2012 Q4 Form 10-K Financial Statement

#000004055414000023 Filed on February 27, 2014

View on sec.gov

Income Statement

Concept 2012 Q4 2012 Q3 2012 Q2
Revenue $11.77B $36.25B $36.40B
YoY Change 1.67% 201.74% 192.58%
Cost Of Revenue $21.37B $4.090B $4.402B
YoY Change 22.9% 14.12% -1.41%
Gross Profit $8.240B $6.025B $5.800B
YoY Change -9.4% -5.51% 5.69%
Gross Profit Margin 70.01% 16.62% 15.94%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $2.493B $2.193B $2.230B
YoY Change 22.09% -6.68% -3.13%
% of Gross Profit 30.25% 36.4% 38.45%
Operating Expenses $12.10B $10.75B $9.809B
YoY Change -5.74% -3.22% -0.92%
Operating Profit -$3.858B $5.239B $5.872B
YoY Change 3.16% 10.85% 14.67%
Interest Expense -$252.0M -$174.0M -$223.0M
YoY Change -92.2% -95.34% -94.08%
% of Operating Profit -3.32% -3.8%
Other Income/Expense, Net $826.0M $787.0M $393.0M
YoY Change 41.55% -37.02%
Pretax Income $5.236B $4.024B $4.187B
YoY Change 15.84% 6.82% -7.69%
Income Tax $816.0M $557.0M $496.0M
% Of Pretax Income 15.58% 13.84% 11.85%
Net Earnings $4.011B $3.491B $3.105B
YoY Change 7.53% 8.28% -17.51%
Net Earnings / Revenue 34.08% 9.63% 8.53%
Basic Earnings Per Share $0.38 $0.33 $0.29
Diluted Earnings Per Share $0.38 $0.33 $0.29
COMMON SHARES
Basic Shares Outstanding 10.52B shares
Diluted Shares Outstanding

Balance Sheet

Concept 2012 Q4 2012 Q3 2012 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $77.27B $85.46B $74.30B
YoY Change -8.56% -6.47% -18.4%
Cash & Equivalents $77.27B $85.46B $74.30B
Short-Term Investments
Other Short-Term Assets $101.6B
YoY Change
Inventory $15.37B $16.02B $15.44B
Prepaid Expenses
Receivables $19.90B $19.35B $19.30B
Other Receivables $0.00 $270.2B $272.5B
Total Short-Term Assets $214.2B $391.0B $381.6B
YoY Change -47.28% -6.76% -10.38%
LONG-TERM ASSETS
Property, Plant & Equipment $68.63B $67.39B $66.66B
YoY Change 4.4% 1.96% -3.18%
Goodwill $58.76B $73.16B $72.40B
YoY Change -18.72% -0.18% 2.64%
Intangibles $11.98B $11.71B $11.74B
YoY Change -0.73% -5.82% -0.51%
Long-Term Investments $48.51B $48.72B $47.93B
YoY Change 2.4% 4.87% 5.71%
Other Assets $3.472B $106.9B $113.8B
YoY Change -96.96% -10.96% -2.6%
Total Long-Term Assets $470.8B $307.8B $312.5B
YoY Change 51.02% -3.28% -0.26%
TOTAL ASSETS
Total Short-Term Assets $214.2B $391.0B $381.6B
Total Long-Term Assets $470.8B $307.8B $312.5B
Total Assets $685.0B $698.9B $694.1B
YoY Change -4.6% -5.26% -6.09%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $15.65B $15.85B $16.72B
YoY Change -4.55% -1.85% 6.05%
Accrued Expenses $14.90B $15.25B $14.97B
YoY Change 0.67% -23.74% -10.5%
Deferred Revenue
YoY Change
Short-Term Debt $101.4B $120.4B $126.3B
YoY Change -26.32% -5.41% 2.29%
Long-Term Debt Due $101.4B $120.4B $126.3B
YoY Change -26.32% -5.41% 2.29%
Total Short-Term Liabilities $241.2B $258.3B $265.1B
YoY Change -14.57% -3.1% 2.62%
LONG-TERM LIABILITIES
Long-Term Debt $312.4B $311.0B $302.5B
YoY Change -1.08% -8.2% -13.21%
Other Long-Term Liabilities $2.890B $2.053B $2.223B
YoY Change 46.4% -42.49% -15.95%
Total Long-Term Liabilities $315.3B $313.1B $304.7B
YoY Change -0.79% -8.55% -13.23%
TOTAL LIABILITIES
Total Short-Term Liabilities $241.2B $258.3B $265.1B
Total Long-Term Liabilities $315.3B $313.1B $304.7B
Total Liabilities $556.5B $570.9B $570.2B
YoY Change -7.25% -6.56% -6.33%
SHAREHOLDERS EQUITY
Retained Earnings $144.1B $142.0B $140.3B
YoY Change 4.55% 4.54% 3.87%
Common Stock $702.0M $702.0M $702.0M
YoY Change 0.0% 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost) $34.57B $32.97B $31.68B
YoY Change -208.82% 2.2% -0.59%
Treasury Stock Shares -1.288B shares
Shareholders Equity $123.0B $122.6B $120.1B
YoY Change
Total Liabilities & Shareholders Equity $685.0B $698.9B $694.1B
YoY Change -4.62% -5.26% -6.09%

