financials > consolidated statements of changes in shareowners' investment
(dollars in millions, except per share amounts, and shares in thousands )
Years Ended December 31,       2004         2003         2002  
  Shares   Amount   Shares   Amount   Shares   Amount  
Common Stock                              
Balance at beginning of year 2,772,314   $ 277   2,751,650   $ 275   2,751,650   $ 275  
Shares issued                              
   Employee plans 2,501     –   20,664     2   –     –  
   Shareowner plans 50     –   –     –   –     –  
Shares retired –     –   –     –   –     –  
Balance at end of year 2,774,865     277   2,772,314     277   2,751,650     275  
Contributed Capital                              
Balance at beginning of year       25,363         24,685         24,676  
Shares issued-employee and shareowner plans       2         725         –  
Tax benefit from exercise of stock options       41         12         46  
Other       (2 )       (59 )       (37 )
Balance at end of year       25,404         25,363         24,685  
Reinvested Earnings                              
Balance at beginning of year       9,409         10,536         10,704  
Net income       7,831         3,077         4,079  
Dividends declared ($1.54 per share)       (4,265 )       (4,250 )       (4,208 )
Shares issued-employee and shareowner plans       –         39         (48)  
Other       9         7         9  
Balance at end of year       12,984         9,409         10,536  
Accumulated Other Comprehensive Loss                              
Balance at beginning of year       (1,250 )       (2,110 )       (1,187 )
Foreign currency translation adjustment       548         568         220  
Unrealized gains (losses) on marketable securities       7         1         (304 )
Unrealized derivative gains (losses)
   on cash flow hedges		       17         (21 )       12  
Minimum pension liability adjustment       (375 )       312         (851 )
Other comprehensive income (loss)       197         860         (923 )
Balance at end of year       (1,053 )       (1,250 )       (2,110 )
Treasury Stock                              
Balance at beginning of year (4,554 )   (115 ) (8,624 )   (218 ) (35,173 )   (1,182 )
Shares purchased (9,540 )   (370 ) –     –   –     –  
Shares distributed                              
   Employee plans 8,881     343   4,047     102   26,531     963  
   Shareowner plans –     –   23     1   18     1  
Balance at end of year (5,213 )   (142 ) (4,554 )   (115 ) (8,624 )   (218 )
Deferred Compensation–ESOPs and Other                              
Balance at beginning of year       (218 )       (552 )       (747 )
Amortization       301         312         150  
Other       7         22         45  
Balance at end of year       90         (218 )       (552 )
Total Shareowners’ Investment     $ 37,560       $ 33,466       $ 32,616  
Comprehensive Income                              
Net income     $ 7,831       $ 3,077       $ 4,079  
Other comprehensive income (loss) per above       197         860         (923 )
Total Comprehensive Income     $ 8,028       $ 3,937       $ 3,156  

See Notes to Consolidated Financial Statements.
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* This is an interactive electronic version of Verizon’s 2004 Annual Report to Shareholders, and it is intended to be complete and accurate. The contents of this version are qualified in their entirety by reference to the printed version. A reproduction of the printed version is available in PDF format on this website