<PAGE> -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 May 2, 1997
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
incorporation or organization) Identification No.)
P.O. BOX 1111, NORTH WILKESBORO, N.C. 28656
(Address of principal executive offices)
(Zip Code)
(910)658-4000
(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 30, 1997
Common Stock, $.50 par value 173,866,419
13
TOTAL PAGES
<PAGE> -2-
LOWE'S COMPANIES, INC.
-INDEX-
PART I Financial Information: Page No.
Consolidated Balance Sheets May 2, 1997,
April 30, 1996 and January 31, 1997 3
Consolidated Statements of Current and
Retained Earnings three months
ended May 2, 1997 and April 30, 1996 4
Consolidated Statements of Cash Flows three
months ended May 2, 1997 and April 30, 1996 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 6 (a) - Exhibits
Item 6 (b) - Reports on Form 8-K
EXHIBIT INDEX
Exhibit 11 Computation of per share earnings 13
<PAGE> -3-
Consolidated Balance Sheets
Lowe's Companies, Inc. and Subsidiary Companies
Dollars in thousands
<TABLE>
<CAPTION>
May 2, April 30, January 31,
1997 1996 1997
<S> <C> <C> <C>
Assets
Current assets:
Cash and cash equivalents $ 47,872 $ 108,359 $ 40,387
Short-term investments 19,609 84,241 30,103
Accounts receivable - net 147,871 135,063 117,562
Merchandise inventory 1,819,125 1,451,823 1,605,880
Other assets 54,848 53,654 57,534
Total current assets 2,089,325 1,833,140 1,851,466
Property, less accumulated
depreciation 2,583,027 1,984,704 2,494,396
Long-term investments 30,519 28,277 35,615
Other assets 46,455 56,931 53,477
Total assets $4,749,326 $3,903,052 $4,434,954
Liabilities and Shareholders' Equity
Current liabilities:
Short-term borrowings $ 140,717 $ 59,961 $ 80,905
Current maturities of
long-term debt 23,285 8,718 22,566
Accounts payable 1,016,173 842,711 914,167
Employee retirement plans 67,857 45,846 60,770
Accrued salaries and wages 65,846 43,694 71,662
Other current liabilities 254,835 209,326 198,461
Total current liabilities 1,568,713 1,210,256 1,348,531
Long-term debt, excluding
current maturities 788,637 897,978 767,338
Deferred income taxes 103,370 87,337 101,609
Total liabilities 2,460,720 2,195,571 2,217,478
Shareholders' equity
Preferred stock - $5 par value,
none issued - - -
Common stock - $.50 par value;
Issued and Outstanding
May 2, 1997 173,628,954
April 30, 1996 161,234,218
January 31, 1997 173,403,639 86,814 80,617 86,702
Capital in excess of par 912,004 607,721 903,661
Retained earnings 1,306,755 1,027,462 1,245,888
Unearned compensation-restricted
stock awards (16,779) (7,597) (18,434)
Unrealized loss on available-
for-sale securities (188) (722) (341)
Total shareholders' equity 2,288,606 1,707,481 2,217,476
Total liabilities and
shareholders' equity $4,749,326 $3,903,052 $4,434,954
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE> -4-
Consolidated Statements of Current and Retained Earnings
Lowe's Companies, Inc. and Subsidiary Companies
Dollars In Thousands, Except Per Share Data
<TABLE>
<CAPTION>
Quarter ended
May 2, 1997 April 30, 1996
Amount Percent Amount Percent
<S> <C> <C> <C> <C>
Current Earnings
Net sales $2,400,754 100.00 $1,906,498 100.00
Cost of sales 1,777,051 74.02 1,429,998 75.01
Gross margin 623,703 25.98 476,500 24.99
Expenses:
Selling, general
and administrative 412,218 17.18 318,978 16.72
Store opening costs 8,252 0.34 12,493 0.66
Depreciation 56,712 2.36 44,635 2.34
Employee retirement plans 19,262 0.80 13,671 0.72
Interest 17,286 0.72 13,189 0.69
Total expenses 513,730 21.40 402,966 21.13
Pre-tax earnings 109,973 4.58 73,534 3.86
Income tax provision 39,590 1.65 26,472 1.39
Net earnings $ 70,383 2.93 $47,062 2.47
Shares outstanding
(weighted average) 173,528 161,140
Earnings per common & common
equivalent share $0.41 $0.29
Earnings per common share -
assuming full dilution $0.41 $0.28
Retained earnings
Balance at beginning
of period $1,245,888 $988,447
