Consolidated statement of earnings (audited)
| ($ in millions except per share amounts) | ||||
| For the year ended December 31: | Notes | 2007 | 2006* | 2005* |
|---|---|---|---|---|
|
* Reclassified to conform with 2007 presentation of new Revenue and Cost categories. See note A, “Basis of Presentation” for additional information. ** Reflects implementation of FASB Interpretation No. 47. See note B, “Accounting Changes” for additional information. The accompanying notes are an integral part of the financial statements. |
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| Revenue: | ||||
| Services | $ 54,057 | $ 48,328 | $ 47,509 | |
| Sales | 42,202 | 40,716 | 41,218 | |
| Financing | 2,526 | 2,379 | 2,407 | |
| Total Revenue | 98,786 | 91,424 | 91,134 | |
| Cost: | ||||
| Services | 39,160 | 35,065 | 35,151 | |
| Sales | 16,552 | 16,882 | 18,360 | |
| Financing | 1,345 | 1,182 | 1,091 | |
| Total Cost | 57,057 | 53,129 | 54,602 | |
| Gross Profit | 41,729 | 38,295 | 36,532 | |
| Expense and Other Income: | ||||
| Selling, general and administrative | 22,060 | 20,259 | 21,314 | |
| Research, development and engineering | P | 6,153 | 6,107 | 5,842 |
| Intellectual property and custom development income | (958) | (900) | (948) | |
| Other (income) and expense | (626) | (766) | (2,122) | |
| Interest expense | J&K | 611 | 278 | 220 |
| Total Expense and Other Income | 27,240 | 24,978 | 24,306 | |
| Income from Continuing Operations Before Income Taxes | 14,489 | 13,317 | 12,226 | |
| Provision for income taxes | O | 4,071 | 3,901 | 4,232 |
| Income from Continuing Operations | 10,418 | 9,416 | 7,994 | |
| Discontinued Operations: | ||||
| (Loss)/earnings from discontinued operations, net of tax | (00) | 76 | (24) | |
| Income before cumulative effect of change in accounting principle | 10,418 | 9,492 | 7,970 | |
| Cumulative effect of change in accounting principle, net of tax** | B | — | — | (36) |
| Net Income | $ 10,418 | $ 9,492 | $ 7,934 | |
| Earnings/(loss) per Share of Common Stock: | ||||
| Assuming Dilution: | ||||
| Continuing operations | R | $ 7.18 | $ 6.06 | $ 4.91 |
| Discontinued operations | R | (0.00) | 0.05 | (0.01) |
| Before cumulative effect of change in accounting principle | R | 7.18 | 6.11 | 4.90 |
| Cumulative effect of change in accounting principle** | — | — | (0.02) | |
| Total | R | $ 7.18 | $ 6.11 | $ 4.87 |
| Basic: | ||||
| Continuing operations | R | $ 7.32 | $ 6.15 | $ 4.99 |
| Discontinued operations | R | (0.00) | 0.05 | (0.02) |
| Before cumulative effect of change in accounting principle | R | 7.32 | 6.20 | 4.98 |
| Cumulative effect of change in accounting principle** | R | — | — | (0.02) |
| Total | R | $ 7.32 | $ 6.20 | $ 4.96 |
| Weighted-Average Number of Common Shares Outstanding: | ||||
| Assuming dilution | 1,450,570,579 | 1,553,535,384 | 1,627,632,662 | |
| Basic | 1,423,039,793 | 1,530,806,987 | 1,600,591,264 | |
