Exhibit 99.2
SAIC, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, in millions, except per share amounts)
Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||||||||||
July 31 | April 30 | January 31 | October 31 | July 31 | April 30 | January 31 | ||||||||||||||||||||||||||||||||||
2007 | 2007 | 2007 | 2006 | 2006 | 2006 | 2007 | 2006 | 2005 | 2004 | |||||||||||||||||||||||||||||||
Revenues | $ | 2,222 | $ | 2,011 | $ | 2,089 | $ | 2,081 | $ | 1,994 | $ | 1,897 | $ | 8,061 | $ | 7,518 | $ | 6,910 | $ | 5,573 | ||||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||||||||||||||||||
Cost of revenues | 1,910 | 1,746 | 1,820 | 1,807 | 1,714 | 1,633 | 6,974 | 6,568 | 6,044 | 4,828 | ||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 139 | 129 | 127 | 133 | 129 | 126 | 515 | 480 | 406 | 365 | ||||||||||||||||||||||||||||||
Goodwill impairment | — | — | — | — | — | — | — | — | — | 7 | ||||||||||||||||||||||||||||||
Gain on sale of business units, net | — | — | — | — | — | — | — | — | (2 | ) | — | |||||||||||||||||||||||||||||
Operating income | 173 | 136 | 142 | 141 | 151 | 138 | 572 | 470 | 462 | 373 | ||||||||||||||||||||||||||||||
Non-operating income (expense): | ||||||||||||||||||||||||||||||||||||||||
Interest income | 14 | 14 | 19 | 35 | 33 | 29 | 116 | 96 | 44 | 49 | ||||||||||||||||||||||||||||||
Interest expense | (23 | ) | (22 | ) | (24 | ) | (22 | ) | (23 | ) | (23 | ) | (92 | ) | (88 | ) | (87 | ) | (80 | ) | ||||||||||||||||||||
Minority interest in income of consolidated subsidiaries | (1 | ) | (2 | ) | (1 | ) | (1 | ) | (2 | ) | (1 | ) | (5 | ) | (3 | ) | (3 | ) | — | |||||||||||||||||||||
Other income (expense), net | (4 | ) | — | 1 | 1 | 1 | 2 | 5 | (7 | ) | (28 | ) | 10 | |||||||||||||||||||||||||||
Income from continuing operations before income taxes | 159 | 126 | 137 | 154 | 160 | 145 | 596 | 468 | 388 | 352 | ||||||||||||||||||||||||||||||
Provision for income taxes | 60 | 51 | 53 | 64 | 60 | 54 | 231 | 133 | 125 | 135 | ||||||||||||||||||||||||||||||
Income from continuing operations | 99 | 75 | 84 | 90 | 100 | 91 | 365 | 335 | 263 | 217 | ||||||||||||||||||||||||||||||
Discontinued operations: | ||||||||||||||||||||||||||||||||||||||||
Income from discontinued operations before minority interest in income of consolidated subsidiaries and income taxes (including net gains on sales) | 37 | 13 | 4 | 25 | 6 | 5 | 40 | 902 | 181 | 168 | ||||||||||||||||||||||||||||||
Minority interest in income of consolidated subsidiaries | 1 | 1 | 2 | 3 | 2 | 2 | 9 | 11 | 11 | 10 | ||||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 4 | 7 | 2 | 14 | 1 | (12 | ) | 5 | 299 | 24 | 24 | |||||||||||||||||||||||||||||
Income from discontinued operations | 32 | 5 | — | 8 | 3 | 15 | 26 | 592 | 146 | 134 | ||||||||||||||||||||||||||||||
Net income | $ | 131 | $ | 80 | $ | 84 | $ | 98 | $ | 103 | $ | 106 | $ | 391 | $ | 927 | $ | 409 | $ | 351 | ||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||||||||||
Basic: | ||||||||||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 0.24 | $ | 0.19 | $ | 0.21 | $ | 0.27 | $ | 0.30 | $ | 0.27 | $ | 1.04 | $ | 0.96 | $ | 0.72 | $ | 0.59 | ||||||||||||||||||||
Income from discontinued operations | 0.08 | 0.01 | — | 0.02 | 0.01 | 0.05 | 0.07 | 1.70 | 0.40 | 0.36 | ||||||||||||||||||||||||||||||
$ | 0.32 | $ | 0.20 | $ | 0.21 | $ | 0.29 | $ | 0.31 | $ | 0.32 | $ | 1.11 | $ | 2.66 | $ | 1.12 | $ | 0.95 | |||||||||||||||||||||
Diluted: | ||||||||||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 0.24 | $ | 0.18 | $ | 0.20 | $ | 0.26 | $ | 0.29 | $ | 0.26 | $ | 1.00 | $ | 0.93 | $ | 0.70 | $ | 0.58 | ||||||||||||||||||||