Net earnings 70,383 47,062
Cash dividends (9,516) (8,047)
Balance at end of period $1,306,755 $1,027,462
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE> -5-
Consolidated Statements of Cash Flows
Lowe's Companies, Inc. and Subsidiary Companies
Dollars in Thousands
<TABLE>
<CAPTION>
For the three-months ended
May 2, April 30,
1997 1996
<S> <C> <C>
Cash Flows From Operating Activities:
Net Earnings $ 70,383 $ 47,062
Adjustments to Reconcile
Net Earnings to Net Cash
Provided By Operating Activities:
Depreciation 56,712 44,635
Amortization of
Original Issue Discount 28 874
Increase
in Deferred Income Taxes 2,613 1,141
(Gain)Loss on Disposition/Writedown
of Fixed and Other Assets 6,120 (1,156)
Decrease (Increase) in Operating Assets:
Accounts Receivable - Net (30,309) (21,580)
Merchandise Inventory (213,245) (184,746)
Other Operating Assets 1,811 752
Increase in Operating Liabilities:
Accounts Payable 102,006 187,312
Employee Retirement Plans 15,587 11,915
Other Operating Liabilities 52,091 34,666
Net Cash Provided by
Operating Activities 63,797 120,875
Cash Flows from Investing Activities:
Decrease (Increase) in Investment Assets:
Short-Term Investments 16,879 33,398
Purchases of Long-Term Investments (3,012) (7,636)
Proceeds from Sale/Maturity
of Long-Term Investments 1,958 10,548
Decrease in Other Long-Term Assets 315 76
Fixed Assets Acquired (121,539) (144,121)
Proceeds from the Sale of Fixed
and Other Long-Term Assets 1,984 3,825
Net Cash Used in Investing
Activities (103,415) (103,910)
Cash Flows from Financing Activities:
Sources:
Net Increase in
Short-Term Borrowings 59,812 43,344
Stock Options Exercised 76 -
Total Financing Sources 59,888 43,344
Uses:
Repayment of Long-term Debt (3,269) (7,771)
Cash Dividend Payments (9,516) (8,047)
Total Financing Uses (12,785) (15,818)
Net Cash Provided by Financing
Activities 47,103 27,526
Net Increase in Cash and
Cash Equivalents 7,485 44,491
Cash and Cash Equivalents,
Beginning of Period 40,387 63,868
Cash and Cash Equivalents,
End of Period $47,872 $108,359
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE> -6-
Lowe's Companies, Inc. and Subsidiary Companies
Notes to Consolidated Financial Statements
Note 1: The accompanying Consolidated Financial Statements (unaudited)
have been reviewed by an independent certified public accountant, and in the
opinion of management, they contain all adjustments necessary to present
fairly the financial position as of May 2, 1997, and the results of operations
and the cash flows for the three-month periods ended May 2, 1997 and April 30,
1996.
Note 2: During this fiscal year, when the current quarter is compared
with the same fiscal quarter in the prior year, certain variances result
because, effective February 1, 1997, the Company adopted a 52 week fiscal
year, changing the year end date from January 31 to the Friday nearest January
31. Each quarter of the 52 week fiscal year will contain 13 weeks except for
the infrequent fiscal years with 53 weeks. The Company estimates that had it
been on a similar calendar in fiscal 1996, the previously reported results for
the first quarter would have been favorably impacted by approximately three
cents per share. The earnings differences for the second, third and fourth
quarters of fiscal 1996 attributable to the Company's change of its fiscal
calendar are approximately one cent per share or less.
Note 3: The Company has a cash management program which provides for the
investment of excess cash balances in financial instruments which have
maturities of up to three years. Investments with original maturities of three
months or less when purchased are classified as cash equivalents. Investments
with a maturity of between three months and one year from the balance sheet
date are classified as short-term investments. Investments with maturities
greater than one year are classified as long-term.
