Executive Summary
Yenly
Appendixes.pdf
Once each year, a corporation communicates to its stockholders and other inter- ested parties by issuing a complete set of audited ! nancial statements. The annual report , as this communication is called, summarizes the ! nancial results of the company’s operations for the year and its plans for the future. Many annual reports are attractive, multicolored, glossy public relations pieces, containing pictures of corporate of! cers and directors as well as photos and descriptions of new products and new buildings. Yet the basic function of every annual report is to report ! nancial information, almost all of which is a product of the corpora- tion’s accounting system. The content and organization of corporate annual reports have become fairly standardized. Excluding the public relations part of the report (pictures, prod- ucts, etc.), the following are the traditional ! nancial portions of the annual report:
• Financial Highlights
• Letter to the Stockholders
• Management’s Discussion and Analysis
• Financial Statements
• Notes to the Financial Statements
• Management’s Responsibility for Financial Reporting
• Management’s Report on Internal Control over Financial Reporting
• Report of Independent Registered Public Accounting Firm
• Selected Financial Data
The of! cial SEC ! ling of the annual report is called a Form 10-K, which often omits the public relations pieces found in most standard annual reports. On the following pages, we present Apple Inc.’s ! nancial statements taken from the company’s 2013 Form 10-K. To access Apple’s Form 10-K, including notes to the ! nancial statements, follow these steps:
1. Go to http://investor.apple.com.
2. Select the Financial Information tab.
3. Select the 10-K annual report dated September 28, 2013.
4. The Notes to Consolidated Financial Statements begin on page 50.
Specimen Financial Statements: Apple Inc.
Appendix A
A-1
A-2 Appendix A Specimen Financial Statements: Apple Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except number of shares which are reflected in thousands and per share amounts)
See accompanying Notes to Consolidated Financial Statements.
Years ended
September 28, 2013 September 29, 2012 September 24, 2011
Net sales $ 170,910 $ 156,508 $ 108,249 Cost of sales 106,606 87,846 64,431
Gross margin 64,304 68,662 43,818
Operating expenses: Research and development 4,475 3,381 2,429 Selling, general and administrative 10,830 10,040 7,599
Total operating expenses 15,305 13,421 10,028
Operating income 48,999 55,241 33,790 Other income/(expense), net 1,156 522 415
Income before provision for income taxes 50,155 55,763 34,205 Provision for income taxes 13,118 14,030 8,283
Net income $ 37,037 $ 41,733 $ 25,922
Earnings per share: Basic $ 40.03 $ 44.64 $ 28.05 Diluted $ 39.75 $ 44.15 $ 27.68
Shares used in computing earnings per share: Basic 925,331 934,818 924,258 Diluted 931,662 945,355 936,645
Cash dividends declared per common share $ 11.40 $ 2.65 $ 0.00
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions)
Years ended
September 28, 2013
September 29, 2012
September 24, 2011
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $37,037 $41,733 $25,922
Other comprehensive income/(loss):
Change in foreign currency translation, net of tax effects of $35, $13 and $18,
respectively . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (112) (15) (12)
Change in unrecognized gains/losses on derivative instruments:
Change in fair value of derivatives, net of tax benefit/(expense) of $(351), $73 and
$(50), respectively . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 522 (131) 92
Adjustment for net losses/(gains) realized and included in net income, net of tax
expense/(benefit) of $255, $220 and $(250), respectively . . . . . . . . . . . . . . . . . . . (458) (399) 450
Total change in unrecognized gains/losses on derivative instruments, net of tax . . . . 64 (530) 542
Change in unrealized gains/losses on marketable securities:
Change in fair value of marketable securities, net of tax benefit/(expense) of $458,
$(421) and $17, respectively . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (791) 715 29
Adjustment for net losses/(gains) realized and included in net income, net of tax
expense/(benefit) of $82, $68 and $(40), respectively . . . . . . . . . . . . . . . . . . . . . . (131) (114) (70)
Total change in unrealized gains/losses on marketable securities, net of tax . . . . . . . (922) 601 (41)
Total other comprehensive income/(loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (970) 56 489
Total comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $36,067 $41,789 $26,411
See accompanying Notes to Consolidated Financial Statements.
Appendix A Specimen Financial Statements: Apple Inc. A-3
CONSOLIDATED BALANCE SHEETS
(In millions, except number of shares which are reflected in thousands)
See accompanying Notes to Consolidated Financial Statements.
September 28, 2013 September 29, 2012
ASSETS: Current assets:
Cash and cash equivalents $ 14,259 $ 10,746 Short-term marketable securities 26,287 18,383 Accounts receivable, less allowances of $99 and $98,
respectively 13,102 10,930 Inventories 1,764 791 Deferred tax assets 3,453 2,583 Vendor non-trade receivables 7,539 7,762 Other current assets 6,882 6,458
Total current assets 73,286 57,653
Long-term marketable securities 106,215 92,122 Property, plant and equipment, net 16,597 15,452 Goodwill 1,577 1,135 Acquired intangible assets, net 4,179 4,224 Other assets 5,146 5,478
Total assets $ 207,000 $ 176,064
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities: Accounts payable $ 22,367 $ 21,175 Accrued expenses 13,856 11,414 Deferred revenue 7,435 5,953
Total current liabilities 43,658 38,542
Deferred revenue – non-current 2,625 2,648 Long-term debt 16,960 0 Other non-current liabilities 20,208 16,664
Total liabilities 83,451 57,854
Commitments and contingencies
Shareholders’ equity: Common stock, no par value; 1,800,000 shares authorized;
899,213 and 939,208 shares issued and outstanding, respectively 19,764 16,422
Retained earnings 104,256 101,289 Accumulated other comprehensive income/(loss) (471 ) 499
Total shareholders’ equity 123,549 118,210
Total liabilities and shareholders’ equity $ 207,000 $ 176,064
A-4 Appendix A Specimen Financial Statements: Apple Inc.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(In millions, except number of shares which are reflected in thousands)
See accompanying Notes to Consolidated Financial Statements.
Common Stock
Retained
Earnings
Accum- ulated
Other Compre-
hensive Income/
(Loss)
Total
Share- holders’
Equity
Shares Amount
Balances as of September 25, 2010 915,970 $ 10,668 $ 37,169 $ (46) $ 47,791
Net income 0 0 25,922 0 25,922 Other comprehensive income/(loss) 0 0 0 489 489 Share-based compensation 0 1,168 0 0 1,168 Common stock issued under stock plans, net of shares
withheld for employee taxes 13,307 561 (250 ) 0 311 Tax benefit from equity awards, including transfer
pricing adjustments 0 934 0 0 934
Balances as of September 24, 2011 929,277 13,331 62,841 443 76,615
Net income 0 0 41,733 0 41,733 Other comprehensive income/(loss) 0 0 0 56 56 Dividends and dividend equivalent rights declared 0 0 (2,523 ) 0 (2,523 ) Share-based compensation 0 1,740 0 0 1,740 Common stock issued under stock plans, net of shares
withheld for employee taxes 9,931 200 (762 ) 0 (562 ) Tax benefit from equity awards, including transfer
pricing adjustments 0 1,151 0 0 1,151
Balances as of September 29, 2012 939,208 16,422 101,289 499 118,210
Net income 0 0 37,037 0 37,037 Other comprehensive income/(loss) 0 0 0 (970 ) (970 ) Dividends and dividend equivalent rights declared 0 0 (10,676 ) 0 (10,676 ) Repurchase of common stock (46,976 ) 0 (22,950 ) 0 (22,950 ) Share-based compensation 0 2,253 0 0 2,253 Common stock issued under stock plans, net of shares
withheld for employee taxes 6,981 (143 ) (444 ) 0 (587 ) Tax benefit from equity awards, including transfer
pricing adjustments 0 1,232 0 0 1,232
Balances as of September 28, 2013 899,213 $ 19,764 $ 104,256 $ (471) $ 123,549
Appendix A Specimen Financial Statements: Apple Inc. A-5
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
See accompanying Notes to Consolidated Financial Statements.
