CONSOLIDATED STATEMENT OF OPERATIONS (Dollars in millions, except per share amounts; shares in millions) 2011 2010 2009 Net Sales: Product sales $ 41,289 $ 38,641 $ 37,332 Service sales 16,901 15,685 15,093 58,190 54,326 52,425 Costs and Expenses: Cost of products sold 31,026 28,956 28,905 Cost of services sold 11,127 10,458 9,956 Research and development 2,058 1,746 1,558 Selling, general and administrative 6,464 6,024 6,036 50,675 47,184 46,455 Other income, net 584 44 407 Operating profit 8,099 7,186 6,377 Interest expense, net 494 648 617 Income before income taxes 7,605 6,538 5,760 Income tax expense 2,231 1,827 1,581 Net income 5,374 4,711 4,179 Less: Non-controlling interest in subsidiaries’ earnings 395 338 350 Net income attributable to common shareowners $ 4,979 $ 4,373 $ 3,829 EARNINGS PER SHARE OF COMMON STOCK: Basic $5 . 5 8 $ 4.82 $ 4.17 Diluted $5 . 4 9 $ 4.74 $ 4.12 Dividends Per Share of Common Stock $1 . 8 6 5 $ 1.700 $ 1.540 Weighted average number of shares outstanding: Basic shares 892.3 907.9 917.4 Diluted shares 906.8 922.7 928.8 See accompanying Notes to Consolidated Financial Statements 2011 ANNUAL REPORT 57