Shares Outstanding*
(In thousands)

Dollars
(In millions)

2004

2003

2002

2004

2003

2002

$ 2.08 Preferred stock

Beginning balance

112

120

133

$

4

$

5

$

5

Conversion to common stock

(7

)

(8

)

(13

)

—

(1

)

—

Ending balance

105

112

120

$

4

$

4

$

5

$ 1.40 Preferred stock

Beginning balance

52

56

62

$

6

$

6

$

6

Conversion to common stock

(2

)

(4

)

(6

)

—

—

—

Ending balance

50

52

56

$

6

$

6

$

6

Common stock

Beginning balance

137,238

136,500

141,251

$

25

$

25

$

25

Purchases

(6,534

)

(1,951

)

(5,734

)

—

—

—

Exercise of stock options

4,351

1,788

689

—

—

—

Conversion of preferred stock to common stock

41

48

79

—

—

—

Other issuances of common stock

277

853

215

—

—

—

Ending balance

135,373

137,238

136,500

$

25

$

25

$

25

Capital surplus

Beginning balance

$

1,148

$

1,080

$

1,064

Conversion of preferred stock to common stock

—

—

—

Exercise of stock options and other issuances

221

68

16

Ending balance

$

1,369

$

1,148

$

1,080

Retained earnings

Beginning balance

$

5,606

$

5,526

$

5,829

Net income (loss)

365

259

(124

)

Dividends declared ($1.33, $1.30 and $1.30 per share, respectively)

(179

)

(179

)

(179

)

Ending balance

$

5,792

$

5,606

$

5,526

Treasury stock

Beginning balance

$

3,035

$

3,011

$

2,772

Purchases of common stock

425

66

249

Issuance of common stock

(13

)

(42

)

(10

)

Ending balance

$

3,447

$

3,035

$

3,011

Accumulated other comprehensive loss

Beginning balance

$

(64

)

$

(225

)

$

(223

)

Currency translation adjustment

97

159

78

Deferred gains on hedge contracts

4

37

13

Unrealized (losses) gains on securities

(3

)

—

2

Minimum pension liability adjustment

(131

)

(35

)

(95

)

Other comprehensive (loss) income

(33

)

161

(2

)

Ending balance

$

(97

)

$

(64

)

$

(225

)

Comprehensive income (loss)

Net income (loss)

$

365

$

259

$

(124

)

Other comprehensive (loss) income

(33

)

161

(2

)

Comprehensive income (loss)

$

332

$

420

$

(126

)