-1-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended July 31, 1996
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 1-7898
LOWE'S COMPANIES, INC.
(Exact name of registrant as specified in its charter)
NORTH CAROLINA 56-0578072
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
P.O. BOX 1111, NORTH WILKESBORO, N.C. 28656
(Address of principal executive offices)
(Zip Code)
(910) 651-4000
(Registrant's telephone number, including area code)
NONE
(Former name, former address and former fiscal year,
if changed since last report)
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.
Class Outstanding at May 31, 1996
Common Stock, $.50 par value 172,755,058
13
TOTAL PAGES
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LOWE'S COMPANIES, INC.
- INDEX -
PART I - Financial Information: Page No.
Consolidated Balance Sheets - July 31, 1996
and January 31, 1996. 3
Consolidated Statements of Current and
Retained Earnings - three months and six months
ended July 31, 1996 and 1995. 4
Consolidated Statements of Cash Flows - six
months ended July 31, 1996 and 1995. 5
Notes to Consolidated Financial Statements. 6-7
Management's Discussion and Analysis of Results
of Operations and Financial Condition. 8-10
Independent Accountants' Report. 11
PART II - Other Information 12
Item 4 - Submission of Matters to a Vote of Security Holders
Item 6 (a) - Exhibits.
Item 6 (b) - Reports on Form 8-K.
EXHIBIT INDEX
Exhibit 11 Computation of per share earnings 13
<TABLE>
-3-
Consolidated Balance Sheets
Lowe's Companies, Inc. and Subsidiary Companies
Dollars in thousands
<CAPTION>
July 31, January 31,
1996 1996
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents $104,966 $63,868
Short-term investments 57,148 107,429
Accounts receivable - net 143,279 113,483
Merchandise inventory 1,452,715 1,267,077
Other assets 67,990 51,827
Total current assets 1,826,098 1,603,684
Property, less accumulated depreciation 2,124,568 1,858,274
Long-term investments 24,016 41,059
Other assets 57,043 53,369
Total assets $4,031,725 $3,556,386
Liabilities and Shareholders' Equity
Current liabilities:
Short-term notes payable $25,034 $16,617
Current maturities of long-term debt 9,792 14,127
Accounts payable 773,175 655,399
Employee retirement plans 44,527 44,924
Accrued salaries and wages 76,681 67,370
Other current liabilities 229,409 151,494
Total current liabilities 1,158,618 949,931
Long-term debt, excluding current maturities 693,649 866,183
Deferred income taxes 91,809 83,557
Total liabilities 1,944,076 1,899,671
Shareholders' equity
Common stock - $.50 par value;
Issued and Outstanding
July 31, 1996 172,597,431
January 31, 1996 160,918,046 86,299 80,459
Capital in excess of par 875,606 596,828
Retained earnings 1,133,216 988,447
Unearned compensation-restricted stock awards (7,016) (8,076)
Unrealized loss on available-for-sale securities (456) (943)
Total shareholders' equity 2,087,649 1,656,715
Total liabilities
shareholders' equity $4,031,725 $3,556,386
See accompanying notes to consolidated financial statements.
