CASE 1: APPLE, INC.

Refs.: Hitt, Ireland & Hoskisson Strategic Management:

Introduction:
Apple Computer, cofounded by Steve Jobs and Steve Wozniak, has had a tumultuous journey in the computer
industry. With a mission of providing easy-to-use computers to everyday people, Apple grew to become
stronger than IBM in the personal computer (PC) segment. In 1984, with the introduction of the Macintosh,
Apple revolutionized the PC market by providing the first widely available graphical user interface (GUI)
operating system (OS).
http://finance.yahoo.com/q/pr?s=AAPL
Business Summary
Apple Inc., together with subsidiaries, designs, manufactures, and markets mobile communication and media
devices, personal computing products, and portable digital music players worldwide. Its products and services
include iPhone, a handheld product that combines a mobile phone, an iPod, and an Internet communications
device; iPad, a multi-purpose mobile device; desktop computers, such as iMac, Mac Pro, and Mac mini;
portable computers, including MacBook Pro and MacBook Air; a line of iPod portable digital music and media
players; and iCloud, a cloud service. The company also offers a range of software products, including iOS and
OS X operating system software; server software; iLife and iWork application software; and other application
software consisting of Final Cut Pro, Logic Studio, Logic Pro, and its FileMaker Pro database software. It also
manufactures the Apple LED Cinema Display and Thunderbolt Display; sells a variety of Apple-branded and
third-party Mac-compatible and iOS-compatible peripheral products, including printers, storage devices,
computer memory, digital video and still cameras, and various other computing products and supplies; and
Apple TV, a device that allows customers to watch movies and television shows on their high definition
televisions. The company sells its products to consumers; small and mid-sized businesses; and education,
enterprise, and government customers through its retail stores, online stores, and direct sales force, as well as
through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. It also sells and
delivers digital content and applications through the iTunes Store, App Store, iBookstore, and Mac App Store.
As of September 29, 2012, the company had 250 stores in the United States and 140 stores internationally.
Apple Inc. was founded in 1977 and is headquartered in Cupertino, California.
http://hbr.org/product/apple-inc-2008/an/708480-PDF-ENG
In January 2007, three decades after its incorporation, Apple Computer shed the second word in its name and
became Apple Inc. With that move, the company signaled a fundamental shift away from its historic status as a
vendor of the Macintosh PC line. Mac sales remained vital to Apple's future, but they now accounted for less
than half of its total revenue. The company's line of iPod media players, its iTunes online content store and its
newly launched iPhone mobile handset business made up increasingly large shares of its operations. In early
2008, on the strength of sky-rocketing sales in those areas and by resurgent sales of Macintosh products, Apple's
revenues and its stock price reached record levels. The case explores the sustainability of Apple's current
business model, one that positioned the company simultaneously in the PC industry and the consumer
electronics industry. While Apple enjoyed a high market share in digital media players and in online music
sales, it remained a niche player in the worldwide PC industry.
http://blogs.hbr.org/pallotta/2013/01/the-market-wants-apple-to-unve.html
Over the past 10 years, Apple reinvented the telephone, music players, the way we consume music, and
mobile computing itself actually, with the iPad, Apple invented mobile computing. Apple can ride the wave
of those disruptions for a little while. It has changed the world. It is now selling the products that define that

new world to the world. Even if it has nothing more up its sleeve than beautiful new iterations of its existing
products, the fact remains that this is a company that last quarter [4Q2012] had profits of more than $8 billion.
Compare that with Amazon's performance: Amazon lost $247 million in its last quarter. Amazon's price-toearnings ratio is now 2,767. Apple's is 13. And Apple's profits are growing substantially year over year.
There are other markets waiting to be disrupted, for sure. Television. Automobiles. Housing. Higher education
(Apple is already on its way to transforming that with iBooks Author and the iPad). If Apple is to maintain the
level of success it's achieved in the past 15 years, it may need to enter those industries in the next 15. And it
probably will. But for now, Apple is like no other company on the planet, based simply on what it has achieved
in the last six years. Tim Cook is capitalizing on the potential of those years of disruption, and is doing it
masterfully.
Brief History:
http://en.wikipedia.org/wiki/Apple_Inc.