Years ended
September 28,
2013 September 29,
2012 September 24,
2011
Cash and cash equivalents, beginning of the year $ 10,746 $ 9,815 $ 11,261
Operating activities: Net income 37,037 41,733 25,922 Adjustments to reconcile net income to cash generated by operating
activities: Depreciation and amortization 6,757 3,277 1,814 Share-based compensation expense 2,253 1,740 1,168 Deferred income tax expense 1,141 4,405 2,868
Changes in operating assets and liabilities: Accounts receivable, net (2,172 ) (5,551 ) 143 Inventories (973 ) (15 ) 275 Vendor non-trade receivables 223 (1,414 ) (1,934 ) Other current and non-current assets 1,080 (3,162 ) (1,391 ) Accounts payable 2,340 4,467 2,515 Deferred revenue 1,459 2,824 1,654 Other current and non-current liabilities 4,521 2,552 4,495
Cash generated by operating activities 53,666 50,856 37,529
Investing activities: Purchases of marketable securities (148,489 ) (151,232 ) (102,317 ) Proceeds from maturities of marketable securities 20,317 13,035 20,437 Proceeds from sales of marketable securities 104,130 99,770 49,416 Payments made in connection with business acquisitions, net (496 ) (350 ) (244 ) Payments for acquisition of property, plant and equipment (8,165 ) (8,295 ) (4,260 ) Payments for acquisition of intangible assets (911 ) (1,107 ) (3,192 ) Other (160 ) (48 ) (259 )
Cash used in investing activities (33,774 ) (48,227 ) (40,419 )
Financing activities: Proceeds from issuance of common stock 530 665 831 Excess tax benefits from equity awards 701 1,351 1,133 Taxes paid related to net share settlement of equity awards (1,082 ) (1,226 ) (520 ) Dividends and dividend equivalent rights paid (10,564 ) (2,488 ) 0 Repurchase of common stock (22,860 ) 0 0 Proceeds from issuance of long-term debt, net 16,896 0 0
Cash generated by/(used in) financing activities (16,379 ) (1,698 ) 1,444
Increase/(decrease) in cash and cash equivalents 3,513 931 (1,446 )
Cash and cash equivalents, end of the year $ 14,259 $ 10,746 $ 9,815
Supplemental cash flow disclosure: Cash paid for income taxes, net $ 9,128 $ 7,682 $ 3,338
Consolidated Statement of Income
PepsiCo, Inc. and Subsidiaries
Fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011
(in millions except per share amounts)
2013 2012 2011
Net Revenue $ 66,415 $ 65,492 $ 66,504
Cost of sales 31,243 31,291 31,593
Selling, general and administrative expenses 25,357 24,970 25,145
Amortization of intangible assets 110 119 133
Operating Profit 9,705 9,112 9,633
Interest expense (911) (899) (856)
Interest income and other 97 91 57
Income before income taxes 8,891 8,304 8,834
Provision for income taxes 2,104 2,090 2,372
Net income 6,787 6,214 6,462
Less: Net income attributable to noncontrolling interests 47 36 19
Net Income Attributable to PepsiCo $ 6,740 $ 6,178 $ 6,443
Net Income Attributable to PepsiCo per Common Share
Basic $ 4.37 $ 3.96 $ 4.08
Diluted $ 4.32 $ 3.92 $ 4.03
Weighted-average common shares outstanding
Basic 1,541 1,557 1,576
Diluted 1,560 1,575 1,597
Cash dividends declared per common share $ 2.24 $ 2.1275 $ 2.025
See accompanying notes to consolidated financial statements.
PepsiCo, Inc. is a world leader in convenient snacks, foods, and beverages. The following are PepsiCo’s ! nancial statements as presented in its 2013 annual report. To access PepsiCo’s complete annual report, including notes to the ! nancial state- ments, follow these steps:
1. Go to www.pepsico.com.
2. Select Annual Reports and Proxy Information under the Investors tab.
3. Select the 2013 Annual Report.
4. The Notes to Consolidated Financial Statements begin on page 73.
Specimen Financial Statements: PepsiCo, Inc.
Appendix B
B-1
B-2 Appendix B Specimen Financial Statements: PepsiCo, Inc.
Consolidated Statement of Comprehensive Income
PepsiCo, Inc. and Subsidiaries
Fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011
(in millions)
2013
Pre-tax amounts Tax amounts
After-tax amounts
Net income $ 6,787
Other Comprehensive Income
Currency translation adjustment $ (1,303) $ — (1,303)
Cash flow hedges:
Reclassification of net losses to net income 45 (17) 28
Net derivative losses (20) 10 (10)
Pension and retiree medical:
Net prior service cost (23) 8 (15)
Net gains 2,540 (895) 1,645
Unrealized gains on securities 57 (28) 29
Other — (16) (16)
Total Other Comprehensive Income $ 1,296 $ (938) 358
Comprehensive income 7,145
Comprehensive income attributable to noncontrolling interests (45)
Comprehensive Income Attributable to PepsiCo $ 7,100
2012
Pre-tax amounts Tax amounts
After-tax amounts
Net income $ 6,214
Other Comprehensive Income
Currency translation adjustment $ 737 $ — 737
Cash flow hedges:
Reclassification of net losses to net income 90 (32) 58
Net derivative losses (50) 10 (40)
Pension and retiree medical:
Net prior service cost (32) 12 (20)
Net losses (41) (11) (52)
Unrealized gains on securities 18 — 18
Other — 36 36
Total Other Comprehensive Income $ 722 $ 15 737
Comprehensive income 6,951
Comprehensive income attributable to noncontrolling interests (31)
Comprehensive Income Attributable to PepsiCo $ 6,920
2011
Pre-tax amounts Tax amounts
After-tax amounts
Net income $ 6,462
Other Comprehensive Loss
Currency translation adjustment $ (1,464) $ — (1,464)
Cash flow hedges:
Reclassification of net losses to net income 5 4 9
Net derivative losses (126) 43 (83)
Pension and retiree medical:
Net prior service cost (18) 8 (10)
Net losses (1,468) 501 (967)
Unrealized losses on securities (27) 19 (8)
Other (16) 5 (11)
Total Other Comprehensive Loss $ (3,114) $ 580 (2,534)
Comprehensive income 3,928
Comprehensive income attributable to noncontrolling interests (84)
Comprehensive Income Attributable to PepsiCo $ 3,844
See accompanying notes to consolidated financial statements.
Appendix B Specimen Financial Statements: PepsiCo, Inc. B-3
Financing Activities
Proceeds from issuances of long-term debt $ 4,195 $ 5,999 $ 3,000
Payments of long-term debt (3,894) (2,449) (1,596)
Debt repurchase — — (771)
Short-term borrowings, by original maturity
More than three months – proceeds 23 549 523
More than three months – payments (492) (248) (559)
Three months or less, net 1,634 (1,762) 339
Cash dividends paid (3,434) (3,305) (3,157)
Share repurchases – common (3,001) (3,219) (2,489)
Share repurchases – preferred (7) (7) (7)
Proceeds from exercises of stock options 1,123 1,122 945
Excess tax benefits from share-based payment arrangements 117 124 70
Acquisition of noncontrolling interests (20) (68) (1,406)
Other financing (33) (42) (27)
Net Cash Used for Financing Activities (3,789) (3,306) (5,135)
Effect of exchange rate changes on cash and cash equivalents (196) 62 (67)
Net Increase/(Decrease) in Cash and Cash Equivalents 3,078 2,230 (1,876)
Cash and Cash Equivalents, Beginning of Year 6,297 4,067 5,943
Cash and Cash Equivalents, End of Year $ 9,375 $ 6,297 $ 4,067
See accompanying notes to consolidated financial statements.