</TABLE>
<TABLE>
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Consolidated Statements of Current and Retained Earnings
Lowe's Companies, Inc. and Subsidiary Companies
Dollars In Thousands, Except Per Share Data
<CAPTION>
Quarter Ended Six Months Ended
July 31, 1996 July 31, 1995 July 31, 1996 July 31, 1995
Current Earnings Amount Percent Amount Percent Amount Percent Amount Percent
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net sales $2,459,008 100.00 $1,978,058 100.00 $4,365,506 100.00 $3,612,748 100.00
Cost of sales 1,830,216 74.43 1,484,486 75.05 3,260,214 74.68 2,697,066 74.65
Gross margin 628,792 25.57 493,572 24.95 1,105,292 25.32 915,682 25.35
Expenses:
Selling, general and
administrative 361,915 14.73 290,677 14.69 680,893 15.60 556,141 15.40
Store opening costs 12,560 0.51 11,438 0.58 25,053 0.57 20,029 0.55
Depreciation 47,767 1.94 35,811 1.81 92,402 2.12 68,781 1.90
Employee retirement plans 17,051 0.69 13,188 0.67 30,722 0.70 26,727 0.74
Interest 12,115 0.49 8,929 0.45 25,304 0.58 18,259 0.51
Total expenses 451,408 18.36 360,043 18.20 854,374 19.57 689,937 19.10
Pre-tax earnings 177,384 7.21 133,529 6.75 250,918 5.75 225,745 6.25
Income tax provision 63,105 2.56 48,522 2.45 89,577 2.05 81,812 2.27
Net earnings $114,279 4.65 $85,007 4.30 $161,341 3.70 $143,933 3.98
Shares outstanding
(weighted average) 163,363 160,432 162,264 160,350
Earnings per common & common
equivalent share $0.70 $0.53 $0.99 $0.90
Earnings per common share -
assuming full dilution $0.67 $0.51 $0.96 $0.86
Retained earnings
Balance at beginning
of period $1,027,462 $844,620 $988,447 $792,891
Net earnings 114,279 85,007 161,341 143,933
Cash dividends (8,525) (7,211) (16,572) (14,408)
Balance at end of period $1,133,216 $922,416 $1,133,216 $922,416
See accompanying notes to consolidated financial statements.
</TABLE>
<TABLE>
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Consolidated Statements of Cash Flows
Lowe's Companies, Inc. and Subsidiary Companies
Dollars in Thousands
<CAPTION>
For the six months ended July 31,
1996 1995
<S> <C> <C>
Cash Flows From Operating Activities:
Net Earnings $161,341 $143,933
Adjustments to Reconcile Net Earnings to Net Cash
Provided By Operating Activities:
Depreciation 92,402 68,781
Amortization of Original Issue Discount 1,616 1,928
Increase in Deferred Income Taxes 5,904 9,287
Gain on Disposition/Writedown of Fixed
and Other Assets (385) (1,041)
Decrease (Increase) in Operating Assets:
Accounts Receivable - Net (29,796) (37,718)
Merchandise Inventory (185,638) (33,373)
Other Operating Assets (13,960) (7,674)
Increase (Decrease) in Operating Liabilities:
Accounts Payable 117,776 (78,182)
Employee Retirement Plans 27,096 23,877
Accrued Store Restructuring (5,715)
Other Operating Liabilities 88,319 27,635
Net Cash Provided by Operating Activities 264,675 111,738
Cash Flows from Investing Activities:
Decrease (Increase) in Investment Assets:
Short-Term Investments 66,166 (1,046)
Purchases of Long-Term Investments (9,671) (16,299)
Proceeds from Sale/Maturity of Long-Term
Investments 11,578 55,156
Other Long-Term Assets 329 540
Fixed Assets Acquired (282,679) (203,269)
Proceeds from the Sale of Fixed and Other
Long-Term Assets 8,426 13,224
Net Cash Used In Investing Activities (205,851) (151,694)
Cash Flows from Financing Activities:
Sources:
Net Increase in Short-Term Borrowings 8,417
Stock Options Exercised 44
Total Financing Sources 8,417 44
Uses:
Repayment of Long-term Debt (9,571) (2,631)
Net Decrease in Short-Term Borrowings (47)
Cash Dividend Payments (16,572) (14,408)
Total Financing Uses (26,143) (17,086)
Net Cash Used In Financing Activities (17,726) (17,042)
Net Increase (Decrease) in Cash and Cash Equivalents 41,098 (56,998)
Cash and Cash Equivalents, Beginning of Period 63,868 150,319
Cash and Cash Equivalents, End of Period $104,966 $ 93,321
See accompanying notes to consolidated financial statements.
</TABLE>
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Lowe's Companies, Inc. and Subsidiary Companies
Notes to Consolidated Financial Statements
Note 1: The accompanying Consolidated Condensed Financial Statements
(unaudited) have been reviewed by an independent certified public accountant,
and in the opinion of management, they contain all adjustments necessary to
present fairly the financial position as of July 31, 1996, and the results of
operations for the three-month and six-month periods ended July 31, 1996 and
1995, and the cash flows for the six-month periods ended July 31, 1996 and
1995.
