In need of some assistance with an assignment. The financial data for Buffalo Wild Wings needs to be added to the following Excel workbook tabs. ONLY 2014 INFORMATION IS NEEDED. The company's Form 10-k is attached. Thank you in advance!

-BS Analysis Adjustments - ONLY 2014

-IS Analysis Adjustments - ONLY 2014

-Common Size FS - ONLY 2014

-Financial Ratios - ONLY 2014

-Industry Firm Ratios - ONLY BUFFALO WILD WINGS

Note: Use care not to delete, hide or reorder workbook tabs (worksheets) i . . . . 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 Maximum Earned Worksheet Tab Label: Operating Lease Commitments 20 18 Oper Lease Adjust 5 and 6 Financial Elements of Pension Costs 10 10 Pension Cost Analysis Adjust Inventory Cost-Flow Assumption 15 14 Invent Cost-Flow Analysis Adj Noncancellable Commitments 5 5 Noncancel Commit Analysis Adj Guaranteed Unconsolidated Debt - - Guar Uncons Debt Analysis Adj Capitalized Interest 5 5 Capitalized Interest Analysis Adj Impairment or Restructuring Charges 20 17 Early Retirement, Restructuring Debt 10 9 Gains on Investments or PP&E 15 12 100 90 Total points The maximum points possible for each type of analysis adjustment will depend on the particular facts and circumstances of the company selected by the facilitator for use with the assignments. It is unlikely that every type of analysis adjustment listed here will apply to a particular company. Impair, Restruct Analysis Adj Debt Restruct Analysis Adj Sales Invest, PP&E Analysis Adj workbook tabs (worksheets) in this workbook. . . . . . . . . . . . . . . . . . . . . INPUT US dollar amounts IN Amounts in blue font and shading are illustrative only. Input all dollar amounts in MILLIONS, NOT thousands 2011 Audited balance Analysis Adjustment (See explanations below) (A) (B) (C) (D) (E) (F) Adjusted (G) (H) balance Assets Current assets Cash and cash equivalents $ 370 $ 370 Investment securities AFS 160 160 AR, gross 650 650 Less: Allowance for bad debts (30) AR, net 620 (30) Inventories, at LOCOM using . . . ? 975 DIT assets-current 115 115 Other current assets 125 125 - - - - - - - 620 105 Total current assets 2,365 - PP&E, at cost 3,210 800 Less: Accumulated depreciation of PP&E - 105 1,080 - - - - - - 2,470 225 4,235 (720) PP&E, net 2,490 Goodwill, net impairment write-downs (720) 800 - 225 - - - - - 3,515 545 545 65 65 DIT assets-noncurrent 125 125 Other noncurrent assets 110 110 Other intangibles, net amort., impairment Total assets $ 5,700 800 105 225 - - - - - $ 6,830 INPUT US dollar amounts IN Amounts in blue font and shading are illustrative only. Input all dollar amounts in MILLIONS, NOT thousands 2011 Audited Analysis Adjustment (See explanations below) balance (A) (B) (C) (D) (E) (F) Adjusted (G) (H) balance Liabilities and stockholders' equity Current liabilities AP $ 880 Accrued liabilities 225 Income taxes payable 110 DIT liabilities-current 85 Capital lease obligation-current portion - Bonds-current portion 100 Notes and loans payable-current 250 Other current liabilities $ 105 5 335 110 85 72 72 100 25 275 50 Total current liabilities 1,700 Notes and loans payable-noncurrent 50 72 105 520 Capital lease obligation-noncurrent - 880 25 5 - - - - 1,907 200 720 728 728 Bonds, net discount [or, plus premium] 325 325 DIT liabilities-noncurrent 125 125 30 30 Other noncurrent liabilities Total noncurrent liabilities 1,000 728 - 200 - - - - - 1,928 Total liabilities 2,700 800 105 225 5 - - - - 3,835 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 50 50 2,215 2,215 (270) (270) (65) (65) (5) 1,195 (120) (265) Total stockholders' equity Explanations for Analysis Adjustments 25 (120) Accum other comprehensive income (loss) CHECK: A - (L + E) (S/B -0-) 230 25 1,200 Noncontrolling interest in consolid subsid Total liabilities and stockholders' equity 230 $ (265) 3,000 - - - (5) - - - - 5,700 800 105 225 - - - - - - - - - - - - - - As necessary, modify these analysis adjustment explanations for the particular company analyzed and its particular facts and circumstances. (A) Capitalize operating lease commitments (see income statement for related adjustments) (B) Recognize obligations under noncancellable, fixed-price vendor supply 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 2,995 $ 6,830 - INPUT US dollar amounts IN Amounts in blue font and shading are illustrative only. Input all dollar amounts in MILLIONS, NOT thousands 2012 Audited balance Analysis Adjustment (See explanations below) (A) (B) (C) (D) (E) (F) Adjusted (G) (H) balance Assets Current assets Cash and cash equivalents $ 370 $ 370 Investment securities AFS 160 160 AR, gross 650 650 Less: Allowance for bad debts (30) AR, net 620 (30) Inventories, at LOCOM using . . . ? 975 DIT assets-current 115 115 Other current assets 125 125 - - - - - - - 620 105 Total current assets 2,365 - PP&E, at cost 3,210 800 Less: Accumulated depreciation of PP&E - 105 1,080 - - - - - - 2,470 225 4,235 (720) PP&E, net 2,490 Goodwill, net impairment write-downs (720) 800 - 225 - - - - - 3,515 545 545 65 65 DIT assets-noncurrent 125 125 Other noncurrent assets 110 110 Other intangibles, net amort., impairment Total assets $ 5,700 800 105 225 - - - - - $ 6,830 INPUT US dollar amounts IN Amounts in blue font and shading are illustrative only. Input all dollar amounts in MILLIONS, NOT thousands 2012 Audited Analysis Adjustment (See explanations below) balance (A) (B) (C) (D) (E) (F) Adjusted (G) (H) balance Liabilities and stockholders' equity Current liabilities AP $ 880 Accrued liabilities 225 Income taxes payable 110 DIT liabilities-current 85 Capital lease obligation-current portion - Bonds-current portion 100 Notes and loans payable-current 250 Other current liabilities $ 105 5 335 110 85 72 72 100 25 275 50 Total current liabilities 1,700 Notes and loans payable-noncurrent 50 72 105 520 Capital lease obligation-noncurrent - 880 25 5 - - - - 1,907 200 720 728 728 Bonds, net discount [or, plus premium] 325 325 DIT liabilities-noncurrent 125 125 30 30 Other noncurrent liabilities Total noncurrent liabilities 1,000 728 - 200 - - - - - 1,928 Total liabilities 2,700 800 105 225 5 - - - - 3,835 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 50 50 2,215 2,215 (270) (270) (65) (65) (5) 1,195 (120) (265) Total stockholders' equity Explanations for Analysis Adjustments 25 (120) Accum other comprehensive income (loss) CHECK: A - (L + E) (S/B -0-) 230 25 1,200 Noncontrolling interest in consolid subsid Total liabilities and stockholders' equity 230 $ (265) 3,000 - - - (5) - - - - 5,700 800 105 225 - - - - - - - - - - - - - - As necessary, modify these analysis adjustment explanations for the particular company analyzed and its particular facts and circumstances. (A) Capitalize operating lease commitments (see income statement for related adjustments) (B) Recognize obligations under noncancellable, fixed-price vendor supply 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 2,995 $ 6,830 - INPUT US dollar amounts IN Amounts in blue font and shading are illustrative only. Input all dollar amounts in MILLIONS, NOT thousands 2013 Audited balance Analysis Adjustment (See explanations below) (A) (B) (C) (D) (E) (F) Adjusted (G) (H) balance Assets Current assets Cash and cash equivalents $ 370 $ 370 Investment securities AFS 160 160 AR, gross 650 650 Less: Allowance for bad debts (30) AR, net 620 (30) Inventories, at LOCOM using . . . ? 