Consolidated Statement of Cash Flows
PepsiCo, Inc. and Subsidiaries
Fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011
(in millions)
2013 2012 2011
Operating Activities
Net income $ 6,787 $ 6,214 $ 6,462
Depreciation and amortization 2,663 2,689 2,737
Stock-based compensation expense 303 278 326
Merger and integration costs 10 16 329
Cash payments for merger and integration costs (25) (83) (377)
Restructuring and impairment charges 163 279 383
Cash payments for restructuring charges (133) (343) (31)
Restructuring and other charges related to the transaction with Tingyi — 176 —
Cash payments for restructuring and other charges related to the transaction with Tingyi (26) (109) —
Non-cash foreign exchange loss related to Venezuela devaluation 111 — —
Excess tax benefits from share-based payment arrangements (117) (124) (70)
Pension and retiree medical plan contributions (262) (1,865) (349)
Pension and retiree medical plan expenses 663 796 571
Deferred income taxes and other tax charges and credits (1,058) 321 495
Change in accounts and notes receivable (88) (250) (666)
Change in inventories 4 144 (331)
Change in prepaid expenses and other current assets (51) 89 (27)
Change in accounts payable and other current liabilities 1,007 548 520
Change in income taxes payable 86 (97) (340)
Other, net (349) (200) (688)
Net Cash Provided by Operating Activities 9,688 8,479 8,944
Investing Activities
Capital spending (2,795) (2,714) (3,339)
Sales of property, plant and equipment 109 95 84
Acquisition of WBD, net of cash and cash equivalents acquired — — (2,428)
Investment in WBD — — (164)
Cash payments related to the transaction with Tingyi (3) (306) —
Other acquisitions and investments in noncontrolled affiliates (109) (121) (601)
Divestitures 133 (32) 780
Short-term investments, by original maturity
More than three months – maturities — — 21
Three months or less, net 61 61 45
Other investing, net (21) 12 (16)
Net Cash Used for Investing Activities (2,625) (3,005) (5,618)
B-4 Appendix B Specimen Financial Statements: PepsiCo, Inc.
Consolidated Balance Sheet
PepsiCo, Inc. and Subsidiaries
December 28, 2013 and December 29, 2012
(in millions except per share amounts)
2013 2012
ASSETS
Current Assets
Cash and cash equivalents $ 9,375 $ 6,297
Short-term investments 303 322
Accounts and notes receivable, net 6,954 7,041
Inventories 3,409 3,581
Prepaid expenses and other current assets 2,162 1,479
Total Current Assets 22,203 18,720
Property, Plant and Equipment, net 18,575 19,136
Amortizable Intangible Assets, net 1,638 1,781
Goodwill 16,613 16,971
Other nonamortizable intangible assets 14,401 14,744
Nonamortizable Intangible Assets 31,014 31,715
Investments in Noncontrolled Affiliates 1,841 1,633
Other Assets 2,207 1,653
Total Assets $ 77,478 $ 74,638
LIABILITIES AND EQUITY
Current Liabilities
Short-term obligations $ 5,306 $ 4,815
Accounts payable and other current liabilities 12,533 11,903
Income taxes payable — 371
Total Current Liabilities 17,839 17,089
Long-Term Debt Obligations 24,333 23,544
Other Liabilities 4,931 6,543
Deferred Income Taxes 5,986 5,063
Total Liabilities 53,089 52,239
Commitments and contingencies
Preferred Stock, no par value 41 41
Repurchased Preferred Stock (171) (164)
PepsiCo Common Shareholders’ Equity
Common stock, par value 1 2 /3¢ per share (authorized 3,600 shares, issued, net of repurchased
common stock at par value: 1,529 and 1,544 shares, respectively) 25 26
Capital in excess of par value 4,095 4,178
Retained earnings 46,420 43,158
Accumulated other comprehensive loss (5,127) (5,487)
Repurchased common stock, in excess of par value (337 and 322 shares, respectively) (21,004) (19,458)
Total PepsiCo Common Shareholders’ Equity 24,409 22,417
Noncontrolling interests 110 105
Total Equity 24,389 22,399
Total Liabilities and Equity $ 77,478 $ 74,638
See accompanying notes to consolidated financial statements.
Appendix B Specimen Financial Statements: PepsiCo, Inc. B-5
Consolidated Statement of Equity
PepsiCo, Inc. and Subsidiaries
Fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011
(in millions)
2013 2012 2011
Shares Amount Shares Amount Shares Amount
Preferred Stock 0.8 $ 41 0.8 $ 41 0.8 $ 41
Repurchased Preferred Stock
Balance, beginning of year (0.6) (164) (0.6) (157) (0.6) (150)
Redemptions — (7) — (7) — (7)
Balance, end of year (0.6) (171) (0.6) (164) (0.6) (157)
Common Stock
Balance, beginning of year 1,544 26 1,565 26 1,582 26
Repurchased common stock (15) (1) (21) — (17) —
Balance, end of year 1,529 25 1,544 26 1,565 26
Capital in Excess of Par Value
Balance, beginning of year 4,178 4,461 4,527
Stock-based compensation expense 303 278 326
Stock option exercises/RSUs and PEPUnits converted (a)
(287) (431) (361)
Withholding tax on RSUs converted (87) (70) (56)
Other (12) (60) 25
Balance, end of year 4,095 4,178 4,461
Retained Earnings
Balance, beginning of year 43,158 40,316 37,090
Net income attributable to PepsiCo 6,740 6,178 6,443
Cash dividends declared – common (3,451) (3,312) (3,192)
Cash dividends declared – preferred (1) (1) (1)
Cash dividends declared – RSUs (26) (23) (24)
Balance, end of year 46,420 43,158 40,316
Accumulated Other Comprehensive Loss
Balance, beginning of year (5,487) (6,229) (3,630)
Currency translation adjustment (1,301) 742 (1,529)
Cash flow hedges, net of tax:
Reclassification of net losses to net income 28 58 9
Net derivative losses (10) (40) (83)
Pension and retiree medical, net of tax:
Reclassification of net losses to net income 230 421 133
Remeasurement of net liabilities and translation 1,400 (493) (1,110)
Unrealized gains/(losses) on securities, net of tax 29 18 (8)
Other (16) 36 (11)
Balance, end of year (5,127) (5,487) (6,229)
Repurchased Common Stock
Balance, beginning of year (322) (19,458) (301) (17,870) (284) (16,740)
Share repurchases (37) (3,000) (47) (3,219) (39) (2,489)
Stock option exercises 20 1,301 24 1,488 20 1,251
Other 2 153 2 143 2 108
Balance, end of year (337) (21,004) (322) (19,458) (301) (17,870)
Total PepsiCo Common Shareholders’ Equity 24,409 22,417 20,704
Noncontrolling Interests
Balance, beginning of year 105 311 312
Net income attributable to noncontrolling interests 47 36 19
Distributions to noncontrolling interests, net (34) (37) (24)
Currency translation adjustment (2) (5) 65
Acquisitions and divestitures (6) (200) (57)
Other, net — — (4)
Balance, end of year 110 105 311
Total Equity $ 24,389 $ 22,399 $ 20,899
(a) Includes total tax benefits of $45 million in 2013, $84 million in 2012 and $43 million in 2011.
See accompanying notes to consolidated financial statements.
