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Using this copy of Kohl?s MS Excel Financial Analysis workbook, complete the ?OCF & FCF Analyses? and ?RNOA & ROCE Analysis? worksheets

Note: Use care not to delete, hide or reorder workbook tabs (worksheets Week 3 Analysis Adjustments Assignment Grading Rubric The facilitator will grade this assignment, assigning up to 100 points for it, as follows: Financial statements analysis adjustments are properly identified from the Annual Report on Form 10-K and the supporting analysis, computations, and presentation is complete, correct, concise, and clear: Type of Analysis Adjustment Operating Lease Commitments Financial Elements of Pension Costs Maximum Earned Worksheet Tab Label: 40 Oper Lease Adjust 5 - - Pension Cost Analysis Adjust Inventory Cost-Flow Assumption 20 Invent Cost-Flow Analysis Adj Noncancellable Commitments 20 Noncancel Commit Analysis Adj - - Guar Uncons Debt Analysis Adj Guaranteed Unconsolidated Debt Capitalized Interest 20 Capitalized Interest Analysis Adj Impairment or Restructuring Charges - - Impair, Restruct Analysis Adj Early Retirement, Restructuring Debt - - Debt Restruct Analysis Adj Gains on Investments or PP&E - - Sales Invest, PP&E Analysis Adj Total points 100 - r workbook tabs (worksheets) in this workbook. INPUT US dollar amounts IN 2009 Audited Analysis Adjustment (See explanations below) balance (A) (B) (C) (D) (E) (F) (G) (H) Assets Current assets Cash and cash equivalents $ 2,267 Investment securities AFS - AR, gross - Less: Allowance for bad debts - AR, net - Inventories, at FIFO DIT assets-current Other current assets Total current assets - 222 - - - - 869 - - - - - - - - - - - - - - - - - - - 869 PP&E, at cost 12,119 6,143 Less: Accumulated depreciation of PP&E (3,613) 8,506 Goodwill, net impairment write-downs - Other intangibles, net amort., impairment - DIT assets-noncurrent - Total assets - 73 - Other noncurrent assets - 2,923 5,485 PP&E, net - 6,143 474 $ 14,465 197 6,143 1,066 INPUT US dollar amounts IN 2009 Audited Analysis Adjustment (See explanations below) balance (A) (B) (C) (D) (E) (F) (G) (H) Liabilities and stockholders' equity Current liabilities AP Accrued liabilities Income taxes payable DIT liabilities-current Capital lease obligation-current portion $ 1,188 1,005 184 78 Bonds-current portion - Notes and loans payable-current - Other current liabilities - Total current liabilities 2,455 Notes and loans payable-noncurrent 1,894 Capital lease obligation-noncurrent 1,968 141 869 141 869 - - - - - - 6,002 Bonds, net discount [or, plus premium] DIT liabilities-noncurrent 214 Other noncurrent liabilities 339 197 Total noncurrent liabilities 4,415 6,002 197 - - - - - - Total liabilities 6,870 6,143 1,066 - - - - - - 7,595 - - - - - - - - Total liabilities and stockholders' equity $ 14,465 6,143 1,066 - - - - - - CHECK: A - (L + E) (S/B -0-) - - - - - - - - - Preferred (or preference) stock Premium on preferred stock Common stock (par or stated value) Additional paid-in capital (APIC) Less: Treasury stock Unearned stock-based compensation Retained earnings Noncontrolling interest in consolid subsid Accum other comprehensive income (loss) Total stockholders' equity 4 2,085 (2,639) 8,181 (36) Explanations for Analysis Adjustments (A) Capitalize operating lease commitments (see income statement for related adjustments) (B) Recognize obligations under noncancellable, fixed-price vendor supply and other agreements (C) Recognize guaranteed debt of unconsolidated affiliated entities and related assets (D) Recognize undeclared prior-year dividends on cumulative preferred stock (E) Adjust LIFO-basis inventory for "LIFO reserve" (NO related income statement adjustment needed) (F) See income statement for adjustments to reclassify financial elements of DB pension and OPEB expense (G) See income statement for adjustment to recognize capitalized interest as financial expense (H) See income statement for adjustment to recast or eliminate asset impairment and restructuring charges 2009 INPUT US dollar amounts IN Adjusted balance Assets Current assets Cash and cash equivalents $ 2,267 Investment securities AFS - AR, gross - Less: Allowance for bad debts - AR, net - Inventories, at FIFO DIT assets-current 2,923 73 Other current assets 1,091 Total current assets 6,354 PP&E, at cost 18,262 Less: Accumulated depreciation of PP&E (3,613) PP&E, net 14,649 Goodwill, net impairment write-downs - Other intangibles, net amort., impairment - DIT assets-noncurrent - Other noncurrent assets Total assets 671 $ 21,674 2009 INPUT US dollar amounts IN Adjusted balance Liabilities and stockholders' equity Current liabilities AP Accrued liabilities Income taxes payable DIT liabilities-current Capital lease obligation-current portion $ 1,188 1,005 184 219 Bonds-current portion - Notes and loans payable-current - Other current liabilities 869 Total current liabilities 3,465 Notes and loans payable-noncurrent 1,894 Capital lease obligation-noncurrent 7,970 Bonds, net discount [or, plus premium] - DIT liabilities-noncurrent 214 Other noncurrent liabilities 536 Total noncurrent liabilities 10,614 Total liabilities 14,079 Preferred (or preference) stock - Premium on preferred stock - Common stock (par or stated value) 4 Additional paid-in capital (APIC) Less: Treasury stock Unearned stock-based compensation Retained earnings Noncontrolling interest in consolid subsid Accum other comprehensive income (loss) Total stockholders' equity 2,085 (2,639) 8,181 (36) 7,595 Total liabilities and stockholders' equity $ 21,674 CHECK: A - (L + E) (S/B -0-) - Explanations for Analysis Adjustments (A) Capitalize operating lease commitments (see income statement for related adjustments) (B) Recognize obligations under noncancellable, fixed-price vendor supply and other agreements (C) Recognize guaranteed debt of unconsolidated affiliated entities and related assets (D) Recognize undeclared prior-year dividends on cumulative preferred stock (E) Adjust LIFO-basis inventory for "LIFO reserve" (NO related income statement adjustment needed) (F) See income statement for adjustments to reclassify financial elements of DB pension and OPEB exp (G) See income statement for adjustment to recognize capitalized interest as financial expense (H) See income statement for adjustment to recast or eliminate asset impairment and restructuring c INPUT US dollar amounts IN 2010 Audited Analysis Adjustment (See explanations below) balance (A) (B) (C) (D) (E) (F) (G) (H) Assets Current assets Cash and cash equivalents $ 2,277 Investment securities AFS - AR, gross - Less: Allowance for bad debts - AR, net - Inventories, at FIFO DIT assets-current Other current assets Total current assets - 252 - - - - 1,095 - - - - - - - - - - - - - - - - - - - 1,095 PP&E, at cost 12,895 3,344 Less: Accumulated depreciation of PP&E (4,203) 8,692 Goodwill, net impairment write-downs - Other intangibles, net amort., impairment - DIT assets-noncurrent - Total assets - 77 - Other noncurrent assets - 3,036 5,642 PP&E, net - 3,344 515 $ 14,849 382 3,344 1,476 INPUT US dollar amounts IN 2010 Audited Analysis Adjustment (See explanations below) balance (A) (B) (C) (D) (E) (F) (G) (H) Liabilities and stockholders' equity Current liabilities AP Accrued liabilities Income taxes payable DIT liabilities-current Capital lease obligation-current portion Bonds-current portion Notes and loans payable-current Other current liabilities $ 1,138 1,030 127 86 49 400 - Total current liabilities 2,781 Notes and loans payable-noncurrent 1,494 Capital lease obligation-noncurrent 2,018 1,095 49 1,095 - - - - - - 3,295 Bonds, net discount [or, plus premium] DIT liabilities-noncurrent 256 Other noncurrent liabilities 450 382 Total noncurrent liabilities 4,218 3,295 382 - - - - - - Total liabilities 6,999 3,344 1,476 - - - - - - 7,850 - - - - - - - - Total liabilities and stockholders' equity $ 14,849 3,344 1,476 - - - - - - CHECK: A - (L + E) (S/B -0-) - - - - - - - - - Preferred (or preference) stock Premium on preferred stock Common stock (par or stated value) Additional paid-in capital (APIC) Less: Treasury stock Unearned stock-based