Income from discontinued operations | 0.07 | 0.01 | — | 0.02 | 0.01 | 0.05 | 0.07 | 1.65 | 0.39 | 0.35 | ||||||||||||||||||||||||||||||
$ | 0.31 | $ | 0.19 | $ | 0.20 | $ | 0.28 | $ | 0.30 | $ | 0.31 | $ | 1.07 | $ | 2.58 | $ | 1.09 | $ | 0.93 | |||||||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||||||||||||||||||
Basic | 405 | 404 | 403 | 336 | 331 | 336 | 352 | 348 | 365 | 370 | ||||||||||||||||||||||||||||||
Diluted | 418 | 418 | 420 | 347 | 342 | 347 | 364 | 359 | 375 | 377 | ||||||||||||||||||||||||||||||
SAIC, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in millions)
Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
July 31 | April 30 | January 31 | October 31 | July 31 | April 30 | January 31 | ||||||||||||||||||||||||||
2007 | 2007 | 2007 | 2006 | 2006 | 2006 | 2007 | 2006 | |||||||||||||||||||||||||
Cash flows from operations: | ||||||||||||||||||||||||||||||||
Net income | $ | 131 | $ | 80 | $ | 84 | $ | 98 | $ | 103 | $ | 106 | $ | 391 | $ | 927 | ||||||||||||||||
Income from discontinued operations | (32 | ) | (5 | ) | — | (8 | ) | (3 | ) | (15 | ) | (26 | ) | (592 | ) | |||||||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operations: | ||||||||||||||||||||||||||||||||
Depreciation and amortization | 18 | 17 | 19 | 18 | 19 | 15 | 71 | 68 | ||||||||||||||||||||||||
Stock-based compensation | 22 | 23 | 21 | 7 | 21 | 15 | 64 | 39 | ||||||||||||||||||||||||
Excess tax benefits from stock-based compensation | (12 | ) | (27 | ) | (9 | ) | — | — | — | (9 | ) | — | ||||||||||||||||||||
Other non-cash items | 10 | 2 | 8 | 3 | 12 | (1 | ) | 22 | 16 | |||||||||||||||||||||||
Increase (decrease) in cash and cash equivalents, excluding effects of acquisitions and divestitures, resulting from changes in: | ||||||||||||||||||||||||||||||||
Receivables | 33 | (26 | ) | (40 | ) | (17 | ) | (12 | ) | 1 | (68 | ) | 49 | |||||||||||||||||||
Inventory, prepaid expenses and other current assets | (28 | ) | 1 | (35 | ) | 1 | 23 | 19 | 8 | 41 | ||||||||||||||||||||||
Deferred income taxes | 6 | — | (2 | ) | 16 | 4 | (15 | ) | 3 | (42 | ) | |||||||||||||||||||||
Other assets | (1 | ) | (2 | ) | 1 | 4 | — | (3 | ) | 2 | (19 | ) | ||||||||||||||||||||
Accounts payable and accrued liabilities | 35 | (115 | ) | 68 | 51 | (46 | ) | (40 | ) | 33 | 53 | |||||||||||||||||||||
Accrued payroll and employee benefits | 91 | (108 | ) | 24 | 56 | 90 | (73 | ) | 97 | 95 | ||||||||||||||||||||||
Dividend payable | — | — | (9 | ) | 9 | — | — | — | — | |||||||||||||||||||||||
Income taxes payable | (7 | ) | 27 | 71 | (30 | ) | 2 | 65 | 108 | (75 | ) | |||||||||||||||||||||
Other long-term liabilities | (9 | ) | 4 | (2 | ) | (1 | ) | (2 | ) | 2 | (3 | ) | 13 | |||||||||||||||||||
Total cash flows provided by (used in) operations | 257 | (129 | ) | 199 | 207 | 211 | 76 | 693 | 573 | |||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||
Expenditures for property, plant and equipment | (11 | ) | (12 | ) | (9 | ) | (33 | ) | (13 | ) | (18 | ) | (73 | ) | (52 | ) | ||||||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (234 | ) | (112 | ) | (18 | ) | (14 | ) | (378 | ) | (226 | ) | ||||||||||||||||||
Purchases of marketable securities available-for-sale | — | — | — | — | — | (4,258 | ) | (4,258 | ) | (7,852 | ) | |||||||||||||||||||||
Proceeds from sales and maturities of marketable securities available-for-sale | — | — | — | — | — | 5,917 | 5,917 | 7,561 | ||||||||||||||||||||||||
Other | (7 | ) | 5 | (8 | ) | 5 | (4 | ) | 10 | 3 | (12 | ) | ||||||||||||||||||||
Total cash flows provided by (used in) investing activities | (18 | ) | (7 | ) | (251 | ) | (140 | ) | (35 | ) | 1,637 | 1,211 | (581 | ) | ||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||
