Consolidated Statements of Operations

Years Ended December 31,

In millions, except per share amounts 1997 1996 1995

Net sales $12,738.2 $10,944.8 $9,763.4
Cost of goods sold, buying and warehousing costs 9,298.5 7,892.7 7,016.5

Gross margin 3,439.7 3,052.1 2,746.9
Selling, general and administrative expenses 2,575.4 2,309.7 2,180.3
Depreciation and amortization 221.8 188.8 170.4
Merger, restructuring and other non-recurring charges 442.7 12.8 165.5

Total operating expenses 3,239.9 2,511.3 2,516.2

Operating profit 199.8 540.8 230.7
Gain on sale of securities -- 121.4 --
Dividend income -- 5.6 --
Interest expense, net (44.8) (75.7) (114.5)

Other (expense) income, net (44.8) 51.3 (114.5)

Earnings from continuing operations before income taxes and extraordinary item 155.0 592.1 116.2
Income tax provision (117.7) (251.3) (58.4)

Earnings from continuing operations before extraordinary        item 37.3 340.8 57.8
Discontinued operations:
Loss from operations, net of tax benefit of $31.0 and
      $171.4 in 1996 and 1995, respectively
-- (54.8) (607.4)
Loss on disposal, net of tax (provision) benefit of $(12.4),        $56.2 and $9.9 in 1997, 1996 and 1995, respectively        and minority interest of $22.2 and $38.4 in 1996 and         1995, respectively  

17.5

 

(109.4)

 

(23.2)


Earnings (loss) from discontinued operations 17.5 (164.2) (630.6)

Earnings (loss) before extraordinary item 54.8 176.6 (572.8)
Extraordinary item, loss related to early retirement of debt,        net of income tax benefit of $11.4  

(17.1)

 

--

 

--


Net earnings (loss) 37.7 176.6 (572.8)
Preference dividends, net of tax benefit (13.7) (14.5) (17.0)

Net earnings (loss) available to common shareholders $ 24.0 $ 162.1 $ (589.8)

Basic earnings (loss) per common share:
Earnings from continuing operations before extraordinary        item $ 0.14 $ 1.97 $ 0.25
Earnings (loss) from discontinued operations 0.10 (0.99) (3.85)
Extraordinary item, net of tax benefit (0.10) -- --

Net earnings (loss) $ 0.14 $ 0.98 $ (3.60)

Weighted average common shares outstanding 169.8 165.3 163.7

Diluted earnings (loss) per common share:
Earnings from continuing operations before extraordinary        item $ 0.14 $ 1.92 $ 0.25
Earnings (loss) from discontinued operations 0.10 (0.94) (3.84)
Extraordinary item, net of tax benefit (0.10) -- --

Net earnings (loss) $ 0.14 $ 0.98 $ (3.59)

Weighted average common shares outstanding 173.0 173.2 164.3

Dividends per common share $ 0.44 $ 0.44 $ 1.52

See accompanying notes to consolidated financial statements.

 

Please note that the 1997 Annual Report Financial Statements do not include
Arbor Drugs, Inc., which was subsequently acquired on March 31, 1998.



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