Company Shareholders’ Equity Noncontrolling interest in Consolidated Subsidiaries Total
Common Shares Paid-in Capital in Excess of Par Value Treasury Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Subtotal
Millions of dollars
Balance at December 31, 2006 $ 2,650 $ 1,689 $ (1,577) $ 5,051 $ (437) $ 7,376 $ 69 $ 7,445
Adoption of new accounting standard (43) 43
Adjusted balance at December 31, 2006 $ 2,650 $ 1,689 $ (1,577) $ 5,008 $ (437) $ 7,333 $ 69 $ 7,402
Cash dividends paid (1,044) (1,044) (1,044)
Stock plans 7 23 130 160 160
Common shares purchased (1,374) (1,374) (1,374)
Tax benefit from exercise of options and restricted stock 29 29 29
Distributions to noncontrolling interest holders (5) (5)
Other transactions with shareholders (4) (4) (21) (25)
Total dividends and other transactions with shareholders 7 52 (1,244) (318) (1,503) (26) (1,529)
Shares exchanged in KBR, Inc. exchange offer (2,809) (2,809) (2,809)
Adoption of new accounting standard (30) (30) (30)
Comprehensive income (loss):
  Net income 3,486 3,486 50 3,536
  Other comprehensive income (loss):
    Cumulative translation adjustment 1 1 1
    Realization of translation gains included in net income (24) (24) (24)
    Defined benefit and other postretirement plans adjustments:
      Prior service cost:
        Plan amendment (2) (2) (2)
        Settlements/curtailments 3 3 3
      Actuarial gain (loss):
        Net gain 105 105 105
        Amortization of net loss 14 14 14
        Settlements/curtailments 7 7 7
    Tax effect on defined benefit and postretirement plans (45) (45) (45)
  KBR, Inc. separation 271 271 271
  Defined benefit and other postretirement plans 355 355 355
  Net unrealized gains on investments, net of tax provision of $0 1 1 1
Total other comprehensive income 333 333 333
Total comprehensive income 3,486 333 3,819 50 3,869
Balance at December 31, 2007 $ 2,657 $ 1,804 $ (5,630) $ 8,146 $ (104) $ 6,873 $ 93 $ 6,966