Payments on notes payable and long-term debt | (8 | ) | (1 | ) | (1 | ) | (1 | ) | (6 | ) | (12 | ) | (20 | ) | (40 | ) | ||||||||||||||||
Sales of stock and exercise of stock options | 20 | 35 | 43 | 7 | 34 | 16 | 100 | 155 | ||||||||||||||||||||||||
Payment of a special dividend | — | — | (2,439 | ) | — | — | — | (2,439 | ) | — | ||||||||||||||||||||||
Sales of stock through initial public offering | — | — | (1 | ) | 1,244 | — | — | 1,243 | — | |||||||||||||||||||||||
Repurchases of stock | (78 | ) | (94 | ) | (67 | ) | (73 | ) | (552 | ) | (32 | ) | (724 | ) | (818 | ) | ||||||||||||||||
Excess tax benefits from stock-based compensation | 12 | 27 | 9 | — | — | — | 9 | — | ||||||||||||||||||||||||
Other | (1 | ) | 1 | — | (1 | ) | — | (1 | ) | (2 | ) | (4 | ) | |||||||||||||||||||
Total cash flows provided by (used in) financing activities | (55 | ) | (32 | ) | (2,456 | ) | 1,176 | (524 | ) | (29 | ) | (1,833 | ) | (707 | ) | |||||||||||||||||
Increase (decrease) in cash and cash equivalents from continuing operations | 184 | (168 | ) | (2,508 | ) | 1,243 | (348 | ) | 1,684 | 71 | (715 | ) | ||||||||||||||||||||
Cash flows of discontinued operations: | ||||||||||||||||||||||||||||||||
Cash provided by (used in) operating activities of discontinued operations | 4 | (5 | ) | (13 | ) | 26 | 4 | 5 | 22 | (296 | ) | |||||||||||||||||||||
Cash provided by (used in) investing activities of discontinued operations | — | 3 | (2 | ) | 17 | — | — | 15 | 1,063 | |||||||||||||||||||||||
Cash used in financing activities of discontinued operations | — | — | — | (22 | ) | (1 | ) | (7 | ) | (30 | ) | (6 | ) | |||||||||||||||||||
Increase (decrease) in cash and cash equivalents from discontinued operations | 4 | (2 | ) | (15 | ) | 21 | 3 | (2 | ) | 7 | 761 | |||||||||||||||||||||
Total increase (decrease) in cash and cash equivalents | 188 | (170 | ) | (2,523 | ) | 1,264 | (345 | ) | 1,682 | 78 | 46 | |||||||||||||||||||||
Cash and cash equivalents at beginning of period - continuing operations | 943 | 1,109 | 3,631 | 2,342 | 2,688 | 1,001 | 1,001 | 959 | ||||||||||||||||||||||||
Cash and cash equivalents at beginning of period - discontinued operations | — | 4 | 5 | 30 | 29 | 34 | 34 | 30 | ||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 943 | 1,113 | 3,636 | 2,372 | 2,717 | 1,035 | 1,035 | 989 | ||||||||||||||||||||||||
Cash and cash equivalents at end of period - continuing operations | 1,131 | 943 | 1,109 | 3,631 | 2,342 | 2,688 | 1,109 | 1,001 | ||||||||||||||||||||||||
Cash and cash equivalents at end of period - discontinued operations | — | — | 4 | 5 | 30 | 29 | 4 | 34 | ||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 1,131 | $ | 943 | $ | 1,113 | $ | 3,636 | $ | 2,372 | $ | 2,717 | $ | 1,113 | $ | 1,035 | ||||||||||||||||
SAIC, INC.
CONSOLIDATED BACKLOG AND BOOKINGS
(Unaudited, in millions)
As Of | ||||||||||||||||||
July 31 2007 | April 30 2007 | January 31 2007 | October 31 2006 | July 31 2006 | April 30 2006 | |||||||||||||
Funded backlog | $ | 4,494 | $ | 4,659 | $ | 4,625 | $ | 3,928 | $ | 3,899 | $ | 3,844 | ||||||
Negotiated unfunded backlog | 9,597 | 9,718 | 10,286 | 10,339 | 10,365 | 10,429 | ||||||||||||
Total consolidated negotiated backlog | $ | 14,091 | $ | 14,377 | $ | 14,911 | $ | 14,267 | $ | 14,264 | $ | 14,273 | ||||||
Three Months Ended | ||||||||||||||||||
July 31 2007 | April 30 2007 | January 31 2007 | October 31 2006 | July 31 2006 | April 30 2006 | |||||||||||||
Net bookings | $ | 1,936 | $ | 1,477 | $ | 2,568 | $ | 1,978 | $ | 1,972 | $ | 2,406 | ||||||
Book-to-bill ratio | 0.9 | 0.7 | 1.2 | 1.0 | 1.0 | 1.3 |