21 2004 2003 2002 2001 2000 Operations Net sales .................................................................... $ 6,114 $ 5,408 $ 5,185 $ 5,066 $ 5,212 Cost of goods sold .................................................... 3,412 2,952 2,846 2,846 2,904 Selling, general and administrative expenses .............. 2,069 1,882 1,785 1,730 1,740 Impairment of other assets ........................................ 352 Interest expense.......................................................... 40 39 40 55 62 Income before income taxes, minority interest and cumulative effect of change in accounting principle 580 523 497 424 143 Income before cumulative effect of change in  accounting principle .............................................. 393 332 311 263 16 Net income ................................................................ 393 332 128 263 16 Financial Position Inventories ................................................................ $ 773 $ 638 $ 625 $ 633 $ 704 Accounts receivable - net............................................ 724 544 494 523 594 Working capital - net ................................................ 262 561 422 366 436 Property, plant and equipment - net .......................... 720 650 665 673 722 Total assets ................................................................ 4,274 3,683 3,432 3,628 3,751 Long-term debt .......................................................... 488 503 507 504 621 Total debt .................................................................. 738 514 522 615 740 Shareholders’ equity .................................................. 1,647 1,459 1,342 1,488 1,472 Per Common Share Information Average shares outstanding (thousands) .................... 140,802 144,847 150,438 155,557 161,912 Book value ................................................................ $ 11.70 $ 10.17 $ 9.01 $ 9.66 $ 9.22 Income before cumulative effect of change in accounting principle - diluted ................................ 2.72 2.26 2.04 1.68 .10 Income before cumulative effect of change in accounting principle - basic .................................... 2.79 2.29 2.07 1.69 .10 Net income - diluted .................................................. 2.72 2.26 .84 1.68 .10 Net income - basic .................................................... 2.79 2.29 .85 1.69 .10 Cash dividends .......................................................... .68 .62 .60 .58 .54 Financial Ratios Return on sales (1) .................................................... 6.4% 6.1% 6.0% 5.2% .3% Asset turnover............................................................ 1.4 × 1.5 × 1.5 × 1.4 × 1.4 × Return on assets (1) .................................................. 9.2% 9.0% 9.1% 7.3% .4% Return on equity (2) .................................................. 27.0% 24.7% 20.9% 17.9% .9% Dividend payout ratio (1) .......................................... 24.6% 27.3% 29.3% 34.6% 549.9% Total debt to capitalization ........................................ 30.9% 26.0% 28.0% 29.3% 33.5% Current ratio.............................................................. 1.2 1.5 1.4 1.3 1.4 Interest coverage (3) .................................................. 15.5 × 14.5 × 13.3 × 8.8 × 3.3 × Working capital to sales ............................................ 4.3% 10.4% 8.1% 7.2% 8.4% Effective income tax rate (4) ...................................... 32.0% 36.5% 37.5% 38.0% 88.9% General Capital expenditures .................................................. $ 107 $ 117 $ 127 $ 83 $ 133 Total technical expenditures (5) ................................ 91 88 89 86 84 Advertising expenditures............................................ 240 239 222 236 276 Repairs and maintenance .......................................... 55 52 52 48 48 Depreciation .............................................................. 109 105 104 109 109 Amortization of intangible assets .............................. 17 12 12 39 51 Shareholders of record (total count) .......................... 11,056 11,472 11,936 12,687 13,137 Number of employees (total count)............................ 28,690 25,777 25,752 25,789 26,095 Sales per employee (thousands of dollars) .................. $ 213 $ 210 $ 201 $ 196 $ 200 Sales per dollar of assets ............................................ 1.43 1.47 1.51 1.40 1.39 (1) Based on income before cumulative effect of change in accounting principle. See Note 3, page 51 of this report. (2) Based on income before cumulative effect of change in accounting principle and shareholders' equity at beginning of year. (3) Ratio of income before income taxes, minority interest, cumulative effect of change in accounting principle and interest expense to interest expense. (4) Based on income before income taxes, minority interest and cumulative effect of change in accounting principle. (5) See Note 1, page 48 of this report, for a description of technical expenditures. FINANCIAL SUMMARY (millions of dollars except as noted and per common share data)