Getting to Know The Numbers

1. Income Statement
2. Balance Sheet
3. Cash Flow Statement

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Income Statement

The Selected Income Statement Items shows key data from the company's income statement for the last three fiscal years, the year-to-date period and the same year-to-date period a year earlier.

SELECTED INCOME STATEMENT ITEMS
ANNUAL YEAR TO DATE
12 MONTHS
ENDING
12/31/95		 12 MONTHS
ENDING
12/31/96		 12 MONTHS
ENDING
12/31/97		 9 MONTHS
ENDING
09/30/97		 9 MONTHS
ENDING
09/30/98
Revenue 9,794,500 10,686,500 11,408,800 8,456,200 9,200,700
Operating Expenses 7,193,200 8,053,900 8,600,500 6,343,100 7,076,000
   Operating Income 2,601,300 2,632,600 2,808,300 2,113,100 2,124,700
Non-Operating Income -92,000 -39,100 -36,600 -24,900 -21,400
Non-Operating Expenses -340,200 -342,500 -364,400 -270,300 -312,000
   Income Before Taxes 2,169,100 2,251,000 2,407,300 1,817,900 1,791,300
Income Taxes 741,800 678,400 764,800 586,300 589,700
   Income After Taxes 1,427,300 1,572,600 1,642,500 1,231,600 1,201,600
Adjustments to Income -40,500 -27,600 -25,300 -20,700 0
   Inc. for Primary EPS 1,386,800 1,545,000 1,617,200 1,210,900 1,201,600
   Pri/Bas EPS Ex. XOrd 0.988 1.106 1.173 0.878 0.878
Disc Opns + Xord Items 0 0 0 0 0
   Pri/Bas EPS In. XOrd 0.988 1.106 1.173 0.878 0.878
Primary/Basic Avg Sh 1,403,000.00 1,396,400.00 1,378,600.00 1,379,866.67 1,369,066.67
Common Dividends/Shr 0.130 0.145 0.160 0.120 0.536
   Dilutd EPS Excl XOrd 0.958 1.078 1.147 0.858 0.853
   Dilutd EPS Incl XOrd 0.958 1.078 1.147 0.858 0.853
Note: Units in Thousands of U.S. Dollars except for per share items.

Among the important things you should consider is whether revenues are increasing. And it is desirable to see earnings increasing faster than revenues. The Selected Income Statement provides an opportunity to focus on operating versus non-operating factors contributing to earnings.

Look for operating expense increases below the rate of revenue growth, and less contribution to income before taxes from non-operating sources.

At the bottom is earnings per share excluding extraordinary items, which is the earnings per share that you see referenced elsewhere in this report. The extraordinary items could be a discontinued operation, a restatement due to a change in an accounting policy or some other factor that doesn't appropriately reflect the ongoing operations of the company. If there are any discontinued operations or extraordinary items, you will see them listed and the resulting earnings per share that includes these items.

Also focus on diluted earnings per share. If the company has stock options, warrants, rights, and/or convertible securities outstanding, the dilution caused by the additional common shares represented are reflected in diluted earnings per share. Diluted earnings per share comparisons over time eliminate the variability caused by option and warrant exercises and convertible security conversions. As options, warrants, rights, and convertible securities are converted into common stock, the difference between primary and fully diluted EPS diminishes.

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