1976-80: Founding and incorporation

1981-85: Lisa and Macintosh
1986-97: Decline
1998-2005: Return to profitability
2005-07: Transition to Intel
2007-11: Widespread success
2011-present: Post-Steve Jobs era

Finance
In its fiscal year ending in September 2011, Apple Inc. reported a total of $108 billion in annual revenues a
significant increase from its 2010 revenues of $65 billion and nearly $82 billion in cash reserves. Apple
achieved these results while losing market share in certain product categories. On March 19, 2012, Apple
announced plans for a $2.65-per-share dividend beginning in fourth quarter of 2012, per approval by their board
of directors.
On September 2012, Apple reached a record share price of more than $705 and closed at above 700. With
936,596,000 outstanding shares (as of June 30, 2012), it had a market capitalization of about $660 billion. At
the time, this was the highest nominal market capitalization ever reached by a publicly traded company,
surpassing a record set by Microsoft in 1999.
As of September 29, 2012, the company had 72,800 permanent full-time employees and 3,300 temporary fulltime employees worldwide. Its worldwide annual revenue in 2012 totalled $156 billion. In May 2013, Apple
had made it to the top ten of the Fortune 500 list of companies for the first time, taking the 6 position, 11 places
up from the previous year.

Apple Inc.
Income Statement

Annual Standardised in Millions of U.S. Dollars

2012

Earnings Quality Score

Period End Date
Revenue
Net Sales

67

2011

67

29-Sep2012

2010

91

24-Sep2011

2009

97

2008

97

25-Sep2010

26-Sep2009

27-Sep2008

156,508

108,249

65,225

42,905

37,491

156,508

108,249

65,225

42,905

37,491

Gross Revenue

--

--

--

--

--

Sales Returns and Allowances

--

--

--

--

--

Excise Tax Receipts

--

--

--

--

--

--

--

--

--

--

Interest Income, Non-Bank

--

--

--

--

--

Other Revenue

--

--

--

--

--

Other Revenue, Total

Total Revenue
Cost of Revenue, Total
Cost of Revenue
Excise Taxes Payments
Gross Profit
Selling/General/Admin. Expenses,
Total
Selling/General/Administrative
Expense

156,508

108,249

65,225

42,905

37,491

87,846

64,431

39,541

25,683

24,294

87,846

64,431

39,541

25,683

24,294

--

--

--

--

--

68,662

43,818

25,684

17,222

13,197

10,040

7,599

5,517

4,149

3,761

10,040

7,599

5,517

4,149

3,761

Labor & Related Expense

--

--

--

--

--

Advertising Expense

--

--

--

--

--

Research & Development

Depreciation/Amortization

3,381

2,429

1,782

1,333

1,109

--

--

--

--

--

Depreciation

--

--

--

--

--

Amortization of Intangibles

--

--

--

--

--

Amortization of Acquisition Costs

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

Interest Capitalized - Operating

Interest/Investment Income Operating

--

--

--

--

--

--

--

--

--

--

Interest Income - Operating

--

--

--

--

--

Investment Income - Operating

Interest Expense(Income) - Net
Operating
Interest Exp.(Inc.),Net-Operating,
Total

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

Unusual Expense (Income)

--

--

--

--

--

Purchased R&D Written-Of

--

--

--

--

--

Restructuring Charge

--

--

--

--

--

Litigation

--

--

--

--

--

Impairment-Assets Held for Use

--

--

--

--

--

Impairment-Assets Held for Sale

Loss(Gain) on Sale of Assets Operating

--

--

--

--

--

--

--

--

--

--

Interest Expense, Net - Operating

Interest Expense - Operating

Other Unusual Expense (Income)

