UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 1, 1995
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
- -----------------------------------------------------------------
Commission file number 1-3215
JOHNSON & JOHNSON
(Exact name of registrant as specified in its charter)
NEW JERSEY 22-1024240
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
New Brunswick, New Jersey 08933
(Address of principal executive offices, including zip code)
908-524-0400
Registrant's telephone number, including area code
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
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date.
On October 27, 1995, 647,626,318 shares of Common Stock, $1.00
par value, were outstanding.
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<PAGE>
JOHNSON & JOHNSON AND SUBSIDIARIES
TABLE OF CONTENTS
Part I - Financial Information Page No.
Consolidated Balance Sheet -
October 1, 1995 and January 1, 1995 3
Consolidated Statement of Earnings for the
Fiscal Quarter Ended October 1, 1995
and October 2, 1994 5
Consolidated Statement of Earnings for the
Fiscal Nine Months Ended October 1, 1995 and
October 2, 1994 6
Consolidated Statement of Cash Flows
for the Fiscal Nine Months Ended October 1, 1995
and October 2, 1994 7
Notes to Consolidated Financial Statements 8
Management's Discussion and Analysis of
Financial Condition and Results of
Operations 13
Signatures 18
Part II - Other Information
Items 1 through 5 are not applicable
Item 6 - Exhibits and Reports on Form 8-K 17
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<PAGE>
Part I - FINANCIAL INFORMATION
Item 1 - FINANCIAL STATEMENTS
JOHNSON & JOHNSON AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Unaudited; Dollars in Millions)
ASSETS
October 1, January 1,
1995 1995
Current Assets:
Cash and cash equivalents $ 1,293 636
Marketable securities 45 68
Accounts receivable, trade, less
allowances $238 (1994 - $200) 3,073 2,601
Inventories (Note 3) 2,374 2,161
Deferred taxes on income 664 582
Prepaid expenses and other
receivables 635 632
Total current assets 8,084 6,680
Marketable securities, non-current 399 354
Property, plant and equipment, at cost 8,032 7,655
Less accumulated depreciation and
amortization 3,088 2,745
4,944 4,910
Intangible assets, net (Note 4) 2,849 2,403
Deferred taxes on income 371 262
Other assets 1,042 1,059
Total Assets $ 17,689 15,668
See Notes to Consolidated Financial Statements
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<PAGE>
JOHNSON & JOHNSON AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Unaudited; Dollars in Millions)
LIABILITIES AND STOCKHOLDERS' EQUITY
Oct. 1, January 1,
1995 1995
Current Liabilities:
Loans and notes payable $ 409 899
Accounts payable 1,118 1,192
Accrued liabilities 1,964 1,602
Accrued salaries, wages
and commissions 424 257
Taxes on income 396 316
Total current liabilities 4,311 4,266
Long-term debt 2,108 2,199
Deferred tax liability 154 130
Certificates of extra compensation 81 85
Other liabilities 2,123 1,866
Stockholders' equity:
Preferred stock - without par
value (authorized and unissued
2,000,000 shares) - -
Common stock - par value $1.00
per share (authorized 1,080,000,000
shares; issued 767,412,000 and
767,392,000 shares) 767 767
Note receivable from employee stock
ownership plan (64) (73)
Cumulative currency translation
adjustments 237 (35)
Retained earnings 10,278 8,966
11,218 9,625
Less common stock held in treasury,
at cost (119,664,000 & 124,382,000
shares) 2,306 2,503
Total stockholders' equity 8,912 7,122
Total liabilities and stockholders'
equity $17,689 15,668
See Notes to Consolidated Financial Statements
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JOHNSON & JOHNSON AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF EARNINGS
(Unaudited; dollars & shares in millions
except per share figures)
Fiscal Quarter Ended
Oct. 1, Percent Oct. 2, Percent
1995 to Sales 1994 to Sales
Sales to customers (Note 5) $4,738 100.0 4,038 100.0
Cost of products sold 1,543 32.6 1,364 33.8
Selling, marketing and
administrative expenses 1,857 39.2 1,601 39.6