Cashflow Statement

Concept 2012 Q4 2012 Q3 2012 Q2
OPERATING ACTIVITIES
Net Income $4.011B $3.491B $3.105B
YoY Change 7.53% 8.28% -17.51%
Depreciation, Depletion And Amortization $2.493B $2.193B $2.230B
YoY Change 22.09% -6.68% -3.13%
Cash From Operating Activities $11.25B $5.861B $7.751B
YoY Change 23.17% -35.47% 4.12%
INVESTING ACTIVITIES
Capital Expenditures -$4.619B -$3.202B -$4.012B
YoY Change 28.81% 27.42% 19.09%
Acquisitions
YoY Change
Other Investing Activities $3.386B $11.10B $3.331B
YoY Change 222.17% 167.06% -51.43%
Cash From Investing Activities -$1.233B $7.897B -$681.0M
YoY Change -51.36% 380.65% -119.52%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -18.17B -4.175B -15.13B
YoY Change 56.93% -53.71% 309.53%
NET CHANGE
Cash From Operating Activities 11.25B 5.861B 7.751B
Cash From Investing Activities -1.233B 7.897B -681.0M
Cash From Financing Activities -18.17B -4.175B -15.13B
Net Change In Cash -8.148B 9.583B -8.062B
YoY Change 63.75% 461.72% -211.38%
FREE CASH FLOW
Cash From Operating Activities $11.25B $5.861B $7.751B
Capital Expenditures -$4.619B -$3.202B -$4.012B
Free Cash Flow $15.87B $9.063B $11.76B
YoY Change 24.76% -21.84% 8.79%

