bloomberg rept on ibm 1apr2010

Company Report

www.bloomberglaw.com © 2010 Bloomberg Finance L.P. All rights reserved.

INTERNATIONAL BUSINESS MACHINES CORPOne New Orchard RoadArmonk, NY 10504-1722United Stateswww.ibm.com1-914-499-1900Generated 04/01/2010

Table of ContentsCompany Overview ............................................. 1Historical Price, Volume, and Earnings Data .... 2Federal Litigation Analytics ............................... 3Most Recent Litigation ........................................ 8Company Management ....................................... 9Financial Results ............................................... 19Debt and Equity Offerings ................................ 24Holdings ............................................................ 26Company Hierarchy .......................................... 30Corporate Actions ............................................. 34Most Recent Filings .......................................... 39Recent Company News .................................... 41

www.bloomberglaw.com © 2010 Bloomberg Finance L.P. All rights reserved. Generated 04/01/10

Company OverviewDESCRIPTIONInternational Business Machines Corporation (IBM) provides computer solutions through the use of advanced information technology. TheCompany's solutions include technologies, systems, products, services, software, and financing. IBM offers its products through its globalsales and distribution organization, as well as through a variety of third party distributors and resellers.

QUICK-PROFILECountry of Incorporation United States

State of Incorporation New York

Fiscal Year End December

Website www.ibm.com

Employees 399,409.00

Transfer Agent Computershare Trust Company N.A.

Auditor PRICEWATERHOUSE COOPERS LLP

Primary Exchange New York

Phone 1-914-499-1900

Fax 1-914-765-7382

Current Price 128.46 USD 04/01/10 10:54:41

Market Capitalization 166,870.01 Million USD

52-Week High 134.25 USD 01/19/10

52-Week Low 95.70 USD 04/01/09

Shares Outstanding 1,299.00

Last Dividend 0.55

Cash Flow from Operations 20,773.00 Million USD

Cash and Near Cash Items 12,183.00 Million USD

1


Historical Price, Volume, and Earnings DataFor comprehensive historical prices, see the Company Overview section on Bloomberglaw.com

RECENT PRICE/VOLUME HISTORYDate Open High Low Close Volume

04/01/10 128.95 129.31 128.45 128.46 1253397

03/31/10 131.18 134.25 121.61 128.25 409427448

12/31/09 119.39 132.85 117.26 130.90 426198997

09/30/09 105.00 122.88 99.50 119.61 420346949

06/30/09 96.13 110.64 95.70 104.42 527378992

RECENT PER-SHARE EARNINGSDate EPS

12/31/09 3.59

09/30/09 2.40

06/30/09 2.32

03/31/09 1.70

12/31/08 3.28

2


Federal Litigation AnalyticsFEDERAL CASE TYPES BY YEAR (2005 - PRESENT)

Antitru s t = 4 9

Genera l Con tract = 6 6

Paten t = 7 4

Em p loym en t = 3 3

Asb es tos = 1 9

Lab or Stand ard s = 1 0

Erisa = 1 0

Cop yrigh t = 7

Jud icia l Proced ure = 6

Other Civil Righ ts = 6

All Other Typ es = 5 4

Case Type 2005 2006 2007 2008 2009 2010 Total

Patent 15 12 18 10 18 1 74

General Contract 9 19 12 15 9 2 66

Antitrust 1 26 22 0 0 0 49

Employment 8 3 5 10 7 0 33

Asbestos 0 0 17 1 0 1 19

Labor Standards 1 1 4 4 0 0 10

Erisa 2 6 1 0 1 0 10

Copyright 1 4 0 0 1 1 7

Judicial Procedure 0 2 2 0 1 1 6

Other Civil Rights 0 1 3 0 1 1 6

All Other Types 9 7 11 14 10 3 54

3


CASE TYPES BY FEDERAL DISTRICT COURT (2005 - PRESENT)

Northern Dis trict Of Georg ia = 9

Cen tra l Dis trict Of Califo rn ia = 9

Dis trict Of Massachuse t ts = 9

Eas te rn Dis trict Of Pennsylvan ia = 2 0

Eas te rn Dis trict Of Texas = 2 9

Sou thern Dis trict Of New York = 4 0

Northern Dis trict Of Califo rn ia = 6 9

Northern Dis trict Of Illino is = 8

Dis trict Of Maryland = 7

Eas te rn Dis trict Of Califo rn ia = 7

Dis trict Of New Jersey = 6

Sou thern Dis trict Of Califo rn ia = 6

Dis trict Of Colorad o = 6

Dis trict Of Delaware = 5

Mid d le Dis trict Of Florid a = 5

All Other Courts = 9 9

Court Patent GeneralContract

Antitrust Employment Asbestos LaborStandards

Erisa All OtherTypes

Total

Northern DistrictOf California

11 5 36 4 0 1 0 12 69

Southern DistrictOf New York

6 16 0 4 1 3 1 9 40

Eastern DistrictOf Texas

26 1 0 1 0 0 0 1 29

Eastern DistrictOf Pennsylvania

0 3 0 0 17 0 0 0 20

District OfMassachusetts

0 4 1 1 0 1 1 1 9

Central DistrictOf California

4 0 0 1 0 0 0 4 9

Northern DistrictOf Georgia

1 2 0 6 0 0 0 0 9

Northern DistrictOf Illinois

2 3 0 0 0 0 0 3 8

District Of Maryland 0 5 0 0 0 0 0 2 7

4


Court Patent GeneralContract

Antitrust Employment Asbestos LaborStandards

Erisa All OtherTypes

Total

Eastern DistrictOf California

2 3 0 0 0 2 0 0 7

District OfNew Jersey

0 0 1 0 0 0 1 4 6

Southern DistrictOf California

2 0 0 0 0 0 0 4 6

District Of Colorado 0 1 0 3 0 0 1 1 6

District Of Delaware 5 0 0 0 0 0 0 0 5

Middle DistrictOf Florida

0 0 0 0 0 0 2 3 5

All Other Courts 15 23 11 13 1 3 4 29 99

CASES BY FEDERAL DISTRICT COURT AND YEAR (2005- PRESENT)Court 2005 2006 2007 2008 2009 2010 Total

Northern DistrictOf California

10 19 22 6 11 1 69

Southern DistrictOf New York

8 10 4 9 7 2 40

Eastern DistrictOf Texas

5 4 10 3 7 0 29

Eastern DistrictOf Pennsylvania

0 2 17 1 0 0 20

District OfMassachusetts

0 4 2 2 1 0 9

Central DistrictOf California

0 1 3 2 3 0 9

Northern DistrictOf Georgia

1 1 4 2 1 0 9

Northern DistrictOf Illinois

2 1 2 2 1 0 8

District Of Maryland 1 0 3 2 1 0 7

Eastern DistrictOf California

0 5 2 0 0 0 7

District OfNew Jersey

0 6 0 0 0 0 6

Southern DistrictOf California

0 0 1 3 1 1 6

All Other Courts 19 28 25 22 15 6 115

5


FEDERAL CASES BY JUDGE AND YEAR (2005- PRESENT)

Jud ge Ju lie E. Carnes = 3

Hon . Je ffrey S. White = 3

Jud ge Ron Clark = 4

Hon . Ronald M. Whyte = 5

Jud ge David Fo lsom = 5

Jud ge Step hen C. Rob inson = 5

Jud ge Leonard Davis = 6

Honorab le Ed uard o C. Rob reno = 6

Hon . Susan Ills ton = 6

Jud ge T. John Ward = 7

Honorab le Jam es T. Giles

All Other Jud ges = 2 3 0

Hon . Claud ia Wilken = 2 9

Judge 2005 2006 2007 2008 2009 2010 Total

Hon. Claudia Wilken 0 9 20 0 0 0 29

HonorableJames T. Giles

0 0 11 0 0 0 11

Judge T. John Ward 2 0 1 0 4 0 7

Hon. Susan Illston 1 3 0 0 2 0 6

Honorable EduardoC. Robreno

0 0 6 0 0 0 6

JudgeLeonard Davis

1 2 2 0 1 0 6

Judge StephenC. Robinson

1 0 0 2 2 0 5

Judge David Folsom 2 0 2 0 1 0 5

Hon. RonaldM. Whyte

2 1 0 1 1 0 5

Judge Ron Clark 0 1 2 1 0 0 4

Hon. JeffreyS. White

2 1 0 0 0 0 3

6


Judge 2005 2006 2007 2008 2009 2010 Total

Judge JulieE. Carnes

0 1 1 1 0 0 3

All Other Judges 35 58 48 45 34 10 230

7


Most Recent LitigationSELECTED DOCUMENTS

Recent 25 documents from 2005 to present. For a complete listing of Litigation, see the Litigation section on Bloomberglaw.com.

Docket

J. et al v. Winton Woods City School District Board of Education, Docket No. 1:10-cv-00171 (S.D. Ohio Mar. 15, 2010), Court Docket

Moua v. International Business Machines Corporation et al, Docket No. 5:10-cv-01070 (N.D. Cal. Mar. 15, 2010), Court Docket

Batiste et al v. Dutchmen Manufacturing, Inc. et al, Docket No. 1:10-cv-00095 (S.D. Miss. Mar. 03, 2010), Court Docket

Acceleron, LLC v. Egenera, Inc. et al, Docket No. 1:10-cv-00128 (D. Del. Feb. 17, 2010), Court Docket

IBM Credit LLC v. Klingspor Corporation, Docket No. 1:10-cv-00451 (S.D.N.Y. Jan. 20, 2010), Court Docket

International Business Machines Corporation v. BGC Partners, Inc., Docket No. 1:10-cv-00128 (S.D.N.Y. Jan. 07, 2010), Court Docket

Geras v. International Business Machines Corporation, Docket No. 1:10-cv-00001 (D. Colo. Jan. 03, 2010), Court Docket

Vasudevan Software, Inc. v. International Business Machines Corporation et al, Docket No. 5:09-cv-05897 (N.D. Cal. Dec. 21, 2009), Court Docket

Actuate Corporation v. International Business Machines Corporation et al, Docket No. 3:09-cv-05892 (N.D. Cal. Dec. 16, 2009), Court Docket

CAS Severn, Inc. v. International Business Machines Corp., Docket No. 8:09-cv-03366 (D. Md. Dec. 16, 2009), Court Docket

BetaNet, LLC v. Adobe Systems, Inc et al, Docket No. 2:09-cv-00384 (E.D. Tex. Dec. 14, 2009), Court Docket

Neon Enterprise Software, LLC v. International Business Machines Corporation, Docket No. 1:09-cv-00896 (W.D. Tex. Dec. 14, 2009), CourtDocket

Ring Technology Enterprises of Texas, LLC v. A-DATA Technology (U.S.A.) Co,. Ltd. et al, Docket No. 2:09-cv-00383 (E.D. Tex. Dec. 11, 2009),Court Docket

Carberry v. Metropolitan Life Insurance Company, Docket No. 1:09-cv-02512 (D. Colo. Oct. 26, 2009), Court Docket

Kornfeld v. International Business Machines Corporation, Docket No. 1:09-cv-07998 (S.D.N.Y. Sept. 17, 2009), Court Docket

Ballard v. International Business Machines Corporation, Docket No. 3:09-cv-00374 (W.D.N.C Aug. 27, 2009), Court Docket

Klingspor Corporation v. International Business Machines Corporation et al, Docket No. 1:09-cv-00323 (W.D.N.C Aug. 19, 2009), Court Docket

Kemp v. International Business Machines Corp., Docket No. 3:09-cv-03683 (N.D. Cal. Aug. 12, 2009), Court Docket

Enhanced Security Research LLC et al v. Cisco Systems Inc. et al, Docket No. 1:09-cv-00571 (D. Del. Aug. 03, 2009), Court Docket

Marquez v. International Business Machines Corporation et al, Docket No. 3:09-cv-00280 (W.D. Tex. Aug. 03, 2009), Court Docket

Hus v. International Business Machines Corporation, Docket No. 5:09-cv-03506 (N.D. Cal. Jul. 30, 2009), Court Docket

Auburn University v. International Business Machines, Corp., Docket No. 3:09-cv-00694 (M.D. Ala. July 23, 2009), Court Docket

