 hereby incorporated reference instruments defining rights holders 0300 notes due 2028 0650 notes due 2032 1200 notes due 2040 exhibits 41 42 43 form 8k filed february 10 2020 hereby incorporated reference instruments defining rights holders 1700 notes due 2027 1950 notes due 2030 2850 notes due 2040 2950 notes due 2050 exhibits 41 42 43 44 form 8k filed may 6 2020 hereby incorporated reference indenture dated october 1 1993 ibm bank new york mellon successor chase manhattan bank national association trustee exhibit 41 form 10q quarter ended september 30 2017 hereby incorporated reference first supplemental indenture dated october 1 1993 ibm bank new york mellon successor chase manhattan bank national association trustee dated december 15 1995 exhibit 42 form 10q quarter ended september 30 2017 hereby incorporated reference description securities registered section 12 exchange act 41 10 material contracts ibm 2001 longterm performance plan compensatory plan contained registration statement 33387708 form s8 amended plan filed exhibit 101 form 10q quarter ended september 30 2007 hereby incorporated reference ibm pwcc acquisition longterm performance plan compensatory plan contained registration statement 333102872 form s8 amended plan filed exhibit 102 form 10q quarter ended september 30 2007 hereby incorporated reference ibm red hat acquisition longterm performancce plan compensatory plan contained registration statement 333232585 form s8 amended plan filed exhibit 48 form s8 pos filed december 18 2020 hereby incorporated reference ibm 1999 longterm performance plan compensatory plan contained registration statement 33330424 form s8 amended plan filed exhibit 103 form 10q quarter ended september 30 2007 hereby incorporated reference number per item 601 regulation sk description exhibits exhibit number form 10k ibm 1997 longterm performance plan compensatory plan contained registration statement 33331305 form s8 amended plan filed exhibit 104 form 10q quarter ended september 30 2007 hereby incorporated reference forms ltpp equity award agreements stock options restricted stock restricted stock units cashsettled restricted stock units sars ii retention restricted stock unit awards equity award agreement forms related terms conditions document effective june 9 2014 filed exhibit 101 exhibit 102 form 10q quarter ended march 31 2014 hereby incorporated reference form ltpp equity award agreement performance share units filed exhibit 101 form 10q quarter ended march 31 2015 hereby incorporated reference terms conditions ltpp equity award agreements filed exhibit 101 form 10q quarter ended june 30 2016 hereby incorporated reference form ltpp equity award agreement performance share units terms conditions ltpp equity awards effective june 1 2018 connection foregoing award agreements filed exhibit 101 form 10q quarter ended march 31 2018 hereby incorporated reference forms ltpp equity award agreements stock options restricted stock restricted stock units cashsettled restricted stock units sars ii performance share units iii retention restricted stock unit awards well terms conditions ltpp equity awards effective august 15 2018 connection foregoing award agreements filed exhibit 101 form 10q quarter ended june 30 2018 hereby incorporated reference forms equity award agreements stock options restricted stock restricted stock units cashsettled restricted stock units sars ii performance share units iii retention restricted stock unit awards well terms conditions ltpp equity awards effective october 1 2018 connection foregoing award agreements filed exhibit 101 form 10q quarter ended september 30 2018 hereby incorporated reference terms conditions ltpp equity award agreements filed exhibit 102 form 10q quarter ended march 31 2019 hereby incorporated reference forms equity award agreements stock options restricted stock restricted stock units cashsettled restricted stock units sars well terms conditions ltpp equity awards effective july 15 2019 connection foregoing award agreements filed exhibit 101 form 10q quarter ended june 30 2019 hereby incorporated reference number per item 601 regulation sk description exhibits exhibit number form 10k forms ltpp equity award agreements stock options restricted stock restricted stock units cashsettled restricted stock units sars ii performance share units well terms conditions ltpp equity awards effective october 1 2019 connection foregoing award agreements filed exhibit 101 form 10q quarter ended september 30 2019 hereby incorporated reference form ltpp equity award agreement performance share units terms conditions ltpp equity awards effective december 17 2019 connection foregoing award agreements filed exhibit 101 form 10k year ended december 31 2019 hereby incorporated reference form ltpp equity award agreement performance share units terms conditions ltpp equity awards effective march 2 2020 connection foregoing award agreements filed exhibit 101 form 10q quarter ended march 31 2020 hereby incorporated reference terms conditions ibm ltpp equity awards effective june 1 2020 filed exhibit 101 form 10q quarter ended june 30 2020 hereby incorporated reference board directors compensatory