Annual Report 2007 - Financials


(in millions, except per-share data)	2007⁽³⁾			2006			2005			2004			2003
Per-Share Data
Income from continuing operations before discontinued operations and cumulative effect of change in accounting principle
Basic	$	1.21		$	1.25		$	0.91		$	0.84		$	0.38
Diluted		1.19			1.22			0.90			0.78			0.36
Earnings
Basic	$	1.21		$	1.25		$	0.96		$	0.94		$	0.38
Diluted		1.19			1.22			0.94			0.86			0.36
Common stock dividends	$	0.0425			–			–			–			–
Operations
Revenues	$	17,228		$	15,895		$	15,701		$	15,722		$	15,701
Sales		8,192			7,464			7,400			7,259			6,970
Service, outsourcing and rentals		8,214			7,591			7,426			7,529			7,734
Finance income		822			840			875			934			997
Research, development and engineering expenses		912			922			943			914			962
Selling, administrative and general expenses		4,312			4,008			4,110			4,203			4,249
Income from continuing operations before discontinued operations and cumulative effect of change in accounting principle		1,135			1,210			933			776			360
Net income		1,135			1,210			978			859			360
Financial Position
Cash, cash equivalents and short-term investments	$	1,099		$	1,536		$	1,566		$	3,218		$	2,477
Accounts and finance receivables, net		10,505			10,043			9,886			10,573			10,972
Inventories		1,305			1,163			1,201			1,143			1,152
Equipment on operating leases, net		587			481			431			398			364
Land, buildings and equipment, net		1,587			1,527			1,627			1,759			1,827
Total Assets ⁽¹⁾		23,543			21,709			21,953			24,884			24,591
Consolidated Capitalization
Short-term debt and current portion of long-term debt		525			1,485			1,139			3,074			4,236
Long-term debt		6,939			5,660			6,139			7,050			6,930

Total Debt		7,464			7,145			7,278			10,124			11,166
Minorities’ interests in equity of subsidiaries		103			108			90			80			102
Liabilities to subsidiary trusts issuing preferred securities ⁽²⁾		632			624			724			717			1,809
Series B convertible preferred stock		–			–			–			–			499
Series C mandatory convertible preferred stock		–			–			889			889			889
Common shareholders’ equity ⁽¹⁾		8,588			7,080			6,319			6,244			3,291

Total Consolidated Capitalization	$	16,787		$	14,957		$	15,300		$	18,054		$	17,756

Selected Data and Ratios
Common shareholders of record at year-end		48,261			40,372			53,017			55,152			56,326
Book value per common share	$	9.36		$	7.48		$	6.79		$	6.53		$	4.15
Year-end common stock market price	$	16.19		$	16.95		$	14.65		$	17.01		$	13.80
Employees at year-end		57,400			53,700			55,220			58,100			61,100
Gross margin		40.3	%		40.6	%		41.2	%		41.6	%		42.6	%
Sales gross margin		35.9	%		35.7	%		36.6	%		37.4	%		37.6	%
Service, outsourcing and rentals gross margin		42.7	%		43.0	%		43.3	%		43.0	%		44.3	%
Finance gross margin		61.6	%		63.7	%		62.7	%		63.1	%		63.7	%
Working capital	$	4,463		$	4,056		$	4,390		$	4,628		$	2,666
Current ratio		2.1			1.9			2.0			1.7			1.4
Cost of additions to land, buildings and equipment	$	236		$	215		$	181		$	204		$	197
Depreciation on buildings and equipment	$	262		$	277		$	280		$	305		$	299

(1) Refer to Note 1 – “New Accounting Standards and Accounting Changes” for further information representing the effect of adopting FAS 158.

(2) In 2005, includes $98 reported in other current liabilities.

(3) 2007 results include the acquisition of GIS. Refer to Note 3 – Acquisitions in the Consolidated Financial Statements.