975 DIT assets-current 115 115 Other current assets 125 125 - - - - - - - 620 105 Total current assets 2,365 - PP&E, at cost 3,210 800 Less: Accumulated depreciation of PP&E - 105 1,080 - - - - - - 2,470 225 4,235 (720) PP&E, net 2,490 Goodwill, net impairment write-downs (720) 800 - 225 - - - - - 3,515 545 545 65 65 DIT assets-noncurrent 125 125 Other noncurrent assets 110 110 Other intangibles, net amort., impairment Total assets $ 5,700 800 105 225 - - - - - $ 6,830 INPUT US dollar amounts IN Amounts in blue font and shading are illustrative only. Input all dollar amounts in MILLIONS, NOT thousands 2013 Audited Analysis Adjustment (See explanations below) balance (A) (B) (C) (D) (E) (F) Adjusted (G) (H) balance Liabilities and stockholders' equity Current liabilities AP $ 880 Accrued liabilities 225 Income taxes payable 110 DIT liabilities-current 85 Capital lease obligation-current portion - Bonds-current portion 100 Notes and loans payable-current 250 Other current liabilities $ 105 5 335 110 85 72 72 100 25 275 50 Total current liabilities 1,700 Notes and loans payable-noncurrent 50 72 105 520 Capital lease obligation-noncurrent - 880 25 5 - - - - 1,907 200 720 728 728 Bonds, net discount [or, plus premium] 325 325 DIT liabilities-noncurrent 125 125 30 30 Other noncurrent liabilities Total noncurrent liabilities 1,000 728 - 200 - - - - - 1,928 Total liabilities 2,700 800 105 225 5 - - - - 3,835 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 50 50 2,215 2,215 (270) (270) (65) (65) (5) 1,195 (120) (265) Total stockholders' equity Explanations for Analysis Adjustments 25 (120) Accum other comprehensive income (loss) CHECK: A - (L + E) (S/B -0-) 230 25 1,200 Noncontrolling interest in consolid subsid Total liabilities and stockholders' equity 230 $ (265) 3,000 - - - (5) - - - - 5,700 800 105 225 - - - - - - - - - - - - - - As necessary, modify these analysis adjustment explanations for the particular company analyzed and its particular facts and circumstances. (A) Capitalize operating lease commitments (see income statement for related adjustments) (B) Recognize obligations under noncancellable, fixed-price vendor supply 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 2,995 $ 6,830 - INPUT US dollar amounts IN Amounts in blue font and shading are illustrative only. Input all dollar amounts in MILLIONS, NOT thousands 2014 Audited Analysis Adjustment (See explanations below) balance (A) (B) (C) (D) (E) (F) Adjusted (G) (H) balance Assets Current assets Cash and cash equivalents $ 93,329 $ 93,329 Investment securities AFS 19,547 19,547 AR, gross 28,347 28,347 Less: Allowance for bad debts (25) (25) AR, net 28,322 Inventories, at LOCOM using . . . ? 11,893 DIT assets-current 15,807 15,807 Other current assets 95,031 95,031 Total current assets 263,929 - 855,925 800 PP&E, at cost Less: Accumulated depreciation of PP&E PP&E, net - - - - - - - - 105 105 11,998 - - - - - - 225 264,034 856,950 (361,524) 494,401 28,322 (361,524) 800 - 225 - - - - - 495,426 Goodwill, net impairment write-downs 38,106 38,106 Other intangibles, net amort., impairment 37,631 37,631 DIT assets-noncurrent Other noncurrent assets Total assets - - 19,399 19,399 $853,466 800 105 225 - - - - - $854,596 INPUT US dollar amounts IN Amounts in blue font and shading are illustrative only. Input all dollar amounts in MILLIONS, NOT thousands 2014 Audited Analysis Adjustment (See explanations below) balance (A) (B) (C) (D) (E) (F) Adjusted (G) (H) balance Liabilities and stockholders' equity Current liabilities AP Accrued liabilities $ 37,241 2,099 Income taxes payable - DIT liabilities-current - Capital lease obligation-current portion - Bonds-current portion - Notes and loans payable-current 156,145 Total current liabilities 195,485 Capital lease obligation-noncurrent Bonds, net discount [or, plus premium] DIT liabilities-noncurrent Other noncurrent liabilities Total noncurrent liabilities Total liabilities 105 2,209 72 72 25 25 156,145 72 105 37,479 5 - - Other current liabilities Notes and loans payable-noncurrent $ 37,241 25 5 - - - - 200 195,692 200 728 38,207 - - 39,815 39,815 6,388 6,388 83,682 728 - 200 - - - - - 84,610 279,167 800 105 225 5 - - - - 280,302 Preferred (or preference) stock - - Premium on preferred stock - - 148,114 148,114 Additional paid-in capital (APIC) Common stock (par or stated value) - - 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 CHECK: A - (L + E) (S/B -0-) Explanations for Analysis Adjustments 427,695 (5) 427,690 586 586 (2,096) (2,096) 574,299 - - - (5) - - - - 574,294 $853,466 800 105 225 - - - - - $854,596 - - - - - - - - - - As necessary, modify these analysis adjustment explanations for the particular company analyzed and its particular facts and circumstances. (A) Capitalize operating lease commitments (see income statement for related adjustments) (B) Recognize obligations under noncancellable, fixed-price vendor supply 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 Amounts in blue font and shading are illustrative only. Input all dollar amounts in MILLIONS, NOT thousands 2015 Audited balance Analysis Adjustment (See explanations below) (A) (B) (C) (D) (E) (F) Adjusted (G) (H) balance Assets Current assets Cash and cash equivalents $ 370 $ 370 Investment securities AFS 160 160 AR, gross 650 650 Less: Allowance for bad debts (30) AR, net 620 (30) Inventories, at LOCOM using . . . ? 