Note 4: Net interest expense is composed of the following ($ in
thousands):
<TABLE>
<CAPTION>
Quarter ended
May 2, April 30,
1997 1996
<S> <C> <C>
Long-term debt $ 6,576 $ 9,763
Capitalized leases 10,010 5,676
Short-term debt 3,435 1,198
Amortization of loan cost 89 103
Short-term interest income (1,499) (2,221)
Interest capitalized on
construction in progress (1,325) (1,330)
Net interest expense $17,286 $13,189
</TABLE>
Note 5: If the FIFO method of inventory accounting had been used,
inventories would have been $77,162,000 higher at May 2, 1997, $77,717,000
higher at April 30, 1996 and $74,616,000 higher at January 31, 1997.
Note 6: Stock options exercised consisted of 4,000 shares resulting in
proceeds of $75,500 for the quarter ended May 2, 1997. There were no stock
options exercised in the quarter ended April 30, 1996.
Note 7: Property is shown net of accumulated depreciation of $660,374,000
at May 2, 1997, $496,635,000 at April 30, 1996 and $609,707,000 at January 31,
1997.
<PAGE> -7-
Note 8: Supplemental disclosures of cash flow information ($ in
thousands):
<TABLE>
<CAPTION>
Quarter ended
May 2, 1997 April 30, 1996
<S> <C> <C>
Cash paid for interest
(net of capitalized) $22,996 $17,758
Cash paid for income taxes 4,982 1,811
Non-cash investing and financing activities:
Common stock issued to ESOP 8,500 10,993
Fixed assets acquired under
capital lease 25,260 33,310
</TABLE>
Note 9: In January 1997, the Board of Directors authorized the funding of
the Fiscal 1996 ESOP contribution primarily with the issuance of new shares of
the Company's common stock. During the first quarter of Fiscal 1997, the
Company issued 225,165 shares with a market value of $8.5 million.
Note 10: On May 9, 1997, the Company registered $350 million of Medium-
Term Notes (MTN's) from its shelf registration filed with the SEC on November
8, 1996. As of May 15, 1997, the Company had sold $100 million of these MTN's
to investors with a final maturity of May 15, 2037, at a yield of 7.11%. This
issuance of MTN's may be put at the option of the holder on either the tenth
or twentieth anniversary date of the issue.
Note 11: 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.
In February 1997, Statement of Financial Accounting Standards No. 128,
"Earnings per Share" (SFAS 128) was issued to simplify the standards for
computing earnings per share (EPS) and make them comparable to international
EPS standards. SFAS 128 is effective for periods ending after December 15,
1997 and can not be adopted at an earlier date. SFAS 128 will require dual
presentation of basic and diluted EPS on the face of the statement of current
earnings and a reconciliation of the components of the basic and diluted EPS
calculations in the notes to the financial statements. Basic EPS excludes
dilution and is computed by dividing net earnings by the weighted-average
number of common shares outstanding for the period. Diluted EPS is similar to
fully diluted EPS pursuant to Accounting Principles Board (APB) Opinion No.
15. The Company will adopt SFAS 128 in the quarter and year ending January
30, 1998. Had the new standard been applied in the quarter ending May 2,
1997, basic and diluted EPS would have been the same as primary and fully
diluted EPS under APB Opinion No. 15.
Note 12: The Company has a program with General Electric Capital
Corporation (GECC) under which it sells credit card receivables from its
proprietary credit card to GECC. Statement of Financial Accounting Standards
No. 125, "Accounting for Transfers and Servicing of Financial Assets and
Extinguishment of Liabilities" (SFAS 125), effective for transactions after
December 31, 1996, would require the Company to record the receivables sold to
GECC as assets on its consolidated balance sheet, with a corresponding amount
shown as a liability under the structure of the current credit card sales
agreement. At May 2, 1997, the Company has not reflected the credit card
receivables which have arisen and been sold to GECC since December 31, 1996 in
its consolidated balance sheet, as such amounts are not material. The Company
is currently working with GECC to restructure the credit card sales agreement,
and believes that under the new agreement, the credit card receivables will
continue to be excluded from the consolidated balance sheet under SFAS 125.
<PAGE> -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 first quarter of fiscal 1997, sales increased 26% to $2.401
billion, comparable store sales had a 7% gain and net earnings increased by
50% to $70.383 million compared to last year's first quarter results. Earnings
per share (fully diluted) were $.41 compared to $.28 for the comparable
quarter of last year.
Sales in the first 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 first quarter. Sales performances in our basic businesses were strong
through-out the quarter. Electrical, home decor, tools, appliances, kitchen
cabinets and lawn and garden categories all posted sales increases exceeding
25%.