Research expense 395 8.3 316 7.8
Other expense (income), net 62 1.3 32 .8
3,857 81.4 3,313 82.0
Earnings before interest and
provision for taxes on
income 881 18.6 725 18.0
Interest income 23 .5 20 .5
Interest expense, net of
portion capitalized (32) (.7) (32) (.8)
Earnings before provision
for taxes on income 872 18.4 713 17.7
Provision for taxes on
income (Note 2) 249 5.3 188 4.7
NET EARNINGS $ 623 13.1 525 13.0
NET EARNINGS PER SHARE $ .96 .82
CASH DIVIDENDS PER SHARE $ .33 .29
AVG. SHARES OUTSTANDING 647.8 643.3
See Notes to Consolidated Financial Statements
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<PAGE>
JOHNSON & JOHNSON AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF EARNINGS
(Unaudited; dollars & shares in millions
except per share figures)
Fiscal Nine Months Ended
Oct. 1, Percent Oct. 2, Percent
1995 to Sales 1994 to Sales
Sales to customers (Note 5) $13,996 100.0 11,644 100.0
Cost of products sold 4,552 32.5 3,832 32.9
Selling, marketing and
administrative expenses 5,434 38.8 4,639 39.8
Research expense 1,128 8.1 918 7.9
Other expense (income), net 117 .8 (18) (.1)
11,231 80.2 9,371 80.5
Earnings before interest and
provision for taxes on
income 2,765 19.8 2,273 19.5
Interest income 74 .5 39 .3
Interest expense, net of
portion capitalized (115) (.8) (101) (.8)
Earnings before provision
for taxes on income 2,724 19.5 2,211 19.0
Provision for taxes on
income (Note 2) 786 5.7 583 5.0
NET EARNINGS $ 1,938 13.8 1,628 14.0
NET EARNINGS PER SHARE $ 3.00 2.53
CASH DIVIDENDS PER SHARE $ .95 .84
AVG. SHARES OUTSTANDING 645.5 643.2
See Notes to Consolidated Financial Statements
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<PAGE>
JOHNSON & JOHNSON AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited; Dollars in Millions)
Fiscal Nine Months Ended
Oct. 1, Oct. 2,
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings $1,938 1,628
Adjustments to reconcile net earnings to
cash flows:
Depreciation and amortization of
property and intangibles 604 532
Increase in accounts receivable, trade,
less allowances (425) (289)
Increase in inventories (100) (160)
Changes in other assets and liabilities 417 621
NET CASH FLOWS FROM OPERATING ACTIVITIES 2,434 2,332
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and equipment (780) (532)
Proceeds from the disposal of assets 449 286
Acquisition of businesses, net of cash
acquired (100) (924)
Other, principally marketable securities (59) (87)
NET CASH USED BY INVESTING ACTIVITIES (490) (1,257)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends to stockholders (614) (541)
Repurchase of common stock (182) (99)
Proceeds from short-term debt 184 515
Retirement of short-term debt (507) (311)
Proceeds from long-term debt 5 9
Retirement of long-term debt (271) (245)
Proceeds from the exercise of stock
options 79 42
NET CASH USED BY FINANCING
ACTIVITIES (1,306) (630)
EFFECT OF EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS 19 49
INCREASE IN CASH AND CASH
EQUIVALENTS 657 494
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 636 372
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 1,293 866
ACQUISITIONS OF BUSINESSES
Fair value of assets acquired $ 415 972
Fair value of liabilities assumed (15) (48)
400 924
Treasury stock issued (300) -
Net cash payments $ 100 924
See Notes to Consolidated Financial Statements
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - The accompanying interim financial statements and related
notes should be read in conjunction with the Consolidated Financial
Statements of Johnson & Johnson and Subsidiaries (the "Company")
and related notes as contained in the Annual Report on Form 10-K
for the fiscal year ended January 1, 1995. The interim financial
statements include all adjustments (consisting only of normal
recurring adjustments) and accruals necessary in the judgment of
management for a fair presentation of such statements. Earnings
per share were calculated on the basis of the average number of
shares of common stock outstanding during the applicable period.
