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International Business Machines Corp (IBM) SEC Filing 10-K Annual Report for the fiscal year ending Friday, December 31, 2021

International Business Machines Corp

CIK: 51143 Ticker: IBM

Exhibit 99.1

IBM RELEASES FOURTH QUARTER RESULTS

Software and Consulting Growth Driven by Hybrid Cloud Adoption; Strong Profit Performance

ARMONK, N.Y., January 24, 2022 . . . IBM (NYSE: IBM) today announced fourth-quarter 2021 earnings results.

We increased revenue in the fourth quarter with hybrid cloud adoption driving growth in software and consulting," said Arvind Krishna, IBM chairman and chief executive officer. "Our fourth-quarter results give us confidence in our ability to deliver our objectives of sustained mid-single digit revenue growth and strong free cash flow in 2022.

On November 3, 2021, IBM completed the separation of Kyndryl. Unless otherwise specified, fourth-quarter and full-year results are presented on a continuing operations basis.

Fourth-Quarter Highlights

Revenue
Revenue of $16.7 billion, up 6.5 percent, up 8.6 percent at constant currency (including about 3.5 points from incremental external sales to Kyndryl)
Software revenue up 8 percent, up 10 percent at constant currency (including about 5 points from incremental external sales to Kyndryl)
Consulting revenue up 13 percent, up 16 percent at constant currency
Infrastructure revenue flat, up 2 percent at constant currency (including about 5 points from incremental external sales to Kyndryl)
Hybrid cloud revenue:

-- Fourth Quarter: $6.2 billion, up 16 percent, up 18 percent at constant currency

-- Full Year: $20.2 billion, up 20 percent, up 19 percent at constant currency

Pre-tax Income:
GAAP: $2.9 billion, up 183 percent, including 167 points from the impact of fourth-quarter 2020 charge for structural actions
Operating (Non-GAAP): $3.5 billion, up 102 percent, including 92 points from the impact of fourth-quarter 2020 charge for structural actions

FOURTH QUARTER 2021 INCOME STATEMENT SUMMARY

    

    

 

    

Pre-tax

    

    

    

Gross

 

Pre-tax

Income

Net

Diluted

Revenue

Profit

 

Income**

Margin**

Income**

EPS**

GAAP from Continuing Operations

$

16.7B

$

9.5B

$

2.9B

 

17.2

%  

$

2.5B

$

2.72

Year/Year

 

6.5

%*

 

2.8

%  

 

183

%  

10.7

Pts

 

107

%  

 

106

%  

Operating
(Non-GAAP)

$

$

9.7B

$

3.5B

 

21.2

%  

$

3.0B

$

3.35

Year/Year

 

2.8

%  

 

102

%  

10.0

Pts

 

80

%  

 

78

%  

* 8.6% at constant currency

** Year-to-year results include impact of $1.5 billion pre-tax charge for structural actions in fourth quarter of 2020

“In 2021, we continued to invest for the future by increasing R&D spending, expanding our ecosystem and acquiring 15 companies to strengthen our hybrid cloud and AI capabilities," said James Kavanaugh, IBM senior vice president and chief financial officer. "With the separation of Kyndryl we now have taken the next step in the evolution of our strategy, creating value through focus and strengthening our financial profile.”


The following information was filed by International Business Machines Corp (IBM) on Monday, January 24, 2022 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside this 10-K Annual Report

