International Business Machines Corp. (IBM)

Analysis of Inventory

Difficulty: Advanced

Inventory Accounting Policy

Raw materials, work in process and finished goods are stated at the lower of average cost or net realizable value. Cash flows related to the sale of inventories are reflected in net cash provided by operating activities in the Consolidated Statement of Cash Flows.

Source: 10-K (filing date: 2019-02-26).

Inventory Disclosure

International Business Machines Corp., Statement of Financial Position, Inventory

USD $ in millions

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Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Finished goods 266  333  358  352  430 
Work in process and raw materials 1,416  1,250  1,195  1,199  1,673 
Inventories 1,682  1,583  1,553  1,551  2,103 

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-23), 10-K (filing date: 2015-02-24).

Item Description The company
Inventories Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer. International Business Machines Corp.’s inventories increased from 2016 to 2017 and from 2017 to 2018.