Selected Financial Data


Year Ended December 31,     20061     20052     20042,3     2003     20024,5
(in millions except per share data)
SUMMARY OF OPERATIONS
Net operating revenues   $  24,088   $  23,104   $  21,742   $  20,857   $  19,394
Cost of goods sold     8,164     8,195     7,674     7,776     7,118
Gross profit     15,924     14,909     14,068     13,081     12,276
Selling, general and administrative expenses     9,431     8,739     7,890     7,287     6,818
Other operating charges     185     85     480     573     —
Operating income     6,308     6,085     5,698     5,221     5,458
Interest income     193     235     157     176     209
Interest expense     220     240     196     178     199
Equity income—net     102     680     621     406     384
Other income (loss)—net     195     (93)     (82)     (138)     (353)
Gains on issuances of stock by equity investees     —     23     24     8     —
Income before income taxes and changes in accounting principles     6,578     6,690     6,222     5,495     5,499
Income taxes     1,498     1,818     1,375     1,148     1,523
Net income before changes in accounting principles   $  5,080   $  4,872   $  4,847   $  4,347   $  3,976
Net income   $  5,080   $  4,872   $  4,847   $  4,347   $  3,050
Average shares outstanding     2,348     2,392     2,426     2,459     2,478
Average shares outstanding assuming dilution     2,350     2,393     2,429     2,462     2,483
 
PER SHARE DATA
Net income before changes in accounting principles—basic   $  2.16   $  2.04   $  2.00   $  1.77   $  1.60
Net income before changes in accounting principles—diluted     2.16     2.04     2.00     1.77     1.60
Basic net income     2.16     2.04     2.00     1.77     1.23
Diluted net income     2.16     2.04     2.00     1.77     1.23
Cash dividends     1.24     1.12     1.00     0.88     0.80
Market price on December 31     48.25     40.31     41.64     50.75     43.84
 
TOTAL MARKET VALUE OF COMMON STOCK   $  111,857   $  95,504   $  100,325   $  123,908   $  108,328
 
BALANCE SHEET DATA
Cash, cash equivalents and current marketable securities   $  2,590   $  4,767   $  6,768   $  3,482   $  2,345
Property, plant and equipment—net     6,903     5,831     6,091     6,097     5,911
Depreciation     763     752     715     667     614
Capital expenditures     1,407     899     755     812     851
Total assets     29,963     29,427     31,441     27,410     24,470
Long-term debt     1,314     1,154     1,157     2,517     2,701
Shareowners' equity     16,920     16,355     15,935     14,090     11,800
 
NET CASH PROVIDED BY OPERATING ACTIVITIES   $  5,957   $  6,423   $  5,968   $  5,456   $  4,742

Certain prior year amounts have been reclassified to conform to the current year presentation.

1   In 2006, we adopted SFAS No.158, "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans—an amendment of FASB Statements No. 87, 88, 106, and 132(R)."
2   We adopted FSP No. 109-2, "Accounting and Disclosure Guidance for the Foreign Earnings Repatriation Provision within the American Jobs Creation Act of 2004" in 2004. FSP No. 109-2 allowed the Company to record the tax expense associated with the repatriation of foreign earnings in 2005 when the previously unremitted foreign earnings were actually repatriated.
3   We adopted FASB Interpretation No. 46 (revised December 2003), "Consolidation of Variable Interest Entities," effective April 2, 2004.
4   In 2002, we adopted SFAS No. 142, "Goodwill and Other Intangible Assets."
5   In 2002, we adopted the fair value method provisions of SFAS No. 123, "Accounting for Stock-Based Compensation," and we adopted SFAS No. 148, "Accounting for Stock-Based Compensation—Transition and Disclosure."
2006 Annual Review