In March 1995, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standard (SFAS) No. 121,
"Accounting for the Impairment of Long-Lived Assets and Long-Lived
Assets to be Disposed of." The new statement will be adopted in
1996 and management is currently assessing its effect on the
Company's results of operations, cash flows and financial position.
In October 1995, the Financial Accounting Standards Board
issued Statement of Financial Accounting Standards (SFAS) No. 123,
"Accounting for Stock-Based Compensation". The new statement
requires companies to measure employee stock compensation plans
based on the fair value method of accounting. However, the
statement allows the alternative of continued use of Accounting
Principles Board (APB) Opinion No. 25, "Accounting for Stock Issued
to Employees". If this alternative is used, then pro forma
disclosure of net income and earnings per share determined as if
the fair value based method had been applied in measuring
compensation cost must be disclosed. The Company will continue to
apply the intrinsic value based method of accounting for stock
based compensation agreements as per APB Opinion No. 25, with pro
forma disclosures.
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NOTE 2 - INCOME TAXES
The effective income tax rates for 1995 and 1994 are as follows:
1995 1994
First Quarter 29.0% 26.1%
First Half 29.0 26.4
Nine Months 28.9 26.4
The effective income tax rates for the nine months of 1995 and
1994 are 28.9% and 26.4%, respectively, as compared to the U.S.
federal statutory rate of 35%. The major reason for this
difference is the result of domestic subsidiaries operating in
Puerto Rico under a grant for tax relief expiring December 31, 2007
and subsidiaries manufacturing in Ireland under an incentive tax
rate expiring on December 31, 2010. The increase in the 1995
worldwide effective tax rate was primarily due to an increase in
income subject to tax in the U.S. The Omnibus Budget
Reconciliation Act of 1993 includes a change in the tax code which
will reduce the benefit the Company receives from its operations in
Puerto Rico by 60% gradually over a five-year period.
NOTE 3 - INVENTORIES
(Dollars in Millions) Oct. 1, 1995 Jan. 1, 1995
Raw materials and supplies $ 622 477
Goods in process 603 640
Finished goods 1,149 1,044
$ 2,374 2,161
NOTE 4 - INTANGIBLE ASSETS
(Dollars in Millions) Oct. 1, 1995 Jan. 1, 1995
Intangible assets $ 3,211 2,667
Less accumulated amortization 362 264
$ 2,849 2,403
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<PAGE>
The excess of the cost over the fair value of net assets of
purchased businesses is recorded as goodwill and is amortized on a
straight-line basis over periods of 40 years or less. The cost of
other acquired intangibles is amortized on a straight-line basis
over their estimated useful lives. The increase in intangible
assets is primarily due to the acquisitions referred to in Note 6.
NOTE 5 - SALES TO CUSTOMERS BY SEGMENT OF BUSINESS AND GEOGRAPHIC
AREAS
(Dollars in Millions)
SALES BY SEGMENT OF BUSINESS
Third Quarter Nine Months
Percent Percent
1995 1994 Increase 1995 1994 Increase
Consumer
Domestic $ 717 714 .4 2,131 2,008 6.1
International 744 660 12.7 2,235 1,915 16.7
1,461 1,374 6.3% 4,366 3,923 11.3%
Pharmaceutical
Domestic 702 554 26.7 1,968 1,591 23.7
International 896 793 13.0 2,733 2,254 21.3
1,598 1,347 18.6% 4,701 3,845 22.3%
Professional
Domestic 916 734 24.8 2,642 2,159 22.4
International 763 583 30.9 2,287 1,717 33.2
1,679 1,317 27.5% 4,929 3,876 27.2%
Domestic 2,335 2,002 16.6 6,741 5,758 17.1
International 2,403 2,036 18.0 7,255 5,886 23.3
Worldwide $4,738 4,038 17.3% 13,996 11,644 20.2%
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NOTE 5 - SALES TO CUSTOMERS BY SEGMENT OF BUSINESS AND GEOGRAPHIC
AREAS
SALES BY GEOGRAPHIC AREAS
Third Quarter Nine Months
Percent Percent
1995 1994 Increase 1995 1994 Increase
U.S. $2,335 2,002 16.6 6,741 5,758 17.1
Europe 1,347 1,126 19.6 4,195 3,375 24.3