Note 2: The results of operations for the six-month periods ended July 31,
1996 and 1995 are not necessarily indicative of the results to be expected
for the full year.
Note 3: The Company has a cash management program which provides for the
investment of excess cash balances in financial instruments which have
maturities of up to three years. Investments that are readily convertible to
cash within three months of purchase are classified as cash equivalents.
Investments with a maturity of between three months and one year are
classified as short-term investments. Investments with maturities greater than
one year are classified as long-term.
Note 4: Net interest expense is composed of the following ($ in thousands):
Quarter ended Six Months ended
July 31, July 31,
1996 1995 1996 1995
Long-term debt $8,908 $8,692 $18,671 $17,581
Capitalized leases 6,652 3,684 12,328 6,992
Short-term debt 504 347 1,702 608
Amortization of loan cost 97 70 200 140
Short-term interest income (2,504) (2,906) (4,725) (5,165)
Interest capitalized on
construction in progress (1,542) (958) (2,872) (1,897)
Net interest expense $12,115 $8,929 $25,304 $18,259
Note 5: If the FIFO method of inventory accounting had been used,
inventories would have been $83,176,000 higher at July 31, 1996 and
$73,226,000 higher at January 31, 1996.
Note 6: There were no stock options exercised during the six-month period
ended July 31, 1996. Stock options exercised in the three-month and six-month
periods ended July 31, 1995 consisted of 4,000 shares resulting in proceeds of
$44,000.
Note 7: Property is shown net of accumulated depreciation of $534,376,000 at
July 31, 1996 and $459,622,000 at January 31, 1996.
-7-
Note 8: Supplemental disclosures of cash flow information:
Six months ended July 31 1996 1995
Cash paid for interest (net of capitalized) $29,462,000 $25,778,000
Cash paid for income taxes 49,352,000 52,643,000
Non-cash investing and financing activities:
Common stock issued to ESOP 27,493,000 25,000,000
Fixed assets acquired under capital lease 88,178,000 40,501,000
Common stock issued to executives
and directors 1,093,000 -
Conversion of debt to common stock 257,091,000 2,230,000
Note 9: In January 1996, the Board of Directors authorized the funding of
the Fiscal 1995 ESOP contribution primarily with the issuance of new shares of
the Company's common stock. During the first half of Fiscal 1996, the Company
issued 780,975 shares with a market value of $27.5 million. The remaining
shares will be issued by the end of the third quarter.
Note 10: The Company's 3% Convertible Subordinated Notes were called for
redemption on July 22, 1996. Most bond holders opted to convert prior to the
redemption date and only $20,000 principal were redeemed at $910.78 per
$1,000. During the second quarter of Fiscal 1996 and 1995, $284,694,000 and
$2,531,000 principal of the Company's 3% Convertible Subordinated Notes were
converted into 10,895,763 and 96,866 shares of the Company's common stock,
respectively. During the first half of Fiscal 1996 and 1995, $284,724,000 and
$2,531,000 principal of the Company's 3% Convertible Subordinated Notes were
converted into 10,896,910 and 96,866 shares of the Company's common stock,
respectively.
Note 11: Costs associated with the relocation and closing of stores during
the three months and six months ended July 31, 1995, which were recognized
through the restructuring charge established in Fiscal 1991, totaled
$6,367,000 and $9,309,000, respectively. There were no costs recognized
through the restructuring charge during the six months ended July 31, 1996
since the store restructuring accrual was depleted as of January 31, 1996, as
anticipated.
Note 12: Earnings per common and common equivalent share is computed based
upon the weighted average number of common shares outstanding during the
period plus the dilutive effect of common shares contingently issuable from
stock options. Earnings per common share - assuming full dilution reflects
the potential dilutive effect of dilutive common share equivalents and the
Company's 3% Convertible Subordinated Notes issued July 22, 1993.