Document And Entity Information
Consolidated Balance Sheet
Consolidated Balance Sheet (Parenthetical)
Consolidated Income Statement
Consolidated Statement Of Cash Flows
Consolidated Statement Of Cash Flows (Parenthetical)
Consolidated Statement Of Comprehensive Income
Consolidated Statement Of Equity
Consolidated Statement Of Equity (Parenthetical)
Accounting Changes
Accounting Changes - Credit Losses (Details)
Accounting Changes - Leases (Details)
Accounting Changes - Revenue Recognition (Details)
Acquisitions &Amp; Divestitures
Acquisitions &Amp; Divestitures (Tables)
Acquisitions &Amp; Divestitures - (Details)
Acquisitions &Amp; Divestitures - 2019 Acquisitions (Details)
Acquisitions &Amp; Divestitures - 2020 Acquisitions (Details)
Acquisitions &Amp; Divestitures - 2020 Purchase Price Allocation (Details)
Acquisitions &Amp; Divestitures - Divestitures (Details)
Acquisitions &Amp; Divestitures - Goodwill And Restricted Cash (Details)
Acquisitions &Amp; Divestitures - Pro Forma Information (Details)
Acquisitions &Amp; Divestitures - Purchase Price Allocation (Details)
Acquisitions &Amp; Divestitures - Purchase Price Allocation 2019 (Details)
Borrowings
Borrowings (Tables)
Borrowings - Interest On Debt (Details)
Borrowings - Lines Of Credit (Details)
Borrowings - Long-Term Debt, Components (Details)
Borrowings - Long-Term Debt, Covenants (Details)
Borrowings - Long-Term Debt, Debt Issued (Details)
Borrowings - Post-Swap Borrowing (Details)
Borrowings - Pre-Swap Obligations (Details)
Borrowings - Short-Term Debt (Details)
Commitments &Amp; Contingencies
Commitments &Amp; Contingencies (Tables)
Commitments &Amp; Contingencies - Contingencies (Details)
Commitments &Amp; Contingencies - Extended Warranty Liability (Details)
Commitments &Amp; Contingencies - Extensions Of Credit (Details)
Commitments &Amp; Contingencies - Standard Warranty Liability (Details)
Derivative Financial Instruments
Derivative Financial Instruments (Tables)
Derivative Financial Instruments - Cumulative Basis Adjustments For Fair Value Hedges (Details)
Derivative Financial Instruments - Effect Of Hedge Activity On Income And Expense (Details)
Derivative Financial Instruments - Gains And Losses (Details)
Derivative Financial Instruments - Hedging Programs (Details)
Derivative Financial Instruments - Offsetting (Details)
Earnings Per Share
Earnings Per Share (Tables)
Earnings Per Share - Antidilutive Stock Options (Details)
Earnings Per Share - Computation (Details)
Equity Activity
Equity Activity (Tables)
Equity Activity - Aoci Rollforward (Details)
Equity Activity - Reclassifications And Taxes (Details)
Equity Activity - Stock Repurchases And Other Transactions (Details)
Financial Assets &Amp; Liabilities
Financial Assets &Amp; Liabilities (Tables)
Financial Assets &Amp; Liabilities - Fair Value Measurements (Details)
Financial Assets &Amp; Liabilities - Not Measured At Fair Value (Details)
Financing Receivables
Financing Receivables (Tables)
Financing Receivables - By Portfolio Segment (Details)
Financing Receivables - Components Of Financing Receivables (Details)
Financing Receivables - Credit Quality Year Of Origination (Details)
Financing Receivables - Past Due (Details)
Financing Receivables - Payment Terms (Details)
Financing Receivables - Transfer Of Commercial Financing Assets (Details)
Intangible Assets Including Goodwill
Intangible Assets Including Goodwill (Tables)
Intangible Assets Including Goodwill - Future Amortization (Details)
Intangible Assets Including Goodwill - Goodwill By Segment (Details)
Intangible Assets Including Goodwill - Intangible Assets Activity (Details)
Intangible Assets Including Goodwill - Intangible Assets By Class (Details)
Inventory
Inventory (Details)
Inventory (Tables)
Investments &Amp; Sundry Assets
Investments &Amp; Sundry Assets (Details)
Investments &Amp; Sundry Assets (Tables)
Leases
Leases (Tables)
Leases - Cash Flow From Lease Transactions (Details)
Leases - Components Of Lease Costs (Details)
Leases - Lease Amounts Included In Consolidated Income Statement (Details)
Leases - Maturity Analysis Of Lease Payments Due On Sales-Type And Direct Financing Leases (Details)
Leases - Maturity Analysis Of Undiscounted Cash Out Flows (Details)
Leases - Maturity Analysis Of Undiscounted Lease Payments On Operating Leases (Details)
Leases - Rou Assets And Lease Liabilities (Details)
Leases - Weighted-Average Lease Terms And Discount Rates (Details)
Other Liabilities
Other Liabilities (Tables)
Other Liabilities - Components (Details)
Other Liabilities - Workforce Reduction And Environmental Liabilities (Details)
Property, Plant &Amp; Equipment
Property, Plant &Amp; Equipment (Details)
Property, Plant &Amp; Equipment (Tables)
Research, Development &Amp; Engineering
Research, Development &Amp; Engineering (Details)
Retirement-Related Benefits
Retirement-Related Benefits (Tables)
Retirement-Related Benefits - Abo And Apbo In Excess Of Plan Assets (Details)
