• "Invent Cost-Flow Analysis Adj"(completeand"post" analysis adjustments to "BS Analysis Adjustments" and "IS Analysis Adjustments" 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 - - - - - - - - - - - - - - - - 2,923 73 222 5,485 PP&E, at cost 12,119 ='Oper Lease Adjust 2'!G82 Less: Accumulated depreciation of PP&E (3,613) PP&E, net 8,506 Goodwill, net impairment write-downs - Other intangibles, net amort., impairment - DIT assets-noncurrent - Other noncurrent assets Total assets - - - - - - - - - - - - - - - - 474 $ 14,465 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 ='Oper Lease Adjust 2'!H83 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 ='Oper Lease Adjust 2'!H84 - - - - - - Bonds, net discount [or, plus premium] DIT liabilities-noncurrent 214 Other noncurrent liabilities 339 Total noncurrent liabilities 4,415 - - - - - - - - Total liabilities 6,870 - - - - - - - - 7,595 - - - - - - - - Total liabilities and stockholders' equity $ 14,465 - - - - - - - - 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 Other current assets Total current assets 2,923 73 222 5,485 PP&E, at cost 12,119 Less: Accumulated depreciation of PP&E (3,613) PP&E, net 8,506 Goodwill, net impairment write-downs - Other intangibles, net amort., impairment - DIT assets-noncurrent - Other noncurrent assets Total assets 474 $ 14,465 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 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 Bonds, net discount [or, plus premium] - DIT liabilities-noncurrent 214 Other noncurrent liabilities 339 Total noncurrent liabilities 4,415 Total liabilities 6,870 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 $ 14,465 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 - - - - - - - - - - - - - - - - 3,036 77 252 5,642 PP&E, at cost 12,895 ='Oper Lease Adjust 3'!G82 Less: Accumulated depreciation of PP&E (4,203) PP&E, net 8,692 Goodwill, net impairment write-downs - Other intangibles, net amort., impairment - DIT assets-noncurrent - Other noncurrent assets Total assets - - - - - - - - - - - - - - - - 515 $ 14,849 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 ='Oper Lease Adjust 3'!H83 400 - Total current liabilities 2,781 - - Notes and loans payable-noncurrent 1,494 Capital lease obligation-noncurrent 2,018 ='Oper Lease Adjust 3'!H84 - - - - - - Bonds, net discount [or, plus premium] DIT liabilities-noncurrent 256 Other noncurrent liabilities 450 Total noncurrent liabilities 4,218 - - - - - - - - Total liabilities 6,999 - - - - - - - - 7,850 - - - - - - - - Total liabilities and stockholders' equity $ 14,849 - - - - - - - - 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 Other current assets Total current assets 3,036 77 252 5,642 PP&E, at cost 12,895 Less: Accumulated depreciation of PP&E (4,203) PP&E, net 8,692 Goodwill, net impairment write-downs - Other intangibles, net amort., impairment - DIT assets-noncurrent - Other noncurrent assets Total assets 515 $ 14,849 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 Other current liabilities $ 1,138 1,030 127 86 400 - Total current liabilities 2,781 Notes and loans payable-noncurrent 1,494 Capital lease obligation-noncurrent 2,018 Bonds, net discount [or, plus premium] - DIT liabilities-noncurrent 256 Other noncurrent liabilities 450 Total noncurrent liabilities 4,218 Total liabilities 6,999 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 $ 14,849 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 - - - - - - - - - - - - - - - 3,216 DIT assets-current 109 Other current assets 299 Total current assets - 4,829 PP&E, at cost 13,462 ='Oper Lease Adjust 4'!G82 Less: Accumulated depreciation of PP&E (4,557) PP&E, net 8,905 Goodwill, net impairment write-downs - Other intangibles, net amort., impairment - DIT assets-noncurrent - Other noncurrent assets Total assets - - - - - - - - - - - - - - - - 414 $ 14,148 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 ='Oper Lease Adjust 4'!H83 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 ='Oper Lease Adjust 4'!H84 - - - - - - Bonds, net discount [or, plus premium] DIT liabilities-noncurrent 423 Other noncurrent liabilities 460 Total noncurrent liabilities 5,033 - - - - - - - - Total liabilities 7,640 - - - - - - - - 6,508 - - - - - - - - Total liabilities and stockholders' equity $ 14,148 - - - - - - - - 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 3,216 DIT assets-current 109 Other current assets 299 Total current assets 4,829 PP&E, at cost 13,462 Less: Accumulated depreciation