Results of Operations -
Other Operations
 

Earnings before interest and taxes for Crescent Resources increased 11% in 1997 over 1996. The increase is primarily due to gains associated with bulk land sales in 1997. In 1996, earnings before interest and taxes for Crescent Resources increased 37% over 1995 resulting from increased developed lot sales as well as bulk land sales.

 

Earnings before interest and taxes for Other Operations, excluding Crescent Resources, declined $81.8 million in 1997 as compared to 1996. Contributing to the decrease were merger related expenses of $71.2 million in 1997, compared to 1996 merger expenses of $13.9 million, and the 1997 amortization of goodwill associated with the purchase of the remaining 50% ownership interest of the D/LD joint venture. This decline was partially offset by the sale of the Corporation’s ownership interest in the Midland Cogeneration Venture in 1997.

 

In 1996, earnings before interest and taxes for Other Operations, excluding Crescent Resources, decreased $42 million as compared to 1995 primarily as a result of 1996 expenses related to the merger and losses related to the start-up activities of a wireless communications joint venture.

 
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