<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(Mark One)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1999
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
For Quarter Ended September 30, 1999 Commission file number: 1-800
WM. WRIGLEY JR. COMPANY
(Exact name of registrant as specified in its charter)
DELAWARE 36-1988190
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
410 North Michigan Avenue
Chicago, Illinois 60611
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 312-644-2121
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days. Yes X No .
93,106,360 shares of Common Stock and 22,661,436 shares of Class B
Common Stock were outstanding as of October 15, 1999.
<PAGE>
<TABLE>
FORM 10-Q
PART I - FINANCIAL INFORMATION - ITEM 1
WM. WRIGLEY JR. COMPANY
CONSOLIDATED STATEMENT OF EARNINGS (CONDENSED)
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Revenues:
Net sales $507,501 $493,955 $1,521,878 $1,504,436
Investment and other income 5,240 4,920 13,210 13,391
Total revenues 512,741 498,875 1,535,088 1,517,827
Costs and expenses:
Cost of sales 208,403 207,140 627,733 634,387
Gain related to
factory closure -- -- -- (10,404)
Selling, distribution, and
general administrative 192,942 182,887 565,389 546,429
Interest 174 165 538 529
Total costs and expenses 401,519 390,192 1,193,660 1,170,941
Earnings before income taxes 111,222 108,683 341,428 346,886
Income taxes 33,622 35,588 106,689 113,143
Net earnings $77,600 $73,095 $234,739 $233,743
Net earnings per average share
of common stock (basic
and diluted) $0.67 $0.63 $2.02 $2.02
Dividends declared per share of
common stock $0.22 $0.20 $0.66 $0.60
Average number of shares
outstanding for the period 116,100 115,907 116,102 115,916
</TABLE>
All amounts in thousands except for per share values.
Notes to financial statements shown on page 5 are an integral part
of these statements.
<PAGE>
<TABLE>
FORM 10-Q
PART I - FINANCIAL INFORMATION - ITEM 1 (Cont'd)
WM. WRIGLEY JR. COMPANY
CONSOLIDATED STATEMENT OF CASH FLOWS (CONDENSED)
Nine Months Ended
September 30,
1999 1998
<S> <C> <C>
OPERATING ACTIVITIES:
Net earnings $234,739 $233,743
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation 44,602 40,469
Loss on sales of property, plant,
and equipment 315 (40)
Gain related to factory closure -- (10,404)
(Increase) in:
Accounts receivable (43,711) (49,295)
Inventories (23,054) (16,709)
Other current assets (2,639) (6,492)
Other assets and deferred charges (8,262) (11,086)
Increase (decrease) in:
Accounts payable 4,530 24,250
Accrued expenses 42,017 22,022
Income and other taxes payable 19,468 13,593
Deferred taxes (2,233) 8,396
Other noncurrent liabilities (985) 459
Net cash provided by operating activities 264,787 248,906
INVESTING ACTIVITIES:
Additions to property, plant, and equipment (80,145) (90,907)
Proceeds from property retirements 6,053 8,795
Purchases of short-term investments (31,690) (96,766)
Maturities of short-term investments 79,031 80,307
Net cash used in investing activities (26,751) (98,571)
FINANCING ACTIVITIES:
Dividends (74,308) (68,398)
Common stock purchased (7,970) (7,441)
Net cash used in financing activities (82,278) (75,839)
Effect of exchange rate changes on cash and
cash equivalents (3,022) (17,528)
Net increase in cash and cash equivalents 152,736 56,968
Cash and cash equivalents at beginning of period 214,572 206,627
Cash and cash equivalents at end of period $367,308 $263,595
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid $88,272 $92,988
Interest paid $253 $997
Interest and dividends received $12,660 $13,518
</TABLE>
All amounts in thousands.
Notes to financial statements shown on page 5 are an integral part
of these statements.
