UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (d)

OF THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report: March 31, 2015

(Date of earliest event reported)

 

INTERNATIONAL BUSINESS MACHINES

CORPORATION

(Exact name of registrant as specified in its charter)

 

New York

 

1-2360

 

13-0871985

(State of Incorporation)

 

(Commission File Number)

 

(IRS employer Identification No.)

 

ARMONK, NEW YORK

 

10504

(Address of principal executive offices)

 

(Zip Code)

 

914-499-1900

(Registrant’s telephone number)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

Item 8.01 (Other Events)

 

On March 31, 2015, IBM posted information on its Investor Relations website (www.ibm.com/investor/) regarding the Global Process Services integration into the company’s Global Business Services segment. This reporting change was previously discussed during IBM’s 4th quarter earnings call on January 20, 2015.  Attachment I of this Form 8-K contains the information that was posted on IBM’s Investor Relations website.

 

IBM’s website (www.ibm.com) contains a significant amount of information about IBM, including financial and other information for investors (www.ibm.com/investor/). IBM encourages investors to visit its various websites from time to time, as information is updated and new information is posted.

 

2



 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

 

 

Date: March 31, 2015

 

 

 

 

By:

/s/ Stanley J. Sutula III

 

 

Stanley J. Sutula III

 

 

Vice President and Controller

 

 

(Chief Accounting Officer)

 

3



 

Attachment I

 

IBM Services Reporting Change
Previously discussed during IBM’s fourth quarter 2014 earnings call

 

31 Mar 2015

 

IBM’s business processing outsourcing business, branded Global Process Services, which was previously managed within Global Technology Services (GTS), has been integrated into Global Business Services (GBS) creating an end-to-end business transformation capability for clients.  This change was previously discussed during IBM’s fourth quarter 2014 earnings call on January 20, 2015.  While there is no change to aggregate IBM reported results, the change impacts the revenue, gross profit, and pre-tax income for the GTS and GBS segments.  IBM provides the following information to allow investors to update historical results and 2015 models in advance of its first quarter 2015 earnings report.

 

This new alignment benefits both clients and IBM by combining industry and strategy consulting more deeply with process outsourcing, and providing more immediate access to the innovations of IBM Software and Research that GBS incorporates into its solutions and transformational programs.  The integration addresses emerging client needs for increased flexibility, innovation, a shift to a consult-to-operate model, and greater process outsourcing industry expertise across Finance and Administration, Supply Chain Management, Marketing, Human Resources and Talent, and Mortgage Origination & Servicing.

 

Starting in the first quarter of 2015, Global Process Services revenue, which previously was reported in GTS Outsourcing, will now be reported in GBS Outsourcing.  The associated gross profit and pre-tax income that was included in the GTS segment will now be reported in the GBS segment.

 

In 2014, this business delivered approximately $1.7 billion of revenue and over $400 million of pre-tax income.  Within this, the first quarter of 2014 results include one month of revenue and profit associated with the divested Customer Care BPO business.  The first and second quarter 2014 pre-tax income also includes gains associated with that divestiture.  There is no significant change to the GTS or GBS revenue growth rates excluding the divested customer care business as a result of this reporting adjustment.

 

The following table includes the reclassified 2013 and 2014 segment results for Global Technology Services and Global Business Services.

 



 

Global Technology Services

 

($M)

 

1Q13

 

2Q13

 

3Q13

 

4Q13

 

FY13

 

1Q14

 

2Q14

 

3Q14

 

4Q14

 

FY14

 

External Revenue

 

8,901

 

8,832

 

8,798

 

9,206

 

35,737

 

8,849

 

9,010

 

8,837

 

8,746

 

35,442

 

Total Revenue

 

9,149

 

9,124

 

9,059

 

9,468

 

36,800

 

9,089

 

9,257

 

9,089

 

8,941

 

36,376

 

External GP

 

3,359

 

3,420

 

3,514

 

3,665

 

13,958

 

3,432

 

3,505

 

3,449

 

3,422

 

13,808

 

Segment PTI

 

1,511

 

1,446

 

1,808

 

1,885

 

6,649

 

1,215

 

1,669

 

1,625

 

1,422

 

5,931

 

 

Global Business Services

 

($M)

 

1Q13

 

2Q13

 

3Q13

 

4Q13

 

FY13

 

1Q14

 

2Q14

 

3Q14

 

4Q14

 

FY14

 

External Revenue

 

5,188

 

5,310

 

5,254

 

5,458

 

21,210

 

4,964

 

4,938

 

4,840

 

4,771

 

19,512

 

Total Revenue

 

5,368

 

5,498

 

5,431

 

5,627

 

21,924

 

5,105

 

5,078

 

4,975

 

4,897

 

20,055

 

External GP

 

1,453

 

1,623

 

1,693

 

1,640

 

6,409

 

1,450

 

1,472

 

1,498

 

1,503

 

5,923

 

Segment PTI

 

777

 

691

 

1,035

 

1,045

 

3,548

 

759

 

1,013

 

861

 

775

 

3,408