975 DIT assets-current 115 115 Other current assets 125 125 - - - - - - - 620 105 Total current assets 2,365 - PP&E, at cost 3,210 800 Less: Accumulated depreciation of PP&E - 105 1,080 - - - - - - 2,470 225 4,235 (720) PP&E, net 2,490 Goodwill, net impairment write-downs (720) 800 - 225 - - - - - 3,515 545 545 65 65 DIT assets-noncurrent 125 125 Other noncurrent assets 110 110 Other intangibles, net amort., impairment Total assets $ 5,700 800 105 225 - - - - - $ 6,830 INPUT US dollar amounts IN Amounts in blue font and shading are illustrative only. Input all dollar amounts in MILLIONS, NOT thousands 2015 Audited Analysis Adjustment (See explanations below) balance (A) (B) (C) (D) (E) (F) Adjusted (G) (H) balance Liabilities and stockholders' equity Current liabilities AP $ 880 Accrued liabilities 225 Income taxes payable 110 DIT liabilities-current 85 Capital lease obligation-current portion - Bonds-current portion 100 Notes and loans payable-current 250 Other current liabilities $ 105 5 335 110 85 72 72 100 25 275 50 Total current liabilities 1,700 Notes and loans payable-noncurrent 50 72 105 520 Capital lease obligation-noncurrent - 880 25 5 - - - - 1,907 200 720 728 728 Bonds, net discount [or, plus premium] 325 325 DIT liabilities-noncurrent 125 125 30 30 Other noncurrent liabilities Total noncurrent liabilities 1,000 728 - 200 - - - - - 1,928 Total liabilities 2,700 800 105 225 5 - - - - 3,835 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 50 50 2,215 2,215 (270) (270) (65) (65) (5) 1,195 (120) (265) Total stockholders' equity Explanations for Analysis Adjustments 25 (120) Accum other comprehensive income (loss) CHECK: A - (L + E) (S/B -0-) 230 25 1,200 Noncontrolling interest in consolid subsid Total liabilities and stockholders' equity 230 $ (265) 3,000 - - - (5) - - - - 5,700 800 105 225 - - - - - - - - - - - - - - As necessary, modify these analysis adjustment explanations for the particular company analyzed and its particular facts and circumstances. (A) Capitalize operating lease commitments (see income statement for related adjustments) (B) Recognize obligations under noncancellable, fixed-price vendor supply 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 2,995 $ 6,830 - INPUT US dollar amounts IN Amounts in blue font and shading are illustrative only. Input all dollar amounts in MILLIONS, NOT thousands Adjusted balances (used for financial analysis) 2011 2012 2013 2014 2015 Assets Current assets Cash and cash equivalents $ 370 $ 370 $ 370 $ 93,329 $ 370 Investment securities AFS 160 160 160 19,547 160 AR, gross 650 650 650 28,347 650 Less: Allowance for bad debts (30) (30) (30) (25) (30) AR, net 620 620 620 28,322 620 1,080 1,080 1,080 11,998 1,080 DIT assets-current 115 115 115 15,807 115 Other current assets 125 125 125 95,031 125 Total current assets 2,470 2,470 2,470 264,034 2,470 PP&E, at cost 4,235 4,235 4,235 856,950 4,235 (720) (720) (720) (361,524) (720) 3,515 3,515 3,515 495,426 3,515 545 545 545 38,106 545 65 65 65 37,631 65 DIT assets-noncurrent 125 125 125 - 125 Other noncurrent assets 110 110 110 19,399 110 6,830 $854,596 Inventories, at LOCOM using . . . ? Less: Accumulated depreciation of PP&E PP&E, net Goodwill, net impairment write-downs Other intangibles, net amort., impairment Total assets $ 6,830 $ 6,830 $ $ 6,830 INPUT US dollar amounts IN Amounts in blue font and shading are illustrative only. Input all dollar amounts in MILLIONS, NOT thousands Adjusted balances (used for financial analysis) 2011 2012 2013 2014 2015 Liabilities and stockholders' equity Current liabilities AP $ 880 $ 880 $ 880 $ 37,241 $ 880 Accrued liabilities 335 335 335 2,209 335 Income taxes payable 110 110 110 - 110 DIT liabilities-current 85 85 85 - 85 Capital lease obligation-current portion 72 72 72 72 72 Bonds-current portion 100 100 100 - 100 Notes and loans payable-current 275 275 275 25 275 50 50 50 156,145 50 Other current liabilities Total current liabilities 1,907 1,907 1,907 195,692 1,907 Notes and loans payable-noncurrent 720 720 720 200 720 Capital lease obligation-noncurrent 728 728 728 38,207 728 Bonds, net discount [or, plus premium] 325 325 325 - 325 DIT liabilities-noncurrent 125 125 125 39,815 125 30 30 30 6,388 30 Total noncurrent liabilities 1,928 1,928 1,928 84,610 1,928 Total liabilities 3,835 230 3,835 230 3,835 230 280,302 - 3,835 230 25 25 25 - 25 Other noncurrent liabilities 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) 50 50 50 148,114 50 2,215 2,215 2,215 - 2,215 (270) (270) (270) - (270) (65) (65) (65) - (65) 1,195 1,195 1,195 427,690 1,195 (120) (120) (120) 586 (120) (265) (265) (265) (2,096) (265) Total stockholders' equity 2,995 2,995 2,995 574,294 2,995 Total liabilities and stockholders' equity 6,830 6,830 6,830 854,596 6,830 - - - - - CHECK: A - (L + E) (S/B -0-) Explanations for Analysis Adjustments As necessary, modify these analysis adjustment explanations for the particular company analyzed and its particular facts and circumstances. (A) Capitalize operating lease commitments (see income statement for related adjustments) (B) Recognize obligations under noncancellable, fixed-price vendor supply 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 Amounts in blue font and shading are illustrative only. Input all dollar amounts in MILLIONS, NOT thousands Sales, net returns and allowances 2011 Audited balance $ Analysis Adjustment (See explanations below) (A) (B) (C) (D) (E) (F) Adjusted (G) (H) balance 8,900 $ 100 8,900 COS (FIFO?LIFO?Avg cost assumption) 5,340 Gross profit 3,560 - SG&A expenses (excl D&A and advertising) 900 (120) R&D expense 450 450 Advertising expense 190 190 D&A 250 Other operating expenses (income) 270 - - - 5,440 (100) - - - 3,460 Operating expenses (20) 760 80 330 270 Total operating expenses 2,060 (40) - - - - (20) - - 2,000 Operating income 1,500 40 - - - (100) 20 - - 1,460 (100) (48) (20) (15) Other income (expense) Interest expense, net of interest income (183) Gain (loss) on spin-off of subsidiary 30 (30) - Gain (loss) on debt restruct/early extinguish 20 (20) - Gain (loss) on disposal of invest sec's AFS 30 (30) - Gain (loss) on disposal of PP&E (40) 40 - Impairment loss on PP&E (90) 80 (10) Impairment loss on goodwill (60) 60 - Impairment of other intangibles (40) 35 (5) Restructuring charge (80) 50 (30) Total other income (expense) Income from cont. oper's before taxes (330) (48) - - - - (20) (15) 185 (228) 1,170 (8) - - - (100) - (15) 185 1,232 Taxes on income from continuing operations 480 (3) - - - (40) - (6) 44 475 Income from contin oper incl noncontrol int's 690 (5) - - - (60) - (9) 141 757 Less: Income attrib to noncontrol interests 20 - - - - - - - - Income from continuing operations 670 (5) - - - (60) - (9) 141 Gain (loss) on discont'd oper's, net of tax (60) For ratios that call for "net income" (e.g., ROCE) 20 $ 737 Disregard use "income from continuing operations (after tax)," instead Income before extraordinary items 610 Extraordinary gain (loss), net of tax (30) Disregard $ 580 Disregard $ 1,170 (8) - - - (100) - (15) 185 (100) (48) - - - - (20) (15) - 1,270 40 - - - (100) 20 - 185 Net income Disregard Before-tax amounts from above: Income from cont. oper's before taxes Interest expense, net Operating profit before income taxes $ As necessary, modify these analysis adjustment explanations for the particular company analyzed and its particular facts and circumstances. 