<PAGE>
<TABLE>
FORM 10-Q
PART I - FINANCIAL INFORMATION - ITEM 1 (Cont'd)
WM. WRIGLEY JR. COMPANY
CONSOLIDATED BALANCE SHEET (CONDENSED)
September 30, December 31,
1999 1998
<S> <C> <C>
Current assets:
Cash and cash equivalents $367,308 $214,572
Short-term investments, at amortized cost 89,564 137,112
Accounts receivable
(less allowance for doubtful accounts;
9/30/99- $7,705; 12/31/98- $7,564) 208,478 171,537
Inventories - Finished goods 63,779 64,934
Raw materials and supplies 209,950 191,174
273,729 256,108
Other current assets 49,577 48,816
Deferred income taxes - current 13,549 15,027
Total current assets 1,002,205 843,172
Marketable equity securities at fair value 41,423 39,888
Deferred charges and other assets 100,071 92,183
Deferred income taxes - noncurrent 28,063 25,522
Property, plant, and equipment, at cost 1,030,602 988,781
Less accumulated depreciation 494,905 468,691
Net property, plant, and equipment 535,697 520,090
Total assets $1,707,459 $1,520,855
Current liabilities:
Accounts payable $79,180 $76,691
Accrued expenses 108,275 67,848
Dividends payable 25,543 23,222
Income and other taxes payable 67,998 49,491
Deferred income taxes - current 780 1,374
Total current liabilities 281,776 218,626
Deferred income taxes - noncurrent 40,109 40,312
Other noncurrent liabilities 101,870 104,885
Stockholders' equity:
Preferred stock (no par value)
Authorized - 20,000 shares
Issued - None
Common stock (no par value)
Authorized - 400,000 shares
Issued and outstanding -
93,443 shares at 9/30/99;
93,007 shares at 12/31/98 12,459 12,401
Class B common stock (convertible)
Authorized - 80,000 shares
Issued and outstanding -
22,777 shares at 9/30/99;
23,214 shares at 12/31/98 3,037 3,095
Additional paid-in capital (19) 272
Retained earnings 1,342,727 1,184,617
Common stock in treasury, at cost -
(9/30/99; 216 shares; 12/31/98-111 shares) (13,755) (6,712)
Other comprehensive income:
Foreign currency translation adjustment (86,441) (61,339)
Unrealized holding gains on marketable
equity securities 25,696 24,698
Total other comprehensive income (60,745) (36,641)
Total stockholders' equity 1,283,704 1,157,032
Total liabilities & stockholders' equity $1,707,459 $1,520,855
</TABLE>
All amounts in thousands.
Notes to financial statements shown on page 5 are an integral part
of these statements.
<PAGE>
FORM 10-Q
PART I - FINANCIAL INFORMATION - ITEM 1 (Cont'd)
WM. WRIGLEY JR. COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONDENSED)
1. The Consolidated Statement of Earnings (Condensed) for the three
month and nine month periods ended September 30, 1999 and 1998,
respectively, the Consolidated Statement of Cash Flows
(Condensed) for the nine month periods ended September 30, 1999
and 1998, and the Consolidated Balance Sheet (Condensed) at
September 30, 1999, are unaudited. In the Company's opinion, the
accompanying financial statements reflect all adjustments
necessary to present fairly the results for the periods and have
been prepared on a basis consistent with the 1998 audited
consolidated financial statements. These condensed financial
statements should be read in conjunction with the 1998
consolidated financial statements and related notes, which are
an integral part thereof. Certain amounts recorded in 1998 have
been reclassified to conform to the 1999 presentation.
2. Conformity with generally accepted accounting principles
requires management to make estimates and assumptions when
preparing financial statements that affect assets, liabilities,
revenues and expenses. Actual results may vary from those
estimates.
3. In the first quarter of 1998, the Company sold its real estate
holding in Santa Cruz, California and recorded a pretax gain of
approximately $10,404,000 and net earnings of approximately
$6,763,000 or $0.06 per share. Proceeds from the sale of
$7,434,000 are included in proceeds from property retirements in
the Consolidated Statement of Cash Flows.
