SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 for the fiscal quarter ended May
2, 1998.
FEDERATED DEPARTMENT STORES, INC.
151 West 34th Street
New York, New York 10001
(212) 494-1602
and
7 West Seventh St.
Cincinnati, Ohio 45202
(513) 579-7000
Delaware 1-13536 13-3324058
(State of (Commission File No.) (I.R.S. Employer
Incorporation) Identification Number)
The Registrant has filed all reports required to be filed by
Section 12, 13 or 15 (d) of the Act during the preceding 12
months and has been subject to such filing requirements for the
past 90 days.
210,864,697 shares of the Registrant's Common Stock, $.01 par
value, were outstanding as of May 30, 1998.
PART I -- FINANCIAL INFORMATION
FEDERATED DEPARTMENT STORES, INC.
Consolidated Statements of Income
(Unaudited)
(millions, except per share figures)
13 Weeks Ended 13 Weeks Ended
May 2, 1998 May 3, 1997
Net Sales $ 3,456 $ 3,409
Cost of sales 2,106 2,087
Selling, general and
administrative expenses 1,169 1,174
Operating Income 181 148
Interest expense (83) (115)
Interest income 6 11
Income Before Income Taxes 104 44
Federal, state and local
income tax expense (44) (20)
Net Income $ 60 $ 24
Basic earnings per share $ .29 $ .12
Diluted earnings per share $ .27 $ .11
The accompanying notes are an integral part of these unaudited
Consolidated Financial Statements.
FEDERATED DEPARTMENT STORES, INC.
Consolidated Balance Sheets
(Unaudited)
(millions)
May 2, January 31, May 3,
1998 1998 1997
ASSETS:
Current Assets:
Cash $ 179 $ 142 $ 153
Accounts receivable 2,446 2,640 2,661
Merchandise inventories 3,336 3,239 3,385
Supplies and prepaid expenses 105 115 98
Deferred income tax assets 62 58 88
Total Current Assets 6,128 6,194 6,385
Property and Equipment - net 6,422 6,520 6,420
Intangible Assets - net 684 690 711
Other Assets 319 334 584
Total Assets $13,553 $13,738 $14,100
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current Liabilities:
Short-term debt $ 357 $ 556 $ 1,060
Accounts payable and accrued
liabilities 2,375 2,416 2,414
Income taxes 24 88 16
Total Current Liabilities 2,756 3,060 3,490
Long-Term Debt 3,920 3,919 4,514
Deferred Income Taxes 975 939 831
Other Liabilities 557 564 562
Shareholders' Equity 5,345 5,256 4,703
Total Liabilities and
Shareholders' Equity $13,553 $13,738 $14,100
The accompanying notes are an integral part of these unaudited
Consolidated Financial Statements.
FEDERATED DEPARTMENT STORES, INC.
Consolidated Statements of Cash Flows
(Unaudited)
(millions)
13 Weeks Ended 13 Weeks Ended
May 2, 1998 May 3, 1997
Cash flows from operating activities:
Net income $ 60 $ 24
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization of property
and equipment 149 139
Amortization of intangible assets 6 7
Amortization of financing costs 2 7
Changes in assets and liabilities:
Decrease in accounts receivable 194 173
Increase in merchandise inventories (97) (139)
Decrease in supplies and prepaid expenses 10 11
(Increase) decrease in other assets not
separately identified 4 (8)
Decrease in accounts payable and accrued
liabilities not separately identified
(116) (120)
Increase (decrease) in current
income taxes (64) 7
Increase in deferred income taxes 32 -
Decrease in other liabilities not
separately identified (6) -
Net cash provided by operating
activities 174 101
Cash flows from investing activities:
Purchase of property and equipment (51) (50)
Disposition of property and equipment 16 28
Net cash used by investing activities (35) (22)
Cash flows from financing activities:
Debt issued 300 -
Financing costs (7) -
Debt repaid (499) (127)
Increase in outstanding checks 75 43
Acquisition of treasury stock - (2)
Issuance of common stock 29 11
Net cash used by financing activities (102) (75)
(Continued)
FEDERATED DEPARTMENT STORES, INC.