plans described caption “general information2020 director compensation” ibm’s definitive proxy statement filed securities exchange commission delivered stockholders connection annual meeting stockholders held april 27 2021 hereby incorporated reference ibm nonemployee directors stock option plan contained registration statement 3360227 form s8 hereby incorporated reference ibm board directors amended restated deferred compensation equity award plan compensatory plan amended restated effective january 1 2014 filed exhibit 101 form 10k year ended december 31 2013 hereby incorporated reference amendment 1 amended restated deferred compensation equity award plan effective january 30 2018 filed exhibit 101 form 10k year ended december 31 2017 hereby incorporated reference ibm supplemental executive retention plan compensatory plan amended restated december 31 2008 filed exhibit 102 form 10k year ended december 31 2008 hereby incorporated reference amendment 1 ibm supplemental executive retention plan compensatory plan effective december 9 2014 filed exhibit 101 form 10k year ended december 31 2014 hereby incorporated reference ibm excess 401k plus plan compensatory plan formerly ibm executive deferred compensation plan amended restated january 1 2021 101 reference number per item 601 regulation sk description exhibits exhibit number form 10k ibm 2003 employees stock purchase plan contained registration statement 333104806 form s8 amended april 1 2005 filed exhibit 103 form 10q quarter ended march 31 2005 hereby incorporated reference form noncompetition agreement filed exhibit 102 form 10q quarter ended march 31 2009 hereby incorporated reference form noncompetition agreement filed exhibit 101 form 10q quarter ended march 31 2012 hereby incorporated reference form noncompetition agreement filed exhibit 102 form 10k year ended december 31 2015 hereby incorporated reference form noncompetition agreement filed exhibit 103 form 10q quarter ended june 30 2016 hereby incorporated reference form noncompetition agreement filed exhibit 101 form 10k year ended december 31 2016 hereby incorporated reference form noncompetition agreement filed exhibit 103 form 10k year ended december 31 2017 hereby incorporated reference form noncompetition agreement filed exhibit 102 form 10q quarter ended september 30 2018 hereby incorporated reference form noncompetition agreement filed exhibit 102 form 10k year ended december 31 2019 hereby incorporated reference form noncompetition agreement 102 letter agreement signed james whitehurst ibm dated october 28 2018 103 letter agreement signed james whitehurst ibm dated december 12 2019 104 letter agreement signed erich clementi ibm effective april 30 2019 filed exhibit 101 form 10q quarter ended march 31 2019 hereby incorporated reference letter dated december 15 2020 signed virginia rometty ibm included exhibit 992 form 8k filed december 16 2020 hereby incorporated reference letter dated december 15 2020 signed john e kelly iii ibm included exhibit 991 form 8k filed december 18 2020 hereby incorporated reference 2500000000 364day credit agreement dated july 2 2020 among international business machines corporation ibm credit llc borrowers several lenders financial institutions time parties agreement jp morgan chase bank na administrative agent bnp paribas citibank na royal bank canada mizuho bank ltd syndication agents documentation agents named therein filed exhibit 101 form 8k dated july 2 2020 hereby incorporated reference number per item 601 regulation sk description exhibits exhibit number form 10k amended restated 2500000000 threeyear credit agreement dated july 19 2018 among international business machines corporation ibm credit llc borrowers several lenders time parties agreement jpmorgan chase bank na administrative agent bnp paribas citibank na royal bank canada mizuho bank ltd syndication agents documentation agents named therein filed exhibit 102 form 8k dated july 20 2018 hereby incorporated reference amended restated 10250000000 fiveyear credit agreement dated july 19 2018 among international business machines corporation borrower several lenders time parties agreement jpmorgan chase bank na administrative agent bnp paribas citibank na royal bank canada mizuho bank ltd syndication agents documentation agents named therein filed exhibit 103 form 8k dated july 20 2018 hereby incorporated reference confirmation termination date extension 2500000000 amended restated threeyear credit agreement dated july 19 2018 among international business machines corporation ibm credit llc borrowers several lenders time parties agreement jpmorgan chase bank na administrative agent bnp paribas citibank na royal bank canada mizuho bank ltd syndication agents documentation agents named therein filed exhibit 102 form 8k dated july 19 2019 hereby incorporated reference confirmation termination date extension 10250000000 amended restated fiveyear credit agreement dated july 19 2018 among international business machines corporation borrower several lenders time parties agreement jpmorgan chase bank na administrative agent bnp paribas citibank na royal bank canada mizuho bank ltd syndication agents