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statements of operations

Year ended September 30,

(Dollars in millions)	2004	2003	2002
Operating revenue	$68,996	$68,529	$66,463
Operating Expenses:
Compensation and benefits	52,134	50,428	51,557
Transportation	4,969	4,989	5,132
Other	8,748	8,485	8,545
Total operating expenses	65,851	63,902	65,234
Income from operations	3,145	4,627	1,229
Interest and investment income	33	58	46
Interest expense on deferred retirement obligations	(103)	(116)	(1,601)
Other interest expense	(10)	(334)	(340)
Debt repurchase expense	-	(360)	-
Emergency preparedness appropriations	-	177	179
Emergency preparedness expenses	-	(184)	(189)
Net income (loss)	$3,065	$3,868	$(676)

   See accompanying notes to financial statements.