ABB Ltd Interim Consolidated Income Statements (unaudited) Nine months ended ($ in millions, except per share data in $) Sep. 30, 2010 Three months ended Sep. 30, 2009 18,663 3,747 22,410 (13,044) (2,466) (15,510) 6,900 (4,080) 20 2,840 70 (138) 2,772 (790) 1,982 (3) 1,979 (118) 1,861 Amounts attributable to ABB shareholders: Income from continuing operations, net of tax Income (loss) from discontinued operations, net of tax Net income 1,864 (3) 1,861 2,335 26 2,361 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 0.82 (0.01) 0.81 1.02 0.01 1.03 0.34 0.34 0.45 0.45 0.81 0.81 1.02 0.01 1.03 0.34 0.34 0.45 0.45 2,287 2,292 2,283 2,286 2,284 2,288 2,283 2,289 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 6,601 1,302 7,903 (4,558) (841) (5,399) 2,504 (1,366) 18 1,156 20 (51) 1,125 (304) 821 (2) 819 (45) 774 Sep. 30, 2009 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 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 19,522 3,512 23,034 (13,816) (2,363) (16,179) 6,855 (3,972) 445 3,328 93 (96) 3,325 (831) 2,494 26 2,520 (159) 2,361 Sep. 30, 2010 776 (2) 774 6,713 1,197 7,910 (4,803) (800) (5,603) 2,307 (1,333) 445 1,419 25 (63) 1,381 (297) 1,084 4 1,088 (54) 1,034 1,030 4 1,034 ABB Ltd Interim Consolidated Balance Sheets (unaudited) ($ in millions, except share data) Sep. 30, 2010 Dec. 31, 2009 Cash and equivalents Marketable securities and short-term investments Receivables, net Inventories, net Prepaid expenses Deferred taxes Other current assets Total current assets 5,269 2,353 9,806 5,109 250 804 740 24,331 7,119 2,433 9,451 4,550 236 900 540 25,229 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 457 4,092 4,124 737 118 32 1,046 362 35,299 452 4,072 3,026 443 112 49 1,052 293 34,728 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 4,394 1,627 1,382 253 1,698 346 1,284 2,514 1,572 15,070 3,853 1,623 1,326 161 1,806 327 1,280 2,603 1,600 14,579 Long-term debt Pension and other employee benefits Deferred taxes Other non-current liabilities Total liabilities 2,080 1,163 490 1,957 20,760 2,172 1,179 328 1,997 20,255 1,421 14,689 (1,706) 3,943 12,828 (2,084) (386) 14,018 521 14,539 35,299 (897) 13,790 683 14,473 34,728 Commitments and contingencies Stockholders' equity: Capital stock and additional paid-in capital (2,307,491,247 issued shares at September 30, 2010 and 2,329,324,797 issued shares at December 31, 2009) Retained earnings Accumulated other comprehensive loss Treasury stock, at cost (23,564,509 shares at September 30, 2010 and 39,901,593 shares at December 31, 2009) 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) Nine months 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) and increases in interests 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 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 used in financing activities Effects of exchange rate changes on cash and equivalents Net change in cash and equivalents - continuing operations Cash and equivalents beginning of period Cash and equivalents end of period Supplementary disclosure of cash flow information: Interest paid Taxes paid See Notes to the Interim Consolidated Financial Information Sep. 30, 2010 1,979 Three months ended Sep. 30, 2009 2,520 Sep. 30, 2010 819 Sep. 30, 2009 1,088 522 45 100 (17) (2) 53 467 (1) (11) (11) 1 (13) 186 15 30 (3) 27 169 (10) (10) (2) 1 16 (265) (462) 506 (16) (131) (104) 230 2,438 172 398 (703) 56 (370) (18) (243) 2,244 35 (55) 186 (60) (4) (8) 194 1,362 137 413 (198) (14) (433) 15 109 1,281 (46) (2,545) (65) (1,772) (433) (2) (59) (799) (2,071) (624) (26) (867) (196) (153) (17) (238) (1,720) (215) (2,245) 