of PP&E (4,557) PP&E, net 8,905 Goodwill, net impairment write-downs - Other intangibles, net amort., impairment - DIT assets-noncurrent - Other noncurrent assets Total assets 414 $ 14,148 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 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 Bonds, net discount [or, plus premium] - DIT liabilities-noncurrent 423 Other noncurrent liabilities 460 Total noncurrent liabilities 5,033 Total liabilities 7,640 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 $ 14,148 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 4,719 PP&E, at cost 13,980 Less: Accumulated depreciation of PP&E (5,108) PP&E, net 8,872 Goodwill, net impairment write-downs - Other intangibles, net amort., impairment - DIT assets-noncurrent - Other noncurrent assets Total assets - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3,748 DIT assets-current Total current assets - 314 $ 13,905 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] - - - - - - - - - DIT liabilities-noncurrent 362 Other noncurrent liabilities 512 Total noncurrent liabilities 5,322 - - - - - - - - Total liabilities 7,857 - - - - - - - - 6,048 - - - - - - - - Total liabilities and stockholders' equity $ 13,905 - - - - - - - - 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 3,748 DIT assets-current 122 Other current assets 312 Total current assets 4,719 PP&E, at cost 13,980 Less: Accumulated depreciation of PP&E (5,108) PP&E, net 8,872 Goodwill, net impairment write-downs - Other intangibles, net amort., impairment - DIT assets-noncurrent - Other noncurrent assets Total assets 314 $ 13,905 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 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] - DIT liabilities-noncurrent 362 Other noncurrent liabilities 512 Total noncurrent liabilities 5,322 Total liabilities 7,857 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 $ 13,905 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 5,292 PP&E, at cost 14,124 Less: Accumulated depreciation of PP&E (5,379) PP&E, net 8,745 Goodwill, net impairment write-downs - Other intangibles, net amort., impairment - DIT assets-noncurrent - Other noncurrent assets Total assets - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3,874 DIT assets-current Total current assets - 341 $ 14,378 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] - - - - - - - - - DIT liabilities-noncurrent 382 Other noncurrent liabilities 560 Total noncurrent liabilities 5,664 - - - - - - - - Total liabilities 8,400 - - - - - - - - 5,978 - - - - - - - - Total liabilities and stockholders' equity $ 14,378 - - - - - - - - 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 3,874 DIT assets-current 142 Other current assets 305 Total current assets 5,292 PP&E, at cost 14,124 Less: Accumulated depreciation of PP&E (5,379) PP&E, net 8,745 Goodwill, net impairment write-downs - Other intangibles, net amort., impairment - DIT assets-noncurrent - Other noncurrent assets Total assets 341 $ 14,378 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 94 139 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] - DIT liabilities-noncurrent 382 Other noncurrent liabilities 560 Total noncurrent liabilities 5,664 Total liabilities 8,400 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 $ 14,378 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 77 109 122 142 222 252 299 312 305 5,485 5,642 4,829 4,719 5,292 PP&E, at cost 12,119 12,895 13,462 13,980 14,124 Less: Accumulated depreciation of PP&E (3,613) (4,203) (4,557) (5,108) (5,379) 8,506 8,692 8,905 8,872 8,745 Goodwill, net impairment write-downs - - - - - Other intangibles, net amort., impairment - - - - - DIT assets-noncurrent - - - - - 474 515 414 314 341 Inventories, at FIFO DIT assets-current Other current assets Total current assets PP&E, net Other noncurrent assets Total assets $ 14,465 $ 14,849 $ 14,148 $ 13,905 $ 14,378 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 - - - - - 78 86 94 105 139 Bonds-current portion - - - - - Notes and loans payable-current - 400 - - - Other current liabilities - - - - - Total current liabilities 2,455 2,781 2,607 2,535 2,736 Notes and loans payable-noncurrent 1,894 1,494 2,141 2,492 2,792 Capital lease obligation-noncurrent 1,968 2,018 2,009 1,956 1,930 - - - - - DIT liabilities-noncurrent 214 256 423 362 382 Other noncurrent liabilities 339 450 460 512 560 Total noncurrent liabilities 4,415 4,218 5,033 5,322 5,664 Total liabilities 6,870 - 6,999 - 7,640 - 7,857 - 8,400 - 