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) $ 1,232 (183) $ 1,415 (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) INPUT US dollar amounts IN Amounts in blue font and shading are illustrative only. Input all dollar amounts in MILLIONS, NOT thousands Sales, net returns and allowances 2012 Audited balance $ Analysis Adjustment (See explanations below) (A) (B) (C) (D) (E) (F) Adjusted (G) (H) balance 8,900 $ 100 8,900 COS (FIFO?LIFO?Avg cost assumption) 5,340 Gross profit 3,560 - SG&A expenses (excl D&A and advertising) 900 (120) R&D expense 450 450 Advertising expense 190 190 D&A 250 Other operating expenses (income) 270 - - - 5,440 (100) - - - 3,460 Operating expenses (20) 760 80 330 270 Total operating expenses 2,060 (40) - - - - (20) - - 2,000 Operating income 1,500 40 - - - (100) 20 - - 1,460 (100) (48) (20) (15) Other income (expense) Interest expense, net of interest income (183) Gain (loss) on spin-off of subsidiary 60 (60) - Gain (loss) on debt restruct/early extinguish 20 (20) - Gain (loss) on disposal of invest sec's AFS 30 (30) - Gain (loss) on disposal of PP&E (40) 40 - Impairment loss on PP&E (90) 80 (10) Impairment loss on goodwill (60) 60 - Impairment of other intangibles (40) 35 (5) Restructuring charge (80) 50 (30) Total other income (expense) Income from cont. oper's before taxes (300) (48) - - - - (20) (15) 155 (228) 1,200 (8) - - - (100) - (15) 155 1,232 Taxes on income from continuing operations 480 (3) - - - (40) - (6) 44 475 Income from contin oper incl noncontrol int's 720 (5) - - - (60) - (9) 111 757 Less: Income attrib to noncontrol interests 20 - - - - - - - - Income from continuing operations 700 (5) - - - (60) - (9) 111 Gain (loss) on discont'd oper's, net of tax (60) For ratios that call for "net income" (e.g., ROCE) 20 $ 737 Disregard use "income from continuing operations (after tax)," instead Income before extraordinary items 640 Extraordinary gain (loss), net of tax (30) Disregard $ 610 Disregard $ 1,200 (8) - - - (100) - (15) 155 (100) (48) - - - - (20) (15) - 1,300 40 - - - (100) 20 - 155 Net income Disregard Before-tax amounts from above: Income from cont. oper's before taxes Interest expense, net Operating profit before income taxes $ As necessary, modify these analysis adjustment explanations for the particular company analyzed and its particular facts and circumstances. 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) $ 1,232 (183) $ 1,415 (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) INPUT US dollar amounts IN Amounts in blue font and shading are illustrative only. Input all dollar amounts in MILLIONS, NOT thousands Sales, net returns and allowances 2013 Audited balance $ Analysis Adjustment (See explanations below) (A) (B) (C) (D) (E) (F) Adjusted (G) (H) balance 8,900 $ 100 8,900 COS (FIFO?LIFO?Avg cost assumption) 5,340 Gross profit 3,560 - SG&A expenses (excl D&A and advertising) 900 (120) R&D expense 450 450 Advertising expense 190 190 D&A 250 Other operating expenses (income) 270 - - - 5,440 (100) - - - 3,460 Operating expenses (20) 760 80 330 270 Total operating expenses 2,060 (40) - - - - (20) - - 2,000 Operating income 1,500 40 - - - (100) 20 - - 1,460 (100) (48) (20) (15) Other income (expense) Interest expense, net of interest income (183) Gain (loss) on spin-off of subsidiary 40 (40) - Gain (loss) on debt restruct/early extinguish 20 (20) - Gain (loss) on disposal of invest sec's AFS 30 (30) - Gain (loss) on disposal of PP&E (40) 40 - Impairment loss on PP&E (90) 80 (10) Impairment loss on goodwill (60) 60 - Impairment of other intangibles (40) 35 (5) Restructuring charge (80) 50 (30) Total other income (expense) Income from cont. oper's before taxes (320) (48) - - - - (20) (15) 175 (228) 1,180 (8) - - - (100) - (15) 175 1,232 Taxes on income from continuing operations 480 (3) - - - (40) - (6) 44 475 Income from contin oper incl noncontrol int's 700 (5) - - - (60) - (9) 131 757 Less: Income attrib to noncontrol interests 20 - - - - - - - - Income from continuing operations 680 (5) - - - (60) - (9) 131 Gain (loss) on discont'd oper's, net of tax (60) For ratios that call for "net income" (e.g., ROCE) 20 $ 737 Disregard use "income from continuing operations (after tax)," instead Income before extraordinary items 620 Extraordinary gain (loss), net of tax (30) Disregard $ 590 Disregard $ 1,180 (8) - - - (100) - (15) 175 (100) (48) - - - - (20) (15) - 1,280 40 - - - (100) 20 - 175 Net income Disregard Before-tax amounts from above: Income from cont. oper's before taxes Interest expense, net Operating profit before income taxes $ As necessary, modify these analysis adjustment explanations for the particular company analyzed and its particular facts and circumstances. 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) $ 1,232 (183) $ 1,415 (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) INPUT US dollar amounts IN Amounts in blue font and shading are illustrative only. Input all dollar amounts in MILLIONS, NOT thousands Sales, net returns and allowances 2014 Audited Analysis Adjustment (See explanations below) balance $ COS (FIFO?LIFO?Avg cost assumption) (A) (B) (C) (D) (E) Adjusted (G) (H) balance 1,516 $ 1,147 Gross profit (F) 100 370 - 132 (120) - - - 1,516 1,247 (100) - - - 270 Operating expenses SG&A expenses (excl D&A and advertising) (20) (8) R&D expense - - Advertising expense - - D&A 98 80 178 Other operating expenses (income) 136 Total operating expenses 366 (40) - - - - (20) - - 306 4 40 - - - (100) 20 - - (36) - (48) (20) (15) Operating income 136 Other income (expense) Interest expense, net of interest income (83) Gain (loss) on spin-off of subsidiary 70 (70) - Gain (loss) on debt restruct/early extinguish 20 (20) - Gain (loss) on disposal of invest sec's AFS 30 (30) - Gain (loss) on disposal of PP&E (40) 40 - Impairment loss on PP&E (90) 80 (10) Impairment loss on goodwill (60) 60 - Impairment of other intangibles (40) 35 (5) Restructuring charge (80) 50 (30) Total other income (expense) (190) Income from cont. oper's before taxes (48) - - - - (20) (15) 145 (128) (186) (8) - - - (100) - (15) 145 (164) Taxes on income from continuing operations 480 20 - - - (40) - (6) 44 498 Income from contin oper incl noncontrol int's (666) (28) - - - (60) - (9) 101 (662) 20 - - - - - - - - (686) (28) - - - (60) - (9) 101 Less: Income attrib to noncontrol interests Income from continuing operations Gain (loss) on discont'd oper's, net of tax (60) For ratios that call for "net income" (e.g., ROCE) Extraordinary gain (loss), net of tax Net income (682) Disregard use "income from continuing operations (after (746) tax)," instead Income before extraordinary items 20 $ Disregard (30) Disregard $ (776) Disregard $ (186) (8) - - - (100) - (15) 145 - (48) - - - - (20) (15) - (186) 40 - - - (100) 20 - 145 Before-tax amounts from above: Income from cont. oper's before taxes Interest expense, net Operating profit before income taxes $ As necessary, modify these analysis adjustment explanations for the particular company analyzed and its particular facts and circumstances. 