Microsoft Excel LibreOffice Calc

International Business Machines Corp. (IBM)

Adjustments to Financial Statements

Difficulty: Advanced

Adjustments to Current Assets

International Business Machines Corp., adjusted current assets

USD $ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Current assets 49,146  49,735  43,888  42,504  49,422 
Adjustments
Add: Allowances for doubtful notes and accounts receivable 347  333  338  418  376 
Less: Current deferred tax assets1 –  –  –  –  2,044 
After Adjustment
Adjusted current assets 49,493  50,068  44,226  42,922  47,754 

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).

1 Current deferred tax assets. See Details »

Adjustments to Total Assets

International Business Machines Corp., adjusted total assets

USD $ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Total assets 123,382  125,356  117,470  110,495  117,532 
Adjustments
Add: Operating leased assets1 5,192  6,095  6,314  5,925  5,699 
Add: Allowances for doubtful notes and accounts receivable 347  333  338  418  376 
Less: Current deferred tax assets2 –  –  –  –  2,044 
Less: Noncurrent deferred tax assets3 5,216  4,862  5,224  4,822  4,808 
After Adjustment
Adjusted total assets 123,705  126,922  118,898  112,016  116,755 

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).

1 Operating leased assets. See Details »

2 Current deferred tax assets. See Details »

3 Noncurrent deferred tax assets. See Details »

Adjustments to Current Liabilities

International Business Machines Corp., adjusted current liabilities

USD $ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Current liabilities 38,227  37,363  36,275  34,269  39,600 
Adjustments
Less: Current deferred tax liabilities1 –  –  –  –  19 
Less: Current deferred income 11,165  11,552  11,035  11,021  11,877 
Less: Product warranty liability, current portion 389  429  420  419  451 
After Adjustment
Adjusted current liabilities 26,673  25,382  24,820  22,829  27,253 

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).

1 Current deferred tax liabilities. See Details »

Adjustments to Total Liabilities

International Business Machines Corp., adjusted total liabilities

USD $ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Total liabilities 106,452  107,631  99,078  96,071  105,518 
Adjustments
Add: Operating lease obligations1 5,192  6,095  6,314  5,925  5,699 
Less: Current deferred tax liabilities2 –  –  –  –  19 
Less: Noncurrent deferred tax liabilities3 3,696  545  424  253  288 
Less: Deferred income 14,610  15,298  14,635  14,792  15,568 
Less: Product warranty liability 651  718  687  719  733 
After Adjustment
Adjusted total liabilities 92,687  97,165  89,646  86,232  94,609 

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).

1 Operating lease obligations. See Details »

2 Current deferred tax liabilities. See Details »

3 Noncurrent deferred tax liabilities. See Details »

Adjustments to Stockholders’ Equity

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

USD $ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Total IBM stockholders’ equity 16,796  17,594  18,246  14,262  11,868 
Adjustments
Less: Net deferred tax assets (liabilities)1 1,520  4,316  4,799  4,569  6,545 
Add: Allowances for doubtful notes and accounts receivable 347  333  338  418  376 
Add: Deferred income 14,610  15,298  14,635  14,792  15,568 
Add: Product warranty liability 651  718  687  719  733 
Add: Noncontrolling interests 134  131  146  162  146 
After Adjustment
Adjusted total IBM stockholders’ equity 31,018  29,758  29,253  25,784  22,146 

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).

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

Adjustments to Capitalization Table

International Business Machines Corp., adjusted capitalization table

USD $ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Short-term debt 10,207  6,987  7,513  6,461  5,731 
Long-term debt 35,605  39,837  34,655  33,428  35,073 
Total reported debt 45,812  46,824  42,168  39,889  40,804 
Total IBM stockholders’ equity 16,796  17,594  18,246  14,262  11,868 
Total reported capital 62,608  64,418  60,414  54,151  52,672 
Adjustments to Debt
Add: Operating lease obligations1 5,192  6,095  6,314  5,925  5,699 
Adjusted total debt 51,004  52,919  48,482  45,814  46,503 
Adjustments to Equity
Less: Net deferred tax assets (liabilities)2 1,520  4,316  4,799  4,569  6,545 
Add: Allowances for doubtful notes and accounts receivable 347  333  338  418  376 
Add: Deferred income 14,610  15,298  14,635  14,792  15,568 
Add: Product warranty liability 651  718  687  719  733 
Add: Noncontrolling interests 134  131  146  162  146 
Adjusted total IBM stockholders’ equity 31,018  29,758  29,253  25,784  22,146 
After Adjustment
Adjusted total capital 82,022  82,677  77,735  71,598  68,649 

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).

1 Operating lease obligations. See Details »

2 Net deferred tax assets (liabilities). See Details »

Adjustments to Revenues

International Business Machines Corp., adjusted revenue

USD $ in millions

Microsoft Excel LibreOffice Calc
12 months ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Revenue 79,591  79,139  79,919  81,741  92,793 
Adjustments
Add: Increase (decrease) in deferred income (688) 663  (157) (776) (1,097)
After Adjustment
Adjusted revenue 78,903  79,802  79,762  80,965  91,696 

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).

Adjustments to Reported Income

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

USD $ in millions

Microsoft Excel LibreOffice Calc
12 months ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Net income attributable to IBM 8,728  5,753  11,872  13,190  12,022 
Adjustments
Add: Deferred income tax expense (benefit)1 699  (692) (969) 673  (265)
Add: Increase (decrease) in allowances for doubtful notes and accounts receivable 14  (5) (80) 42  49 
Add: Increase (decrease) in deferred income (688) 663  (157) (776) (1,097)
Add: Increase (decrease) in product warranty liability (67) 31  (32) (14) (222)
Less: Income (loss) from discontinued operations, net of tax 5  (5) (9) (174) (3,729)
Add: Other comprehensive income (loss) (476) 2,806  209  (1,731) (6,274)
Add: Comprehensive income (loss), net of tax, attributable to noncontrolling interest 17  17  16  8  6 
After Adjustment
Adjusted net income attributable to IBM 8,222  8,578  10,868  11,566  7,948 

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).

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