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 14,465 14,849 14,148 13,905 14,378 CHECK: A - (L + E) (S/B -0-) - - - - - Accrued liabilities Income taxes payable DIT liabilities-current Capital lease obligation-current portion 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 6,498 - - - - - - - - Operating expenses SG&A expenses (excl D&A and advertising) 3,105 =-'Oper Lease Adjust 1'!H97 R&D expense - Advertising expense 846 D&A 688 ='Oper Lease Adjust 1'!G95 Other operating expenses (income) - Total operating expenses 4,639 - - - - - - - - Operating income 1,859 - - - - - - - - Other income (expense) Interest expense, net of interest income (301) =-'Oper Lease Adjust 1'!G94 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 (301) - - - - - - - - 1,558 - - - - - - - - Taxes on income from continuing operations 585 =-'Oper Le - - - Income from contin oper incl noncontrol int's 973 #VALUE! - - - - - - - - - - - - - - - #VALUE! - - - - - - - Less: Income attrib to noncontrol interests Income from continuing operations 973 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 Disr Before-tax amounts from above: Income from cont. oper's before taxes Interest expense, net Operating profit before income taxes - (301) =-'Oper Le $ 1,859 #VALUE! - - - - - - - - - - - - - - - - - - - - - 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 10,680 Gross profit 6,498 Operating expenses SG&A expenses (excl D&A and advertising) 3,105 R&D expense - Advertising expense 846 D&A 688 Other operating expenses (income) - Total operating expenses 4,639 Operating income 1,859 Other income (expense) Interest expense, net of interest income (301) 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) (301) Income from cont. oper's before taxes 1,558 Taxes on income from continuing operations 585 Income from contin oper incl noncontrol int's 973 Less: Income attrib to noncontrol interests Income from continuing operations $ 973 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 1,558 (301) $ 1,859 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 7,032 - - - - - - - - Operating expenses SG&A expenses (excl D&A and advertising) 3,321 =-'Oper Lease Adjust 2'!H97 R&D expense - Advertising expense 869 D&A 750 ='Oper Lease Adjust 2'!G95 Other operating expenses (income) - Total operating expenses 4,940 - - - - - - - - Operating income 2,092 - - - - - - - - Other income (expense) Interest expense, net of interest income (304) =-'Oper Lease Adjust 2'!G94 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 Taxes on income from continuing operations (304) - - - - - - - - 1,788 - - - - - - - - - - - #VALUE! - - - - - - - - - - - - - - - #VALUE! - - - - - - - 668 =-'Oper Le Income from contin oper incl noncontrol int's 1,120 Less: Income attrib to noncontrol interests Income from continuing operations 1,120 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 Disr Before-tax amounts from above: Income from cont. oper's before taxes Interest expense, net Operating profit before income taxes - (304) =-'Oper Le $ 2,092 #VALUE! - - - - - - - - - - - - - - - - - - - - - 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 11,359 Gross profit 7,032 Operating expenses SG&A expenses (excl D&A and advertising) 3,321 R&D expense - Advertising expense 869 D&A 750 Other operating expenses (income) - Total operating expenses 4,940 Operating income 2,092 Other income (expense) Interest expense, net of interest income (304) 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) (304) Income from cont. oper's before taxes 1,788 Taxes on income from continuing operations 668 Income from contin oper incl noncontrol int's 1,120 Less: Income attrib to noncontrol interests Income from continuing operations $ 1,120 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 1,788 (304) $ 2,092 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 7,179 - - - - - - - - Operating expenses SG&A expenses (excl D&A and advertising) 3,281 =-'Oper Lease Adjust 3'!H97 R&D expense - Advertising expense 962 D&A 778 ='Oper Lease Adjust 3'!G95 Other operating expenses (income) - Total operating expenses 5,021 - - - - - - - - Operating income 2,158 - - - - - - - - Other income (expense) Interest expense, net of interest income (299) =-'Oper Lease Adjust 3'!G94 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 Taxes on income from continuing operations (299) - - - - - - - - 1,859 - - - - - - - - - - - #VALUE! - - - - - - - - - - - - - - - #VALUE! - - - - - - - 692 =-'Oper Le Income from contin oper incl