compensation Retained earnings Noncontrolling interest in consolid subsid Accum other comprehensive income (loss) Total stockholders' equity 4 2,225 (3,643) 9,301 (37) Explanations for Analysis Adjustments (A) Capitalize operating lease commitments (see income statement for related adjustments) (B) Recognize obligations under noncancellable, fixed-price vendor supply and other agreements (C) Recognize guaranteed debt of unconsolidated affiliated entities and related assets (D) Recognize undeclared prior-year dividends on cumulative preferred stock (E) Adjust LIFO-basis inventory for "LIFO reserve" (NO related income statement adjustment needed) (F) See income statement for adjustments to reclassify financial elements of DB pension and OPEB expense (G) See income statement for adjustment to recognize capitalized interest as financial expense (H) See income statement for adjustment to recast or eliminate asset impairment and restructuring charges 2010 INPUT US dollar amounts IN Adjusted balance Assets Current assets Cash and cash equivalents $ 2,277 Investment securities AFS - AR, gross - Less: Allowance for bad debts - AR, net - Inventories, at FIFO DIT assets-current 3,036 77 Other current assets 1,347 Total current assets 6,737 PP&E, at cost 16,239 Less: Accumulated depreciation of PP&E (4,203) PP&E, net 12,036 Goodwill, net impairment write-downs - Other intangibles, net amort., impairment - DIT assets-noncurrent - Other noncurrent assets Total assets 897 $ 19,669 2010 INPUT US dollar amounts IN Adjusted balance Liabilities and stockholders' equity Current liabilities AP Accrued liabilities Income taxes payable DIT liabilities-current Capital lease obligation-current portion Bonds-current portion Notes and loans payable-current $ 1,138 1,030 127 135 400 Other current liabilities 1,095 Total current liabilities 3,925 Notes and loans payable-noncurrent 1,494 Capital lease obligation-noncurrent 5,313 Bonds, net discount [or, plus premium] - DIT liabilities-noncurrent 256 Other noncurrent liabilities 832 Total noncurrent liabilities Total liabilities 7,895 11,819 Preferred (or preference) stock - Premium on preferred stock - Common stock (par or stated value) 4 Additional paid-in capital (APIC) Less: Treasury stock Unearned stock-based compensation Retained earnings Noncontrolling interest in consolid subsid Accum other comprehensive income (loss) Total stockholders' equity 2,225 (3,643) 9,301 (37) 7,850 Total liabilities and stockholders' equity $ 19,669 CHECK: A - (L + E) (S/B -0-) - Explanations for Analysis Adjustments (A) Capitalize operating lease commitments (see income statement for related adjustments) (B) Recognize obligations under noncancellable, fixed-price vendor supply and other agreements (C) Recognize guaranteed debt of unconsolidated affiliated entities and related assets (D) Recognize undeclared prior-year dividends on cumulative preferred stock (E) Adjust LIFO-basis inventory for "LIFO reserve" (NO related income statement adjustment needed) (F) See income statement for adjustments to reclassify financial elements of DB pension and OPEB exp (G) See income statement for adjustment to recognize capitalized interest as financial expense (H) See income statement for adjustment to recast or eliminate asset impairment and restructuring c INPUT US dollar amounts IN 2011 Audited Analysis Adjustment (See explanations below) balance (A) (B) (C) (D) (E) (F) (G) (H) Assets Current assets Cash and cash equivalents $ 1,205 Investment securities AFS - AR, gross - Less: Allowance for bad debts - AR, net - Inventories, at FIFO 109 Other current assets 299 - PP&E, at cost 13,462 3,315 Less: Accumulated depreciation of PP&E (4,557) 8,905 Goodwill, net impairment write-downs - Other intangibles, net amort., impairment - DIT assets-noncurrent - Other noncurrent assets Total assets - - - - - - 1,000 - - - - - - - - - - - - - - - - - - - 1,000 4,829 PP&E, net - 3,216 DIT assets-current Total current assets - 3,315 414 $ 14,148 696 3,315 1,696 INPUT US dollar amounts IN 2011 Audited Analysis Adjustment (See explanations below) balance (A) (B) (C) (D) (E) (F) (G) (H) Liabilities and stockholders' equity Current liabilities AP Accrued liabilities Income taxes payable DIT liabilities-current Capital lease obligation-current portion $ 1,233 1,147 133 94 Bonds-current portion - Notes and loans payable-current - Other current liabilities - Total current liabilities 2,607 Notes and loans payable-noncurrent 2,141 Capital lease obligation-noncurrent 2,009 53 1,000 53 1,000 - - - - - - 3,262 Bonds, net discount [or, plus premium] DIT liabilities-noncurrent 423 Other noncurrent liabilities 460 696 Total noncurrent liabilities 5,033 3,262 696 - - - - - - Total liabilities 7,640 3,315 1,696 - - - - - - 6,508 - - - - - - - - Total liabilities and stockholders' equity $ 14,148 3,315 1,696 - - - - - - CHECK: A - (L + E) (S/B -0-) - - - - - - - - - Preferred (or preference) stock Premium on preferred stock Common stock (par or stated value) Additional paid-in capital (APIC) Less: Treasury stock Unearned stock-based compensation Retained earnings Noncontrolling interest in consolid subsid Accum other comprehensive income (loss) Total stockholders' equity 4 2,339 (5,977) 10,195 (53) Explanations for Analysis Adjustments (A) Capitalize operating lease commitments (see income statement for related adjustments) (B) Recognize obligations under noncancellable, fixed-price vendor supply and other agreements (C) Recognize guaranteed debt of unconsolidated affiliated entities and related assets (D) Recognize undeclared prior-year dividends on cumulative preferred stock (E) Adjust LIFO-basis inventory for "LIFO reserve" (NO related income statement adjustment needed) (F) See income statement for adjustments to reclassify financial elements of DB pension and OPEB expense (G) See income statement for adjustment to recognize capitalized interest as financial expense (H) See income statement for adjustment to recast or eliminate asset impairment and restructuring charges 2011 INPUT US dollar amounts IN Adjusted balance Assets Current assets Cash and cash equivalents $ 1,205 Investment securities AFS - AR, gross - Less: Allowance for bad debts - AR, net - Inventories, at FIFO DIT assets-current 3,216 109 Other current assets 1,299 Total current assets 5,829 PP&E, at cost 16,777 Less: Accumulated depreciation of PP&E (4,557) PP&E, net 12,220 Goodwill, net impairment write-downs - Other intangibles, net amort., impairment - DIT assets-noncurrent - Other noncurrent assets Total assets 1,110 $ 19,159 2011 INPUT US dollar amounts IN Adjusted balance Liabilities and stockholders' equity Current liabilities AP Accrued liabilities Income taxes payable DIT liabilities-current Capital lease obligation-current portion $ 1,233 1,147 133 147 Bonds-current portion - Notes and loans payable-current - Other current liabilities 1,000 Total current liabilities 3,660 Notes and loans payable-noncurrent 2,141 Capital lease obligation-noncurrent 5,271 Bonds, net discount [or, plus premium] DIT liabilities-noncurrent 423 Other noncurrent liabilities 1,156 Total noncurrent liabilities 8,991 Total liabilities 12,651 Preferred (or preference) stock - Premium on preferred stock - Common stock (par or stated value) 4 Additional paid-in capital (APIC) Less: Treasury stock Unearned stock-based compensation Retained earnings Noncontrolling interest in consolid subsid Accum other comprehensive income (loss) Total stockholders' equity 2,339 (5,977) 10,195 (53) 6,508 Total liabilities and stockholders' equity $ 19,159 CHECK: A - (L + E) (S/B -0-) - Explanations for Analysis Adjustments (A) Capitalize operating lease commitments (see income statement for related adjustments) (B) Recognize obligations under noncancellable, fixed-price vendor supply and other agreements (C) Recognize guaranteed debt of unconsolidated affiliated entities and related assets (D) Recognize undeclared prior-year dividends on cumulative preferred stock (E) Adjust LIFO-basis inventory for "LIFO reserve" (NO related income statement adjustment needed) (F) See income statement for adjustments to reclassify financial elements