International Business Machines Corp. (IBM)

Statement of Financial Position, Assets

Difficulty: Beginner

The statement of financial position provides creditors, investors, and analysts with information on company’s resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company’s assets as well as an indication of cash flows that may come from receivables and inventories.

Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.

International Business Machines Corp., Consolidated Statement of Financial Position, Assets

USD $ in millions

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Cash and cash equivalents	11,379	11,972	7,826	7,686	8,476
Restricted cash	225	262	–	–	–
Marketable securities	618	608	701	508	–
Notes and accounts receivable, trade, net of allowances	7,432	8,928	9,182	8,333	9,090
Short-term financing receivables, net of allowances	22,388	21,721	19,006	19,020	19,835
Other accounts receivable, net of allowances	743	981	1,057	1,201	2,906
Inventories	1,682	1,583	1,553	1,551	2,103
Deferred costs	2,300	1,820	–	–	–
Deferred taxes	–	–	–	–	2,044
Prepaid expenses and other current assets	2,379	1,860	4,563	4,205	4,968
Current assets	49,146	49,735	43,888	42,504	49,422
Property, plant and equipment, net	10,792	11,116	10,830	10,727	10,771
Long-term financing receivables, net of allowances	9,148	9,550	9,021	10,013	11,109
Prepaid pension assets	4,666	4,643	3,034	1,734	2,160
Deferred costs	2,676	2,136	–	–	–
Deferred taxes	5,216	4,862	5,224	4,822	4,808
Goodwill	36,265	36,788	36,199	32,021	30,556
Intangible assets, net	3,087	3,742	4,688	3,487	3,104
Derivatives, noncurrent	347	757	594	702	681
Alliance investments, equity method	192	90	85	82	98
Alliance investments, non-equity method	34	32	19	393	496
Long-term deposits	268	271	267	256	300
Other receivables	359	455	416	516	509
Employee benefit-related	263	316	272	273	356
Prepaid income taxes	626	590	477	496	518
Other assets	297	273	2,456	2,469	2,644
Investments and sundry assets	2,386	2,784	4,586	5,187	5,602
Noncurrent assets	74,236	75,621	73,582	67,991	68,110
Total assets	123,382	125,356	117,470	110,495	117,532

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).

Assets, Selected Items

Item	Description	The company
Current assets	Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold, or consumed within one year (or the normal operating cycle, if longer). Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.	International Business Machines Corp.’s current assets increased from 2016 to 2017 but then slightly declined from 2017 to 2018.
Property, plant and equipment, net	Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	International Business Machines Corp.’s property, plant and equipment, net increased from 2016 to 2017 but then declined significantly from 2017 to 2018.
Noncurrent assets	Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold or consumed after one year or beyond the normal operating cycle, if longer.	International Business Machines Corp.’s noncurrent assets increased from 2016 to 2017 but then slightly declined from 2017 to 2018 not reaching 2016 level.
Total assets	Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.	International Business Machines Corp.’s total assets increased from 2016 to 2017 but then slightly declined from 2017 to 2018.

Current Assets, Selected Items

Item	Description	The company
Cash and cash equivalents	Amount of currency on hand as well as demand deposits with banks or financial institutions. Includes other kinds of accounts that have the general characteristics of demand deposits. Also includes short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Excludes cash and cash equivalents within disposal group and discontinued operation.	International Business Machines Corp.’s cash and cash equivalents increased from 2016 to 2017 but then slightly declined from 2017 to 2018.
Marketable securities	Amount of investment in marketable security, classified as current.	International Business Machines Corp.’s marketable securities declined from 2016 to 2017 but then slightly increased from 2017 to 2018.
Notes and accounts receivable, trade, net of allowances	The aggregate of amounts due from customers or clients, within one year of the balance sheet date (or one operating cycle, if longer), for goods or services that have been delivered or sold in the normal course of business and an amount representing an agreement for an unconditional promise by the maker to pay the entity (holder) a definite sum of money at a future date within one year of the balance sheet, reduced to their estimated net realizable fair value by an allowance established by the entity of the amount it deems uncertain of collection and net of any write-downs taken for collection uncertainty on the part of the holder, respectively.	International Business Machines Corp.’s notes and accounts receivable, trade, net of allowances declined from 2016 to 2017 and from 2017 to 2018.
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.