Note 2: Investments

The company's investments in its affiliates (20-50%-owned) totaled $150 million and $81 million at December 31, 1997, and 1996, respectively. The increase from 1996 relates primarily to a 26% investment in Rodel, Inc. (see Note 1). This 1997 investment resulted in the company's total investments in affiliates exceeding the equity in the underlying net assets by approximately $41 million at December 31, 1997, which is being amortized to earnings on a straight-line basis over the estimated life of the investment. At December 31, 1996, the company's equity in net assets of affiliates exceeded the amount of investments in affiliates by about $7 million primarily due to the company's interest in the AtoHaas affiliates.

Return to Financial Table of Contents