of DB pension and OPEB exp (G) See income statement for adjustment to recognize capitalized interest as financial expense (H) See income statement for adjustment to recast or eliminate asset impairment and restructuring c INPUT US dollar amounts IN 2012 Audited Analysis Adjustment (See explanations below) balance (A) (B) (C) (D) (E) (F) (G) (H) Assets Current assets Cash and cash equivalents $ 537 Investment securities AFS - AR, gross - Less: Allowance for bad debts - AR, net - Inventories, at FIFO 122 Other current assets 312 - PP&E, at cost 13,980 3,354 Less: Accumulated depreciation of PP&E (5,108) 8,872 Goodwill, net impairment write-downs - Other intangibles, net amort., impairment - DIT assets-noncurrent - Other noncurrent assets Total assets - - - - - - 1,253 - - - - - - - - - - - - - - - - - - - 1,253 4,719 PP&E, net - 3,748 DIT assets-current Total current assets - 3,354 314 $ 13,905 594 3,354 1,847 INPUT US dollar amounts IN 2012 Audited Analysis Adjustment (See explanations below) balance (A) (B) (C) (D) (E) (F) (G) (H) Liabilities and stockholders' equity Current liabilities AP $ 1,307 Accrued liabilities 986 Income taxes payable 137 DIT liabilities-current Capital lease obligation-current portion 105 Bonds-current portion - Notes and loans payable-current - Other current liabilities - Total current liabilities 2,535 Notes and loans payable-noncurrent 2,492 Capital lease obligation-noncurrent 1,956 Bonds, net discount [or, plus premium] 59 1,253 59 1,253 - - - - - - 3,295 - DIT liabilities-noncurrent 362 Other noncurrent liabilities 512 594 Total noncurrent liabilities 5,322 3,295 594 - - - - - - Total liabilities 7,857 3,354 1,847 - - - - - - 6,048 - - - - - - - - Total liabilities and stockholders' equity $ 13,905 3,354 1,847 - - - - - - CHECK: A - (L + E) (S/B -0-) - - - - - - - - - Preferred (or preference) stock - Premium on preferred stock - Common stock (par or stated value) 4 Additional paid-in capital (APIC) Less: Treasury stock Unearned stock-based compensation Retained earnings Noncontrolling interest in consolid subsid Accum other comprehensive income (loss) Total stockholders' equity 2,454 (7,243) 10,878 (45) Explanations for Analysis Adjustments (A) Capitalize operating lease commitments (see income statement for related adjustments) (B) Recognize obligations under noncancellable, fixed-price vendor supply and other agreements (C) Recognize guaranteed debt of unconsolidated affiliated entities and related assets (D) Recognize undeclared prior-year dividends on cumulative preferred stock (E) Adjust LIFO-basis inventory for "LIFO reserve" (NO related income statement adjustment needed) (F) See income statement for adjustments to reclassify financial elements of DB pension and OPEB expense (G) See income statement for adjustment to recognize capitalized interest as financial expense (H) See income statement for adjustment to recast or eliminate asset impairment and restructuring charges 2012 INPUT US dollar amounts IN Adjusted balance Assets Current assets Cash and cash equivalents $ 537 Investment securities AFS - AR, gross - Less: Allowance for bad debts - AR, net - Inventories, at FIFO DIT assets-current 3,748 122 Other current assets 1,565 Total current assets 5,972 PP&E, at cost 17,334 Less: Accumulated depreciation of PP&E (5,108) PP&E, net 12,226 Goodwill, net impairment write-downs - Other intangibles, net amort., impairment - DIT assets-noncurrent - Other noncurrent assets Total assets 908 $ 19,106 2012 INPUT US dollar amounts IN Adjusted balance Liabilities and stockholders' equity Current liabilities AP $ 1,307 Accrued liabilities 986 Income taxes payable 137 DIT liabilities-current Capital lease obligation-current portion 164 Bonds-current portion - Notes and loans payable-current - Other current liabilities 1,253 Total current liabilities 3,847 Notes and loans payable-noncurrent 2,492 Capital lease obligation-noncurrent 5,251 Bonds, net discount [or, plus premium] DIT liabilities-noncurrent 362 Other noncurrent liabilities 1,106 Total noncurrent liabilities 9,211 Total liabilities 13,058 Preferred (or preference) stock - Premium on preferred stock - Common stock (par or stated value) 4 Additional paid-in capital (APIC) Less: Treasury stock Unearned stock-based compensation Retained earnings Noncontrolling interest in consolid subsid Accum other comprehensive income (loss) Total stockholders' equity 2,454 (7,243) 10,878 (45) 6,048 Total liabilities and stockholders' equity $ 19,106 CHECK: A - (L + E) (S/B -0-) - Explanations for Analysis Adjustments (A) Capitalize operating lease commitments (see income statement for related adjustments) (B) Recognize obligations under noncancellable, fixed-price vendor supply and other agreements (C) Recognize guaranteed debt of unconsolidated affiliated entities and related assets (D) Recognize undeclared prior-year dividends on cumulative preferred stock (E) Adjust LIFO-basis inventory for "LIFO reserve" (NO related income statement adjustment needed) (F) See income statement for adjustments to reclassify financial elements of DB pension and OPEB exp (G) See income statement for adjustment to recognize capitalized interest as financial expense (H) See income statement for adjustment to recast or eliminate asset impairment and restructuring c INPUT US dollar amounts IN 2013 Audited Analysis Adjustment (See explanations below) balance (A) (B) (C) (D) (E) (F) (G) (H) Assets Current assets Cash and cash equivalents $ 971 Investment securities AFS - AR, gross - Less: Allowance for bad debts - AR, net - Inventories, at FIFO 142 Other current assets 305 - PP&E, at cost 14,124 3,264 Less: Accumulated depreciation of PP&E (5,379) 8,745 Goodwill, net impairment write-downs - Other intangibles, net amort., impairment - DIT assets-noncurrent - Other noncurrent assets Total assets - - - - - - 1,248 - - - - - - - - - - - - - - - - - - - 1,248 5,292 PP&E, net - 3,874 DIT assets-current Total current assets - 3,264 341 $ 14,378 522 3,264 1,770 INPUT US dollar amounts IN 2013 Audited Analysis Adjustment (See explanations below) balance (A) (B) (C) (D) (E) (F) (G) (H) Liabilities and stockholders' equity Current liabilities AP Accrued liabilities Income taxes payable DIT liabilities-current Capital lease obligation-current portion $ 1,365 1,138 94 139 Bonds-current portion - Notes and loans payable-current - Other current liabilities - Total current liabilities 2,736 Notes and loans payable-noncurrent 2,792 Capital lease obligation-noncurrent 1,930 Bonds, net discount [or, plus premium] 65 1,248 65 1,248 - - - - - - 3,199 - DIT liabilities-noncurrent 382 Other noncurrent liabilities 560 522 Total noncurrent liabilities 5,664 3,199 522 - - - - - - Total liabilities 8,400 3,264 1,770 - - - - - - 5,978 - - - - - - - - Total liabilities and stockholders' equity $ 14,378 3,264 1,770 - - - - - - CHECK: A - (L + E) (S/B -0-) - - - - - - - - - Preferred (or preference) stock - Premium on preferred stock - Common stock (par or stated value) 4 Additional paid-in capital (APIC) Less: Treasury stock Unearned stock-based compensation Retained earnings Noncontrolling interest in consolid subsid Accum other comprehensive income (loss) Total stockholders' equity 2,598 (8,052) 11,462 (34) Explanations for Analysis Adjustments (A) Capitalize operating lease commitments (see income statement for related adjustments) (B) Recognize obligations under noncancellable, fixed-price vendor supply and other agreements (C) Recognize guaranteed debt of unconsolidated affiliated entities and related assets (D) Recognize undeclared prior-year dividends on cumulative preferred stock (E) Adjust LIFO-basis inventory for "LIFO reserve" (NO related income statement adjustment needed) (F) See income statement for adjustments to reclassify financial elements of DB pension and OPEB expense (G) See income statement for adjustment to recognize capitalized interest as financial expense (H) See income statement for adjustment to recast or eliminate asset impairment and restructuring charges 2013 INPUT US dollar amounts IN Adjusted balance Assets Current assets Cash and cash equivalents $ 971 Investment