International Business Machines Corporation and
Subsidiary Companies
[Audited]Note A: Significant Accounting Policies
Inventories
Raw materials, work in process and finished goods are
stated at the lower of average cost or market.
Note C: Inventories
(Dollars in millions)| At December 31: | 1996 | 1995 |
| Finished goods | $1,413 | $1,241 |
| Work in process | 4,377 | 4,990 |
| Raw materials | 80 | 92 |
| Total | $5,870 | $6,323 |
Source: IBM Annual Report, 1996, note c:
http://www.ibm.com/annualreport/1996/htmljs/FinancialReport/Notes_to_Statements/index.html
Note A: Significant Accounting Policies
Inventories
Raw materials, work in process and finished goods are stated
at the lower of average cost or net realizable value.
Note f: Inventories
(Dollars in millions)| At December 31: | 1998 | 1997 |
| Finished goods | $1,088 | $1,090 |
| Work in process and raw materials | 4,112 | 4,049 |
| Total | $5,200 | $5,139 |
Source: IBM Annual Report, 1998, note f:
http://www.ibm.com/annualreport/1998/notes/ibm98arno_a.html
Note the changes in the footnotes between the two years.