(Dollar amounts in millions,
except per share data)
YEAR ENDED DECEMBER 31,
2003
  
2002
  
2001
 (a)
2000
 (a)
1999
  
FROM THE INCOME STATEMENT
 
 
 
 
 
Sales
$5,613
  
$5,128
  
$5,158
  
$5,043
  
$4,639
  
Cost of sales
3,328
  
2,950
  
3,060
  
3,075
  
2,732
  
Selling, general and administrative
766
  
751
  
699
  
683
  
641
  
Depreciation and amortization
517
  
483
  
499
  
471
  
445
  
Research and development
75
  
69
  
66
  
65
  
67
  
Other income (expenses) ­ net
(5
 )
48
  
(34
 )
(42
 )
77
  
Operating profit
922
  
923
  
800
  
707
  
831
  
Interest expense
151
  
206
  
224
  
224
  
204
  
Income before taxes
771
  
717
  
576
  
483
  
627
  
Income taxes
174
  
158
  
135
  
103
  
152
  
 
597
  
559
  
441
  
380
  
475
  
Minority interests
(24
 )
(20
 )
(18
 )
(27
 )
(45
 )
Income from equity investments
12
  
9
  
9
  
10
  
11
  
Income before cumulative effect
of accounting changes
585
  
548
  
432
  
363
  
441
  
Cumulative effect of accounting changes(b)
—
  
(139
 )
(2
 )
—
  
(10
 )
Net income
585
  
409
  
430
  
363
  
431
  
Add back goodwill amortization, net of tax
—
  
—
  
33
  
29
  
28
  
Net income excluding
goodwill amortization(c)
$   585
  
$  409
  
$   463
  
$  392
  
$  459
  
PER SHARE DATA(d)
 
 
 
 
 
Basic earnings per share
 
 
 
 
 
Income before cumulative effect
of accounting changes
$  1.79
  
$  1.68
  
$  1.34
  
$  1.14
  
$  1.38
  
Net income
$  1.79
  
$  1.26
  
$  1.33
  
$  1.14
  
$  1.35
  
Add back goodwill amortization, net of tax
—
  
—
  
0.10
  
0.09
  
0.09
  
Net income excluding
goodwill amortization(c)
$  1.79
  
$  1.26
  
$  1.43
  
$  1.23
  
$  1.44
  
Diluted earnings per share
 
 
 
 
 
Income before cumulative effect
of accounting changes
$  1.77
  
$  1.66
  
$  1.32
  
$  1.13
  
$  1.36
  
Net income
$  1.77
  
$  1.24
  
$  1.31
  
$  1.13
  
$  1.33
  
Add back goodwill amortization, net of tax
—
  
—
  
0.10
  
0.09
  
0.09
  
Net income excluding
goodwill amortization(c)
$  1.77
  
$  1.24
  
$  1.41
  
$  1.22
  
$  1.42
  
Cash dividends per share
$  0.46
  
$  0.38
  
$  0.34
  
$  0.31
  
$  0.28
  
WEIGHTED AVERAGE SHARES OUTSTANDING (000’s)(d)
 
 
 
 
 
Basic shares outstanding
326,388
  
325,536
  
323,020
  
318,246
  
318,560
  
Diluted shares outstanding
330,991
  
329,489
  
327,014
  
322,185
  
324,445
  
CAPITAL
 
 
 
 
 
Total debt
$2,816
  
$2,748
  
$2,989
  
$3,141
  
$2,995
  
Minority interests
195
  
164
  
141
  
138
  
359
  
Preferred stock
—
  
—
  
20
  
20
  
75
  
Shareholders’ equity
3,088
  
2,340
  
2,477
  
2,357
  
2,290
  
Total capital
$6,099
  
$5,252
  
$5,627
  
$5,656
  
$5,719
  
OTHER INFORMATION AND RATIOS
 
 
 
 
 
Capital expenditures (e)
$   983
  
$498
  
$   595
  
$   704
  
$   653
  
Cash flow from operations
$1,137
  
$1,001
  
$1,020
  
$   899
  
$   969
  
Cash flow from operations-to-debt ratio
40.4
 %
36.4
 %
34.1
 %
28.6
 %
32.4
 %
Total assets at year end
$8,305
  
$7,401
  
$7,715
  
$7,762
  
$7,722
  
Shares outstanding at year-end (000’s)(d)
326,086
  
324,536
  
324,286
  
318,758
  
318,096
  
Debt-to-capital ratio
46.2
 %
52.3
 %
53.1
 %
55.5
 %
52.4
 %
Number of employees
25,438
  
25,010
  
24,271
  
23,430
  
24,102
  
(a) In 2001, operating profit includes a $70 million pre-tax charge ($57 million after tax, or $0.17 per diluted share) related to restructuring and other actions (shown $7 million in cost of sales; $5 million in selling, general and administrative expenses; and $58 in other income (expense) - net). In 2000, operating profit includes a $159 million pre-tax charge and income from equity investments includes a $2 million charge ($117 million after tax, or $0.36 per diluted share) related to repositioning and special charges (shown $47 million in cost of sales; $21 million in selling, general and administrative expenses; and $91 million in other income (expenses) — net). These items are collectively referred to as special items.  
(b) 2002, 2001 and 1999 net income include the cumulative effect of accounting changes relating to the implementation of new accounting standards for goodwill impairment, derivatives and previously capitalized start-up costs, respectively.  
(c) Adjusted net income excludes amortization of goodwill prior to 2002 (see Note 12 to the consolidated financial statements).  
(d) Per share data, weighted average and total shares outstanding have been adjusted to reflect the December 15, 2003 two-for-one stock split which was effected as a stock dividend (see Note 1 to the consolidated financial statements).  
(e) Capital expenditures for 2003 include the purchase of previously leased assets for $339 million
(see Note 5 to the consolidated financial statements).