| | |
Per
2027 Note |
| |
Total
|
| |
Per
2031 Note |
| |
Total
|
| |
Per
2035 Note |
| |
Total
|
| |
Per
2043 Note |
| |
Total
|
| |
Per
2038 Note |
| |
Total
|
| ||||||||||||||||||||||||||||||
Price to Public(1)
|
| | | | 99.772% | | | | | € | 997,720,000 | | | | | | 99.434% | | | | | € | 1,242,925,000 | | | | | | 98.940% | | | | | € | 989,400,000 | | | | | | 99.837% | | | | | € | 998,370,000 | | | | | | 99.594% | | | | | £ | 746,955,000 | | |
Underwriting Discounts and Commissions
|
| | | | 0.200% | | | | | € | 2,000,000 | | | | | | 0.325% | | | | | € | 4,062,500 | | | | | | 0.425% | | | | | € | 4,250,000 | | | | | | 0.600% | | | | | € | 6,000,000 | | | | | | 0.450% | | | | | £ | 3,375,000 | | |
Proceeds to Company
|
| | | | 99.572% | | | | | € | 995,720,000 | | | | | | 99.109% | | | | | € | 1,238,862,500 | | | | | | 98.515% | | | | | € | 985,150,000 | | | | | | 99.237% | | | | | € | 992,370,000 | | | | | | 99.144% | | | | | £ | 743,580,000 | | |
| Barclays | | |
BofA Securities
|
| |
Citigroup
|
| |
Goldman Sachs & Co. LLC
|
|
| J.P. Morgan | | |
Mizuho
|
| |
MUFG
|
| |
TD Securities
|
|
| BBVA | | |
CIBC Capital Markets
|
| |
Truist Securities
|
|
| US Bancorp | | |
Wells Fargo Securities
|
|
| Academy Securities | | |
Independence Point Securities
|
| |
Penserra Securities LLC
|
|
| | | | | S-4 | | | |
| | | | | S-5 | | | |
| | | | | S-6 | | | |
| | | | | S-9 | | | |
| | | | | S-10 | | | |
| | | | | S-19 | | | |
| | | | | S-24 | | | |
| | | | | S-27 | | | |
| | | | | S-29 | | | |
| | | | | S-29 | | |
| | | | | 1 | | | |
| | | | | 4 | | | |
| | | | | 4 | | | |
| | | | | 15 | | | |
| | | | | 20 | | | |
| | | | | 20 | | | |
| | | | | 20 | | | |
| | | | | 21 | | | |
| | | | | 22 | | | |
| | | | | 23 | | | |
| | | | | 23 | | |
| | |
Three Months Ended
December 31, |
| |
Year Ended
December 31, |
| ||||||||||||||||||
| | |
2022
|
| |
2021*
|
| |
2022**
|
| |
2021*
|
| ||||||||||||
Income Statement Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
REVENUE BY SEGMENT | | | | | | | | | | | | | | | | | | | | | | | | | |
Software
|
| | | $ | 7,288 | | | | | $ | 7,087 | | | | | $ | 25,037 | | | | | $ | 23,426 | | |
Consulting
|
| | | | 4,770 | | | | | | 4,746 | | | | | | 19,107 | | | | | | 17,844 | | |
Infrastructure
|
| | | | 4,483 | | | | | | 4,414 | | | | | | 15,288 | | | | | | 14,188 | | |
Financing
|
| | | | 172 | | | | | | 172 | | | | | | 645 | | | | | | 774 | | |
Other
|
| | | | (22) | | | | | | 275 | | | | | | 453 | | | | | | 1,119 | | |
TOTAL REVENUE
|
| | | | 16,690 | | | | | | 16,695 | | | | | | 60,530 | | | | | | 57,350 | | |
GROSS PROFIT
|
| | | | 9,632 | | | | | | 9,500 | | | | | | 32,687 | | | | | | 31,486 | | |
GROSS PROFIT MARGIN | | | | | | | | | | | | | | | | | | | | | | | | | |
