SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 3, 1998
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FORT JAMES CORPORATION
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(Exact name of registrant as specified in its charter)
Virginia
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(State or other jurisdiction of incorporation)
1-7911 54-0848173
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(Commission File Number) (IRS Employer Identification Number)
120 Tredegar Street, Richmond, Virginia 23219
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(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code: (804) 644-5411
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<PAGE>
Item 5. Other Events.
On February 3, 1998, Fort James Corporation ("Fort James" or the
"Company") published a press release announcing the Company's results
for the fourth quarter and year ended December 28, 1997. The Company
published its consolidated condensed balance sheets as of December 28,
1997, and December 29, 1996, its consolidated statements of operations
for the quarters (13 weeks) and years (52 weeks) ended December 28,
1997, and December 29, 1996, its consolidated statements of cash flows
for the years ended December 28, 1997, and December 29, 1996, and
certain segment information for the years ended December 28, 1997, and
December 29, 1996. A copy of the press release, which includes the
consolidated financial statements, is filed herewith as Exhibit 99.
Item 7. Financial Statements and Exhibits
(c) 99 Press release dated February 3, 1998, published by the registrant - filed
herewith.
<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.
FORT JAMES CORPORATION
By: /s/ William A. Paterson
William A. Paterson
Senior Vice President and Controller
(Principal Accounting Officer)
Date: February 2, 1998
EXHIBIT 99
News Release
[FORT JAMES CORPORATION LOGO]
Fort James Corporation
120 Tredegar Street
Richmond, Virginia 23219
Contact:
Celeste Gunter, Financial 804.649.4307
Richard B. Elder, Media 804.343.4785
FORT JAMES REPORTS IMPROVED FOURTH QUARTER AND FISCAL YEAR 1997 RESULTS
RICHMOND, VIRGINIA, February 3, 1998 - Fort James Corporation today
announced results for its fourth quarter and fiscal year ended December 28,
1997. Excluding non-recurring items, earnings for the fourth quarter were $.48
per diluted share, compared to $.30 per diluted share in 1996, an improvement of
60 percent. Including a restructuring charge of $1.53 per diluted share and an
extraordinary charge on the early extinguishment of debt of $.41 per diluted
share, the company reported a net loss of $1.46 per diluted share for the fourth
quarter of 1997. The restructuring and debt extinguishment charges were both
related to the recent merger of James River Corporation and Fort Howard
Corporation.
Fourth Quarter Results
Compared with the fourth quarter of 1996, income from operations
increased 15 percent to $242.3 million from $210.9 million and net income
increased 48 percent to $106.5 million from $71.9 million, excluding restructure
and debt extinguishment charges and a 1996 tax benefit. Net sales for the
quarter declined approximately 1 percent to $1,761.5 million from $1,785.6
million, primarily due to the impact of foreign currency translation. Excluding
this impact, sales increased approximately 1 percent. Operating margins for the
quarter increased to 13.8 percent, from 11.8 percent in the fourth quarter of
1996, excluding restructuring charges.
Non-Recurring Items
Results for the current quarter reflect a pretax charge of $458.0
million ($317.6 million net of taxes, or $1.53 per diluted share) for
restructuring and other unusual items and an extraordinary charge on the early
extinguishment of debt of $138.2 million ($84.4 million net of taxes, or $.41
per diluted share). In the fourth quarter of 1996, the company reported a
non-recurring charge of $10.6 million ($8.2 million net of taxes, or $.04
per diluted share). The company also recorded a $36 million tax benefit ($.19
per diluted share) in 1996 as a result of a U.S. Tax Court decision allowing the
company to deduct certain expenses relating to Fort Howard's 1988 leveraged
buy-out. Additionally, the fourth quarter of 1996 included a loss on the early
extinguishment of debt of $7.9 million ($4.8 million net of taxes, or $.03 per
diluted share).
Full Year Results
For the full year, excluding non-recurring items, net income increased
44 percent to $439.5 million, or $1.97 per diluted share, in 1997 from $304.9
million, or $1.35 per diluted share, in 1996. Including the non-recurring items,
the company reported a net loss of $27.0 million, or a loss of $.28 per diluted
share, in 1997, compared to net income of $319.9 million, or $1.43 per diluted
share, in 1996. Net sales of $7,259.0 million in 1997 were 5.8 percent below the
$7,707.1 million reported in 1996, due to divestitures and foreign currency
translation. Net sales increased approximately 1 percent excluding these items.