noncontrol int's 1,167 Less: Income attrib to noncontrol interests Income from continuing operations 1,167 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 Disr Before-tax amounts from above: Income from cont. oper's before taxes Interest expense, net Operating profit before income taxes - (299) =-'Oper Le $ 2,158 #VALUE! - - - - - - - - - - - - - - - - - - - - - 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 11,625 Gross profit 7,179 Operating expenses SG&A expenses (excl D&A and advertising) 3,281 R&D expense - Advertising expense 962 D&A 778 Other operating expenses (income) - Total operating expenses 5,021 Operating income 2,158 Other income (expense) Interest expense, net of interest income (299) 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) (299) Income from cont. oper's before taxes 1,859 Taxes on income from continuing operations 692 Income from contin oper incl noncontrol int's 1,167 Less: Income attrib to noncontrol interests Income from continuing operations $ 1,167 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 1,859 (299) $ 2,158 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 - - - - - - - - Operating expenses SG&A expenses (excl D&A and advertising) 3,274 =-'Oper Lease Adjust 4'!H97 R&D expense - Advertising expense 993 D&A 833 ='Oper Lease Adjust 4'!G95 Other operating expenses (income) - Total operating expenses 5,100 - - - - - - - - Operating income 1,890 - - - - - - - - Other income (expense) Interest expense, net of interest income (329) =-'Oper Lease Adjust 4'!G94 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 (329) - - - - - - - - 1,561 - - - - - - - - Taxes on income from continuing operations 575 =-'Oper Le - - - Income from contin oper incl noncontrol int's 986 #VALUE! - - - - - - - - - - - - - - - #VALUE! - - - - - - - Less: Income attrib to noncontrol interests Income from continuing operations 986 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 Disr Before-tax amounts from above: Income from cont. oper's before taxes Interest expense, net Operating profit before income taxes - (329) =-'Oper Le $ 1,890 #VALUE! - - - - - - - - - - - - - - - - - - - - - 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) 3,274 R&D expense - Advertising expense 993 D&A 833 Other operating expenses (income) - Total operating expenses 5,100 Operating income 1,890 Other income (expense) Interest expense, net of interest income (329) 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) (329) Income from cont. oper's before taxes 1,561 Taxes on income from continuing operations 575 Income from contin oper incl noncontrol int's 986 Less: Income attrib to noncontrol interests Income from continuing operations $ 986 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 1,561 (329) $ 1,890 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) (F) (G) (H) $ 19,031 COS using FIFO 12,087 Gross profit 6,944 - - - - - - - - Operating expenses SG&A expenses (excl D&A and advertising) 3,300 R&D expense - Advertising expense 1,013 D&A 889 Other operating expenses (income) - Total operating expenses 5,202 - - - - - - - - Operating income 1,742 - - - - - - - - (338) - - - - - - - - 1,404 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Other income (expense) Interest expense, net of interest income (338) 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 Taxes on income from continuing operations 515 Income from contin oper incl noncontrol int's 889 Less: Income attrib to noncontrol interests Income from continuing operations 889 Gain (loss) on discont'd oper's, net of tax Disre Income before extraordinary items 889 Disre Extraordinary gain (loss), net of tax Net income Disre $ 889 $ 1,404 - - - - - - - - (338) - - - - - - - - 1,742 - - - - - - - - Disre 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) 2013 INPUT US dollar amounts IN Adjusted balance Sales, net returns and allowances $ 19,031 COS using FIFO 12,087 Gross profit 6,944 Operating expenses SG&A expenses (excl D&A and advertising) 3,300 R&D expense - Advertising expense 1,013 D&A 889 Other operating expenses (income) - Total operating expenses 5,202 Operating income 1,742 Other income (expense) Interest expense, net of interest income (338) 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) Income from cont. oper's before taxes 1,404 Taxes on income from continuing operations 515 Income from contin oper incl noncontrol int's 889 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 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 