4. An analysis of the cumulative foreign currency translation
adjustment follows (in thousands of dollars):
<TABLE>
Decrease to
Stockholders' Equity
<S> <C> <C>
Third Quarter 1999 1998
Balance at July 1 $94,138 $71,283
Translation adjustment for
the third quarter (7,697) 7,028
Balance at September 30 $86,441 $78,311
Decrease to
Stockholders' Equity
Nine Months 1999 1998
Balance at January 1 $61,339 $65,034
Translation adjustment for
the first nine months 25,102 13,277
Balance at September 30 $86,441 $78,311
</TABLE>
5. An analysis of comprehensive income is provided below
(in thousands of dollars):
<TABLE>
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Net earnings $77,600 $73,095 $234,739 $233,743
Other comprehensive income, before tax:
Foreign currency translation
adjustments 7,697 (7,028) (25,102) (13,277)
Unrealized holding gains
(losses) on securities (3,272) 3,129 1,536 4,815
Other comprehensive income
(loss), before tax 4,425 (3,899) (23,566) (8,462)
Income tax (expense) benefit
related to items of other
comprehensive income 1,145 (1,095) (538) (1,685)
Other comprehensive income
(loss), net of tax 5,570 (4,994) (24,104) (10,147)
Total comprehensive income $83,170 $68,101 $210,635 $223,596
</TABLE>
<PAGE>
FORM 10-Q
PART I - FINANCIAL INFORMATION - ITEM 1 (Cont'd)
WM. WRIGLEY JR. COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONDENSED)
6. Segment Information
Management organizes the chewing-gum business by geographic
regions. Intercompany suppliers of flavors, gumbase, and
wrapping materials are classified as "All Other". For operating
profits, "All Other" also includes costs incurred at the
corporate office, net of royalties received from associated
companies.
Information by geographic region is as follows:
<TABLE>
Net Sales
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
North America, principally U.S. $208,858 $203,508 $619,666 $623,747
Europe 231,034 229,667 682,150 675,872
Asia/Pacific/Latin America 67,144 58,598 216,973 198,638
All Other 40,428 38,267 119,437 117,360
Gross Sales 547,464 530,040 1,638,226 1,615,617
Intersegment Sales (39,963) (36,085) (116,348) (111,181)
Net Sales $507,501 $493,955 $1,521,878 $1,504,436
</TABLE>
Intersegment Sales are sales mainly from intercompany suppliers
of flavors and gumbase to the Company's chewing gum production
facilities worldwide. Such revenues are valued on a cost-plus
basis.
<TABLE>
Operating Profits
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
North America, principally U.S. $49,244 $54,098 $155,909 $166,571
Europe 55,576 49,688 153,396 145,045
Asia/Pacific/Latin America 11,716 6,000 39,962 26,775
All Other (6,564) (3,376) (15,204) (11,996)
Operating Profits 109,972 106,410 334,063 326,395
Other Income 1,250 2,273 7,365 10,087
Earnings Before Income Taxes
and Factory Sale 111,222 108,683 341,428 336,482
Gain related to Factory Sale -- -- -- 10,404
Earnings Before Income Taxes $111,222 $108,683 $341,428 $346,886
</TABLE>
Management separates non-operating items such as foreign
currency transaction gains and losses, investment income, and
miscellaneous income and expense from operating profits. The
non-operating items are classified as "Other Income".
<PAGE>
FORM 10-Q
PART I - FINANCIAL INFORMATION - ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
RESULTS OF OPERATIONS
Net Sales
Net sales for the third quarter were $507.5 million, up $13.5
million or 3% versus the third quarter of 1998. Favorable mix
mainly from premium priced products in Europe increased sales by
approximately 3%. In addition, higher shipments mostly in certain
international markets increased sales revenue by 2%. This was
offset somewhat by translation of weaker European currencies to the
U.S. dollar which reduced sales by roughly 2%.
Net sales for the first nine months were $1,521.9 million, up $17.5
million or 1% versus the first nine months of 1998. Favorable mix
mainly from premium priced products in Europe increased sales by
approximately 3% partially offset by translation of weaker European
currencies to the U.S. dollar which reduced sales by 2%. Lower
shipments in Russia and the U.S. were offset by higher shipments in
the balance of the international markets.