Facts In Submission

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<p style='margin-top:0pt; margin-bottom:4pt'><font style="font-family:Arial;font-size:9pt;font-weight:bold;margin-left:0px;">Losses on Financing Receivables</font></p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:9pt;margin-left:0px;">Losses on financing receivables are recognized when they are incurred, which requires us to make our best estimate of probable losses inherent in the portfolio. The method for calculating the best estimate of losses depends on the size, type and risk characteristics of the related financing receivable. Such an estimate requires consideration of historical loss experience, adjusted for current conditions, and judgments about the probable effects of relevant observable data, including present economic conditions such as delinquency rates, financial health of specific customers and market sectors, collateral values (including housing price indices as applicable), and the present and expected future levels of interest rates. The underlying assumptions, estimates and assessments we use to provide for losses are updated periodically to reflect our view of current conditions and are subject to the regulatory examination process, which can result in changes to our assumptions. Changes in such estimates can significantly affect the allowance and provision for losses. It is possible that we will experience credit losses that are different from our current estimates. Write-offs are deducted from the allowance for losses when we judge the principal to be uncollectible and subsequent recoveries are added to the allowance at the time cash is received on a written-off account.</font><font style="font-family:Arial;font-size:9pt;"> </font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:9pt;margin-left:0px;">"Impaired" lo</font><font style="font-family:Arial;font-size:9pt;">ans are defined as larger-</font><font style="font-family:Arial;font-size:9pt;">balance or restructured loans for which it is probable that the lender will be unable to collect all amounts due according to the original contractual terms of the loan agreement. </font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:9pt;margin-left:0px;">&#8220;Troubled debt restructurings&#8221; (TDRs) are those loans for which we have granted a concession to a borrower experiencing financial difficulties where we do not receive adequate compensation. Such loans are classified as impaired, and are individually reviewed for specific reserves.</font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:9pt;margin-left:0px;">&#8220;</font><font style="font-family:Arial;font-size:9pt;">Nonaccrual financing receivables</font><font style="font-family:Arial;font-size:9pt;">&#8221;</font><font style="font-family:Arial;font-size:9pt;"> are those on which we have stopped accruing interest. We stop accruing interest at the earlier of the time at which collection </font><font style="font-family:Arial;font-size:9pt;">of an account </font><font style="font-family:Arial;font-size:9pt;">becomes doubtful or the account becomes </font><font style="font-family:Arial;font-size:9pt;">90</font><font style="font-family:Arial;font-size:9pt;"> days past due</font><font style="font-family:Arial;font-size:9pt;">, with the exception of c</font><font style="font-family:Arial;font-size:9pt;">onsumer credit card accounts, for</font><font style="font-family:Arial;font-size:9pt;"> which we continue to accrue interest until the accounts are written off in the period that the account becomes 180 days past due</font><font style="font-family:Arial;font-size:9pt;">.</font><font style="font-family:Arial;font-size:9pt;"> Although we stop accruing interest in advance of payments, we recognize interest income as cash is collected when appropriate provided the amount does not exceed that which would have been earned at the historical effective interest rate. 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Any delinquencies or bankruptcies are indications of potential impairment requiring further assessment of </font><font style="font-family:Arial;font-size:9pt;">collectibility</font><font style="font-family:Arial;font-size:9pt;">. We routinely receive financial as well as rating agency reports on our customers, and we elevate for further attention those customers whose operations we judge to be marginal or deteriorating. We also elevate customers for further attention when we observe a decline in collateral values for asset-based loans. While collateral values are not always available, when we observe such a decline, we evaluate relevant markets to assess recovery alternatives &#8211; for example, for real estate loans, relevant markets are local; for commercial aircraft loans, relevant markets are global. </font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:9pt;margin-left:0px;">Measurement of the loss on our impaired </font><font style="font-family:Arial;font-size:9pt;">commercial </font><font style="font-family:Arial;font-size:9pt;">loans is based on the present value of expected future cash flows discounted at the loan's effective interest rate or the fair value of collateral, net of expected selling costs</font><font style="font-family:Arial;font-size:9pt;">,</font><font style="font-family:Arial;font-size:9pt;"> if the loan is determined to be collateral dependent. We determi</font><font style="font-family:Arial;font-size:9pt;">ne whether a loan is collateral </font><font style="font-family:Arial;font-size:9pt;">dependent if the repayment of the loan is expected to be provided solely by the underlying collateral.</font><font style="font-family:Arial;font-size:9pt;"> Our review process can often result in reserves being established in advance of a modification of terms or designation as a TDR. </font><font style="font-family:Arial;font-size:9pt;">After providing for specific incurred losses, we then determine an allowance for losses that have been incurred in the balance of the portfolio but cannot yet be identified to a specific loan or lease. 