Consolidated Statements of Cash Flows
(Unaudited)
(millions)
13 Weeks Ended 13 Weeks Ended
May 2, 1998 May 3, 1997
Net increase in cash 37 4
Cash at beginning of period 142 149
Cash at end of period $ 179 $ 153
Supplemental cash flow information:
Interest paid $ 80 $ 113
Interest received 6 11
Income taxes paid (net of refunds received) 68 9
The accompanying notes are an integral part of these unaudited
Consolidated Financial Statements.
FEDERATED DEPARTMENT STORES, INC.
Notes to Consolidated Financial Statements
(Unaudited)
1. Summary of Significant Accounting Policies
A description of the Company's significant accounting policies
is included in the Company's Annual Report on Form 10-K for
the fiscal year ended January 31, 1998 (the "1997 10-K"). The
accompanying Consolidated Financial Statements should be read
in conjunction with the Consolidated Financial Statements and
notes thereto in the 1997 10-K.
Because of the seasonal nature of the general merchandising
business, the results of operations for the 13 weeks ended
May 2, 1998 and May 3, 1997 (which do not include the
Christmas season) are not indicative of such results for the
fiscal year.
The Consolidated Financial Statements for the 13 weeks ended
May 2, 1998 and May 3, 1997, in the opinion of management,
include all adjustments (consisting only of normal recurring
adjustments) considered necessary to present fairly, in all
material respects, the consolidated financial position and
results of operations of the Company and its subsidiaries.
During the first quarter of 1998, the Company adopted
Statement of Financial Accounting Standards No. 130,
"Reporting Comprehensive Income," which establishes standards
for the reporting and display of comprehensive income and its
components. For all periods presented, comprehensive income
is equivalent to net income.
FEDERATED DEPARTMENT STORES, INC.
Notes to Consolidated Financial Statements
(Unaudited)
2. Earnings Per Share
The following table sets forth the computation of basic and
diluted earnings per share:
<TABLE>
<CAPTION>
13 Weeks Ended
May 2, 1998 May 3, 1997
(millions, except per share data) Shares Income Shares Income
<S> <C> <C> <C> <C> <C> <C>
Net income and average number of
shares outstanding 210.4 $ 60 208.2 $ 24
Shares to be issued under
deferred compensation plan .3 - .3 -
210.7 $ 60 208.5 $ 24
Basic earnings per share $ .29 $ .12
Effect of dilutive securities:
Warrants 8.1 3.5
Stock options 2.6 1.6
Convertible notes 10.2 3 - -
231.6 $ 63 213.6 $ 24
Diluted earnings per share $ .27 $ .11
</TABLE>
In addition to the warrants and stock options reflected in the
foregoing table, warrants and stock options to purchase 4.5
million and .6 million shares of common stock at prices
ranging from $34.63 to $79.44 per share were outstanding at
May 2, 1998 and May 3, 1997, respectively, but were not
included in the computation of diluted earnings per share
because the exercise price thereof exceeded the average market
price and would have been antidilutive. Additionally, at May
31, 1997, the assumed conversion of the convertible notes
would have an antidilutive effect on diluted earnings per
share and was therefore excluded from the computation.
FEDERATED DEPARTMENT STORES, INC.
Management's Discussion and Analysis
of Financial Condition and Results of Operations
For purposes of the following discussion, all references to
"first quarter of 1998" and "first quarter of 1997" are to the
Company's 13-week fiscal periods ended May 2, 1998 and May 3,
1997, respectively.
Results of Operations
Comparison of the 13 Weeks Ended May 2, 1998 and May 3, 1997
Net sales for the first quarter of 1998 totaled $3,456
million, compared to net sales of $3,409 million for the first
quarter of 1997, an increase of 1.4%. Since January 31,
1997, the Company has opened six new department stores and two
new furniture galleries, closed nineteen stores, and
eliminated certain consumer electronics lines of business. On
a comparable store basis, sales for the first quarter of 1998
increased 2.4% over the first quarter of 1997.
Cost of sales was 61.0% of net sales for the first quarter of
1998, compared to 61.2% for the first quarter of 1997. The
improvement in cost of sales as a percent of net sales is due
to the elimination, in fiscal 1997, of certain lower-margin
consumer electronics lines of business.
