Annual Report 2007 - Financials


(in millions, except per-share data)	2008			2007⁽²⁾			2006			2005			2004
Per-Share Data
Income from continuing operations
Basic	$	0.26		$	1.21		$	1.25		$	0.91		$	0.84
Diluted		0.26			1.19			1.22			0.90			0.78
Earnings
Basic	$	0.26		$	1.21		$	1.25		$	0.96		$	0.94
Diluted		0.26			1.19			1.22			0.94			0.86
Common stock dividends	$	0.17		$	0.0425			—			—			—
Operations
Revenues	$	17,608		$	17,228		$	15,895		$	15,701		$	15,722
Sales		8,325			8,192			7,464			7,400			7,259
Service, outsourcing and rentals		8,485			8,214			7,591			7,426			7,529
Finance income		798			822			840			875			934
Research, development and engineering expenses		884			912			922			943			914
Selling, administrative and general expenses		4,534			4,312			4,008			4,110			4,203
Income from continuing operations		230			1,135			1,210			933			776
Net income		230			1,135			1,210			978			859
Financial Position
Cash, cash equivalents and short-term investments	$	1,229		$	1,099		$	1,536		$	1,566		$	3,218
Accounts and finance receivables, net		9,462			10,505			10,043			9,886			10,573
Inventories		1,232			1,305			1,163			1,201			1,143
Equipment on operating leases, net		594			587			481			431			398
Land, buildings and equipment, net		1,419			1,587			1,527			1,627			1,759
Total Assets		22,447			23,543			21,709			21,953			24,884
Consolidated Capitalization
Short-term debt and current portion of long-term debt		1,610			525			1,485			1,139			3,074
Long-term debt		6,774			6,939			5,660			6,139			7,050
Total Debt		8,384			7,464			7,145			7,278			10,124
Minorities’ interests in equity of subsidiaries		120			103			108			90			80
Liabilities to subsidiary trusts issuing preferred securities⁽¹⁾		648			632			624			724			717
Series C mandatory convertible preferred stock		—			—			—			889			889
Common shareholders’ equity		6,238			8,588			7,080			6,319			6,244
Total Consolidated Capitalization	$	15,390		$	16,787		$	14,957		$	15,300		$	18,054

Selected Data and Ratios
Common shareholders of record at year-end		46,541			48,261			40,372			53,017			55,152
Book value per common share	$	7.21		$	9.36		$	7.48		$	6.79		$	6.53
Year-end common stock market price	$	7.97		$	16.19		$	16.95		$	14.65		$	17.01
Employees at year-end		57,100			57,400			53,700			55,220			58,100
Gross margin		38.9	%		40.3	%		40.6	%		41.2	%		41.6	%
Sales gross margin		33.7	%		35.9	%		35.7	%		36.6	%		37.4	%
Service, outsourcing and rentals gross margin		41.9	%		42.7	%		43.0	%		43.3	%		43.0	%
Finance gross margin		61.8	%		61.6	%		63.7	%		62.7	%		63.1	%
Working capital	$	2,700		$	4,463		$	4,056		$	4,390		$	4,628
Current ratio		1.5			2.1			1.9			2.0			1.7
Cost of additions to land, buildings and equipment	$	206		$	236		$	215		$	181		$	204
Depreciation on buildings and equipment	$	257		$	262		$	277		$	280		$	305

⁽¹⁾	For 2005, the amount includes $98 reported in other current liabilities.

⁽²⁾	2007 results include the acquisition of GIS. Refer to Note 3 – Acquisitions in the Consolidated Financial Statements.

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