| Balance Sheet
IBM ended the quarter with $13.25 billion in total cash and marketable securities, compared with $11.65 billion in the sequentially preceding quarter.
At the end of 1Q11, total debt was $30.25 billion compared with $28.62 billion in the prior quarter. Global Financing debt totaled $23.7 billion versus $22.8 billion at year-end 2010, resulting in a debt-to-equity ratio of 7 to 1.
Non-global financing debt totaled $6.5 billion, an increase of $712.0 million from year-end 2010, resulting in a debt-to-capitalization ratio of 25.1% compared with 22.6% at year-end 2010.
Cash Flow
The company reported cash flow from operations (excluding Global Financing receivables) of $1.86 billion versus $2.33 billion in the previous quarter. In the reported quarter, IBM generated free cash flow of $800.0 million, down from $1.4 billion in the year-ago quarter.
Share Repurchase and Dividend
IBM returned $4.8 billion to shareholders through dividends ($0.8 billion) and share repurchases ($4.0 billion) in the quarter. At the end of 1Q11, IBM had $4.7 billion remaining under its existing buyback authorization.
Others
On April 26, 2011, IBM board approved a 15.0% increase in the quarterly cash dividend and authorized $8.0 billion for stock repurchase.
The Board of Directors declared a regular quarterly cash dividend of $0.75 per common share, payable June 10, 2011 to stockholders of record as of May 10, 2011.
The declared dividend represented an increase of $0.10, or 15.0% higher than the prior-quarter dividend of $0.65 per common share.
The Board also authorized an additional $8 billion for the company’s stock repurchase program. IBM will repurchase shares in the open market or in private transactions from time to time, depending on market conditions.
This amount is a significant addition to $4.7 billion remaining under the current repurchase program at the end of March from a prior authorization. With this new authorization, IBM will have approximately $12.7 billion for its stock repurchase program. IBM expects to request additional share repurchase authorization at the October 2011 board meeting.
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