documentation agents named therein filed exhibit 103 form 8k dated july 19 2019 hereby incorporated reference first amendment 2500000000 amended restated threeyear credit agreement dated july 2 2020 among international business machines corporation ibm credit llc borrowers several lenders time parties agreement jpmorgan chase bank na administrative agent bnp paribas citibank na royal bank canada mizuho bank ltd syndication agents documentation agents named therein filed exhibit 102 form 8k dated july 2 2020 hereby incorporated reference first amendment 10250000000 amended restated fiveyear credit agreement dated july 2 2020 among international business machines corporation borrower several lenders time parties agreement jpmorgan chase bank na administrative agent bnp paribas citibank na royal bank canada mizuho bank ltd syndication agents documentation agents named therein filed exhibit 103 form 8k dated july 2 2020 hereby incorporated reference 13 annual report security holders 21 subsidiaries registrant reference number per item 601 regulation sk description exhibits exhibit number form 10k 23 consent independent registered public accounting firm 231 24 powers attorney 241 resolution ibm board directors authorizing execution annual report form 10k powers attorney 242 31 certification ceo pursuant rule 13a14a 15d14a securities exchange act 1934 adopted pursuant section 302 sarbanesoxley act 2002 311 certification cfo pursuant rule 13a14a 15d14a securities exchange act 1934 adopted pursuant section 302 sarbanesoxley act 2002 312 32 certification ceo pursuant 18 usc section 1350 adopted pursuant section 906 sarbanesoxley act 2002 321 certification cfo pursuant 18 usc section 1350 adopted pursuant section 906 sarbanesoxley act 2002 322 101ins xbrl instance document instance document appear interactive data file xbrl tags embedded within inline xbrl document 101sch xbrl taxonomy extension schema document 101cal xbrl taxonomy extension calculation linkbase document 101def xbrl taxonomy extension definition linkbase document 101lab xbrl taxonomy extension label linkbase document 101pre xbrl taxonomy extension presentation linkbase document cover page interactive data file cover page interactive data file appear interactive data file xbrl tags embedded within inline xbrl document management contract compensatory plan arrangement performance graph set forth page 141 ibm’s 2020 annual report stockholders deemed furnished filed item 16 form 10k summary none 1 2 signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized international business machines corporation registrant arvind krishna arvind krishna chairman board chief executive officer date february 23 2021 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature title date arvind krishna chairman board chief executive officer february 23 2021 arvind krishna james j kavanaugh senior vice president chief financial officer finance operations february 23 2021 james j kavanaugh robert f del bene vice president controller chief accounting officer february 23 2021 robert f del bene 2 board directors frank sedlarcik frank sedlarcik thomas buberl director attorneyinfact february 23 2021 michael l eskew director david n farr director alex gorsky director michelle howard director andrew n liveris director f william mcnabb iii director martha e pollack director joseph r swedish director sidney taurel director peter r voser director frederick h waddell director report independent registered public accounting firm financial statement schedule board directors stockholders international business machines corporation audits consolidated financial statements referred report dated february 23 2021 appearing 2020 annual report stockholders international business machines corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp pricewaterhousecoopers llp new york new york february 23 2021 schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions opening balance equal allowance december 31 2019 due adoption guidance current expected credit losses additionsdeductions allowances represent changes estimates unrecoverable amounts receivables inventory recorded expense cost accounts respectively amounts writtenoff deemed unrecoverable company additionsdeductions revenue based provisions represent changes estimated reductions revenue primarily result revenuerelated programs including customer business partner rebates writeoffs revenue based provisions represent reductions provision due amounts remitted customers business partners primarily comprises currency translation adjustments s1nanitem 15 exhibits financial statement schedules athe following documents filed part report 1financial statements ibms 2017 annual report stockholders incorporated herein reference report independent registered public accounting firm page 77 consolidated statement earnings years ended december 31 2017 2016 2015 page 78 consolidated statement comprehensive income years ended december 31 2017 2016 2015 page 79 consolidated statement financial position december 31 2017 2016 page 80 consolidated statement cash flows years ended december 31 2017 2016 2015 page 81 consolidated statement changes equity