Consolidated Statements of Income

(dollars in millions, except per share amounts)

Years Ended December 31,

2007

 

2006

 

2005

 

Operating Revenues

$

93,469

 

$

88,182

 

$

69,518

 

 

Operating Expenses

Cost of services and sales (exclusive of items shown below)

 

37,547

 

 

35,309

 

 

24,409

 

Selling, general & administrative expense

 

25,967

 

 

24,955

 

 

19,443

 

Depreciation and amortization expense

 

14,377

 

 

14,545

 

 

13,615

 

Sales of businesses, net

 

 

 

 

 

(530

)

Total Operating Expenses

 

77,891

 

 

74,809

 

 

56,937

 

 

Operating Income

 

15,578

 

 

13,373

 

 

12,581

 

Equity in earnings of unconsolidated businesses

 

585

 

 

773

 

 

686

 

Other income and (expense), net

 

211

 

 

395

 

 

311

 

Interest expense

 

(1,829

)

 

(2,349

)

 

(2,129

)

Minority interest

 

(5,053

)

 

(4,038

)

 

(3,001

)

Income Before Provision for Income Taxes, Discontinued Operations,

Extraordinary Item and Cumulative Effect of Accounting Change

 

9,492

 

 

8,154

 

 

8,448

 

Provision for income taxes

 

(3,982

)

 

(2,674

)

 

(2,421

)

Income Before Discontinued Operations, Extraordinary Item

and Cumulative Effect of Accounting Change

 

5,510

 

 

5,480

 

 

6,027

 

Income from discontinued operations, net of tax

 

142

 

 

759

 

 

1,370

 

Extraordinary item, net of tax

 

(131

)

 

 

 

 

Cumulative effect of accounting change, net of tax

 

 

 

(42

)

 

 

Net Income

$

5,521

 

$

6,197

 

$

7,397

 

 

Basic Earnings Per Common Share(1)

Income before discontinued operations, extraordinary item

and cumulative effect of accounting change

$

1.90

 

$

1.88

 

$

2.18

 

Income from discontinued operations, net of tax

 

.05

 

 

.26

 

 

.50

 

Extraordinary item, net of tax

 

(.05

)

 

 

 

 

Cumulative effect of accounting change, net of tax

 

 

 

(.01

)

 

 

Net Income

$

1.91

 

$

2.13

 

$

2.67

 

Weighted-average shares outstanding (in millions)

 

2,898

 

 

2,912

 

 

2,766

 

 

Diluted Earnings Per Common Share(1)

Income before discontinued operations, extraordinary item

and cumulative effect of accounting change

$

1.90

 

$

1.88

 

$

2.16

 

Income from discontinued operations, net of tax

 

.05

 

 

.26

 

 

.49

 

Extraordinary item, net of tax

 

(.05

)

 

 

 

 

Cumulative effect of accounting change, net of tax

 

 

 

(.01

)

 

 

Net Income

$

1.90

 

$

2.12

 

$

2.65

 

Weighted-average shares outstanding (in millions)

 

2,902

 

 

2,938

 

 

2,817

 

(1) Total per share amounts may not add due to rounding.

See Notes to Consolidated Financial Statements.