# International Business Machines Corporation and Subsidiary Companies

## Five-Year Comparative Consolidated Summary of Operations:

| 1978 | 1977 | 1976 | 1975 | 1974 |
|------|------|------|------|------|
| **For the year:**<br> Gross income from sales, rentals and services:<br> Sales | $ 8,754,794 | $ 7,090,157 | $ 5,959,475 | $ 4,545,359 | $ 4,281,772<br> Rentals and services | 12,321,295 | 11,043,027 | 10,344,858 | 9,891,182 | 8,393,520<br> Cost of sales | 21,076,089 | 18,133,184 | 16,304,333 | 14,436,641 | 12,675,292<br> Cost of rentals and services | 4,645,800 | 4,042,448 | 3,865,813 | 3,717,709 | 3,326,565<br> Selling, development and engineering, and general and administrative expenses | 8,151,129 | 7,177,080 | 6,409,315 | 5,664,897 | 4,758,558<br> Interest on debt | 55,175 | 40,350 | 44,950 | 62,607 | 69,082<br> Other income, principally interest | 411,808 | 475,243 | 494,469 | 360,527 | 340,789<br> Earnings before income taxes | 5,797,568 | 5,092,414 | 4,519,093 | 3,720,877 | 3,434,639<br> U.S. Federal and non-U.S. income taxes | 2,687,000 | 2,373,000 | 2,121,000 | 1,731,000 | 1,597,000<br> Net earnings | $ 3,110,568 | $ 2,719,414 | $ 2,398,093 | $ 1,989,877 | $ 1,837,639<br> Per share | $21.29 | $18.30 | $15.94 | $13.35 | $12.47<br> Average number of shares outstanding | 146,107,146 | 148,574,612 | 150,425,442 | 149,044,427 | 147,400,733<br> Cash dividends paid | $ 1,684,612 | $ 1,487,627 | $ 1,203,791 | $ 968,989 | $ 819,669<br> Per share | $11.52 | $10.00 | $8.00 | $6.50 | $5.56 |
| **At end of year:**<br> Number of shares outstanding | 145,810,364 | 147,470,876 | 150,694,548 | 149,844,582 | 148,259,260<br> Net investment in plant, rental machines and other property | $ 9,302,228 | $ 7,889,326 | $ 6,962,908 | $ 6,695,043 | $ 6,376,072<br> Long-term debt | $ 285,534 | $ 255,776 | $ 275,127 | $ 295,115 | $ 335,796<br> Working capital | $ 4,510,789 | $ 4,864,073 | $ 5,838,125 | $ 4,751,829 | $ 3,800,103<br> Number of stockholders | 580,572 | 581,513 | 577,156 | 586,470 | 589,214 |

**Gross Income by Segment:**

| Data Processing segment<br> Equipment<br> Sales | 27.7% | 25.4% | 23.2% | 17.7% | 19.6%<br> Rentals and services | 40.9 | 44.7 | 48.7 | 54.2 | 53.1<br> Services, program products and supplies<br> Sales | 2.5 | 2.8 | 2.8 | 3.0 | 3.3<br> Rentals and services | 9.9 | 8.5 | 7.5 | 7.2 | 6.9<br> Office Products segment<br> Sales | 8.5 | 8.0 | 7.6 | 7.7 | 7.8<br> Rentals and services | 7.6 | 7.6 | 7.1 | 7.0 | 6.2<br> All other segments<br> Sales | 2.8 | 2.9 | 3.0 | 3.1 | 3.0<br> Rentals and services | .1 | .1 | .1 | .1 | .1<br> Total | 100.0% | 100.0% | 100.0% | 100.0% | 100.0%
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This markdown file captures the detailed financial data presented in the image, including gross income from sales, rentals, and services for various years, as well as breakdowns by segment.