Software
|
| | | | 81.2% | | | | | | 81.6% | | | | | | 79.6% | | | | | | 79.6% | | |
Consulting
|
| | | | 27.4% | | | | | | 27.0% | | | | | | 25.5% | | | | | | 28.0% | | |
Infrastructure
|
| | | | 54.9% | | | | | | 54.8% | | | | | | 52.8% | | | | | | 55.3% | | |
Financing
|
| | | | 47.1% | | | | | | 32.5% | | | | | | 38.3% | | | | | | 31.7% | | |
TOTAL GROSS PROFIT MARGIN
|
| | | | 57.7% | | | | | | 56.9% | | | | | | 54.0% | | | | | | 54.9% | | |
EXPENSE AND OTHER INCOME | | | | | | | | | | | | | | | | | | | | | | | | | |
S,G&A
|
| | | | 4,765 | | | | | | 4,903 | | | | | | 18,609 | | | | | | 18,745 | | |
R,D&E | | | | | 1,604 | | | | | | 1,625 | | | | | | 6,567 | | | | | | 6,488 | | |
Intellectual property and custom development income
|
| | | | (245) | | | | | | (181) | | | | | | (663) | | | | | | (612) | | |
Other (income) and expense
|
| | | | (118) | | | | | | (18) | | | | | | 5,803 | | | | | | 873 | | |
Interest expense
|
| | | | 313 | | | | | | 303 | | | | | | 1,216 | | | | | | 1,155 | | |
TOTAL EXPENSE AND OTHER INCOME
|
| | | | 6,320 | | | | | | 6,632 | | | | | | 31,531 | | | | | | 26,649 | | |
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES |
| | | | 3,312 | | | | | | 2,869 | | | | | | 1,156 | | | | | | 4,837 | | |
Pre-tax margin
|
| | | | 19.8% | | | | | | 17.2% | | | | | | 1.9% | | | | | | 8.4% | | |
Provision for/(Benefit from) income taxes
|
| | | | 443 | | | | | | 407 | | | | | | (626) | | | | | | 124 | | |
Effective tax rate
|
| | | | 13.4% | | | | | | 14.2% | | | | | | (54.2)% | | | | | | 2.6% | | |
INCOME FROM CONTINUING OPERATIONS
|
| | | $ | 2,869 | | | | | $ | 2,462 | | | | | $ | 1,783 | | | | | $ | 4,712 | | |
DISCONTINUED OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | | |
Income/(loss) from discontinued operations, net of taxes
|
| | | | (159) | | | | | | (129) | | | | | | (143) | | | | | | 1,030 | | |
NET INCOME
|
| | | $ | 2,711 | | | | | $ | 2,332 | | | | | $ | 1,639 | | | | | $ | 5,743 | | |
(Dollars in Millions)
|
| |
At
December 31, 2022 |
| |
At
December 31, 2021 |
| ||||||
Balance Sheet Data: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 7,886 | | | | | $ | 6,650 | | |
Total Current Assets
|
| | | $ | 29,118 | | | | | $ | 29,539 | | |
Total Assets
|
| | | $ | 127,243 | | | | | $ | 132,001 | | |
Short-term debt
|
| | | $ | 4,760 | | | | | $ | 6,787 | | |
Long-term debt
|
| | | $ | 46,189 | | | | | $ | 44,917 | | |
Total Liabilities
|
| | | $ | 105,222 | | | | | $ | 113,005 | | |
Total Equity
|
| | | $ | 22,021 | | | | | $ | 18,996 | | |
| | |
Three Months Ended
December 31, |
| |
Year Ended
December 31, |
| ||||||||||||||||||
(Dollars in Millions)
|
| |
2022
|
| |
2021
|
| |
2022
|
| |
2021
