ABB Ltd Interim Consolidated Income Statements (unaudited) Year ended ($ in millions, except per share data in $) Dec. 31, 2009 Dec. 31, 2008 Dec. 31, 2009 Dec. 31, 2008 29,705 5,207 34,912 (20,506) (3,466) (23,972) 10,940 (5,822) (566) 4,552 315 (349) 4,518 (1,119) 3,399 (21) 3,378 (260) 3,118 7,298 1,463 8,761 (5,241) (1,050) (6,291) 2,470 (1,556) (116) 798 28 (31) 795 (170) 625 (9) 616 (76) 540 7,779 1,361 9,140 (5,597) (946) (6,543) 2,597 (1,502) (636) 459 65 (210) 314 (5) 309 (20) 289 (76) 213 2,884 17 2,901 3,142 (24) 3,118 549 (9) 540 234 (21) 213 Basic earnings per share attributable to ABB shareholders: Income from continuing operations, net of tax Income (loss) from discontinued operations, net of tax Net income 1.26 0.01 1.27 1.37 (0.01) 1.36 0.24 0.00 0.24 0.10 (0.01) 0.09 Diluted earnings per share attributable to ABB shareholders: Income from continuing operations, net of tax Income (loss) from discontinued operations, net of tax Net income 1.26 0.01 1.27 1.37 (0.01) 1.36 0.24 0.00 0.24 0.10 (0.01) 0.09 2,284 2,288 2,287 2,296 2,286 2,291 2,283 2,285 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 Other income (expense), net Earnings before interest and taxes 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 Income (loss) from discontinued operations, net of tax Net income Average number of shares (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 26,820 4,975 31,795 (19,057) (3,413) (22,470) 9,325 (5,528) 329 4,126 121 (127) 4,120 (1,001) 3,119 17 3,136 (235) 2,901 Three months ended ABB Ltd Interim Consolidated Balance Sheets (unaudited) ($ in millions, except share data) Dec. 31, 2009 Dec. 31, 2008 Cash and equivalents Marketable securities and short-term investments Receivables, net Inventories, net Prepaid expenses Deferred taxes Other current assets Total current assets 7,119 2,433 9,451 4,550 236 900 540 25,229 6,399 1,354 9,245 5,306 237 920 776 24,237 Financing receivables, net Property, plant and equipment, net Goodwill Other intangible assets, net Prepaid pension and other employee benefits Investments in equity method companies Deferred taxes Other non-current assets Total assets 452 4,072 3,026 443 112 49 1,052 293 34,728 445 3,562 2,817 411 73 68 1,120 278 33,011 Accounts payable, trade Billings in excess of sales Accounts payable, other Short-term debt and current maturities of long-term debt Advances from customers Deferred taxes Provisions for warranties Provisions and other current liabilities Accrued expenses Total current liabilities 3,853 1,623 1,326 161 1,806 327 1,280 2,603 1,600 14,579 4,451 1,224 1,292 354 2,014 428 1,105 3,467 1,569 15,904 Long-term debt Pension and other employee benefits Deferred taxes Other non-current liabilities Total liabilities 2,172 1,179 328 1,997 20,255 2,009 1,071 355 1,902 21,241 3,943 12,828 (2,084) 4,841 9,927 (2,710) (897) 13,790 683 14,473 34,728 (900) 11,158 612 11,770 33,011 Stockholders' equity: Capital stock and additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock, at cost (39,901,593 shares and 40,108,014 shares at December 31, 2009 and 2008, 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 postretirement benefits Deferred taxes Net gain from sale of property, plant and equipment Income (loss) from equity accounted companies 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 Investing activities: Changes in financing receivables Purchases of marketable securities (available-for-sale) Purchases of marketable securities (held-to-maturity) Purchases of short-term investments Purchases of property, plant and equipment and intangible assets Acquisition of businesses (net of cash acquired) Proceeds from sales of marketable securities (available-for-sale) Proceeds from maturity of marketable securities (available-for-sale) Proceeds from maturity of marketable securities (held-to-maturity) 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 Net cash provided by (used in) investing activities Financing activities: Net changes in debt with maturities of 90 days or less Increase in debt Repayment of debt Issuance of shares Purchase of treasury shares Dividends paid in the form of nominal value reduction Dividends paid to noncontrolling shareholders Other Net cash provided by (used in) financing activities Dec. 31, 2009 3,136 Three months ended Dec. 31, 2008 3,378 Dec. 31, 2009 Dec. 31, 2008 616 289 655 (28) (56) (15) 2 (6) 661 43 (199) (49) (15) 233 188 (27) (45) (4) 1 7 