Western Hemisphere
excluding U.S. 447 412 8.5 1,275 1,099 16.0
Africa, Asia and
Pacific 609 498 22.3 1,785 1,412 26.4
Total $4,738 4,038 17.3% 13,996 11,644 20.2%
NOTE 6 - ACQUISITIONS AND DIVESTITURES
During the second quarter, Johnson & Johnson completed the
acquisitions of Mitek Surgical Products, Inc., Menlo Care, Inc.,
and Joint Medical Products, Inc. Mitek Surgical Products, Inc. is
a developer and manufacturer of suture anchor products marketed for
soft tissue reattachment. Menlo Care, Inc. manufactures and
markets a line of vascular access products to hospital and home
health care professionals. Joint Medical Products sells both hip
and knee joint reconstruction products in the U.S. and
international orthopaedic markets. During the third quarter,
Johnson & Johnson completed the acquisition of Gyno-Pharma, Inc.,
which has exclusive licensing and marketing rights to the PARAGARD
T380A (intrauterine device, or IUD) in the United States. The
aggregate purchase price for these acquisitions was $400 million.
Pro forma results of the acquisitions, assuming that the
transactions were consummated at the beginning of each year
presented, would not be materially different from the results
reported.
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On March 31, 1995, the Company sold IOLAB's worldwide
ophthalmic surgical business to Chiron Vision, a division of Chiron
Corporation. This transaction, together with the sale last year of
IOLAB's ophthalmic pharmaceutical business furthers the Company's
ability to focus resources on other business areas that provide
greater opportunities for continued growth and profitability.
On March 15, 1995, the Company divested Johnson & Johnson
Advanced Materials Company and Chicopee B.V., Netherlands,
worldwide developers and marketers of non-woven materials used in
a broad range of health care, consumer and industrial applications.
These divestitures resulted in an after-tax capital gain of $103
million, which was offset by write-offs of certain assets in
connection with reengineering programs.
NOTE 7 - SUBSEQUENT EVENT
On November 13, 1995, Johnson & Johnson and Cordis Corporation
announced that they have signed a definitive merger agreement for
a $109 per share stock-for-stock merger of the two companies. The
merger requires the approval of the holders of a majority of the
outstanding Cordis shares. The parties said that they would expect
that the shareholders meeting could be held in approximately 90
days.
Cordis has approximately 17.6 million shares outstanding on a
fully diluted basis, giving the merger a total equity value, net of
cash, of approximately $1.8 billion.
- 12 -<PAGE>
Item 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
SALES AND EARNINGS
Consolidated sales for the first nine months of 1995 of $13,996
million exceeded sales of $11,644 million for the first nine months
of 1994 by 20.2%. The strength of foreign currencies relative to
the U.S. dollar increased sales for the first nine months of 1995
by 3.7%. The sales increase of 16.5% due to operations included a
positive price change effect of .2%. Consolidated net earnings
for the first nine months of 1995 were $1,938 million, compared
with net earnings of $1,628 million for the first nine months of
1994. Earnings per share for the first nine months of 1995 were
$3.00 compared with $2.53 for the same period a year ago. Net
earnings and earnings per share rose 19.0% and 18.6%, respectively.
Consolidated sales for the third quarter of 1995 were $4,738
million, an increase of 17.3% over 1994 third quarter sales of
$4,038 million. The effect of the weaker U.S. dollar relative to
foreign currencies increased third quarter sales by 2.2%.
Consolidated net earnings for the third quarter of 1995 were $623
million, compared with $525 million for the same period a year ago,
an increase of 18.7%. Earnings per share for the third quarter of
1995 rose 17.1% to $.96 compared with $.82 in the 1994 period.
