IBM Q2 2024 10-Q Filing Released

Ticker: IBM · Form: 10-Q · Filed: Jul 30, 2024 · CIK: 51143

International Business Machines Corp 10-Q Filing Summary
FieldDetail
CompanyInternational Business Machines Corp (IBM)
Form Type10-Q
Filed DateJul 30, 2024
Risk Levellow
Pages16
Reading Time19 min
Sentimentneutral

Sentiment: neutral

Topics: 10-Q, quarterly-report, financials

TL;DR

IBM's Q2 2024 10-Q is in: financials and biz details updated.

AI Summary

International Business Machines Corp. (IBM) filed its 10-Q for the period ending June 30, 2024. The filing covers financial performance and operational details for the second quarter of 2024. Key financial data and business segments are detailed within the report, providing insights into the company's ongoing strategies and market position.

Why It Matters

This filing provides investors and analysts with the latest official financial performance data for IBM, crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing (10-Q) and does not inherently present new risks.

Key Numbers

  • 2024 Q2 — Reporting Period (Financial performance for the second quarter of 2024 is detailed.)
  • 1231 — Fiscal Year End (Indicates the end of IBM's fiscal year.)

Key Players & Entities

  • INTERNATIONAL BUSINESS MACHINES CORP (company) — Filer
  • 0000051143 (company) — Central Index Key
  • 20240630 (date) — Period of Report
  • 20240730 (date) — Filing Date
  • 1 NEW ORCHARD ROAD, ARMONK, NY 10504 (address) — Business Address

FAQ

What is the primary purpose of this 10-Q filing?

This 10-Q filing provides a comprehensive overview of International Business Machines Corp.'s financial performance and condition for the quarterly period ended June 30, 2024.

When was this 10-Q filing submitted to the SEC?

The filing was submitted on July 30, 2024.

What is IBM's fiscal year end?

IBM's fiscal year ends on December 31st.

What is the business address listed for IBM?

The business address listed is 1 NEW ORCHARD ROAD, ARMONK, NY 10504.

What is the Central Index Key (CIK) for IBM?

IBM's Central Index Key is 0000051143.

Filing Stats: 4,728 words · 19 min read · ~16 pages · Grade level 15 · Accepted 2024-07-30 06:38:17

Filing Documents

- Financial Information

Part I - Financial Information :

Consolidated Financial Statements (Unaudited)

Item 1. Consolidated Financial Statements (Unaudited) : Consolidated Income Statement for the three and six months ended June 3 0 , 2024 and 2023 3 Consolidated Statement of Comprehensive Income for the three and six months ended June 3 0 , 2024 and 2023 4 Consolidated Balance Sheet at June 3 0 , 2024 and December 31, 2023 5 Consolidated Statement of Cash Flows for the six months ended June 30 , 2024 and 2023 7 Consolidated Statement of Equity for the three and six months ended June 30 , 2024 and 2023 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 10

Management's Discussion and Analysis of Results of Operations and Financial Condition

Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition 49

Controls and Procedures

Item 4. Controls and Procedures 83

- Other Information

Part II - Other Information :

Legal Proceedings

Item 1. Legal Proceedings 84

Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Repurchases of Equity Securities

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Repurchases of Equity Securities 84

