Consolidated Statements of Changes in Shareowners’ Investment
(dollars in millions, except per share amounts, and shares in thousands) |
|||||||||||||||
Years Ended December 31, |
2007 |
2006 |
2005 |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
|||||||||
|
|||||||||||||||
Common Stock |
|||||||||||||||
Balance at beginning of year |
2,967,652 |
|
$ |
297 |
|
2,774,865 |
|
$ |
277 |
|
2,774,865 |
|
$ |
277 |
|
Shares issued-MCI/Price acquisitions |
(42 |
) |
|
— |
|
192,787 |
|
|
20 |
|
— |
|
|
— |
|
Balance at end of year |
2,967,610 |
|
|
297 |
|
2,967,652 |
|
|
297 |
|
2,774,865 |
|
|
277 |
|
|
|||||||||||||||
Contributed Capital |
|||||||||||||||
Balance at beginning of year |
|
|
|
40,124 |
|
|
|
|
25,369 |
|
|
|
|
25,404 |
|
Shares issued-employee and shareowner plans |
|
|
|
58 |
|
|
|
|
(1 |
) |
|
|
|
(24 |
) |
Shares issued-MCI/Price acquisitions |
|
|
|
— |
|
|
|
|
6,010 |
|
|
|
|
— |
|
Domestic print and Internet yellow pages |
|||||||||||||||
directories business spin-off |
|
|
|
— |
|
|
|
|
8,695 |
|
|
|
|
— |
|
Other |
|
|
|
134 |
|
|
|
|
51 |
|
|
|
|
(11 |
) |
Balance at end of year |
|
|
|
40,316 |
|
|
|
|
40,124 |
|
|
|
|
25,369 |
|
|
|||||||||||||||
Reinvested Earnings |
|||||||||||||||
Balance at beginning of year |
|
|
|
17,324 |
|
|
|
|
15,905 |
|
|
|
|
12,984 |
|
Adoption of tax accounting standards (See Note 1) |
|
|
|
(134 |
) |
|
|
|
— |
|
|
|
|
— |
|
Adjusted balance at beginning of year |
|
|
|
17,190 |
|
|
|
|
15,905 |
|
|
|
|
12,984 |
|
Net income |
|
|
|
5,521 |
|
|
|
|
6,197 |
|
|
|
|
7,397 |
|
Dividends declared |
|||||||||||||||
($1.67, $1.62 and $1.62 per share) |
|
|
|
(4,830 |
) |
|
|
|
(4,781 |
) |
|
|
|
(4,479 |
) |
Other |
|
|
|
3 |
|
|
|
|
3 |
|
|
|
|
3 |
|
Balance at end of year |
|
|
|
17,884 |
|
|
|
|
17,324 |
|
|
|
|
15,905 |
|
|
|||||||||||||||
Accumulated Other Comprehensive Loss |
|||||||||||||||
Balance at beginning of year |
|
|
|
(7,530 |
) |
|
|
|
(1,783 |
) |
|
|
|
(1,053 |
) |
Foreign currency translation adjustments |
|
|
|
838 |
|
|
|
|
1,196 |
|
|
|
|
(755 |
) |
Unrealized gains on net investment hedges |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
2 |
|
Unrealized gains (losses) on marketable securities |
|
|
|
(4 |
) |
|
|
|
54 |
|
|
|
|
(21 |
) |
Unrealized gains on cash flow hedges |
|
|
|
1 |
|
|
|
|
14 |
|
|
|
|
10 |
|
Defined benefit pension and postretirement plans |
|
|
|
1,948 |
|
|
|
|
— |
|
|
|
|
— |
|
Minimum pension liability adjustment |
|
|
|
— |
|
|
|
|
526 |
|
|
|
|
51 |
|
Other |
|
|
|
241 |
|
|
|
|
(128 |
) |
|
|
|
(17 |
) |
Other comprehensive income (loss) |
|
|
|
3,024 |
|
|
|
|
1,662 |
|
|
|
|
(730 |
) |
Adoption of pension and postretirement benefit |
|||||||||||||||
accounting standard (See Note 15) |
|
|
|
— |
|
|
|
|
(7,409 |
) |
|
|
|
— |
|
Balance at end of year |
|
|
|
(4,506 |
) |
|
|
|
(7,530 |
) |
|
|
|
(1,783 |
) |
|
|||||||||||||||
Treasury Stock |
|||||||||||||||
Balance at beginning of year |
(56,147 |
) |
|
(1,871 |
) |
(11,456 |
) |
|
(353 |
) |
(5,213 |
) |
|
(142 |
) |
Shares purchased |
(68,063 |
) |
|
(2,843 |
) |
(50,066 |
) |
|
(1,700 |
) |
(7,859 |
) |
|
(271 |
) |
Shares distributed |
|||||||||||||||
Employee plans |
33,411 |
|
|
1,224 |
|
5,355 |
|
|
181 |
|
1,594 |
|
|
59 |
|
Shareowner plans |
13 |
|
|
1 |
|
20 |
|
|
1 |
|
22 |
|
|
1 |
|
Balance at end of year |
(90,786 |
) |
|
(3,489 |
) |
(56,147 |
) |
|
(1,871 |
) |
(11,456 |
) |
|
(353 |
) |
|
|||||||||||||||
Deferred Compensation–ESOPs and Other |
|||||||||||||||
Balance at beginning of year |
|
|
|
191 |
|
|
|
|
265 |
|
|
|
|
90 |
|
Amortization |
|
|
|
(112 |
) |
|
|
|
(74 |
) |
|
|
|
174 |
|
Other |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
1 |
|
Balance at end of year |
|
|
|
79 |
|
|
|
|
191 |
|
|
|
|
265 |
|
Total Shareowners’ Investment |
|
|
$ |
50,581 |
|
|
|
$ |
48,535 |
|
|
|
$ |
39,680 |
|
|
|||||||||||||||
Comprehensive Income |
|||||||||||||||
Net income |
|
|
$ |
5,521 |
|
|
|
$ |
6,197 |
|
|
|
$ |
7,397 |
|
Other comprehensive income (loss) per above |
|
|
|
3,024 |
|
|
|
|
1,662 |
|
|
|
|
(730 |
) |
Total Comprehensive Income |
|
|
$ |
8,545 |
|
|
|
$ |
7,859 |
|
|
|
$ |
6,667 |
|
See Notes to Consolidated Financial Statements.