Domestic sales for the first nine months of 1995 were $6,741
million, an increase of 17.1% over 1994 domestic sales of $5,758
million for the same period a year ago. Sales by international
subsidiaries were $7,255 million for the first nine months of 1995
compared with $5,886 million for the same period a year ago, an
increase of 23.3%. Excluding the impact of the weaker value of the
dollar, international sales increased by 16.0%.
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Worldwide consumer sales increased by 6.3%, during the third
quarter, which includes 0.4% in the U.S. and 12.7% internationally.
Despite incremental sales generated by the acquisition of
Neutrogena and the launch of PEPCID AC Acid Controller, U.S. sales
were flat during the quarter due to softness in the TYLENOL
business as well as inventory contraction at some major retailers.
Neutrogena is a line of high quality hair and skin care products,
which was acquired in the third quarter of 1994. PEPCID AC Acid
Controller, which both prevents and treats heartburn, is marketed
by Johnson & Johnson-Merck Consumer Pharmaceuticals Co. Since its
launch in May, sales of PEPCID AC have continued to progress
extremely well. Our consumer business in Brazil contributed
significantly to the growth of international sales during the
quarter for this segment.
Worldwide pharmaceutical sales increased 18.6% during the third
quarter, with U.S. and international sales up 26.7% and 13.0%,
respectively. Sales growth was led by the strong performance of
RISPERDAL, a new anti-psychotic medication; PROCRIT, a treatment
for anemia; PROPULSID, a gastrointestinal product; SPORANOX, a
broad spectrum antifungal agent; and ULTRAM, a centrally acting
prescription analgesic for moderate to moderately severe pain.
ULTRAM, which is less likely to cause gastrointestinal side effects
associated with many currently available analgesics, has been well
received by patients and physicians since its April introduction in
the U.S.
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In September 1995, Johnson & Johnson received Food and Drug
Administration ("FDA") approval to market PROPULSID in suspension
form. Prior to this approval, PROPULSID was only available in
tablets. During the month of September, the Company also received
approval from the FDA to market SPORANOX for the indication of
onychomycosis, a fungal nail disease.
The worldwide sales increase of 27.5% in the Professional
segment during the third quarter was composed of 24.8% in the U.S.
and 30.9% internationally. Strong sales growth continued to be
fueled by the rapid market acceptance of the PALMAZ-SCHATZ Coronary
Stent for reducing restenosis, in which arteries become clogged
again after balloon angioplasty. LifeScan's blood glucose
monitoring systems posted strong growth, reflecting the successful
launch of the ONE TOUCH PROFILE meter. Ethicon's sutures, Ethicon
Endo-Surgery's minimally invasive surgical instruments and
Vistakon's disposable contact lenses continued to deliver solid
growth. Vistakon's One-Day ACUVUE is now available in Japan,
Canada, U.K. and Denmark in addition to the U.S. Johnson & Johnson
Clinical Diagnostics, the diagnostic business acquired from Kodak
in November 1994, also contributed to the significant sales growth
in the professional business during the third quarter.
In March 1995, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standard (SFAS) No. 121,
"Accounting for the Impairment of Long-Lived Assets and Long-Lived
Assets to be Disposed of." The new statement will be adopted in
1996 and management is currently assessing its effect on the
Company's results of operations, cash flows and financial position.
- 15 -<PAGE>
In October 1995, the Financial Accounting Standards Board
issued Statement of Financial Accounting Standards (SFAS) No. 123,
"Accounting for Stock-Based Compensation". The new statement
requires companies to measure employee stock compensation plans
based on the fair value method of accounting. However, the
statement allows the alternative of continued use of Accounting
Principles Board (APB) Opinion No. 25, "Accounting for Stock Issued
to Employees". If this alternative is used, then pro forma
disclosure of net income and earnings per share determined as if
the fair value based method had been applied in measuring
compensation cost must be disclosed. The Company will continue to
apply the intrinsic value based method of accounting for stock
based compensation agreements as per APB Opinion No. 25, with pro
forma disclosures.
Average shares of common stock outstanding in the first nine
months of 1995 were 645.5 million, compared with 643.2 million for
the same period a year ago.