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

Other Operating Expense

--

--

--

--

--

Other, Net

--

--

--

--

--

Other Operating Expenses, Total

Foreign Currency Adjustment
Unrealized Losses (Gains)
Minimum Pension Liability
Adjustment

Total Operating Expense

Operating Income
Interest Expense, Net Non-Operating
Interest Expense - NonOperating
Interest Capitalized - NonOperating
Interest/Invest Income - NonOperating

101,267

74,459

46,840

31,165

29,164

55,241

33,790

18,385

11,740

8,327

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

1,088

519

311

407

653

Interest Income - Non-Operating

Investment Income - NonOperating
Interest Income(Exp), Net NonOperating

1,088

519

311

407

653

Interest Inc.(Exp.),Net-Non-Op., Total

1,088

Gain (Loss) on Sale of Assets

--

--

--

--

--

--

--

--

--

--

519

311

407

653

--

--

--

--

--

(566)

(104)

(156)

(81)

(33)

Foreign Currency Adjustment

--

--

--

--

--

Unrealized Gains (Losses)

Minimum Pension Liability
Adjustment
Other Non-Operating Income
(Expense)

--

--

--

--

--

--

--

--

--

--

(566)

(104)

(156)

(81)

(33)

Other, Net

Net Income Before Taxes

55,763

34,205

18,540

12,066

8,947

Provision for Income Taxes

14,030

8,283

4,527

3,831

2,828

Net Income After Taxes

41,733

25,922

14,013

8,235

6,119

Minority Interest

--

--

--

--

--

Equity In Affiliates

--

--

--

--

--

U.S. GAAP Adjustment

--

--

--

--

--

Net Income Before Extra. Items

41,733

25,922

14,013

8,235

6,119

Accounting Change

--

--

--

--

--

Discontinued Operations

--

--

--

--

--

Extraordinary Item

--

--

--

--

--

Tax on Extraordinary Items

--

--

--

--

--

Total Extraordinary Items

--

--

--

--

--

Net Income

41,733

25,922

14,013

8,235

6,119

Preferred Dividends

--

--

--

--

--

General Partners' Distributions

--

--

--

--

--

Miscellaneous Earnings Adjustment

--

--

--

--

--

Pro Forma Adjustment

--

--

--

--

--

Interest Adjustment - Primary EPS

--

--

--

--

--

Total Adjustments to Net Income

Income Available to Com Excl
ExtraOrd
Income Available to Com Incl
ExtraOrd
Basic Weighted Average Shares
Basic EPS Excluding Extraordinary
Items
Basic EPS Including Extraordinary
Items
Dilution Adjustment
Diluted Net Income
Diluted Weighted Average Shares
Diluted EPS Excluding ExtraOrd
Items
Diluted EPS Including ExtraOrd Items

--

--

--

--

--

41,733

25,922

14,013

8,235

6,119

41,733

25,922

14,013

8,235

6,119

935

924

909

893

882

44.64

28.05

15.41

9.22

6.94

44.64

28.05

15.41

9.22

6.94

--

--

--

--

--

41,733

25,922

14,013

8,235

6,119

945

937

925

907

902

44.15
44.15

27.68
27.68

15.15
15.15

9.08
9.08

6.78
6.78

2.65

0.00

0.00

0.00

0.00

Supplemental ($ Millions)
DPS - Common Stock Primary Issue
Dividends per Share - Com Stock
Issue 2
Dividends per Share - Com Stock
Issue 3
Dividends per Share - Com Stock
Issue 4
Special DPS - Common Stock Primary
Issue

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

Special DPS - Common Stock Issue 2

--

--

--

--

--

Special DPS - Common Stock Issue 3

--

--

--

--

--

Special DPS - Common Stock Issue 4

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

Gross Dividends - Common Stock

Pro Forma Stock Compensation
Expense
Net Income after Stock Based Comp.
Exp.
Basic EPS after Stock Based Comp.
Exp.
Diluted EPS after Stock Based Comp.
Exp.
Stock-Based Compensation,
Supplemental

2,500

1,740

1,168

879

710

516

Interest Expense, Supplemental

--

--

--

--

--

Interest Capitalized, Supplemental

Interest Expense (Financial Oper),
Suppl

--

--

--

--

--

--

--

--

--

--

Net Revenues

--

--

--

--

--

Depreciation, Supplemental

2,672

1,622

815

606

387

Funds From Operations - REIT

--

--

--

--

--

(Gain) Loss on Sale of Assets, Suppl.