The Coca-Cola Company is a global leader in the beverage industry. It offers hundreds of brands, including soft drinks, fruit juices, sports drinks and other beverages in more than 200 countries. The following are Coca-Cola’s ! nancial state- ments as presented in its 2013 annual report. To access Coca-Cola’s complete annual report, including notes to the ! nancial statements, follow these steps:
1. Go to www.coca-colacompany.com.
2. Select the Investors link near the bottom of the page, and then select Financial Reports & Information.
3. Select the 2013 Annual Report on Form 10-K.
4. The Notes to Consolidated Financial Statements begin on page 79.
Specimen Financial Statements: The Coca-Cola Company
Appendix C
C-1
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Year Ended December 31, 2013 2012 2011
(In millions except per share data)
NET OPERATING REVENUES $ 46,854 $ 48,017 $ 46,542 Cost of goods sold 18,421 19,053 18,215
GROSS PROFIT 28,433 28,964 28,327 Selling, general and administrative expenses 17,310 17,738 17,422 Other operating charges 895 447 732
OPERATING INCOME 10,228 10,779 10,173 Interest income 534 471 483 Interest expense 463 397 417 Equity income (loss) — net 602 819 690 Other income (loss) — net 576 137 529
INCOME BEFORE INCOME TAXES 11,477 11,809 11,458 Income taxes 2,851 2,723 2,812
CONSOLIDATED NET INCOME 8,626 9,086 8,646 Less: Net income attributable to noncontrolling interests 42 67 62
NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY $ 8,584 $ 9,019 $ 8,584
BASIC NET INCOME PER SHARE1 $ 1.94 $ 2.00 $ 1.88
DILUTED NET INCOME PER SHARE1 $ 1.90 $ 1.97 $ 1.85
AVERAGE SHARES OUTSTANDING 4,434 4,504 4,568 Effect of dilutive securities 75 80 78
AVERAGE SHARES OUTSTANDING ASSUMING DILUTION 4,509 4,584 4,646
1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.
Refer to Notes to Consolidated Financial Statements.
C-2 Appendix C Specimen Financial Statements: The Coca-Cola Company
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Year Ended December 31, 2013 2012 2011
(In millions)
CONSOLIDATED NET INCOME $ 8,626 $ 9,086 $ 8,646 Other comprehensive income:
Net foreign currency translation adjustment (1,187) (182) (692) Net gain (loss) on derivatives 151 99 145 Net unrealized gain (loss) on available-for-sale securities (80) 178 (7) Net change in pension and other benefit liabilities 1,066 (668) (763)
TOTAL COMPREHENSIVE INCOME 8,576 8,513 7,329 Less: Comprehensive income (loss) attributable to noncontrolling interests 39 105 10
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO SHAREOWNERS OF
THE COCA-COLA COMPANY $ 8,537 $ 8,408 $ 7,319
Refer to Notes to Consolidated Financial Statements.
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, 2013 2012
(In millions except par value)
ASSETS
CURRENT ASSETS Cash and cash equivalents $ 10,414 $ 8,442 Short-term investments 6,707 5,017
TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 17,121 13,459
Marketable securities 3,147 3,092 Trade accounts receivable, less allowances of $61 and $53, respectively 4,873 4,759 Inventories 3,277 3,264 Prepaid expenses and other assets 2,886 2,781 Assets held for sale — 2,973
TOTAL CURRENT ASSETS 31,304 30,328
EQUITY METHOD INVESTMENTS 10,393 9,216 OTHER INVESTMENTS, PRINCIPALLY BOTTLING COMPANIES 1,119 1,232 OTHER ASSETS 4,661 3,585 PROPERTY, PLANT AND EQUIPMENT — net 14,967 14,476 TRADEMARKS WITH INDEFINITE LIVES 6,744 6,527 BOTTLERS’ FRANCHISE RIGHTS WITH INDEFINITE LIVES 7,415 7,405 GOODWILL 12,312 12,255 OTHER INTANGIBLE ASSETS 1,140 1,150
TOTAL ASSETS $ 90,055 $ 86,174
LIABILITIES AND EQUITY
CURRENT LIABILITIES Accounts payable and accrued expenses $ 9,577 $ 8,680 Loans and notes payable 16,901 16,297 Current maturities of long-term debt 1,024 1,577 Accrued income taxes 309 471 Liabilities held for sale — 796
TOTAL CURRENT LIABILITIES 27,811 27,821
LONG-TERM DEBT 19,154 14,736 OTHER LIABILITIES 3,498 5,468 DEFERRED INCOME TAXES 6,152 4,981 THE COCA-COLA COMPANY SHAREOWNERS’ EQUITY
Common stock, $0.25 par value; Authorized — 11,200 shares; Issued — 7,040 and 7,040 shares, respectively 1,760 1,760
Capital surplus 12,276 11,379 Reinvested earnings 61,660 58,045 Accumulated other comprehensive income (loss) (3,432) (3,385) Treasury stock, at cost — 2,638 and 2,571 shares, respectively (39,091) (35,009)
EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY 33,173 32,790 EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS 267 378
TOTAL EQUITY 33,440 33,168
TOTAL LIABILITIES AND EQUITY $ 90,055 $ 86,174
Refer to Notes to Consolidated Financial Statements.
Appendix C Specimen Financial Statements: The Coca-Cola Company C-3
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31, 2013 2012 2011
(In millions)
OPERATING ACTIVITIES
Consolidated net income $ 8,626 $ 9,086 $ 8,646 Depreciation and amortization 1,977 1,982 1,954 Stock-based compensation expense 227 259 354 Deferred income taxes 648 632 1,035 Equity (income) loss — net of dividends (201) (426) (269) Foreign currency adjustments 168 (130) 7 Significant (gains) losses on sales of assets — net (670) (98) (220) Other operating charges 465 166 214 Other items 234 254 (354) Net change in operating assets and liabilities (932) (1,080) (1,893)
Net cash provided by operating activities 10,542 10,645 9,474
INVESTING ACTIVITIES
Purchases of investments (14,782) (14,824) (4,798) Proceeds from disposals of investments 12,791 7,791 5,811 Acquisitions of businesses, equity method investments and nonmarketable securities (353) (1,486) (971) Proceeds from disposals of businesses, equity method investments and nonmarketable securities 872 20 398 Purchases of property, plant and equipment (2,550) (2,780) (2,920) Proceeds from disposals of property, plant and equipment 111 143 101 Other investing activities (303) (268) (145)
Net cash provided by (used in) investing activities (4,214) (11,404) (2,524)
FINANCING ACTIVITIES
Issuances of debt 43,425 42,791 27,495 Payments of debt (38,714) (38,573) (22,530) Issuances of stock 1,328 1,489 1,569 Purchases of stock for treasury (4,832) (4,559) (4,513) Dividends (4,969) (4,595) (4,300) Other financing activities 17 100 45
Net cash provided by (used in) financing activities (3,745) (3,347) (2,234)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (611) (255) (430)
CASH AND CASH EQUIVALENTS
Net increase (decrease) during the year 1,972 (4,361) 4,286 Balance at beginning of year 8,442 12,803 8,517
Balance at end of year $ 10,414 $ 8,442 $ 12,803
Refer to Notes to Consolidated Financial Statements.