securities AFS - AR, gross - Less: Allowance for bad debts - AR, net - Inventories, at FIFO DIT assets-current 3,874 142 Other current assets 1,553 Total current assets 6,540 PP&E, at cost 17,388 Less: Accumulated depreciation of PP&E (5,379) PP&E, net 12,009 Goodwill, net impairment write-downs - Other intangibles, net amort., impairment - DIT assets-noncurrent - Other noncurrent assets Total assets 863 $ 19,412 2013 INPUT US dollar amounts IN Adjusted balance Liabilities and stockholders' equity Current liabilities AP Accrued liabilities Income taxes payable DIT liabilities-current Capital lease obligation-current portion $ 1,365 1,138 94 204 Bonds-current portion - Notes and loans payable-current - Other current liabilities 1,248 Total current liabilities 4,049 Notes and loans payable-noncurrent 2,792 Capital lease obligation-noncurrent 5,129 Bonds, net discount [or, plus premium] DIT liabilities-noncurrent 382 Other noncurrent liabilities 1,082 Total noncurrent liabilities 9,385 Total liabilities 13,434 Preferred (or preference) stock - Premium on preferred stock - Common stock (par or stated value) 4 Additional paid-in capital (APIC) Less: Treasury stock Unearned stock-based compensation Retained earnings Noncontrolling interest in consolid subsid Accum other comprehensive income (loss) Total stockholders' equity 2,598 (8,052) 11,462 (34) 5,978 Total liabilities and stockholders' equity $ 19,412 CHECK: A - (L + E) (S/B -0-) - Explanations for Analysis Adjustments (A) Capitalize operating lease commitments (see income statement for related adjustments) (B) Recognize obligations under noncancellable, fixed-price vendor supply and other agreements (C) Recognize guaranteed debt of unconsolidated affiliated entities and related assets (D) Recognize undeclared prior-year dividends on cumulative preferred stock (E) Adjust LIFO-basis inventory for "LIFO reserve" (NO related income statement adjustment needed) (F) See income statement for adjustments to reclassify financial elements of DB pension and OPEB exp (G) See income statement for adjustment to recognize capitalized interest as financial expense (H) See income statement for adjustment to recast or eliminate asset impairment and restructuring c INPUT US dollar amounts IN Adjusted balances (used for financial analysis) 2009 2010 2011 2012 2013 Assets Current assets Cash and cash equivalents $ 2,267 $ 2,277 $ 1,205 $ 537 $ 971 Investment securities AFS - - - - - AR, gross - - - - - Less: Allowance for bad debts - - - - - AR, net - - - - - 2,923 3,036 3,216 3,748 3,874 73 77 109 122 142 Other current assets 1,091 1,347 1,299 1,565 1,553 Total current assets 6,354 6,737 5,829 5,972 6,540 PP&E, at cost 18,262 16,239 16,777 17,334 17,388 Less: Accumulated depreciation of PP&E (3,613) (4,203) (4,557) (5,108) (5,379) PP&E, net 14,649 12,036 12,220 12,226 12,009 Goodwill, net impairment write-downs - - - - - Other intangibles, net amort., impairment - - - - - DIT assets-noncurrent - - - - - 671 897 1,110 908 863 Inventories, at FIFO DIT assets-current Other noncurrent assets Total assets $ 21,674 $ 19,669 $ 19,159 $ 19,106 $ 19,412 INPUT US dollar amounts IN Adjusted balances (used for financial analysis) 2009 2010 2011 2012 2013 Liabilities and stockholders' equity Current liabilities AP 1,188 $ 1,138 $ 1,233 $ 1,005 1,030 1,147 986 1,138 184 127 133 137 94 - - - - - 219 135 147 164 204 Bonds-current portion - - - - - Notes and loans payable-current - 400 - - - 869 1,095 1,000 1,253 1,248 Total current liabilities 3,465 3,925 3,660 3,847 4,049 Notes and loans payable-noncurrent 1,894 1,494 2,141 2,492 2,792 Capital lease obligation-noncurrent 7,970 5,313 5,271 5,251 5,129 - - - - - DIT liabilities-noncurrent 214 256 423 362 382 Other noncurrent liabilities 536 832 1,156 1,106 1,082 Total noncurrent liabilities 10,614 7,895 8,991 9,211 9,385 Total liabilities 14,079 - 11,819 - 12,651 - 13,058 - 13,434 - Premium on preferred stock - - - - - Common stock (par or stated value) 4 4 4 4 4 2,085 2,225 2,339 2,454 2,598 (2,639) (3,643) (5,977) (7,243) (8,052) - - - - - 8,181 9,301 10,195 10,878 11,462 - - - - - (36) (37) (53) (45) (34) 7,595 7,850 6,508 6,048 5,978 Total liabilities and stockholders' equity 21,674 19,669 19,159 19,106 19,412 CHECK: A - (L + E) (S/B -0-) - - - - - Accrued liabilities Income taxes payable DIT liabilities-current Capital lease obligation-current portion Other current liabilities Bonds, net discount [or, plus premium] Preferred (or preference) stock Additional paid-in capital (APIC) Less: Treasury stock Unearned stock-based compensation Retained earnings Noncontrolling interest in consolid subsid Accum other comprehensive income (loss) Total stockholders' equity $ 1,307 $ 1,365 Explanations for Analysis Adjustments (A) Capitalize operating lease commitments (see income statement for related adjustments) (B) Recognize obligations under noncancellable, fixed-price vendor supply and other agreements (C) Recognize guaranteed debt of unconsolidated affiliated entities and related assets (D) Recognize undeclared prior-year dividends on cumulative preferred stock (E) Adjust LIFO-basis inventory for "LIFO reserve" (NO related income statement adjustment needed) (F) See income statement for adjustments to reclassify financial elements of DB pension and OPEB expense (G) See income statement for adjustment to recognize capitalized interest as financial expense (H) See income statement for adjustment to recast or eliminate asset impairment and restructuring charges INPUT US dollar amounts IN 2009 Audited Analysis Adjustment (See explanations below) balance Sales, net returns and allowances (A) (B) (C) (D) (E) (F) (G) (H) $ 17,178 COS using FIFO 10,680 Gross profit 124 6,498 - 3,105 (444) - - - (124) - - - Operating expenses SG&A expenses (excl D&A and advertising) R&D expense - Advertising expense 846 D&A 688 Other operating expenses (income) 305 - Total operating expenses 4,639 (139) - - - - - - - Operating income 1,859 139 - - - (124) - - - (301) (336) (301) (336) - - - - - (5) - 1,558 (197) - - - (124) - (5) - Taxes on income from continuing operations 585 (74) - - - (47) Income from contin oper incl noncontrol int's 973 (123) - - - (77) - (3) - - - - - - - - - (123) - - - (77) - (3) - Other income (expense) Interest expense, net of interest income (5) Gain (loss) on spin-off of subsidiary Gain (loss) on debt restruct/early extinguish Gain (loss) on disposal of invest sec's AFS Gain (loss) on disposal of PP&E Impairment loss on PP&E Impairment loss on goodwill Impairment of other intangibles Restructuring charge Total other income (expense) Income from cont. oper's before taxes Less: Income attrib to noncontrol interests Income from continuing operations 973 (2) Gain (loss) on discont'd oper's, net of tax Disr Income before extraordinary items 973 Disr Extraordinary gain (loss), net of tax Net income Disr $ 973 $ 1,558 (197) - - - (124) - (5) - (301) (336) - - - - - (5) - 1,859 139 - - - (124) - - - Disr Before-tax amounts from above: Income from cont. oper's before taxes Interest expense, net Operating profit before income taxes $ Explanations for Analysis Adjustments (A) Capitalize operating lease commitments (see balance sheet for related adjustments) (B) See balance sheet for adjustment to recognize oblig's under noncancellable, fixed-price vendor supply agreements (C) See balance sheet for adjustment to recognize guaranteed debt of unconsolidated affiliated entities (D) See balance sheet for adjustment to recognize undeclared prior-year dividends on cumulative preferred stock (E) Adjust FIFO-basis COS for "inflation (holding) profits" (NO balance sheet adjustment needed) (F) Reclassify financial elements of DB pension and OPEB expense (NO balance sheet adjustment needed) (G) Recognize capitalized interest as financial expense (NO balance sheet adjustment needed) (H) Recast or eliminate asset impairment and restructuring charges, nonoperating gains and losses (NO balance sheet adjustment needed) (No tax effect included on analysis adjustments to spin-off gain, goodwill impairment loss, or other intangible asset impairment loss) 2009 INPUT US dollar amounts IN