Stock Analysis on Net

International Business Machines Corp. (NYSE:IBM)

Adjustments to Financial Statements

Microsoft Excel

Adjustments to Current Assets

International Business Machines Corp., adjusted current assets

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Current assets 32,908 29,118 29,539 39,165 38,420
Adjustments
Add: Allowance for expected credit losses on notes and accounts receivable 301 322 242 379 332
After Adjustment
Adjusted current assets 33,209 29,440 29,781 39,544 38,752

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).


Adjustments to Total Assets

International Business Machines Corp., adjusted total assets

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Total assets 135,241 127,243 132,001 155,971 152,186
Adjustments
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1
Add: Allowance for expected credit losses on notes and accounts receivable 301 322 242 379 332
Less: Deferred tax assets2 6,656 6,256 7,370 9,241 5,182
After Adjustment
Adjusted total assets 128,886 121,309 124,873 147,109 147,336

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Operating lease right-of-use asset (before adoption of FASB Topic 842). See details »

2 Deferred tax assets. See details »


Adjustments to Current Liabilities

International Business Machines Corp., adjusted current liabilities

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Current liabilities 34,122 31,505 33,619 39,869 37,701
Adjustments
Less: Current deferred income 13,451 12,032 12,518 12,833 12,026
Less: Product warranty liability, current portion 175 216 240 287 340
After Adjustment
Adjusted current liabilities 20,496 19,257 20,861 26,749 25,335

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).


Adjustments to Total Liabilities

International Business Machines Corp., adjusted total liabilities

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Total liabilities 112,628 105,222 113,005 135,244 131,202
Adjustments
Add: Operating lease liability (before adoption of FASB Topic 842)1
Less: Deferred tax liabilities2 1,146 2,292 3,956 5,472 5,230
Less: Deferred income 16,984 15,531 16,095 17,134 15,877
Less: Product warranty liability 249 351 426 508 590
After Adjustment
Adjusted total liabilities 94,249 87,048 92,528 112,130 109,505

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Operating lease liability (before adoption of FASB Topic 842). See details »

2 Deferred tax liabilities. See details »


Adjustments to Stockholders’ Equity

International Business Machines Corp., adjusted total IBM stockholders’ equity

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Total IBM stockholders’ equity 22,533 21,944 18,901 20,597 20,841
Adjustments
Less: Net deferred tax assets (liabilities)1 5,510 3,964 3,413 3,769 (48)
Add: Allowance for expected credit losses on notes and accounts receivable 301 322 242 379 332
Add: Deferred income 16,984 15,531 16,095 17,134 15,877
Add: Product warranty liability 249 351 426 508 590
Add: Noncontrolling interests 80 77 95 130 144
After Adjustment
Adjusted total equity 34,637 34,261 32,346 34,979 37,832

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Net deferred tax assets (liabilities). See details »


Adjustments to Capitalization Table

International Business Machines Corp., adjusted capitalization table

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Short-term debt 6,426 4,760 6,787 7,183 8,797
Long-term debt, excluding current maturities 50,121 46,189 44,917 54,355 54,102
Total reported debt 56,547 50,949 51,704 61,538 62,899
Total IBM stockholders’ equity 22,533 21,944 18,901 20,597 20,841
Total reported capital 79,080 72,893 70,605 82,135 83,740
Adjustments to Debt
Add: Operating lease liability (before adoption of FASB Topic 842)1
Add: Current operating lease liabilities2 820 874 974 1,357 1,380
Add: Noncurrent operating lease liabilities3 2,568 2,190 2,462 3,574 3,879
Adjusted total debt 59,935 54,013 55,140 66,469 68,158
Adjustments to Equity
Less: Net deferred tax assets (liabilities)4 5,510 3,964 3,413 3,769 (48)
Add: Allowance for expected credit losses on notes and accounts receivable 301 322 242 379 332
Add: Deferred income 16,984 15,531 16,095 17,134 15,877
Add: Product warranty liability 249 351 426 508 590
Add: Noncontrolling interests 80 77 95 130 144
Adjusted total equity 34,637 34,261 32,346 34,979 37,832
After Adjustment
Adjusted total capital 94,572 88,274 87,486 101,448 105,990

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Operating lease liability (before adoption of FASB Topic 842). See details »

2 Current operating lease liabilities. See details »

3 Noncurrent operating lease liabilities. See details »

4 Net deferred tax assets (liabilities). See details »


Adjustments to Revenues

International Business Machines Corp., adjusted revenue

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Revenue 61,860 60,530 57,350 73,620 77,147
Adjustment
Add: Increase (decrease) in deferred income 1,453 (564) 357 1,257 1,267
After Adjustment
Adjusted revenue 63,313 59,966 57,707 74,877 78,414

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).


Adjustments to Reported Income

International Business Machines Corp., adjusted net income attributable to IBM

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Net income attributable to IBM 7,502 1,639 5,743 5,590 9,431
Adjustments
Add: Deferred income tax expense (benefit)1 (1,105) (2,877) (1,753) (3,322) (1,344)
Add: Increase (decrease) in allowance for expected credit losses on notes and accounts receivable (21) 80 (43) 47 (15)
Add: Increase (decrease) in deferred income 1,453 (564) 357 1,257 1,267
Add: Increase (decrease) in product warranty liability (102) (75) (82) (82) (61)
Less: Income (loss) from discontinued operations, net of tax (12) (143) 1,031 89 (4)
Add: Other comprehensive income (loss) (2,021) 6,495 4,839 (740) 893
Add: Comprehensive income (loss), net of tax, attributable to noncontrolling interest 16 20 19 22 25
After Adjustment
Adjusted net income 5,734 4,861 8,049 2,683 10,200

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Deferred income tax expense (benefit). See details »