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In addition to</font><font style="font-family:Arial;font-size:9pt;"> these factors, we </font><font style="font-family:Arial;font-size:9pt;">evaluate </font><font style="font-family:Arial;font-size:9pt;">a Real Estate loan </font><font style="font-family:Arial;font-size:9pt;">for impairment classification </font><font style="font-family:Arial;font-size:9pt;">if its projected loan-to-value ratio at maturity is in excess of </font><font style="font-family:Arial;font-size:9pt;">100</font><font style="font-family:Arial;font-size:9pt;">%, even if the loan is currently paying in accordance with its contractual terms. Substantially all of the loans in the Real Estate portfolio are considered collateral dependent and are measured for impairment based on the fair value of collateral. If foreclosure is deemed probable or if repayment is dependent solely on the sale of collateral, we also include estimated selling costs in our reserve. Collateral values for our Real Estate loans are determined based upon internal cash flow estimates discounted at an appropriate rate and corroborated by external appraisals, as appropriate. Collateral valuations are routinely monitored and updated annually, or more frequently for changes in collateral, market and economic conditions. Further discussion on determination of fair value is in the Fair Value Measurements section below. </font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:9pt;margin-left:0px;">Experience is not available for new products; therefore, while we are developing that experience, we set loss allowances based on our experience with the most closely analogous products in our portfolio. </font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:9pt;margin-left:0px;">Our loss mitigation strategy intends to minimize economic loss and, at times, can result in rate reductions, principal forgiveness, extensions, forbearance or other actions, which may cause the related loan to be classified as a TDR. </font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:9pt;margin-left:0px;">We utilize certain loan modification programs for borrowers experiencing temporary financial difficulties in our Consumer loan portfolio. These loan modification programs are primarily concentrated in our non-U.S. residential mortgage and non-U.S. installment and revolving portfolios and include short-term (three months or less) interest rate reductions and payment deferrals, which were not part of the terms of the original contract. We sold our U.S. residential mortgage business in 2007 and</font><font style="font-family:Arial;font-size:9pt;">,</font><font style="font-family:Arial;font-size:9pt;"> as </font><font style="font-family:Arial;font-size:9pt;">such,</font><font style="font-family:Arial;font-size:9pt;"> do not participate in the U.S. government-sponsored mortgage modification programs.</font><font style="font-family:Arial;font-size:9pt;"> </font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:9pt;margin-left:0px;">Our allowance for losses on financing receivables on these modified consumer loans is determined based upon a formulaic approach that estimates the probable losses inherent in the portfolio based upon statistical analyses of the portfolio. Data related to </font><font style="font-family:Arial;font-size:9pt;">redefault</font><font style="font-family:Arial;font-size:9pt;"> experience is also considered in our overall reserve adequacy review. Once the loan has been modified, it returns to current status (re-aged) only after receipt of at least three consecutive minimum monthly payments or the equivalent cumulative amount, subject to a re-aging limitation of once a year, or twice in a five-year period in accordance with the Federal Financial Institutions Examination Council guidelines on Uniform Retail Credit Classification and Account Management policy issued in June 2000.</font><font style="font-family:Arial;font-size:9pt;"> </font><font style="font-family:Arial;font-size:9pt;">We believe that the allowance for losses would not be materially different had we not re-aged these accounts.</font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:9pt;margin-left:0px;">For commercial loans, we evaluate changes in terms and conditions to determine whether those changes meet the criteria for classification as a TDR on a loan-by-loan basis. In Commercial Lending and Leasing (CLL), these changes primarily include: changes to covenants, short-term payment deferrals and maturity extensions. For these changes, we receive economic consideration, including additional fees and/or increased interest rates, and evaluate them under our normal underwriting standards and criteria. Changes to Real Estate</font><font style="font-family:Cambria Math;font-size:9pt;">'</font><font style="font-family:Arial;font-size:9pt;">s loans primarily include maturity extensions, principal payment acceleration, changes to collateral terms, and cash sweeps, which are in addition to, or sometimes in lieu of, fees and rate increases. The determination of whether these changes to the terms and conditions of our commercial loans meet the TDR criteria includes our consideration of all of the relevant facts and circumstances. When the borrower is experiencing financial difficulty, we carefully evaluate these changes to determine whether they meet the form of a concession. In these circumstances, if the change is deemed to be a concession, we classify the loan as a TDR.</font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:9pt;margin-left:0px;">When we repossess collateral in satisfaction of a loan, we write down the receivable against the allowance for losses. 