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) $ (164) (83) $ (81) (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) INPUT US dollar amounts IN Amounts in blue font and shading are illustrative only. Input all dollar amounts in MILLIONS, NOT thousands Sales, net returns and allowances 2015 Audited balance $ Analysis Adjustment (See explanations below) (A) (B) (C) (D) (E) (F) Adjusted (G) (H) balance 8,900 $ 100 8,900 COS (FIFO?LIFO?Avg cost assumption) 5,340 Gross profit 3,560 - SG&A expenses (excl D&A and advertising) 900 (120) R&D expense 450 450 Advertising expense 190 190 D&A 250 Other operating expenses (income) 270 - - - 5,440 (100) - - - 3,460 Operating expenses (20) 760 80 330 270 Total operating expenses 2,060 (40) - - - - (20) - - 2,000 Operating income 1,500 40 - - - (100) 20 - - 1,460 (100) (48) (20) (15) Other income (expense) Interest expense, net of interest income (183) Gain (loss) on spin-off of subsidiary 30 (30) - Gain (loss) on debt restruct/early extinguish 20 (20) - Gain (loss) on disposal of invest sec's AFS 30 (30) - Gain (loss) on disposal of PP&E (40) 40 - Impairment loss on PP&E (90) 80 (10) Impairment loss on goodwill (60) 60 - Impairment of other intangibles (40) 35 (5) Restructuring charge (80) 50 (30) Total other income (expense) Income from cont. oper's before taxes (330) (48) - - - - (20) (15) 185 (228) 1,170 (8) - - - (100) - (15) 185 1,232 Taxes on income from continuing operations 480 (3) - - - (40) - (6) 44 475 Income from contin oper incl noncontrol int's 690 (5) - - - (60) - (9) 141 757 Less: Income attrib to noncontrol interests 20 - - - - - - - - Income from continuing operations 670 (5) - - - (60) - (9) 141 Gain (loss) on discont'd oper's, net of tax (60) For ratios that call for "net income" (e.g., ROCE) 20 $ 737 Disregard use "income from continuing operations (after tax)," instead Income before extraordinary items 610 Extraordinary gain (loss), net of tax (30) Disregard $ 580 Disregard $ 1,170 (8) - - - (100) - (15) 185 (100) (48) - - - - (20) (15) - 1,270 40 - - - (100) 20 - 185 Net income Disregard Before-tax amounts from above: Income from cont. oper's before taxes Interest expense, net Operating profit before income taxes $ As necessary, modify these analysis adjustment explanations for the particular company analyzed and its particular facts and circumstances. 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) $ 1,232 (183) $ 1,415 (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) INPUT US dollar amounts IN Amounts in blue font and shading are illustrative only. Input all dollar amounts in MILLIONS, NOT thousands Sales, net returns and allowances Adjusted balances (used for financial analysis) 2011 $ 2012 8,900 $ 2013 8,900 $ 2014 8,900 $ 2015 1,516 $ 8,900 COS (FIFO?LIFO?Avg cost assumption) 5,440 5,440 5,440 1,247 5,440 Gross profit 3,460 3,460 3,460 270 3,460 SG&A expenses (excl D&A and advertising) 760 760 760 (8) 760 R&D expense 450 450 450 - 450 Advertising expense 190 190 190 - 190 D&A 330 330 330 178 330 Other operating expenses (income) 270 270 270 136 270 Total operating expenses 2,000 2,000 2,000 306 2,000 Operating income 1,460 1,460 1,460 (36) 1,460 (183) (183) (183) (83) (183) Gain (loss) on spin-off of subsidiary - - - - - Gain (loss) on debt restruct/early extinguish - - - - - Gain (loss) on disposal of invest sec's AFS - - - - - Operating expenses Other income (expense) Interest expense, net of interest income 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 - - - - - (10) (10) (10) (10) (10) - - - - - (5) (5) (5) (5) (5) (30) (30) (30) (30) (30) (228) (228) (228) (128) (228) 1,232 1,232 1,232 (164) 1,232 Taxes on income from continuing operations 475 475 475 498 475 Income from contin oper incl noncontrol int's 757 757 757 (662) 757 Less: Income attrib to noncontrol interests Income from continuing operations $ 20 20 20 737 737 737 20 20 (682) $ 737 Gain (loss) on discont'd oper's, net of tax (60) For ratios (60) that call for(60) "net income" (60) (e.g., ROCE) (60) Income before extraordinary items 677 Extraordinary gain (loss), net of tax (30) Net income $ 647 use "income from continuing operations (after 677 677 (742) tax)," instead (30) $ 647 (30) $ 647 677 (30) $ (30) (772) $ 647 Before-tax amounts from above: Income from cont. oper's before taxes Interest expense, net Operating profit before income taxes 1,232 1,232 1,232 (164) 1,232 (183) (183) (183) (83) (183) 1,415 1,415 1,415 (81) 1,415 As necessary, modify these analysis adjustment explanations for the particular company analyzed and particular facts and circumstances. 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 n (No tax effect included on analysis adjustments to spin-off gain, goodwill impairment loss, or other intangible asset impairment loss) Consolidated BS-Common-size analysis Sixth prior FY FS information used principally to compute average balances in fifth prior FY. Hide thie comment and set this column's WIDTH to 0.1 BEFORE copying-and-pasting picture images of the FS (BS, IS, and SCF) into Section 8 of the final report. Input all dollar amounts in MILLIONS, NOT thousands (US dollars in millions) Fiscal year ended (after analysis adjustments) 2010 2011 2012 2013 2014 Fiscal year ended (after analysis adjustments) 2015 2010 2011 2012 2013 2014 2015 ASSETS Current Assets Cash and cash equivalents 370 370 370 370 93,329 370 6% 5% 5% 5% 11% 5% Investment securities AFS 160 160 160 160 19,547 160 3% 2% 2% 2% 2% 2% AR, gross 650 650 650 650 28,347 650 11% 10% 10% 10% 3% 10% Less: Allowance for bad debts (30) (30) (30) (30) (25) (30) -1% 0% 0% 0% 0% 0% AR, net 620 620 620 620 28,322 620 11% 9% 9% 9% 3% 9% Inventories, at LOCOM using . . . ? 975 1,080 1,080 1,080 11,998 1,080 17% 16% 16% 16% 1% 16% DIT assets-current 115 115 115 115 15,807 115 2% 2% 2% 2% 2% 2% Other current assets 125 125 125 125 95,031 125 2% 2% 2% 2% 11% 2% Total current assets 2,365 2,470 2,470 2,470 264,034 2,470 41% 36% 36% 36% 31% 36% PP&E, at cost 3,210 4,235 4,235 4,235 856,950 4,235 56% 62% 62% 62% 100% 62% (720) (720) (720) (720) (361,524) (720) -13% -11% -11% -11% -42% -11% 2,490 3,515 3,515 3,515 495,426 3,515 44% 51% 51% 51% 58% 51% 545 545 545 545 38,106 545 10% 8% 8% 8% 4% 8% 65 65 65 65 37,631 65 1% 1% 1% 1% 4% 1% DIT assets-noncurrent 125 125 125 125 - 125 2% 2% 2% 2% 0% 2% Other noncurrent assets 110 110 110 110 19,399 110 2% 2% 2% 2% 2% 2% 5,700 6,830 6,830 6,830 854,596 6,830 100% 100% 100% 100% 100% 100% Less: Accumulated depreciation of PP&E PP&E, net Goodwill, net impairment write-downs Other intangibles, net amort., impairment Total assets Consolidated BS-Common-size analysis (US dollars in millions) Fiscal year ended (after analysis adjustments) 2010 2011 2012 2013 2014 Fiscal year ended (after analysis adjustments) 2015 2010 2011 2012 2013 2014 2015 LIABILITIES & STOCKHOLDERS' EQUITY