Individual Financial Statement Analysis

2. Income from operations (1,949 m), maturities of short-term investments (779 m), and sales of short term investments (325 m).

3. Purchases of short-term investments (1,241 m), Dividends paid (694m), and repurchases of common stock (1,075m).

4. GRAPH

5. Net income differs from net operating cash flows for several reasons, One reason is noncash expenses, such as depreciation and the amortization of intangible assets. These expenses, which require no cash outlays, reduce net income but do not affect net cash flows. Another reason is the many timing differences existing between the recognition of revenue and expense and the occurrence of the underlying cash flows. Finally, non-operating gains and losses enter into the determination of net income, but the related cash flows are classified as investing or financing activities, not operating activities.

Depreciation, which requires no cash outlays, reduced net income by (445 m). Changes in working capital, particularly contracts in process (-391m) and Accounts payable (-171m). A/P, indicates they paid their supplies quicker resulting in a negative cash flow.

PAGE 14

1. GRAPH

2. In September 2011, our Board of Directors authorized the repurchase of up to $2.0 billion of our outstanding common stock. Additionally, in November 2013, our Board of Directors authorized the repurchase of up to an additional $2.0 billion of our outstanding common stock. At December 31, 2013, we had approximately $2.3 billion available under these repurchase programs. Stock repurchases will take place from time to time at management’s discretion depending on market conditions.

Stock repurchases also include shares surrendered by employees to satisfy tax withholding obligations in connection with restricted stock awards, restricted stock units and stock options issued to