FIVE-YEAR SUMMARY (Dollars in millions, except per share amounts) 2011 2010 2009 2008 2007 FOR THE YEAR Net sales $ 58,190 $ 54,326 $ 52,425 $ 59,119 $ 54,876 Research and development 2,058 1,746 1,558 1,771 1,678 Restructuring costs 336 443 830 357 166 Net income 5,374 4,711 4,179 5,053 4,548 Net income attributable to common shareowners 4,979 4,373 3,829 4,689 4,224 Earnings per share: Basic: Net income attributable to common shareowners 5.58 4.82 4.17 5.00 4.38 Diluted: Net income attributable to common shareowners 5.49 4.74 4.12 4.90 4.27 Cash dividends per common share 1.87 1.70 1.54 1.35 1.17 Average number of shares of Common Stock outstanding: Basic 892 908 917 938 964 Diluted 907 923 929 956 989 Cash flow from operations 6,590 5,906 5,353 6,161 5,330 Capital expenditures 983 865 826 1,216 1,153 Acquisitions, including debt assumed 4 372 2,797 703 1,448 2,336 Repurchases of Common Stock 2,175 2,200 1,100 3,160 2,001 Dividends paid on Common Stock 1 1,602 1,482 1,356 1,210 1,080 AT YEAR END Working capital $ 7,142 $ 5,778 $ 5,281 $ 4,665 $ 4,602 Total assets 4 61,452 58,493 55,762 56,837 54,888 Long-term debt, including current portion 2 9,630 10,173 9,490 10,453 8,063 Total debt 2 10,260 10,289 9,744 11,476 9,148 Total debt to total capitalization 2 31% 32% 32% 41% 29% Total equity 2 22,820 22,332 20,999 16,681 22,064 Number of employees 3, 4 199,900 208,200 206,700 223,100 225,600 Note 1 Excludes dividends paid on Employee Stock Ownership Plan Common Stock. Note 2 The increase in the 2008 debt to total capitalization ratio, as compared to 2007, reflects unrealized losses of approximately $4.2 billion, net of taxes, associated with the effect of market conditions on our pension plans, and the 2008 debt issuances totaling $2.25 billion. The decrease in the 2009 debt to total capitalization ratio, as compared to 2008, reflects the reversal of unrealized losses in our pension plans of approximately $1.1 billion, the beneficial impact of foreign exchange rate movement of approximately $1.0 billion, and the reduction of approximately $1.7 billion of total debt. Note 3 The decrease in 2011, as compared with 2010, includes the impact of divestitures primarily within the UTC Fire & Security and Carrier segments, as well as headcount reductions associated with restructuring actions across UTC. Note 4 The increase in 2010, as compared with 2009, includes the impact of acquisitions across the company, most notably the 2010 acquisition of the GE Security business within the UTC Fire & Security segment. The increase in the number of employees in 2010 associated with acquisition activity was partially offset by headcount reductions associated with restructuring actions across UTC. 2011 ANNUAL REPORT 27