Exhibits

Item 6. Exhibits 85 2 Table of Contents

- Financial Information

Part I - Financial Information

Consolidated Financial Statements

Item 1. Consolidated Financial Statements: INTERNATIONAL BUSINESS MACHINES CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATED INCOME STATEMENT (UNAUDITED) Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions except per share amounts) 2024 2023 2024 2023 Revenue: Services $ 7,405 $ 7,553 $ 14,876 $ 15,077 Sales 8,195 7,739 14,994 14,271 Financing 169 183 361 380 Total revenue 15,770 15,475 30,231 29,727 Cost: Services 5,126 5,294 10,365 10,604 Sales 1,607 1,587 2,988 2,910 Financing 86 93 186 203 Total cost 6,820 6,974 13,539 13,717 Gross profit 8,950 8,501 16,692 16,010 Expense and other (income): Selling, general and administrative 4,938 4,900 9,912 9,754 Research, development and engineering 1,840 1,687 3,637 3,342 Intellectual property and custom development income ( 241 ) ( 248 ) ( 458 ) ( 428 ) Other (income) and expense ( 233 ) ( 261 ) ( 550 ) ( 506 ) Interest expense 427 423 859 790 Total expense and other (income) 6,730 6,501 13,399 12,952 Income from continuing operations before income taxes 2,219 2,000 3,293 3,058 Provision for/(benefit from) income taxes 389 419 ( 112 ) 543 Income from continuing operations $ 1,830 $ 1,581 $ 3,405 $ 2,515 Income/(loss) from discontinued operations, net of tax 4 2 34 ( 4 ) Net income $ 1,834 $ 1,583 $ 3,439 $ 2,511 Earnings/(loss) per share of common stock: Assuming dilution: Continuing operations $ 1.96 $ 1.72 $ 3.65 $ 2.74 Discontinued operations 0.00 0.00 0.04 0.00 Total $ 1.96 $ 1.72 $ 3.68 $ 2.73 Basic: Continuing operations $ 1.99 $ 1.74 $ 3.71 $ 2.77 Discontinued operations 0.00 0.00 0.04 0.00 Total $ 1.99 $ 1.74 $ 3.74 $ 2.76 Weighted-average number of common shares outstanding: (millions) Assuming dilution 934.4 919.5 933.9 918.6 Basic 920.3 909.9 918.7 908.7 (Amounts may not add due to rounding.) (The accompanying notes are an integral part of the financial statements.) 3 Table of Contents INTERNATIONAL BUSINESS MACHINES CORPORATION AND SU

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 1. Basis of Presentation: The accompanying Consolidated Financial Statements and footnotes of the International Business Machines Corporation (IBM or the company) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The financial statements and footnotes are unaudited. In the opinion of the company's management, these statements include all adjustments, which are only of a normal recurring nature, necessary to present a fair statement of the company's results of operations, financial position and cash flows. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amount of assets, liabilities, revenue, costs, expenses and other comprehensive income/(loss) that are reported in the Consolidated Financial Statements and accompanying disclosures. These estimates are based on management's best knowledge of current events, historical experience, actions that the company may undertake in the future and on various other assumptions that are believed to be reasonable under the circumstances. As a result, actual results may be different from these estimates. For the three and six months ended June 30, 2024, the company reported a provision for income taxes of $ 389 million and a benefit from income taxes of $ 112 million, respectively, and the effective tax rate was 17.5 percent and ( 3.4 ) percent, respectively. The benefit from income taxes in the six months ended June 30, 2024, was primarily driven by the resolution of certain tax audit matters in the first quarter. For the three and six months ended June 30, 2023, the company reported a provision for income taxes of $ 419 million and $ 543 million, respectively, and the effective tax rate was 21.0 percent and 17.8 percent, respectively. Noncontrolling interest amounts, included as a reduction within other (income) and expense in the

Notes to Consolidated Financial Statements — (continued)

Notes to Consolidated Financial Statements — (continued) Effective Date and Adoption Considerations –The guidance is effective January 1, 2025 and early adoption is permitted. The company expects to adopt the guidance as of the effective date. Effect on Financial Statements or Other Significant Matters –As the guidance is a change to disclosures only, it will impact the "Taxes" note within the company's annual financial statements but will not impact the consolidated financial results. Segment Reporting Disclosures Standard/Description –Issuance date: November 2023. This guidance requires the disclosure of significant segment expenses that are regularly provided to a company's chief operating decision maker and included within each reported measure of segment profit or loss. The company must also disclose "other segment items," which is the difference between segment revenue less significant expenses for each reported measure of segment profit or loss, and a description of its composition. This guidance also requires all segment annual disclosures to be provided on an interim basis. Effective Date and Adoption Considerations –The guidance is effective for annual periods beginning in 2024, and for interim periods beginning January 1, 2025, and is required to be applied on a retrospective basis to all prior periods presented. Early adoption is permitted. The company will adopt the guidance as of the effective date. Effect on Financial Statements or Other Significant Matters –As the guidance is a change to disclosures only, it will impact the "Segments" note within the company's quarterly and annual financial statements but will not have an impact in the consolidated financial results. Standards Implemented Disclosures of Supplier Finance Program Obligations Standard/Description– Issuance date: September 2022. This guidance requires an entity to provide certain interim and annual disclosures about the use of supplier finance programs in connection with the pu

Notes to Consolidated Financial Statements — (continued)