178 (3) (421) (15) (3) 169 256 1,130 (718) 295 (241) (316) (67) 4,027 (1,266) (800) 522 539 677 130 104 3,958 84 732 (15) 239 129 (298) 176 1,783 (73) 217 121 105 814 (219) 236 1,395 (7) (243) (918) (3,824) (967) (209) 79 855 730 2,253 36 7 (1,081) -(2,512) (1,171) (653) 110 --5,305 94 (5) (184) (119) (1,753) (343) (54) 16 -457 1,805 13 8 (694) -(102) (435) (101) 32 --1,109 49 16 (21) (2,220) 46 (31) 114 6 (1) (162) --(134) (59) 586 (705) 89 -(1,027) (193) 8 (1,301) (10) 458 (786) 49 (621) (1,060) (152) 3 (2,119) (31) 146 (182) 86 --(2) 22 39 (42) 135 (145) -(15) -(3) (60) (130) (230) (43) (79) Effects of exchange rate changes on cash and equivalents 214 Adjustment for the net change in cash and equivalents in assets held for sale and in discontinued operations Net change in cash and equivalents - continuing operations -720 26 1,749 -1,617 -1,052 Cash and equivalents beginning of period Cash and equivalents end of period 6,399 7,119 4,650 6,399 5,502 7,119 5,347 6,399 Supplementary disclosure of cash flow information: Interest paid Taxes paid 156 1,090 244 1,065 34 261 70 272 See Notes to the Interim Consolidated Financial Information ABB Ltd Interim Consolidated Statements of Changes in Stockholders' Equity (unaudited) 6,809 (486) 55 (1,330) (302) 3,118 Foreign currency translation adjustments Foreign currency translation adjustments related to divestments of businesses Effect of change in fair value of available-for-sale securities, net of tax Unrecognized gain (loss) related to pensions and other postretirement plans, net of tax Change in derivatives qualifying as cash flow hedges, net of tax No nco nt roll in Tot al equ stock ho ity lde rs ' g in tere sts lde rs' ho Tot al equ ABB sto ity ck k ry s toc asu Tre Tot al com accu pre mula hen te siv d oth e lo e ss r Re tain ear ed nin gs 5,780 Comprehensive income: Net income Un rea cas lized ga h der flow h in (lo s iva tive edge s) of s 7 ent apit a Ca pit add al sto c itio nal k and paid -in c ($ in millions) Balance at January 1, 2008 Pen s pos ion an d tre adju tirem other stm ent pla ent n s Un rea ava lized ga ila sec ble-fo in (lo s urit r ies -sale s) on (906) l For eig tran n cu rr sla tion ency adju stm Accumulated other comprehensive loss 10,957 592 11,549 3,118 260 3,378 (754) (754) (754) (41) (795) 6 6 6 76 76 (1) 75 (492) (492) 1 (491) 219 1,957 76 (492) (216) (216) 6 (216) Total comprehensive income (216) 1,738 Changes in noncontrolling interests -- (45) (45) Dividends paid to noncontrolling shareholders -- (154) (154) Dividends paid in the form of nominal value reduction (1,060) Shares repurchased under buyback program Treasury stock transactions (1,060) (1,060) (619) (619) (619) 21 -- -- (21) Share-based payment arrangements 63 63 63 Issuance of shares 49 49 49 Call options 30 30 Balance at December 31, 2008 4,841 9,927 (1,654) 83 (978) (161) (2,710) (900) 30 11,158 612 11,770 4,841 Comprehensive income: Net income (978) (161) (2,710) (900) 2,901 Foreign currency translation adjustments Effect of change in fair value of available-for-sale securities, net of tax Unrecognized loss related to pensions and other postretirement plans, net of tax Change in derivatives qualifying as cash flow hedges, net of tax 598 (63) (90) 181 235 3,136 598 12 610 (63) (63) (90) (90) 181 (1,024) Share-based payment arrangements (63) (2) (92) 245 3,772 181 (49) (3) Tot al equ stock ho ity lde rs 11,770 3,527 Treasury stock transactions ' g in tere roll in No nco nt 612 2,901 Dividends paid to noncontrolling shareholders Dividends paid in the form of nominal value reduction 11,158 598 Total comprehensive income Changes in noncontrolling interests sts lde rs' ho Tot al equ ABB sto ity ck k ry s toc asu Tre Tot al com accu pre mula hen te siv d oth e lo e ss r Re tain ear ed nin gs 9,927 Un rea cas lized ga h der flow h in (lo s iva tive edge s) of s 83 ent apit a Ca pit add al sto c itio nal k and paid -in c ($ in millions) Balance at January 1, 2009 Pen s pos ion an d tre adju tirem other stm ent pla ent n s Un rea ava lized ga ila sec ble-fo in (lo s urit r ies -sale s) on (1,654) l For eig tran n cu rr sla tion ency adju stm Accumulated other comprehensive loss 181 (49) 20 (29) -- (194) (194) (1,024) (1,024) -- -- 66 66 66 Issuance of shares 90 90 90 Call options 22 22 Balance at December 31, 2009 See Notes to the Interim Consolidated Financial Information 3,943 3 12,828 (1,056) 20 (1,068) 20 (2,084) (897) 13,790 22 683 14,473