Investment and Other Income
Investment and other income for the third quarter was $5.2 million,
an increase of $0.3 million or 6% versus the third quarter of last
year mainly due to higher cash balances in both the U.S. and
certain international markets.
Investment and other income for the first nine months was $13.2
million, down $0.2 million or 1% versus the first nine months of
last year.
Cost of Sales and Gross Profit
Cost of sales for the third quarter was $208.4 million, an increase
of $1.3 million or 1% versus the third quarter of 1998. Higher
shipments in certain international markets increased cost of sales
by 2% and translation of weaker European currencies to the U.S.
dollar reduced cost of sales by 1%.
Gross profit was $299.1 million and $286.9 million for the third
quarters of 1999 and 1998, respectively. The gross profit
percentage was 58.9%, up from 58.1% in the third quarter of 1998,
mainly due to a favorable mix of products in Europe.
Cost of sales for the first nine months was $627.7 million, down
$6.7 million or 1% versus the first nine months of 1998. Lower
shipments in Russia and the U.S. were mostly offset by higher
shipments in the balance of the international markets, with these
netting to reduce cost of sales by roughly 1%. Translation of
weaker European currencies to the U.S. dollar reduced cost of sales
by 1% and was offset by unfavorable product mix and slightly higher
product costs, which increased cost by sales by 1%.
Gross profit for the first nine months of 1999 was $894.2 million,
up $24.2 million or 3% from the same period last year. The gross
profit percentage was 58.8%, up from 57.8% in the first nine months
of 1998, mainly due to a favorable mix of products in Europe.
Selling, Distribution, and General Administrative Expenses
Consolidated selling, distribution, and general administrative
expenses for the third quarter were $192.9 million, an increase of
$10.0 million or 5% from the same period last year. The increase
is mainly due to higher brand support spending and administrative
costs in the U.S.
For the first nine months of 1999, consolidated selling,
distribution, and general administrative expenses were $565.4
million, up $19.0 million or 3% from the same period last year.
The increase is mainly due to higher brand support spending in
Europe and the U.S. and higher administrative costs in the U.S.
partially offset by translation of weaker European currencies to
the U.S. dollar.
<PAGE>
FORM 10-Q
PART I - FINANCIAL INFORMATION - ITEM 2 (Cont'd)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
Income Taxes
Income taxes for the third quarter were $33.6 million, down $2.0
million or 6% from the third quarter of 1998. Pretax earnings were
$111.2 million, an increase of $2.5 million or 2%. The
consolidated effective tax rate was 30.2% compared to 32.7% for the
same period last year. The lower effective tax rate is mainly due
to a favorable mix of pretax earnings and effective tax planning.
Income taxes for the first nine months of 1999 were $106.7 million,
down $6.4 million or 6% from the first nine months of 1998. Pretax
earnings were $341.4 million, a decrease of $5.4 million or 2%.
The consolidated effective tax rate was 31.2% compared to 32.6% for
the same period last year. The lower effective tax rate is mainly
due to a favorable mix of pretax earnings and effective tax
planning.
Net Earnings
Consolidated net earnings for the third quarter of 1999 totaled
$77.6 million or $0.67 per share compared to last year's net
earnings of $73.1 million or $0.63 per share for the same period.
Consolidated net earnings for the first nine months of 1999 totaled
$234.7 million or $2.02 per share compared to last year's net
earnings of $226.9 million or $1.96 per share for the same period,
excluding the impact of the sale of the Santa Cruz factory.
Including the impact of the 1998 gain on the sale of the Santa Cruz
factory of approximately $6.8 million or $0.06 per share,
consolidated net earnings for the first nine months of 1999
increased $1.0MM.
LIQUIDITY AND CAPITAL RESOURCES
Current Ratio
The Company has a current ratio (current assets divided by current
liabilities) in excess of 3 to 1 at September 30, 1999 and December
31, 1998.
Additions to Property, Plant, and Equipment
Capital expenditures for 1999 are expected to be about $130 million
compared to 1998 expenditures of $148 million and are expected to
be funded from the Company's cash flow from operations.
