Consolidated Statements of Shareholders' Equity

Years Ended December 31,

Shares Dollars


In millions 1997 1996 1995 1997 1996 1995

Preference stock:
Beginning of year 5.6 6.3 6.4 $ 298.6 $ 334.9 $ 340.9
Conversion to common stock (0.3) (0.7) (0.1) (14.0) (36.3) (6.0)

End of year 5.3 5.6 6.3 284.6 298.6 334.9

Common stock:
Beginning of year 172.2 170.8 170.3 1.7 170.8 170.3
Stock options exercised and
     awards under stock plans 5.4 1.7 0.4 0.1 1.7 0.4
Effect of change in par value -- -- -- -- (170.5) --
Other 0.4 (0.3) 0.1 -- (0.3) 0.1

End of year 178.0 172.2 170.8 1.8 1.7 170.8

Treasury stock:
Beginning of year (5.8) (6.5) (5.8) (273.1) (304.6) (283.8)
Repurchase of common stock -- -- (0.8) -- -- (26.3)
Conversion of preference stock 0.3 0.7 0.1 12.2 31.6 5.5
Other (0.1) -- -- (2.0) (0.1) --

End of year (5.6) (5.8) (6.5) (262.9) (273.1) (304.6)

Guaranteed ESOP obligation:
Beginning of year (292.1) (309.7) (328.1)
Reduction of guaranteed ESOP
      obligation
-- 17.6 18.4

End of year (292.1) (292.1) (309.7)

Capital surplus:
Beginning of year 875.9 668.2 656.5
Conversion of preference stock 1.8 4.7 0.5
Stock options exercised and awards
      under stock plans
186.2 41.9 8.3
Effect of change in par value -- 170.5 --
Other 15.1 (9.4) 2.9

End of year 1,079.0 875.9 668.2

Retained earnings:
Beginning of year 1,587.8 1,833.0 2,582.7
Net earnings (loss) 37.7 176.6 (572.8)
Dividends:
Preference stock, net of tax benefit (13.7) (14.4) (16.9)
Redeemable preferred stock -- (0.1) (0.1)
Common stock (60.8) (46.5) (159.9)
Footstar Distribution -- (360.8) --

End of year 1,551.0 1,587.8 1,833.0

Other:
Beginning of year (2.4) 0.2 (1.4)
Cumulative translation adjustment -- (0.2) 1.6
Unrealized holding gain (loss) on
     investments, net
2.4 (2.4) --

End of year -- (2.4) 0.2

Total shareholders' equity $2,361.4 $2,196.4 $2,392.8

See accompanying notes to consolidated financial statements.

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