Baker Hughes 2007 Annual Report Download - page 149

66 Baker Hughes Incorporated
NOTE 17. QUARTERLY DATA (UNAUDITED)
First Quarter Second Quarter Third Quarter Fourth Quarter Total Year
2007
Revenues $ 2,472.8 $ 2,537.5 $ 2,677.6 $ 2,740.3 $ 10,428.2
Gross profit(1) 781.1 773.2 817.6 838.7 3,210.6
Income from continuing operations 555.1 531.8 576.4 593.4 2,256.7
Net income 374.7 349.6 389.1 400.5 1,513.9
Basic earnings per share:
Income from continuing operations 1.17 1.10 1.23 1.27 4.76
Net income 1.17 1.10 1.23 1.27 4.76
Diluted earnings per share:
Income from continuing operations 1.17 1.09 1.22 1.26 4.73
Net income 1.17 1.09 1.22 1.26 4.73
Dividends per share 0.13 0.13 0.13 0.13 0.52
Common stock market prices:
High 71.94 89.36 90.73 98.67
Low 62.74 66.73 75.84 78.23
2006
Revenues $ 2,062.0 $ 2,203.3 $ 2,309.4 $ 2,452.7 $ 9,027.4
Gross profit(1) 612.1 674.6 739.7 785.7 2,812.1
Income from continuing operations 318.8 1,395.0 358.6 326.2 2,398.6
Net income 339.2 1,395.0 358.6 326.2 2,419.0
Basic earnings per share:
Income from continuing operations 0.93 4.15 1.10 1.02 7.26
Net income 0.99 4.15 1.10 1.02 7.32
Diluted earnings per share:
Income from continuing operations 0.93 4.14 1.09 1.02 7.21
Net income 0.99 4.14 1.09 1.02 7.27
Dividends per share 0.13 0.13 0.13 0.13 0.52
Common stock market prices:
High 77.44 88.60 83.65 78.25
Low 63.93 67.75 62.17 66.06
(1) Represents revenues less cost of sales, cost of services and rentals and research and engineering.
ITEM 9. CHANGES IN AND DISAGREEMENTS
WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Our management has established and maintains a system
of disclosure controls and procedures to provide reasonable
assurances that information required to be disclosed by us
in the reports that we file or submit under the Exchange Act
is recorded, processed, summarized and reported within the
time periods specified in the SEC’s rules and forms. As of
December 31, 2007, our management, including our princi-
pal executive officer and principal financial officer, conducted
an evaluation of our disclosure controls and procedures. Based
on this evaluation, our principal executive officer and our prin-
cipal financial officer concluded that our disclosure controls and
procedures as of December 31, 2007 are effective, at a reason-
able assurance level, in ensuring that the information required
to be disclosed by us in reports filed under the Exchange Act is
recorded, processed, summarized and reported within the time
periods specified in the rules and forms of the SEC.
Design and Evaluation of Internal Control Over
Financial Reporting
Pursuant to Section 404 of the Sarbanes-Oxley Act of 2002,
our management included a report of their assessment of the
design and effectiveness of our internal controls over financial
reporting as part of this Annual Report on Form 10-K for the
fiscal year ended December 31, 2007. Deloitte & Touche LLP,
the Company’s independent registered public accounting firm,
has issued an attestation report on the effectiveness of the Com-
pany’s internal control over financial reporting. Management’s
report and the independent registered public accounting firm’s
attestation report are included in Item 8 under the caption
entitled “Management’s Report on Internal Control Over Finan-
cial Reporting” and “Report of Independent Registered Public
Accounting Firm” and are incorporated herein by reference.
Changes in Internal Control Over Financial Reporting
There has been no change in our internal control over
financial reporting during the quarter ended December 31,
2007 that has materially affected, or is reasonably likely to
materially affect, our internal control over financial reporting.