december 31 2017 2016 2015 pages 82 83 notes consolidated financial statements pages 84 146 2financial statement schedule required filed item 8 form schedules omitted required matter present amounts significant information shown consolidated financial statements notes thereto 3exhibits management contract compensatory plan arrangement performance graphs set forth page 149 ibms 2017 annual report stockholders deemed furnished filed item 16 form 10k summary none signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized international business machines corporation registrant virginia rometty virginia rometty chairman board president chief executive officer date february 27 2018 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated kenneth chenault director christina montgomery christina montgomery michael l eskew director attorneyinfact february 27 2018 david n farr director mark fields director alex gorsky director shirley ann jackson director andrew n liveris director w james mcnerney jr director hutham olayan director james w owens director joseph r swedish director sidney taurel director peter r voser director frederick h waddell director report independent registered public accounting firm financial statement schedule board directors stockholders international business machines corporation audits consolidated financial statements referred report dated february 27 2018 appearing 2017 annual report shareholders international business machines corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp pricewaterhousecoopers llp new york new york february 27 2018 schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions additions allowance credit losses allowance inventory losses charged expense cost accounts respectively revenue based provisions charged revenue accounts deductions represent reversal charges primarily comprises currency translation adjustments s1 part item 1a risk factors item 1b unresolved staff comments item 2 properties item 3 legal proceedings item 4 mine safety disclosures part ii item 5 market registrants common equity related stockholder matters issuer purchases equity securities item 6 selected financial data item 7 managements discussion analysis financial condition results operations item 7a quantitative qualitative disclosures market risk item 8 financial statements supplementary data item 9 changes disagreements accountants accounting financial disclosure item 9a controls procedures item 9b information part iii item 10 directors executive officers corporate governance item 11 executive compensation item 12 security ownership certain beneficial owners management related stockholder matters item 13 certain relationships related transactions director independence item 14 principal accounting fees services part iv item 15 exhibits financial statement schedules item 16 form 10k summary signatures report independent registered public accounting firm financial statement schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millionsitem 15 exhibits financial statement schedules athe following documents filed part report 1financial statements ibms 2006 annual report stockholders incorporated herein reference report independent registered public accounting firm page 55 consolidated statement earnings years ended december 31 2006 2005 2004 page 56 consolidated statement financial position december 31 2006 2005 page 57 consolidated statement cash flows years ended december 31 2006 2005 2004 page 58 consolidated statement stockholders equity december 31 2006 2005 2004 pages 59 61 notes consolidated financial statements pages 62 115 2financial statement schedules required filed item 8 form page schedule number report independent registered public accounting firm financial statement schedule report independent registered public accounting firm s1 ii valuation qualifying accounts reserves schedules omitted required matter present amounts significant information shown consolidated financial statements notes thereto 3exhibits included form 10k computation ratio earnings continuing operations fixed charges ibms 2006 annual report stockholders certain sections incorporated herein reference subsidiaries 231 consent independent registered public accounting firm 232 consent independent registered public accounting firm 241 powers attorney 242 resolutions ibm board directors authorizing execution report powers attorney 311 certification ceo pursuant rule 13a14a 15d14a securities exchange act 1934 adopted pursuant section 302 sarbanesoxley act 2002 312 certification cfo pursuant rule 13a14a 15d14a securities exchange act 1934 adopted pursuant section 302 sarbanesoxley act 2002 321 certification ceo pursuant 18 usc section 1350 adopted pursuant section 906 sarbanesoxley act 2002 322 certification cfo pursuant 18 usc section 1350 adopted pursuant section 906 sarbanesoxley act 2002 included form 10k bylaws ibm amended april 25 2006 exhibit 3 form 10q filed april 25 2006 hereby incorporated reference certificate incorporation ibm exhibit 31 form 8k filed november 30 2006 hereby incorporated reference ibm 1999 long term performance plan compensatory plan contained registration statement 33330424 form