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.