Impairment-Assets Held for Sale,
Suppl.
Impairment-Assets Held for Use,
Suppl.

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

Litigation Charge, Supplemental

--

--

--

--

--

Purchased R&D Written-Of,

Supplemental

--

--

--

--

--

Restructuring Charge, Supplemental

Other Unusual Expense(Income),
Suppl.
Non-Recurring Items, Supplemental,
Total

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

Total Special Items

--

--

--

--

--

Normalized Income Before Taxes

Efect of Special Items on Income
Taxes

55,763

Inc Tax Ex Impact of Sp Items

14,030

8,283

4,527

3,831

2,828

Normalized Income After Taxes

41,733

25,922

14,013

8,235

6,119

Normalized Inc. Avail to Com.

41,733

25,922

14,013

8,235

6,119

Basic Normalized EPS

44.64

28.05

15.41

9.22

6.94

Diluted Normalized EPS

Amort of Acquisition Costs,
Supplemental

44.15

27.68

15.15

9.08

6.78

--

--

34,205
--

--

18,540
--

--

12,066
--

--

8,947
--

--

Amort of Intangibles, Supplemental

605

192

69

53

46

Rental Expense, Supplemental

488

338

271

231

207

Labor & Related Expense Suppl.

EPS, Supplemental
Advertising Expense, Supplemental

--1,000

--933

--691

--501

--486

Equity in Affiliates, Supplemental

--

--

--

--

--

Minority Interest, Supplemental

Research & Development Exp,
Supplemental

--

--

--

--

--

3,381

2,429

1,782

1,333

1,109

Audit Fees

Audit-Related Fees

Tax Fees

All Other Fees

Reported Recurring Revenue

--

--

--

--

--

Reported Net Premiums Written

--

--

--

--

--

Reported Total Revenue

--

--

--

--

--

Reported Operating Revenue

--

--

--

--

--

Reported Total Cost of Revenue

Reported Total Sales, General &
Admin.

--

--

--

--

--

--

--

--

--

--

Reported Gross Profit

--

--

--

--

--

Reported Operating Profit

--

--

--

--

--

Reported Operating Profit Margin

--

--

--

--

--

Reported Ordinary Profit

--

--

--

--

--

Reported Net Income After Tax

--

--

--

--

--

Reported Basic EPS

--

--

--

--

--

Reported Diluted EPS

--

--

--

--

--

Reported Net Business Profits

--

--

--

--

--

Islamic Income

--

--

--

--

--

Zakat

--

--

--

--

--

Islamic Section, Supplemental

Normalized EBIT
Normalized EBITDA

--

--

--

--

--

55,241
58,518

33,790
35,604

18,385
19,269

11,740
12,399

8,327
8,760

9,625

5,415

3,087

2,791

2,430

Current Tax - Domestic

7,240

3,884

2,150

1,922

1,796

Current Tax - Foreign

1,203

769

282

345

275

Current Tax - Local

1,182

762

655

524

359

Tax & Pension Items ($ Millions)

Current Tax - Total

Current Tax - Other

--

--

--

--

--

Current Tax - Total

--

--

--

--

--

Deferred Tax - Total

Deferred Tax - Domestic

4,405

2,868

1,440

1,040

398

5,018

2,998

1,676

1,077

498

Deferred Tax - Foreign

(490)

Deferred Tax - Local

(123)

Deferred Tax - Other

--

Deferred Tax - Total

--

Income Tax - Total

14,030

(167)

