International Business Machines Corporation announced unaudited consolidated earnings results for fourth quarter and full year ended December 31, 2014. For the quarter, the company reported total revenue of $24,113 million, income from continuing operations before income taxes of $7,094 million, income from continuing operations of $5,515 million or $5.57 per basic share, net income of $5,484 million or $5.54 per basic share, net cash from operating activities of $6,059 million compared to the total revenue of $27,385 million, income from continuing operations before income taxes of $7,102 million, income from continuing operations of $6,216 million or $5.8 per basic share, net income of $6,185 million or $5.57 per basic share, net cash from operating activities of $6,528 million for the same quarter a year ago. For the quarter, on non-GAAP basis, the company reported pre-tax income from continuing operations of $7,398 million, income from continuing operations of $5,785 million or $5.81 per diluted share, net income of $5,753 million compared to the pre-tax income from continuing operations of $7,574 million, income from continuing operations of $6,649 million or $6.16 per diluted share, net income of $6,617 million for the same quarter a year ago. The company invested $1 billion in capital expenditures, and generated $6.6 billion in free cash flow, which was up $4.4 billion quarter-to-quarter but down $1.8 billion year-to-year. Fourth-quarter operating (non-GAAP) diluted earnings from continuing operations exclude $0.27 per share of charges; $0.19 per share for the amortization of purchased intangible assets and other acquisition-related charges; and $0.08 per share for retirement-related charges driven by changes to plan assets and liabilities primarily related to market performance.

For the year, the company reported total revenue of $92,793 million, income from continuing operations before income taxes of $19,986 million, income from continuing operations of $15,751 million or $15.68 per basic share, net income of $12,022 million or $11.97 per basic share, net cash from operating activities of $16,868 million compared to the total revenue of $98,367 million, income from continuing operations before income taxes of $20,244 million, income from continuing operations of $16,881 million or $15.42 per basic share, net income of $16,483 million or $15.06 per basic share, net cash from operating activities of $17,485 million for the previous year. For the year, on non-GAAP basis, the company reported pre-tax income from continuing operations of $21,142 million, income from continuing operations of $16,702 million or $16.53 per diluted share, net income of $12,973 million compared to the pre-tax income from continuing operations of $22,110 million, income from continuing operations of $18,356 million or $16.64 per diluted share, net income of $17,959 million for the same period a year ago. The company invested almost $4 billion in capital expenditures with consistent spend throughout the year. Full year results include a non-recurring pre-tax charge of $4.7 billion, or $3.4 billion, net of tax. The charge includes an impairment to reflect fair value less estimated costs to sell the Microelectronics manufacturing business assets, which the company has classified as held for sale at December 31, 2014. The charge also includes other estimated costs related to the transaction, including cash consideration expected to be transferred to GLOBALFOUNDRIES of approximately $1.5 billion.

For 2015, the company expected operating EPS in the range of $15.75 to $16.50. And at that level of profit, expect free cash flow to be relatively flat.