Feeds

IBM finds misconduct, earnings abroad

Puts nerds to work

  • alert
  • submit to reddit

Boost IT visibility and business value

The accountants at IBM had a busy week, restating earnings from 2004 and proposing changes to future results to take advantage of US tax laws relating to income earned overseas.

IBM recently figured out that employees in Japan had incorrectly recorded the sales of third-party hardware. The company refused to provide exact details on this situation but did say that the snafu would force it to lower 2004 revenue by $260m. The mistakes occurred in IBM's massive services unit, which brought in close to $50bn last year.

"[I]t was determined that certain IBM Japan employees acted improperly and inconsistently with IBM’s policies and practices," IBM said in a filing with the US Securities and Exchange Commission. IBM declined to elaborate on what happened to the IBM Japan employees as a result of their actions, although it said some disciplinary measures had been doled out.

In the same SEC filing, IBM revealed that it's looking to repatriate up to $8bn in earnings pulled in by overseas operations. A US tax law has provided companies with one year to bring home profits generated abroad at a lower tax rate.

IBM expects to take a charge of $550m from this move and is waiting on board approval before it says what quarter the charge will affect. ®

Related stories

How Dell made North Carolina beg for business
Reg readers stick it to big tech
One in three IT workers is Bill's

Best practices for enterprise data

More from The Register

next story
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?