1,404 (338) $ 1,742 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 inta 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 10,680 11,359 11,625 12,289 12,087 6,498 7,032 7,179 6,990 6,944 3,105 3,321 3,281 3,274 3,300 - - - - - Advertising expense 846 869 962 993 1,013 D&A 688 750 778 833 889 - - - - - Total operating expenses 4,639 4,940 5,021 5,100 5,202 Operating income 1,859 2,092 2,158 1,890 1,742 (301) (304) (299) (329) (338) 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 - - - - - (301) (304) (299) (329) (338) 1,558 1,788 1,859 1,561 1,404 Taxes on income from continuing operations 585 668 692 575 515 Income from contin oper incl noncontrol int's 973 1,120 1,167 986 889 - - - - - 973 1,120 1,167 - - - - - 973 1,120 1,167 986 889 - - - - - 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 $ 973 $ 986 $ 986 $ 889 1,120 $ 1,167 $ 889 1,558 1,788 1,859 1,561 1,404 (301) (304) (299) (329) (338) 1,859 2,092 2,158 1,890 1,742 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 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% 16% 15% 9% 4% 7% 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% 20% 20% 23% 27% 27% 74 73 77 109 122 142 1% 1% 1% 1% 1% 1% 212 222 252 299 312 305 2% 2% 2% 2% 2% 2% Total current assets 3,728 5,485 5,642 4,829 4,719 5,292 33% 38% 38% 34% 34% 37% PP&E, at cost 9,449 12,119 12,895 13,462 13,980 14,124 83% 84% 87% 95% 101% 98% (2,465) (3,613) (4,203) (4,557) (5,108) (5,379) -22% -25% -28% -32% -37% -37% 6,984 8,506 8,692 8,905 8,872 8,745 61% 59% 59% 63% 64% 61% - - - - - - 0% 0% 0% 0% 0% 0% 201 - - - - - 2% 0% 0% 0% 0% 0% - - - - - - 0% 0% 0% 0% 0% 0% 450 474 515 414 314 341 4% 3% 3% 3% 2% 2% 11,363 14,465 14,849 14,148 13,905 14,378 100% 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 AP 881 1,188 1,138 1,233 1,307 1,365 8% 8% 8% 9% 9% 9% Accrued liabilities 841 1,005 1,030 1,147 986 1,138 7% 7% 7% 8% 7% 8% Income taxes payable 105 184 127 133 137 94 1% 1% 1% 1% 1% 1% - - - - - - 0% 0% 0% 0% 0% 0% 17 78 86 94 105 139 0% 1% 1% 1% 1% 1% Bonds-current portion - - - - - - 0% 0% 0% 0% 0% 0% Notes and loans payable-current - - 400 - - - 0% 0% 3% 0% 0% 0% Other current liabilities - - - - - - 0% 0% 0% 0% 0% 0% Total current liabilities 1,844 2,455 2,781 2,607 2,535 2,736 16% 17% 19% 18% 18% 19% Notes and loans payable-noncurrent 1,893 1,894 1,494 2,141 2,492 2,792 17% 13% 10% 15% 18% 19% 160 1,968 2,018 2,009 1,956 1,930 1% 14% 14% 14% 14% 13% - - - - - - 0% 0% 0% 0% 0% 0% DIT liabilities-noncurrent 320 214 256 423 362 382 3% 1% 2% 3% 3% 3% Other noncurrent liabilities 407 339 450 460 512 560 4% 2% 3% 3% 4% 4% Total noncurrent liabilities 2,780 4,415 4,218 5,033 5,322 5,664 24% 31% 28% 36% 38% 39% Total liabilities 4,624 6,870 6,999 7,640 7,857 8,400 41% 47% 47% 54% 57% 58% 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% 14% 15% 17% 18% 18% (2,638) (2,639) (3,643) (5,977) (7,243) (8,052) -23% -18% -25% -42% -52% -56% - - - - - - 0% 0% 0% 0% 0% 0% 7,448 8,181 9,301 10,195 10,878 11,462 66% 57% 63% 72% 78% 80% - - - - - 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% 53% 53% 46% 43% 42% 11,363 14,465 14,849 14,148 13,905 14,378 100% 100% 100% 100% 100% 100% DIT liabilities-current Capital lease obligation-current portion Capital lease obligation-noncurrent Bonds, net discount [or, plus premium] Shareholders' Equity 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 Consolidated IS-Common-size analysis (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 10,680 11,359 11,625 12,289 12,087 63% 62% 62% 62% 64% 64% 6,055 6,498 7,032 7,179 6,990 6,944 37% 38% 38% 38% 36% 36% 2,879 3,105 3,321 3,281 3,274 3,300 18% 18% 18% 17% 17% 17% - - - - - 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 632 688 750 778 833 889 4% 4% 4% 4% 4% 5% - - - - - 0% 0% 0% 0% 0% 0% Other operating expenses (income) Total operating expenses 4,401 4,639 4,940 5,021 5,100 5,202 27% 27% 27% 27% 26% 27% Operating income 1,654 1,859 2,092 2,158 1,890 1,742 10% 11% 11% 11% 10% 9% (275) (301) (304) (299) (329) (338) -2% -2% -2% -2% -2% -2% 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) (301) (304) (299) (329) (338) -2% -2% -2% -2% -2% -2% 1,379 1,558 1,788 1,859 1,561 1,404 8% 9% 10% 10% 8% 7% Taxes on income from continuing operations 522 585 668 692 575 515 3% 3% 4% 4% 3% 3% Income from contin oper incl noncontrol int's 857 973 1,120 1,167 986 889 5% 6% 6% 6% 5% 5% - - - - - - 0% 0% 0% 0% 0% 0% 857 973 1,120 1,167 986 889 5% 6% 6% 6% 5% 5% 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