# Summary of Sources of Funds (Dollars in millions)

- **Items Not Requiring Current Use of Funds:** $6,900†
- **Net Earnings:** $6,555
- **Operations:** $13,455†
  - **Includes Translation Effects of $677**

**Expenditures for Plant and Other Property:**
- Over the past five years, the company has invested over $20 billion in land, buildings, machinery and equipment, and internally installed IBM manufactured equipment required to meet customer demand, maintain technological leadership and improve productivity. These recent additions represent 68 percent of the gross asset value of plant and other property as of December 31, 1985.
- Continuous upgrading of our facilities is essential to achieve our objectives. Large investments will continue to be required in future years.

# Summary of Uses of Funds (Dollars in millions)

- **Working Capital:** $3,101
- **Plant and Other Property:** $6,117
- **New Long-Term Debt:** $1,614
- **Loans Payable:** $459
- **Stock Plans:** $133
- **Cash Dividends:** $2,703
- **Reduction of Long-Term Debt:** $928
- **Investments and Other Assets:** $454
- **Rental Machines:** $313
- **Program Products:** $785

# Investment (Additions) in Plant and Other Property (In millions)

| Year | Annual | Cumulative for five-year period |
|------|--------|--------------------------------|
| 1981 | 2,000  | 2,000                           |
| 1982 | 4,000  | 6,000                           |
| 1983 | 6,000  | 12,000                          |
| 1984 | 10,000 | 22,000                          |
| 1985 | 22,000 | 44,000                          |

IBM 1985 Annual Report 31