# International Business Machines Corporation and Subsidiary Companies

## Consolidated Statement of Financial Position at December 31:

### Assets

#### Current Assets:
- Cash: $273,799 (1978) / $251,891 (1977)
- Marketable securities, at lower of cost or market: $3,756,887 (1978) / $5,154,738 (1977)
- Notes and accounts receivable, less reserve:
  - 1978: $174,133; 1977: $161,147
  - Total: $4,134,458 (1978) / $3,104,349 (1977)
- Inventories, at lower of average cost or market: $1,561,382 (1978) / $993,613 (1977)
- Prepaid expenses: $594,385 (1978) / $568,079 (1977)
- Total Current Assets: $10,320,911 (1978) / $10,072,670 (1977)

#### Plant, Rental Machines and Other Property, at cost:
- Total: $19,175,171 (1978) / $17,070,567 (1977)
- Less – Accumulated depreciation: $9,872,943 (1978) / $9,181,241 (1977)
- Net Plant, Rental Machines and Other Property: $9,302,228 (1978) / $7,889,326 (1977)

#### Deferred Charges and Other Assets:
- Total: $1,148,235 (1978) / $1,016,449 (1977)
- Total Assets: $20,771,374 (1978) / $18,978,445 (1977)

### Liabilities and Stockholders' Equity

#### Current Liabilities:
- U.S. Federal and non-U.S. income taxes: $1,459,710 (1978) / $1,466,225 (1977)
- Accounts payable and accruals: $3,607,318 (1978) / $3,146,845 (1977)
- Loans payable: $241,484 (1978) / $172,407 (1977)
- Dividend payable: $501,610 (1978) / $423,120 (1977)
- Total Current Liabilities: $5,810,122 (1978) / $5,208,597 (1977)

#### Deferred Investment Tax Credits:
- Total: $109,882 (1978) / $87,596 (1977)

#### Reserves for Employees' Indemnities and Retirement Plans:
- Total: $1,072,226 (1978) / $808,003 (1977)

#### Long-Term Debt:
- Total: $285,534 (1978) / $255,776 (1977)

#### Stockholders' Equity:
- Capital stock, par value $5 per share:
  - Shares authorized: 162,500,000
  - Issued: 1978: 145,895,490; 1977: 147,548,714
  - Total: $3,942,164 (1978) / $3,961,470 (1977)
- Retained earnings:
  - Total: $9,575,454 (1978) / $8,677,680 (1977)
- Less: Treasury stock, at cost:
  - Shares: 1978: 85,126; 1977: 77,838
  - Total: $13,517,618 (1978) / $12,639,150 (1977)
- Less: Treasury stock, at cost:
  - Total: $24,008 (1978) / $20,677 (1977)
- Total Stockholders' Equity: $13,493,610 (1978) / $12,618,473 (1977)

Total Liabilities and Stockholders' Equity: $20,771,374 (1978) / $18,978,445 (1977)

The notes on pages 26 through 30 are an integral part of this statement.