Fourth Quarter Results by Business Segment
The North American Consumer Products Business posted operating profits
of $189.8 million in the current quarter, compared to the $173.7 million
reported in the fourth quarter of 1996, while sales increased slightly to
$1,046.2 million in 1997 versus $1,039.5 million in 1996. Results for the prior
year's quarter included an $18 million charge for revised estimates of costs for
certain environmental matters. The fourth quarter performance of this business
was impacted by a number of transition issues related to the recent merger. The
former Fort Howard operations were converted to the James River 52/53-week
fiscal year cut-off, resulting in a loss of three days of shipments in the
quarter. Additionally, discretionary downtime was taken at selected tissue mills
to adjust inventory levels and to perform maintenance originally scheduled for
1998. Volumes in both the retail tissue and retail Dixie tabletop businesses
improved over the prior year levels and aggregate market shares have
strengthened. Volumes declined in the away-from-home tissue business,
principally as a result of the early year-end cut-off for the Fort Howard
operations. Volumes also declined in the away-from-home Dixie foodservice
business. Pricing in the company's retail tissue and Dixie businesses was
generally unchanged from the prior year's quarter, before the effect of modestly
higher promotional spending in response to competitive activity. Away-from-home
tissue prices were moderately higher reflecting a fourth quarter price increase.
The European Consumer Products Business reported operating profits of
$48.8 million in the fourth quarter of 1997, a 14 percent improvement over the
$42.7 million reported in the prior year, while sales declined 6.2 percent, from
$481.5 million in 1996 to $451.6 million in 1997. Changes in foreign currency
translation associated with the strengthening of the dollar caused the decline
in sales and also impacted operating profits. Absent these changes, the current
quarter sales would have increased 2.5 percent and operating profits would have
increased 22 percent compared to the prior year's quarter. The improvement in
profits resulted from a 2.3 percent increase in finished goods volumes,
partially offset by slightly lower pricing and higher raw material costs. In
addition, the prior year's quarter was adversely impacted by a two-month strike
at the company's Spanish tissue facility.
The Packaging Business reported fourth quarter 1997 profits of $13.6
million on sales of $187.9 million, down from the $15.2 million of profits on
$198.8 million of sales in the prior quarter. Transition issues associated with
a significant change in its customer base negatively impacted the Packaging
Business' sales and profits.
Operating profits for the Communications Papers Business increased
modestly to $12.0 million in the current quarter, compared to $10.0 million in
1996. Sales increased by 3.6 percent, to $118.6 million in 1997 compared to
$114.5 million in 1996. Increased sales and profits were principally the result
of a small increase in volumes and average pricing for uncoated free sheet
papers.
General corporate expenses declined to $21.9 million compared to $30.7
million in 1996, primarily as a result of reduced spending on new, integrated
management information systems.
Full Year Results by Business Segment
Compared to 1996, operating profits for the North American Consumer
Products Business improved 12.2 percent to $845.4 million in 1997. Operating
profits for the European Consumer Products Business increased to $202.4 million
in 1997, a 22 percent increase over the prior year, excluding the effects of
changes in foreign currency translation. The Packaging Business posted profits
of $81.3 million in 1997, a decrease of 5 percent from the prior year, excluding
divested operations. The Communications Papers Business reported 1997 operating
profits of $19.8 million, an 11 percent decline over 1996 profits, despite a
steady improvement in results during the current year.
Restructuring Charge
In conjunction with the merger integration, the company recorded a
$458 million pretax restructuring charge in the fourth quarter. This charge
covers activities which will integrate the operations of James River and Fort
Howard and enable the company to realize merger-related savings estimated to
ultimately total $200 million annually. The restructuring charge includes
approximately $235 million of costs associated with planned plant closures and
the write-off of redundant assets. On January 20, 1998, the company announced it
will permanently close its two smallest U.S. tissue facilities, in Ashland,
Wisconsin, and Carthage, New York, in the spring of 1998. Production from these
two mills, which produce approximately 84,000 tons per year of away-from-home
tissue products, will be transferred to other, more modern Fort James tissue
mills. Also included in the reserve are amounts for additional rationalization
of the company's manufacturing operations planned in North America and Europe.