Adjusted balance Sales, net returns and allowances $ 17,178 COS using FIFO 10,804 Gross profit 6,374 Operating expenses SG&A expenses (excl D&A and advertising) 2,661 R&D expense - Advertising expense 846 D&A 993 Other operating expenses (income) - Total operating expenses 4,500 Operating income 1,874 Other income (expense) Interest expense, net of interest income (642) Gain (loss) on spin-off of subsidiary - Gain (loss) on debt restruct/early extinguish - Gain (loss) on disposal of invest sec's AFS - Gain (loss) on disposal of PP&E - Impairment loss on PP&E - Impairment loss on goodwill - Impairment of other intangibles - Restructuring charge - Total other income (expense) (642) Income from cont. oper's before taxes 1,232 Taxes on income from continuing operations 462 Income from contin oper incl noncontrol int's 770 Less: Income attrib to noncontrol interests Income from continuing operations $ 770 Gain (loss) on discont'd oper's, net of tax Disregard Income before extraordinary items Disregard Extraordinary gain (loss), net of tax Disregard Net income Disregard Before-tax amounts from above: Income from cont. oper's before taxes $ Interest expense, net Operating profit before income taxes 1,232 (642) $ 1,874 Explanations for Analysis Adjustments (A) Capitalize operating lease commitments (see balance sheet for related adjustments) (B) See balance sheet for adjustment to recognize oblig's under noncancellable, fixed-price vendor sup (C) See balance sheet for adjustment to recognize guaranteed debt of unconsolidated affiliated entitie (D) See balance sheet for adjustment to recognize undeclared prior-year dividends on cumulative pre (E) Adjust FIFO-basis COS for "inflation (holding) profits" (NO balance sheet adjustment needed) (F) Reclassify financial elements of DB pension and OPEB expense (NO balance sheet adjustment nee (G) Recognize capitalized interest as financial expense (NO balance sheet adjustment needed) estructuring charges, nonoperating gains and (H) losses Recast (NOor balance eliminate sheet asset adjustment impairment needed) and restructuring charges, nonoperating gains and losse (No tax effect included on analysis adjustments to spin-off gain, goodwill impairment loss, or other intan INPUT US dollar amounts IN 2010 Audited Analysis Adjustment (See explanations below) balance Sales, net returns and allowances (A) (B) (C) (D) (E) (F) (G) (H) $ 18,391 COS using FIFO 11,359 Gross profit 96 7,032 - 3,321 (479) - - - (96) - - - Operating expenses SG&A expenses (excl D&A and advertising) R&D expense - Advertising expense 869 D&A 750 Other operating expenses (income) 307 - Total operating expenses 4,940 (172) - - - - - - - Operating income 2,092 172 - - - (96) - - - (304) (338) (304) (338) - - - - - (6) - 1,788 (166) - - - (96) - (6) - Taxes on income from continuing operations 668 (62) - - - (36) Income from contin oper incl noncontrol int's 1,120 (104) - - - (60) - (4) - - - - - - - - - (104) - - - (60) - (4) - Other income (expense) Interest expense, net of interest income (6) Gain (loss) on spin-off of subsidiary Gain (loss) on debt restruct/early extinguish Gain (loss) on disposal of invest sec's AFS Gain (loss) on disposal of PP&E Impairment loss on PP&E Impairment loss on goodwill Impairment of other intangibles Restructuring charge Total other income (expense) Income from cont. oper's before taxes Less: Income attrib to noncontrol interests Income from continuing operations 1,120 (2) Gain (loss) on discont'd oper's, net of tax Disr Income before extraordinary items 1,120 Disr Extraordinary gain (loss), net of tax Net income Disr $ 1,120 $ 1,788 (166) - - - (96) - (6) - (304) (338) - - - - - (6) - 2,092 172 - - - (96) - - - Disr Before-tax amounts from above: Income from cont. oper's before taxes Interest expense, net Operating profit before income taxes $ Explanations for Analysis Adjustments (A) Capitalize operating lease commitments (see balance sheet for related adjustments) (B) See balance sheet for adjustment to recognize oblig's under noncancellable, fixed-price vendor supply agreements (C) See balance sheet for adjustment to recognize guaranteed debt of unconsolidated affiliated entities (D) See balance sheet for adjustment to recognize undeclared prior-year dividends on cumulative preferred stock (E) Adjust FIFO-basis COS for "inflation (holding) profits" (NO balance sheet adjustment needed) (F) Reclassify financial elements of DB pension and OPEB expense (NO balance sheet adjustment needed) (G) Recognize capitalized interest as financial expense (NO balance sheet adjustment needed) (H) Recast or eliminate asset impairment and restructuring charges, nonoperating gains and losses (NO balance sheet adjustment needed) (No tax effect included on analysis adjustments to spin-off gain, goodwill impairment loss, or other intangible asset impairment loss) 2010 INPUT US dollar amounts IN Adjusted balance Sales, net returns and allowances $ 18,391 COS using FIFO 11,455 Gross profit 6,936 Operating expenses SG&A expenses (excl D&A and advertising) 2,842 R&D expense - Advertising expense 869 D&A 1,057 Other operating expenses (income) - Total operating expenses 4,768 Operating income 2,168 Other income (expense) Interest expense, net of interest income (648) Gain (loss) on spin-off of subsidiary - Gain (loss) on debt restruct/early extinguish - Gain (loss) on disposal of invest sec's AFS - Gain (loss) on disposal of PP&E - Impairment loss on PP&E - Impairment loss on goodwill - Impairment of other intangibles - Restructuring charge - Total other income (expense) (648) Income from cont. oper's before taxes 1,520 Taxes on income from continuing operations 568 Income from contin oper incl noncontrol int's 952 Less: Income attrib to noncontrol interests Income from continuing operations $ 952 Gain (loss) on discont'd oper's, net of tax Disregard Income before extraordinary items Disregard Extraordinary gain (loss), net of tax Disregard Net income Disregard Before-tax amounts from above: Income from cont. oper's before taxes $ Interest expense, net Operating profit before income taxes 1,520 (648) $ 2,168 Explanations for Analysis Adjustments (A) Capitalize operating lease commitments (see balance sheet for related adjustments) (B) See balance sheet for adjustment to recognize oblig's under noncancellable, fixed-price vendor sup (C) See balance sheet for adjustment to recognize guaranteed debt of unconsolidated affiliated entitie (D) See balance sheet for adjustment to recognize undeclared prior-year dividends on cumulative pre (E) Adjust FIFO-basis COS for "inflation (holding) profits" (NO balance sheet adjustment needed) (F) Reclassify financial elements of DB pension and OPEB expense (NO balance sheet adjustment nee (G) Recognize capitalized interest as financial expense (NO balance sheet adjustment needed) (H) Recast or eliminate asset impairment and restructuring charges, nonoperating gains and losse (No tax effect included on analysis adjustments to spin-off gain, goodwill impairment loss, or other intan INPUT US dollar amounts IN 2011 Audited Analysis Adjustment (See explanations below) balance Sales, net returns and allowances (A) (B) (C) (D) (E) (F) (G) (H) $ 18,804 COS using FIFO 11,625 Gross profit 138 7,179 - 3,281 (233) - - - (138) - - - Operating expenses SG&A expenses (excl D&A and advertising) R&D expense - Advertising expense 962 D&A 778 Other operating expenses (income) 167 - Total operating expenses 5,021 (66) - - - - - - - Operating income 2,158 66 - - - (138) - - - (299) (184) (299) (184) - - - - - (6) - 1,859 (118) - - - (138) - (6) - Taxes on income from continuing operations 692 (44) - - - (51) Income from contin oper incl noncontrol int's 1,167 (74) - - - (87) - (4) - - - - - - - - - (74) - - - (87) - (4) - Other income (expense) Interest expense, net of interest income (6) Gain (loss) on spin-off of subsidiary Gain (loss) on debt restruct/early extinguish Gain (loss) on disposal of invest sec's AFS Gain (loss) on disposal of PP&E Impairment loss on PP&E Impairment loss on goodwill Impairment of other intangibles Restructuring charge Total other income (expense) Income from cont. oper's