Baker Hughes 2014 Annual Report Download - page 4

(1) We acquired BJ Services Company
on April 28, 2010, and its financial results
from the date of acquisition are included
in our results. 2010 net income also
includes costs incurred by Baker Hughes
related to the acquisition and integration
of BJ Services.
(2) 2014 after-tax adjustments: cost
of $58 million related to restructuring our
North Africa business; cost of $39 million
for litigation settlements for labor claims;
$34 million gain from the deconsolidation
of a joint venture; severance charges
of $21 million in North America; cost of
$20 million related to a technology
royalty agreement; cost of $14 million
related to an impairment of a technology
investment; foreign exchange loss of
$12 million from the devaluation of the
Venezuelan currency.
2013 after-tax adjustments: severance
charges of $29 million; foreign exchange
loss of $23 million from the devaluation
of the Venezuelan currency; $17 million
of restructuring charges related to
Latin America.
2012 after-tax adjustments: expenses
of $28 million for internally developed
software and other information
technology assets; expenses of $15 million
from the closure of a chemical manufac-
turing facility in the United Kingdom.
2011 after-tax adjustments: a charge
of $220 million related to our decision to
minimize the use of the BJ Services trade
name; tax benefit of $214 million from the
reorganization of certain foreign subsid-
iaries; expenses of $70 million associated
with increasing the reserves for bad debt,
inventory and certain other assets as
a result of civil unrest in Libya; loss of
$26 million for the early extinguishment
of debt.
(3) Adjusted net income is a non-GAAP
measure comprised of net income
attributable to Baker Hughes excluding
the impact of certain identified items.
The Company believes that adjusted net
income is useful to investors because it
is a consistent measure of the underlying
results of the Company’s business.
Furthermore, management uses adjusted
net income as a measure of the perfor-
mance of the Company’s operations.
(in millions, except per share amounts)     
As Reported:
Revenue $ 24,551 $ 22,364 $ 21,361 $ 19,831 $ 14,414
Operating income 2,859 1,949 2,192 2,600 1,417
Net income 1,731 1,103 1,317 1,743 819
Net income attributable to Baker Hughes 1,719 1,096 1,311 1,739 812
Per share of common stock:
Net income attributable to Baker Hughes:
Basic $ 3.93 $ 2.47 $ 2.98 $ 3.99 $ 2.06
Diluted 3.92 2.47 2.97 3.97 2.06
Dividends 0.64 0.60 0.60 0.60 0.60
Number of shares:
Weighted average common shares diluted 439 444 441 438 395
Reconciliation from As Reported to Adjusted Net Income:
Net income attributable to Baker Hughes $ 1,719 $ 1,096 $ 1,311 $ 1,739 $ 812
Adjustments(2) 130 69 43 102 -
Adjusted net income(3) $ 1,849 $ 1,165 $ 1,354 $ 1,841 $ 812
Per share of common stock:
Adjusted net income(3):
Basic $ 4.23 $ 2.62 $ 3.08 $ 4.22 $ 2.06
Diluted 4.22 2.62 3.07 4.20 2.06
Cash, cash equivalents, and short-term investments $ 1,740 $ 1,399 $ 1,015 $ 1,050 $ 1,706
Working capital 7,408 6,717 6,293 6,295 5,568
Total assets 28,827 27,934 26,689 24,847 22,986
Total debt 4,133 4,381 4,916 4,069 3,885
Equity 18,730 17,912 17,268 15,964 14,286
Total debt/capitalization 18% 20% 22% 20% 21%
Number of employees (thousands) 62.0 59.4 58.8 57.7 53.1
YEARENDEDDECEMBER
FINANCIALHIGHLIGHTS
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