C-4 Appendix C Specimen Financial Statements: The Coca-Cola Company
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREOWNERS’ EQUITY
Year Ended December 31, 2013 2012 2011
(In millions except per share data)
EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY
NUMBER OF COMMON SHARES OUTSTANDING
Balance at beginning of year 4,469 4,526 4,583 Purchases of treasury stock (121) (121) (127) Treasury stock issued to employees related to stock compensation plans 54 64 70
Balance at end of year 4,402 4,469 4,526
COMMON STOCK $ 1,760 $ 1,760 $ 1,760
CAPITAL SURPLUS
Balance at beginning of year 11,379 10,332 9,177 Stock issued to employees related to stock compensation plans 569 640 724 Tax benefit (charge) from stock compensation plans 144 144 79 Stock-based compensation 227 259 354 Other activities (43) 4 (2)
Balance at end of year 12,276 11,379 10,332
REINVESTED EARNINGS
Balance at beginning of year 58,045 53,621 49,337 Net income attributable to shareowners of The Coca-Cola Company 8,584 9,019 8,584 Dividends (per share — $1.12, $1.02 and $0.94 in 2013, 2012 and 2011, respectively) (4,969) (4,595) (4,300)
Balance at end of year 61,660 58,045 53,621
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Balance at beginning of year (3,385) (2,774) (1,509) Net other comprehensive income (loss) (47) (611) (1,265)
Balance at end of year (3,432) (3,385) (2,774)
TREASURY STOCK
Balance at beginning of year (35,009) (31,304) (27,762) Stock issued to employees related to stock compensation plans 745 786 830 Purchases of treasury stock (4,827) (4,491) (4,372)
Balance at end of year (39,091) (35,009) (31,304)
TOTAL EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY $ 33,173 $ 32,790 $ 31,635
EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS
Balance at beginning of year $ 378 $ 286 $ 314 Net income attributable to noncontrolling interests 42 67 62 Net foreign currency translation adjustment (3) 38 (52) Dividends paid to noncontrolling interests (58) (48) (38) Acquisition of interests held by noncontrolling owners (34) (15) — Contributions by noncontrolling interests 6 — — Business combinations 25 50 — Deconsolidation of certain entities (89) — —
TOTAL EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS $ 267 $ 378 $ 286
Refer to Notes to Consolidated Financial Statements.
Amazon.com, Inc. is the world’s largest online retailer. It also produces con- sumer electronics—notably the Kindle e-book reader and the Kindle Fire Tablet computer—and is a major provider of cloud computing services. The following are Amazon’s ! nancial statements as presented in the company’s 2013 annual report. To access Amazon’s complete annual report, including notes to the ! nan- cial statements, follow these steps:
1. Go to www.amazon.com.
2. Select the Investor Relations link at the bottom of the page and then select the 2013 Annual Report under Annual Reports and Proxies.
3. The Notes to Consolidated Financial Statements begin on page 40.
Specimen Financial Statements: Amazon.com, Inc.
Appendix D
D-1
AMAZON.COM, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Year Ended December 31,
2013 2012 2011
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD $ 8,084 $ 5,269 $ 3,777
OPERATING ACTIVITIES:
Net income (loss) 274 (39) 631
Adjustments to reconcile net income (loss) to net cash from operating activities:
Depreciation of property and equipment, including internal-use software and website development, and other amortization 3,253 2,159 1,083
Stock-based compensation 1,134 833 557
Other operating expense (income), net 114 154 154
Losses (gains) on sales of marketable securities, net 1 (9) (4)
Other expense (income), net 166 253 (56)
Deferred income taxes (156) (265) 136
Excess tax benefits from stock-based compensation (78) (429) (62)
Changes in operating assets and liabilities:
Inventories (1,410) (999) (1,777)
Accounts receivable, net and other (846) (861) (866)
Accounts payable 1,888 2,070 2,997
Accrued expenses and other 736 1,038 1,067
Additions to unearned revenue 2,691 1,796 1,064
Amortization of previously unearned revenue (2,292) (1,521) (1,021)
Net cash provided by (used in) operating activities 5,475 4,180 3,903
INVESTING ACTIVITIES:
Purchases of property and equipment, including internal-use software and website development (3,444) (3,785) (1,811)
Acquisitions, net of cash acquired, and other (312) (745) (705)
Sales and maturities of marketable securities and other investments 2,306 4,237 6,843
Purchases of marketable securities and other investments (2,826) (3,302) (6,257)
Net cash provided by (used in) investing activities (4,276) (3,595) (1,930)
FINANCING ACTIVITIES:
Excess tax benefits from stock-based compensation 78 429 62
Common stock repurchased — (960) (277)
Proceeds from long-term debt and other 394 3,378 177
Repayments of long-term debt, capital lease, and finance lease obligations (1,011) (588) (444)
Net cash provided by (used in) financing activities (539) 2,259 (482)
Foreign-currency effect on cash and cash equivalents (86) (29) 1
Net increase (decrease) in cash and cash equivalents 574 2,815 1,492
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 8,658 $ 8,084 $ 5,269
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest on long-term debt $ 97 $ 31 $ 14
Cash paid for income taxes (net of refunds) 169 112 33
Property and equipment acquired under capital leases 1,867 802 753
Property and equipment acquired under build-to-suit leases 877 29 259
See accompanying notes to consolidated financial statements.
D-2 Appendix D Specimen Financial Statements: Amazon.com, Inc.
AMAZON.COM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
Year Ended December 31,
2013 2012 2011
Net product sales $ 60,903 $ 51,733 $ 42,000
Net services sales 13,549 9,360 6,077
Total net sales 74,452 61,093 48,077
Operating expenses (1):
Cost of sales 54,181 45,971 37,288
Fulfillment 8,585 6,419 4,576
Marketing 3,133 2,408 1,630
Technology and content 6,565 4,564 2,909
General and administrative 1,129 896 658
Other operating expense (income), net 114 159 154
Total operating expenses 73,707 60,417 47,215
Income from operations 745 676 862
Interest income 38 40 61
Interest expense (141) (92) (65)
Other income (expense), net (136) (80) 76
Total non-operating income (expense) (239) (132) 72
Income before income taxes 506 544 934
Provision for income taxes (161) (428) (291)
Equity-method investment activity, net of tax (71) (155) (12)
Net income (loss) $ 274 $ (39) $ 631
Basic earnings per share $ 0.60 $ (0.09) $ 1.39
Diluted earnings per share $ 0.59 $ (0.09) $ 1.37
Weighted average shares used in computation of earnings per share:
Basic 457 453 453
Diluted 465 453 461
_____________
(1) Includes stock-based compensation as follows:
Fulfillment
Marketing
Technology and content
General and administrative
$ 294
88
603
149
$ 212
61
434
126
$ 133
39
292
93
See accompanying notes to consolidated financial statements.
Appendix D Specimen Financial Statements: Amazon.com, Inc. D-3
AMAZON.COM, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions)
Year Ended December 31,
2013 2012 2011
Net income (loss) $ 274 $ (39) $ 631
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax of $(20), $(30), and $20 63 76 (123)
Net change in unrealized gains on available-for-sale securities:
Unrealized gains (losses), net of tax of $3, $(3), and $1 (10) 8 (1)
Reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax of $(1), $3, and $1 1 (7) (2)
Net unrealized gains (losses) on available-for-sale securities (9) 1 (3)
Total other comprehensive income (loss) 54 77 (126)
Comprehensive income $ 328 $ 38 $ 505
See accompanying notes to consolidated financial statements.
D-4 Appendix D Specimen Financial Statements: Amazon.com, Inc.
AMAZON.COM, INC.