The restructuring charge includes severance and other employee-related costs in
excess of $100 million associated with a planned net headcount reduction of
approximately 2,500 employees, representing 8% of Fort James' current worldwide
workforce. Cash costs of the restructure program are estimated to total
approximately $150 million, net of tax benefits. An additional estimated $60
million of merger-related costs, which could not be recognized in 1997 under
applicable accounting regulations, will be recorded in 1998 as incurred.
<PAGE>
Cash Flow and Refinancing Activities
Cash provided by operations totaled $764.2 million for the year in
1997. Total debt was reduced by $244.3 million during the year. In addition,
$98.1 million of cash was used to redeem the company's Series O preferred stock
and $152.3 million of cash premiums were paid on the early extinguishment of
debt. Lower average debt levels, combined with the benefits from the company's
refinancing activities allowed the company to reduce interest expense by 17
percent, from $424.4 million in 1996 to $351.8 million in 1997. In early
October, the company completed the refinancing of a total of approximately $2.1
billion of debt. The company estimates these debt refinancings will reduce
annual interest expense by more than $50 million. An extraordinary charge of
$215.0 million ($131.5 million net of taxes, or $.63 per diluted share) was
recorded in the third and fourth quarters of 1997 associated with the
refinancings.
Outlook
Commenting on the company's outlook, Miles L. Marsh, the company's
chairman and chief executive officer said, "The merger integration is
progressing as we had expected, and our rationalization plans are on track. We
continue to believe the merger will ultimately provide annual savings in excess
of $200 million. Additionally, the Company's ongoing cost reduction programs
should continue to be successful in increasing operating profits.
"Industry conditions in our North American Consumer Products Business
appear to be improving and we expect to continue to experience good demand,
strong capacity utilization rates, and a favorable pricing environment.
Conditions in Europe are somewhat more competitive, but relatively stable raw
material costs, continued volume gains and ongoing cost reduction progress
should lead to improved earnings here, as well. Our Packaging Business will face
a challenging year in 1998, principally due to continuing customer transition
issues. Current conditions in our Communications Papers Business appear
generally good, as pricing has stabilized and demand and capacity growth are
more in balance, but risks do exist from weakening pulp markets and higher wood
costs. We also expect to see significant reductions in financing costs, as we
realize the benefits of our debt refinancings and use free cash flow to reduce
debt. Overall, the outlook is encouraging and we are confident that 1998 will be
another year of solid progress."
Fort James is a leading international consumer products company,
serving consumers both at home and away-from-home with bathroom and facial
tissue, paper towels, napkins, and cups and plates. The company's popular brands
include QUILTED NORTHERN, BRAWNY, DIXIE, VANITY FAIR, MARDI GRAS, GREEN FOREST,
SOFT `N GENTLE and SO-DRI in North America and LOTUS, TENDERLY, COLHOGAR and
KITTENSOFT in Europe. Fort James also produces folding cartons for packaging
food and pharmaceuticals and communications papers such as printing, publishing
and office copy paper. The company has approximately 30,000 employees and more
than 65 manufacturing facilities in the U.S., Canada and 10 European countries.
Forward-looking statements in this release are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements are not guaranteed of future performance and are
subject to risks and uncertainties that could cause actual results and company
plans and objectives to differ materially from those projects. Such risks and
uncertainties include, but are not limited to, general business and economic
conditions; competitive pricing pressures for the company's products; changes in
raw material, energy and other costs; opportunities that may be presented to and
pursued by the company; determinations by regulatory and governmental
authorities; the ability to successfully integrate the James River and Fort
Howard businesses; and the ability to achieve synergistic and other cost
reductions and efficiencies.
# # #
Copies of today's news release, along with additional information on
Fort James, is available, at no charge, by calling (888) 526 3711. You may also
access the company's web site at Internet address http://www.fortjames.com.
