Alcoa and subsidiaries Consolidated Balance Sheet (in millions) December 31 2004 2003 Assets Current assets: Cash and cash equivalents (X) $ 457 $ 576 Receivables from customers, less allowances: 2004 – $87; 2003 – $ 1 02 2,738 2,492 Other receivables 261 351 Inventories (G) 2,968 2,505 Deferred income taxes (T) 279 266 Prepaid expenses and other current assets 790 493 Total current assets 7,493 6,683 Properties, plants, and equipment, net (H) 12,592 12,500 Goodwill (E and F) 6,541 6,443 Investments (I) 2,066 2,005 Otherassets(EandJ) 3,707 3,288 Assets held for sale (B) 210 792 Total Assets $32,609 $31,711 Liabilities Current liabilities: Short-term borrowings (K and X) $ 267 $ 50 Commercial paper (K and X) 630 — Accounts payable, trade 2,226 1,958 Accrued compensation and retirement costs 1,021 948 Taxes, including taxes on income 1,019 737 Other current liabilities 1,078 866 Long-term debt due within one year (K and X) 57 523 Total current liabilities 6,298 5,082 Long-term debt, less amount due within one year (K and X) 5,346 6,693 Accrued pension benefits (W) 1,513 1,568 Accrued postretirement benefits (W) 2,150 2,220 Other noncurrent liabilities and deferred credits (L) 1,727 1,820 Deferred income taxes (T) 790 815 Liabilities of operations held for sale (B) 69 98 Total liabilities 17,893 18,296 Minority Interests (M) 1,416 1,340 Commitments and Contingencies (N) Shareholders' Equity Preferred stock (R) 55 55 Common stock (R) 925 925 Additional capital 5,775 5,831 Retained earnings 8,636 7,850 Treasury stock, at cost (1,926) (2,017 ) Accumulated other comprehensive loss (165) (569 ) Total shareholders’ equity 13,300 12,075 Total Liabilities and Equity $32,609 $31,711 The accompanying notes are an integral part of the consolidated financial s t atements. 42