Preferred
Stock

Retained
Earnings

Accumulated
Other
Comprehensive
Income (Loss) ⁽¹⁾

Other

Total
Share-
holders’
Equity

Compre-
hensive
Income

Common Stock

(Dollars in millions, shares in thousands)

Shares

Amount

Balance, December 31, 1999

$

77

1,677,273

$

11,671

$

35,681

$

(2,658

)

$

(339

)

$

44,432

Net income

7,517

7,517

$

07,517

Net unrealized gains on available-for-sale and marketable equity securities

1,910

1,910

1,910

Net unrealized gains on foreign currency translation adjustments

2

2

2

Cash dividends:

Common

(3,382

)

(3,382

)

Preferred

(6

)

(6

)

Common stock issued under employee plans

3,781

68

226

294

Common stock repurchased

(67,577

)

(3,256

)

(3,256

)

Conversion of preferred stock

(5

)

177

5

Other

(22

)

125

5

(13

)

117

Balance, December 31, 2000

$

72

1,613,632

$

8,613

$

39,815

$

(746

)

$

(126

)

$

47,628

$

9,429

Net income

6,792

6,792

$

6,792

Net unrealized gains on available-for-sale and marketable equity securities

80

80

80

Net unrealized gains on foreign currency translation adjustments

15

15

15

Net gains on derivatives

1,088

1,088

1,088

Cash dividends:

Common

(3,627

)

(3,627

)

Preferred

(5

)

(5

)

Common stock issued under employee plans

27,301

1,059

62

1,121

Common stock repurchased

(81,939

)

(4,716

)

(4,716

)

Conversion of preferred stock

(7

)

298

7

Other

5

113

5

26

144

Balance, December 31, 2001

$

65

1,559,297

$

5,076

$

42,980

$

437

$

(38

)

$

48,520

$

7,975

Net income

9,249

9,249

$

9,249

Net unrealized gains on available-for-sale and marketable equity securities

974

974

974

Net unrealized gains on foreign currency translation adjustments

3

3

3

Net losses on derivatives

(93

)

(93

)

(93

)

Cash dividends:

Common

(3,704

)

(3,704

)

Preferred

(5

)

(5

)

Common stock issued under employee plans

50,004

2,611

21

2,632

Common stock repurchased

(108,900

)

(7,466

)

(7,466

)

Conversion of preferred stock

(7

)

265

7

Other

25

268

(3

)

(89

)

33

209

(89

)

Balance, December 31, 2002

$

58

1,500,691

$

496

$

48,517

$

1,232

$

16

$

50,319

$

10,044