However, with these new possibilities come new 4. From 2000 to 2009 we made 108 strategic acquisitions to strengthen our portfolio of products and offerings. Over the past decade, the Philadelphia Fed's check-processing operations made major changes in workflow to handle an increasing number of electronic checks, including the addition of high-speed printers for printing substitute checks. This obligation is recorded in compensation and benefits in the Consolidated Statement of Financial Position. What they do want is an opportunity and some help to learn and grow, so they can effectively compete on a world stage. Separately recognized servicing assets and servicing liabilities must be initially measured at fair value, if practicable. Advanced database, content man- agement and information integration software that helps companies integrate, manage and gain value from their business information.
Accordingly, the cash flows associated with derivatives designated as fair value or cash flow hedges are classified in cash flows from operating activities in the Consolidated Statement of Cash Flows. The com- pany accomplishes this by not only having a mix of offerings with long-term cash and income streams, as well as cyclical transaction- based sales, but also by continually developing competitive products and solutions and effectively managing a skilled resource base. They know the world is changing. These new requirements did not impact the consolidated financial results as they relate only to additional disclosures. This amount represents the maximum exposure to loss at the reporting date as a result of the counterparties failing to perform as contracted.
Total expense and other income decreased 5. The change was made to avoid possible confusion between the segment revenue and cost presentation and the required category presentation in the Consolidated Statement of Earnings. Clients were shifting their focus from productivity to innovation. The company has evaluated the new guidance and does not expect a material impact on the Consolidated Financial Statements. The company defines free cash flow as net cash from operating activities less the change in Global Financing receivables and net 49 capital expenditures.
When treasury stock is reissued, the value is computed and recorded using a weighted-average basis. The differences in this comparison are the hypothetical gains or losses associated with each type of risk. The current portion of tax liabilities is included in taxes and the noncurrent portion of tax liabilities is included in other liabilities in the Consolidated Statement of Financial Position. A class is often a subset of assets or liabilities within a line item in the statement of financial position. From time to time, we have responded to this pressure by reducing prices on certain products. The following methods and assumptions are used to estimate fair values: Loans and Long-term Receivables Estimates of fair value are based on discounted future cash flows using current interest rates offered for similar loans to clients with similar credit ratings for the same remaining maturities.
Gross profit margin expanded 0. We believe that our audits provide a reasonable basis for our opinions. The strong performance reflects the extensive transformation which has occurred in this business over the past few years. It describes the infusion of intelligenceis reliable and secure, even as it integrates services into the way the world actually works, the way thatfrom a variety of external sources. Information Management software enables clients to leverage Information on Demand. System x server has gained share in four consecutive quarters. Going forward, both mature and emerging markets are building out and integrating their physical and digital infrastructures, and infusing the resulting systems with intelligence.
This list could go on. Cash flows related to the sale of inventories are reflected in net cash from operating activities from continuing operations in the Consolidated Statement of Cash Flows. Client offerings consist of premium and standard edition Windows operating systems. The gross margin on these sales was 51. The company continues to divest commoditizing businesses and strengthen its position through strategic investments and acquisitions in higher value segments like business analytics, smarter planet and cloud computing.
Capitalized software costs incurred or acquired after technological feasibility has been established are amortized over periods ranging up to 3 years. Across the geographies, aggregate revenue from the countries comprising the growth markets organization increased 9. In November 2008, the Federal Reserve accelerated the restructuring of its national check processing and announced it would consolidate to a single location for paper check processing in Cleveland and a single location for electronic check processing in Atlanta. Earnings Per Share of Common Stock Basic earnings per share of common stock is computed by dividing net income by the weighted-average number of common shares outstanding for the period. The increase in Income from continuing operations before income taxes in 2007 was primarily due to: Revenue growth as discussed above; and Gross profit margin improvements in the Global Services and Systems and Technology segments. The improved sales model and enhanced product offerings were the key contributors to the fourth quarter performance.
Originations The following are total external and internal financing originations. The company has invested heavily in these products, through internal investments and targeted acquisitions, and expects the majority of its software revenue growth to come from this por- tion of the product portfolio. Our Xbox hardware business competes with console platforms from Nintendo and Sony, both of which have a large, established base of customers. The company reports cash flows arising from derivative financial instruments designated as fair value or cash flow hedges consistent with the classification of cash flows from the underlying hedged items that these derivatives are hedging. Certain assets are measured at fair value on a nonrecurring basis. Next, the opportunity presented by the Cloud and Next-Generation Data Center.
The massive amount of data these systems are generating can now be captured and analyzed. This model could transform oceans of data into intelligence. The disclosures are required annually and have been included in the December 31, 2009 Consolidated Financial State ments. International mid-19th to early 20th century Most operations are centered in the home country, with overseas sales and distribution. The Internet advertising industry has grown significantly over the past several years, and we anticipate that this trend will continue long-term.
The revenue policies described below are then applied to each unit of accounting, as applicable. This currency impact reversed in the fourth quarter, as revenue increased 0. The client can also purchase ongoing maintenance after the first year, which includes product upgrades and technical support. Investment may occur in the research and development of new prod- ucts and services, as well as in the establishment of new collaborative and cocreation relationships with developers, other companies and other institutions. Residual Value Residual value represents the estimated fair value of equipment under lease as of the end of the lease. And the way to act is together.