Mosaid Technologies Inc. v. International Business Machines Corporation, Docket No. 1:09-cv-00510 (D. Del. July 13, 2009), Court Docket

Dorph v. International Business Machines Corporation, Docket No. 2:09-cv-00588 (S.D. Ohio Jul. 09, 2009), Court Docket

Smith v. International Business Machines Corp. et al, Docket No. 4:09-cv-02132 (S.D. Tex. Jul. 06, 2009), Court Docket

8


Company ManagementEXECUTIVES

Name Age Title

Samuel J Palmisano "Sam" 58 Chairman/President/CEO

Mark Loughridge N/A Senior VP/CFO

Timothy S Shaughnessy N/A Senior VP:Services Delivery

Steven A Mills 58 Senior VP:Software Group

John E Kelly III N/A Senior VP:Research & Intel

Virginia M Rometty "Ginni" 51 Senior VP:Global Sales

Michael E Daniels "Mike" N/A Senior VP:Global Technology

Andrew Bonzani N/A VP/Secy/Asst Gen Counsel

BOARD OF DIRECTORSName Age Title Organization

Lead Director Exxon Mobil Corp

Board Member Exxonmobil Chemical SA

Chairman Intl Business Machines CorpSamuel J Palmisano "Sam" 58

Chairman/President/CEO Intl Business Machines Corp

Board Member Citigroup Inc

Board Member Intl Business Machines Corp

Chairman Alcoa Inc

Managing Director Warburg Pincus LLC

Alain J P Belda 66

Chairman Alcoa Inc


Board Member Alcoa Inc

Chairman Caterpillar Inc

Board Member Federal Reserve System

Board Member FM Global

Board Member Black & Veatch Corp



James W Owens "Jim" 64

Chairman/CEO Caterpillar Inc

Board Member Bloomberg Family Foundation

Board Member Procter & Gamble Co

Chairman American Express Travel Relate

Chairman American Express Co


Chairman/CEO American Express Travel Relate

Kenneth I Chenault "Ken" 58

Chairman/CEO American Express Co

9


Name Age Title Organization


Lead Director Procter & Gamble Co

Chairman Boeing CoW James McNerney Jr "Jim" 60

Chairman/President/CEO Boeing Co


Board Member Grupo Televisa SA

Board Member Axtel SA

Board Member Fomento Economico Mexicano

Chairman Cemex Sab DE CV

Chairman Americas Society Inc

Board Member Citigroup

Board Member Grupo Financiero Banamex SADE

Board Member Banco Natl DE Mexico SA

Founder Axtel SA

Chairman/CEO Cemex Sab DE CV

Lorenzo H Zambrano 66

Chairman Americas Society Inc

Board Member Hearst Corp


Board Member Coca-Cola Co

Board Member Hearst Communications Inc

President Hearst Magazines

Senior Vice President Hearst Corp

Cathleen P Black "Cathie" N/A

Senior Vice President Hearst Communications Inc


Board Member Mcgraw-Hill Cos Inc

Board Member Biocrossroads

Chairman Emeritus Eli Lilly & Co

Sidney Taurel 61

Founder Intl Schl Of Indiana

Board Member Novartis AG

Board Member Genvault Corp


Board Member PNC Natl Assoc

Board Member Mercantile Bankshares Corp

Board Member Aegon USA Inc

Board Member Koolsmiles Inc

Board Member Novamed

William R Brody 66

President Salk Inst For Blgical Studies

10


Name Age Title Organization


Board Member Medtronic Inc

Board Member Public Service Entp Group Inc

Board Member Marathon Oil Corp

Board Member Fedex Corp

Board Member Finra

Chairman Nyse Regulation Inc

Board Member Nyse Euronext

President Rensselaer Polytechnic Inst

Shirley Ann Jackson 63

Chairman Nyse Regulation Inc


Board Member Citibank NA

Chairman Dow Chemical Co

Board Member Citigroup Inc

Andrew N Liveris 55

Chairman/President/CEO Dow Chemical Co

Board Member ING Group NV

Board Member Intl Business Machines CorpJoan E Spero 65

Board Member IBM Corp

Board Member Eli Lilly & Co

Board Member United Parcel Service Inc

Board Member Intl Business Machines CorpMichael L Eskew "Mike" 60

Board Member 3M Co


Chairman Tokyo Stock Exchange

Vice Chairman Nippon Keidanren

Chairman Tokyo Stock Exchange

Advisor Toshiba Corp

Taizo Nishimuro 74

Co-Vice Chairman Nippon Keidanren

COMMITTEESBoard Committees Name Title

Academic Lloyd G Waterhouse "Buzz" Member

Michael L Eskew "Mike" Chairman

W James McNerney Jr "Jim" Member

James W Owens "Jim" Member

Joan E Spero Member

Audit

Lloyd G Waterhouse "Buzz" Member

Cathleen P Black "Cathie" ChairmanDirectors & Governance

Shirley Ann Jackson Member

11


Board Committees Name Title

Taizo Nishimuro Member

Lorenzo H Zambrano Member

Samuel J Palmisano "Sam" Chairman

Cathleen P Black "Cathie" Member

Michael L Eskew "Mike" MemberExecutive

Sidney Taurel Member

Sidney Taurel Chairman

Alain J P Belda Member

William R Brody Member

Executive Compensation & ManagementResources

Andrew N Liveris Member

EXECUTIVE COMPENSATIONName Company Year Salary Bonus Other

CompensationTotal

INTL BUSINESSMACHINESCORP

2009 1,800,000 USD — 22,513,795 USD 24,313,795 USD


2008 1,800,000 USD — 22,712,150 USD 24,512,150 USD


2007 1,800,000 USD — 21,999,395 USD 23,799,395 USD


2006 1,750,000 USD — 22,713,788 USD 24,463,788 USD


2005 1,680,000 USD 5,175,000 USD 103,032 USD 6,958,032 USD


2004 1,660,000 USD 5,175,000 USD 104,400 USD 6,939,400 USD


2003 1,550,000 USD 5,400,000 USD 11,037 USD 6,961,037 USD


2002 1,433,332 USD 4,500,000 USD — 5,933,332 USD


2001 1,100,000 USD 3,000,000 USD — 4,100,000 USD

Samuel JPalmisano"Sam"


2000 798,000 USD 1,250,000 USD — 2,048,000 USD

12


Name Company Year Salary Bonus OtherCompensation

Total


1999 575,000 USD 775,000 USD — 1,350,000 USD


1998 481,000 USD 900,000 USD — 1,381,000 USD


1997 399,000 USD 605,000 USD — 1,004,000 USD


2009 720,000 USD — 5,741,973 USD 6,461,973 USD


2008 707,500 USD 250,000 USD 7,159,941 USD 8,117,441 USD


2007 685,834 USD 220,000 USD 6,603,463 USD 7,509,297 USD


2006 659,167 USD 200,000 USD 4,629,622 USD 5,488,789 USD


2005 617,500 USD 1,025,000 USD 4,926 USD 1,647,426 USD


2004 575,000 USD 955,000 USD 1,210 USD 1,531,210 USD

Mark Loughridge


2003 425,000 USD 850,000 USD — 1,275,000 USD


2009 695,000 USD — 5,062,942 USD 5,757,942 USD


2008 684,584 USD 250,000 USD 5,261,045 USD 6,195,629 USD


2007 657,501 USD 220,000 USD 5,609,710 USD 6,487,211 USD


2006 621,251 USD 200,000 USD 4,866,932 USD 5,688,183 USD

Steven A Mills


2002 450,000 USD 450,000 USD — 900,000 USD

13


Name Company Year Salary Bonus OtherCompensation

Total


2001 433,000 USD 650,000 USD — 1,083,000 USD


2000 340,000 USD 369,000 USD — 709,000 USD


2009 630,000 USD — 4,549,731 USD 5,179,731 USD

Virginia MRometty "Ginni" INTL BUSINESS

MACHINESCORP

2008 617,500 USD 250,000 USD 4,793,147 USD 5,660,647 USD


2009 665,000 USD — 4,795,525 USD 5,460,525 USD


2008 652,500 USD 250,000 USD 5,085,090 USD 5,987,590 USDMichael EDaniels "Mike"


2007 620,417 USD 220,000 USD 8,930,473 USD 9,770,890 USD

CHANGESTitle Name Age Start End

Samuel J Palmisano"Sam"

58 01/01/2003

Louis V Gerstner Jr 68 03/02/2002 12/2002Chairman

Louis V Gerstner Jr 68 4/1993 03/01/2002

John M Thompson 67 09/01/2000 09/01/2002

Paul J Rizzo 82 5/1993 12/1994Vice Chairman

Paul J Rizzo 82 1/1993 5/1993


58 01/01/2003


58 3/2002 01/01/2003Chief Executive Officer

Louis V Gerstner Jr 68 4/1993 03/01/2002


58 01/01/2003


58 3/2002 01/01/2003President


58 9/2000 3/2002

General Counsel Andrew Bonzani N/A NA

14


Title Name Age Start End

Donald J Rosenberg N/A NA 11/13/2006

Lawrence R Ricciardi 69 5/1998 2/2002



Mark Loughridge N/A 05/03/2004

John R Joyce N/A 11/15/1999 05/03/2004


G Richard Thoman 65 9/1995 6/1997

Chief Financial Officer

Paul J Rizzo 82 1/1993 5/1993

Finance Director Lawrence R Ricciardi 69 6/1997 5/1998

Chief Operating OfficerSamuel J Palmisano"Sam"

58 9/2000 3/2002

Secretary Andrew Bonzani N/A NA

Controller Timothy S Shaughnessy N/A NA 05/05/2008

Andrew Bonzani N/A NA

Michael E Daniels "Mike" N/A 07/20/2005

Timothy S Shaughnessy N/A 05/05/2008

Virginia M Rometty"Ginni"

51 NA

Steven A Mills 58 NA

Mark Loughridge N/A 05/03/2004

John E Kelly III N/A NA

Rodney C Adkins "Rod" 51 5/2007 10/30/2009

Robert W Moffat Jr 53 2008 10/16/2009

David Kappos N/A NA 08/13/2009

R Frankin Kern III"Frank"

