Income Statement Year Ended December 31 (In millions) Net sales Products Service 2005 2004 2003 $31,518 $30,202 $27,290 5,695 5,324 4,534 37,213 35,526 31,824 Cost of sales Products 27,892 27,667 25,306 Service 5,073 4,765 4,099 Unallocated coporate costs 803 914 33,768 33,346 29,848 3,445 2,180 1,976 Other income (expenses), net (449) (121) 43 Operating profit 2,996 2,059 2,019 Interest expense 370 425 487 Earnings before taxes 2,626 1,634 1,532 Income tax expense 801 368 479 Net earnings $1,825 $1,266 $1,053 Balance Sheet December 31 (In millions) 2005 2004 Assets Cash and cash equivalents $2,484 $1,100 Short-term investments 429 396 Receivables Inventories Deferred income taxes 4,579 4,094 1,921 1,864 861 982 Other current assets 495 557 Total current assets 10,769 8,993 Property, plant and equipment, net 3,924 3,599 Investments in equity securities 196 812 Goodwill 8,447 7,892 Purchased intangibles, net 560 672 Prepaid pension asset 1,360 1,030 Other assets 2,728 2,596 Total assets $27,984 $25,594 Liabilities and stockholders' equity Accounts payable $1,998 $1,726 Customer advances and amounts in excess of costs incurred 4,331 4,028 Salaries, benefits and payroll taxes 1,475 1,346 Current maturities of long-term debt 202 Other current liabilities 1,422 1,451 Total current liabilities 9,428 8,566 Long-term debt 4,784 5,224 Accrued pension liabilities 2,217 1,580 Other postretirement benefit liabilities 1,277 1,236 Other liabilities 2,411 1,967 Stockholders' equity Common stock, $1 par value per share Additional paid-in capital 1,724 2,223 Retained earnings Accumulated other comprehensive loss Other Total stockholders' equity 7,278 5,915 (1,553) (1,532) (14) (23) 7,867 7,021 Total liabilities and stockholders' equity $27,984 $25,594 Consolidated Statement of Cash Flows Year Ended December 31 (In millions) Operating Activities Net earnings 2005 2004 2003 $1,825 $1,266 $1,053 Adjustments to reconcile net earnings to net cash provided by operating activities Depreciation and amortization Amortization of purchased intangibles Deferred federal income taxes Changes in operating assets and liabilities: Receivables Inventories Accounts payable Customer advances and amounts in excess of costs incurred Other Net cash provided by operating activities Investing Activities Expenditures for property, plant and equipment Acquisition of business/investments in affiliated companies Proceeds from divestiture of businesses/Investments in affiliated companies Purchase of short-term investments, net Other Net cash used for investing activities Financing Activities repayment of long-term debt Issuances of long-term debt Long-term debt repayment and issuance costs Issuances of common stock Repurchases of common stock Common stock dividends Net cash used for financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 511 480 145 129 (58) 467 (87) (258) 519 (94) 288 (228) (285) 568 (13) 2,924 1,809 (769) (687) (91) (821) 279 234 (156) (240) 29 53 1,000 (163) 90 (1,728) 1,010 $2,484 $1,100 $1,010 (708) (1,461) (253) (1,049) (2,202) 164 (673) (175) (482) (405) (261) (1,631) (2,126) (2,076)