SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q/A
Amendment No.1 to 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 September 28, 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 1-4085
------
POLAROID CORPORATION
___________________________________________________________________________
(Exact name of registrant as specified in its charter)
DELAWARE 04-1734655
- -------------------------------- ------------------------
(State or other jurisdiction (I.R.S. Employer
incorporation or organization) Identification No.)
549 TECHNOLOGY SQUARE, CAMBRIDGE, MASSACHUSETTS 02139
___________________________________________________________________________
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (781)386-2000
___________________________________________________________________________
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, and (2) has been subject to such
filing requirements for the past 90 days.
YES X NO
------ ------
Shares of Common Stock, $1 par value,
outstanding as of October 31, 1997: 44,889,929 shares
The undersigned registrant hereby amends the following items, financial
statements, exhibits or other portions of its quarterly report on Form 10-Q
as set forth on the pages attached hereto to correct the transposition error
in the receivables balance at September 28, 1997.
_______________________________________________________________________________
This document contains 6 pages.
___________________________________________________________________________
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
POLAROID CORPORATION AND SUBSIDIARY COMPANIES
Condensed Consolidated Statement of Earnings
Periods ended SEPTEMBER 28, 1997 and SEPTEMBER 29, 1996
(In millions, except per share data)
(Unaudited)
Third Quarter Nine Months
1997 1996 1997 1996
---- ---- ---- ----
Net sales:
United States $258.7 $270.3 $742.0 $725.6
International 257.7 298.8 796.8 886.2
- --------------------------------------------------------------------------
Total net sales 516.4 569.1 1,538.8 1,611.8
- --------------------------------------------------------------------------
Cost of sales 277.3 294.3 842.2 896.9
Marketing, research, engineering
and administrative expenses 188.1 209.5 562.1 589.0
Restructuring and other - - - 110.0
- --------------------------------------------------------------------------
Total costs 465.4 503.8 1,404.3 1,595.9
- --------------------------------------------------------------------------
Profit/(loss)
from operations 51.0 65.3 134.5 15.9
Other income/(expense) 0.2 4.5 17.1 26.4
Interest expense 11.7 12.3 34.6 35.6
- --------------------------------------------------------------------------
Earnings/(loss)
before income taxes 39.5 57.5 117.0 6.7
Federal, state and foreign income
tax expense/(benefit) 13.8 23.3 40.9 4.7
- --------------------------------------------------------------------------
Earnings/(loss) before
extraordinary item 25.7 34.2 76.1 2.0
Extraordinary Item - - - (54.5)
- --------------------------------------------------------------------------
Net earnings/(loss) $25.7 $34.2 $76.1 ($52.5)
===========================================================================
Primary earnings/(loss) per common share:
Earnings/(loss) before
extraordinary item $0.55 $0.74 $1.66 $0.04
Extraordinary Item - - - ($1.20)
- --------------------------------------------------------------------------
Net earnings/(loss) $0.55 $0.74 $1.66 ($1.16)
Fully diluted earnings
per common share * $0.71 $1.65 *
- --------------------------------------------------------------------------
Cash dividends
per common share $0.15 $0.15 $0.45 $0.45
Weighted average common shares used for primary
earnings/(loss) per share calculation
(in thousands) ** 46,425 46,426 45,867 45,545
Common shares outstanding at end of period
(in thousands) 45,620 45,587 45,620 45,587
==========================================================================
* Fully diluted earnings per share are not stated because they are
greater than or equal to primary earnings per common share.
** The weighted average shares used to calculate primary earnings per
common share include the dilutive effect of stock options
outstanding.
-2-
<PAGE>
POLAROID CORPORATION AND SUBSIDIARY COMPANIES
Condensed Consolidated Balance Sheet
(In Millions)
(Unaudited)
September 28, 1997 December 31, 1996
Assets
- ------------------------------------------------------------------------------
Current assets
Cash and cash equivalents $ 57.9 $ 72.8
Short-term investments 8.8 5.5
Receivables 548.4 535.2
Inventories:
Raw materials 101.4 104.7
Work-in-process 211.7 225.3
Finished goods 255.4 218.8
- ------------------------------------------------------------------------------
Total inventories 568.5 548.8
Prepaid expenses and other assets 236.3 224.1
- ------------------------------------------------------------------------------
Total current assets 1,419.9 1,386.4
- ------------------------------------------------------------------------------
Property, plant and equipment
Gross property, plant and equipment 1,986.8 2,163.6
Less: accumulated depreciation 1,337.2 1,497.4
- ------------------------------------------------------------------------------
Net property, plant and equipment 649.6 666.2
- ------------------------------------------------------------------------------
Deferred tax assets 96.7 98.8
- ------------------------------------------------------------------------------
Other assets 63.9 50.2
- ------------------------------------------------------------------------------
Total assets $2,230.l $2,201.6
- ------------------------------------------------------------------------------
Liabilities and stockholders' equity
- ------------------------------------------------------------------------------
Current liabilities
Short-term debt $ 187.8 $ 124.9
Current portion of long-term debt - 37.7
Payables and accruals 285.2 310.5
Compensation and benefits 188.3 238.4
Federal, state and foreign income taxes 53.0 51.6
- ------------------------------------------------------------------------------
Total current liabilities 714.3 763.1
- ------------------------------------------------------------------------------
Long-term debt 496.5 489.9