Current Liabilities AP 880 880 880 880 37,241 880 15% 13% 13% 13% 4% 13% Accrued liabilities 225 335 335 335 2,209 335 4% 5% 5% 5% 0% 5% Income taxes payable 110 110 110 110 - 110 2% 2% 2% 2% 0% 2% DIT liabilities-current 85 85 85 85 - 85 1% 1% 1% 1% 0% 1% - 72 72 72 72 72 0% 1% 1% 1% 0% 1% Bonds-current portion 100 100 100 100 - 100 2% 1% 1% 1% 0% 1% Notes and loans payable-current 250 275 275 275 25 275 4% 4% 4% 4% 0% 4% 50 50 50 50 156,145 50 1% 1% 1% 1% 18% 1% 1,700 1,907 1,907 1,907 195,692 1,907 30% 28% 28% 28% 23% 28% 520 720 720 720 200 720 9% 11% 11% 11% 0% 11% - 728 728 728 38,207 728 0% 11% 11% 11% 4% 11% Bonds, net discount [or, plus premium] 325 325 325 325 - 325 6% 5% 5% 5% 0% 5% DIT liabilities-noncurrent 125 125 125 125 39,815 125 2% 2% 2% 2% 5% 2% 30 30 30 30 6,388 30 1% 0% 0% 0% 1% 0% Total noncurrent liabilities 1,000 1,928 1,928 1,928 84,610 1,928 18% 28% 28% 28% 10% 28% Total liabilities 2,700 3,835 3,835 3,835 280,302 3,835 47% 56% 56% 56% 33% 56% Capital lease obligation-current portion Other current liabilities Total current liabilities Notes and loans payable-noncurrent Capital lease obligation-noncurrent Other noncurrent liabilities Shareholders' Equity Preferred (or preference) stock 230 230 230 230 - 230 4% 3% 3% 3% 0% 3% Premium on preferred stock 25 25 25 25 - 25 0% 0% 0% 0% 0% 0% Common stock (par or stated value) 50 50 50 50 148,114 50 1% 1% 1% 1% 17% 1% 2,215 2,215 2,215 2,215 - 2,215 39% 32% 32% 32% 0% 32% (270) (270) (270) (270) - (270) -5% -4% -4% -4% 0% -4% (65) (65) (65) (65) - (65) -1% -1% -1% -1% 0% -1% 1,200 1,195 1,195 1,195 427,690 1,195 21% 17% 17% 17% 50% 17% Noncontrolling interest in consolid subsid (120) (120) (120) (120) 586 (120) -2% -2% -2% -2% 0% -2% Accum other comprehensive income (loss) (265) (265) (265) (265) (2,096) (265) -5% -4% -4% -4% 0% -4% Total stockholders' equity 3,000 2,995 2,995 2,995 574,294 2,995 53% 44% 44% 44% 67% 44% Total liabilities and stockholders' equity 5,700 6,830 6,830 6,830 854,596 6,830 100% 100% 100% 100% 100% 100% 165.200 165.200 165.200 165.200 165.200 165.200 Additional paid-in capital (APIC) Less: Treasury stock Unearned stock-based compensation Retained earnings Common shares outstanding (in millions) Consolidated IS-Common-size analysis (US dollars in millions, except per share amounts) Fiscal year ended (after analysis adjustments) 2010 2011 2012 2013 2014 Fiscal year ended (after analysis adjustments) 2015 2010 2011 2012 2013 2014 2015 Sales, net returns and allowances 8,900 8,900 8,900 8,900 1,516 8,900 100% 100% 100% 100% 100% 100% COS (FIFO?LIFO?Avg cost assumption) 5,340 5,440 5,440 5,440 1,247 5,440 60% 61% 61% 61% 82% 61% Gross profit 3,560 3,460 3,460 3,460 270 3,460 40% 39% 39% 39% 18% 39% SG&A expenses (excl D&A and advertising) 900 760 760 760 (8) 760 10% 9% 9% 9% -1% 9% R&D expense 450 450 450 450 - 450 5% 5% 5% 5% 0% 5% Advertising expense 190 190 190 190 - 190 2% 2% 2% 2% 0% 2% D&A 250 330 330 330 178 330 3% 4% 4% 4% 12% 4% Other operating expenses (income) 270 270 270 270 136 270 3% 3% 3% 3% 9% 3% Total operating expenses 2,060 2,000 2,000 2,000 306 2,000 23% 22% 22% 22% 20% 22% Operating income 1,500 1,460 1,460 1,460 (36) 1,460 17% 16% 16% 16% -2% 16% (100) (183) (183) (183) (83) (183) -1% -2% -2% -2% -5% -2% Gain (loss) on spin-off of subsidiary 50 - - - - - 1% 0% 0% 0% 0% 0% Gain (loss) on debt restruct/early extinguish 20 - - - - - 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 (90) (10) (10) (10) (10) (10) -1% 0% 0% 0% -1% 0% Impairment loss on goodwill (60) - - - - - -1% 0% 0% 0% 0% 0% Impairment of other intangibles (40) (5) (5) (5) (5) (5) 0% 0% 0% 0% 0% 0% Restructuring charge (80) (30) (30) (30) (30) (30) -1% 0% 0% 0% -2% 0% (300) (228) (228) (228) (128) (228) -3% -3% -3% -3% -8% -3% 1,200 1,232 1,232 1,232 (164) 1,232 13% 14% 14% 14% -11% 14% Taxes on income from continuing operations 480 475 475 475 498 475 5% 5% 5% 5% 33% 5% Income from contin oper incl noncontrol int's 720 757 757 757 (662) 757 8% 9% 9% 9% -44% 9% 20 20 20 20 20 20 0% 0% 0% 0% 1% 0% 700 737 737 737 (682) 737 8% 8% 8% 8% -45% 8% Operating expenses 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 Analysts do not typically perform common size analysis of cash flow statements (SCFs) because such analyses are not particularly useful. Consolidated Cash Flows Statements (SCFs) (US dollars in millions) Fiscal year ended (without analysis adjustments) 2010 2011 2012 2013 2014 2015 Prepare SCF schedule here using the Company's FS, as presented in its Forms 10-K, WITHOUT MAKING ANY analysis adjustments. Cash flows from operating activities Income from contin oper, incl noncontrol int 720 690 720 700 (666) 690 Depreciation and amortization (D&A) 250 250 250 250 98 250 Stock-based compensation expense - - - - - - Gain (loss) on spin-off of subsidiary 50 30 60 40 70 30 Gain (loss) on debt restruct/early extinguish 20 20 20 20 20 20 Adjustments to reconcile income to OCF Gain (loss) on disposal of invest sec's AFS - 30 30 30 30 30 Gain (loss) on disposal of PP&E - (40) (40) (40) (40) (40) Impairment loss on PP&E (90) (90) (90) (90) (90) (90) Impairment loss on goodwill (60) (60) (60) (60) (60) (60) Impairment of other intangibles (40) (40) (40) (40) (40) (40) Restructuring charge (80) (80) (80) (80) (80) (80) Changes in operating working capital: AR, net 10 30 20 10 (30) (20) Inventories 20 10 30 20 10 (30) DIT assets 30 20 10 30 20 10 Other current assets (10) 30 20 10 30 20 AP (20) (10) 30 20 10 30 Accrued liabilities (30) (20) (10) 30 20 10 Income taxes payable 10 (30) (20) (10) 30 20 DIT liabilities-current 20 10 (30) (20) (10) 30 Other current liabilities 30 20 10 (30) (20) (10) Operating cash inflow (outflow) (OCF) 830 770 830 790 (698) 770 OCF-to-NI before D&A ratio 0.9 0.8 0.9 0.8 1.2 0.8 Labels and amounts in blue shaded cells are illustrative only. Modify these cells to reflect the company's SCF. Add rows if necessary; delete any unused rows. (Hide this comment before copying-and-pasting an "image" of this worksheet into the final report.) (US dollars in millions) Fiscal year ended 2010 2011 2012 2013 2014 2015 Cash flows from investing activities Capital expenditures (200) (200) (200) (200) (200) (200) Sale of property and non-core product lines 50 50 50 50 50 50 Purch of marketable securities, invest's AFS (65) (80) (65) (90) (70) (95) Sales of marketable securities, invest's AFS 55 70 55 80 60 85 Pymnt for acquisitions, net of cash acquired (60) (60) (60) (60) (60) (60) Other, net (80) (80) (80) (80) (80) (80) (300) (300) (300) (300) (300) (300) Net cash provided (used) by invest activities Cash flows from financing activities Principal payments on debt (490) (490) (490) (490) (490) (490) 130 130 130 130 130 130 (112) (112) (112) (112) (112) (112) (88) (88) (88) (88) (88) (88) 30 30 30 30 30 30 (10) (10) (10) (10) (10) (10) (540) (540) (540) (540) (540) (540) 10 70 10 50 (10) 70 Net increase in cash and cash equivalents - - - - (1,548) - Cash and cash equivalents at begin of FY 370 370 370 370 370 (1,178) Cash and cash equivalents at end of FY 370 370 370 370 (1,178) (1,178) Income taxes paid 400 400 400 400 400 400 Interest paid 200 200 200 200 200 200 50 50 50 50 50 50 Proceeds from issuance of debt Dividends paid-preferred and common Purchases of treasury shares Proceeds exer of ESOs, excess tax benefits Other, net Net cash used in financing activities Effect exchng rate changes on cash/equiv's Supplemental cash flow information [Other] 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. Sixth prior-year data is included only to permit computation of fifth prioryear financial ratios that use balance sheet averages. Hide this comment and set this column's WIDTH to 0.1 BEFORE copying-andpasting picture images of financial ratios into Section 8 of the final report. For each ratio, comment in this column on the (1) trend and (2) comparison with the key competitor and industry average ra (i) its likely business or financial implications and (ii) the relationship of the trends to trends in other ratios included in this wor Do not define the ratios (e.g., "this ratio indicates whether the company is able to pay its S-T obligations as they become due Do not only "state the obvious" (e.g., "the ratio's trend is favorable" or "the company's ratio compare's unfavorably to the indu - Write in clear and complete sentences (subject, verb, punctuation, etc). - Spell-check your comments. - Comments must fit within the space provided, without widening columns, increasing row heights, or other format All cells in this workbook tab are already properly formatted for correct and professional-looking display of ratios and FS amo Scroll to the bottom of the worksheet to view the assignment grading rubric. Financial Ratio AnalysisInput all dollar amounts in MILLIONS, NOT thousands LIQUIDITY Fiscal year ended (after analysis adjustments) (U.S. dollars in millions, except per-share amounts) 2010 2011 2012 2013 2014 2015 Current (working capital) ratio NA 1.3 1.3 1.3 1.3 1.3 Total current assets NA 2,470 2,470 2,470 264,034 2,470 Total current liabilities NA 1,907 1,907 1,907 195,692 1,907 Acid-test (quick) ratio NA 0.6 0.6 0.6 0.7 0.6 Cash and cash equivalents NA 370 370 370 93,329 370 160 Investment securities AFS (market value) NA 160 160 160 19,547 AR, net NA 620 620 620 28,322 620 Total cash-and-equivalents, invest. securities, and AR NA 1,150 1,150 1,150 141,198 1,150 Total current liabilities NA 1,907 1,907 1,907 195,692 1,907 Average collection period (days) (see also turnover ratio) NA 25 25 25 3,436 585 AR, net 620 620 620 620 28,322 620 Average AR, net NA 620 620 620 14,471 14,471 Sales, net NA 8,900 8,900 8,900 1,516 8,900 Average daily sales (assume 360-day year) NA 24.7 24.7 24.7 4.2 24.7 Average days to sell inventory (see also turnover ratio) NA 68 72 72 1,888 433 Inventory 975 1,080 1,080 1,080 11,998 1,080 Average inventory NA 1,028 1,080 1,080 6,539 6,539 COS NA 5,440 5,440 5,440 1,247 5,440 Average daily COS (assume 360-day year) NA 15.1 15.1 15.1 3.5 15.1 Avg days purch in AP, accr'd liab (see also AP turnover ratio) NA 59 62 62 5,328 1,030 1,105 1,215 1,215 1,215 39,450 1,215 Average AP and accrued liabilities NA 1,160 1,215 1,215 20,333 20,333 COS and total operating expenses NA 7,440 7,440 7,440 1,552 7,440 Less D&A [OCF section of SCF provides] NA 330 330 330 178 330 Total "cash costs" NA 7,110 7,110 7,110 1,374 7,110 Average daily "cash costs" (assume 360-day year) NA 19.8 19.8 19.8 3.8 19.8 Net operating cycle (days) NA 34 35 35 (4) (12) AP and accrued liabilities Key Competi Industry tor average ratios ratios 1.3 1.3 0.6 0.6 24 136 65 71 61 255 29 (48) Do not only "state the obvious" (e.g., "the ratio's trend is favorable" or "the company's ratio compare's unfavorably to the indu - Write in clear and complete sentences (subject, verb, punctuation, etc). - Spell-check your comments. - Comments must fit within the space provided, without widening columns, increasing row heights, or other format All cells in this workbook tab are already properly formatted for correct and professional-looking display of ratios and FS amo Scroll to the bottom of the worksheet to view the assignment grading rubric. Sixth prior-year data is included only to permit computation of fifth prioryear financial ratios that use balance sheet averages. Hide this comment and set this column's WIDTH to 0.1 BEFORE copying-andpasting picture images of financial ratios into Section 8 of the final report. Financial Ratio AnalysisInput all dollar amounts in MILLIONS, NOT thousands LIQUIDITY (U.S. dollars in millions, except per-share amounts) 2010 CAPITAL STRUCTURE AND SOLVENCY (U.S. dollars in millions, except per-share amounts) 2015 Key Competi Industry tor average ratios ratios 2015 Key Competi Industry tor average ratios ratios Fiscal year ended (after analysis adjustments) 2011 2012 2013 2014 Fiscal year ended (after analysis adjustments) 2010 2011 2012 2013 2014 Total debt-to-equity (total debt) ratio NA 1.49 1.49 1.49 0.49 1.49 Total (current and noncurrent) liabilities and preferred stock NA 4,090 4,090 4,090 280,302 4,090 2,740 Total common (only) stockholders' equity NA 2,740 2,740 2,740 574,294 L-T debt-to-equity ratio NA 0.80 0.80 0.80 0.15 0.80 Total noncurrent liabilities and preferred stock NA 2,183 2,183 2,183 84,610 2,183 Total common (only) stockholders' equity NA 2,740 2,740 2,740 574,294 2,740 Times interest earned (interest coverage) ratio NA 7.7 7.7 7.7 - Income from continuing operations before income taxes NA 1,232 1,232 1,232 Interest expense, net of interest income NA 183 183 183 83 183 Income from cont oper's before taxes and interest exp (EBIT) NA 1,415 1,415 1,415 (81) 1,415 OCF-to-L-T debt ratio NA 0.40 0.43 0.41 - 0.40 Operating cash flow (OCF) [from SCF] NA 770 830 790 (698) 770 Total noncurrent liabilities NA 1,928 1,928 1,928 84,610 1,928 (164) 7.7 1.80 1.77 1.00 0.97 5.4 5.6 0.52 0.50 1,232 Do not only "state the obvious" (e.g., "the ratio's trend is favorable" or "the company's ratio compare's unfavorably to the indu - Write in clear and complete sentences (subject, verb, punctuation, etc). - Spell-check your comments. - Comments must fit within the space provided, without widening columns, increasing row heights, or other format All cells in this workbook tab are already properly formatted for correct and professional-looking display of ratios and FS amo Scroll to the bottom of the worksheet to view the assignment grading rubric. Sixth prior-year data is included only to permit computation of fifth prioryear financial ratios that use balance sheet averages. Hide this comment and set this column's WIDTH