Notes to Consolidated Financial Statements — (continued) 3. Revenue Recognition: Disaggregation of Revenue The following tables provide details of revenue by major products/service offerings and revenue by geography. Revenue by Major Products/Service Offerings Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2024 2023 (1) 2024 2023 (1) Hybrid Platform & Solutions $ 4,575 $ 4,350 $ 8,673 $ 8,200 Transaction Processing 2,164 1,943 3,964 3,685 Total Software $ 6,739 $ 6,294 $ 12,637 $ 11,885 Business Transformation 2,360 2,295 4,677 4,578 Application Operations 1,902 1,991 3,840 3,980 Technology Consulting 917 941 1,848 1,866 Total Consulting $ 5,179 $ 5,226 $ 10,365 $ 10,423 Hybrid Infrastructure 2,360 2,260 4,163 3,969 Infrastructure Support 1,285 1,358 2,558 2,747 Total Infrastructure $ 3,645 $ 3,618 $ 6,721 $ 6,716 Financing (2) 169 185 362 380 Other 38 152 146 321 Total revenue $ 15,770 $ 15,475 $ 30,231 $ 29,727 (1) Recast to reflect January 2024 segment changes. Refer to note 4, "Segments," for additional information. (2) Contains lease and loan financing arrangements which are not subject to the guidance on revenue from contracts with customers. Revenue by Geography Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2024 2023 2024 2023 Americas $ 7,979 $ 8,046 $ 15,275 $ 15,124 Europe/Middle East/Africa 4,722 4,602 9,035 8,933 Asia Pacific 3,069 2,827 5,922 5,670 Total $ 15,770 $ 15,475 $ 30,231 $ 29,727 Remaining Performance Obligations The remaining performance obligation (RPO) disclosure provides the aggregate amount of the transaction price yet to be recognized as of the end of the reporting period and an explanation as to when the company expects to recognize these amounts in revenue. It is intended to be a statement of overall work under contract that has not yet been performed and does not include contracts in which the customer is not committed, such as certain as

Notes to Consolidated Financial Statements — (continued)

Notes to Consolidated Financial Statements — (continued) At June 30, 2024, the aggregate amount of the transaction price allocated to RPO related to customer contracts that are unsatisfied or partially unsatisfied was approximately $ 56 billion. Approximately 70 percent of the amount is expected to be recognized as revenue in the subsequent two years , approximately 27 percent in the subsequent three to five years and the balance thereafter. Revenue Recognized for Performance Obligations Satisfied (or Partially Satisfied) in Prior Periods For the three and six months ended June 30, 2024, revenue recognized for performance obligations satisfied or partially satisfied in prior periods was immaterial. Reconciliation of Contract Balances The following table provides information about notes and accounts receivable–trade, contract assets and deferred income balances. (Dollars in millions) At June 30, 2024 At December 31, 2023 Notes and accounts receivable — trade (net of allowances of $ 129 in 2024 and $ 192 in 2023) $ 5,769 $ 7,214 Contract assets (1) $ 540 $ 505 Deferred income (current) $ 13,643 $ 13,451 Deferred income (noncurrent) $ 3,489 $ 3,533 (1) Included within prepaid expenses and other current assets in the Consolidated Balance Sheet. The amount of revenue recognized during the six months ended June 30, 2024 that was included within the deferred income balance at December 31, 2023 was $ 7.4 billion and was primarily related to software and services. The following table provides roll forwards of the notes and accounts receivable–trade allowance for expected credit losses for the six months ended June 30, 2024 and the year ended December 31, 2023. (Dollars in millions) January 1, 2024 Additions / (Releases) Write-offs (1) Foreign currency and other June 30, 2024 $ 192 $( 7 ) $( 61 ) $ 4 $ 129 January 1, 2023 Additions / (Releases) Write-offs (1) Foreign currency and other December 31, 2023 $ 233 $ 32 $( 79 ) $ 6 $ 192 (1) The majorit

Notes to Consolidated Financial Statements — (continued)

Notes to Consolidated Financial Statements — (continued) 4. Segments: In the first quarter of 2024, the

View Full Filing

View this 10-Q filing on SEC EDGAR

View on ReadTheFiling | About | Contact | Privacy | Terms

Data from SEC EDGAR. Not affiliated with the SEC. Not investment advice. © 2026 OpenDataHQ.