N/A 04/01/2008 1/2009

Nicholas M Donofrio 64 7/2005 9/2008

William M Zeitler N/A 1/2003 08/01/2008

Timothy S Shaughnessy N/A NA 05/05/2008

Douglas T Elix 61 05/03/2004 04/01/2008

Robert W Moffat Jr 53 2005 2008

John E Kelly III N/A 9/2004 07/17/2007

Paul M Horn N/A 1996 07/17/2007

Donald J Rosenberg N/A NA 11/13/2006

John R Joyce N/A 05/03/2004 2006


Stephen M Ward Jr N/A 01/14/2003 05/02/2005

Vice President

John E Kelly III N/A 8/2000 9/2004

15


Title Name Age Start End

Douglas T Elix 61 10/1999 05/03/2004

John R Joyce N/A 11/15/1999 05/03/2004

Mark Loughridge N/A 1998 05/03/2004

William M Zeitler N/A 9/2000 1/2003



58 1999 9/2000

John M Thompson 67 9/1993 09/01/2000


58 1998 1999

Ned C Lautenbach 66 1/1995 6/1998



58 1997 1998



G Richard Thoman 65 9/1995 6/1997

Patrick A Toole N/A 1991 12/1996

G Richard Thoman 65 1994 9/1995

Ned C Lautenbach 66 11/1992 1/1995

Lawrence R Ricciardi 69 NA

Dominique Cerutti 49 2003 2005

Stephen M Ward Jr N/A 2000 01/13/2003Executive

Steven A Mills 58 1995 7/2000

INTERLOCKSOrganization Name Title

3M Co Michael L Eskew "Mike" Board Member

Aegon USA Inc William R Brody Board Member

Alcoa Inc Alain J P Belda Chairman

Alcoa Inc James W Owens "Jim" Board Member

Alcoa Inc Alain J P Belda Chairman

American Express Co Kenneth I Chenault "Ken" Chairman

American Express Co Kenneth I Chenault "Ken" Chairman/CEO

American Express Travel Relate Kenneth I Chenault "Ken" Chairman

American Express Travel Relate Kenneth I Chenault "Ken" Chairman/CEO

Americas Society Inc Lorenzo H Zambrano Chairman

Americas Society Inc Lorenzo H Zambrano Chairman

Axtel SA Lorenzo H Zambrano Board Member

16


Organization Name Title

Axtel SA Lorenzo H Zambrano Founder

Banco Natl DE Mexico SA Lorenzo H Zambrano Board Member

Biocrossroads Sidney Taurel Board Member

Black & Veatch Corp James W Owens "Jim" Board Member

Bloomberg Family Foundation Kenneth I Chenault "Ken" Board Member

Boeing Co W James McNerney Jr "Jim" Chairman

Boeing Co W James McNerney Jr "Jim" Chairman/President/CEO

Caterpillar Inc James W Owens "Jim" Chairman



Caterpillar Inc James W Owens "Jim" Chairman/CEO

Cemex Sab DE CV Lorenzo H Zambrano Chairman

Cemex Sab DE CV Lorenzo H Zambrano Chairman/CEO

Citibank NA Andrew N Liveris Board Member

Citigroup Lorenzo H Zambrano Board Member

Citigroup Inc Alain J P Belda Board Member

Citigroup Inc Andrew N Liveris Board Member

Coca-Cola Co Cathleen P Black "Cathie" Board Member

Dow Chemical Co Andrew N Liveris Chairman

Dow Chemical Co Andrew N Liveris Chairman/President/CEO

Eli Lilly & Co Michael L Eskew "Mike" Board Member

Eli Lilly & Co Sidney Taurel Chairman Emeritus

Exxon Mobil Corp Samuel J Palmisano "Sam" Lead Director

Exxonmobil Chemical SA Samuel J Palmisano "Sam" Board Member

FM Global James W Owens "Jim" Board Member

Federal Reserve System James W Owens "Jim" Board Member

Fedex Corp Shirley Ann Jackson Board Member

Finra Shirley Ann Jackson Board Member

Fomento Economico Mexicano Lorenzo H Zambrano Board Member

Genvault Corp William R Brody Board Member

Grupo Financiero Banamex SA DE Lorenzo H Zambrano Board Member

Grupo Televisa SA Lorenzo H Zambrano Board Member

Hearst Communications Inc Cathleen P Black "Cathie" Board Member

Hearst Communications Inc Cathleen P Black "Cathie" Senior Vice President

Hearst Corp Cathleen P Black "Cathie" Board Member

Hearst Corp Cathleen P Black "Cathie" Senior Vice President

Hearst Magazines Cathleen P Black "Cathie" President

IBM Corp Joan E Spero Board Member

17


Organization Name Title

ING Group NV Joan E Spero Board Member

Intl Schl Of Indiana Sidney Taurel Founder

Koolsmiles Inc William R Brody Board Member

Marathon Oil Corp Shirley Ann Jackson Board Member

Mcgraw-Hill Cos Inc Sidney Taurel Board Member

Medtronic Inc Shirley Ann Jackson Board Member

Mercantile Bankshares Corp William R Brody Board Member

Nippon Keidanren Taizo Nishimuro Vice Chairman

Nippon Keidanren Taizo Nishimuro Co-Vice Chairman

Novamed William R Brody Board Member

Novartis AG William R Brody Board Member

Nyse Euronext Shirley Ann Jackson Board Member

Nyse Regulation Inc Shirley Ann Jackson Chairman

Nyse Regulation Inc Shirley Ann Jackson Chairman

PNC Natl Assoc William R Brody Board Member

Procter & Gamble Co W James McNerney Jr "Jim" Lead Director

Procter & Gamble Co Kenneth I Chenault "Ken" Board Member

Public Service Entp Group Inc Shirley Ann Jackson Board Member

Rensselaer Polytechnic Inst Shirley Ann Jackson President

Salk Inst For Blgical Studies William R Brody President

Tokyo Stock Exchange Taizo Nishimuro Chairman

Tokyo Stock Exchange Taizo Nishimuro Chairman

Toshiba Corp Taizo Nishimuro Advisor

United Parcel Service Inc Michael L Eskew "Mike" Board Member

Warburg Pincus LLC Alain J P Belda Managing Director

18


Financial ResultsAll financials are in millions of USD; data is for the last 5 quarters

OVERVIEWOverview Dec 2009 Q4 Sep 2009 Q3 Jun 2009 Q2 Mar 2009 Q1 Dec 2008 Q4

Income Statement

Revenue 27,230.00 23,566.00 23,251.00 21,711.00 27,006.00

Operating Income 6,125.00 4,168.00 4,033.00 2,686.00 5,576.00

Pretax Income 6,381.00 4,373.00 4,262.00 3,122.00 5,809.00

Income bef XO items 4,813.00 3,214.00 3,103.00 2,295.00 4,427.00

Net Income 4,813.00 3,214.00 3,103.00 2,295.00 4,427.00

Basic EPS Before Abnormal Items 3.65 2.44 2.34 1.71 3.31

Basic EPS 3.65 2.44 2.34 1.71 3.31

Diluted EPS Before Abnormal Items 3.59 2.40 2.32 1.70 3.28

Diluted EPS 3.59 2.40 2.32 1.70 3.28

Dividends per Share 0.55 0.55 0.55 0.50 0.50

EBITDA 7,390.00 5,426.00 5,275.00 3,915.00 6,897.00

Actual Sales Per Employee 68,175.73 n/a n/a n/a 67,776.79

Return on Common Equity 74.37 56.80 57.96 58.17 58.83

Balance Sheet

Total Current Assets 48,936.00 43,446.00 44,435.00 43,995.00 49,004.00

Total Long–Term Assets 60,086.00 60,229.00 59,220.00 57,949.00 60,520.00

Total Assets 109,022.00 103,675.00 103,655.00 101,944.00 109,524.00

Total Current Liabilities 36,002.00 32,960.00 36,430.00 37,425.00 42,435.00

Total Long–Term Liabilities 50,265.00 52,221.00 51,751.00 50,826.00 53,623.00

Total Liabilities 86,267.00 85,181.00 88,181.00 88,251.00 96,058.00

Total Shareholders' Equity 22,755.00 18,494.00 15,474.00 13,693.00 13,466.00

Shares Outstanding 1,305.34 1,313.60 1,310.88 1,321.40 1,339.10

Book Value per Share 17.34 14.00 11.73 10.29 10.06

Tangible Book Value per Share -0.05 -2.49 -4.53 -5.44 -5.70

Shr Eqty/Total Liab & Equity 20.87 17.84 14.93 13.43 12.30

Cash Flows

Net Income 4,813.00 3,214.00 3,103.00 2,295.00 4,427.00

Cash From Operating Activities 6,449.00 5,198.00 4,739.00 4,387.00 6,621.00

Cash From Investing Activities -2,495.00 -2,339.00 -1,848.00 -48.00 -879.00

Cash from Financing Activities -1,302.00 -5,007.00 -3,509.00 -4,784.00 -2,752.00

Net Changes in Cash 2,652.00 -2,148.00 -618.00 -445.00 2,990.00

Free Cash Flow 5,123.00 4,381.00 4,034.00 3,788.00 5,401.00

Free Cash Flow per Basic Share 3.89 3.32 3.04 2.82 4.03

19


Overview Dec 2009 Q4 Sep 2009 Q3 Jun 2009 Q2 Mar 2009 Q1 Dec 2008 Q4

Free Cash Flow per Diluted Share 12.92 13.11 11.85 11.18 10.64

Cashflow per Share 4.89 3.94 3.57 3.26 4.94

INCOME STATEMENTIncome Statement Dec 2009 Q4 Sep 2009 Q3 Jun 2009 Q2 Mar 2009 Q1 Dec 2008 Q4

Revenue 27,230.00 23,566.00 23,251.00 21,711.00 27,006.00

–Cost of Revenue 14,084.00 12,939.00 12,669.00 12,281.00 14,070.00

Gross Profit 13,146.00 10,627.00 10,582.00 9,430.00 12,936.00

–Selling, General & Admin Expense 7,021.00 6,459.00 6,549.00 6,744.00 7,360.00

Operating Income 6,125.00 4,168.00 4,033.00 2,686.00 5,576.00

–Interest Expense 81.00 84.00 101.00 136.00 192.00

–Foreign Exchange Losses (Gains) n/a -69.00 -82.00 -28.00 205.00

–Net Non–Operating Losses (Gains) -337.00 -220.00 -248.00 -544.00 -630.00

Pretax Income 6,381.00 4,373.00 4,262.00 3,122.00 5,809.00

–Income Tax Expense 1,568.00 1,159.00 1,159.00 827.00 1,382.00

Income Before XO Items 4,813.00 3,214.00 3,103.00 2,295.00 4,427.00

–Extraordinary Loss Net of Tax 0.00 0.00 0.00 0.00 0.00

–Minority Interests 0.00 0.00 0.00 0.00 0.00

Net Income 4,813.00 3,214.00 3,103.00 2,295.00 4,427.00

–Total Cash Preferred Dividends 0.00 0.00 0.00 0.00 0.00

–Other Adjustments 0.00 0.00 0.00 0.00 0.00

Net Inc Avail to Common Shareholders 4,813.00 3,214.00 3,103.00 2,295.00 4,427.00

Abnormal Loss 0.00 0.00 0.00 0.00 n/a

Tax Effect on Abnormal Items 0.00 0.00 0.00 0.00 n/a

Normalized Income 4,813.00 3,214.00 3,103.00 2,295.00 4,427.00

Comprehensive Income 6,503.00 3,735.00 3,709.00 2,492.00 -13,035.00

Comprehensive Income per Share 4.93 2.83 2.80 1.85 -9.73

Basic EPS Before Abnormal Items 3.65 2.44 2.34 1.71 3.31

Basic EPS Before XO Items 3.65 2.44 2.34 1.71 3.31

Basic EPS 3.65 2.44 2.34 1.71 3.31

Basic Weighted Avg Shares 1,318.40 1,319.90 1,326.10 1,344.30 1,339.10

Diluted EPS Before Abnormal Items 3.59 2.40 2.32 1.70 3.28

Diluted EPS Before XO Items 3.59 2.40 2.32 1.70 3.28

Diluted EPS 3.59 2.40 2.32 1.70 3.28

Diluted Weighted Avg Shares 1,340.70 1,338.20 1,336.90 1,349.50 1,347.90

Reference Items

EBITDA 7,390.00 5,426.00 5,275.00 3,915.00 6,897.00

Gross Margin 48.28 45.09 45.51 43.43 47.90

Operating Margin 22.49 17.69 17.35 12.37 20.65

20


Income Statement Dec 2009 Q4 Sep 2009 Q3 Jun 2009 Q2 Mar 2009 Q1 Dec 2008 Q4

Profit Margin 17.68 13.64 13.35 10.57 16.39

Actual Sales Per Employee 68,175.73 n/a n/a n/a 67,776.79

Dividends per Share 0.55 0.55 0.55 0.50 0.50

Total Cash Common Dividends 725.12 725.95 729.35 675.00 669.55

Sales Growth 0.83 -6.86 -13.31 -11.39 -6.44

Basic EPS Before XO Growth 10.27 16.75 15.84 1.79 16.14

Interest Income 42.00 8.00 19.00 25.00 58.00

Research & Development Expense 1,461.00 1,446.00 1,434.00 1,480.00 1,528.00

Depreciation Expense 967.00 953.00 936.00 917.00 996.00

BALANCE SHEETBalance Sheet Dec 2009 Q4 Sep 2009 Q3 Jun 2009 Q2 Mar 2009 Q1 Dec 2008 Q4

