Honeywell 2005 Annual Report Download - page 60

HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
Years Ended December 31,
2005 2004 2003
(Dollars in millions,
except per share amounts)
Product sales $22,258 $20,408 $18,234
Service sales 5,395 5,193 4,869
27,653 25,601 23,103
Costs, expenses and other
Cost of products sold 17,622 16,904 14,753
Cost of services sold 3,843 3,681 3,482
Selling, general and administrative expenses 3,707 3,316 2,950
(Gain) loss on sale of non-strategic businesses (36) (255) (38)
Asbestos related litigation charges, net of insurance 10 76 —
Business impairment charges 23 42 —
Equity in (income) loss of affiliated companies (134) (82) (38)
Other (income) expense (61) (92) 19
Interest and other financial charges 356 331 335
25,330 23,921 21,463
Income from continuing operations before taxes 2,323 1,680 1,640
Tax expense 742 399 296
Income from continuing operations 1,581 1,281 1,344
Income from discontinued operations, net of taxes 95 — —
Cumulative effect of accounting change, net of taxes (21) — (20)
Net income $ 1,655 $ 1,281 $ 1,324
Earnings (loss) per share of common stock—basic:
Income from continuing operations $ 1.87 $ 1.49 $ 1.56
Income from discontinued operations 0.11 — —
Cumulative effect of accounting change (0.03) — (0.02)
Net income $ 1.95 $ 1.49 $ 1.54
Earnings (loss) per share of common stock—assuming dilution:
Income from continuing operations $ 1.86 $ 1.49 $ 1.56
Income from discontinued operations 0.11 — —
Cumulative effect of accounting change (0.03) — (0.02)
Net income $ 1.94 $ 1.49 $ 1.54
The Notes to Financial Statements are an integral part of this statement.
44