Baker Hughes 2014 Annual Report Download - page 93

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Baker Hughes Incorporated
Notes to Consolidated Financial Statements
68
NOTE 7. EARNINGS PER SHARE
A reconciliation of the number of shares used for the basic and diluted earnings per share (“EPS”) computations
is as follows for the years ended December 31:
2014 2013 2012
Weighted average common shares outstanding for basic EPS 437 443 440
Effect of dilutive securities - stock plans 211
Adjusted weighted average common shares outstanding for diluted EPS 439 444 441
Future potentially dilutive shares excluded from diluted EPS:
Options with an exercise price greater than the average market price for the period 247
NOTE 8. INVENTORIES
Inventories, net of reserves of $319 million and $382 million in 2014 and 2013, respectively, are comprised of
the following at December 31:
2014 2013
Finished goods $ 3,644 $ 3,438
Work in process 227 215
Raw materials 203 231
Total inventories $ 4,074 $ 3,884
NOTE 9. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are comprised of the following at December 31:
Useful Life 2014 2013
Land $ 286 $ 294
Buildings and improvements 5 - 30 years 2,718 2,621
Machinery, equipment and other 1 - 20 years 14,274 13,380
Subtotal 17,278 16,295
Less: Accumulated depreciation 8,215 7,219
Total property, plant and equipment $ 9,063 $ 9,076
Depreciation expense relating to property, plant and equipment was $1,706 million, $1,579 million and $1,427
million in 2014, 2013 and 2012, respectively.