International Business Machines
Headquarters:
1 New Orchard Rd.
Armonk, NY 10504
Employees: 386,558
CEO: Samuel Palmisano
Website: http://www.ibm.com
Stock Symbol:
IBM
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IBM is the world's largest information
technology company. It is a leader in developing computer servers,
software, storage devices and microchips. It also fields a large
business consulting division.
The company has operations in more than
60 countries. It has a major presence in New York with headquarters
in Armonk, research facility in Yorktown Heights, and a massive
chip-making facility in Fishkill. IBM is a world leader in research
and development and number of corporate patents received annually.
In 2008, IBM reported record revenues of $103.6 billion, up 5% from the previous year, and net income of $12.33 billion.
From a geographic perspective, the America's full-year revenues were $42.8 billion, an increase of 4 percent as reported (4 percent, adjusting for currency) from the 2007 period. Revenues from Europe/Middle East/Africa were $37.0 billion, an increase of 7 percent (3 percent, adjusting for currency). Asia-Pacific revenues increased 8 percent (2 percent, adjusting for currency) to $21.1 billion. OEM revenues were $2.7 billion, down 22 percent compared with 2007. Revenues from the company's growth markets organization increased 10 percent (10 percent, adjusting for currency) and represented 18 percent of geographic revenues.
Revenues from the Global Technology Services segment totaled $39.3 billion, an increase of 9 percent (6 percent, adjusting for currency) compared with 2007. Revenues from the Global Business Services segment were $19.6 billion, up 9 percent (5 percent, adjusting for currency). Total services signings were $57.2 billion. Software segment revenues in 2008 totaled $22.1 billion, an increase of 11 percent (8 percent, adjusting for currency). Systems and Technology segment revenues were $19.3 billion, a decrease of 10 percent (11 percent, adjusting for currency). Global Financing segment revenues totaled $2.6 billion, an increase of 2 percent (essentially flat, adjusting for currency).
IBM laid off several thousand employees in January 2009 but would not disclose the exact number. Layoffs have been reported at IBM facilities in Tucson, AZ; San Jose, CA; Rochester, MN; Research Triangle Park, NC; East Fishkill, NY; Austin, TX; and Burlington, VT.
IBM announced in October it will provide U.S. employees with 100 percent coverage for primary health care, beginning in 2010. Employees enrolled in IBM plans will receive full coverage throughout the year -- no coinsurance or deductible -- for in-network primary care with their internist, family practitioner, pediatrician, general practitioner or primary osteopath. IBM will be among the first U.S. companies to cover primary care at 100 percent.
The company also announced a new wellness incentive for employees to encourage changes in lifestyle to build energy, better health and vitality through all aspects of personal well-being -- emotional, mental and physical. IBM pioneered the concept of healthy living rebates for its employees in 2004 and the new rebate will be one of five $150 cash incentives available to all full-time IBM employees in the U.S.
History
IBM was incorporated in the state of New
York on June 15, 1911 as the Computing-Tabulating-Recording Company
(C-T-R). It was formed by Charles Flint, a noted trust organizer,
who engineered the merger of Hollerith's Tabulating Machine Company
with two others - Computing Scale Company of America and International
Time Recording Company.
Based in New York City, the company had
1,300 employees and offices and plants in Endicott and Binghamton,
NY; Dayton, OH; Detroit; Washington, D.C.; and Toronto. The combined
company manufactured and sold machinery ranging from commercial
scales and industrial time recorders to meat and cheese slicers,
along with tabulators and punched cards.
Thomas Watson, Sr. joined the company as
general manager in 1914 and soon became President. He doubled
sales to $9 million in just four years.
IBM would continue to grow over the next
few decades and build new devices such as calculators and typewriters.
This would lead the company to develop mainframe computers for
use by companies and the military. In 1981, IBM developed its
own personal computer (PC) using a processor from Intel and Disk
Operating System (DOS) software from Microsoft. This would kick
off a new era of technology by bringing computing to the masses.
While IBM built more PCs, the operating
system software was owned by Microsoft, which in turn licensed
the software to run the computers to other manufacturers. Many
businesses and consumers bought computers, but not necessarily
from IBM. Companies such as Hewlett-Packard and Dell would soon
dominate the industry for computer sales.
IBM sold its money-losing personal computer division in 2005, which includes Thinkpad laptops, to Chinese corporation Lenovo for $1.75 billion.
The company stopped making contributions to its pension plan after Dec. 31, 2007. To make up for the end of the pension plan, IBM will increase its 401(k) contribution to as much as 10 percent of pay. To provide this benefit through its new 401(k) Plus Plan, IBM plans to double the current company match to dollar-for-dollar on up to 6 percent of salary deferrals, and to make additional automatic contributions of 1 to 4 percent of employees' pay into their 401(k) account.
Benefits and Pay
IBM workers receive base salary, performance bonus, commissions, awards and other forms of earnings. For most eligible employees, the target performance bonus opportunity is 2-8 percent of eligible annual earnings - with the potential for greater rewards for extraordinary performance.
Health insurance
- Three IBM Medical Plan options and various
health maintenance organizations (HMOs) are available.
- Two IBM Dental Plan options and dental maintenance alternatives
(DMAs) are available.
- Vision coverage.
- Health care and dependent care spending accounts are offered.
Days Off
Employees with 1-9 years of service get
15 days off. With 10 or more years of service, 20 days of vacation
a year.
IBM also offers 12 holidays a year - usually
six observed nationally. The other six vary according to operational
requirements with at least one personal-choice holiday.
Telecommuting and work-week balancing schedules
are available in many business units with prior management approval.
Savings Plan
Employees can contribute up to
80 percent of eligible compensation each pay period on a before-tax
basis, and up to 10 percent on an after-tax basis, up to amounts
permitted by tax laws. For eligible employees, IBM offers a dollar-for-dollar
match, up to the first 6 percent of pay you contribute to the
plan. Employees are eligible for this match after one year, and,
once eligible, are fully vested. (Employees are always fully
vested in their own contributions.) This plan will change in
2008 when the company freezes contributions to pensions.
Stock Purchase Plan
Each pay period, employees can
contribute up to 10 percent of eligible compensation to purchase
IBM stock at a discount of 5% off the price on the date of purchase.
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