s8 amended plan filed exhibit 101 form 10q quarter ended september 30 2004 hereby incorporated reference ibm 2001 long term performance plan compensatory plan contained registration statement 33387708 form s8 amended plan filed exhibit 102 form 10q quarter ended september 30 2004 hereby incorporated reference ibm pwcc acquisition long term performance plan compensatory plan contained registration statement 333102872 form s8 amended plan filed exhibit 103 form 10q quarter ended september 30 2004 hereby incorporated reference december 2005 amendments ibm executive deferred compensation plan compensatory plan filed exhibit 101 form 10k year ended december 31 2005 incorporated reference registration statement 33333692 form s8 dated march 31 2000 hereby incorporated reference ibm supplemental executive retention plan compensatory plan effective july 1 1999 amended february 17 2006 filed exhibit 102 form 10k year ended december 31 2005 hereby incorporated reference december 2005 amendments ibm savings plan compensatory plan filed exhibit 103 form 10k year ended december 31 2005 incorporated reference registration statement 33309055 form s8 dated july 29 1996 hereby incorporated reference forms ltpp stock option award agreement buyfirst stock option award agreement restricted stock unit agreement special restricted stock unit agreement performance stock unit award agreement filed exhibit 104 form 10k year ended december 31 2005 hereby incorporated reference form restricted stock unit stock option award agreement filed exhibit 104 form 10q quarter ended september 30 2004 hereby incorporated reference form noncompetition agreement filed attachment 1 form 8k dated april 6 2005 hereby incorporated reference board directors compensatory plans described caption general information2006 directors compensation ibms definitive proxy statement filed securities exchange commission delivered stockholders connection annual meeting stockholders held april 24 2007 hereby incorporated reference ibm board directors deferred compensation equity award plan exhibit x form 10k year ended december 31 1995 hereby incorporated reference ibm nonemployee directors stock option plan appendix b ibms definitive proxy statement dated march 14 1995 hereby incorporated reference ibm executive deferred compensation plan contained registration statement 33333692 exhibit 4 form s8 filed march 31 2000 hereby incorporated reference ibm extended tax deferred savings plan exhibit x form 10k year ended december 31 1994 hereby incorporated reference ibm savings plan compensatory plan amended restated effective january 1 2005 plan previously filed exhibit 4 registration statement 33309055 form s8 dated july 29 1996 plan amended filed exhibit 101 form 10q quarter ended march 31 2005 hereby incorporated reference amendments ibm executive deferred compensation plan compensatory plan previously filed exhibit 4 registration statement 33333692 form s8 dated march 31 2000 plan amended filed exhibit 102 form 10q quarter ended march 31 2005 hereby incorporated reference ibm 2003 employees stock purchase plan amended april 1 2005 plan previously filed appendix ibms definitive proxy statement dated march 10 2003 plan amended filed exhibit 103 form 10q quarter ended march 31 2005 hereby incorporated reference 10000000000 5year credit agreement dated june 28 2006 among international business machines corporation subsidiary borrower several banks financial institutions time parties credit agreement jpmorgan chase bank na administrative agent lenders citibank na syndication agent filed exhibit 101 form 8k dated june 29 2006 hereby incorporated reference instruments defining rights holders 750 debentures due 2013 exhibits 4a 4l registration statement 33494751 form s3 filed may 24 1993 hereby incorporated reference instruments defining rights holders 8375 debentures due 2019 exhibits 4abc registration statement 3331732 form s3 filed october 24 1989 hereby incorporated reference instruments defining rights holders 700 debentures due 2025 700 debentures due 2045 exhibit 2 3 form 8k filed october 30 1995 hereby incorporated reference instrument defining rights holders 7125 debentures due 2096 exhibit 2 form 8ka filed december 6 1996 hereby incorporated reference instruments defining rights holders 645 notes due 2007 622 debentures due 2027 exhibits 2 3 form 8k filed august 1 1997 hereby incorporated reference instruments defining rights holders 650 debentures due 2028 exhibit 2 form 8k filed january 8 1998 hereby incorporated reference instruments defining rights holders 5375 notes due 2009 exhibit 2 form 8k filed january 29 1999 hereby incorporated reference instruments defining rights holders 400 notes due 2011 exhibit 2 form 8k filed november 9 2006 hereby incorporated reference ibms definitive proxy statement filed securities exchange commission delivered stockholders connection annual meeting stockholders held april 24 2007 certain sections incorporated herein reference signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized international business machines corporation registrant samuel j palmisano samuel j palmisano chairman board president chief executive officer