(121)

(35)

(75)

(115)

(2)

(25)

--

--

--

--

--

--

--

--

37

8,283

4,527

3,831

2,828

Domestic Tax - Other

--

--

--

--

--

Foreign Tax - Other

--

--

--

--

--

Local Tax - Other

--

--

--

--

--

Other Tax

--

--

--

--

--

--

--

--

--

--

Domestic Tax

--

--

--

--

--

Foreign Tax

--

--

--

--

--

Local Tax

--

--

--

--

--

Other Tax

--

--

--

--

--

Domestic Pension Plan Expense

--

--

--

--

--

Interest Cost - Domestic

--

--

--

--

--

Service Cost - Domestic

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

Transition Costs - Domestic

--

--

--

--

--

Other Pension, Net - Domestic

--

--

--

--

--

Foreign Pension Plan Expense

--

--

--

--

--

Interest Cost - Foreign

--

--

--

--

--

Service Cost - Foreign

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

Income Tax by Region - Total

Prior Service Cost - Domestic

Expected Return on Assets Domestic
Actuarial Gains and Losses Domestic
Curtailments & Settlements Domestic

Prior Service Cost - Foreign

Expected Return on Assets Foreign
Actuarial Gains and Losses Foreign
Curtailments & Settlements Foreign

Transition Costs - Foreign

--

--

--

--

--

Other Pension, Net - Foreign

--

--

--

--

--

--

--

--

--

--

Interest Cost - Post-Retirement

--

--

--

--

--

Service Cost - Post-Retirement

Prior Service Cost - PostRetirement
Expected Return on Assets Post-Retir.
Actuarial Gains and Losses Post-Retir.
Curtailments & Settlements Post-Retir.
Transition Costs - PostRetirement

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

Other Post-Retirement, Net

--

--

--

--

--

Post-Retirement Plan Expense

Total Pension Expense

Defined Contribution Expense Domestic
Defined Contribution Expense Foreign
Defined Contribution Expense
Retirement

114

90

72

59

50

114

90

72

59

50

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

Discount Rate - Domestic

--

--

--

--

--

Discount Rate - Foreign

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

Total Plan Interest Cost

--

--

--

--

--

Total Plan Service Cost

--

--

--

--

--

Total Plan Expected Return

Total Plan Other Expense

---

---

---

---

---

$2.65 I
(19-Mar)
Ann.

--

--

--

--

Assumptions

Discount Rate - Post-Retirement

Expected Rate of Return Domestic
Expected Rate of Return Foreign
Expected Rate of Return - PostRetir.
Compensation Rate - Domestic
Compensation Rate - Foreign
Compensation Rate - PostRetirement
Pension Payment Rate Domestic
Pension Payment Rate - Foreign

Dividends and Capital Changes

Apple Ord Shs

Cash Dividend
Dividends & Capital Changes After
Sep-2012
Apple Ord Shs

2013

Cash Dividend

$3.05 I
(23-Apr)
Ann.
$2.65 I
(23-Jan)
Ann.

2012

Cash Dividend

$2.65 F
(25-Oct)
Ann.

Apple Inc.
Balance Sheet
Annual Standardised in Millions of U.S. Dollars
2012

Earnings Quality Score

Period End Date

67

2011

67

2010

91

2009

97

2008

97

29-Sep2012

24-Sep2011

25-Sep2010

26-Sep2009

27-Sep2008

29,129

25,952

25,620

23,464

22,111

Assets ($ Millions)
Cash and Short Term Investments
Cash

--

--

--

--

--

Cash & Equivalents

10,746

9,815

11,261

5,263

11,875

Short Term Investments

18,383

16,137

14,359

18,201

10,236

Accounts Receivable - Trade, Net

Accounts Receivable - Trade,
Gross

10,930

5,369

5,510

3,361

2,422

11,028

5,422

5,565

3,413

2,469

Provision for Doubtful Accounts

Total Receivables, Net
Notes Receivable - Short Term
Receivables - Other
Total Inventory