before taxes Less: Income attrib to noncontrol interests Income from continuing operations 1,167 (2) Gain (loss) on discont'd oper's, net of tax Disr Income before extraordinary items 1,167 Disr Extraordinary gain (loss), net of tax Net income Disr $ 1,167 $ 1,859 (118) - - - (138) - (6) - (299) (184) - - - - - (6) - 2,158 66 - - - (138) - - - Disr Before-tax amounts from above: Income from cont. oper's before taxes Interest expense, net Operating profit before income taxes $ Explanations for Analysis Adjustments (A) Capitalize operating lease commitments (see balance sheet for related adjustments) (B) See balance sheet for adjustment to recognize oblig's under noncancellable, fixed-price vendor supply agreements (C) See balance sheet for adjustment to recognize guaranteed debt of unconsolidated affiliated entities (D) See balance sheet for adjustment to recognize undeclared prior-year dividends on cumulative preferred stock (E) Adjust FIFO-basis COS for "inflation (holding) profits" (NO balance sheet adjustment needed) (F) Reclassify financial elements of DB pension and OPEB expense (NO balance sheet adjustment needed) (G) Recognize capitalized interest as financial expense (NO balance sheet adjustment needed) (H) Recast or eliminate asset impairment and restructuring charges, nonoperating gains and losses (NO balance sheet adjustment needed) (No tax effect included on analysis adjustments to spin-off gain, goodwill impairment loss, or other intangible asset impairment loss) 2011 INPUT US dollar amounts IN Adjusted balance Sales, net returns and allowances $ 18,804 COS using FIFO 11,763 Gross profit 7,041 Operating expenses SG&A expenses (excl D&A and advertising) 3,048 R&D expense - Advertising expense 962 D&A 945 Other operating expenses (income) - Total operating expenses 4,955 Operating income 2,086 Other income (expense) Interest expense, net of interest income (489) Gain (loss) on spin-off of subsidiary - Gain (loss) on debt restruct/early extinguish - Gain (loss) on disposal of invest sec's AFS - Gain (loss) on disposal of PP&E - Impairment loss on PP&E - Impairment loss on goodwill - Impairment of other intangibles - Restructuring charge - Total other income (expense) (489) Income from cont. oper's before taxes 1,597 Taxes on income from continuing operations 595 Income from contin oper incl noncontrol int's 1,002 Less: Income attrib to noncontrol interests Income from continuing operations $ 1,002 Gain (loss) on discont'd oper's, net of tax Disregard Income before extraordinary items Disregard Extraordinary gain (loss), net of tax Disregard Net income Disregard Before-tax amounts from above: Income from cont. oper's before taxes $ Interest expense, net Operating profit before income taxes 1,597 (489) $ 2,086 Explanations for Analysis Adjustments (A) Capitalize operating lease commitments (see balance sheet for related adjustments) (B) See balance sheet for adjustment to recognize oblig's under noncancellable, fixed-price vendor sup (C) See balance sheet for adjustment to recognize guaranteed debt of unconsolidated affiliated entitie (D) See balance sheet for adjustment to recognize undeclared prior-year dividends on cumulative pre (E) Adjust FIFO-basis COS for "inflation (holding) profits" (NO balance sheet adjustment needed) (F) Reclassify financial elements of DB pension and OPEB expense (NO balance sheet adjustment nee (G) Recognize capitalized interest as financial expense (NO balance sheet adjustment needed) (H) Recast or eliminate asset impairment and restructuring charges, nonoperating gains and losse (No tax effect included on analysis adjustments to spin-off gain, goodwill impairment loss, or other intan INPUT US dollar amounts IN 2012 Audited Analysis Adjustment (See explanations below) balance Sales, net returns and allowances (A) (B) (C) (D) (E) (F) (G) (H) $ 19,279 COS using FIFO 12,289 Gross profit - 6,990 - 3,274 (235) - - - - - - - Operating expenses SG&A expenses (excl D&A and advertising) R&D expense - Advertising expense 993 D&A 833 Other operating expenses (income) 166 - Total operating expenses 5,100 (69) - - - - - - - Operating income 1,890 69 - - - - - - - (329) (182) (329) (182) - - - - - (2) - 1,561 (113) - - - - - (2) - Taxes on income from continuing operations 575 (42) - - - - Income from contin oper incl noncontrol int's 986 (71) - - - - - (1) - - - - - - - - - (71) - - - - - (1) - Other income (expense) Interest expense, net of interest income (2) Gain (loss) on spin-off of subsidiary Gain (loss) on debt restruct/early extinguish Gain (loss) on disposal of invest sec's AFS Gain (loss) on disposal of PP&E Impairment loss on PP&E Impairment loss on goodwill Impairment of other intangibles Restructuring charge Total other income (expense) Income from cont. oper's before taxes Less: Income attrib to noncontrol interests Income from continuing operations 986 (1) Gain (loss) on discont'd oper's, net of tax Disr Income before extraordinary items 986 Disr Extraordinary gain (loss), net of tax Net income Disr $ 986 $ 1,561 (113) - - - - - (2) - (329) (182) - - - - - (2) - 1,890 69 - - - - - - - Disr Before-tax amounts from above: Income from cont. oper's before taxes Interest expense, net Operating profit before income taxes $ Explanations for Analysis Adjustments (A) Capitalize operating lease commitments (see balance sheet for related adjustments) (B) See balance sheet for adjustment to recognize oblig's under noncancellable, fixed-price vendor supply agreements (C) See balance sheet for adjustment to recognize guaranteed debt of unconsolidated affiliated entities (D) See balance sheet for adjustment to recognize undeclared prior-year dividends on cumulative preferred stock (E) Adjust FIFO-basis COS for "inflation (holding) profits" (NO balance sheet adjustment needed) (F) Reclassify financial elements of DB pension and OPEB expense (NO balance sheet adjustment needed) (G) Recognize capitalized interest as financial expense (NO balance sheet adjustment needed) (H) Recast or eliminate asset impairment and restructuring charges, nonoperating gains and losses (NO balance sheet adjustment needed) (No tax effect included on analysis adjustments to spin-off gain, goodwill impairment loss, or other intangible asset impairment loss) 2012 INPUT US dollar amounts IN Adjusted balance Sales, net returns and allowances $ 19,279 COS using FIFO 12,289 Gross profit 6,990 Operating expenses SG&A expenses (excl D&A and advertising) 3,039 R&D expense - Advertising expense 993 D&A 999 Other operating expenses (income) - Total operating expenses 5,031 Operating income 1,959 Other income (expense) Interest expense, net of interest income (513) Gain (loss) on spin-off of subsidiary - Gain (loss) on debt restruct/early extinguish - Gain (loss) on disposal of invest sec's AFS - Gain (loss) on disposal of PP&E - Impairment loss on PP&E - Impairment loss on goodwill - Impairment of other intangibles - Restructuring charge - Total other income (expense) (513) Income from cont. oper's before taxes 1,446 Taxes on income from continuing operations 532 Income from contin oper incl noncontrol int's 914 Less: Income attrib to noncontrol interests Income from continuing operations $ 914 Gain (loss) on discont'd oper's, net of tax Disregard Income before extraordinary items Disregard Extraordinary gain (loss), net of tax Disregard Net income Disregard Before-tax amounts from above: Income from cont. oper's before taxes $ Interest expense, net Operating profit before income taxes 1,446 (513) $ 1,959 Explanations for Analysis Adjustments (A) Capitalize operating lease commitments (see balance sheet for related adjustments) (B) See balance sheet for adjustment to recognize oblig's under noncancellable, fixed-price vendor sup (C) See balance sheet for adjustment to recognize guaranteed debt of unconsolidated affiliated entitie (D) See balance sheet for adjustment to recognize undeclared prior-year dividends on cumulative pre (E) Adjust FIFO-basis COS for "inflation (holding) profits" (NO balance sheet adjustment needed) (F) Reclassify financial elements of DB pension and OPEB expense (NO balance sheet adjustment nee (G) Recognize