date february 27 2007 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature title date mark loughridge mark loughridge senior vice president chief financial officer february 27 2007 timothy shaughnessy timothy shaughnessy vice president controller february 27 2007 cathleen black kenneth chenault juergen dormann michael l eskew shirley ann jackson minoru makihara lucio noto james w owens joan e spero sidney taurel charles vest lorenzo h zambrano director daniel e odonnell daniel e odonnell attorneyinfact february 27 2007 report independent registered public accounting firm financial statement schedule stockholders board directors international business machines corporation audits consolidated financial statements managements assessment effectiveness internal control financial reporting effectiveness internal control financial reporting referred report dated february 27 2007 appearing 2006 annual report shareholders international business machines corporation report consolidated financial statements assessment incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp pricewaterhousecoopers llp new york new york february 27 2007 report independent registered public accounting firm board directors international business machines corporation audited statement revenues expenses business consulting services reporting unit reporting unit reporting unit defined statement financial accounting standards 142 international business machines corporation company year ended december 31 2004 statement separately presented herein statement responsibility companys management responsibility express opinion statement based audit conducted audit accordance auditing standards public company accounting oversight board united states standards require plan perform audit obtain reasonable assurance whether statement free material misstatement audit includes examining test basis evidence supporting amounts disclosures statement audit also includes assessing accounting principles used significant estimates made management well evaluating overall presentation statement believe audit provides reasonable basis opinion statement prepared purpose complying rules regulations securities exchange commission use company connection various filings commission certain corporate expenses responsibility reporting unit allocated excluded statement accordingly statement intended complete presentation results operations reporting unit opinion statement referred present fairly material respects revenues expenses reporting unit year ended december 31 2004 conformity us generally accepted accounting principles ernst young llp ernst young llp new york new york february 22 2005 schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions additions allowance doubtful accounts allowance inventory losses charged cost expense accounts revenue based provisions charged revenue accounts primarily comprises currency translation adjustments s1 exhibit index management contract compensatory plan arrangement performance graphs set forth pages 118 119 ibms 2006 annual report stockholders deemed furnished filed part item 1a risk factors item 1b unresolved staff comments item 2 properties item 3 legal proceedings item 4 submission matters vote security holders part ii item 5 market registrants common equity related stockholder matters issuer purchases equity securities item 6 selected financial data item 7 managements discussion analysis financial condition results operations item 7a quantitative qualitative disclosures market risks item 8 financial statements supplementary data item 9 changes disagreements accountants accounting financial disclosure item 9a controls procedures item 9b information part iii item 10 directors executive officers corporate governance item 11 executive compensation item 12 security ownership certain beneficial owners management related stockholder matters item 13 certain relationships related transactions director independence item 14 principal accounting fees services part iv item 15 exhibits financial statement schedules signatures report independent registered public accounting firm financial statement schedule report independent registered public accounting firm schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions exhibit indexitem 15 exhibits financial statement schedules athe following documents filed part report 1financial statements ibms 2007 annual report stockholders incorporated herein reference report independent registered public accounting firm page 57 consolidated statement earnings years ended december 31 2007 2006 2005 page 58 consolidated statement financial position december 31 2007 2006 page 59 consolidated statement cash flows years ended december 31 2007 2006 2005 page 60 consolidated statement stockholders equity december 31 2007 2006 2005 pages 61 63 notes consolidated financial statements pages 64 119 2financial statement schedules required filed item 8 form page schedule number report independent registered public accounting firm financial statement schedule s1 ii valuation qualifying accounts reserves schedules omitted required matter present amounts significant information shown consolidated financial