CONSOLIDATED BALANCE SHEETS
(in millions, except per share data)
December 31,
2013 2012
ASSETS
Current assets:
Cash and cash equivalents $ 8,658 $ 8,084
Marketable securities 3,789 3,364
Inventories 7,411 6,031
Accounts receivable, net and other 4,767 3,817
Total current assets 24,625 21,296
Property and equipment, net 10,949 7,060
Goodwill 2,655 2,552
Other assets 1,930 1,647
Total assets $ 40,159 $ 32,555
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 15,133 $ 13,318
Accrued expenses and other 6,688 4,892
Unearned revenue 1,159 792
Total current liabilities 22,980 19,002
Long-term debt 3,191 3,084
Other long-term liabilities 4,242 2,277
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value:
Authorized shares — 500
Issued and outstanding shares — none — —
Common stock, $0.01 par value:
Authorized shares — 5,000
Issued shares — 483 and 478
Outstanding shares — 459 and 454 5 5
Treasury stock, at cost (1,837) (1,837)
Additional paid-in capital 9,573 8,347
Accumulated other comprehensive loss (185) (239)
Retained earnings 2,190 1,916
Total stockholders’ equity 9,746 8,192
Total liabilities and stockholders’ equity $ 40,159 $ 32,555
See accompanying notes to consolidated financial statements.
Appendix D Specimen Financial Statements: Amazon.com, Inc. D-5
AMAZON.COM, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(in millions)
Common Stock
Shares Amount Treasury Stock
Additional Paid-In Capital
Accumulated Other
Comprehensive Income (Loss)
Retained Earnings
Total Stockholders’
Equity
Balance as of January 1, 2011 451 $ 5 $ (600) $ 6,325 $ (190) $ 1,324 $ 6,864
Net income — — — — — 631 631
Other comprehensive income (loss) — — — — (126) — (126)
Exercise of common stock options 5 — — 7 — — 7
Repurchase of common stock (1) — (277) — — — (277)
Excess tax benefits from stock-based compensation — — — 62 — — 62
Stock-based compensation and issuance of employee benefit plan stock — — — 569 — — 569
Issuance of common stock for acquisition activity — — — 27 — — 27
Balance as of December 31, 2011 455 5 (877) 6,990 (316) 1,955 7,757
Net income (loss) — — — — — (39) (39)
Other comprehensive income — — — — 77 — 77
Exercise of common stock options 4 — — 8 — — 8
Repurchase of common stock (5) — (960) — — — (960)
Excess tax benefits from stock-based compensation — — — 429 — — 429
Stock-based compensation and issuance of employee benefit plan stock — — — 854 — — 854
Issuance of common stock for acquisition activity — — — 66 — — 66
Balance as of December 31, 2012 454 5 (1,837) 8,347 (239) 1,916 8,192
Net income — — — — — 274 274
Other comprehensive income — — — — 54 — 54
Exercise of common stock options 5 — — 4 — — 4
Repurchase of common stock — — — — — — —
Excess tax benefits from stock-based compensation — — — 73 — — 73
Stock-based compensation and issuance of employee benefit plan stock — — — 1,149 — — 1,149
Balance as of December 31, 2013 459 $ 5 $ (1,837) $ 9,573 $ (185) $ 2,190 $ 9,746
See accompanying notes to consolidated financial statements.
The following are Wal-Mart Stores, Inc.’s ! nancial statements as presented in the company’s 2014 annual report. To access Wal-Mart’s complete annual report, including notes to the ! nancial statements, follow these steps:
1. Go to http://corporate.walmart.com.
2. Select Annual Reports under the Investors tab.
3. Select the 2014 Annual Report (Wal-Mart’s ! scal year ends January 31).
4. The Notes to Consolidated Financial Statements begin on page 40.
Specimen Financial Statements: Wal-Mart Stores, Inc.
Appendix E
E-1
Fiscal Years Ended January 31,
(Amounts in millions, except per share data) 2014 2013 2012
Revenues: Net sales $473,076 $465,604 $443,416 Membership and other income 3,218 3,047 3,093
Total revenues 476,294 468,651 446,509 Costs and expenses: Cost of sales 358,069 352,297 334,993 Operating, selling, general and administrative expenses 91,353 88,629 85,025
Operating income 26,872 27,725 26,491 Interest: Debt 2,072 1,977 2,034 Capital leases 263 272 286 Interest income (119) (186) (161)
Interest, net 2,216 2,063 2,159
Income from continuing operations before income taxes 24,656 25,662 24,332 Provision for income taxes: Current 8,619 7,976 6,722 Deferred (514) (18) 1,202
Total provision for income taxes 8,105 7,958 7,924
Income from continuing operations 16,551 17,704 16,408 Income (loss) from discontinued operations, net of income taxes 144 52 (21)
Consolidated net income 16,695 17,756 16,387 Less consolidated net income attributable to noncontrolling interest (673) (757) (688)
Consolidated net income attributable to Walmart $ 16,022 $ 16,999 $ 15,699
Basic net income per common share: Basic income per common share from continuing operations attributable to Walmart $ 4.87 $ 5.03 $ 4.55 Basic income (loss) per common share from discontinued operations attributable to Walmart 0.03 0.01 (0.01)
Basic net income per common share attributable to Walmart $ 4.90 $ 5.04 $ 4.54
Diluted net income per common share: Diluted income per common share from continuing operations attributable to Walmart $ 4.85 $ 5.01 $ 4.53 Diluted income (loss) per common share from discontinued operations attributable to Walmart 0.03 0.01 (0.01)
Diluted net income per common share attributable to Walmart $ 4.88 $ 5.02 $ 4.52
Weighted-average common shares outstanding: Basic 3,269 3,374 3,460 Diluted 3,283 3,389 3,474
Dividends declared per common share $ 1.88 $ 1.59 $ 1.46
See accompanying notes.
Consolidated Statements of Income
E-2 Appendix E Specimen Financial Statements: Wal-Mart Stores, Inc.
As of January 31,
(Amounts in millions) 2014 2013
ASSETS
Current assets:
Cash and cash equivalents $ 7,281 $ 7,781
Receivables, net 6,677 6,768
Inventories 44,858 43,803
Prepaid expenses and other 1,909 1,551
Current assets of discontinued operations 460 37
Total current assets 61,185 59,940
Property and equipment:
Property and equipment 173,089 165,825
Less accumulated depreciation (57,725) (51,896)
Property and equipment, net 115,364 113,929
Property under capital leases:
Property under capital leases 5,589 5,899
Less accumulated amortization (3,046) (3,147)
Property under capital leases, net 2,543 2,752
Goodwill 19,510 20,497
Other assets and deferred charges 6,149 5,987
Total assets $204,751 $203,105
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY
Current liabilities:
Short-term borrowings $ 7,670 $ 6,805
Accounts payable 37,415 38,080
Accrued liabilities 18,793 18,808
Accrued income taxes 966 2,211
Long-term debt due within one year 4,103 5,587
Obligations under capital leases due within one year 309 327
Current liabilities of discontinued operations 89 —
Total current liabilities 69,345 71,818
Long-term debt 41,771 38,394
Long-term obligations under capital leases 2,788 3,023
Deferred income taxes and other 8,017 7,613
Redeemable noncontrolling interest 1,491 519
Commitments and contingencies
Equity:
Common stock 323 332
Capital in excess of par value 2,362 3,620
Retained earnings 76,566 72,978
Accumulated other comprehensive income (loss) (2,996) (587)
Total Walmart shareholders’ equity 76,255 76,343
Nonredeemable noncontrolling interest 5,084 5,395
Total equity 81,339 81,738
Total liabilities, redeemable noncontrolling interest and equity $204,751 $203,105
See accompanying notes.