capitalized interest as financial expense (NO balance sheet adjustment needed) (H) Recast or eliminate asset impairment and restructuring charges, nonoperating gains and losse (No tax effect included on analysis adjustments to spin-off gain, goodwill impairment loss, or other intan INPUT US dollar amounts IN 2013 Audited Analysis Adjustment (See explanations below) balance Sales, net returns and allowances (A) (B) (C) (D) (E) Adjusted (F) (G) balance $ 19,031 COS using FIFO ### 12,087 Gross profit 91 6,944 - 3,300 (243) - - - (91) ### - ### - Operating expenses SG&A expenses (excl D&A and advertising) R&D expense Advertising expense D&A - ## 1,013 ### 889 Other operating expenses (income) ### 168 ### - ## Total operating expenses 5,202 (75) - - - - - ### - Operating income 1,742 75 - - - (91) - ### - (338) (184) Other income (expense) Interest expense, net of interest income ### (1) Gain (loss) on spin-off of subsidiary ## Gain (loss) on debt restruct/early extinguish ## Gain (loss) on disposal of invest sec's AFS ## Gain (loss) on disposal of PP&E ## Impairment loss on PP&E ## Impairment loss on goodwill ## Impairment of other intangibles ## Restructuring charge ## Total other income (expense) (338) (184) - - - - - ### (1) 1,404 (109) - - - (91) - ### (1) Taxes on income from continuing operations 515 (40) - - - (33) Income from contin oper incl noncontrol int's 889 (69) - - - (58) - ### (1) - - - - - - ## - (69) - - - (58) - ### (1) Income from cont. oper's before taxes Less: Income attrib to noncontrol interests Income from continuing operations 889 Gain (loss) on discont'd oper's, net of tax Disregard Income before extraordinary items 889 Disregard Extraordinary gain (loss), net of tax Net income ### - Disregard $ 889 $ 1,404 (109) - - - (91) - ### (1) (338) (184) - - - - - ### (1) 1,742 75 - - - (91) - ### - Disregard Before-tax amounts from above: Income from cont. oper's before taxes Interest expense, net Operating profit before income taxes $ Explanations for Analysis Adjustments (A) Capitalize operating lease commitments (see balance sheet for related adjustments) (B) See balance sheet for adjustment to recognize oblig's under noncancellable, fixed-price vendor supply agreements (C) See balance sheet for adjustment to recognize guaranteed debt of unconsolidated affiliated entities (D) See balance sheet for adjustment to recognize undeclared prior-year dividends on cumulative preferred stock (E) Adjust FIFO-basis COS for "inflation (holding) profits" (NO balance sheet adjustment needed) (F) Reclassify financial elements of DB pension and OPEB expense (NO balance sheet adjustment needed) (G) Recognize capitalized interest as financial expense (NO balance sheet adjustment needed) (H) Recast or eliminate asset impairment and restructuring charges, nonoperating gains and losses (NO balance sheet adjustment need (No tax effect included on analysis adjustments to spin-off gain, goodwill impairment loss, or other intangible asset impairment loss) INPUT US dollar amounts IN Adjusted balances (used for financial analysis) 2009 Sales, net returns and allowances 2010 2011 2012 2013 $ 17,178 $ 18,391 $ 18,804 $ 19,279 $ 19,031 COS using FIFO 10,804 11,455 11,763 12,289 12,178 6,374 6,936 7,041 6,990 6,853 2,661 2,842 3,048 3,039 3,057 - - - - - Advertising expense 846 869 962 993 1,013 D&A 993 1,057 945 999 1,057 - - - - - Total operating expenses 4,500 4,768 4,955 5,031 5,127 Operating income 1,874 2,168 2,086 1,959 1,726 (642) (648) (489) (513) (523) Gain (loss) on spin-off of subsidiary - - - - - Gain (loss) on debt restruct/early extinguish - - - - - Gain (loss) on disposal of invest sec's AFS - - - - - Gain (loss) on disposal of PP&E - - - - - Impairment loss on PP&E - - - - - Impairment loss on goodwill - - - - - Impairment of other intangibles - - - - - Restructuring charge - - - - - (642) (648) (489) (513) (523) 1,232 1,520 1,597 1,446 1,203 Taxes on income from continuing operations 462 568 595 532 442 Income from contin oper incl noncontrol int's 770 952 1,002 914 761 - - - - - 770 952 1,002 - - - - - 770 952 1,002 914 761 - - - - - 770 $ 952 $ Gross profit Operating expenses SG&A expenses (excl D&A and advertising) R&D expense Other operating expenses (income) Other income (expense) Interest expense, net of interest income Total other income (expense) Income from cont. oper's before taxes Less: Income attrib to noncontrol interests Income from continuing operations $ Gain (loss) on discont'd oper's, net of tax Income before extraordinary items Extraordinary gain (loss), net of tax Net income $ 1,002 $ 914 $ 914 $ 761 761 Before-tax amounts from above: Income from cont. oper's before taxes Interest expense, net Operating profit before income taxes 1,232 1,520 1,597 1,446 1,203 (642) (648) (489) (513) (523) 1,874 2,168 2,086 1,959 1,726 Explanations for Analysis Adjustments (A) Capitalize operating lease commitments (see balance sheet for related adjustments) (B) See balance sheet for adjustment to recognize oblig's under noncancellable, fixed-price vendor supply agreements (C) See balance sheet for adjustment to recognize guaranteed debt of unconsolidated affiliated entities (D) See balance sheet for adjustment to recognize undeclared prior-year dividends on cumulative preferred stock (E) Adjust FIFO-basis COS for "inflation (holding) profits" (NO balance sheet adjustment needed) (F) Reclassify financial elements of DB pension and OPEB expense (NO balance sheet adjustment needed) (G) Recognize capitalized interest as financial expense (NO balance sheet adjustment needed) (H) Recast or eliminate asset impairment and restructuring charges, nonoperating gains and losses (NO balance sheet ad (No tax effect included on analysis adjustments to spin-off gain, goodwill impairment loss, or other intangible asset impairment Consolidated BS-Common-size analysis The A602 Learning Topic 2 Background Paper and the MBA F601 Topic 8 Background Paper, Financial Ratio Analysis, discuss and illustrate common size analysis. Do NOT modify the formatting in this template (to ensure a professionallooking presentation). Use care not to unintentionally overwrite formulas in this worksheet tab. Paste picture images of these schedules in Section 8 of the report. Sixth prior FY FS information used principally to compute average balances in fifth prior FY. (US dollars in millions) Fiscal year ended (after analysis adjustments) 2008 2009 2010 2011 2012 Fiscal year ended (after analysis adjustments) 2013 2008 2009 2010 2011 2012 2013 ASSETS Current Assets Cash and cash equivalents 643 2,267 2,277 1,205 537 971 6% 10% 12% 6% 3% 5% Investment securities AFS - - - - - - 0% 0% 0% 0% 0% 0% AR, gross - - - - - - 0% 0% 0% 0% 0% 0% Less: Allowance for bad debts - - - - - - 0% 0% 0% 0% 0% 0% AR, net - - - - - - 0% 0% 0% 0% 0% 0% 2,799 2,923 3,036 3,216 3,748 3,874 25% 13% 15% 17% 20% 20% 74 73 77 109 122 142 1% 0% 0% 1% 1% 1% 212 1,091 1,347 1,299 1,565 1,553 2% 5% 7% 7% 8% 8% Total current assets 3,728 6,354 6,737 5,829 5,972 6,540 33% PP&E, at cost 9,449 18,262 16,239 16,777 17,334 17,388 83% 29% 20% 84% 34% 26% 83% 30% 27% 88% 31% 29% 91% 34% 31% 90% (2,465) (3,613) (4,203) (4,557) (5,108) (5,379) -22% -17% -21% -24% -27% -28% 6,984 14,649 12,036 12,220 12,226 12,009 61% 68% 61% 64% 64% 62% - - - - - - 0% 0% 0% 0% 0% 0% 201 - - - - - 2% 0% 0% 0% 0% 0% - - - - - - 0% 0% 0% 0% 0% 0% 450 671 897 1,110 908 863 4% 3% 5% 6% 5% 4% 11,363 21,674 19,669 19,159 19,106 19,412 100% 100% 100% 100% 100% 100% Inventories, at FIFO DIT assets-current Other current assets Less: Accumulated depreciation of PP&E PP&E, net Goodwill, net impairment write-downs Other intangibles, net amort., impairment DIT assets-noncurrent Other noncurrent assets Total assets Consolidated BS-Common-size analysis (US dollars in millions) Fiscal year ended (after analysis adjustments) 2008 2009 2010 2011 2012 Fiscal year ended (after analysis adjustments) 2013 2008 2009 2010 2011 2012 2013 LIABILITIES & STOCKHOLDERS' EQUITY Current Liabilities 27.4% -1.1% 9.8% -3.7% 9.2% 10% 11% 12% 12% 13% AP 881 1,188 1,138 1,233 1,307 1,365 8% 5% 6% 6% 7% 7% Accrued liabilities 841 1,005 1,030 