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Financial History Summary

	2006	2005	2004	2003	2002
(Dollars in millions)
Statement of Operations
Total revenue	$ 72,817	$ 69,993	$ 69,029	$ 68,764	$ 66,688
Total expense	71,917	68,548	65,964	64,896	67,364
Net Income (loss)	$ 900	$ 1,445	$ 3,065	$ 3,868	$ (676)
Operating revenue	$72,551	$ 69,798	$ 68,960	$ 68,498	$ 66,415
Revenue forgone	99	109	36	31	48
Total operating revenue	72,650	69,907	68,996	68,529	66,463
Compensation and benefits	56,281	53,932	52,134	50,428	51,557
Other expenses	15,403	14,351	13,717	13,474	13,677
Total operating expenses	71,684	68,283	65,851	63,902	65,234
Income from operations	966	1,624	3,145	4,627	1,229
Interest and investment income	167	86	33	58	46
Interest expense on deferred retirement obligations	(231)	(263)	(103)	(116)	(1,601)
Other interest expense * *	(2)	(2)	(10)	(694)	(340)
Emergency preparedness, net	—	—	—	(7)	(10)
Net Income (loss)	$ 900	$ 1,445	$ 3,065	$ 3,868	$ (676)
Balance Sheets
Assets:
Current assets *	$ 2,041	$ 1,933	$ 1,851	$ 3,607	$ 2,059
Property, equipment, and other assets * * *	26,447	23,065	22,858	23,419	56,735
Total Assets	$ 28,488	$ 24,998	$ 24,709	$ 27,026	$ 58,794
Liabilities:
Current liabilities *	$ 11,656	$ 9,206	$10,800	$ 16,753	$ 15,365
Other liabilities *	10,556	10,416	9,978	9,407	39,131
Long-term debt	—	—	—	—	7,300
Equity	6,276	5,376	3,931	866	(3,002)
Total Liabilities and Net Capital	$ 28,488	$ 24,998	$24,709	$ 27,026	$ 58,794
Changes in Net Capital (deficiency)
Beginning balances:
Capital contributions of the U.S. Government	$ 3,034	$ 3,034	$ 3,034	$ 3,034	$ 3,034
Equity (deficit) since reorganization	2,342	897	(2,168)	(6,036)	(5,360)
Total beginning balance net capital (deficiency)	5,376	3,931	866	(3,002)	(2,326)
Net income (loss)	900	1,445	3,065	3,868	(676)
Total Ending Balance Net Capital (deficiency)	$ 6,276	$ 5,376	$ 3,931	$ 866	$ (3,002)

*	Certain reclassifications have been made to previously reported amounts.
* *	2003 includes $360 million in debt repurchase expense.
* * *	2002 amount includes deferred retirement costs.