Consolidated Balance Sheets
Consolidated Statements of Comprehensive Income Fiscal Years Ended January 31,
(Amounts in millions) 2014 2013 2012
Consolidated net income $16,695 $17,756 $16,387 Less consolidated net income attributable to nonredeemable noncontrolling interest (606) (684) (627) Less consolidated net income attributable to redeemable noncontrolling interest (67) (73) (61)
Consolidated net income attributable to Walmart 16,022 16,999 15,699
Other comprehensive income (loss), net of income taxes Currency translation and other (3,146) 1,042 (2,758) Derivative instruments 207 136 (67) Minimum pension liability 153 (166) 43
Other comprehensive income (loss), net of income taxes (2,786) 1,012 (2,782) Less other comprehensive income (loss) attributable to nonredeemable noncontrolling interest 311 (138) 660 Less other comprehensive income (loss) attributable to redeemable noncontrolling interest 66 (51) 66
Other comprehensive income (loss) attributable to Walmart (2,409) 823 (2,056)
Comprehensive income, net of income taxes 13,909 18,768 13,605 Less comprehensive income (loss) attributable to nonredeemable noncontrolling interest (295) (822) 33 Less comprehensive income (loss) attributable to redeemable noncontrolling interest (1) (124) 5
Comprehensive income attributable to Walmart $13,613 $17,822 $13,643
See accompanying notes.
Appendix E Specimen Financial Statements: Wal-Mart Stores, Inc. E-3
Accumulated Total
Capital in Other Walmart Nonredeemable Redeemable
Common Stock Excess of Retained Comprehensive Shareholders’ Noncontrolling Total Noncontrolling
(Amounts in millions) Shares Amount Par Value Earnings Income (Loss) Equity Interest Equity Interest
Balances as of February 1, 2011 3,516 $352 $ 3,577 $63,967 $ 646 $68,542 $2,705 $71,247 $ 408
Consolidated net income — — — 15,699 — 15,699 627 16,326 61
Other comprehensive loss,
net of income taxes — — — — (2,056) (2,056) (660) (2,716) (66)
Cash dividends declared
($1.46 per share) — — — (5,048) — (5,048) — (5,048) —
Purchase of Company stock (113) (11) (229) (5,930) — (6,170) — (6,170) —
Nonredeemable noncontrolling
interest of acquired entity — — — — — — 1,988 1,988 —
Other 15 1 344 3 — 348 (214) 134 1
Balances as of January 31, 2012 3,418 342 3,692 68,691 (1,410) 71,315 4,446 75,761 404
Consolidated net income — — — 16,999 — 16,999 684 17,683 73
Other comprehensive income,
net of income taxes — — — — 823 823 138 961 51
Cash dividends declared
($1.59 per share) — — — (5,361) — (5,361) — (5,361) —
Purchase of Company stock (115) (11) (357) (7,341) — (7,709) — (7,709) —
Nonredeemable noncontrolling
interest of acquired entity — — — — — — 469 469 —
Other 11 1 285 (10) — 276 (342) (66) (9)
Balances as of January 31, 2013 3,314 332 3,620 72,978 (587) 76,343 5,395 81,738 519
Consolidated net income — — — 16,022 — 16,022 595 16,617 78
Other comprehensive loss,
net of income taxes — — — — (2,409) (2,409) (311) (2,720) (66)
Cash dividends declared
($1.88 per share) — — — (6,139) — (6,139) — (6,139) —
Purchase of Company stock (87) (9) (294) (6,254) — (6,557) — (6,557) —
Redemption value adjustment
of redeemable
noncontrolling interest — — (1,019) — — (1,019) — (1,019) 1,019
Other 6 — 55 (41) — 14 (595) (581) (59)
Balances as of January 31, 2014 3,233 $323 $ 2,362 $76,566 $(2,996) $76,255 $5,084 $81,339 $1,491
Consolidated Statements of Shareholders’ Equity
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E-4 Appendix E Specimen Financial Statements: Wal-Mart Stores, Inc.
Fiscal Years Ended January 31,
(Amounts in millions) 2014 2013 2012
Cash flows from operating activities:
Consolidated net income $ 16,695 $ 17,756 $ 16,387
Income (loss) from discontinued operations, net of income taxes (144) (52) 21
Income from continuing operations 16,551 17,704 16,408
Adjustments to reconcile income from continuing operations to net cash
provided by operating activities:
Depreciation and amortization 8,870 8,478 8,106
Deferred income taxes (279) (133) 1,050
Other operating activities 938 602 468
Changes in certain assets and liabilities, net of e>ects of acquisitions:
Receivables, net (566) (614) (796)
Inventories (1,667) (2,759) (3,727)
Accounts payable 531 1,061 2,687
Accrued liabilities 103 271 (935)
Accrued income taxes (1,224) 981 994
Net cash provided by operating activities 23,257 25,591 24,255
Cash flows from investing activities:
Payments for property and equipment (13,115) (12,898) (13,510)
Proceeds from the disposal of property and equipment 727 532 580
Investments and business acquisitions, net of cash acquired (15) (316) (3,548)
Other investing activities 105 71 (131)
Net cash used in investing activities (12,298) (12,611) (16,609)
Cash flows from financing activities:
Net change in short-term borrowings 911 2,754 3,019
Proceeds from issuance of long-term debt 7,072 211 5,050
Payments of long-term debt (4,968) (1,478) (4,584)
Dividends paid (6,139) (5,361) (5,048)
Dividends paid to and stock purchases of noncontrolling interest (722) (414) (526)
Purchase of Company stock (6,683) (7,600) (6,298)
Other ?nancing activities (488) (84) (71)
Net cash used in ?nancing activities (11,017) (11,972) (8,458)
E>ect of exchange rates on cash and cash equivalents (442) 223 (33)
Net increase (decrease) in cash and cash equivalents (500) 1,231 (845)
Cash and cash equivalents at beginning of year 7,781 6,550 7,395
Cash and cash equivalents at end of year $ 7,281 $ 7,781 $ 6,550
Supplemental disclosure of cash flow information:
Income taxes paid $ 8,641 $ 7,304 $ 5,899
Interest paid 2,362 2,262 2,346
See accompanying notes.
Consolidated Statements of Cash Flows
Louis Vuitton is a French company and is one of the leading international fashion houses in the world. Louis Vuitton has been named the world’s most valuable luxury brand. Note that its ! nancial statements are IFRS-based and are presented in euros (€). To access the company’s complete ! nancial statements, follow these steps:
1. Go to www.lvmh.com/investor-relations.
2. Select 2013 Annual report, and then select the Finance tab once the Intro has played.
3. Note that the comments (notes) to the ! nancial statements are placed after each corresponding statement.
Specimen Financial Statements: Louis Vuitton
Appendix F
F-1
(EUR millions) 2013 2012(1) 2011(1)
Brands and other intangible assets 11,458 11,510 11,482
Goodwill 9,959 7,806 6,957
Property, plant and equipment 9,602 8,769 8,017
Investments in associates 152 163 170
Non-current available for sale fi nancial assets 7,080 6,004 5,982
Other non-current assets 432 519 478
Deferred tax 909 954 760
NON-CURRENT ASSETS 39,592 35,725 33,846
Inventories and work in progress 8,586 8,080 7,510
Trade accounts receivable 2,189 1,985 1,878
Income taxes 235 201 121
Other current assets 1,851 1,811 1,455
Cash and cash equivalents 3,221 2,196 2,303
CURRENT ASSETS 16,082 14,273 13,267
ASSETS
TOTAL ASSETS 55,674 49,998 47,113
CONSOLIDATED BAL ANCE SHEET
(Continued.)