to 0.1 BEFORE copying-andpasting picture images of financial ratios into Section 8 of the final report. Financial Ratio AnalysisInput all dollar amounts in MILLIONS, NOT thousands LIQUIDITY (U.S. dollars in millions, except per-share amounts) 2010 RETURN ON INVESTMENT (U.S. dollars in millions, except per-share amounts) 2015 Key Competi Industry tor average ratios ratios 2015 Key Competi Industry tor average ratios ratios Fiscal year ended (after analysis adjustments) 2011 2012 2013 2014 Fiscal year ended (after analysis adjustments) 2010 2011 2012 2013 2014 Return on assets (ROA) ratio NA 13.6% 12.4% 12.4% -0.1% 0.2% Income from continuing operations before income taxes NA 1,232 1,232 1,232 (164) 1,232 Interest expense, net of interest income NA 183 183 183 83 183 Income tax provision (i.e., taxes on income from contin oper's) NA 475 475 475 498 475 Income from continuing operations (after taxes) NA 737 737 737 (682) 737 Combined effective income tax rate NA 38.6% 38.6% 38.6% -303.4% 38.6% 5,700 6,830 6,830 6,830 854,596 6,830 Average total assets Total assets NA 6,265 6,830 6,830 430,713 430,713 Return on total common stockholders' equity (ROCE) ratio NA 26.4% 26.5% 26.5% -0.2% 0.3% Income from continuing operations (after analysis adjust's) NA 737 737 737 (682) 737 Less Dividends on preferred stock, net of any tax benefit NA 12 12 12 12 Income from contin oper's available to common stockholders NA 725 725 725 (694) 2,745 2,740 2,740 2,740 574,294 Total common (only) stockholders' equity Average total common (only) stockholders' equity NA 2,743 2,740 2,740 288,517 11.2% 11.4% 28.0% 27.8% Amounts in blue shaded cells are illustrative only. Obtain 12 amounts of dividends on preferred stock, if any, from company's 725 statements of changes in stockholders' equity, included in its Annual Reports on Form 10-K. (Hide this comment before 2,740 copying-and-pasting an "image" of this worksheet into final report.) 288,517 Do not only "state the obvious" (e.g., "the ratio's trend is favorable" or "the company's ratio compare's unfavorably to the indu - Write in clear and complete sentences (subject, verb, punctuation, etc). - Spell-check your comments. - Comments must fit within the space provided, without widening columns, increasing row heights, or other format All cells in this workbook tab are already properly formatted for correct and professional-looking display of ratios and FS amo Scroll to the bottom of the worksheet to view the assignment grading rubric. Sixth prior-year data is included only to permit computation of fifth prioryear financial ratios that use balance sheet averages. Hide this comment and set this column's WIDTH to 0.1 BEFORE copying-andpasting picture images of financial ratios into Section 8 of the final report. Financial Ratio AnalysisInput all dollar amounts in MILLIONS, NOT thousands LIQUIDITY (U.S. dollars in millions, except per-share amounts) 2010 OPERATING PERFORMANCE (U.S. dollars in millions, except per-share amounts) 2015 Key Competi Industry tor average ratios ratios 2015 Key Competi Industry tor average ratios ratios Fiscal year ended (after analysis adjustments) 2011 2012 2013 2014 Fiscal year ended (after analysis adjustments) 2010 2011 2012 2013 2014 Gross margin ratio NA 38.9% 38.9% 38.9% 17.8% 38.9% Sales, net NA 8,900 8,900 8,900 1,516 8,900 COS NA 5,440 5,440 5,440 1,247 5,440 SG&A-to-sales ratio NA 8.5% 8.5% 8.5% -0.6% 8.5% SG&A expense (exclud. D&A, advertising and R&D expense) NA 760 760 760 (8) 760 Sales, net NA 8,900 8,900 8,900 1,516 8,900 R&D-to-sales ratio NA 5.1% 5.1% 5.1% 0.0% 5.1% R&D expense NA 450 450 450 - 450 Sales, net NA 8,900 8,900 8,900 1,516 8,900 Advertising-to-sales ratio NA 2.1% 2.1% 2.1% 0.0% 2.1% Advertising expense NA 190 190 190 - 190 Sales, net NA 8,900 8,900 8,900 1,516 8,900 Other operating expense-to-sales ratio NA 3.0% 3.0% 3.0% 9.0% 3.0% Total other expense (income) NA 270 270 270 136 270 Sales, net NA 8,900 8,900 8,900 1,516 8,900 Operating margin ratio NA 16.4% 16.4% 16.4% -2.4% 16.4% Operating income NA 1,460 1,460 1,460 (36) 1,460 Sales, net NA 8,900 8,900 8,900 1,516 8,900 Pre-tax operating margin ratio NA 13.8% 13.8% 13.8% -10.8% 13.8% Income from continuing operations before income taxes NA 1,232 1,232 1,232 (164) 1,232 Sales, net NA 8,900 8,900 8,900 1,516 8,900 Net margin ratio NA 8.5% 8.5% 8.5% -43.7% 8.5% Income from contin oper's (after taxes) incl noncontrol int's NA 757 757 757 (662) 757 Sales, net NA 8,900 8,900 8,900 1,516 8,900 35.5% 36.0% 9.3% 9.2% 4.4% 4.5% 1.9% 1.9% 3.3% 3.3% 14.9% 15.1% 12.1% 12.3% 7.5% 7.6% Do not only "state the obvious" (e.g., "the ratio's trend is favorable" or "the company's ratio compare's unfavorably to the indu - Write in clear and complete sentences (subject, verb, punctuation, etc). - Spell-check your comments. - Comments must fit within the space provided, without widening columns, increasing row heights, or other format All cells in this workbook tab are already properly formatted for correct and professional-looking display of ratios and FS amo Scroll to the bottom of the worksheet to view the assignment grading rubric. Sixth prior-year data is included only to permit computation of fifth prioryear financial ratios that use balance sheet averages. Hide this comment and set this column's WIDTH to 0.1 BEFORE copying-andpasting picture images of financial ratios into Section 8 of the final report. Financial Ratio AnalysisInput all dollar amounts in MILLIONS, NOT thousands LIQUIDITY 2015 Key Competi Industry tor average ratios ratios 2015 Key Competi Industry tor average ratios ratios Fiscal year ended (after analysis adjustments) (U.S. dollars in millions, except per-share amounts) 2010 ASSET UTILIZATION (U.S. dollars in millions, except per-share amounts) AR turnover ratio Sales, net 2011 2012 2013 2014 Fiscal year ended (after analysis adjustments) 2010 2011 2012 2013 NA 14.4 14.4 14.4 2014 0.1 0.6 8,900 NA 8,900 8,900 8,900 1,516 620 620 620 620 28,322 620 Average accounts receivable, net NA 620 620 620 14,471 14,471 Inventory turnover ratio NA 5.3 5.0 5.0 0.2 0.8 5,440 AR, net COS NA 5,440 5,440 5,440 1,247 975 1,080 1,080 1,080 11,998 1,080 Average inventory NA 1,028 1,080 1,080 6,539 6,539 AP and accrued liabilities turnover ratio NA 6.1 5.9 5.9 0.1 0.3 7,110 Inventory, at LOCOM "Cash costs" [from above] NA 7,110 7,110 7,110 1,374 1,105 1,215 1,215 1,215 39,450 1,215 Average AP and accrued liabilities NA 1,160 1,215 1,215 20,333 20,333 PP&E turnover ratio NA 3.0 2.5 2.5 - - Sales, net NA 8,900 8,900 8,900 1,516 8,900 AP and accrued liabilities 2,490 3,515 3,515 3,515 495,426 3,515 Average PP&E, net PP&E, net of accumulated depreciation NA 3,003 3,515 3,515 249,471 249,471 Total asset turnover ratio NA 1.4 1.3 1.3 - - Sales, net NA 8,900 8,900 8,900 1,516 8,900 Total assets 5,700 Average t