International Business Machines Corporation reported consolidated earnings results for the fourth quarter and full year ended December 31, 2012. For the quarter, the company reported diluted earnings of $5.13 per share, compared with diluted earnings of $4.62 per share in the fourth quarter of 2011, an increase of 11%. Operating (non-GAAP) diluted earnings were $5.39 per share, compared with operating diluted earnings of $4.71 per share in the fourth quarter of 2011, an increase of 14%. Net income was $5.8 billion compared with $5.5 billion in the fourth quarter of 2011, an increase of 6 %. Operating (non-GAAP) net income was $6.1 billion compared with $5.6 billion in the fourth quarter of 2011, an increase of 10%. Total revenues for the fourth quarter of 2012 of $29.3 billion decreased 1% (flat adjusting for currency) from the fourth quarter of 2011. Without the impact of the divested Retail Store Solutions (RSS) business, revenue increased 1%, adjusting for currency. Operating (non-GAAP) diluted earnings exclude $0.26 per share of net charges: $0.21 per share for the amortization of purchased intangible assets and other acquisition-related charges, and $0.05 per share for retirement-related items driven by changes to plan assets and liabilities primarily related to market performance. Income before income taxes was $7,831 million against $7,274 million a year ago. Net cash from operating activities per GAAP was $6,346 million against $7,097 million a year ago. Capital expenditures, net were $981 million against $1,059 million a year ago. The company generated $9.5 billion of free cash flow, up $0.6 billion.

For the full year, the company reported net income for the year ended December 31, 2012 was $16.6 billion compared with $15.9 billion in the prior year, an increase of 5 %. Operating (non-GAAP) net income was $17.6 billion compared with $16.3 billion in 2011, an increase of 8%. Diluted earnings were $14.37 per share compared with $13.06 per diluted share in 2011, an increase of 10%. Operating (non-GAAP) diluted earnings were $15.25 per share, compared with operating diluted earnings of $13.44 per share in 2011, an increase of 13%. This was the company's 10th consecutive year of double-digit EPS growth. Revenues for 2012 totaled $104.5 billion, a decrease of 2% (flat adjusting for currency), compared with $106.9 billion in 2011. Operating (non-GAAP) diluted earnings for the year exclude $0.88 per share of net charges: $0.55 per share for the amortization of purchased intangible assets and other acquisition-related charges, and $0.33 per share for retirement-related items driven by changes to plan assets and liabilities primarily related to market performance. Income before income taxes was $21,902 million against $21,003 million a year ago. Net cash from operating activities per GAAP was $19,586 million against $19,846 million a year ago. Capital expenditures, net were $4,307 million against $4,059 million a year ago. The company generated $18.2 billion of free cash flow. That's up over $1.5 billion year-to-year.

For the year 2013, the company expects to deliver GAAP earnings per share of at least $15.53 and operating (non-GAAP) earnings per share of at least $16.70. The 2013 operating (non-GAAP) earnings exclude $1.17 per share of charges for amortization of purchased intangible assets, other acquisition-related charges, and retirement-related items driven by changes to plan assets and liabilities primarily related to market performance. The company continues to expect an operating effective tax rate in the range of 25% for 2013.