Selling, general and administrative ("SG&A") expenses were
33.8% of net sales for the first quarter of 1998 compared to
34.5% for the first quarter of 1997. The major factor
contributing to the improvement in the SG&A expense rate for
the first quarter of 1998 was lower distribution-related
expenses resulting from restructuring and technological
enhancements within the merchandise distribution process.
Net interest expense was $77 million for the first quarter of
1998, compared to $104 million for the first quarter of 1997.
The lower interest expense for the first quarter of 1998 is
due to lower levels of borrowings and lower interest rates
resulting from refinancings completed in July 1997.
The Company's effective income tax rate of 42.2% for the first
quarter of 1998 differs from the federal income tax statutory
rate of 35.0% principally because of the effect of state and
local income taxes and permanent differences arising from the
amortization of intangible assets.
Liquidity and Capital Resources
The Company's principal sources of liquidity are cash from
operations, cash on hand and certain available credit
facilities.
Net cash provided by operating activities in the first quarter
of 1998 was $174 million, an increase of $73 million from the
net cash provided by operating activities in the first quarter
of 1997. The major factors contributing to this improvement
were improved operating results and greater reductions in
customer accounts receivable.
FEDERATED DEPARTMENT STORES, INC.
Management's Discussion and Analysis
of Financial Condition and Results of Operations (Continued)
Net cash used by investing activities was $35 million for the
first quarter of 1998, with purchases of property and
equipment totaling $51 million and dispositions of property
and equipment totaling $16 million. On May 13, 1998, the
Company announced that it had signed a letter of intent for
the sale of its specialty store division to the division's
management group. The sale, if consummated, will not have a
material impact on the Company's financial position or results
of operations.
Net cash used by the Company for all financing activities was
$102 million for the first quarter of 1998. During the first
quarter of 1998, the Company issued $300 million of 7.0%
Senior Debentures due 2028. The proceeds were used to
refinance short-term borrowings.
On May 4, 1998, the final $200 million installment of a note
receivable was received and the remaining $176 million of
borrowings under a note monetization facility were repaid.
Such amounts were included in accounts receivable and short-
term debt, respectively, as of May 2, 1998.
Management believes the department store business will
continue to consolidate. Accordingly, the Company intends
from time to time to consider additional acquisitions of
department store assets and companies.
On May 19, 1998, the Company announced its intention to
repurchase as much as $500 million of its common stock. The
company may repurchase shares from time to time in the open
market or through privately negotiated transactions, depending
on prevailing market conditions, alternative uses of capital
and other factors. Any such purchases may be discontinued or
resumed at any time.
Management of the Company believes that, with respect to its
current operations, cash on hand and funds from operations,
together with its credit facilities, will be sufficient to
cover its reasonably foreseeable working capital, capital
expenditure and debt service requirements. Acquisition
transactions, if any, are expected to be financed through a
combination of cash on hand and from operations and the
possible issuance from time to time of long-term debt or other
securities. Depending upon conditions in the capital markets
and other factors, the Company will from time to time consider
the issuance of debt or other securities, or other possible
capital markets transactions, the proceeds of which could be
used to refinance current indebtedness or for other corporate
purposes.
PART II -- OTHER INFORMATION
FEDERATED DEPARTMENT STORES, INC.
Item 4. Submission of Matters to a Vote of Security Holders
The Annual Meeting of the Company's stockholders was
held on May 15, 1998. The Company's stockholders voted
on the following items at such meeting:
i. The stockholders approved the election of four Directors for
a three-year term expiring at the 2001 Annual Meeting of the
Company's stockholders. The votes for such elections were as
follows: Sara Levinson - 170,724,942 votes in favor and
39,880,219 votes withheld; Joseph Neubauer - 170,724,509 votes in
favor and 39,880,652 votes withheld; Joseph A. Pichler -
170,723,466 votes in favor and 39,881,695 votes withheld; and
Karl M. von der Heyden - 170,726,641 votes in favor and
39,878,520 votes withheld. There were no broker non-votes on
this item.
ii. The stockholders ratified the employment of KPMG Peat
Marwick LLP as the Company's independent accountants for the
fiscal year ending January 30, 1999. The votes for the
ratification were 172,303,425, the votes against the ratification
were 250,276, the votes abstained were 128,028, and there were no
broker non-votes.
iii.The stockholders approved a shareholder proposal
recommending that the Board of Directors of the Company take the
necessary steps to instate the election of directors annually,
instead of the stagger system. The votes for such proposal were
124,042,892, the votes against the proposal were 22,544,497, the
votes abstained were 13,780,956, and there were 12,313,384 broker
non-votes.