-8-
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
RESULTS OF OPERATIONS
This discussion should be read in conjunction with the financial
statements and the financial statement footnotes included in this Form 10-Q.
For the quarter ended July 31, 1996, the Company reported its best-ever
quarter in sales, earnings and dividends paid. Sales grew 24% to $2.459
billion, net earnings increased 34% to $114.3 million and earnings per share
(fully diluted) were $.67 compared to $.51 in the comparable quarter of last
year. Comparable store sales were up 8%. For the six months ended July 31,
1996, sales grew 21% to $4.366 billion, net earnings increased 12% to $161.3
million and earnings per share (fully diluted) were $.96 compared to $.86 in
the comparable period of last year. Comparable store sales were up 5% year to
date.
Sales in the second quarter were enhanced by the addition of 5.7 million
square feet of retail selling space at new and existing locations since last
year's second quarter. Significant sales gains came in tools, yard, patio and
garden, kitchen cabinets and appliances, home decor, home water systems,
heating/cooling and home care/safety. Average inflation in sales prices was
flat.
Gross margin was 25.57% of sales for the quarter ended July 31, 1996,
versus 24.95% in last year's quarter. The increase in gross margin rate
continues to reflect both the continuing shift in business from contractor to
retail and favorable changes in our product mix. Gross margin for the six
months ended July 31, 1996, was 25.32% versus 25.35% last year.
Selling, general and administrative expenses (SG&A) were 14.73% of sales
in the second quarter versus 14.69% in last year's quarter. SG&A increased
24.5% compared to a 24.3% sales increase in the quarter. Store salaries
(excluding those in store opening costs) rose 26%, however general office
expense increased only 15% providing a positive 10 basis point variance. A
decrease in market interest rates enhanced credit card related income compared
to last year causing a favorable variance of 12 basis points. The Consumer
Product Safety commission, in the second quarter, issued a statement regarding
child safety when exposed to mini-blinds containing lead. The Company
responded with a decision to remove all inventory of mini-blinds containing
lead and a $3.5 million loss accrual was made in consideration of this
announcement. For the six months ended July 31, 1996, SG&A was 15.60% of
sales versus 15.40% for the comparable period last year.
For the quarter ended July 31, 1996, store opening costs were $12.6
million versus $11.4 million last year, representing costs associated with the
opening of 14 stores this year (12 new and 2 relocated) compared to 13 stores
in last year's second quarter (10 new and 3 relocated). Charges in this
quarter for future openings were $1.9 million compared to $891 thousand in
1995's second quarter. For the six months ended July 31, 1996, store opening
costs were $25.1 million versus $20.0 million last year, representing costs
associated with the opening of 29 new stores this year (22 new stores and 7
relocations) compared to 26 stores in the comparable period last year (17 new
and 9 relocated).
-9-
Depreciation was $47.8 million for the quarter ended July 31, 1996 and
$92.4 million for the six months ended July 31, 1996, increasing 33% and 34%
over the respective comparable periods last year. The increases are due
primarily to fixtures, displays, computer equipment and store equipment
relating to the Company's expansion program.
Employee retirement plans expense was $17.1 million for the three months
ended July 31, 1996, a 29% increase compared to last year's quarter. This 29%
increase in employee retirement plans expense exceeded the 26% increase in
total company salaries due to revisions of Employee Stock Ownership Plan
eligibility rates. This relationship between the expenses is expected to
continue through the remainder of fiscal 1996. For the six months ended July
31, 1996, employee retirement plans expense was up 15% to $30.7 million.
Interest expense increased $7.0 million to $25.3 million for the six
months ended July 31, 1996. This is the result of an increase of $3.9 million
in the first quarter and an increase of $3.1 million in the second quarter.
Interest increased primarily due to senior notes issued in December 1995 and
new capitalized building leases.
The Company's effective income tax rate was 35.58% for the three months
ended July 31, 1996, compared to 36.34% for the comparable three months last
year. The effective rate was 35.70% versus 36.24% for the six months ended
July 31, 1996 and 1995, respectively. The fiscal 1996 rate has decreased
mainly due to a lower effective state rate.