Assets

+Cash & Near Cash Items 12,183.00 9,532.00 11,678.00 12,294.00 12,741.00

+Short–Term Investments 1,791.00 1,980.00 848.00 1.00 166.00

+Accounts & Notes Receivable 25,650.00 22,370.00 22,677.00 22,122.00 26,383.00

+Inventories 2,494.00 2,546.00 2,691.00 2,759.00 2,701.00

+Other Current Assets 6,818.00 7,018.00 6,541.00 6,819.00 7,013.00

Total Current Assets 48,936.00 43,446.00 44,435.00 43,995.00 49,004.00

+Long–Term Investments 16,023.00 15,280.00 15,010.00 14,963.00 16,241.00

+Gross Fixed Assets 39,595.00 39,789.00 38,669.00 37,592.00 38,444.00

–Accumulated Depreciation 25,431.00 25,600.00 24,721.00 23,865.00 24,140.00

+Net Fixed Assets 14,164.00 14,189.00 13,948.00 13,727.00 14,304.00

+Other Long–Term Assets 29,899.00 30,760.00 30,262.00 29,259.00 29,975.00

Total Long–Term Assets 60,086.00 60,229.00 59,220.00 57,949.00 60,520.00

Total Assets 109,022.00 103,675.00 103,655.00 101,944.00 109,524.00

Liabilities & Shareholders' Equity

+Accounts Payable 7,436.00 6,145.00 5,869.00 5,878.00 7,014.00

+Short–Term Borrowings 4,168.00 4,885.00 8,504.00 9,870.00 11,236.00

+Other Short–Term Liabilities 24,398.00 21,930.00 22,057.00 21,677.00 24,185.00

Total Current Liabilities 36,002.00 32,960.00 36,430.00 37,425.00 42,435.00

+Long–Term Borrowings 21,932.00 20,583.00 20,868.00 21,106.00 22,689.00

+Other Long–Term Liabilities 28,333.00 31,638.00 30,883.00 29,720.00 30,934.00

Total Long–Term Liabilities 50,265.00 52,221.00 51,751.00 50,826.00 53,623.00

Total Liabilities 86,267.00 85,181.00 88,181.00 88,251.00 96,058.00

+Total Preferred Equity 0.00 0.00 0.00 0.00 0.00

+Minority Interest 118.00 98.00 94.00 92.00 0.00

+Share Capital & APIC 41,810.00 40,482.00 39,774.00 39,430.00 39,129.00

+Retained Earnings & Other Equity -19,173.00 -22,086.00 -24,394.00 -25,829.00 -25,663.00

21


Balance Sheet Dec 2009 Q4 Sep 2009 Q3 Jun 2009 Q2 Mar 2009 Q1 Dec 2008 Q4

Total Shareholders' Equity 22,755.00 18,494.00 15,474.00 13,693.00 13,466.00

Total Liabilities & Equity 109,022.00 103,675.00 103,655.00 101,944.00 109,524.00

Reference Items

Shares Outstanding 1,305.34 1,313.60 1,310.88 1,321.40 1,339.10

Number of Treasury Shares 821.68 800.11 794.24 779.69 757.89

Amount of Treasury Shares 81,243.00 78,411.00 77,679.00 76,148.00 74,171.00

Pension Obligations 15,953.00 18,427.00 18,459.00 18,276.00 19,452.00

Operating Leases 5,830.00 n/a n/a n/a 5,810.00

Capital Leases – Short Term 64.00 n/a n/a n/a 57.00

Capital Leases – Long Term 101.00 n/a n/a n/a 156.00

Capital Leases – Total 165.00 n/a n/a n/a 213.00

Options Granted During Period 0.00 n/a n/a n/a 0.00

Options Outstanding at Period End 73.21 4.99 53.46 92.35 119.31


Total Debt to Total Assets 23.94 24.57 28.34 30.39 30.97

Net Debt 12,126.00 13,956.00 16,846.00 18,681.00 21,018.00

Net Debt to Equity 53.29 75.46 108.87 136.43 156.08

Tangible Common Equity Ratio -0.08 -3.99 -7.21 -8.86 -8.64

Current Ratio 1.36 1.32 1.22 1.18 1.15

Cash Conversion Cycle 66.47 62.06 64.85 62.24 64.93

Inventory – Work in Progress 1,960.00 1,992.00 2,126.00 568.00 2,176.00

Inventory – Finished Goods 533.00 554.00 565.00 2,191.00 525.00

Other Inventory n/a n/a 0.00 0.00 0.00

Pure Retained Earnings 80,900.00 76,812.00 74,328.00 71,968.00 70,353.00

Goodwill 20,190.00 19,272.00 18,737.00 18,070.00 18,226.00

Number of Employees 399,409.00 n/a n/a n/a 398,455.00

CASH FLOWCash Flow Dec 2009 Q4 Sep 2009 Q3 Jun 2009 Q2 Mar 2009 Q1 Dec 2008 Q4

+Net Income 4,813.00 3,214.00 3,103.00 2,295.00 4,427.00

+Depreciation & Amortization 1,265.00 1,258.00 1,242.00 1,229.00 1,321.00

+Other Non–Cash Adjustments -276.00 139.00 88.00 -161.00 1,568.00

+Changes in Non–Cash Capital 647.00 587.00 306.00 1,024.00 -695.00

Cash From Operating Activities 6,449.00 5,198.00 4,739.00 4,387.00 6,621.00

+Disposal of Fixed Assets 330.00 0.00 0.00 0.00 350.00

+Capital Expenditures -1,326.00 -817.00 -705.00 -599.00 -1,220.00

+Increase in Investments 0.00 0.00 0.00 0.00 0.00

+Decrease in Investments 0.00 0.00 0.00 0.00 0.00

+Other Investing Activities -1,499.00 -1,522.00 -1,143.00 551.00 -9.00

22


Cash Flow Dec 2009 Q4 Sep 2009 Q3 Jun 2009 Q2 Mar 2009 Q1 Dec 2008 Q4

Cash From Investing Activities -2,495.00 -2,339.00 -1,848.00 -48.00 -879.00

+Dividends Paid -727.00 -726.00 -732.00 -675.00 -669.00

+Change in Short–Term Borrowings -500.00 783.00 -1,115.00 181.00 -4,502.00

+Increase in Long–Term Borrowings 4,269.00 445.00 1,056.00 913.00 5,578.00

+Decrease in Long–term Borrowings -2,735.00 -5,720.00 -1,562.00 -3,478.00 -2,651.00

+Increase in Capital Stocks 1,550.00 980.00 280.00 242.00 116.00

+Decrease in Capital Stocks -3,064.00 -929.00 -1,671.00 -1,765.00 -740.00

+Other Financing Activities -95.00 160.00 235.00 -202.00 116.00

Cash from Financing Activities -1,302.00 -5,007.00 -3,509.00 -4,784.00 -2,752.00

Net Changes in Cash 2,652.00 -2,148.00 -618.00 -445.00 2,990.00

Reference Items

EBITDA 7,390.00 5,426.00 5,275.00 3,915.00 6,897.00

Cash Paid for Taxes 1,567.00 n/a n/a n/a n/a

Cash Paid for Interest 1,240.00 n/a n/a n/a n/a

Net Cash Paid for Acquisitions 1,069.00 25.00 79.00 21.00 296.00

Free Cash Flow 5,123.00 4,381.00 4,034.00 3,788.00 5,401.00

Free Cash Flow To Firm 5,184.10 4,442.74 4,107.53 3,887.97 5,547.32

Free Cash Flow to Equity 6,487.00 -111.00 2,413.00 1,404.00 4,176.00

Free Cash Flow per Basic Share 3.89 3.32 3.04 2.82 4.03

Price to Free Cash Flow 10.02 9.05 8.73 8.57 7.80

Cash Flow to Net Income 1.34 1.62 1.53 1.91 1.50

KEY RATIOSKey Ratios Dec 2009 Q4 Sep 2009 Q3 Jun 2009 Q2 Mar 2009 Q1 Dec 2008 Q4

Operating Margin 22.49 17.69 17.35 12.37 20.65

Pretax Margin 23.43 18.56 18.33 14.38 21.51

Return on Assets 12.29 11.88 11.26 11.00 10.73

Return on Common Equity 74.37 56.80 57.96 58.17 58.83

Return on Capital 28.52 25.35 24.38 23.54 23.09

Current Ratio 1.36 1.32 1.22 1.18 1.15

Quick Ratio 1.10 1.03 0.97 0.92 0.93


Number of Employees n/a n/a n/a 399,409.00 398,455.00

Assets Per 1000 Employees n/a n/a n/a 272.96 274.87

Sales Per 1000 Employees n/a n/a n/a 68.18 67.78

Net Income Per 1000 Employees n/a n/a n/a 12.05 11.11

Price Earnings Ratio (P/E) 13.08 12.33 11.17 10.75 9.39

BEst EPS 10.90 10.68 9.96 9.76 9.87

23


Debt and Equity OfferingsMOST RECENT PUBLIC OFFERING

Date 1968-11-30

Price 328.50

Number of Shares 0.05

Amount 16.43

Type ADDL

CORPORATE BONDSUp to 20 most recent active bonds shown. For a complete list see the Capital Structures section on BloombergLaw.com.

Issuer Coupon Maturity Amt Issued Series BBGComposite

Rating

Maturity/RefundType

AnnounceDate

Currency

IBM CORP 5.6 11/30/39 1,517,000,000.00 A+ CALLABLE 11/06/09 USD

IBM CORP 2.1 05/06/13 1,250,000,000.00 A+ ATMATURITY

11/03/09 USD

IBM CORP 0.29031 11/04/11 750,000,000.00 FRN A+ ATMATURITY

11/03/09 USD

IBM CORP 6.625 01/30/14 750,000,000.00 EMTN A ATMATURITY

10/30/08 EUR

IBM CORP 8.0 10/15/38 1,000,000,000.00 A CALLABLE 10/09/08 USD



IBM CORP 0.82875 07/28/11 1,000,000,000.00 A ATMATURITY

07/23/08 USD

IBM CORP 3.625 05/27/15 150,000,000.00 EMTN A ATMATURITY

05/08/08 CHF

IBM CORP 3.25 05/27/11 350,000,000.00 A ATMATURITY

05/08/08 CHF


IBM CORP 4.95 03/22/11 500,000,000.00 A+ ATMATURITY

03/19/07 USD

IBM CORP 4.0 11/11/11 600,000,000.00 A+ ATMATURITY

11/06/06 EUR

IBM CORP 3.55 05/15/10 4,274,000.00 NOTE A+ ATMATURITY

05/09/03 USD

IBM CORP 4.2 02/15/13 652,000.00 NOTE A+ ATMATURITY

02/03/03 USD


IBM CORP 5.875 11/29/32 600,000,000.00 A+ CALLABLE 11/20/02 USD

IBM CORP 2.4 09/28/10 50,000,000,000.00 3RG A+ ATMATURITY

09/18/00 JPY

24


Issuer Coupon Maturity Amt Issued Series BBGComposite

Rating

Maturity/RefundType

AnnounceDate

Currency

IBM CORP 2.4 09/28/10 50,000,000,000.00 3BR A+ ATMATURITY

09/18/00 JPY

IBM CORP 6.5 01/15/28 700,000,000.00 A+ CALLABLE 01/06/98 USD

PREFERREDSNo Data Available

BANK LOANSUp to 20 most recent active loans shown. For a complete list, see the Capital Structures section of BloombergLaw.com

Issuer Effective Date Tranche Loan Type Maturity Currency Loan Status


05/01/09 — USD MANDATE


06/28/06 REV 06/28/11 USD SIGNED

EQUITIESEquity Class Ticker

Belgium Cert IBMC BB Equity

Common Stock IBM US Equity

Receipt IBM AR Equity

25


HoldingsFor a complete list of Company Holdings, see the Holdings section on Bloomberglaw.com.