1,147 986 1,138 7% 5% 5% 6% 5% 6% Income taxes payable 105 184 127 133 137 94 1% 1% 1% 1% 1% 0% - - - - - - 0% 0% 0% 0% 0% 0% 17 219 135 147 164 204 0% 1% 1% 1% 1% 1% Bonds-current portion - - - - - - 0% 0% 0% 0% 0% 0% Notes and loans payable-current - - 400 - - - 0% 0% 2% 0% 0% 0% Other current liabilities - 869 1,095 1,000 1,253 1,248 0% 4% 6% 5% 7% 6% Total current liabilities 1,844 3,465 3,925 3,660 3,847 4,049 16% 16% 20% 19% 20% 21% Notes and loans payable-noncurrent 1,893 1,894 1,494 2,141 2,492 2,792 17% 9% 8% 11% 13% 14% 160 7,970 5,313 5,271 5,251 5,129 1% 37% 27% 28% 27% 26% - - - - - - 0% 0% 0% 0% 0% 0% DIT liabilities-noncurrent 320 214 256 423 362 382 3% 1% 1% 2% 2% 2% Other noncurrent liabilities 407 536 832 1,156 1,106 1,082 4% 2% 4% 6% 6% 6% Total noncurrent liabilities 2,780 10,614 7,895 8,991 9,211 9,385 24% 49% 40% 47% 48% 48% Total liabilities 4,624 14,079 11,819 12,651 13,058 13,434 41% 65% 60% 66% 68% 69% 2,604 5,413 DIT liabilities-current Capital lease obligation-current portion Capital lease obligation-noncurrent Bonds, net discount [or, plus premium] Shareholders' Equity Preferred (or preference) stock - - - - - - 0% 0% 0% 0% 0% 0% Premium on preferred stock - - - - - - 0% 0% 0% 0% 0% 0% Common stock (par or stated value) 4 4 4 4 4 4 0% 0% 0% 0% 0% 0% 1,971 2,085 2,225 2,339 2,454 2,598 17% 10% 11% 12% 13% 13% (2,638) (2,639) (3,643) (5,977) (7,243) (8,052) -23% -12% -19% -31% -38% -41% - - - - - - 0% 0% 0% 0% 0% 0% 7,448 8,181 9,301 10,195 10,878 11,462 66% 38% 47% 53% 57% 59% - - - - - 0% 0% 0% 0% 0% 0% (46) (36) (37) (53) (45) (34) 0% 0% 0% 0% 0% 0% 6,739 7,595 7,850 6,508 6,048 5,978 59% 35% 40% 34% 32% 31% 11,363 21,674 19,669 19,159 19,106 19,412 100% 100% 100% 100% 100% 100% Additional paid-in capital (APIC) Less: Treasury stock Unearned stock-based compensation Retained earnings Noncontrolling interest in consolid subsid Accum other comprehensive income (loss) Total stockholders' equity Total liabilities and stockholders' equity Common shares outstanding (in millions) 305.000 307.000 291.000 247.000 222.000 211.000 0.15 0.23 Consolidated IS-Common-size analysis 3.0% (US dollars in millions, except per share amounts) Fiscal year ended (after analysis adjustments) Fiscal year ended (after analysis adjustments) 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 Sales, net returns and allowances 16,389 17,178 18,391 18,804 19,279 19,031 100% 100% 100% 100% 100% 100% COS using FIFO 10,334 10,804 11,455 11,763 12,289 12,178 63% 63% 62% 63% 64% 64% 6,055 6,374 6,936 7,041 6,990 6,853 37% 37% 38% 37% 36% 36% 2,879 2,661 2,842 3,048 3,039 3,057 18% 15% 15% 16% 16% 16% - - - - - 0% 0% 0% 0% 0% 0% Gross profit Operating expenses SG&A expenses (excl D&A and advertising) R&D expense Advertising expense 890 846 869 962 993 1,013 5% 5% 5% 5% 5% 5% D&A 632 993 1,057 945 999 1,057 4% 6% 6% 5% 5% 6% - - - - - 0% 0% 0% 0% 0% 0% Other operating expenses (income) Total operating expenses 4,401 4,500 4,768 4,955 5,031 5,127 27% 26% 26% 26% 26% 27% Operating income 1,654 1,874 2,168 2,086 1,959 1,726 10% 11% 12% 11% 10% 9% (275) (642) (648) (489) (513) (523) -2% -4% -4% -3% -3% -3% Gain (loss) on spin-off of subsidiary - - - - - - 0% 0% 0% 0% 0% 0% Gain (loss) on debt restruct/early extinguish - - - - - - 0% 0% 0% 0% 0% 0% Gain (loss) on disposal of invest sec's AFS - - - - - - 0% 0% 0% 0% 0% 0% Gain (loss) on disposal of PP&E - - - - - - 0% 0% 0% 0% 0% 0% Impairment loss on PP&E - - - - - - 0% 0% 0% 0% 0% 0% Impairment loss on goodwill - - - - - - 0% 0% 0% 0% 0% 0% Impairment of other intangibles - - - - - - 0% 0% 0% 0% 0% 0% Restructuring charge - - - - - - 0% 0% 0% 0% 0% 0% (275) (642) (648) (489) (513) (523) -2% -4% -4% -3% -3% -3% 1,379 1,232 1,520 1,597 1,446 1,203 8% 7% 8% 8% 8% 6% Taxes on income from continuing operations 522 462 568 595 532 442 3% 3% 3% 3% 3% 2% Income from contin oper incl noncontrol int's 857 770 952 1,002 914 761 5% 4% 5% 5% 5% 4% - - - - - - 0% 0% 0% 0% 0% 0% 857 770 952 1,002 914 761 5% 4% 5% 5% 5% 4% Other income (expense) Interest expense, net of interest income Total other income (expense) Income from cont. oper's before taxes Less: Income attrib to noncontrol interests Income from continuing operations Consolidated Cash Flows Statements (SCFs) (US dollars in millions) Fiscal year ended (without analysis adjustments) 2008 2009 2010 2011 2012 2013 Cash flows from operating activities Income from contin oper, incl noncontrol interests 857 973 1,120 1,167 986 889 Depreciation and amortization (D&A) 632 688 750 778 833 889 Stock-based compensation expense 55 64 66 57 50 55 - ### (3) (2) (4) (3) Deferred income taxes 66 40 39 144 (79) (7) Other non-cash expenses, net 57 38 36 39 29 43 60 (119) (107) (160) (523) (116) (40) (13) (50) (42) (37) (11) AP 48 306 (50) 96 74 58 Accrued and other noncurrent liabilities 43 235 12 63 (60) 149 (26) 74 (63) (1) (4) (62) 1,752 2,286 1,750 2,139 1,265 1,884 1.2 1.4 0.9 1.1 0.7 1.1 Adjustments to reconcile income to OCF Excess tax benefits from share-based compens. Changes in operating working capital: Inventories Other current and noncurrent assets Income taxes Operating cash inflow (outflow) (OCF) OCF-to-NI before D&A ratio (US dollars in millions) Fiscal year ended 2008 2009 2010 2011 2012 2013 Cash flows from investing activities Capital expenditures (CapEx) Sale of investments in auction rate securities Purch's of investments in auction rate securities Other, net Net cash provided (used) by invest activities (1,066) (675) (801) (927) (785) (643) 93 28 42 145 109 1 (53) - - - - - 11 (2) 2 (20) 16 19 (1,015) (649) (757) (802) (660) (623) Cash flows from financing activities Treasury stock purchases (262) (1) (1,004) (2,306) (1,284) (799) Dividends paid - ### - (271) (300) (302) Proceeds from issuance of debt - ### - 646 350 300 44 10 27 14 12 1 - ### - (400) - - (62) (70) (84) (91) (111) (115) Proceeds from stock option exercises 5 51 75 58 68 102 Other, net - (3) 3 (59) (8) (14) (275) (13) (983) (2,409) (1,273) (827) - ### - - - - Net increase in cash and cash equivalents 462 1,624 10 (1,072) (668) 434 Cash and cash equivalents at begin of FY 181 643 2,267 2,277 1,205 537 Cash and cash equivalents at end of FY 643 2,267 2,277 1,205 537 971 Income taxes paid 471 470 689 550 654 561 Interest paid 301 300 304 297 318 326 Proceeds from financing obligations L-T debt payments Capital lease financing obligation payments Net cash used in financing activities Effect exchng rate changes on cash/equiv's Supplemental cash flow information The A602 Learning Topic 2 Background Paper and the MBA F601 Topic 8 Background Paper, Financial Ratio Analysis, define and describe financial ratios. Do NOT modify the formatting in this template (to ensure a professional-looking presentation). Use care not to unintentionally overwrite formulas in this worksheet tab. Paste picture images of these schedules in Section 8 of the report. For each ratio, comment in this column on the (1) trend its likely business or financial implications and (ii) the rela Do not define the ratios (e.g., "this ratio indicates whethe Do not only "state the obvious" (e.g., "the ratio's trend is - Write in clear and complete sentences (subject, ver - Spell-check your comments. - Comments must fit within the space provided, with All cells in this workbook tab are already properly formatt Scroll to the bottom of the worksheet to view the assignm Financial Ratio Analysis LIQUIDITY (U.S. dollars in millions, except per-share amounts) Key Industry competit average or ratios ratios Fiscal year ended (after analysis adjustments) ### 2009 2010 2011 2012 2013 Current (working capital) ratio NA 1.8 1.7 1.6 1.6 1.6 Total current assets NA 6,354 6,737 5,829 5,972 6,540 Total current liabilities NA 3,465 3,925 3,660 3,847 4,049 Acid-test (quick) ratio NA 0.7 0.6 0.3 0.1 0.2 Cash and cash equivalents NA 2,267 2,277 1,205 537 971 Investment securities AFS (market value) NA - - - - - AR, net NA - - - - - Total cash-and-equivalents, invest. securities, and AR NA 2,267 2,277 1,205 537 971 Total current liabilities NA 3,465 3,925 3,660 3,847 4,049 Average collection period (days) (see also turnover ratio) NA