<PAGE>
FINANCIAL SUMMARY
Fort James Corporation and Subsidiaries
For the Quarters (13 Weeks) and Years (52 Weeks) Ended
December 28, 1997 and December 29, 1996
(in millions, except per share amounts)
<TABLE>
Fourth Quarter Year
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1997(a) (b) 1996 (c) (d) 1997(a) (b) 1996 (c) (d)
<S> <C>
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Net sales $1,761.5 $1,785.6 $7,259.0 $7,707.1
Income from operations before restructure
and nonrecurring items 242.3 210.9 1,056.9 920.0
Net income before restructure and nonrecurring items 106.5 71.9 439.5 304.9
Net income (loss) per common share
Before restructure and nonrecurring items $ .48 $ .31 $ 2.03 $ 1.36
Net income (loss) $ (1.46) $ .43 $ (.36) $ 1.44
Net income (loss) per common share - assuming dilution
Before restructure and nonrecurring items $ .48 $ .30 $ 1.97 $ 1.35
Net income (loss) $ (1.46) $ .42 $ (.28) $ 1.43
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</TABLE>
a) Results for the fourth quarter of 1997 included a nonrecurring restructure
charge of $458.0 million ($317.6 million net of taxes, or $1.53 per diluted
share). Results for the year ended December 28, 1997, included a
nonrecurring restructure charge of $454.2 million ($335.0 million net of
taxes, or $1.62 per diluted share).
(b) Net income (loss) for the fourth quarter and year ended December 28, 1997,
included a net charge of $84.4 million (or $.41 per diluted share) and
$131.5 million (or $.63 per diluted share), respectively, for extraordinary
loss on early extinguishment of debt.
(c) Results for the fourth quarter and year ended December 29, 1996, included
nonrecurring charges of $10.6 million ($8.2 million net of taxes, or $.04
per diluted share) and $10.7 million ($12.9 million net of taxes, or $.07
per diluted share), respectively, for severance costs, asset write-downs
and net gains on asset dispositions. Additionally, the results for the
fourth quarter and year ended December 29, 1996, included a $36 million (or
$.19 per diluted share) nonrecurring tax benefit for a favorable tax
settlement.
(d) Net income (loss) for the fourth quarter and year ended December 29, 1996,
included a net charge of $4.8 million (or $.03 per diluted share) and $8.1
million (or $.04 per diluted share), respectively, for extraordinary loss
on early extinguishment of debt.
(e) All financial information for Fort James Corporation includes the results
of James River Corporation of Virginia and Fort Howard Corporation for all
periods presented giving retroactive effect to the merger on August 13,
1997, which has been accounted for as a pooling of interests. Certain
amounts in the prior year's financial statements have been reclassified to
conform to the current year's presentation including a reclassification of
customer freight charges from net sales to cost of sales.
<PAGE>
<TABLE>
CONSOLIDATED BALANCE SHEETS (e)
Fort James Corporation and Subsidiaries December 28, December 29,
(in millions) 1997 1996
<S> <C>
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ASSETS:
Cash and cash equivalents $ 33.6 $ 34.6
Accounts receivable 787.8 781.3
Inventories 854.3 801.6
Other current assets 240.8 191.1
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Total current assets 1,916.5 1,808.6
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Net property, plant and equipment 4,565.3 4,999.3
Other assets 614.5 619.0
Goodwill 636.9 730.0
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Total assets $7,733.2 $8,156.9
==============================================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY:
Accounts payable and accrued liabilities $1,549.5 $1,413.1
Current portion of long-term debt 34.4 128.9
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Total current liabilities 1,583.9 1,542.0
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Long-term debt 4,155.5 4,305.3
Accrued postretirement benefits other than pensions 474.8 475.9
Other long-term liabilities 283.9 291.7
Deferred income taxes 650.8 690.5
Preferred stock 352.7 738.4
Common shareholders' equity 231.6 113.1
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Total liabilities and shareholders' equity $7,733.2 $8,156.9
==============================================================================================
</TABLE>
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF OPERATIONS (e)
Fort James Corporation and Subsidiaries Quarters Ended Twelve Months Ended
--------------------------------------------------------------
December 28, December 29, December 28, December 29,
(in millions, except per share amounts) 1997 (a)(b) 1996 (c)(d) 1997 (a)(b) 1996 (c)(d)
<S> <C>
- --------------------------------------------------------------------------------------------------------------------------------
Net sales $1,761.5 $1,785.6 $7,259.0 $7,707.1
Cost of goods sold 1,243.1 1,305.8 5,077.7 5,564.2
Selling and administrative expenses 276.1 268.9 1,124.4 1,222.9
Restructure and other unusual items 458.0 10.6 454.2 10.7
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Income (loss) from operations (215.7) 200.3 602.7 909.3
Interest expense 74.2 97.1 351.8 424.4
Other income (expense), net (.9) 6.3 21.4 18.7
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Income (loss) before income taxes, minority interests and
extraordinary item (290.8) 109.5 272.3 503.6
Income tax expense (benefit) (80.9) 7.8 164.0 171.0