(98)
18,692
--

(53)
11,717
--

(55)
9,924
--

(52)
5,057
--

(47)
4,704
--

7,762

6,348

4,414

1,696

2,282

791

776

1,051

455

509

Inventories - Finished Goods

--

--

--

--

--

Inventories - Work In Progress

--

--

--

--

--

Inventories - Raw Materials

--

--

--

--

--

Inventories - Other

--

--

--

--

--

LIFO Reserve

--

--

--

--

--

Prepaid Expenses

--

--

--

Other Current Assets, Total

Restricted Cash - Current
Deferred Income Tax - Current
Asset
Discountinued Operations Current Asset
Other Current Assets

9,041
-2,583
--

6,543
-2,014
--

5,083
-1,636
--

309

475

2,270

2,207

-1,135
--

-1,044
--

6,458

4,529

3,447

1,135

1,163

57,653

44,988

41,678

31,555

30,006

21,887

11,768

7,234

4,667

3,747

Buildings - Gross

3,464

2,599

2,030

1,665

1,324

Land/Improvements - Gross

2,439

2,059

1,471

955

810

15,984

7,110

3,733

2,047

1,613

Total Current Assets

Property/Plant/Equipment, Total Gross

Machinery/Equipment - Gross
Construction in Progress - Gross

--

--

--

--

--

Leases - Gross
Natural Resources - Gross
Other Property/Plant/Equipment Gross
Property/Plant/Equipment, Total - Net
Accumulated Depreciation, Total
Goodwill, Net
Goodwill - Gross
Accumulated Goodwill
Amortization

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

15,452

7,777

4,768

2,954

2,455

(6,435)

(3,991)

(2,466)

(1,713)

(1,292)

1,135

896

741

206

207

--

--

--

--

--

--

--

--

--

--

Intangibles, Net

4,224

3,536

342

353

352

Intangibles - Gross
Accumulated Intangible
Amortization

5,266

3,973

587

529

475

(245)

(176)

(123)

Long Term Investments

LT Investment - Affiliate
Companies
LT Investments - Other
Note Receivable - Long Term
Other Long Term Assets, Total
Deferred Charges

(1,042)
92,122
-92,122
-5,478

(437)
55,618
-55,618
-3,556

25,391
-25,391
-2,263

10,528
-10,528
-1,905

2,379
-2,379
-772

--

--

--

--

--

Pension Benefits - Overfunded

Defered Income Tax - Long Term
Asset
Discontinued Operations - LT
Asset

--

--

--

--

--

--

--

--

--

--

--

--

--

Restricted Cash - Long Term

--

--

--

--

--

5,478
176,064

3,556
116,371

2,263
75,183

1,742
47,501

668
36,171

21,175

14,632

12,015

5,601

5,520

Other Long Term Assets

Total Assets

163

104

Liabilities ($ Millions)
Accounts Payable
Payable/Accrued
Accrued Expenses
Notes Payable/Short Term Debt
Current Port. of LT Debt/Capital
Leases
Other Current liabilities, Total
Dividends Payable
Customer Advances
Security Deposits
Income Taxes Payable
Other Payables
Deferred Income Tax - Current
Liability
Discontinued Operations - Curr
Liability
Other Current Liabilities
Total Current Liabilities
Total Long Term Debt

--

--

--

--

--

3,283

2,428

1,593

1,293

1,320

--

--

--

--

--

14,084
-7,445
-1,535

10,910
-6,129
-1,140

7,114
-3,647
-658

4,612
-2,278
-430

4,521
-2,298
-506

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

5,104

3,641

2,809

1,904

1,717

38,542

27,970

20,722

11,506

11,361

Long Term Debt

--

--

--

--

--

Capital Lease Obligations

--

--

--

--

--

13,847

8,159

4,300

2,216

999

13,847

8,159

4,300

2,216

999

Total Debt
Deferred Income Tax
Deferred Income Tax - LT Liability
Minority Interest
Other Liabilities, Total