LIQUIDITY AND CAPITAL RESOURCES
The uses of cash in the first six months have continued to lay the
groundwork for successfully implementing our strategic plan. Merchandise
inventory has increased $185.6 million, about 57% due to our new and relocated
stores and 43% due to seasonal increases in inventory and increased
merchandise assortments. Real property has increased in line with the
Company's strategic plan to continue expansion of retail sales floor square
footage by expanding into new markets and relocating from older, smaller
stores to larger stores. The Company's 1996 capital budget is targeted at $1
billion, inclusive of $240 million in operating leases. Over 80% of this
planned investment is for store expansion.
The Company's 3% Convertible Subordinated Notes due July 22, 2003 were
called for redemption on July 22, 1996. Most bond holders opted to convert
prior to the redemption date, increasing stockholders equity $257.1 million
during the three months ended July 31, 1996.
-10-
Lowe's ended the second quarter with 380 stores and 26.8 million square
feet of retail selling space, a 27% increase over last July's selling space.
The Company's expansion plans for 1996 envision about 60 new stores with
about 75% in new markets and the balance relocations, for approximately 6.7
million square feet of additional retail space. Approximately one half of the
1996 projects will be leased and one half will be owned. Expansion in the
first half of fiscal 1996 included 22 new stores and 7 relocations
representing 3 million square feet of new incremental retail space. The
Company also closed or consolidated into existing markets 7 older, smaller
stores during the first half of 1996.
Current plans are to finance 1996 expansion through funds from perations,
operating leases, issuance of about $40 million in common stock to the
Company's ESOP (see Note 9) and from external financing. Financing in the
first six months came primarily from normal operating activities. In addition
to these sources, the Company has available agreements for up to $175 million
in lines of credit for issuing documentary and standby letters of credit. The
Company has a five year, $300 million revolving credit facility with a
syndicate of thirteen banks to provide alternate liquidity for the Company's
commercial paper program and for general corporate purposes. A $100 million
revolving credit and security agreement, expiring in September 1996, is
available from a financial institution. Another $75 million is available for
the purpose of short-term borrowings on a bid basis from various banks.
IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS
As required, the Company adopted Statement of Financial Accounting
Standards (SFAS) No. 121, "Accounting for the Impairment of Long-Lived Assets
and for Long-Lived Assets to be Disposed Of" beginning February 1, 1996 and
there was no material effect on the Company's financial statements.
In October 1995, SFAS No. 123, "Accounting for Stock-Based Compensation,"
was issued and is effective for the Company on February 1, 1996. As permitted
by No. 123, the Company will continue to apply APB Opinion No. 25, which
recognizes compensation cost based on the intrinsic value of the equity
instrument awarded, to its stock based compensation awards to employees and
will disclose the required pro forma effect on net income and earnings per
share in the Company's annual report.
-11-
INDEPENDENT ACCOUNTANTS' REPORT
The Board of Directors
Lowe's Companies, Inc.:
We have reviewed the accompanying consolidated balance sheet of Lowe's
Companies, Inc. and subsidiary companies as of July 31, 1996, and the
related consolidated statements of current and retained earnings for the
three-month and six-month periods ended July 31, 1996 and 1995, and of
cash flows for the six-month periods ended July 31, 1996 and 1995. These
financial statements are the responsibility of the Company's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical
procedures to financial data and of making inquiries of persons
responsible for financial and accounting matters. It is substantially
less in scope than an audit conducted in accordance with generally
accepted auditing standards, the objective of which is the expression of
an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to such consolidated financial statements for them to be
in conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the consolidated balance sheet of Lowe's Companies,
Inc. and subsidiary companies as of January 31, 1996, and the related
consolidated statements of current and retained earnings and of cash
flows for the year then ended (not presented herein); and in our report
dated February 20, 1996 (March 4, 1996 as to the fourth paragraph of
Note 14), we expressed an unqualified opinion on those consolidated
financial statements. In our opinion, the information set forth in the
accompanying consolidated balance sheet as of January 31, 1996 is fairly
stated, in all material respects, in relation to the consolidated
balance sheet from which it has been derived.