- 16 -<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
Net debt (borrowings net of cash and current marketable
securities) as of October 1, 1995 was 11.7% of net capital
(stockholders' equity and net debt) compared with 25.2% at the end
of 1994. Net debt decreased by $1,215 million during the first
nine months of 1995 to $1.18 billion at October 1, 1995. Total
debt represented 22.0% of total capital (stockholders' equity and
total borrowings) at quarter end, compared with 30.3% at the end of
1994.
Additions to property, plant and equipment were $780 million for
the first nine months of 1995, compared with $532 for the same
period in 1994.
On October 16, 1995, the Board of Directors approved a regular
quarterly dividend of 33 cents per share payable on December 5,
1995 to shareholders of record as of November 14, 1995.
Part II - Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit Numbers
(1) Exhibit 11 - Calculation of Earnings Per Share
(2) Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K
The Company did not file any reports on Form 8-K during
the nine month period ended October 1, 1995.
- 17 -<PAGE>
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.
JOHNSON & JOHNSON
(Registrant)
Date: November 13, 1995 By C. H. Johnson
C. H. Johnson
(Vice President, Finance)
Date: November 13, 1995 By J. H. Heisen
J. H. Heisen
(Corporate Controller)
- 18 -<PAGE>
EXHIBIT 11
JOHNSON & JOHNSON AND SUBSIDIARIES
CALCULATION OF EARNINGS PER SHARE
(Dollars and shares in millions except per share figures)
Fiscal Quarter Ended
Oct. 1, Oct. 2,
1995 1994
1. Net Earnings ................ $ 623 525
2. Average number of shares outstanding
during the period............ 647.8 643.3
3. Earnings per share based upon average
outstanding shares (1 / 2) $ .96 .82
4. Fully diluted earnings per share:
a. Average number of shares out-
standing during the period. 647.8 643.3
b. Shares issuable under stock
compensation agreements at
fiscal quarter-end........ .1 .3
c. Shares reserved under the stock
option plan for which the
market price at end of quarter
exceeds the option price.. 32.6 32.0
d. Aggregate proceeds to the Company
from the exercise of
options in 4c ............ 1,528 1,244
e. Market price of the Company's
common stock at fiscal
quarter-end............... 74.13 51.75
f. Shares which could be repurchased
under the treasury stock method
(4d / 4e) ................ 20.6 24.0
g. Addition to average outstanding
shares (4b + 4c - 4f)..... 12.1 8.3
h. Shares for fully diluted earnings
per share calculation
(4a + 4g) ................ 659.9 651.6
i. Fully diluted earnings per share
(1 / 4h) ................. $ .94 .81
- 19 -<PAGE>
JOHNSON & JOHNSON AND SUBSIDIARIES
CALCULATION OF EARNINGS PER SHARE
(Dollars and shares in millions except per share figures)
Fiscal
Nine Months Ended
Oct. 1, Oct. 2,
1995 1994
1. Net Earnings ................ $1,938 1,628
2. Average number of shares outstanding
during the period............ 645.5 643.2
3. Earnings per share based upon average
outstanding shares (1 / 2) $ 3.00 2.53
4. Fully diluted earnings per share:
a. Average number of shares out-
standing during the period. 645.5 643.2
b. Shares issuable under stock
compensation agreements at fiscal
nine months end........... .1 .3
c. Shares reserved under the stock
option plan for which the
market price at end of quarter
exceeds the option price.. 32.6 32.0
d. Aggregate proceeds to the Company
from the exercise of
options in 4c ............ 1,528 1,244
e. Market price of the Company's
common stock at fiscal
nine months end........... 74.13 51.75
f. Shares which could be repurchased
under the treasury stock method
(4d / 4e) ................ 20.6 24.0
g. Addition to average outstanding
shares (4b + 4c - 4f)..... 12.1 8.3
h. Shares for fully diluted earnings
per share calculation
(4a + 4g) ................ 657.6 651.5
i. Fully diluted earnings per share
(1 / 4h) ................. $ 2.95 2.50
- 20 -
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> OCT-01-1995
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<RECEIVABLES> 3,311
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<INVENTORY> 2,374
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