Summary
This 2003 10-K filing for International Business Machines Corporation (IBM) for the fiscal year ended December 31, 2002, highlights the company's diversified business model, operating across Global Services, hardware segments (Systems, Personal Systems, Technology), Software, Global Financing, and Enterprise Investments. IBM's global reach is emphasized, with over half of its revenues generated outside the United States. The report details the company's significant backlog in its Global Services segment, with $53 billion in new contracts signed in 2002, contributing to a year-end backlog of $112 billion. Investors are cautioned about the intense competitive pressures, rapid technological changes, and potential volatility in IBM's stock price, which are inherent risks in the technology sector. Key operational aspects include a substantial global real estate footprint across manufacturing, development, and leased facilities. The company acknowledges its reliance on a broad supplier base, with efforts to ensure alternative sources where single or limited suppliers exist. The filing also reiterates forward-looking statements and cautionary statements to readers, emphasizing factors that could materially affect actual results, such as new product introductions, technological shifts, currency fluctuations, customer financing risks, and the successful integration of acquisitions and alliances. The disclosure also confirms the effectiveness of IBM's internal controls and procedures as of a date within 90 days of the filing.
Key Highlights
- 1IBM operates a diversified business model with significant segments including Global Services, multiple hardware groups, Software, Global Financing, and Enterprise Investments.
- 2The company generated over half of its revenues from international operations.
- 3Global Services secured $53 billion in new contracts in 2002, leading to a substantial backlog of $112 billion.
- 4IBM operates a large global real estate portfolio for manufacturing, development, and other facilities.
- 5The company faces intense competitive pressures and rapid technological change, which are identified as key risk factors.
- 6Forward-looking statements are accompanied by cautionary statements regarding potential impacts on future results.
- 7Disclosure controls and procedures were found to be effective as of a recent evaluation date.