Consolidated Statements of Changes in Shareowners’ Investment

	(dollars in millions, except per share amounts, and shares in thousands)
Years Ended December 31,		2003		2002		2001
	Shares	Amount	Shares	Amount	Shares	Amount
Common Stock
Balance at beginning of year	2,751,650	$     275	2,751,650	$     275	2,751,650	$     275
Shares issued-employee and shareowner plans	20,664	2	–	–	–	–
Shares retired	–	–	–	–	–	–
Balance at end of year	2,772,314	277	2,751,650	275	2,751,650	275
Contributed Capital
Balance at beginning of year		24,685		24,676		24,555
Shares issued-employee and shareowner plans		725		–		–
Tax benefit from exercise of stock options		12		46		101
Other		(59)		(37)		20
Balance at end of year		25,363		24,685		24,676
Reinvested Earnings
Balance at beginning of year		10,536		10,704		14,667
Net income		3,077		4,079		389
Dividends declared ($1.54 per share)		(4,250)		(4,208)		(4,176)
Shares issued-employee and shareowner plans		39		(48)		(188)
Other		7		9		12
Balance at end of year		9,409		10,536		10,704
Accumulated Other Comprehensive Loss
Balance at beginning of year		(2,110)		(1,187)		(2,176)
Foreign currency translation adjustment		568		220		(40)
Unrealized gains (losses) on marketable securities		1		(304)		1,061
Unrealized derivative gains (losses)     on cash flow hedges		(21)		12		(45)
Minimum pension liability adjustment		312		(851)		13
Other comprehensive income (loss)		860		(923)		989
Balance at end of year		(1,250)		(2,110)		(1,187)
Treasury Stock
Balance at beginning of year	8,624	218	35,173	1,182	49,215	1,861
Shares purchased	–	–	–	–	395	18
Shares distributed
Employee plans	(4,047)	(102)	(26,531)	(963)	(14,376)	(694)
Shareowner plans	(23)	(1)	(18)	(1)	(61)	(3)
Balance at end of year	4,554	115	8,624	218	35,173	1,182
Deferred Compensation – ESOPs and Other
Balance at beginning of year		552		747		882
Amortization		(312)		(150)		(155)
Other		(22)		(45)		20
Balance at end of year		218		552		747
Total Shareowners’ Investment		$ 33,466		$ 32,616		$ 32,539
Comprehensive Income
Net income		$   3,077		$   4,079		$389
Other comprehensive income (loss) per above		860		(923)		989
Total Comprehensive Income		$   3,937		$   3,156		$   1,378

See Notes to Consolidated Financial Statements.