Item 5. Other Information
This report and other reports, statements and
information previously or subsequently filed by the
Company with the Securities and Exchange Commission
(the "SEC") contain or may contain forward-looking
statements. Such statements are based upon the beliefs
and assumptions of, and on information available to,
the management of the Company at the time such
statements are made. The following are or may
constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act
of 1995: (i) statements preceded by, followed by or
that include the words "may," "will," "could,"
"should," "believe," "expect," "future," "potential,"
"anticipate," "intend," "plan," "estimate," or
"continue" or the negative or other variations thereof
and (ii) statements regarding matters that are not
historical facts. Such forward-looking statements are
subject to various risks and uncertainties, including
(i) risks and uncertainties relating to the possible
invalidity of the underlying beliefs and assumptions,
(ii) possible changes or developments in social,
economic, business, industry, market, legal and
regulatory circumstances and conditions, and (iii)
actions
PART II -- OTHER INFORMATION
FEDERATED DEPARTMENT STORES, INC. (continued)
taken or omitted to be taken by third parties,
including customers, suppliers, business partners,
competitors and legislative, regulatory, judicial and
other governmental authorities and officials. In
addition to any risks and uncertainties specifically
identified in the text surrounding such forward-looking
statements, the statements in the immediately preceding
sentence and the statements under captions such as
"Risk Factors" and "Special Considerations" in reports,
statements and information filed by the Company with
the SEC from time to time constitute cautionary
statements identifying important factors that could
cause actual amounts, results, events and circumstances
to differ materially from those reflected in such
forward-looking statements.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27.1 Financial Data Schedule
27.2 Restated Financial Data Schedules
27.3 Restated Financial Data Schedules
(b) Reports on Form 8-K
No reports were filed on Form 8-K during the quarter
ended May 2, 1998.
FEDERATED DEPARTMENT STORES, INC.
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 thereunder duly authorized.
FEDERATED DEPARTMENT STORES, INC.
Date June 16, 1998
/s/ Dennis J. Broderick
Dennis J. Broderick
Senior Vice President, General Counsel
and Secretary
/s/ Joel A. Belsky
Joel A. Belsky
Vice President and Controller
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-30-1999
<PERIOD-START> FEB-01-1998
<PERIOD-END> MAY-02-1998
<CASH> 179
<SECURITIES> 0
<RECEIVABLES> 2,446
<ALLOWANCES> 0
<INVENTORY> 3,336
<CURRENT-ASSETS> 6,128<F1>
<PP&E> 6,422
<DEPRECIATION> 0
<TOTAL-ASSETS> 13,553<F2>
<CURRENT-LIABILITIES> 2,756
<BONDS> 3,920
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 13,553<F3>
<SALES> 3,456
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 2,106
<OTHER-EXPENSES> 1,169
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 83
<INCOME-PRETAX> 104<F4>
<INCOME-TAX> 44
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 60
<EPS-PRIMARY> 0.29
<EPS-DILUTED> 0.27
<FN>
<F1>Includes the following:
Supplies and prepaid expenses 105
Deferred income tax assets 62
<F2>Includes the following:
