IBM Releases Its 10-K Report

IBM(IBM Quote) investors, class is in session.

On Monday after market close, Big Blue addressed in its annual Securities and Exchange Commission 10-K filing how it recorded the sale of an optical unit and also shed more light on its earnings machinations.

Last month, the company took heat for not disclosing exactly how it factored in the $280 million it gained from the Dec. 19 sale of its transceiver unit to JDS Uniphase(JDSU Quote).

IBM explained that it put the money under intellectual property sales, to counterbalance sales and research expenses. The company argues that intellectual property sales have been regularly included in the expense line, a practice some may disagree with, positing that a one-time event shouldn't be used to pay for ongoing expenses. ...