statements notes thereto 3exhibits included form 10k 101 forms ltpp equity award agreements stock options restricted stock restricted stock units cashsettled restricted stock units sars ii performance share units iii retention restricted stock unit award terms conditions document connection foregoing award agreements computation ratio earnings continuing operations fixed charges ibms 2007 annual report stockholders certain sections incorporated herein reference subsidiaries 231 consent independent registered public accounting firm 241 powers attorney 242 resolutions ibm board directors authorizing execution report powers attorney 311 certification ceo pursuant rule 13a14a 15d14a securities exchange act 1934 adopted pursuant section 302 sarbanesoxley act 2002 312 certification cfo pursuant rule 13a14a 15d14a securities exchange act 1934 adopted pursuant section 302 sarbanesoxley act 2002 321 certification ceo pursuant 18 usc section 1350 adopted pursuant section 906 sarbanesoxley act 2002 322 certification cfo pursuant 18 usc section 1350 adopted pursuant section 906 sarbanesoxley act 2002 included form 10k bylaws ibm amended july 31 2007 exhibit 3 form 10q filed july 31 2007 hereby incorporated reference certificate incorporation ibm exhibit 31 form 8k filed november 30 2006 hereby incorporated reference ibm 1999 long term performance plan compensatory plan contained registration statement 33330424 form s8 amended plan filed exhibit 103 form 10q quarter ended september 30 2007 hereby incorporated reference ibm 2001 long term performance plan compensatory plan contained registration statement 33387708 form s8 amended plan filed exhibit 101 form 10q quarter ended september 30 2007 hereby incorporated reference ibm pwcc acquisition long term performance plan compensatory plan contained registration statement 333102872 form s8 amended plan filed exhibit 102 form 10q quarter ended september 30 2007 hereby incorporated reference ibm 1997 longterm performance plan compensatory plan filed july 15 1997 registration statement 33331305 form s8 amended plan filed exhibit 104 form 10q quarter ended september 31 2007 hereby incorporated reference ibm 1994 longterm performance plan compensatory plan filed may 24 1994 registration statement 3353777 form s8 amended plan filed exhibit 105 form 10q quarter ended september 31 2007 hereby incorporated reference december 2005 amendments ibm executive deferred compensation plan compensatory plan filed exhibit 101 form 10k year ended december 31 2005 incorporated reference registration statement 33333692 form s8 dated march 31 2000 hereby incorporated reference ibm supplemental executive retention plan compensatory plan effective july 1 1999 amended february 17 2006 filed exhibit 102 form 10k year ended december 31 2005 hereby incorporated reference december 2005 amendments ibm savings plan compensatory plan filed exhibit 103 form 10k year ended december 31 2005 incorporated reference registration statement 33309055 form s8 dated july 29 1996 hereby incorporated reference form noncompetition agreement filed attachment 1 form 8k dated april 6 2005 hereby incorporated reference board directors compensatory plans described caption general information2007 director compensation ibms definitive proxy statement filed securities exchange commission delivered stockholders connection annual meeting stockholders held april 29 2008 hereby incorporated reference ibm board directors deferred compensation equity award plan exhibit x form 10k year ended december 31 1995 hereby incorporated reference ibm nonemployee directors stock option plan appendix b ibms definitive proxy statement dated march 14 1995 hereby incorporated reference ibm executive deferred compensation plan contained registration statement 33333692 exhibit 4 form s8 filed march 31 2000 hereby incorporated reference ibm extended tax deferred savings plan exhibit x form 10k year ended december 31 1994 hereby incorporated reference ibm savings plan compensatory plan amended restated effective january 1 2005 plan previously filed exhibit 4 registration statement 33309055 form s8 dated july 29 1996 plan amended filed exhibit 101 form 10q quarter ended march 31 2005 hereby incorporated reference amendments ibm executive deferred compensation plan compensatory plan previously filed exhibit 4 registration statement 33333692 form s8 dated march 31 2000 plan amended filed exhibit 102 form 10q quarter ended march 31 2005 hereby incorporated reference ibm 2003 employees stock purchase plan amended april 1 2005 plan previously filed appendix ibms definitive proxy statement dated march 10 2003 plan amended filed exhibit 103 form 10q quarter ended march 31 2005 hereby incorporated reference 10000000000 5year credit agreement dated june 28 2006 among international business machines corporation subsidiary borrower several banks financial institutions time parties credit agreement jpmorgan chase bank na administrative agent lenders citibank na syndication agent filed exhibit 101 form 8k dated june 29 2006 hereby incorporated reference 11500000000 term loan agreement dated may 25 2007 among ibm international group bv borrower several banks financial