566 393 290 3,071 31 (155) 63 855 273 448 23 (1,091) 16 173 50 126 7 (100) 21 273 356 5 62 (2,693) 10 (20) (2,058) (3) (1,964) 3 (1,632) 66 197 (327) 6 (120) (1,112) (188) 13 (1,465) (28) 440 (523) 3 (1,027) (191) (14) (1,340) 30 30 (60) 6 (16) (1,112) (71) 4 (1,189) (34) 123 (174) 3 (1,027) (85) 20 (1,174) (130) (1,850) 257 (897) 524 205 (1,267) (1,320) 7,119 5,269 6,399 5,502 6,536 5,269 6,822 5,502 72 698 122 829 26 199 37 275 ABB Ltd Interim Consolidated Statements of Changes in Stockholders' Equity (unaudited) 4,841 9,927 Comprehensive income: Net income (1,654) 83 (978) (161) (2,710) (900) 2,361 Foreign currency translation adjustments Effect of change in fair value of available-for-sale securities, net of tax Unrecognized income (loss) related to pensions and other postretirement plans, net of tax 672 (62) (24) Change in derivatives qualifying as cash flow hedges, net of tax 170 No nc ont roll ing Tot al equ stock hol ity d inte ers ' re s ts ho lde rs' Tot al equ ABB s to ity ck ry s to c k asu Tre Tot al com accu pre mula hen te siv d oth e lo e ss r Un rea cas lized h ga der flow h in (lo iva s tive edge s) of s Pen s pos ion an d tr adju etirem other s tm e n t pla ent n s Un rea ava lized ga ila sec ble-fo in (lo s urit r ies -sale s) on For eig tran n cu rr sla tion ency adju stm ent Re tain ear ed nin gs ($ in millions) Balance at January 1, 2009 Ca pit add al sto c itio nal k and paid -in cap it al Accumulated other comprehensive loss 11,158 612 11,770 2,361 159 2,520 672 672 6 678 (62) (62) (24) (24) 170 (62) (3) (27) 162 3,279 170 Total comprehensive income 170 3,117 Changes in noncontrolling interests - 17 17 Dividends paid to noncontrolling shareholders - (193) (193) Dividends paid in the form of nominal value reduction (1,024) Treasury stock transactions (3) Share-based payment arrangements 54 Issuance of shares Call options Balance at September 30, 2009 (1,024) 3 (1,024) - - 54 54 3 3 3 22 22 22 3,893 12,288 (982) 21 (1,002) 9 (1,954) (897) 13,330 598 13,928 3,943 Comprehensive income: Net income 12,828 (1,056) 20 (1,068) 20 (2,084) 1,861 Foreign currency translation adjustments Effect of change in fair value of available-for-sale securities, net of tax Unrecognized income (loss) related to pensions and other postretirement plans, net of tax 226 5 74 Change in derivatives qualifying as cash flow hedges, net of tax 73 Cancellation of shares repurchased under buyback program Treasury stock transactions 118 1,979 226 13 239 5 5 5 74 74 74 73 73 (834) (1,112) 73 2,239 131 2,370 (834) (104) (938) - (189) (1,112) (189) (1,112) (619) 619 - - (12) (108) (120) (120) 56 56 56 Call options (1) (1) See Notes to the Interim Consolidated Financial Information ers ' 14,473 Share-based payment arrangements Balance at September 30, 2010 Tot al equ stock hol ity d inte ont roll ing No nc 683 1,861 Dividends paid to noncontrolling shareholders Dividends paid in the form of nominal value reduction 13,790 226 Total comprehensive income Changes in noncontrolling interests re s ts ho lde rs' (897) Tot al equ ABB s to ity ck ry s to c k asu Tre Tot al com accu pre mula hen te siv d oth e lo e ss r Un rea cas lized h ga der flow h in (lo iva s tive edge s) of s Pen s pos ion an d tr adju etirem other s tm e n t pla ent n s Un rea ava lized ga ila sec ble-fo in (lo s urit r ies -sale s) on For eig tran n cu rr sla tion ency adju stm ent Re tain ear ed nin gs ($ in millions) Balance at January 1, 2010 Ca pit add al sto c itio nal k and paid -in cap it al Accumulated other comprehensive loss 1,421 14,689 (830) 25 (994) 93 (1,706) (386) 14,018 (1) 521 14,539