/s/ Deloitte & Touche LLP
Charlotte, North Carolina
August 12, 1996
-12-
Part II - OTHER INFORMATION
Item 4 - Submission of Matters to a Vote of Security Holders.
(a)-The annual meeting of shareholders was held May 31, 1996.
(b)-Directors elected at the meeting: William A. Andres, John M. Belk,
Claudine B. Malone and Robert L. Strickland
-Incumbent Directors whose terms expire in subsequent years are:
Carol A. Farmer, Leonard G. Herring, Petro Kulynych, Russell B. Long,
Robert G. Schwartz and Robert L. Tillman
(c)-The matters voted upon at the meeting and the results of the voting
were as follows:
(1) Election of Class I Directors: FOR WITHHELD
William A. Andres 140,731,147 1,179,986
John M. Belk 140,911,725 999,408
Claudine B. Malone 140,906,254 1,004,879
Robert L. Strickland 141,070,555 840,578
(2) Proposal to approve the appointment of Deloitte & Touche as the
independent certified public accountants of the company:
For 141,544,385, Against 134,293, Abstain 232,455.
Item 6 (a) - Exhibits
Exhibit 11 - Computation of per share earnings
Item 6 (b) - Reports on Form 8-K
There were no reports filed on Form 8-K during the quarter ended
July 31, 1996.
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.
LOWE'S COMPANIES, INC.
September 12, 1996 \s\ Richard D. Elledge
Date
Richard D. Elledge,
Senior Vice President and Chief
Accounting Officer
- -13-
Item 6 (a) - Exhibits
Exhibit 11 - Computation of per share earnings
Three Months Ended Six Months Ended
July 31 July 31
1996 1995 1996 1995
Earnings per Common & Common Equivalent Share:
Net Earnings $114,279 $85,007 $161,341 $143,933
Weighted Average Shares
Outstanding 163,286 160,341 162,187 160,257
Dilutive Effect of Common
Stock Equivalent 77 91 77 93
Weighted Average Shares,
as Adjusted 163,363 160,432 162,264 160,350
Earnings per Common &
Common Equivalent Share $.70 $.53 $.99 $.90
Earnings per Common Share - Assuming Full Dilution:
Net Earnings $114,279 $85,007 $161,341 $143,933
Interest (After Taxes) on
Convertible Debt 1,703 1,878 3,614 3,759
Net Earnings,
as Adjusted $115,982 $86,885 $164,955 $147,692
Weighted Average Shares
Outstanding 163,286 160,341 162,187 160,257
Dilutive Effect of Common
Stock Equivalents 77 112 77 113
Shares Added if All Debt
Converted 9,259 10,898 10,068 10,898
Weighted Average Shares,
as Adjusted 172,622 171,351 172,332 171,268
Earnings per Common Share
- Assuming Full Dilution $.67 $.51 $.96 $.86
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JAN-31-1997
<PERIOD-END> JUL-31-1996
<CASH> 104,966
<SECURITIES> 57,148
<RECEIVABLES> 143,279
<ALLOWANCES> 0
<INVENTORY> 1,452,715
<CURRENT-ASSETS> 1,826,098
<PP&E> 2,124,568
<DEPRECIATION> 0
<TOTAL-ASSETS> 4,031,725
<CURRENT-LIABILITIES> 1,158,618
<BONDS> 0
0
0
<COMMON> 86,299
<OTHER-SE> 2,001,350
<TOTAL-LIABILITY-AND-EQUITY> 4,031,725
<SALES> 4,365,506
<TOTAL-REVENUES> 4,365,506
<CGS> 3,260,214
<TOTAL-COSTS> 3,260,214
<OTHER-EXPENSES> 829,070
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 25,304
<INCOME-PRETAX> 250,918
<INCOME-TAX> 89,577
<INCOME-CONTINUING> 161,341
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 161,341
<EPS-PRIMARY> .99
<EPS-DILUTED> .96
</TABLE>