INSIDER HOLDINGSTop 20 holders shown. For a complete list see the Holdings section on BloombergLaw.com

Holder Name Source Amount Held %Out Latest Change File Date

PALMISANO SAMUEL J Form 4 370,381.00 0.03 59,152.00 02/01/2010

ELIX DOUGLAS T Form 4 133,919.00 0.01 3,858.00 05/08/2008

MILLS STEVEN A Form 4 106,517.00 0.01 18,090.00 02/01/2010

MACDONALD JRANDALL

Form 4 84,257.00 0.01 15,212.00 02/01/2010

DANIELS MICHAEL E Form 4 79,658.00 0.01 968.00 02/02/2010

ZEITLER WILLIAM M Form 4 67,202.00 0.01 3,874.00 05/08/2008

HARRELD J BRUCE Form 4 61,687.00 0.00 0.00 07/24/2008

KELLY III JOHN E Form 4 58,598.00 0.00 6,739.00 02/11/2010

LOUGHRIDGE MARK Form 4 57,030.00 0.00 -20,321.00 02/05/2010

ROMETTY VIRGINIA M Form 4 50,379.00 0.00 5,092.00 03/07/2010

KERN III R FRANKIN Form 4 42,173.00 0.00 4,840.00 02/01/2010

IWATA JON C Form 4 39,115.00 0.00 12,442.00 02/01/2010

SANFORD LINDA S Form 4 35,174.00 0.00 0.00 02/01/2010

ARNOLD COLLEEN F Form 4 30,869.00 0.00 4,447.00 02/01/2010

NOTO LUCIO A Form 4 25,127.00 0.00 0.00 07/30/2008

MOFFAT JR ROBERT W Form 4 23,880.00 0.00 -14,138.00 08/05/2009

WEBER ROBERT C Form 4 23,401.00 0.00 14,822.00 02/01/2010

LEBLANC ROBERT J Form 4 15,563.00 0.00 7,415.00 02/01/2010

ADKINS RODNEY C Form 4 14,284.00 0.00 9,772.00 02/01/2010

SHAUGHNESSYTIMOTHY S

Form 4 13,964.00 0.00 -10,000.00 02/11/2010

INSTITUTIONAL HOLDINGSTop 20 holders shown. For a complete list, see the Holdings section on Bloomberglaw.com.

Holder Name Portfolio Name Source Position %Out Latest Change File Date

STATE STREET CORP STATE STREETCORPORA

13F 67,758,740.00 5.22 3,004,905.00 12/31/2009

VANGUARD GROUPINC

VANGUARD GROUPINC

13F 46,330,365.00 3.57 -333,460.00 12/31/2009

BLACKROCKINSTITUTIONALTRUST

BLACKROCKINSTITUTIO

13F 34,808,948.00 2.68 560,827.00 12/31/2009

NORTHERN TRUSTCORPORATION

NORTHERN TRUSTCORPO

13F 18,757,288.00 1.44 -891,155.00 12/31/2009

26


Holder Name Portfolio Name Source Position %Out Latest Change File Date

BANK OF AMERICACORPORATION

BANK OF AMERICA 13F 18,214,062.00 1.40 3,496,439.00 12/31/2009

WELLINGTONMANAGEMENT COLLP

WELLINGTONMANAGEMEN

13F 18,198,002.00 1.40 2,627,540.00 12/31/2009

BANK OF NEW YORKMELLON CORP

BANK OF NEW YORKMEL

13F 17,704,637.00 1.36 264,637.00 12/31/2009

CAPITAL WORLDINVESTORS

CAPITAL WORLDINVEST

13F 16,976,000.00 1.31 499,000.00 12/31/2009

STATE FARM MUTUALAUTO INSURANCE

STATE FARM MUTUALAU

13F 16,651,892.00 1.28 0.00 12/31/2009

T ROWE PRICEASSOCIATES

T ROWE PRICEASSOCIA

13F 14,231,469.00 1.10 3,646,629.00 12/31/2009

CAPITAL RESEARCHGLOBAL INVESTOR

CAPITAL RESEARCHGLO

13F 13,111,200.00 1.01 -1,025,800.00 12/31/2009

NEUBERGER BERMANLLC

NEUBERGERBERMAN GRO

13F 12,951,766.00 1.00 1,862,954.00 12/31/2009

AXA AXA 13F 12,861,737.00 0.99 1,431,273.00 12/31/2009

VANGUARD GROUPINCORPORATED

VANGUARD TOTALSTOCK

MF-USA

12,838,138.00 0.99 289,298.00 12/31/2009

VANGUARD GROUPINCORPORATED

VANGUARD 500INDEX F

MF-USA

12,341,796.00 0.95 -141,749.00 12/31/2009

JP MORGAN CHASE &CO

JP MORGAN CHASE &CO

13F 11,829,584.00 0.91 34,027.00 12/31/2009

TIAA CREFINVESTMENTMANAGEMENT

TIAA-CREFINVESTMENT

13F 11,421,250.00 0.88 -125,981.00 12/31/2009

INTECH INVESTMENTMANAGEMENT

INTECH INVESTMENTMA

13F 11,132,282.00 0.86 1,436,552.00 12/31/2009

BLACKROCK FUNDADVISORS

BLACKROCK FUNDADVIS

13F 10,899,159.00 0.84 193,156.00 12/31/2009

BLACKROCK GROUPLIMITED

BLACKROCK GROUPLIMI

13F 10,104,876.00 0.78 7,622,112.00 12/31/2009

HISTORICAL INSTITUTIONAL HOLDINGSHoldings for prior 5 quarters, for top 20 holders shown. For a complete list see the Holdings section on Bloomberglaw.com.

Holder Name Portfolio Name Q4/2008 Q1/2009 Q2/2009 Q3/2009 Amount Held

STATESTREET CORP

STATESTREETCORPORA

74,409,105.00 69,157,905.00 64,783,623.00 64,753,835.00 67,758,740.00

VANGUARDGROUP INC

VANGUARDGROUP INC

43,623,696.00 45,314,509.00 46,182,713.00 46,663,825.00 46,330,365.00

27



BLACKROCKINSTITUTIONALTRUST

BLACKROCKINSTITUTIO

0.00 0.00 0.00 0.00 34,808,948.00

NORTHERNTRUSTCORPORATION

NORTHERNTRUSTCORPO

17,587,881.00 18,649,165.00 19,657,787.00 19,648,443.00 18,757,288.00

BANK OFAMERICACORPORATION

BANK OFAMERICA

16,185,821.00 15,078,564.00 14,470,982.00 14,717,623.00 18,214,062.00

WELLINGTONMANAGEMENTCO LLP

WELLINGTONMANAGEMEN

19,039,651.00 17,765,868.00 16,087,220.00 15,570,462.00 18,198,002.00

BANK OF NEWYORK MELLONCORP

BANK OF NEWYORK MEL

18,124,741.00 19,465,969.00 18,038,131.00 17,440,000.00 17,704,637.00

CAPITALWORLDINVESTORS

CAPITALWORLDINVEST

33,166,000.00 19,829,000.00 16,778,000.00 16,477,000.00 16,976,000.00

STATE FARMMUTUAL AUTOINSURANCE

STATE FARMMUTUAL AU

16,651,892.00 16,651,892.00 16,651,892.00 16,651,892.00 16,651,892.00

T ROWEPRICEASSOCIATES

T ROWEPRICEASSOCIA

5,728,768.00 7,128,559.00 7,275,199.00 10,584,840.00 14,231,469.00

CAPITALRESEARCHGLOBALINVESTOR

CAPITALRESEARCHGLO

15,285,000.00 14,778,000.00 14,699,500.00 14,137,000.00 13,111,200.00

NEUBERGERBERMAN LLC

NEUBERGERBERMAN GRO

12,241,993.00 10,807,348.00 10,767,550.00 11,088,812.00 12,951,766.00

AXA AXA 15,308,111.00 13,462,867.00 11,623,026.00 11,430,464.00 12,861,737.00

VANGUARDGROUPINCORPORATED

VANGUARDTOTAL STOCK

11,458,447.00 12,086,549.00 12,417,285.00 12,548,840.00 12,838,138.00

VANGUARDGROUPINCORPORATED

VANGUARD500 INDEX F

12,711,238.00 12,757,538.00 12,672,845.00 12,483,545.00 12,341,796.00

JP MORGANCHASE & CO

JP MORGANCHASE & CO

15,248,927.00 14,062,898.00 11,749,286.00 11,795,557.00 11,829,584.00

TIAA CREFINVESTMENTMANAGEMENT

TIAA-CREFINVESTMENT

12,009,552.00 12,149,655.00 11,746,866.00 11,547,231.00 11,421,250.00

INTECHINVESTMENTMANAGEMENT

INTECHINVESTMENTMA

12,613,168.00 10,711,981.00 10,221,546.00 9,695,730.00 11,132,282.00

28



BLACKROCKFUNDADVISORS

BLACKROCKFUND ADVIS

0.00 0.00 0.00 0.00 10,899,159.00

BLACKROCKGROUPLIMITED

BLACKROCKGROUP LIMI

1,429,142.00 1,723,706.00 2,306,899.00 2,482,764.00 10,104,876.00

COMPANY HOLDINGSNo Data Available

29


Company HierarchySUBSIDIARIES

AptSoft Corp

Arsenal Digital Solutions

Cia IBM Portuguesa SA

Cie IBM France SAS

CITLOI

Consul Risk Management Inc

Datamirror Corp

Diligent Technologies UK Ltd

Encentuate Inc

Equitant

FilesX

Guardium Inc

Healthlink Inc

IBM Argentina SA

IBM Australia Ltd

IBM Bahamas Ltd

IBM Brasil Industria Maquinas e Servicos Ltda

IBM Bulgaria Ltd

IBM Business Transformation Center Srl

IBM Canada Ltd

IBM Capital Inc

IBM Ceska Republika spol sro

IBM China/Hong Kong Ltd

IBM China Co Ltd

IBM China Investment Co Ltd

IBM Credit LLC

IBM Croatia Ltd

IBM Danmark A/S

IBM de Bolivia SA

IBM de Chile SAC

IBM de Colombia & CIA SC

IBM del Ecuador CA

IBM del Peru SA

IBM del Uruguay SA

IBM de Mexico S de RL

IBM Deutschland GmbH

30


IBM East Africa Ltd

IBM East Europe/Asia Ltd

IBM Eesti Osauhing

IBM Egypt Business Support Services

IBM Foreign Sales Corp

IBM Global Services China Co Ltd

IBM Hellas Information Handling Systems SA

IBM India Pty Ltd

IBM Indonesia PT

IBM International Business Machines doo

IBM International Business Machines Turk Ltd Sirketi

IBM International BV

IBM International Foundation

IBM International Group BV

IBM International Group Capital LLC

IBM Ireland Ltd

IBM Ireland Product Distribution Ltd

IBM Israel Ltd

IBM Italia SpA

IBM Japan Ltd

IBM Korea Inc

IBM Lietuva

IBM Malaysia Sdn Bhd

IBM Malta Ltd

IBM Maroc

IBM Middle East FZ LLC

IBM Nederland BV

IBM New Zealand Ltd

IBM Oesterreich Internationale Bueromaschinen GmbH

IBM Philippines Inc

IBM Polska Sp zoo

IBM Romania Srl

IBM Schweiz

IBM Services Financial Sector Luxembourg Sarl

IBM Singapore Pte Ltd

IBM Slovenija doo

IBM Slovensko spol sro

IBM South Africa Pty Ltd

IBM Taiwan Corp

31


IBM Thailand Co Ltd

IBM Tunisie

IBM Ukraine

IBM Venezuela

IBM Vietnam Co

IBM World Trade Corp

InfoDyne Corp

Initiate Systems Inc

Intelliden Inc

International Busines Machines Svenska AB

International Business Machines A/S

International Business Machines Corp Magyarorszagi Kft

International Business Machines of Belgium SA

International Business Machines SA

International Business Machines West Africa Ltd

Internet Security Systems KK

Isogon Corp

KeyMRO

Language Analysis Systems Inc

Lombardi Software Inc

MDTVISION

National Interest Security Co Inc

Net Integration Technologies Inc

NovusCG

Ounce Labs Inc

Oy International Business Machines AB

Platform Solutions Inc

Princeton Softech Inc

PureEdge Solutions Inc

RedPill Solutions

Rembo Technology

Sabiedriba ar irobezotu atbildibu IBM Latvija

Softek Storage Solutions Inc

Solid Information Technology

SPSS Inc

Telelogic AB

Transitive Corp

Vallent Corp

Watchfire Corp

32


WebDialogs Inc

WTC Insurance Corp Ltd

XIV

33


Corporate ActionsMERGERS AND ACQUISITIONS

Displaying actions for 04/01/2009 to present. For a complete list see the Corporate Actions section of Bloomberglaw.com.