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We write down consumer loans secured by collateral other than residential real estate when such loans are </font><font style="font-family:Arial;font-size:9pt;">120</font><font style="font-family:Arial;font-size:9pt;"> days past due. Consumer loans secured by residential real estate (both revolving and closed-end loans) are written down to the fair value of collateral, less costs to sell, no later than when they become </font><font style="font-family:Arial;font-size:9pt;">180</font><font style="font-family:Arial;font-size:9pt;"> days past due. Unsecured consumer loans in bankruptcy are written off within </font><font style="font-family:Arial;font-size:9pt;">60</font><font style="font-family:Arial;font-size:9pt;"> days of notification of filing by the bankruptcy court or within contractual write-off periods, whichever occurs earlier.</font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:9pt;margin-left:0px;">Write-offs on larger-</font><font style="font-family:Arial;font-size:9pt;">balance impaired commercial loans are based on amounts deemed uncollectible and are reviewed quarterly. Write-offs are determined based on the consideration of many factors, such as expectations of the workout plan or restructuring of the loan, valuation of the collateral and the prioritization of our claim in bankruptcy. 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CY2013Q4 ge Number Of Days Past Due Consumer Loans Secured By Collateral Other Than Residential Real Estate Write Off
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120 pure
CY2013 ge Overall Impact Of Adoption Of Asu200913 And Asu200914
OverallImpactOfAdoptionOfAsu200913AndAsu200914
insignificant
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NumberOfDaysPastDueConsumerCreditCardAccountsWriteOff
90 pure
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NumberOfDaysPastDueConsumerLoansSecuredByResidentialRealEstateBeforeWrittenDownToFairValueOfCollateralLessCostsToSell
180 pure
CY2013Q4 ge Number Of Days Past Due Unsecured Consumer Loans In Bankruptcy Before Written Off
NumberOfDaysPastDueUnsecuredConsumerLoansInBankruptcyBeforeWrittenOff
60 pure
CY2013Q4 ge Number Of Days Commercial Smaller Balance Homogeneous Loans Are Written Off
NumberOfDaysCommercialSmallerBalanceHomogeneousLoansAreWrittenOff
180 pure
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PercentageOfLIFOInventory
0.39 pure
CY2012Q4 us-gaap Percentage Of Lifo Inventory
PercentageOfLIFOInventory
0.37 pure
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NumberOfDaysPastDueConsumerCreditCardAccountsWriteOff
180 pure
CY2013 ge Percentage Of Voting Interest For Which Company Would Determine That They Have Controlling Financial Interest
PercentageOfVotingInterestForWhichCompanyWouldDetermineThatTheyHaveControllingFinancialInterest
0.5 pure
CY2013 ge Lower Range Of Voting Interest Unconsolidated Vie For Which Company Has Significant Influence Over
LowerRangeOfVotingInterestUnconsolidatedVieForWhichCompanyHasSignificantInfluenceOver
0.2 pure
CY2013 ge Upper Range Of Voting Interest Unconsolidated Vie For Which Company Has Significant Influence Over
UpperRangeOfVotingInterestUnconsolidatedVieForWhichCompanyHasSignificantInfluenceOver
0.5 pure
CY2013Q4 ge Number Of Days Past Due Delinquent Receivable
NumberOfDaysPastDueDelinquentReceivable
30 pure
CY2013Q4 ge Number Of Days Past Due Unsecured Closed End Installment Loans Are Written Off
NumberOfDaysPastDueUnsecuredClosedEndInstallmentLoansAreWrittenOff
120 pure
CY2013Q4 ge Consumer Credit Card Receivables Previously Classified Nonaccrual And Nonearning Returned To Accrual Status
ConsumerCreditCardReceivablesPreviouslyClassifiedNonaccrualAndNonearningReturnedToAccrualStatus
1051000000 USD
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1524000000 USD
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2174000000 USD
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1 pure
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360 pure
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DiscontinuedOperationGainLossFromDisposalOfDiscontinuedOperationBeforeIncomeTax
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CY2012 us-gaap Discontinued Operation Gain Loss On Disposal Of Discontinued Operation Net Of Tax
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CY2011 us-gaap Discontinued Operation Tax Effect Of Income Loss From Disposal Of Discontinued Operation
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CY2011 us-gaap Discontinued Operation Income Loss From Discontinued Operation During Phase Out Period Net Of Tax
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CY2011Q4 us-gaap Unrecognized Tax Benefits
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CY2013 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
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CY2013 ge Pension And Postretirement Cost Of Benefit Plans
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1.1 pure
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NetIncomeLoss
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NetIncomeLossAttributableToNoncontrollingInterest
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IncomeLossFromDiscontinuedOperationsNetOfTax
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CY2013Q2 us-gaap Profit Loss
ProfitLoss
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CY2013Q3 us-gaap Profit Loss
ProfitLoss
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IncomeLossFromDiscontinuedOperationsNetOfTaxPerDilutedShare
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CY2013Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerDilutedShare
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EarningsPerShareDiluted
0.30
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NetIncomeLoss
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NetIncomeLossAttributableToNoncontrollingInterest
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3460000000 USD
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IncomeLossFromContinuingOperationsPerBasicShare
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NetIncomeLoss
4011000000 USD
CY2012Q4 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
135000000 USD

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