Intangible assets - net 684
Other assets 319
<F3>Includes the following:
Deferred income taxes 975
Other liabilities 557
Shareholders' Equity 5,345
<F4>Includes the following:
Interest Income 6
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<RESTATED>
<MULTIPLIER> 1,000
<S> <C> <C> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS 3-MOS YEAR
<FISCAL-YEAR-END> JAN-31-1998 JAN-31-1998 JAN-31-1998 FEB-01-1997
<PERIOD-START> FEB-02-1997 MAY-04-1997 AUG-03-1997 FEB-04-1996
<PERIOD-END> MAY-03-1997 AUG-02-1997 NOV-01-1997 FEB-01-1997
<CASH> 152,582 317,352 431,156 148,794
<SECURITIES> 0 0 0 0
<RECEIVABLES> 2,661,052 2,498,148 2,513,143 2,834,321
<ALLOWANCES> 0 0 0 0
<INVENTORY> 3,384,883 3,371,584 4,287,328 3,245,996
<CURRENT-ASSETS> 6,385,377<F1> 6,422,054<F6> 7,467,419<F10> 6,427,302<F14>
<PP&E> 6,419,547 6,371,055 6,423,168 6,524,757
<DEPRECIATION> 0 0 0 0
<TOTAL-ASSETS> 14,100,050<F2> 13,874,132<F7> 14,931,541<F11> 14,264,143<F15>
<CURRENT-LIABILITIES> 3,489,364 3,991,260 4,975,422 3,595,699
<BONDS> 4,514,247 3,732,269 3,682,499 4,605,916
0 0 0 0
0 0 0 0
<COMMON> 0 0 0 0
<OTHER-SE> 0 0 0 0
<TOTAL-LIABILITY-AND-EQUITY> 14,100,050<F3> 13,874,132<F8> 14,931,541<F12> 14,264,143<F16>
<SALES> 3,409,091 3,452,829 3,746,276 15,228,999
<TOTAL-REVENUES> 0 0 0 0
<CGS> 0 0 0 0
<TOTAL-COSTS> 2,086,865 2,098,671 2,286,919 9,354,367
<OTHER-EXPENSES> 1,174,166 1,142,298 1,191,396 4,981,433
<LOSS-PROVISION> 0 0 0 0
<INTEREST-EXPENSE> 114,725 106,358 100,957 498,616
<INCOME-PRETAX> 43,683<F4> 112,597<F9> 176,083<F13> 441,435<F17>
<INCOME-TAX> 19,624 46,227 70,969 175,571
<INCOME-CONTINUING> 0 0 0 0
<DISCONTINUED> 0 0 0 0
<EXTRAORDINARY> 0 38,673 0 0
<CHANGES> 0 0 0 0
<NET-INCOME> 24,059 27,697 105,114 265,864
<EPS-PRIMARY> 0.12<F5> 0.13<F5> 0.50<F5> 1.28<F5>
<EPS-DILUTED> 0.11<F5> 0.13<F5> 0.47<F5> 1.24<F5>
<FN>
<F1>Includes the following:
Supplies and prepaid expenses 98,193
Deferred income tax assets 88,667
<F2>Includes the following:
Intangible assets - net 710,583
Notes receivable 204,248
Other assets 380,295
<F3>Includes the following:
Deferred income taxes 831,207
Other liabilities 561,907
Shareholders' Equity 4,703,325
<F4>Includes the following:
Interest income 10,348
<F5>Restated to reflect the Company's adoption of Statement of Financial
Accounting Standards No. 128, "Earnings Per Share."
<F6>Includes the following:
Supplies and prepaid expenses 128,981
Deferred income tax assets 105,989
<F7>Includes the following:
Intangible assets - net 703,761
Notes receivable 3,976
Other assets 373,286
<F8>Includes the following:
Deferred income taxes 835,725
Other liabilities 559,001
Shareholders' Equity 4,755,877
<F9>Includes the following:
Interest income 7,095
<F10>Includes the following:
Supplies and prepaid expenses 119,685
Deferred income tax assets 116,107
<F11>Includes the following:
Intangible assets - net 696,940
Notes receivable 6,923
Other assets 337,091
<F12>Includes the following:
Deferred income taxes 842,048
Other liabilities 560,247
Shareholders' Equity 4,871,325
<F13>Includes the following:
Interest income 9,079
<F14>Includes the following:
Supplies and prepaid expenses 109,678
Deferred income tax assets 88,513
<F15>Includes the following:
Intangible assets - net 717,404
Notes receivable 204,400
Other assets 390,280
<F16>Includes the following:
Deferred income taxes 830,943
Other liabilities 562,431