Type of Action Announced Date Counterparty AnnouncedValue

Status Current/Completed

Value

Legal Advisor

Acquisition 02/16/10 Intelliden Inc -- Completed -- Cravath Swaine& Moore

Acquisition 02/03/10 Initiate SystemsInc

-- Completed --

Divestiture 01/20/10 DC CapitalPartners LLC

-- Completed --

Acquisition 12/16/09 LombardiSoftware Inc

-- Completed -- Cravath Swaine& Moore

Acquisition 11/30/09 Guardium Inc -- Completed -- Cravath Swaine& Moore

Divestiture 11/16/09 InternationalBusinessMachines Corp

-- Pending --


600.00 M USD Completed 600.00 M USD Cravath Swaine& Moore

Divestiture 10/05/09 Bank of AmericaCorp

-- Completed --

Acquisition 09/22/09 RedPillSolutions

11.80 M USD Completed 8.33 M USD WongPartnershipLLP


-- Completed -- Cravath Swaine& Moore

Acquisition 07/28/09 Ounce Labs Inc -- Completed -- Cravath Swaine& Moore

Acquisition 07/28/09 SPSS Inc 766.02 M USD Completed 766.02 M USD A&L Goodbody

Divestiture 05/05/09 Exeros -- Completed -- O'Melveny &Myers LLP

NEW ISSUESDate Type of Action Summary

11/03/09 Debt Offer - New Issue USD 11/4/2011 750000.000 M

11/03/09 Debt Offer - New Issue USD 5/6/2013 1250000.000 M

NAME & LISTING CHANGESDate Type of Action Summary

12/15/09 Change in Listing SEAQ International => London StockExchange M

34


DISTRIBUTIONSDate Type of Action Summary

05/06/09 Cash Dividend Regular Cash, Net/Coupon/Gross: 0.550000(IBMBF US) M

05/06/09 Cash Dividend Regular Cash, Net/Coupon/Gross: 0.550000(IBMC BB) M

05/06/09 Cash Dividend Regular Cash, Net/Coupon/Gross: 0.055000(IBMD AR) M

05/06/09 Cash Dividend Regular Cash, Net/Coupon/Gross: 0.055000(IBMC AR) M

05/06/09 Cash Dividend Regular Cash, Net/Coupon/Gross: 0.055000(IBM AR) M

05/06/09 Cash Dividend Regular Cash, Net/Coupon/Gross: 0.550000(IBMGBP EO) M

05/06/09 Cash Dividend Regular Cash, Net/Coupon/Gross: 0.550000(IBMGBX EU) M

05/06/09 Cash Dividend Regular Cash, Net/Coupon/Gross: 0.550000(IBM PZ) M

05/06/09 Cash Dividend Regular Cash, Net/Coupon/Gross: 0.550000(IBMEUR EU) M

05/06/09 Cash Dividend Regular Cash, Net/Coupon/Gross: 0.550000(IBM EU) M

05/06/09 Cash Dividend Regular Cash, Net/Coupon/Gross: 0.550000(IBM EO) M

05/06/09 Cash Dividend Regular Cash, Net/Coupon/Gross: 0.550000(IBM GR) M

05/06/09 Cash Dividend Regular Cash, Net/Coupon/Gross: 0.550000(IBMA NA) M

05/06/09 Cash Dividend Regular Cash, Net/Coupon/Gross: 0.550000(IBM PE) M

05/06/09 Cash Dividend Regular Cash, Net/Coupon/Gross: 0.550000(IBM CP) M

05/06/09 Cash Dividend Regular Cash, Net/Coupon/Gross: 0.550000(IBM* MM) M

05/06/09 Cash Dividend Regular Cash, Net/Coupon/Gross: 0.550000(IBM US) M

05/06/09 Cash Dividend Regular Cash, Net/Coupon/Gross: 0.550000(IBMGBX EO) M

05/06/09 Cash Dividend Regular Cash, Net/Coupon/Gross: 0.550000(IBM LN) M

05/06/09 Cash Dividend Regular Cash, Net/Coupon/Gross: 0.550000(IBMEUR EO) M


35


Date Type of Action Summary






















36


















11/05/09 Cash Dividend Regular Cash, Net/Coupon/Gross: 0.550000(IBM TE) M






37














02/07/10 Cash Dividend Regular Cash, Net/Coupon/Gross: 0.550000(IBM TE) M





OTHERDate Type of Action Summary

04/28/09 Stock Buyback Open for Common; 3000000000.000 SharesM

10/27/09 Stock Buyback Open for Common; 5000000000.000 SharesM

04/27/10 Corporate Meeting Type: Annual Shareholder M

38


Most Recent FilingsMost recent 50 filings shown. For a complete list, see the Filings section on Bloomberglaw.com.

SELECTED DOCUMENTSForm Type Reporting Entity/Security Filed Date Period Date

4 KAVANAUGH JAMES J 03/16/10 03/15/10

Circular IBM US Equity 03/16/10 03/08/10

4 ROMETTY VIRGINIA M 03/08/10 03/07/10

144 IBM US Equity 03/05/10 02/23/10

4 BLACK CATHLEEN 02/24/10 02/23/10

3 LIVERIS ANDREW N 02/24/10 02/23/10

4 KELLY JOHN E III 02/12/10 02/11/10

4 SHAUGHNESSY TIMOTHY S 02/12/10 02/11/10

4 RHODIN MICHAEL D. 02/10/10 02/09/10

4 RHODIN MICHAEL D. 02/09/10 02/08/10

4 ADKINS RODNEY C 02/09/10 02/08/10

4 ARNOLD COLLEEN F. 02/09/10 02/08/10

4 DANIELS MICHAEL E 02/09/10 02/08/10

4 IWATA JON C 02/09/10 02/08/10


4 KELLY JOHN E III 02/09/10 02/08/10

4 KERN R. FRANKLIN III 02/09/10 02/08/10

4 LEBLANC ROBERT J. 02/09/10 02/08/10

4 LOUGHRIDGE MARK 02/09/10 02/08/10

4 MACDONALD J RANDALL 02/09/10 02/08/10

4 MILLS STEVEN A 02/09/10 02/08/10

4 PALMISANO SAMUEL J 02/09/10 02/08/10


4 SANFORD LINDA S 02/09/10 02/08/10


4 WEBER ROBERT C 02/09/10 02/08/10






4 RHODIN MICHAEL D. 02/02/10 02/01/10

4 ADKINS RODNEY C 02/02/10 02/01/10

4 ARNOLD COLLEEN F. 02/02/10 02/01/10

39


Form Type Reporting Entity/Security Filed Date Period Date


4 IWATA JON C 02/02/10 02/01/10


4 KELLY JOHN E III 02/02/10 02/01/10

4 KERN R. FRANKLIN III 02/02/10 02/01/10

4 LEBLANC ROBERT J. 02/02/10 02/01/10


4 MACDONALD J RANDALL 02/02/10 02/01/10

4 MILLS STEVEN A 02/02/10 02/01/10

4 PALMISANO SAMUEL J 02/02/10 02/01/10


4 SANFORD LINDA S 02/02/10 02/01/10


4 WEBER ROBERT C 02/02/10 02/01/10

4 WEBER ROBERT C 02/01/10 01/29/10

8-K IBM US Equity 01/29/10 01/26/10

40


Recent Company NewsMost recent 10 Bloomberg News stories shown. For complete news, see the Overview section on Bloomberglaw.com.

RENESAS ELECTRONICS MAY CHOSE SINGLE TECHNOLOGY PARTNER, FT SAYSBy Victoria Batchelor

April 1 (Bloomberg) -- Either International Business Machines Corp. or Panasonic Corp. may lose a technology partner when two of Japan'schipmakers merge today to form Renesas Electronics Corp., the Financial Times reported.

The new company combines Renesas Technology Corp., which has an alliance with Panasonic, and NEC Electronics Corp., which is alliedwith IBM, the FT said. Yasushi Akao, president of the newly-formed company, told the FT he wants to try and chose one technology alliance.

To contact the reporter on this story: Victoria Batchelor in Sydney at +61-2-9777-8674 or [email protected]

To contact the editor responsible for this story: Victoria Richards at +61-2-9777-8614 or [email protected]

OBAMA SAYS FLEXIBLE RULES IN WORKPLACE HELP WORKERS, BUSINESSESBy Nicholas Johnston

March 31 (Bloomberg) -- President Barack Obama said flexible workplace rules are good for both employees and businesses as he gaveclosing remarks at a forum on the subject today.

"Workplace flexibility isn't just a women's issue. It's an issue that affects the well-being of our families and the strength of our businesses,"Obama told participants at the event in the Eisenhower Executive Office Building next door to the White House.

Administration officials met with executives from more than two dozen companies, along with policy experts, union leaders and workersto discuss practices such as telecommuting and flexible work hours that provide employees the opportunity to spend more time with theirfamilies.

In his 2011 budget, Obama included money for programs aimed at enabling employees to care for elderly relatives or family members withdisabilities, and to help pay for child care.

A report by the President's Council of Economic Advisers released today found flexible workplace rules reduce absenteeism and turnoverand improve worker health and productivity.

First Lady Michelle Obama kicked off today's event by encouraging companies to expand practices that help workers cope with family-related matters, including discounts for childcare.

"Balancing our responsibilities as employees as breadwinners, mothers, fathers, sons, daughters, husbands and wives it's an issuethat many folks have struggled with for so many years," she said. "As the parents of two beautiful young daughters, it's an issue that isparticularly important to me and my husband."

Companies Represented

Forum attendees included executives from PNC Financial Services Group Inc., JetBlue Airways Corp., Campbell Soup Co., GlaxoSmithKlinePlc, International Business Machines Corp., American Express Co. and Marriott International Inc.

The gathering is the latest effort by Obama to reach out to corporate executives. With the U.S. still emerging from the worst recession sincethe 1930s and his health-care plan signed into law, Obama is turning more of his focus to the economy.

--With assistance from Kate Andersen Brower in Washington.

Editors: Don Frederick, Jim Rubin.

To contact the reporter on this story: Nicholas Johnston in Washington at +1-202-654-1264 or [email protected]

To contact the editor responsible for this story: Jim Kirk at +1-202-654-4315 or [email protected]

CFTC APPROVES COLLATERAL SEGREGATION FOR OTC CLEARING (UPDATE1)(Adds CME Group in first paragraph.)

By Matthew Leising

41


March 31 (Bloomberg) -- The U.S. commodities regulator approved rules to protect bank client assets that support cleared over-the-counterderivatives trades, giving a boost to CME Group Inc., the world's largest futures market.

The rules passed by the Commodity Futures Trading Commission mean banks will have to segregate the cash and other collateral investorspledge as margin to back credit-default or interest-rate swaps that are processed by a clearinghouse. That system has been in place forfutures trades and assured that investors who used Lehman Brothers Holdings Inc. as their futures broker recovered their money after thefirm went bankrupt in September 2008.

CME Group has offered to guarantee credit-default swaps with its clearinghouse since last year. Its hedge fund and asset manager clientshave pushed for protections of their collateral similar to what they receive in futures trading. CME Group had processed $189.5 million worthof credit swaps as of March 16. Competitor Intercontinental Exchange Inc., owner of the world's largest credit-swap clearinghouse, hasguaranteed more than $6.4 trillion of the trades since last March.

Clearinghouses are capitalized by their members in a structure meant to ensure that trading parties are made whole if any member defaults.They collect margins on outstanding trades each day to keep accounts current and give regulators access to information on marketpositions.

--Editors: Charles W. Stevens, Richard Bedard

To contact the reporter on this story: Matthew Leising in New York at +1-212-617-1151 or [email protected].

To contact the editor responsible for this story: Alan Goldstein at +1-212-617-6186 or [email protected]

IBM TO SUPPORT STARTUPS AS IT SEEKS M&A TARGETS (UPDATE2)(Updates share prices in last paragraph.)

By Katie Hoffmann

March 31 (Bloomberg) -- International Business Machines Corp., the world's biggest computer-services provider, will help some startupsoftware companies develop their technology as it seeks to identify potential partners or acquisition targets.

