19 

2001 

IBM

 launches a company wide initiative to improve the energy efficiency of information 

technology for enterprises and consumers and establishes a worldwide low power computing 

research effort to be coordinated at its research lab in Austin, Texas.  

Facilities

IBM

 completes the Toronto Software Laboratory in Canada, occupies Beacon Square    a four 

story office building in Boca Raton, Florida    and opens a high tech center in Boston for e 

business collaboration, design and development.  

Corporate Citizenship

IBM

's global contributions, funded through the 

IBM

 Corporation and the 

IBM

 International 

Foundation, total $127 million. In addition, employees donate more than four million hours of 

their time and contribute $51.2 million to educational institutions and nonprofit organizations in 

the United States. 

2002 

Business Performance

IBM

 revenue declines two percent from the prior year to $81.9 billion, and net income is $3.58 

billion, compared to $7.7 billion in 2001. There are 315,889 employees and 674,326 

stockholders at year's end. 

Organization

Samuel J. Palmisano is elected chief executive officer effective March 1, while remaining 

president of 

IBM

. In October he is elected chairman of the board, effective January 1, 2003. (On 

that date, Palmisano becomes chairman, president and chief executive officer of 

IBM

.) Louis V. 

Gerstner, Jr., remains 

IBM

 chairman through the end of 2002. 

IBM

 and PricewaterhouseCoopers agree in July that 

IBM

 will acquire the former's global 

business consulting and technology services unit    PwC Consulting. Under the terms of the 

agreement, 

IBM

 will pay PricewaterhouseCoopers an estimated purchase price of $3.5 billion in 

cash and stock. The transaction gives 

IBM

 an unmatched capability to help customers solve their 

business issues and to exploit world class technology for improved business performance. 

IBM

and PricewaterhouseCoopers complete 

IBM

's acquisition of PwC Consulting in October. The 

combination creates a new global business unit, 

IBM

 Business Consulting Services    comprising 

more than 30,000 

IBM

 and 30,000 transferring PwC Consulting professionals    which becomes 

part of 

IBM

 Global Services.  

In November 

IBM

 says that it will combine the Server Group and the Storage Systems Group 

into a new Systems Group, effective January 1, 2003. 

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