|
| ||||||||||||
Cash Flow Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Cash Provided by Operating Activities
|
| | | $ | 3,965 | | | | | $ | 2,543 | | | | | $ | 10,435 | | | | | $ | 12,796 | | |
Net Cash Provided by/(Used in) Investing Activities
|
| | | $ | (1,318) | | | | | $ | (675) | | | | | $ | (4,202) | | | | | $ | (5,975) | | |
Net Cash Provided by/(Used in) Financing Activities
|
| | | $ | (2,852) | | | | | $ | (2,692) | | | | | $ | (4,958) | | | | | $ | (13,354) | | |
Underwriter
|
| |
Principal Amount
of 2027 Notes |
| |
Principal Amount
of 2031 Notes |
| |
Principal Amount
of 2035 Notes |
| |
Principal Amount
of 2043 Notes |
| |
Principal
Amount of Sterling Notes |
| |||||||||||||||
Barclays Bank PLC
|
| | | € | 112,500,000 | | | | | € | 140,625,000 | | | | | € | 112,500,000 | | | | | € | 112,500,000 | | | | | £ | 84,375,000 | | |
Citigroup Global Markets Limited
|
| | | | 112,500,000 | | | | | | 140,625,000 | | | | | | 112,500,000 | | | | | | 112,500,000 | | | | | | 84,375,000 | | |
Goldman Sachs & Co. LLC
|
| | | | 112,500,000 | | | | | | 140,625,000 | | | | | | 112,500,000 | | | | | | 112,500,000 | | | | | | 84,375,000 | | |
J.P. Morgan Securities plc
|
| | | | 112,500,000 | | | | | | 140,625,000 | | | | | | 112,500,000 | | | | | | 112,500,000 | | | | | | 84,375,000 | | |
Merrill Lynch International
|
| | | | 112,500,000 | | | | | | 140,625,000 | | | | | | 112,500,000 | | | | | | 112,500,000 | | | | | | 84,375,000 | | |
Mizuho International plc
|
| | | | 112,500,000 | | | | | | 140,625,000 | | | | | | 112,500,000 | | | | | | 112,500,000 | | | | | | 84,375,000 | | |
MUFG Securities EMEA plc
|
| | | | 112,500,000 | | | | | | 140,625,000 | | | | | | 112,500,000 | | | | | | 112,500,000 | | | | | | 84,375,000 | | |
The Toronto-Dominion Bank
|
| | | | 112,500,000 | | | | | | 140,625,000 | | | | | | 112,500,000 | | | | | | 112,500,000 | | | | | | 84,375,000 | | |
Banco Bilbao Vizcaya Argentaria,
S.A. |
| | | | 18,000,000 | | | | | | 22,500,000 | | | | | | 18,000,000 | | | | | | 18,000,000 | | | | | | 13,500,000 | | |
Canadian Imperial Bank of Commerce, London Branch
|
| | | | 18,000,000 | | | | | | 22,500,000 | | | | | | 18,000,000 | | | | | | 18,000,000 | | | | | | 13,500,000 | | |
Truist Securities, Inc.
|
| | | | 18,000,000 | | | | | | 22,500,000 | | | | | | 18,000,000 | | | | | | 18,000,000 | | | | | | 13,500,000 | | |
U.S. Bancorp Investments, Inc.
|
| | | | 18,000,000 | | | | | | 22,500,000 | | | | | | 18,000,000 | | | | | | 18,000,000 | | | | | | 13,500,000 | | |
Wells Fargo Securities International Limited
|
| | | | 18,000,000 | | | | | | 22,500,000 | | | | | | 18,000,000 | | | | | | 18,000,000 | | | | | | 13,500,000 | | |
Academy Securities, Inc.