-5,465

-3,627

-2,370

-2,139

-1,514

Reserves

--

--

--

--

--

Pension Benefits - Underfunded

--

--

--

--

--

Other Long Term Liabilities

Discontinued Operations Liabilities
Total Liabilities

5,465

3,627

2,370

2,139

1,514

-57,854

-39,756

-27,392

-15,861

-13,874

Redeemable Preferred Stock, Total

--

--

--

--

--

Redeemable Preferred Stock

Redeemable Convertible
Preferred Stock
Preferred Stock - Non Redeemable,
Net
Preferred Stock - Non
Redeemable
Convertible Preferred Stock - Non
Rdmbl

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

Treasury Stock - Preferred

--

--

--

--

--

General Partner

--

--

--

--

--

Shareholders Equity ($ Millions)

Common Stock, Total

Common Stock
Limited Partner
Additional Paid-In Capital
Retained Earnings (Accumulated
Deficit)

16,422

13,331

10,668

8,210

7,177

16,422

13,331

10,668

8,210

7,177

--

--

--

--

--

--

--

--

--

--

101,289

62,841

37,169

23,353

15,129

Treasury Stock - Common

--

--

--

--

--

ESOP Debt Guarantee

--

--

--

--

--

(81)

--

--

Unrealized Gain (Loss)

Other Equity, Total

491

420

23

35

77

(9)

Translation Adjustment

--

--

--

--

--

Other Equity
Minimum Pension Liability
Adjustment

--

--

--

--

--

--

--

--

--

--

Other Comprehensive Income

Total Equity
Total Liabilities & Shareholders'
Equity
Supplemental ($ Millions)
Shares Outstanding - Common Issue
2
Shares Outstanding - Common Issue
3
Shares Outstanding - Common Issue

23

35

77

(9)

118,210

76,615

47,791

31,640

22,297

176,064

116,371

75,183

47,501

36,171

--

--

--

--

--

---

---

---

---

---

4
Total Common Shares Outstanding
Shares Outs - Common Stock
Primary Issue
Treas Shares - Common Stock Prmry
Issue

939

929

916

900

888

939

929

916

900

888

Treasury Shares - Common Issue 2

--

--

--

--

--

Treasury Shares - Common Issue 3

--

--

--

--

--

Treasury Shares - Common Issue 4

--

--

--

--

--

Total Preferred Shares Outstanding

Shares Outstanding - Preferred
Issue 1
Shares Outstanding - Preferred
Issue 2
Shares Outstanding - Preferred
Issue 3
Shares Outstanding - Preferred
Issue 4
Shares Outstanding - Preferred
Issue 5
Shares Outstanding - Preferred
Issue 6

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

Treasury Shares - Preferred Issue 1

--

--

--

--

--

Treasury Shares - Preferred Issue 2

--

--

--

--

--

Treasury Shares - Preferred Issue 3

--

--

--

--

--

Treasury Shares - Preferred Issue 4

--

--

--

--

--

Treasury Shares - Preferred Issue 5

--

--

--

--

--

Treasury Shares - Preferred Issue 6

--

--

--

--

--

Minority Interest - Redeemable

--

--

--

--

--

Minority Interest - Non Redeemable

--

--

--

--

--

Total Equity & Minority Interest

Full-Time Employees
Part-Time Employees
Number of Common Shareholders

118,210

76,615

47,791

31,640

22,297

72,800

60,400

46,600

34,300

32,000

2,500

3,100

30,573

30,445

-27,696

-28,543

-29,405

Other Property/Plant/Equipment - Net

--

--

--

--

--

Intangibles - Net

--

--

--

--

--

Goodwill - Net
Short Term Debt Financial Sector,
Suppl.
Curr Port - LTD/Cap Lse Fin Sec.,
Suppl.
Long Term Debt Financial Sector,
Suppl.
Capital Lease Oblig. - Fin Sector,
Suppl
Accumulated Goodwill Amortization
Suppl.
Accumulated Intangible Amort,
Suppl.

