Baker Hughes 2013 Annual Report Download - page 91

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Baker Hughes Incorporated61
Baker Hughes Incorporated
Notes to Consolidated Financial Statements
NOTE 4. 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:
2013 2012 2011
Weighted average common shares outstanding for basic EPS 443 440 436
Effect of dilutive securities - stock plans
112
Adjusted weighted average common shares outstanding for diluted EPS 444 441 438
Future potentially dilutive shares excluded from diluted EPS:
Options with an exercise price greater than the average market price
for the period
473
NOTE 5. INVENTORIES
Inventories, net of reserves of $382 million and $346 million in 2013 and 2012, respectively, are comprised of
the following at December 31:
2013 2012
Finished goods $ 3,438 $ 3,336
Work in process 215 228
Raw materials 231 217
Total inventories $ 3,884 $ 3,781
NOTE 6. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are comprised of the following at December 31:
Useful Life 2013 2012
Land $ 294 $ 253
Buildings and improvements 5 - 30 years 2,621 2,408
Machinery, equipment and other 1 - 20 years 13,380 12,361
Subtotal 16,295 15,022
Less: Accumulated depreciation 7,219 6,315
Total property, plant and equipment $ 9,076 $ 8,707
Depreciation expense relating to property, plant and equipment was $1,579 million, $1,427 million and $1,221
million in 2013, 2012 and 2011, respectively.