Common Stock Repurchases
On August 18, 1993, the Board of Directors authorized the Company
to purchase from time to time shares of the Company's Common Stock
not to exceed $100 million in aggregate price. On September 23,
1999, the Company began repurchasing shares. As of October 31,
1999, the Company has purchased 994,000 shares at a cost of
approximately $70 million under this authorization.
In addition to the August 18, 1993 authorization, on October 26,
1999, the Board of Directors authorized the Company to purchase
from time to time additional shares of the Company's Common Stock
not to exceed $200 million in aggregate price.
<PAGE>
FORM 10-Q
PART I - FINANCIAL INFORMATION - ITEM 2 (Cont'd)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
OTHER MATTERS
Year 2000
The Company recognizes the potential business impacts related to
the Year 2000 issue. The issue is one where computer systems and
microprocessors (embedded chips) may recognize the designation "00"
as 1900 when it means 2000, resulting in processing failures or
errors. The Company began to address this issue in 1995 and
believes it has an effective program in place to resolve Year 2000
issues in a timely manner.
The Company has completed the assessment of its business critical
systems and processes, and is essentially finished with the
remediation of these business critical systems, including those
involving suppliers, customers and other business partners. Work
continues on the remaining systems and processes, both internal and
external.
Most internal systems in our principal business units are Year 2000
ready. Testing will continue throughout the remainder of the year.
Work will continue to move forward on some low-risk equipment and
minor issues. Implementing our plan, as it now stands, will allow
us to be fully ready by December 31, 1999.
The Company has certain pre-existing contingency arrangements and
has established processes for creating other business critical
contingency plans so that operations are not impeded by the
millennium change. Appropriate contingency plans to deal with
issues created by third parties, those over whom the Company has
little or no control, are being developed. This is being done on
an "as needed" basis due to the difficulty of assessing third-party
progress toward resolution of their Year 2000 issues.
Given the complexity of the Year 2000 issue, failure by the Company
or its external business partners to achieve readiness could
adversely affect the Company's operations. The Company believes
that its readiness program, including the contingency plans, will
minimize the effect of any temporary disruptions in the Company's
operations that may occur.
The Company expects to incur approximately $15,000,000, including
approximately $2,000,000 of capital spending, on all of its Year
2000 efforts. Approximately $5,000,000 was incurred in 1997 and
$7,500,000 in 1998, with the remaining portion expected to be
incurred in 1999. As of September 30, 1999, approximately
$14,000,000 has been incurred to date.
Market Risk
Inherent in the Company's operations are certain risks related to
foreign currency, interest rates, and the equity markets. The
Company identifies these risks and mitigates their financial impact
through its corporate policies and hedging activities. The Company
believes that movements in market values of financial instruments
used to mitigate identified risks are not expected to have a
material impact on future earnings, cash flows, or reported fair
values.
Forward-Looking Statements
Statements contained in this report may be considered to be forward
looking statements. The Private Securities Litigation Reform Act
of 1995 provides a safe harbor for forward looking statements. The
Company wishes to ensure that such statements are accompanied by
meaningful cautionary statements to comply with the safe harbor
under the Act. The Company notes that a variety of factors could
cause actual results to differ materially from the anticipated
results or expectations expressed in these forward looking
statements.
<PAGE>
FORM 10-Q
PART I - FINANCIAL INFORMATION - ITEM 2 (Cont'd)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
Forward-Looking Statements (cont'd)
Important factors that may influence the operations, performance,
development and results of the Company's business include global
and local business and economic conditions; currency exchange and
interest rates; ingredients, labor, and other operating costs;
insufficient or underutilization of manufacturing capacity;
political or economic instability in local markets; competition;
retention of preferred retail space; effective marketing campaigns
or new product introductions; consumer preferences, spending
patterns, and demographic trends; legislation and governmental
regulation; accounting policies and practices; and failure of the
Company's suppliers, customers or business partners to be Year 2000
ready.
We caution the reader that the list of factors may not be
exhaustive. The Company undertakes no obligation to update any
forward looking statement, whether as a result of new information,
future events, or otherwise.
Item 6 - Exhibits and Reports on Form 8-K
(a) Exhibits reference is made to the Exhibit Index on page 12.