Retirement-Related Benefits - All Retirement Plans Cost (Details)
Retirement-Related Benefits - Assumptions (Details)
Retirement-Related Benefits - Changes In Benefit Obligation And Plan Assets (Details)
Retirement-Related Benefits - Contributions (Details)
Retirement-Related Benefits - Contributions And Direct Benefit Payments (Details)
Retirement-Related Benefits - Defined Benefit Plans (Details)
Retirement-Related Benefits - Defined Contribution Plans (Details)
Retirement-Related Benefits - Expected Benefit Payments (Details)
Retirement-Related Benefits - Investment Strategy (Details)
Retirement-Related Benefits - Level 3 Reconciliation (Details)
Retirement-Related Benefits - Net Funded Status (Details)
Retirement-Related Benefits - Net Periodic Cost (Details)
Retirement-Related Benefits - Oci And Aoci (Details)
Retirement-Related Benefits - Pbo, Apbo, Fv Of Plan Assets, Funded Status (Details)
Retirement-Related Benefits - Plan Assets (Details)
Revenue Recognition
Revenue Recognition (Tables)
Revenue Recognition - Deferred Contract Costs (Details)
Revenue Recognition - Disaggregation Of Revenue By Geography (Details)
Revenue Recognition - Disaggregation Of Revenue By Major Products And Service Offerings (Details)
Revenue Recognition - Hybrid Cloud Revenue By Segment (Details)
Revenue Recognition - Performance Obligations Satisfied Or Partially Satisfied In Prior Periods (Details)
Revenue Recognition - Reconciliation Of Contract Balances (Details)
Revenue Recognition - Remaining Performance Obligations (Details)
Revenue Recognition - Remaining Performance Obligations, Expected Timing Of Satisfaction (Details)
Revenue Recognition - Trade Allowance For Credit Losses (Details)
Schedule Ii Valuation And Qualifying Accounts And Reserves
Schedule Ii Valuation And Qualifying Accounts And Reserves (Details)
Segments
Segments (Tables)
Segments - Asset Reconciliation (Details)
Segments - Assets And Other Items (Details)
Segments - Geographic Information (Details)
Segments - Pre-Tax Income Reconciliation (Details)
Segments - Results Of Continuing Operations (Details)
Segments - Revenue By Product Or Service (Details)
Segments - Revenue Reconciliation (Details)
Separation Of Kyndryl
Separation Of Kyndryl (Details)
Separation Of Kyndryl (Tables)
Separation Of Kyndryl - Cash Flows (Details)
Separation Of Kyndryl - Major Categories Of Income (Details)
Separation Of Kyndryl - Major Classes Of Assets And Liabilities (Details)
Separation Of Kyndryl - Net Impact To Stockholders Equity (Details)
Significant Accounting Policies
Significant Accounting Policies (Policies)
Significant Accounting Policies - Advertising And Promotional Expense (Details)
Significant Accounting Policies - Amortization (Details)
Significant Accounting Policies - Basis Of Presentation (Details)
Significant Accounting Policies - Billing And Financing Components (Details)
Significant Accounting Policies - Common Stock (Details)
Significant Accounting Policies - Depreciation (Details)
Significant Accounting Policies - Fair Value Measurement (Details)
Significant Accounting Policies - Financing Receivables (Details)
Significant Accounting Policies - Incremental Costs Of Obtaining A Contract (Details)
Significant Accounting Policies - Leases (Details)
Significant Accounting Policies - Product Warranties (Details)
Significant Accounting Policies - Revenue Recognition For Major Categories Of Revenue (Details)
Significant Accounting Policies - Software Costs (Details)
Significant Accounting Policies - Stock-Based Compensation (Details)
Significant Accounting Policies - Transfers Of Financial Assets (Details)
Stock-Based Compensation
Stock-Based Compensation (Details)
Stock-Based Compensation (Tables)
Stock-Based Compensation - Acquisitions (Details)
Stock-Based Compensation - Espp (Details)
Stock-Based Compensation - Incentive Awards (Details)
Stock-Based Compensation - Rsu And Psu Activity (Details)
Stock-Based Compensation - Rsus And Psus, Other Disclosures (Details)
Stock-Based Compensation - Stock Option Activity (Details)
Subsequent Events
Subsequent Events (Details)
Taxes
Taxes (Tables)
Taxes - Carryforwards (Details)
Taxes - Deferred Taxes (Details)
Taxes - Income Before Income Taxes (Details)
Taxes - Income Tax Assessments (Details)
Taxes - Provision By Geographic Operations (Details)
Taxes - Provision By Taxing Jurisdiction (Details)
Taxes - Tax Rate Reconciliation (Details)
Taxes - Tax Rate Reconciliation Narrative (Details)
Taxes - Undistributed Foreign Earnings (Details)
Taxes - Unrecognized Tax Benefits Additional Disclosures (Details)
Taxes - Unrecognized Tax Benefits Reconciliation (Details)
Ticker: IBM
CIK: 51143
Form Type: 10-K Annual Report
Accession Number: 0001558370-22-001584
Submitted to the SEC: Tue Feb 22 2022 4:07:29 PM EST
Accepted by the SEC: Tue Feb 22 2022
Period: Friday, December 31, 2021
Industry: Computer And Office Equipment

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