Reformulated Statement Analysis

Reformulated Statements of Earnings ($M)
2018	2017	2016
Operating Revenue
Net Sales	9714	6910	5010
Cost od sales	3892	2847	2199
Gross porfit/margin	5822	4063	2811
Operating Expenses
Research and evelopment	1797	1463	1331
Sales, general and administrative	815	663	602
Restructuring and other	0	3	131
Toal operating expenses	2612	2129	2064
Income from operating (before tax)	3210	1934	747
Tax on Operating Income	149	239	129
Core Operating Income After Tax	3061	1695	618
Other Operating Income
Effect of stock option exercise	-28	-29	-15
Interest income	69	54	39
Total Operating Income	3102	1720	642
Net Financial Expense
Other income, net	-22	-25	4
Interest expense	61	58	47
Net Interest Expense	83	83	43
Marginal Tax Rate	34%	35%	35%
Tax Benefit From Net Interest Expense	28	29	15
Net Financial Expense After Tax	55	54	28
Total Comprehensive Income	3047	1666	614

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Reformulated Statements of Stockholders’ Equity ($M)
Balance at 2016	4469	Balance at 2017	5762
Transactions with sharesholders	Transactions with sharesholders
+ Share issues	148	+ Share issues	254
+ Stock-based compensation	248	+ Stock-based compensation	391
– Share repurchases	739	– Share repurchases	909
– Share based loss	-231	– Share based expense	733
– Cash Dividends	261	– Cash Dividends	341
Total transactions with shareholders	-373	Total transactions with shareholders	-1338
Comprehensive Income	Comprehensive Income
+ Net income	1707	+ Net income	3077
– other comprehensive loss	12	– other comprehensive loss	2
– Loss on exercise of stock options (after tax)	29	– Loss on exercise of stock options (after tax)	28
Total comprehensive income	1666	Total comprehensive income	3047
Balance at 2017	5762	Balance at 2018	7471
Hidden dirty surplus:	45	Hidden dirty surplus:	42
Tax rate	35%	Tax rate	34%
Hidden dirty surplus net of tax	29	Hidden dirty surplus net of tax	28

Refolulated Balance Sheet ($M)
2018	2017	2016
Net Operating Assets
Operating Assts
Receivables	1265	826	505
Inventories	796	794	418
Prepaid expenses and other current assets	86	118	93
PPE	997	521	466
Goodwill	618	618	618
intangible assets	52	104	166
other assets	319	62	67
Total Operating Assts	4133	3043	2333
Operating Liabilities
Account payable	596	485	296
Accured and other current liabilities	542	507	642
Other long-term liabilities	632	277	463
Total Operating Liabilities	1770	1269	1401
Net Operating Assets (NOA)	2363	1774	932
Net Financial Obligations
Financial Assets
Cash and cash equivalents	4002	1766	596
Marketable securities	3106	5032	4441
Net Financial Assets	7108	6798	5037
Financial Liabilities
Convertible short-term debt	15	796	1413
Long-term debt	1985	1983
convertible debt conversion obligation	31	87
Net Financial Liabilities	2000	2810	1500
Net Financial Obligations (NF0)	5108	3988	3537
Common Shareholders’ Equity (CSE)	7471	5762	4469