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Income (loss) before minority interests and extraordinary item (209.9) 101.7 108.3 332.6
Minority interests (1.2) (2.0) (3.8) (4.6)
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Income (loss) before extraordinary item (211.1) 99.7 104.5 328.0
Extraordinary loss on early extinguishment of debt (84.4) (4.8) (131.5) (8.1)
- --------------------------------------------------------------------------------------------------------------------------------
Net income (loss) $ (295.5) $ 94.9 $ (27.0) $ 319.9
================================================================================================================================
Preferred dividend requirements (6.1) (14.6) (43.4) (58.5)
- --------------------------------------------------------------------------------------------------------------------------------
Net income (loss) applicable to common shares $ (301.6) $80.3 $ (70.4) $ 261.4
================================================================================================================================
Net income (loss) per common share:
Before extraordinary item $ (1.05) $ .46 $ .31 $ 1.49
Extraordinary loss on early extinguishment of debt (.41) (.03) (.67) (.05)
- --------------------------------------------------------------------------------------------------------------------------------
Net income (loss) per share $ (1.46) $ .43 $ (.36) $ 1.44
================================================================================================================================
Weighted average number of common shares 207.2 187.2 195.5 181.4
================================================================================================================================
Net income (loss) per common share - assuming dilution:
Before extraordinary item $ (1.05) $ .45 $.35 $1.47
Extraordinary loss on early extinguishment of debt (.41) (.03) (.63) (.04)
- --------------------------------------------------------------------------------------------------------------------------------
Net income (loss) per share - assuming dilution $ (1.46) $ .42 $ (.28) $1.43
================================================================================================================================
Weighted average number of common shares and common share equivalents 207.2 189.6 207.6 183.1
================================================================================================================================
</TABLE>
<PAGE>
<TABLE>
SEGMENT INFORMATION (e)
Fort James Corporation and Subsidiaries First Second Third Fourth
(in millions) Quarter Quarter Quarter Quarter Year
<S> <C>
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1997 Net sales:
Consumer products:
North America $1,077.4 $1,127.2 $1,109.2 1,046.2 $4,360.0
Europe 472.6 465.4 438.5 451.6 1,828.1
Packaging 196.7 198.3 200.0 187.9 782.9
Communications papers 119.3 112.0 117.8 118.6 467.7
Intersegment elimination (48.2) (48.6) (40.1) (42.8) (179.7)
- ----------------------------------------------------------------------------------------------------------------------------
Total net sales $1,817.8 $1,854.3 $1,825.4 $1,761.5 $7,259.0
============================================================================================================================
1996 Net sales:
Consumer products:
North America $1,091.0 $1,145.3 $1,086.2 $1,039.5 $4,362.0
Europe 510.4 496.7 491.6 481.5 1,980.2
Packaging 341.2 319.9 280.0 198.8 1,139.9
Communications papers 112.2 113.8 116.2 114.5 456.7
Intersegment elimination (73.8) (61.1) (48.1) (48.7) (231.7)
- ----------------------------------------------------------------------------------------------------------------------------
Total net sales $1,981.0 $2,014.6 $1,925.9 $1,785.6 $7,707.1
============================================================================================================================
1997 Income (loss) from operations (a): Consumer products:
North America $ 204.6 $ 231.1 $ 219.9 $ 189.8 $ 845.4
Europe 52.4 52.9 48.3 48.8 202.4
Packaging 21.2 23.8 22.7 13.6 81.3
Communications papers (3.6) 0.4 11.0 12.0 19.8
General corporate expenses (23.8) (22.3) (24.0) (21.9) (92.0)
Restructure and other unusual items income (expense) 57.7 (53.9) (458.0) (454.2)
- ----------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations $ 250.8 $ 343.6 $ 224.0 $ (215.7) $ 602.7
============================================================================================================================
1996 Income (loss) from operations (c): Consumer products:
North America $ 177.6 $ 184.2 $ 217.8 $ 173.7 $ 753.3
Europe 31.1 48.8 54.5 42.7 177.1
Packaging 29.8 24.0 22.9 15.2 91.9
Communications papers 4.2 3.2 4.8 10.0 22.2
General corporate expenses (28.7) (29.7) (35.4) (30.7) (124.5)
Restructure and other unusual items income (expense) (23.4) (7.0) 30.3 (10.6) (10.7)
- ----------------------------------------------------------------------------------------------------------------------------
Income from operations $ 190.6 $ 223.5 $ 294.9 $ 200.3 $ 909.3
============================================================================================================================
</TABLE>
(a) Results for the fourth quarter of 1997 included a nonrecurring restructure
charge of $458.0 million ($317.6 million net of taxes, or $1.53 per diluted
share). Results for the year ended December 28, 1997, included a
nonrecurring restructure charge of $454.2 million ($335.0 million net of
taxes, or $1.62 per diluted share).
