Baker Hughes 2009 Annual Report Download - page 91

2009 Form 10-K 17
ITEM 6. SELECTED FINANCIAL DATA
The Selected Financial Data should be read in conjunction with “Item 7. Management’s Discussion and Analysis of Financial
Condition and Results of Operations” and “Item 8. Financial Statements and Supplementary Data”, both contained herein.
Year Ended December 31,
(In millions, except per share amounts) 2009 2008 2007 2006 2005
Revenues $ 9,664 $ 11,864 $ 10,428 $ 9,027 $ 7,185
Costs and expenses:
Cost of revenues 7,397 7,954 6,845 5,876 5,024
Research and engineering 397 426 372 339 300
Marketing, general and administrative 1,120 1,046 933 878 628
Acquisition-related costs 18 – – – –
Litigation settlement – 62 – – –
Total costs and expenses 8,932 9,488 8,150 7,093 5,952
Operating income 732 2,376 2,278 1,934 1,233
Equity in income of affiliates – 2 1 60 100
Gain on sale of product line – 28 – – –
Gain on sale of interest in affiliate – – – 1,744 –
Gain (loss) on investments 4 (25) – – –
Interest expense (131) (89) (66) (69) (72)
Interest and dividend income 6 27 44 68 18
Income from continuing operations before income taxes 611 2,319 2,257 3,737 1,279
Income taxes (190) (684) (743) (1,338) (405)
Income from continuing operations 421 1,635 1,514 2,399 874
Income from discontinued operations, net of tax – – – 20 5
Income before cumulative effect of accounting change 421 1,635 1,514 2,419 879
Cumulative effect of accounting change, net of tax – – – – (1)
Net income $ 421 $ 1,635 $ 1,514 $ 2,419 $ 878
Per share of common stock:
Income from continuing operations:
Basic $ 1.36 $ 5.32 $ 4.76 $ 7.26 $ 2.58
Diluted 1.36 5.30 4.73 7.21 2.56
Dividends 0.60 0.56 0.52 0.52 0.48
Balance Sheet Data:
Cash, cash equivalents and short-term investments $ 1,595 $ 1,955 $ 1,054 $ 1,104 $ 774
Working capital (current assets minus current liabilities) 4,612 4,634 3,837 3,346 2,479
Total assets 11,439 11,861 9,857 8,706 7,807
Long-term debt 1,785 1,775 1,069 1,074 1,078
Stockholders’ equity 7,284 6,807 6,306 5,243 4,698
NOTES TO SELECTED FINANCIAL DATA
(1) Gain (loss) on investments. 2009 income from continuing operations includes a $4 million gain on the settlement of auction rate
securities (“ARS”). 2008 income from continuing operations includes a charge for impairment loss of $25 million relating to ARS.
(2) Litigation settlement. 2008 income from continuing operations includes a net charge of $62 million relating to the settlement
of litigation with ReedHycalog.
(3) Gain on sale of product line. 2008 income from continuing operations includes $28 million for the gain on the sale of the
Completion and Production segment’s Surface Safety Systems (“SSS”) product line.
(4) Equity in income of affiliates and gain on sale of interest in affiliate. On April 28, 2006, we sold our 30% interest in
WesternGeco, a seismic venture we formed with Schlumberger in 2000, and recorded a gain of $1,744 million on the sale.
(5) Discontinued operations. The selected financial data includes reclassifications to reflect Baker Supply Products Division,
as discontinued operations.