ABB Ltd Interim Consolidated Income Statements (unaudited) Year ended ($ in millions, except per share data in $) Dec. 31, 2013 Three months ended Dec. 31, 2012 Dec. 31, 2013 Dec. 31, 2012 35,282 6,566 41,848 (25,728) (4,128) (29,856) 11,992 (6,094) (1,470) (41) 4,387 69 (390) 4,066 (1,122) 2,944 (37) 2,907 (120) 2,787 32,979 6,357 39,336 (23,838) (4,120) (27,958) 11,378 (5,756) (1,464) (100) 4,058 73 (293) 3,838 (1,030) 2,808 4 2,812 (108) 2,704 9,549 1,824 11,373 (7,287) (1,144) (8,431) 2,942 (1,670) (415) (34) 823 19 (91) 751 (178) 573 (22) 551 (26) 525 9,251 1,770 11,021 (6,948) (1,150) (8,098) 2,923 (1,576) (390) (94) 863 18 (55) 826 (202) 624 624 (20) 604 2,824 2,787 2,700 2,704 547 525 604 604 Basic earnings per share attributable to ABB shareholders: Income from continuing operations, net of tax Net income 1.23 1.21 1.18 1.18 0.24 0.23 0.26 0.26 Diluted earnings per share attributable to ABB shareholders: Income from continuing operations, net of tax Net income 1.23 1.21 1.18 1.18 0.24 0.23 0.26 0.26 2,297 2,305 2,293 2,295 2,299 2,308 2,295 2,298 Sales of products Sales of services Total revenues Cost of products Cost of services Total cost of sales Gross profit Selling, general and administrative expenses Non-order related research and development expenses Other income (expense), net Income from operations Interest and dividend income Interest and other finance expense Income from continuing operations before taxes Provision for taxes Income from continuing operations, net of tax Income (loss) from discontinued operations, net of tax Net income Net income attributable to noncontrolling interests Net income attributable to ABB Amounts attributable to ABB shareholders: Income from continuing operations, net of tax Net income Weighted-average number of shares outstanding (in millions) used to compute: Basic earnings per share attributable to ABB shareholders Diluted earnings per share attributable to ABB shareholders See Notes to the Interim Consolidated Financial Information ABB Ltd Interim Condensed Consolidated Statements of Comprehensive Income (unaudited) Year ended ($ in millions) Total comprehensive income, net of tax Total comprehensive income attributable to noncontrolling interests, net of tax Total comprehensive income attributable to ABB shareholders, net of tax See Notes to the Interim Consolidated Financial Information Dec. 31, 2013 3,413 (115) 3,298 Three months ended Dec. 31, 2012 2,687 (98) 2,589 Dec. 31, 2013 1,037 (31) 1,006 Dec. 31, 2012 246 (10) 236 ABB Ltd Interim Consolidated Balance Sheets (unaudited) ($ in millions, except share data) Dec. 31, 2013 Dec. 31, 2012 Cash and equivalents Marketable securities and short-term investments Receivables, net Inventories, net Prepaid expenses Deferred taxes Other current assets Total current assets 6,021 464 12,146 6,004 252 832 706 26,425 6,875 1,606 11,575 6,182 311 869 584 28,002 Property, plant and equipment, net Goodwill Other intangible assets, net Prepaid pension and other employee benefits Investments in equity-accounted companies Deferred taxes Other non-current assets Total assets 6,254 10,670 3,297 93 197 370 758 48,064 5,947 10,226 3,501 71 213 334 776 49,070 Accounts payable, trade Billings in excess of sales Short-term debt and current maturities of long-term debt Advances from customers Deferred taxes Provisions for warranties Other provisions Other current liabilities Total current liabilities 5,112 1,714 453 1,726 259 1,362 1,807 4,242 16,675 4,992 2,035 2,537 1,937 270 1,291 1,575 4,337 18,974 Long-term debt Pension and other employee benefits Deferred taxes Other non-current liabilities Total liabilities 7,570 1,639 1,265 1,707 28,856 7,534 2,290 1,260 1,566 31,624 1,750 19,186 (2,012) 1,691 18,066 (2,523) (246) 18,678 530 19,208 48,064 (328) 16,906 540 17,446 49,070 Commitments and contingencies Stockholders' equity: Capital stock and additional paid-in capital (2,314,743,264 issued shares at December 31, 2013 and 2012) Retained earnings Accumulated other comprehensive loss Treasury stock, at cost (14,093,960 and 18,793,989 shares at December 31, 2013 and 2012, respectively) Total ABB stockholders' equity Noncontrolling interests Total stockholders' equity Total liabilities and stockholders' equity See Notes to the Interim Consolidated Financial Information ABB Ltd Interim Consolidated Statements of Cash Flows (unaudited) Year ended ($ in millions) Operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Pension and other employee benefits Deferred taxes Net gain from sale of property, plant and equipment Other Changes in operating assets and liabilities: Trade receivables, net Inventories, net Trade payables Billings in excess of sales Provisions, net Advances from customers Other assets and liabilities, net Net cash provided by operating activities Dec. 31, 2013 Three months ended Dec. 31, 2012 Dec. 31, 2013 Dec. 31, 2012 2,907 2,812 551 624 1,318 6 (137) (18) 95 1,182 (13) 64 (26) 171 352 17 (126) 2 35 341 43 41 (14) 66 (571) 324 (43) (168) 199 (145) (114) 3,653 (310) 61 (57) 152 (109) 181 (329) 3,779 