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<table>
  <tr>
    <th></th>
    <th>2007</th>
    <th>2006</th>
    <th>2005</th>
  </tr>
  <tr>
    <td>Millions of dollars and shares</td>
    <td></td>
    <td></td>
    <td></td>
  </tr>
  <tr>
    <td>Balance at January 1</td>
    <td>$ 7,376</td>
    <td>$ 6,372</td>
    <td>$ 3,932</td>
  </tr>
  <tr>
    <td>Dividends and other transactions with shareholders</td>
    <td>(1,499)</td>
    <td>(1,324)</td>
    <td>202</td>
  </tr>
  <tr>
    <td>Sale of stock by a subsidiary</td>
    <td></td>
    <td>117</td>
    <td></td>
  </tr>
  <tr>
    <td>Adoption of Statement of Financial Accounting</td>
    <td></td>
    <td></td>
    <td></td>
  </tr>
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;Standards No. 158</td>
    <td></td>
    <td>(218)</td>
    <td></td>
  </tr>
  <tr>
    <td>Adoption of Financial Accounting Standards Board</td>
    <td></td>
    <td></td>
    <td></td>
  </tr>
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;Interpretation No. 48</td>
    <td>(30)</td>
    <td></td>
    <td></td>
  </tr>
  <tr>
    <td>Shares exchanged in KBR, Inc. exchange offer</td>
    <td>(2,809)</td>
    <td></td>
    <td></td>
  </tr>
  <tr>
    <td>Other</td>
    <td>(4)</td>
    <td>34</td>
    <td></td>
  </tr>
  <tr>
    <td>Comprehensive income</td>
    <td></td>
    <td></td>
    <td></td>
  </tr>
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;Net income</td>
    <td>3,499</td>
    <td>2,348</td>
    <td>2,358</td>
  </tr>
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;Net cumulative translation adjustments</td>
    <td>(23)</td>
    <td>34</td>
    <td>(41)</td>
  </tr>
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;Defined benefit and other postretirement plans adjustments</td>
    <td>355</td>
    <td>2</td>
    <td>(54)</td>
  </tr>
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;Net unrealized gains (losses) on investments<br>and derivatives</td>
    <td>1</td>
    <td>11</td>
    <td>(25)</td>
  </tr>
  <tr>
    <td>Total comprehensive income</td>
    <td>3,832</td>
    <td>2,395</td>
    <td>2,238</td>
  </tr>
  <tr>
    <td>Balance at December 31</td>
    <td>$ 6,866</td>
    <td>$ 7,376</td>
    <td>$ 6,372</td>
  </tr>
</table>