institutions time parties thereto lenders morgan stanley senior funding inc administrative agent lenders deutsche bank ag cayman islands branch documentation agent lehman commercial paper inc syndication agent filed exhibit 101 form 10q quarter ended june 30 2007 hereby incorporated reference guaranty agreement dated may 25 2007 among international business machines corporation guarantor benefit lenders time party 11500000000 term loan agreement favor morgan stanley senior funding inc administrative agent lenders filed exhibit 102 form 10q quarter ended june 30 2007 hereby incorporated reference accelerated share repurchase schedule standard terms conditions filed exhibit 103 form 10q quarter ended june 30 2007 hereby incorporated reference form parent guarantee agreement accelerated stock repurchase filed exhibit 104 form 10q quarter ended june 30 2007 hereby incorporated reference instruments defining rights holders 750 debentures due 2013 exhibits 4a 4l registration statement 33494751 form s3 filed may 24 1993 hereby incorporated reference instruments defining rights holders 8375 debentures due 2019 exhibits 4abc registration statement 3331732 form s3 filed october 24 1989 hereby incorporated reference instruments defining rights holders 700 debentures due 2025 700 debentures due 2045 exhibit 2 3 form 8k filed october 30 1995 hereby incorporated reference instrument defining rights holders 7125 debentures due 2096 exhibit 2 form 8ka filed december 6 1996 hereby incorporated reference instruments defining rights holders 622 debentures due 2027 exhibit 3 form 8k filed august 1 1997 hereby incorporated reference instruments defining rights holders 650 debentures due 2028 exhibit 2 form 8k filed january 8 1998 hereby incorporated reference instruments defining rights holders 5375 notes due 2009 exhibit 2 form 8k filed january 29 1999 hereby incorporated reference instruments defining rights holders 400 notes due 2011 exhibit 2 form 8k filed november 9 2006 hereby incorporated reference instruments defining rights holders 495 notes due 2011 exhibit 2 form 8k filed march 21 2007 hereby incorporated reference ibms definitive proxy statement filed securities exchange commission delivered stockholders connection annual meeting stockholders held april 29 2008 certain sections incorporated herein reference signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized international business machines corporation registrant samuel j palmisano samuel j palmisano chairman board president chief executive officer date february 26 2008 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature title date mark loughridge mark loughridge senior vice president chief financial officer february 26 2008 timothy shaughnessy timothy shaughnessy vice president controller february 26 2008 cathleen black william r brody kenneth chenault juergen dormann michael l eskew shirley ann jackson minoru makihara lucio noto james w owens joan e spero sidney taurel lorenzo h zambrano director daniel e odonnell daniel e odonnell attorneyinfact february 26 2008 report independent registered public accounting firm financial statement schedule stockholders board directors international business machines corporation audits consolidated financial statements effectiveness internal control financial reporting referred report dated february 26 2008 appearing 2007 annual report shareholders international business machines corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp pricewaterhousecoopers llp new york new york february 26 2008 schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions additions allowance doubtful accounts allowance inventory losses charged expense cost accounts respectively revenue based provisions charged revenue accounts primarily comprises currency translation adjustments s1 exhibit index management contract compensatory plan arrangement performance graphs set forth page 122 ibms 2007 annual report stockholders deemed furnished filed part item 1a risk factors item 1b unresolved staff comments item 2 properties item 3 legal proceedings item 4 submission matters vote security holders part ii item 5 market registrants common equity related stockholder matters issuer purchases equity securities item 6 selected financial data item 7 managements discussion analysis financial condition results operations item 7a quantitative qualitative disclosures market risks item 8 financial statements supplementary data item 9 changes disagreements accountants accounting financial disclosure item 9a controls procedures item 9b information part iii item 10 directors executive officers corporate governance item 11 executive compensation item 12 security ownership certain beneficial owners management related stockholder matters item 13 certain relationships related transactions director independence item 14 principal accounting fees services part iv item 15 exhibits financial statement schedules signatures report independent registered public accounting firm financial statement schedule ii international business machines corporation subsidiary companies valuation qualifying accounts reserves years ended december 31 dollars millions exhibit index