Chosen startups will have access to IBM's software and research laboratories, the Armonk, New York-based company said today in astatement. IBM introduced the program at a forum in Bangalore, India.

To qualify, companies must be closely held, less than three years old and make software that could be part of IBM's Smarter Planetprogram, which maintains that anything can be digitally monitored to be made more efficient. The requirements fit into IBM's mergers andacquisition strategy, said Jim Corgel, who heads the company's developer relations.

"When the time is right, they might become part of IBM," Corgel said. The company has bought about 75 of the 1,500 startups it has workedwith, he said.

Since becoming IBM's chief executive officer eight years ago, Sam Palmisano has spent more than $20 billion on 100 acquisitions, most ofthem software companies valued at less than $1 billion.

Even if the startups aren't acquired by IBM, they may become a partner of the company, said Steve White, who heads software partnershipsfor research firm IDC in Toronto.

"This is a way to pick up some new evolving partners, potentially the big partners of the future," White said.

IBM fell 52 cents to $128.25 at 4 p.m. in New York Stock Exchange composite trading. The shares have dropped 2 percent this year.

--Editors: Stephen West, Jerry Byrd.

To contact the reporter on this story: Katie Hoffmann in New York at +1-212-617-5327 or [email protected]

To contact the editor responsible for this story: Julie Alnwick at +1-212-617-8960 or [email protected]

QUARTERLY RANKING OF S&P 500 SECTORS BY NET INCOMEBy Phillip Cruz

March 31 (Bloomberg) -- The following tables detail fourth-quarter earnings results for sectors in the Standard & Poor's 500 Index. For thequarter to date, 495 companies out of the 500 have reported their earnings. This list ranks year-over-year percent changes of the sector'snet income. Within sectors, industry's net income is also ranked by year-over-year percent changes.

42


Q4/09 Q4/08

NET NET %

(MIL) (MIL) CHG

=====================================================

TOTAL 158032.11-160788.57 198.3

INFORMATION TECHNOLOGY 36958.39 3185.99 1060.0

Office Electronics 180.00 1.00 17900.0

Internet Software & Servi 3614.09 390.82 824.8

Software 9061.84 -1284.39 805.5

Electronic Equipment & In 1014.47 113.62 792.9

Semiconductor & Semicondu 5267.95 -3316.02 258.9

Communications Equipment 3149.06 -2347.30 234.2

Computers & Peripherals 12250.32 7461.26 64.2

IT Services 2420.67 2167.01 11.7

HEALTH CARE 31636.57 8353.61 278.7

Health Care Equipment & S 1808.99 68.36 2546.2

Pharmaceuticals 20497.89 3614.57 467.1

Health Care Providers & S 6335.12 2600.26 143.6

Life Sciences Tools & Ser 510.20 337.91 51.0

Biotechnology 2412.87 1634.04 47.7

Health Care Technology 71.50 98.47 -27.4

ENERGY 15814.40 -27581.97 157.3

Oil, Gas & Consumable Fue 13811.46 -31083.76 144.4

Energy Equipment & Servic 2002.94 3501.80 -42.8

CONSUMER DISCRETIONARY 16962.24 -46575.59 136.4

Specialty Retail 3165.28 52.87 5887.3

Hotels Restaurants & Leis 2067.68 303.43 581.4

Leisure Equipment & Produ 936.96 -648.02 244.6

Multiline Retail 2807.99 -3220.95 187.2

Auto Components 457.00 -938.00 148.7

Internet & Catalog Retail 564.68 -2500.84 122.6

Household Durables 362.97 -1999.19 118.2

Media 4675.64 -32912.15 114.2

Automobiles 667.30 -5900.19 111.3

Diversified Consumer Serv 363.23 270.59 34.2

Distributors 99.17 87.78 13.0

Textiles, Apparel & Luxur 794.34 829.07 -4.2

UTILITIES 9668.26 4267.09 126.6

43


Independent Power Produce 4373.20 -1449.60 401.7

Gas Utilities 260.58 202.60 28.6

Electric Utilities 3073.60 3024.22 1.6

Multi-Utilities 1960.88 2489.88 -21.2

MATERIALS 2796.56 -19022.56 114.7

Chemicals 1712.01 -774.83 321.0

Containers & Packaging 88.19 -60.40 246.0

Metals & Mining 1234.71 -14955.51 108.3

Construction Materials -13.35 -212.82 93.7

Paper & Forest Products -225.00 -3019.00 92.5

FINANCIALS 8845.61-106238.22 108.3

Real Estate Management & 64.29 6.53 884.5

Consumer Finance 1753.26 -965.23 281.6

Capital Markets 7942.97 -5515.93 244.0

Commercial Banks 2887.93 -14104.66 120.5

Insurance -1610.58 -65217.46 97.5

Diversified Financial Ser -3982.18 -22169.22 82.0

Real Estate Investment Tr 1628.43 1569.77 3.7

Thrifts & Mortgage Financ 161.48 157.98 2.2

CONSUMER STAPLES 16290.36 8406.29 93.8

Beverages 3665.10 -327.40 1219.5

Food Products 3816.86 2227.90 71.3

Food & Staples Retailing 5514.80 3428.98 60.8

Personal Products 589.60 436.80 35.0

Tobacco 2704.00 2640.00 2.4

Household Products 5892.00 6006.30 -1.9

INDUSTRIALS 17158.16 11905.90 44.1

Airlines 116.00 -56.00 307.1

Commercial Services & Sup 582.59 -371.62 256.8

Aerospace & Defense 6282.10 2100.30 199.1

Building Products -185.00 -508.00 63.6

Air Freight & Logistics 1258.87 913.61 37.8

Machinery 2233.56 2261.40 -1.2

Industrial Conglomerates 3885.00 4049.00 -4.1

Electrical Equipment 715.14 780.04 -8.3

Road & Rail 1707.20 1985.60 -14.0

Trading Companies & Distr 141.59 170.45 -16.9

Construction & Engineerin 265.08 349.42 -24.1

Professional Services 156.02 231.70 -32.7

TELECOMMUNICATION SERVICE 1901.56 2510.88 -24.3

Wireless Telecommunicatio -882.53 -1520.59 42.0

Diversified Telecommunica 2784.08 4031.47 -30.9

TOTAL 158032.11-160788.57 198.3

--Editor: Marybeth Sandell

To contact the reporter on this story: Phillip Cruz in Princeton at +1-609-279-3686 or [email protected]

44


To contact the editor responsible for this story: Marybeth Sandell at +46-8-610-0704 or [email protected]

NI ERN NI ERNIRNET NI ERNANA NI INDSTATS NI BBEA NI US NI TABLE NI COS NI USSTATS

QUARTERLY RANKING OF S&P 500 INDUSTRIES BY NET INCOMEBy Phillip Cruz

March 31 (Bloomberg) -- The following tables detail fourth-quarter earnings results for industries in the Standard & Poor's 500 Index. For thequarter to date, 495 companies out of the 500 have reported their earnings. Industries are ranked by year-over-year percent changes in netincome.

Q4/09 Q4/08

NET NET %

(MIL) (MIL) CHG

=====================================================

TOTAL 158032.11-160788.57 198.3

Office Electronics 180.00 1.00 17900.0



Beverages 3665.10 -327.40 1219.5



Software 9061.84 -1284.39 805.5





Chemicals 1712.01 -774.83 321.0

Airlines 116.00 -56.00 307.1


Semiconductor & Semicondu 5267.95 -3316.02 258.9

Commercial Services & Sup 582.59 -371.62 256.8

Containers & Packaging 88.19 -60.40 246.0

Leisure Equipment & Produ 936.96 -648.02 244.6

Capital Markets 7942.97 -5515.93 244.0

Communications Equipment 3149.06 -2347.30 234.2


Multiline Retail 2807.99 -3220.95 187.2

Auto Components 457.00 -938.00 148.7

Oil, Gas & Consumable Fue 13811.46 -31083.76 144.4

Health Care Providers & S 6335.12 2600.26 143.6

45


Internet & Catalog Retail 564.68 -2500.84 122.6


Household Durables 362.97 -1999.19 118.2

Media 4675.64 -32912.15 114.2

Automobiles 667.30 -5900.19 111.3

Metals & Mining 1234.71 -14955.51 108.3

Insurance -1610.58 -65217.46 97.5

Construction Materials -13.35 -212.82 93.7

Paper & Forest Products -225.00 -3019.00 92.5


Food Products 3816.86 2227.90 71.3


Building Products -185.00 -508.00 63.6


Life Sciences Tools & Ser 510.20 337.91 51.0

Biotechnology 2412.87 1634.04 47.7

Wireless Telecommunicatio -882.53 -1520.59 42.0

Air Freight & Logistics 1258.87 913.61 37.8



Gas Utilities 260.58 202.60 28.6


IT Services 2420.67 2167.01 11.7


Tobacco 2704.00 2640.00 2.4


Electric Utilities 3073.60 3024.22 1.6

Machinery 2233.56 2261.40 -1.2

Household Products 5892.00 6006.30 -1.9


Textiles, Apparel & Luxur 794.34 829.07 -4.2


Road & Rail 1707.20 1985.60 -14.0


Multi-Utilities 1960.88 2489.88 -21.2


Health Care Technology 71.50 98.47 -27.4




TOTAL 158032.11-160788.57 198.3




NI ERN NI ERNIRNET NI ERNANA NI INDSTATS NI BBEA NI US NI TABLE NI COS NI USSTATS

QUARTERLY RANKING OF S&P 500 INDUSTRIES BY INCOME FROM OPSBy Phillip Cruz

46


March 31 (Bloomberg) -- The following tables detail fourth-quarter earnings results for industries in the Standard & Poor's 500 Index. Forthe quarter to date, 495 companies out of the 500 have reported their earnings. Industries are ranked by year-over-year percent changes inincome from operations.

Q4/09 Q4/08

CONT OPS CONT OPS %

(MIL) (MIL) CHG

======================================================

TOTAL 165244.78 84257.44 96.1

Semiconductor & Semicondu 5186.27 668.20 676.2

Capital Markets 7622.99 -1593.03 578.5


Metals & Mining 1619.52 359.51 350.5



Leisure Equipment & Produ 803.80 248.98 222.8

Auto Components 319.00 -369.00 186.4

Building Products 41.72 -63.18 166.0

Containers & Packaging 642.50 265.40 142.1

Chemicals 1972.75 867.52 127.4

Paper & Forest Products 29.52 -112.00 126.4

Automobiles 800.35 -3128.88 125.6


Insurance 114.20 -35080.70 100.3


Internet & Catalog Retail 551.86 314.32 75.6



Communications Equipment 3523.16 2466.52 42.8


Software 9887.24 7330.24 34.9

Multiline Retail 2876.79 2170.10 32.6




Food Products 3647.94 3081.55 18.4

Airlines 71.48 61.00 17.2


IT Services 2664.57 2328.46 14.4



47


Media 5558.65 4965.48 11.9

Household Products 4386.25 3994.50 9.8

Beverages 3754.06 3491.92 7.5

Biotechnology 2660.49 2483.11 7.1

Textiles, Apparel & Luxur 912.35 863.31 5.7



Health Care Technology 95.10 90.60 5.0



Tobacco 2892.92 2834.80 2.1


Multi-Utilities 2376.81 2385.66 -0.4

Electric Utilities 3114.74 3135.11 -0.6

Commercial Services & Sup 820.19 828.31 -1.0

Gas Utilities 267.03 270.29 -1.2

Health Care Providers & S 4108.76 4163.65 -1.3

Life Sciences Tools & Ser 671.95 686.57 -2.1


Machinery 2250.30 2491.51 -9.7



Air Freight & Logistics 1258.87 1488.61 -15.4

Office Electronics 219.00 265.00 -17.4

Household Durables 175.95 214.78 -18.1

Oil, Gas & Consumable Fue 16658.08 20451.51 -18.5

Road & Rail 1721.59 2142.13 -19.6





Construction Materials -23.28 20.83 -211.7

Wireless Telecommunicatio -277.17 102.41 -370.6

TOTAL 165244.78 84257.44 96.1




NI US NI ERN NI ERNIRCONT NI ERNANA NI INDSTATS NI BBEA NI TABLE NI COS NI USSTATS

QUARTERLY RANKING OF S&P 500 SECTORS BY INCOME FROM OPERATIONSBy Phillip Cruz

March 31 (Bloomberg) -- The following tables detail fourth-quarter earnings results for sectors in the Standard & Poor's 500 Index. For thequarter to date, 495 companies out of the 500 have reported their earnings. This list ranks year-over-year percent changes of the sector'sincome from continuing operations. Within sectors, industry's income from continuing operations is also ranked by year-over-year percentchanges.