Gross margin was 25.98% of sales for the quarter ended May 2, 1997
compared to 24.99% for the first quarter of last year. Of the 99 basis point
improvement, 12 basis points were due to a favorable LIFO comparison. The
balance of 87 points is due to several components including continued efforts
in monitoring store pricing disciplines, favorable changes in the merchandise
mix as well as the mix shift from contractor to retail. The newer higher
margin categories which are less seasonal, such as floor care and R.T.A.
(ready-to-assemble) furniture also contributed to improved margin performance.
These categories were introduced in the second half of 1996 as the consumer
electronics offering was modified.
Selling, general and administrative expenses (SG&A) were 17.18% of sales
versus 16.72% in last year's first quarter. The sudden shift to cooler and
wetter weather in April and its effect on sales in that month resulted in
stores' payroll not being leveraged by sales for the quarter. In addition,
the timing of write-downs of properties related to future closings or
relocations of stores, in accordance with SFAS No. 121 "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed of,"
had a negative impact on the SG&A comparison.
For the quarter ended May 2, 1997, store opening costs were $8.3 million
versus $12.5 million last year, representing costs associated with the opening
of 8 stores this year (6 new and 2 relocated) compared to 15 stores in last
year's first quarter (10 new and 5 relocated). Charges in this quarter for
future and prior openings were $2.7 million compared to $3.3 million in 1996's
first quarter. The Company's 1997 expansion plans are discussed under
"Liquidity and Capital Resources" below.
Depreciation was $56.7 million for the quarter ended May 2, 1997. This
is an increase of 27% over the comparable period last year and is due
primarily to real estate, fixtures, displays and computer equipment relating
to the Company's expansion program.
<PAGE> -9-
Employee retirement plans expense increased 41% to $19.3 million for the
quarter ended May 2, 1997. Higher estimated eligibility rates were primarily
responsible for the increase.
Interest expense increased from $13.2 million to $17.3 million for the
quarter ended May 2, 1997. Interest increased primarily due to capitalized
building leases and short-term interest expense.
The Company's effective income tax rate was 36.00% for the quarters ended
May 2, 1997 and April 30, 1996.
LIQUIDITY AND CAPITAL RESOURCES
The uses of cash in the first quarter have continued to lay the
groundwork for successfully implementing the Company's strategic plan. Net
cash provided by operating activities was $64 million for the quarter ended
May 2, 1997 compared to $121 million for last year's first quarter. The
decrease in this year's first quarter resulted primarily from expansion
related increases in inventory levels and a smaller increase in accounts
payable.
The Company's working capital was $521 million at May 2, 1997 compared to
$623 million at April 30, 1996 and $503 million at January 31, 1997.
Real property has increased as a result of the Company's 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
1997 capital budget is targeted at $1.2 billion, inclusive of $300 million in
operating or capital leases. Over 80% of the capital budget is for store
expansion. Lowe's ended the first quarter with 407 stores and 31.1 million
square feet of retail selling space, a 23% increase over first quarter 1996's
selling space. Expansion plans for 1997 consist of approximately 60 to 65 new
stores with about 70% in new markets and the balance relocations of existing
stores, for approximately 6.2 million square feet of additional retail space.
Approximately one-half of the 1997 projects will be leased. Our first quarter
expansion included 2 relocations and 6 new stores representing 760 thousand
square feet of new incremental retail space.
Current plans are to finance the Company's 1997 expansion program through
funds from operations, leases, issuance of $58 million in common stock to our
ESOP and from external financing. The Company had $141 million of short-term
borrowings at May 2, 1997 compared to $60 million at April 30, 1996 and $81
million at January 31, 1997. On May 9, 1997, the Company registered $350
million of Medium-Term Notes (MTN's) from its shelf registration filed with
the SEC on November 8, 1996. As of May 15, 1997, the Company had sold $100
million of these MTN's to investors with a final maturity of May 15, 2037, at
a yield of 7.11%. This issuance of MTN's may be put at the option of the
holder on either the tenth or twentieth anniversary date of the issue.