- ------------------------------------------------------------------------------
Accrued postretirement benefits 247.2 248.5
Accrued postemployment benefits 42.8 41.9
- ------------------------------------------------------------------------------
Common stockholders' equity
Common stock, $l par value 75.4 75.4
Additional paid-in capital 435.5 409.4
Retained earnings 1,513.7 1,457.8
Cumulative translation adjustments (35.5) -
Less: Treasury stock, at cost 1,239.9 1,244.8
Deferred compensation 19.9 39.6
- -----------------------------------------------------------------------------
Total common stockholders' equity 729.3 658.2
- -----------------------------------------------------------------------------
Total liabilities and stockholders' equity $2,230.1 $2,201.6
============================================================================
-3-
<PAGE>
POLAROID CORPORATION AND SUBSIDIARY COMPANIES
Condensed Consolidated Statement of Cash Flows
Nine Months Ended September 28, 1997 and September 29, 1996
(In millions)
(Unaudited)
Cash flows from operating activities 1997 1996
- --------------------------------------------------------------------
Net earnings/(loss) $76.1 ($52.5)
Depreciation of property, plant
and equipment 92.1 92.5
(Increase)/decrease in receivables (107.6) 37.6
Increase in inventories (23.8) (27.2)
Increase in prepaids and other assets (21.9) (10.8)
Increase/(decrease) in payables and accruals 51.4 (5.5)
Increase/(decrease) in compensation and benefits (55.4) 3.3
Increase/(decrease) in federal, state
and foreign income taxes payable 16.4 (0.8)
Gain on sale of real estate (19.5) (23.2)
Contribution of real estate 19.1 -
Other non cash items 22.5 80.3
- --------------------------------------------------------------------
Net cash provided by operating activities 49.4 93.7
- --------------------------------------------------------------------
Cash flows from investing activities
- --------------------------------------------------------------------
(Increase)/decrease in short-term investments (3.3) 4.4
Increase in other assets (13.7) -
Additions to property, plant and equipment (89.8) (81.1)
Proceeds from sale of real estate 7.6 35.4
Proceeds from sale of fixed assets 0.1 -
- --------------------------------------------------------------------
Net cash used by investing activities (99.1) (41.3)
- --------------------------------------------------------------------
Cash flows from financing activities
- --------------------------------------------------------------------
Net increase/(decrease) in short-term
debt (maturities 90 days or less) 69.0 (30.4)
Short-term debt having maturities
more than 90 days
Proceeds 29.5 -
Payments (33.0) -
Proceeds from issuances of long-term debt 296.5 -
Repayments of long-term debt (327.8) (19.6)
Cash dividends paid (20.3) (20.5)
Stock options exercised 30.9 8.4
Purchase of treasury stock (6.9) (10.4)
- ---------------------------------------------------------------------
Net cash provided/(used) by financing activities 37.9 (72.5)
- ---------------------------------------------------------------------
Effect of exchange rate changes on cash (3.1) (2.8)
- ---------------------------------------------------------------------
Net decrease in cash and cash equivalents (14.9) (22.9)
- ---------------------------------------------------------------------
Cash and equivalents at beginning of period 72.8 73.3
- ---------------------------------------------------------------------
Cash and cash equivalents at end of period $57.9 $50.4
====================================================================
-4-
<PAGE>
POLAROID CORPORATION AND SUBSIDIARY COMPANIES
Condensed Consolidated Statement of Changes in Common Stockholders' Equity
Periods Ended September 28, 1997 and September 29, 1996
(In Millions)
(Unaudited)
Third Quarter Nine Months
1997 1996 1997 1996
---- ---- ---- ----
Common stock
Balance at the beginning of the period $75.4 $75.4 $75.4 $75.4
Balance at the end of the period 75.4 75.4 75.4 75.4
- ---------------------------------------------------------------------------
Additional paid-in capital
Balance at the beginning of the period 423.1 407.6 409.4 401.9
Stock options exercised - tax benefit 3.4 0.1 6.9 1.2
Issuance of shares in connection
with stock incentive plan 9.0 0.7 19.2 5.3
Balance at the end of the period 435.5 408.4 435.5 408.4
- ---------------------------------------------------------------------------
Retained earnings
Balance at the beginning of
the period 1,494.8 1,425.6 1,457.8 1,525.8
Net earnings/(loss) 25.7 34.2 76.1 (52.5)
Dividends declared - common stock (6.8) (6.8) (20.3) (20.5)
ESOP dividend tax benefit received - 0.1 0.1 0.3
Balance at the end of the period 1,513.7 1,453.1 1,513.7 1,453.1
- ---------------------------------------------------------------------------
Cumulative translation adjustment
Balance at the beginning of the period (28.1) - - -
Currency translation adjustment (7.4) - (35.5) -
Balance at the end of the period (35.5) - (35.5) -
- ---------------------------------------------------------------------------
Less:
Treasury stock
Balance at the beginning
of the period 1,243.3 1,212.6 1,244.8 1,205.4
Repurchase of common shares 1.5 - 6.9 10.4
Issuance of shares in connection
with stock incentive plan (4.9) (0.5) (11.8) (3.7)
Balance at the end of the period 1,239.9 1,212.1 1,239.9 1,212.1
- ---------------------------------------------------------------------------
Deferred compensation
Balance at the
beginning of the period 19.9 60.6 39.6 80.0
Stock options - 1993 - (0.2) (0.6) (0.7)
Restricted stock - (0.1) (0.2) 0.4
ESOP Trust - - ( 18.9) (19.4)
Balance at the end of the period 19.9 60.3 19.9 60.3
- ---------------------------------------------------------------------------
Total common stockholders' equity $729.3 $664.5 $729.3 $664.5
===========================================================================
-5-
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this amendment to be signed on its behalf
by the undersigned thereunto duly authorized.
POLAROID CORPORATION
---------------------------------
(Registrant)
November 24, 1997 /s/ William J. O'Neill, Jr.
---------------------------------
William J. O'Neill, Jr.
Executive Vice President and
Chief Financial Officer
