Required a. Identify the components in its statement that you would consider operating. b. Identify those components that you would consider nonrecurring. ($ millions) For Year Ended Net sales Cost of sales Research and development expenses Selling, general, and administrative expenses Amortization of intangibles Goodwill and other intangible asset impairment losses Restructuring charges (credits) Asbestos-related charge Equity in earnings of nonconsolidated affiliates Sundry income (expense)-net Interest income Interest expense and amortization of debt discount Income before income taxes Provision for income taxes Net income December 31 a. b. 2014 2013 Operating? Nonrecurring? $54,974 $45,975 Yes 45,780 39,148 Yes 1,660 1,492 Yes 2,609 2,487 Yes 509 399 Yes 7 Yes 689 Yes Yes 630 Yes 891 No 39 No 1,571 No 1,569 26 54 1,112 125 37 1,473 4,102 481 $3,621 NOPAT (Round your answer to the nearest million dollar.) $ NOPM (Round your answer to one decimal place.) (97) Yes 2014 $1,776 0 x $ 0% * ◆ No ◆ No No ◆ No ◆ No ◆ ◆ ◆ Yes ◆ No ◆ No ◆ No ◆ No 2013 Yes Yes ◆ No • 0x 0% * ♦ ◆ ♦ ♦ ♦ ◆ c. Compute net operating profit after taxes (NOPAT) and net operating profit margin (NOPM) for each year. Assume a statutory tax rate of 35%. ( << << < <

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