Shareholders' Equity 4,669,154
<F17>Includes the following:
Interest income 46,852
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<RESTATED>
<MULTIPLIER> 1,000
<S> <C> <C> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS 3-MOS YEAR
<FISCAL-YEAR-END> FEB-01-1997 FEB-01-1997 FEB-01-1997 FEB-03-1996
<PERIOD-START> FEB-04-1996 MAY-05-1996 AUG-04-1996 JAN-29-1995
<PERIOD-END> MAY-04-1996 AUG-03-1996 NOV-02-1996 FEB-03-1996
<CASH> 195,473 134,133 152,596 172,518
<SECURITIES> 0 0 0 0
<RECEIVABLES> 2,944,595 2,768,417 2,821,833 2,842,077
<ALLOWANCES> 0 0 0 0
<INVENTORY> 3,204,023 3,234,271 4,170,860 3,094,848
<CURRENT-ASSETS> 6,592,448<F1> 6,429,091<F6> 7,405,704<F10> 6,360,365<F14>
<PP&E> 6,231,782 6,270,870 6,384,812 6,305,167
<DEPRECIATION> 0 0 0 0
<TOTAL-ASSETS> 14,150,735<F2> 14,032,369<F7> 15,096,694<F11> 14,295,050<F15>
<CURRENT-LIABILITIES> 2,742,415 2,765,143 3,803,994 3,098,069
<BONDS> 5,768,933 5,644,524 5,624,065 5,632,232
0 0 0 0
0 0 0 0
<COMMON> 0 0 0 0
<OTHER-SE> 0 0 0 0
<TOTAL-LIABILITY-AND-EQUITY> 14,150,735<F3> 14,032,369<F8> 15,096,694<F12> 14,295,050<F16>
<SALES> 3,300,665 3,284,228 3,609,148 15,048,513
<TOTAL-REVENUES> 0 0 0 0
<CGS> 0 0 0 0
<TOTAL-COSTS> 2,014,648 1,995,573 2,189,903 9,317,784
<OTHER-EXPENSES> 1,230,753 1,212,901 1,231,933 5,067,842
<LOSS-PROVISION> 0 0 0 0
<INTEREST-EXPENSE> 123,345 126,996 124,510 508,132
<INCOME-PRETAX> (57,017)<F4> (39,860)<F9> 73,951<F13> 201,859<F17>
<INCOME-TAX> (19,071) (12,667) 32,150 127,306
<INCOME-CONTINUING> 0 0 0 0
<DISCONTINUED> 0 0 0 0
<EXTRAORDINARY> 0 0 0 0
<CHANGES> 0 0 0 0
<NET-INCOME> (37,946) (27,193) 41,801 74,553
<EPS-PRIMARY> (0.18)<F5> (0.13)<F5> 0.20<F5> 0.39<F5>
<EPS-DILUTED> (0.18)<F5> (0.13)<F5> 0.20<F5> 0.39<F5>
<FN>
<F1>Inclues the following:
Supplies and prepaid expenses 150,566
Deferred income tax assets 97,791
<F2>Includes the following:
Intangible assets - net 737,868
Notes receivable 210,758
Other assets 377,879
<F3>Includes the following:
Deferred income taxes 731,200
Other liabilities 556,671
Shareholders' Equity 4,351,516
<F4>Includes the following:
Interest income 11,064
<F5>Restated to reflect the Company's adoption of Statement of Financial
Accounting Standards No. 128, "Earnings Per Share."
<F6>Includes the following:
Supplies and prepaid expenses 176,729
Deferred income tax assets 115,541
<F7>Includes the following:
Intangible assets - net 731,047
Notes receivable 204,035
Other assets 397,326
<F8>Includes the following:
Deferred income taxes 730,725
Other liabilities 561,847
Shareholders' Equity 4,330,130
<F9>Includes the following:
Interest income 11,382
<F10>Includes the following:
Supplies and prepaid expenses 169,532
Deferred income tax assets 90,883
<F11>Includes the following:
Intangible assets - net 724,225
Notes receivable 204,997
Other assets 376,956
<F12>Includes the following:
Deferred income taxes 727,772
Other liabilities 564,606
Shareholders' Equity 4,376,257
<F13>Includes the following:
Interest income 11,150
<F14>Includes the following:
Supplies and prepaid expenses 176,411
Deferred income tax assets 74,511
<F15>Includes the following:
Intangible assets - net 744,869
Notes receivable 415,066
Other assets 469,763
<F16>Includes the following:
Deferred income taxes 732,936
Other liabilities 558,127
Shareholders' Equity 4,273,686
<F17>Includes the following:
Interest income 47,104
</FN>
</TABLE>