48


Q4/09 Q4/08

CONT OPS CONT OPS %

(MIL) (MIL) CHG

=====================================================

TOTAL 165244.78 84257.44 96.1

MATERIALS 4241.01 1401.25 202.7

Metals & Mining 1619.52 359.51 350.5

Containers & Packaging 642.50 265.40 142.1

Chemicals 1972.75 867.52 127.4

Paper & Forest Products 29.52 -112.00 126.4

Construction Materials -23.28 20.83 -211.7

FINANCIALS 10197.98 -49737.59 120.5

Capital Markets 7622.99 -1593.03 578.5



Insurance 114.20 -35080.70 100.3





CONSUMER DISCRETIONARY 18048.77 10122.79 78.3

Leisure Equipment & Produ 803.80 248.98 222.8

Auto Components 319.00 -369.00 186.4

Automobiles 800.35 -3128.88 125.6

Internet & Catalog Retail 551.86 314.32 75.6


Multiline Retail 2876.79 2170.10 32.6



Media 5558.65 4965.48 11.9

Textiles, Apparel & Luxur 912.35 863.31 5.7


Household Durables 175.95 214.78 -18.1

INFORMATION TECHNOLOGY 38286.86 25082.06 52.6

Semiconductor & Semicondu 5186.27 668.20 676.2


Communications Equipment 3523.16 2466.52 42.8


Software 9887.24 7330.24 34.9


IT Services 2664.57 2328.46 14.4

49


Office Electronics 219.00 265.00 -17.4

CONSUMER STAPLES 22574.02 16737.06 34.9


Food Products 3647.94 3081.55 18.4

Household Products 4386.25 3994.50 9.8

Beverages 3754.06 3491.92 7.5


Tobacco 2892.92 2834.80 2.1

UTILITIES 5912.82 5710.51 3.5


Multi-Utilities 2376.81 2385.66 -0.4

Electric Utilities 3114.74 3135.11 -0.6

Gas Utilities 267.03 270.29 -1.2

HEALTH CARE 24480.35 23795.01 2.9


Biotechnology 2660.49 2483.11 7.1

Health Care Technology 95.10 90.60 5.0


Health Care Providers & S 4108.76 4163.65 -1.3

Life Sciences Tools & Ser 671.95 686.57 -2.1

INDUSTRIALS 17774.19 20231.57 -12.1

Building Products 41.72 -63.18 166.0

Airlines 71.48 61.00 17.2


Commercial Services & Sup 820.19 828.31 -1.0


Machinery 2250.30 2491.51 -9.7


Air Freight & Logistics 1258.87 1488.61 -15.4

Road & Rail 1721.59 2142.13 -19.6




TELECOMMUNICATION SERVICE 4845.69 6087.89 -20.4


Wireless Telecommunicatio -277.17 102.41 -370.6

ENERGY 18883.10 24826.89 -23.9

Oil, Gas & Consumable Fue 16658.08 20451.51 -18.5


TOTAL 165244.78 84257.44 96.1




50


QUARTERLY INCOME SUMMARY FOR S&P 500 SECTOR AND INDUSTRYBy Phillip Cruz

March 31 (Bloomberg) -- The following tables detail fourth-quarter earnings results for sectors and industries in the Standard & Poor's 500Index. For the quarter to date, 495 companies out of the 500 have reported their earnings. Sectors and industries are sorted in alphabeticalorder.

Q4/09 Q4/08 Q4/09 Q4/08

CONT OPS CONT OPS % NET NET %

(MIL) (MIL) CHG (MIL) (MIL) CHG

============================================================================

TOTAL 165244.78 84257.44 96.1 158032.11-160788.57 198.3

CONSUMER DISCRETIONARY 18048.77 10122.79 78.3 16962.24 -46575.59 136.4

Auto Components 319.00 -369.00 186.4 457.00 -938.00 148.7

Automobiles 800.35 -3128.88 125.6 667.30 -5900.19 111.3

Distributors 99.17 87.78 13.0 99.17 87.78 13.0

Diversified Consumer S 354.76 290.06 22.3 363.23 270.59 34.2

Hotels Restaurants & L 2247.61 2127.66 5.6 2067.68 303.43 581.4

Household Durables 175.95 214.78 -18.1 362.97 -1999.19 118.2

Internet & Catalog Ret 551.86 314.32 75.6 564.68 -2500.84 122.6

Leisure Equipment & Pr 803.80 248.98 222.8 936.96 -648.02 244.6

Media 5558.65 4965.48 11.9 4675.64 -32912.15 114.2

Multiline Retail 2876.79 2170.10 32.6 2807.99 -3220.95 187.2

Specialty Retail 3348.50 2338.22 43.2 3165.28 52.87 5887.3

Textiles, Apparel & Lu 912.35 863.31 5.7 794.34 829.07 -4.2

CONSUMER STAPLES 22574.02 16737.06 34.9 16290.36 8406.29 93.8

Beverages 3754.06 3491.92 7.5 3665.10 -327.40 1219.5

Food & Staples Retaili 7235.02 6884.80 5.1 5514.80 3428.98 60.8

Food Products 3647.94 3081.55 18.4 3816.86 2227.90 71.3

Household Products 4386.25 3994.50 9.8 5892.00 6006.30 -1.9

Personal Products 657.84 444.00 48.2 589.60 436.80 35.0

Tobacco 2892.92 2834.80 2.1 2704.00 2640.00 2.4

ENERGY 18883.10 24826.89 -23.9 15814.40 -27581.97 157.3

Energy Equipment & Ser 2225.02 4375.38 -49.1 2002.94 3501.80 -42.8

Oil, Gas & Consumable 16658.08 20451.51 -18.5 13811.46 -31083.76 144.4

FINANCIALS 10197.98 -49737.59 120.5 8845.61-106238.22 108.3

Capital Markets 7622.99 -1593.03 578.5 7942.97 -5515.93 244.0

51


Commercial Banks 2155.57 -1707.84 226.2 2887.93 -14104.66 120.5

Consumer Finance 1537.76 -373.80 511.4 1753.26 -965.23 281.6

Diversified Financial -3114.53 -12768.64 75.6 -3982.18 -22169.22 82.0

Insurance 114.20 -35080.70 100.3 -1610.58 -65217.46 97.5

Real Estate Investment 1631.43 1561.77 4.5 1628.43 1569.77 3.7

Real Estate Management 85.98 64.97 32.4 64.29 6.53 884.5

Thrifts & Mortgage Fin 164.58 159.68 3.1 161.48 157.98 2.2

HEALTH CARE 24480.35 23795.01 2.9 31636.57 8353.61 278.7

Biotechnology 2660.49 2483.11 7.1 2412.87 1634.04 47.7

Health Care Equipment 3501.26 3039.52 15.2 1808.99 68.36 2546.2

Health Care Providers 4108.76 4163.65 -1.3 6335.12 2600.26 143.6

Health Care Technology 95.10 90.60 5.0 71.50 98.47 -27.4

Life Sciences Tools & 671.95 686.57 -2.1 510.20 337.91 51.0

Pharmaceuticals 13442.79 13331.56 0.8 20497.89 3614.57 467.1

INDUSTRIALS 17774.19 20231.57 -12.1 17158.16 11905.90 44.1

Aerospace & Defense 6289.90 5582.94 12.7 6282.10 2100.30 199.1

Air Freight & Logistic 1258.87 1488.61 -15.4 1258.87 913.61 37.8

Airlines 71.48 61.00 17.2 116.00 -56.00 307.1

Building Products 41.72 -63.18 166.0 -185.00 -508.00 63.6

Commercial Services & 820.19 828.31 -1.0 582.59 -371.62 256.8

Construction & Enginee 265.06 353.56 -25.0 265.08 349.42 -24.1

Electrical Equipment 717.08 780.28 -8.1 715.14 780.04 -8.3

Industrial Conglomerat 4006.80 6139.19 -34.7 3885.00 4049.00 -4.1

Machinery 2250.30 2491.51 -9.7 2233.56 2261.40 -1.2

Professional Services 180.62 250.76 -28.0 156.02 231.70 -32.7

Road & Rail 1721.59 2142.13 -19.6 1707.20 1985.60 -14.0

Trading Companies & Di 150.59 176.46 -14.7 141.59 170.45 -16.9

INFORMATION TECHNOLOGY 38286.86 25082.06 52.6 36958.39 3185.99 1060.0

Communications Equipme 3523.16 2466.52 42.8 3149.06 -2347.30 234.2

Computers & Peripheral 12986.96 9287.51 39.8 12250.32 7461.26 64.2

Electronic Equipment & 1071.30 531.89 101.4 1014.47 113.62 792.9

Internet Software & Se 2748.38 2204.23 24.7 3614.09 390.82 824.8

IT Services 2664.57 2328.46 14.4 2420.67 2167.01 11.7

Office Electronics 219.00 265.00 -17.4 180.00 1.0017900.0

Semiconductor & Semico 5186.27 668.20 676.2 5267.95 -3316.02 258.9

Software 9887.24 7330.24 34.9 9061.84 -1284.39 805.5

MATERIALS 4241.01 1401.25 202.7 2796.56 -19022.56 114.7

Chemicals 1972.75 867.52 127.4 1712.01 -774.83 321.0

Construction Materials -23.28 20.83 -211.7 -13.35 -212.82 93.7

Containers & Packaging 642.50 265.40 142.1 88.19 -60.40 246.0

Metals & Mining 1619.52 359.51 350.5 1234.71 -14955.51 108.3

Paper & Forest Product 29.52 -112.00 126.4 -225.00 -3019.00 92.5

TELECOMMUNICATION SERV 4845.69 6087.89 -20.4 1901.56 2510.88 -24.3

Diversified Telecommun 5122.85 5985.48 -14.4 2784.08 4031.47 -30.9

Wireless Telecommunica -277.17 102.41 -370.6 -882.53 -1520.59 42.0

UTILITIES 5912.82 5710.51 3.5 9668.26 4267.09 126.6

Electric Utilities 3114.74 3135.11 -0.6 3073.60 3024.22 1.6

52


Gas Utilities 267.03 270.29 -1.2 260.58 202.60 28.6

Independent Power Prod 154.24 -80.55 291.5 4373.20 -1449.60 401.7

Multi-Utilities 2376.81 2385.66 -0.4 1960.88 2489.88 -21.2

TOTAL 165244.78 84257.44 96.1 158032.11-160788.57 198.3




RAJARATNAM SEEKS TO KEEP WIRETAP PAPERS CONFIDENTIAL (UPDATE1)(Adds details of the argument in second paragraph.)

By David Glovin

March 31 (Bloomberg) -- Galleon Group LLC founder Raj Rajaratnam, who faces criminal insider-trading charges, asked a judge to keepconfidential wiretap applications that prosecutors say may be disclosed to the public.

Rajaratnam today filed court papers opposing the government's earlier request for a court procedure that will address "the public's right toaccess wiretap applications," which investigators probing him had confidentially submitted to a judge. Rajaratnam says "no such right exists"and that the applications should remain secret until a judge decides whether the wiretaps may be used at his trial.

Defense attorney John Dowd says Rajaratnam's right to try to exclude the wiretaps from his trial "would be irreversibly compromised if thegovernment were permitted to publicize the same evidence in public filings" before a judge rules.

The government's insider-trading case is based on testimony from cooperating witnesses and wiretaps of Rajaratnam and others.

--Editors: Mary Romano, Charles Carter.

To contact the reporter on this story: David Glovin in federal court in New York at +1-212-732-9245 or [email protected].

To contact the editor responsible for this story: David E. Rovella at +1-212-617-1092 or [email protected].

53

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