56 UNITED TECHNOLOGIES CORPORATION Consolidated Statement of Operations See accompanying Notes to Consolidated Financial Statements (DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS; SHARES IN MILLIONS) 2012 2011 2010 Net Sales: Product sales $ 40,729 $ 38,882 $ 36,615 Service sales 16,979 16,872 15,660 57,708 55,754 52,275 Costs and Expenses: Cost of products sold 31,094 29,252 27,513 Cost of services sold 11,059 11,117 10,441 Research and development 2,371 1,951 1,656 Selling, general and administrative 6,452 6,161 5,798 50,976 48,481 45,408 Other income, net 952 573 31 Operating profit 7,684 7,846 6,898 Interest expense, net 773 496 650 Income from continuing operations before income taxes 6,911 7,350 6,248 Income tax expense 1,711 2,134 1,725 Net income from continuing operations 5,200 5,216 4,523 Discontinued operations (Note 3): Income from operations 171 255 290 Gain on disposal 861 – – Income tax expense (742) (97) (102) Net income from discontinued operations 290 158 188 Net income 5,490 5,374 4,711 Less: Non-controlling interest in subsidiaries’ earnings 360 395 338 Net income attributable to common shareowners $ 5,130 $ 4,979 $ 4,373 Net income attributable to common shareowners: Net income from continuing operations $ 4,847 $ 4,831 $ 4,195 Net income from discontinued operations $ 283 $ 148 $ 178 Earnings Per Share of Common Stock—Basic: Net income from continuing operations $ 5.41 $ 5.41 $ 4.62 Net income attributable to common shareowners $ 5.73 $ 5.58 $ 4.82 Earnings Per Share of Common Stock—Diluted: Net income from continuing operations $ 5.35 $ 5.33 $ 4.55 Net income attributable to common shareowners $ 5.66 $ 5.49 $ 4.74 Dividends Per Share of Common Stock $ 2.030 $ 1.865 $ 1.700 Weighted average number of shares outstanding: Basic shares 895.2 892.3 907.9 Diluted shares 906.6 906.8 922.7