|
| | | | 3,334,000 | | | | | | 4,167,000 | | | | | | 3,333,000 | | | | | | 3,333,000 | | | | | | 2,500,000 | | |
Independence Point Securities LLC
|
| | | | 3,333,000 | | | | | | 4,167,000 | | | | | | 3,334,000 | | | | | | 3,333,000 | | | | | | 2,500,000 | | |
Penserra Securities LLC
|
| | | | 3,333,000 | | | | | | 4,166,000 | | | | | | 3,333,000 | | | | | | 3,334,000 | | | | | | 2,500,000 | | |
Total
|
| | | € | 1,000,000,000 | | | | | € | 1,250,000,000 | | | | | € | 1,000,000,000 | | | | | € | 1,000,000,000 | | | | | £ | 750,000,000 | | |
| | |
Paid by IBM
|
| |||
Per 2027 Note
|
| | | | 0.200% | | |
Per 2031 Note
|
| | | | 0.325% | | |
Per 2035 Note
|
| | | | 0.425% | | |
Per 2043 Note
|
| | | | 0.600% | | |
Per Sterling Note
|
| | | | 0.450% | | |
| | |
Page
|
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EX-FILING FEES
Calculation of Filing Fee Tables
424(b)(5)1
(Form Type)
International Business Machines Corporation
(Exact Name of Registrant as Specified in its Charter)
Table 1: Newly Registered and Carry Forward Securities
Security Type |
Security Class Title |
Fee Calculation or Carry Forward Rule |
Amount Registered |
Proposed Maximum Offering Price Per Unit |
Maximum Aggregate Offering Price |
Fee Rate | Amount
of Registration Fee |
Carry Forward Form Type |
Carry Forward File Number |
Carry Forward Initial Effective Date |
Filing
Fee Previously Paid in Connection with Unsold Securities to be Carried Forward | |
Newly Registered Securities | ||||||||||||
Fees to Be Paid | ||||||||||||
N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | |||||
Fees Previously Paid (1) | ||||||||||||
Debt | 3.375% Notes due 2027 | 457(r) | $1,088,900,000 (1) | 99.772% | $1,086,417,308 | .00011020 | $119,723.19 | |||||
Debt | 3.625% Notes due 2031 | 457(r) | $1,361,125,000 (1) | 99.434% | $1,353,421,032.50 | .00011020 | $149,147.00 | |||||
Debt | 3.750% Notes due 2035 | 457(r) | $1,088,900,000 (1) | 98.940% | $1,077,357,660 | .00011020 | $118,724.81 | |||||
Debt | 4.000% Notes due 2043 | 457(r) | $1,088,900,000 (1) | 99.837% | $1,087,125,093 | .00011020 | $119,801.19 | |||||
Debt | 4.875% Notes due 2038 | 457(r) | $928,312,500 (2) | 99.594% | $924,543,551.25 | .00011020 | $101,884.70 | |||||
Total Offering Amounts | $5,528,864,644.75 | $609,280.89 | ||||||||||
Total Fees Previously Paid | $1,710,091.24 (3) | |||||||||||
Total Fee Offsets | $0 | |||||||||||
Net Fee Due | $0 (3) |
1 Final Prospectus Supplement
(1) | The amount to be registered has been calculated in U.S. Dollars based upon the Euro to U.S. Dollar exchange rate on January 30, 2023 of €1 = $1.0889. |
(2) | The amount to be registered has been calculated in U.S. Dollars based upon the GBP to U.S. Dollar exchange rate on January 30, 2023 of £1 = $1.23775. |
(3) | A registration fee in the amount of $1,710,091.24 was previously paid (the IBM Shelf Registration Statement Previously Paid Fees) by International Business Machines Corporation (the Company) in connection with its filing of an automatic shelf Registration Statement on Form S-3ASR (Registration No. 333-262911) on February 22, 2022 (the IBM Shelf Registration Statement). As detailed in Exhibit 107 to the IBM Shelf Registration Statement, the IBM Shelf Registration Statement Previously Paid Fees were the result of the Company’s application to the IBM Shelf Registration Statement of $1,710,091.24 of unused registration fees previously paid in connection with the Registration Statement on Form S-3 (Registration No. 333-219724) of IBM Credit LLC. The IBM Shelf Registration Statement became effective on February 22, 2022. The registrant applied $299,716.95 of the IBM Shelf Registration Statement Previously Paid Fees to pay the registration fee owed in connection with its final prospectus supplement dated July 20, 2022 as detailed in the filing fees exhibit thereto. As such, $1,410,374.29 of the IBM Shelf Registration Statement Previously Paid Fees remain unused, of which $609,280.89 is being applied to pay the registration fee for the securities offered herein. Accordingly, no additional registration fee is owed in connection with this prospectus supplement. |