**TELEX**

**To:**  
**From:** Tom Ciardello  
**Date:** 6-2-86  
**Re:** IBM

**LOCATION:** ARMONK, N.Y. 10504  
**OPS:** LARGEST MANUF. OF DATA PROCESSING EQUIP. & SYSTEMS IN THE WHO-HANDLING FIELD; MORE THAN 95% OF IBM'S OPS. ARE IN THE INDUSTRY SEGMENT ENCOMPASSING INFO-HANDLING SYSTEMS, EQUIP. + SERVICES TO SOLVE THE INCREASINGLY COMPLEX PROBLEMS OF BUSINESS, GOVT., SCIENCE, SPACE EXPLORATION, DEFENSE, EDUCATION, MEDICINE, + MANY OTHER AREAS OF HUMAN ACTIVITY. PRODS. INCL. INFO. PROCESSING PKGS. + SYSTEMS, MOGRAPH PRODS., TELECOMM. SYSTEMS, INFO DIST., OFFICE SYSTEMS, TYPE-WRITERS, CALCULATORS, EDUCATIONAL + TESTING MATERIALS, + RELATED SUPPLIES + SERVICES.

**SALES:** 18.5 BILLION (DOM) 21.5 BILLION (INT.)  
**PROFIT:** 70.7 BILLION  
**AUTO:** 1577 AT 334 ALL OTHER.  
**AIRCRAFT:** 11 @ FIXED WING / 1 ROTARY  
**AGGREGATE PRODUCTS LOSSES:**

| YR | # | OPEN | PD | TOTAL |
|----|---|------|----|-------|
| 1/1/76-77 | 23 | 42562 | 27005 | 69567 |
| 77-78 | 25 | 0 | 1,038,043 | 1,038,043 |
| 78-79 | 19 | 19,852 | 79,862 | 159,714 |
| 1/1/79- 5/21/79 | 6 | 0 | 1651 | 1651 |
| 5/21/79- 80 | 25 | 53166 | 60340 | 113514 |
| 80/81 | 25 | 98873 | 84041 | 183114 |
| 81/82 | 22 | 61030 | 335410 | 396440 |
| 82/83 | 22 | 6724 | 139779 | 146553 |
| 83/84 | 13 | 1,035,784 | 87390 | 1,123,174 |
| 84/85 | 1 | 15500 | 8621 | 24121 |