# International Business Machines Corporation and Subsidiary Companies

## Consolidated Statement of Stockholders' Equity
for the year ended December 31:

| (Dollars in millions) | Capital Stock | Retained Earnings | Translation Adjustments | Treasury Stock | Total |
|-----------------------|---------------|-------------------|-------------------------|----------------|-------|
| **1983**              |               |                   |                         |                |       |
| Stockholders' Equity, January 1, 1983 | $5,008 | $16,259 | $(1,307) | $ - | $19,960 |
| Net earnings           |             | 5,485            |                        |                | 5,485 |
| Cash dividends declared |             | (2,251)          |                        |                | (2,251) |
| Capital stock issued under employee and stockholder plans (8,318,513 shares) | 741 |         |            |                | 741 |
| Treasury stock (221,508 shares) acquired and sold under employee plans |        | (4)             |                        |                | (4) |
| Tax reductions—employee plans | 51 |         |                        |                | 51 |
| Translation adjustments |        |                 | (763)                   |                | (763) |
| Stockholders' Equity, December 31, 1983 | 5,800 | 19,489 | (2,070) | $ - | 23,219 |

| **1984**              |               |                   |                         |                |       |
|-----------------------|---------------|-------------------|-------------------------|----------------|-------|
| Net earnings           |             | 6,582             |                        |                | 6,582 |
| Cash dividends declared |             | (2,507)           |                        |                | (2,507) |
| Capital stock issued under employee plans (2,351,859 shares) | 154 |         |                        |                | 154 |
| Purchases (6,711,522 shares) and sales (6,320,561 shares) of treasury stock under employee and stockholder plans—net |        | (78)             |                        |                | (125) |
| Tax reductions—employee plans | 44 |         |                        |                | 44 |
| Translation adjustments |        |                 | (878)                   |                | (878) |
| Stockholders' Equity, December 31, 1984 | 5,998 | 23,486 | (2,948) | (47) | 26,489 |

| **1985**              |               |                   |                         |                |       |
|-----------------------|---------------|-------------------|-------------------------|----------------|-------|
| Net earnings           |             | 6,555             |                        |                | 6,555 |
| Cash dividends declared |             | (2,703)           |                        |                | (2,703) |
| Capital stock issued under employee plans (2,664,869 shares) | 173 |         |                        |                | 173 |
| Purchases (6,346,223 shares) and sales (6,413,759 shares) of treasury stock under employee and stockholder plans—net |        | (104)             |                        |                | (102) |
| Other (principally tax reductions—employee plans) | 96 |         |                        |                | 96 |
| Translation adjustments |        |                 | 1,482                   |                | 1,482 |
| Stockholders' Equity, December 31, 1985 | 6,267 | 27,234 | (1,466) | (45) | 31,990 |

The notes on pages 34 through 43 are an integral part of this statement.