475 633 (29) (46) 248 (38) 18 2,092 78 527 269 95 182 149 37 2,438 (526) (30) (1,106) (2,288) (67) (1,293) (102) (21) (414) (859) (37) (455) (914) 1,367 118 47 80 (3,694) 1,655 27 40 (31) 5 4 6 9 (8) 19 62 185 (717) 16 29 (5,575) 51 148 (345) 7 25 (1,308) (697) 492 (1,893) 74 (1,667) (13) (149) (3) (3,856) 570 5,986 (1,104) 90 (1,626) (9) (121) (24) 3,762 (140) 50 (70) 71 (8) (16) 33 (80) 467 707 (201) 43 (6) (8) 1,002 66 90 58 60 (854) 2,056 1,725 2,192 Cash and equivalents, beginning of period Cash and equivalents, end of period 6,875 6,021 4,819 6,875 4,296 6,021 4,683 6,875 Supplementary disclosure of cash flow information: Interest paid Taxes paid 287 1,278 189 1,211 108 394 98 296 Investing activities: Purchases of marketable securities (available-for-sale) Purchases of short-term investments Purchases of property, plant and equipment and intangible assets Acquisition of businesses (net of cash acquired) and changes in cost and equity investments Proceeds from sales of marketable securities (available-for-sale) Proceeds from maturity of marketable securities (available-for-sale) Proceeds from short-term investments Proceeds from sales of property, plant and equipment Proceeds from sales of businesses and equity-accounted companies (net of cash disposed) Other investing activities Net cash used in investing activities Financing activities: Net changes in debt with original maturities of 90 days or less Increase in debt Repayment of debt Delivery of shares Dividends paid Acquisition of noncontrolling interests Dividends paid to noncontrolling shareholders Other financing activities Net cash provided by (used in) financing activities Effects of exchange rate changes on cash and equivalents Net change in cash and equivalents - continuing operations See Notes to the Interim Consolidated Financial Information ABB Ltd Interim Consolidated Statements of Changes in Stockholders' Equity (unaudited) Balance at January 1, 2012 1,621 Comprehensive income: Net income (968) 20 (1,472) 12 s' (2,408) (424) Tot al equ stock hol ity der s' 559 16,336 2,704 108 2,812 388 388 (5) 383 4 4 (532) (532) 388 4 (532) No nco ntro lling 15,777 2,704 Foreign currency translation adjustments (net of tax of $6) Effect of change in fair value of available-for-sale securities (net of tax of $2) Unrecognized income (expense) related to pensions and other postretirement plans (net of tax of $(216)) Change in derivatives qualifying as cash flow hedges (net of tax of $7) inte res ts lde r Tot al equ ABB sto ity ckh o sto ck Tre asu ry Tot al com accu pre mula hen te siv d oth e lo e ss r Un rea of c lized ga as der h flow ins (l o iva tive hedg sses ) s e Pen s pos ion an do tret th ir adj ust emen er t me nts plan Un rea on lized av ga sec ailabl ins (l e-fo o urit ies r-sa sses) le ent s 16,988 For ei tran gn cu rr sla tion ency adj ust m Re tai ear ned nin gs ($ in millions) Ca pit add al sto c itio nal k and pai d-in cap ital Accumulated other comprehensive loss 25 25 4 (5) (537) 98 2,687 25 Total comprehensive income 25 2,589 Changes in noncontrolling interests - 6 6 Dividends paid to noncontrolling shareholders - (123) (123) Dividends paid (1,626) (1,626) (1,626) 60 60 90 90 10 10 10 Replacement options issued in connection with acquisition 5 5 5 Other 1 1 Share-based payment arrangements 60 Delivery of shares (6) Call options Balance at December 31, 2012 1,691 96 18,066 (580) 24 (2,004) 37 (2,523) (328) 1 16,906 540 17,446 1,691 Comprehensive income: Net income (580) 24 (2,004) 37 (2,523) s' (328) 2,787 Foreign currency translation adjustments (net of tax of $(8)) Effect of change in fair value of available-for-sale securities (net of tax of $(1)) Unrecognized income (expense) related to pensions and other postretirement plans (net of tax of $171) Change in derivatives qualifying as cash flow hedges (net of tax of $(6)) 149 (17) 394 (15) Tot al equ stock hol ity der s' inte res ont roll ing 2,907 (8) 141 (17) (17) 394 394 (15) (17) 3 397 115 3,413 (15) (1,667) (15) (17) 25 8 - (150) (150) (1,667) (1,667) 71 71 74 74 13 13 13 2 2 2 (2) (2) (2) 71 Delivery of shares (8) Call options See Notes to the Interim Consolidated Financial Information No nc 120 149 (17) Share-based payment arrangements Balance at December 31, 2013 17,446 3,298 Dividends paid Other 540 2,787 Dividends paid to noncontrolling shareholders Replacement options issued in connection with acquisition 16,906 149 Total comprehensive income Changes in noncontrolling interests ts lde r Tot al equ ABB sto ity ckh o k to c ys Tre asu r Tot al com accu pre mula hen te siv d oth e lo e ss r Un rea of c lized ga as der h flow ins (l o iva tive hedg sses ) s e Pen s pos ion an do tret th ir adj ust emen er t me nts plan Un rea on lized av ga sec ailabl ins (l e-fo o urit ies r-sa sses) le ent s 18,066 For ei tran gn cu rr sl a tion ency adj ust m Re tai ear ned nin gs ($ in millions) Balance at January 1, 2013 Ca pit add al sto c itio nal k and pai d-in c api ta l Accumulated other comprehensive loss 1,750 82 19,186 (431) 7 (1,610) 22 (2,012) (246) 18,678 530 19,208