(b) Net income (loss) for the fourth quarter and year ended December 28, 1997,
included a net charge of $84.4 million (or $.41 per diluted share) and
$131.5 million (or $.63 per diluted share), respectively, related to
extraordinary loss on early extinguishment of debt.
(c) Results for the fourth quarter and year ended December 29, 1996, included
nonrecurring charges of $10.6 million ($8.2 million net of taxes, or $.04
per diluted share) and $10.7 million ($12.9 million net of taxes, or $.07
per diluted share), respectively, for severance costs, asset write-downs
and net gains on asset dispositions. Additionally, the results for the
fourth quarter and year ended December 29, 1996, included a $36.0 million
(or $.19 per diluted share) nonrecurring tax benefit for a favorable tax
settlement.
(d) Net income (loss) for the fourth quarter and year ended December 29, 1996,
included a net charge of $4.8 million (or $.03 per diluted share) and $8.1
million (or $.04 per diluted share), respectively, related to extraordinary
loss on early extinguishment of debt.
(e) All financial information for Fort James Corporation includes the results
of James River Corporation of Virginia and Fort Howard Corporation for all
periods presented giving retroactive effect to the merger on August 13,
1997, which has been accounted for as a pooling of interests. Certain
amounts in the prior year's financial statements have been reclassified to
conform to the current year's presentation including a reclassification of
customer freight charges from net sales to cost of sales.
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOWS (e)
Fort James Corporation and Subsidiaries Years Ended
---------------------------------------------
(in millions) December 28, 1997 December 29, 1996
<S> <C>
- ------------------------------------------------------------------------------------------------------------
Operating activities:
Net income (loss) $ (27.0) $ 319.9
Depreciation expense and cost of timber harvested 474.7 502.5
Amortization of goodwill 20.1 21.4
Deferred income tax provision (benefit) (41.4) 53.7
Restructure and other unusual items 454.2 10.7
Loss on early extinguishment of debt, net of tax 131.5 8.1
Change in current assets and liabilities:
Accounts receivable (88.8) 96.1
Inventories (79.7) 82.5
Other current assets 23.5 (2.1)
Current liabilities (18.4) 53.8
Foreign currency hedge (31.5)
Other, net (53.0) (62.0)
- ------------------------------------------------------------------------------------------------------------
Cash provided by operating activities 764.2 1,084.6
- ------------------------------------------------------------------------------------------------------------
Investing activities:
Expenditures for property, plant and equipment (505.9) (499.5)
Cash received from sale of assets 190.1 496.6
Cash paid for acquisitions, net (199.9)
Other, net 18.1 10.3
- ------------------------------------------------------------------------------------------------------------
Cash used for investing activities (297.7) (192.5)
- ------------------------------------------------------------------------------------------------------------
Financing activities:
Additions to long-term debt 2,200.9 4.2
Payments of long-term debt (2,378.4) (1,049.2)
Common stock issued, net of offering costs 203.8
Common and preferred stock cash dividends paid (121.6) (97.2)
Premiums paid on early extinguishment of debt (152.3)
Preferred stock redemption (98.1)
Common stock issued on exercise of stock options 82.0 16.1
Other, net (2.2)
- ------------------------------------------------------------------------------------------------------------
Cash used for financing activities (467.5) (924.5)
- ------------------------------------------------------------------------------------------------------------
Increase (decrease) in cash and cash equivalents $ (1.0) $ (32.4)
============================================================================================================
</TABLE>