(b) The Company has not filed a Form 8-K for the three month
period ended September 30, 1999.
<PAGE>
FORM 10-Q
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
WM. WRIGLEY JR. COMPANY
(Registrant)
By /s/ REUBEN GAMORAN
Reuben Gamoran
Controller
Authorized Signatory and
Chief Accounting Officer
Date: November 12, 1999
<PAGE>
WM. WRIGLEY JR. COMPANY
AND WHOLLY OWNED ASSOCIATED COMPANIES
INDEX TO EXHIBITS
Exhibit
Number Description of Exhibit
3(i). Articles of Incorporation of the Registrant. The
Registrant's Restated Articles of Incorporation are
incorporated by reference to Exhibit 3(a) of the Company's
Annual Report on Form 10-K filed for the fiscal year ended
December 31, 1992.
3(ii). By-laws of the Registrant. The Registrant's By-laws are
incorporated by reference to Exhibit 3(a) of the Company's
Annual Report on Form 10-K filed for the fiscal year ended
December 31, 1992.
4. Instruments defining the rights of security holders. The
Registrant's Articles of Incorporation contains all
definitions of the rights of the Registrant's Common and
Class B Common stock, representing all of the Registrant's
outstanding securities, and is incorporated by reference to
Exhibit 3(a) of the Company's Annual Report on Form 10-K
for the fiscal year ended December 31, 1992.
10. Material Contracts
10(a). Non-Employee Directors' Death Benefit Plan. Non-Employee
Directors' Death Benefit Plan is incorporated by reference
from Exhibit 10(a) of the Company's Annual Report on Form
10-K filed for the fiscal year ended December 31, 1994.
10(b). Senior Executive Insurance Plan. Senior Executive
Insurance Plan is incorporated by reference from Exhibit
10(b) of the Company's Annual Report on Form 10-K filed for
the fiscal year ended December 31, 1995.
10(c). Supplemental Retirement Plan. Supplemental Retirement Plan
is incorporated by reference from Exhibit 10(c) of the
Company's Annual Report on Form 10-K filed for the fiscal
year ended December 31, 1994.
10(d). Deferred Compensation Plan for Non-Employee Directors.
Deferred Compensation Plan for Non-Employee Directors is
incorporated by reference from Exhibit 10(d) of the
Company's Annual Report on Form 10-K filed for the fiscal
year ended December 31, 1995.
10(e). Stock Deferral Plan for Non-Employee Directors. The Stock
Deferral Plan for Non Employee Directors is incorporated by
reference from Exhibit 10(e) of the Company's Annual Report
on Form 10-K filed for the fiscal year ended December 31,
1995.
10(g). Wm. Wrigley Jr. Company 1997 Management Incentive Plan is
incorporated by reference from Exhibit 10(g) of the
Company's Quarterly Report on Form 10-Q for the quarter
ended September 30, 1997.
27. Financial Data Schedule.
- --------------------
For copies of Exhibits not attached hereto, the Registrant will
furnish them upon request and upon payment to the Registrant of a
fee in the amount of $20.00 representing reproduction and handling
costs.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 367,308
<SECURITIES> 130,987
<RECEIVABLES> 216,183
<ALLOWANCES> 7,705
<INVENTORY> 273,729
<CURRENT-ASSETS> 1,002,205
<PP&E> 1,030,602
<DEPRECIATION> 494,905
<TOTAL-ASSETS> 1,707,459
<CURRENT-LIABILITIES> 281,776
<BONDS> 0
0
0
<COMMON> 15,496
<OTHER-SE> 1,268,208
<TOTAL-LIABILITY-AND-EQUITY> 1,707,459
<SALES> 1,521,878
<TOTAL-REVENUES> 1,535,088
<CGS> 627,733
<TOTAL-COSTS> 1,193,660
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 538
<INCOME-PRETAX> 341,428
<INCOME-TAX> 106,689
<INCOME-CONTINUING> 234,739
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 234,739
<EPS-BASIC> 2.02
<EPS-DILUTED> 2.02
</TABLE>