1,135

1,042

437

245

176

123

Deferred Revenue - Current

7,445

6,129

3,647

2,278

2,298

Deferred Revenue - Long Term

2,648

1,686

1,139

853

768

Total Risk-Weighted Capital

896

741

206

207

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

Tier 1 Capital %

--

--

--

--

--

Total Capital %

--

--

--

--

--

Trading Account

--

--

--

--

--

Credit Exposure

--

--

--

--

--

Non-Performing Loans

--

--

--

--

--

Assets under Management

Total Current Assets less Inventory

--

--

--

--

--

56,862

44,212

40,627

31,100

29,497

Net Debt

(29,129)

(25,952)

(25,620)

(23,464)

(22,111)

Tangible Book Value

112,851

72,183

46,708

31,081

21,738

Reported Total Assets

--

--

--

--

--

Reported Total Liabilities

Shareholders' Equity Excl. Stock
Subscr.

--

--

--

--

--

--

--

--

--

--

Reported Shareholder's Equity

--

--

--

--

--

Reported Net Assets

--

--

--

--

--

Reported Net Assets to Total Assets

--

--

--

--

--

Reported Return on Assets

--

--

--

--

--

Reported Return on Equity

--

--

--

--

--

Islamic Investments & Deposits

--

--

--

--

--

Islamic Receivables

--

--

--

--

--

Islamic Debt
Islamic Section, Supplemental
Debt & Lease, Pension Items ($
Millions)

---

---

---

---

---

Total Long Term Debt, Supplemental

Long Term Debt Maturing within
1 Year
Long Term Debt Maturing in Year
2
Long Term Debt Maturing in Year
3
Long Term Debt Maturing in Year
4
Long Term Debt Maturing in Year
5
Long Term Debt Maturing in Year
6
Long Term Debt Maturing in Year
7
Long Term Debt Maturing in Year
8
Long Term Debt Maturing in Year
9
Long Term Debt Maturing in Year
10
Long Term Debt Maturing in 2-3
Years
Long Term Debt Maturing in 4-5
Years
Long Term Debt Matur. in Year 6
& Beyond

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

Total Capital Leases, Supplemental

--

--

--

--

--

Interest Costs
Executory Costs
Capital Lease Payments Due in
Year 1
Capital Lease Payments Due in
Year 2
Capital Lease Payments Due in
Year 3
Capital Lease Payments Due in
Year 4
Capital Lease Payments Due in
Year 5
Capital Lease Payments Due in
Year 6
Capital Lease Payments Due in
Year 7
Capital Lease Payments Due in
Year 8
Capital Lease Payments Due in
Year 9
Capital Lease Payments Due in
Year 10
Capital Lease Payments Due in
2-3 Years
Capital Lease Payments Due in
4-5 Years
Cap. Lease Pymts. Due in Year 6
& Beyond
Total Operating Leases,
Supplemental
Operating Lease Payments Due
in Year 1
Operating Lease Payments Due
in Year 2
Operating Lease Payments Due
in Year 3
Operating Lease Payments Due
in Year 4
Operating Lease Payments Due
in Year 5
Operating Lease Payments Due
in Year 6
Operating Lease Payments Due
in Year 7
Operating Lease Payments Due
in Year 8
Operating Lease Payments Due
in Year 9
Operating Lease Payments Due
in Year 10
Operating Lease Pymts. Due in
2-3 Years
Operating Lease Pymts. Due in
4-5 Years
Oper. Lse. Pymts. Due in Year 6 &
Beyond

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

3,032

3,032

2,089

1,922

1,760

338

338

266

222

195

365

365

267

234

209

362

362

260

228

200

345

345

244

214

191

320

320

226

199

177

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

727

727

527

462

409

665

665

470

413

368

1,302

1,302

826

825

788