Consolidated Statements of Common Stockholders' Equity and Comprehensive Income (Loss) - 2003 Annual Report

Consolidated Financial Statements

Consolidated Statements of Operations

Consolidated Balance Sheets

Consolidated Statements of Cash Flows

Consolidated Statements of Common Stockholders' Equity and Comprehensive Income (Loss)

	Common Stock Shares	Common Stock		Retained Earnings		Accumulated Other Comprehensive Income (Loss)						Total
	Common Stock Shares	Common Stock		Retained Earnings		Foreign Currency Adjustments		Net Gains (Losses) on Cash Flow Hedges		Minimum Pension Liability Adjustment		Total
	(In millions)
Balance December 31, 2000	739	$	4,797	$	5,379	$	(120)	$	—	$	—	$	10,056
Net income	—		—		1,898		—		—		—		1,898
Other Comprehensive Income
Cumulative change in accounting principle(a)	—		—		—		—		(921)		—		(921)
Foreign currency translation adjustments	—		—		—		(187)		—		—		(187)
Net unrealized gains on cash flow hedges(c)	—		—		—		—		1,324		—		1,324
Reclassification into earnings from cash flow hedges(d)	—		—		—		—		84		—		84
Total comprehensive income													2,198
Dividend reinvestment and employee benefits	13		329		—		—		—		—		329
Equity offering	25		1,091		—		—		—		—		1,091
Common stock dividends, including equity units contract adjustment	—		—		(973)		—		—		—		(973)
Preferred and preference stock dividends	—		—		(14)		—		—		—		(14)
Other capital stock transactions, net	—		—		2		—		—		—		2
Balance December 31, 2001	777	$	6,217	$	6,292	$	(307)	$	487	$	—	$	12,689
Net income	—		—		1,034		—		—		—		1,034
Other Comprehensive Income
Foreign currency translation adjustments	—		—		—		(340)		—		—		(340)
Net unrealized gains on cash flow hedges(c)	—		—		—		—		37		—		37
Reclassification into earnings from cash flow hedges(d)	—		—		—		—		(102)		—		(102)
Minimum pension liability adjustment(e)	—		—		—		—		—		(484)		(484)
Total comprehensive income													145
Dividend reinvestment and employee benefits	13		342		—		—		—		—		342
Equity offering	55		975		—		—		—		—		975
Westcoast Acquisition	50		1,702		—		—		—		—		1,702
Common stock dividends, including equity units contract adjustment	—		—		(905)		—		—		—		(905)
Preferred and preference stock dividends	—		—		(13)		—		—		—		(13)
Other capital stock transactions, net	—		—		9		—		—		—		9
Balance December 31, 2002	895	$	9,236	$	6,417	$	(647)	$	422	$	(484)	$	14,944
Net loss	—		—		(1,323)		—		—		—		(1,323)
Other Comprehensive Loss
Foreign currency translation adjustments(b)	—		—		—		962		—		—		962
Net unrealized gains on cash flow hedges(c)	—		—		—		—		116		—		116
Reclassification into earnings from cash flow hedges(d)	—		—		—		—		(240)		—		(240)
Minimum pension liability adjustment(e)	—		—		—		—		—		40		40
Total comprehensive loss													(445)
Dividend reinvestment and employee benefits	16		283		(6)		—		—		—		277
Common stock dividends, including equity units contract adjustment	—		—		(993)		—		—		—		(993)
Preferred and preference stock dividends	—		—		(15)		—		—		—		(15)
Other capital stock transactions, net	—		—		(20)		—		—		—		(20)
Balance December 31, 2003	911	$	9,519	$	4,060	$	315	$	298	$	(444)	$	13,748

(a) Cumulative change in accounting principle, net of $573 tax benefit in 2001.

(b) Foreign currency translation adjustments, net of $114 tax benefit in 2003

(c) Net unrealized gains on cash flow hedges, net of $49 tax expense in 2003, $72 tax expense in 2002 and $748 tax expense in 2001.

(d) Reclassification into earnings from cash flow hedges, net of $130 tax benefit in 2003, $94 tax benefit in 2002 and $116 tax expense in 2001.

(e) Minimum pension liability adjustment, net of $27 tax expense in 2003 and $309 tax benefit in 2002.

See Notes to Consolidated Financial Statements.