F-2 Appendix F Specimen Financial Statements: Louis Vuitton
(EUR millions) 2013 2012(1) 2011(1)
Share capital 152 152 152
Share premium account 3,849 3,848 3,801
Treasury shares and LVMH-share settled derivatives (451) (414) (485)
Cumulative translation adjustment (8) 342 431
Revaluation reserves 3,900 2,731 2,637
Other reserves 15,817 14,341 12,770
Net profi t, Group share 3,436 3,424 3,065
Equity, Group share 26,695 24,424 22,371
Minority interests 1,028 1,084 1,055
TOTAL EQUITY 27,723 25,508 23,426
Long term borrowings 4,159 3,836 4,132
Provisions 1,755 1,756 1,530
Deferred tax 3,934 3,960 3,925
Other non-current liabilities 6,403 5,456 4,506
NON-CURRENT LIABILITIES 16,251 15,008 14,093
Short term borrowings 4,688 2,976 3,134
Trade accounts payable 3,308 3,134 2,952
Income taxes 382 442 443
Provisions 322 335 349
Other current liabilities 3,000 2,595 2,716
CURRENT LIABILITIES 11,700 9,482 9,594
TOTAL LIABILITIES AND EQUITY 55,674 49,998 47,113
LIABILITIES AND EQUITY
(1) The balance sheets as of December 31, 2012 and 2011 have been restated to refl ect the retrospective application as of January 1, 2011 of IAS 19 Employee Benefi ts as amended.
(Continued.)
Appendix F Specimen Financial Statements: Louis Vuitton F-3
F-4 Appendix F Specimen Financial Statements: Louis Vuitton
CONSOLIDATED STATEMENT OF COMPREHENSIVE GAINS AND LOSSES
(EUR millions) 2013 2012 (1) 2011(1)
NET PROFIT BEFORE MINORITY INTERESTS 3,947 3,909 3,465
Translation adjustments (346) (99) 190
Tax impact (48) (18) 47
(394) (117) 237
Change in value of available for sale fi nancial assets 963 (27) 1,634
Amounts transferred to income statement (16) (14) (38)
Tax impact (35) (6) (116)
912 (47) 1,480
Change in value of hedges of future foreign currency cash fl ows 304 182 95
Amounts transferred to income statement (265) 13 (168)
Tax impact (17) (50) 21
22 145 (52)
GAINS AND LOSSES RECOGNIZED IN EQUITY, TRANSFERABLE TO INCOME STATEMENT 540 (19) 1,665
Change in value of vineyard land 369 85 25
Tax impact (127) (28) (11)
242 57 14
Employee benefi t commitments: change in value resulting from actuarial gains and losses 80 (101) (45)
Tax impact (22) 29 13
58 (72) (32)
GAINS AND LOSSES RECOGNIZED IN EQUITY, NOT TRANSFERABLE TO INCOME STATEMENT 300 (15) (18)
COMPREHENSIVE INCOME 4,787 3,875 5,112
Minority interests (532) (470) (429)
COMPREHENSIVE INCOME, GROUP SHARE 4,255 3,405 4,683
(1) The consolidated statements of comprehensive gains and losses as of December 31, 2012 and 2011 have been restated to refl ect the retrospective application as of January 1, 2011 of IAS 19 Employee Benefi ts as amended.
Appendix F Specimen Financial Statements: Louis Vuitton F-5
CONSOLIDATED CASH FLOW STATEMENT
(EUR millions) 2013 2012 2011
I. OPERATING ACTIVITIES AND OPERATING INVESTMENTS Operating profi t Net increase in depreciation, amortization and provisions Other computed expenses Dividends received Other adjustments
5,894
1,454 (29) 86
(76)
5,739
1,299 (62) 188
(51)
5,154
999 (45) 61
(32)
CASH FROM OPERATIONS BEFORE CHANGES IN WORKING CAPITAL 7,329 7,113 6,137
Cost of net fi nancial debt: interest paid Income taxes paid
(112)
(1,979)
(154)
(1,970)
(152)
(1,544)
NET CASH FROM OPERATING ACTIVITIES BEFORE CHANGES IN WORKING CAPITAL 5,238 4,989 4,441
Change in working capital (617) (813) (534)
NET CASH FROM OPERATING ACTIVITIES 4,621 4,176 3,907
Operating investments (1,663) (1,702) (1,730)
NET CASH FROM OPERATING ACTIVITIES AND OPERATING INVESTMENTS (free cash D ow) 2,958 2,474 2,177
II. FINANCIAL INVESTMENTS Purchase of non-current available for sale fi nancial assets Proceeds from sale of non-current available for sale fi nancial assets Impact of purchase and sale of consolidated investments
(197) 38
(2,158)
(131) 36
(45)
(518) 17
(785)(1)
NET CASH FROM (used in) FINANCIAL INVESTMENTS (2,317) (140) (1,286)
III. TRANSACTIONS RELATING TO EQUITY Capital increases of LVMH
Capital increases of subsidiaries subscribed by minority interests Acquisition and disposals of treasury shares and LVMH-share settled derivatives Interim and fi nal dividends paid by LVMH Interim and fi nal dividends paid to minority interests in consolidated subsidiaries Purchase and proceeds from sale of minority interests
66 7
(113) (1,501) (220) (150)
94 8 5
(1,447) (314) (206)
94(1) 3 2
(1,069) (189)
(1,413)
NET CASH FROM (used in) TRANSACTIONS RELATING TO EQUITY (1,911) (1,860) (2,572)
CHANGE IN CASH BEFORE FINANCING ACTIVITIES (1,270) 474 (1,681)
IV. FINANCING ACTIVITIES Proceeds from borrowings Repayment of borrowings Purchase and proceeds from sale of current available for sale fi nancial assets
3,145 (1,099)
101
1,068 (1,526)
(67)
2,659 (1,005)
6
NET CASH FROM (used in) FINANCING ACTIVITIES 2,147 (525) 1,660
V. EFFECT OF EXCHANGE RATE CHANGES 46 (42) 60
NET INCREASE (decrease) IN CASH AND CASH EQUIVALENTS (I + II + III + IV + V) 923 (93) 39
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD CASH AND CASH EQUIVALENTS AT END OF PERIOD
1,988 2,911
2,081 1,988
2,042 2,081
Transactions included in the table above, generating no change in cash: – acquisition of assets by means of fi nance leases 7 5 3
(1) Not including the impact of the amount attributable to the acquisition of Bulgari remunerated by the capital increase of LVMH SA as of June 30, 2011, which did not generate any cash fl ows.
(EUR millions) Number of shares
Share capital Share premium account
Treasury shares and LVMH- share settled derivatives
Cumulative translation adjustment
AS OF DECEMBER 31, 2012 AFTER RESTATEMENT 508,163,349 152 3,848 (414) 342
Gains and losses recognized in equity (350)
Net profi t
COMPREHENSIVE INCOME - - - (350)
Stock option plan and similar expenses
(Acquisition)/disposal of treasury shares and LVMH-share settled derivatives (103)
Exercise of LVMH share subscription options 1,025,418 67
Retirement of LVMH shares (1,395,106) (66) 66
Capital increase in subsidiaries
Interim and final dividends paid
Changes in control of consolidated entities
Acquisition and disposal of minority interests’ shares
Purchase commitments for minority interests’ shares
AS OF DECEMBER 31, 2013 507,793,661 152 3,849 (451) (8)
Revaluation reserves Net profi t and other
reserves
Total equity
Available for sale
fi nancial assets
Hedges of future foreign
currency cash fl ows
Vineyard land
Employee benefi t
commitments
Group share Minority interests
Total
1,943 118 758 (88) 17,765 24,424 1,084 25,508
912 18 188 51 819 21 840
3,436 3,436 511 3,947
912 18 188 51 3,436 4,255 532 4,787
31 31 3 34
(7) (110) - (110)
67 - 67
- - -
- 8 8
(1,500) (1,500) (228) (1,728)
1 1 50 51
(73) (73) (76) (149)
(400) (400) (345) (745)
2,855 136 946 (37) 19,253 26,695 1,028 27,723
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