<PAGE> -10-
IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS
In February 1997, Statement of Financial Accounting Standards No. 128,
"Earnings per Share" (SFAS 128) was issued to simplify the standards for
computing earnings per share (EPS) and make them comparable to international
EPS standards. SFAS 128 is effective for periods ending after December 15,
1997 and can not be adopted at an earlier date. SFAS 128 will require dual
presentation of basic and diluted EPS on the face of the statement of current
earnings and a reconciliation of the components of the basic and diluted EPS
calculations in the notes to the financial statements. Basic EPS excludes
dilution and is computed by dividing net earnings by the weighted-average
number of common shares outstanding for the period. Diluted EPS is similar to
fully diluted EPS pursuant to Accounting Principles Board (APB) Opinion No.
15. The Company will adopt SFAS 128 in the quarter and year ending January
30, 1998. Had the new standard been applied in the quarter ending May 2,
1997, basic and diluted EPS would have been the same as primary and fully
diluted EPS under APB Opinion No. 15.
FORWARD-LOOKING LANGUAGE
This Securities and Exchange Commission Form 10-Q may include "forward-
looking statements" within the meaning of Section 27A of the Securities Act
and Section 21E of the Exchange Act. Although the Company believes that
comments reflected in such forward-looking statements are reasonable, they are
based on information existing at the time made. Therefore, it can give no
assurance that such expectations will prove to be correct. Important factors
that could cause actual results to differ from expectations include, but are
not limited to, general economic trends, availability and development of real
estate for expansion, commodity markets, and the nature of competition and
weather conditions, all which are described in detail in the Company's 1996
Annual Report.
<PAGE> -11-
INDEPENDENT ACCOUNTANTS' REPORT
The Board of Directors
Lowe's Companies, Inc.:
We have reviewed the accompanying consolidated balance sheets of Lowe's
Companies, Inc. and subsidiary companies as of May 2, 1997 and April 30, 1996,
and the related consolidated statements of current and retained earnings and
of cash flows for the three-month periods ended May 2, 1997 and April 30,
1996. 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, 1997, 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, 1997,
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, 1997 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
May 13, 1997
<PAGE> -12-
Part II OTHER INFORMATION
6 (a) - Exhibits
Exhibit 11 - Computation of per share earnings
Part II OTHER INFORMATION
6 (b) - Reports on Form 8 K
There were no reports filed on Form 8-K during the quarter ended
May 2, 1997.
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.
Date June 13, 1997 \s\ Richard D. Elledge
Richard D. Elledge,
Senior Vice President
and Chief Accounting Officer
-13-
Exhibit 11 - Computation of per share earnings
Three Months Ended
May 2, April 30,
1997 1996
Earnings per Common & Common Equivalent Share:
Net Earnings $70,383 $47,062
Weighted Average Shares
Outstanding 173,453 161,064
Dilutive Effect of Common
Stock Equivalents 75 76
Weighted Average Shares,
as Adjusted 173,528 161,140
Earnings per Common &
Common Equivalent Share $.41 $.29
Earnings per Common Share - Assuming Full Dilution:
Net Earnings $70,383 $47,062
Interest (After Taxes) on
Convertible Debt - 1,906
Net Earnings, as Adjusted $70,383 $48,968
Weighted Average Shares
Outstanding 173,453 161,064
Dilutive Effect of Common
Stock Equivalents 75 76
Shares Added if All Debt
Converted - 10,897
Weighted Average Shares,
as Adjusted 173,528 172,037
Earnings per Common Share
- Assuming Full Dilution $.41 $.28
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-30-1998
<PERIOD-END> MAY-02-1997
<CASH> 47,872
<SECURITIES> 19,609
<RECEIVABLES> 147,871
<ALLOWANCES> 0
<INVENTORY> 1,819,125
<CURRENT-ASSETS> 2,089,325
<PP&E> 2,583,027
<DEPRECIATION> 0
<TOTAL-ASSETS> 4,749,326
<CURRENT-LIABILITIES> 1,568,713
<BONDS> 0
0
0
<COMMON> 86,814
<OTHER-SE> 2,201,792
<TOTAL-LIABILITY-AND-EQUITY> 4,749,326
<SALES> 2,400,754
<TOTAL-REVENUES> 2,400,754
<CGS> 1,777,051
<TOTAL-COSTS> 1,777,051
<OTHER-EXPENSES> 496,444
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 17,286
<INCOME-PRETAX> 109,973
<INCOME-TAX> 39,590
<INCOME-CONTINUING> 109,973
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 70,383
<EPS-PRIMARY> .41
<EPS-DILUTED> .41
</TABLE>
