SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): December 12, 2003
ASHLAND INC.
(Exact name of registrant as specified in its charter)
Kentucky
(State or other jurisdiction of incorporation)
1-2918 61-0122250
(Commission File Number) (I.R.S. Employer
Identification No.)
50 E. RiverCenter Boulevard, Covington, Kentucky 41012-0391
(Address of principal executive offices) (Zip Code)
P.O. Box 391, Covington, Kentucky 41012-0391
(Mailing Address) (Zip Code)
Registrant's telephone number, including area code (859) 815-3333
Item 7. Financial Statements and Exhibits
- ------- ---------------------------------
(c) Exhibits
99.1 5-Year Supplemental Financial Information posted to Ashland Inc.'s
Website
Item 9. Regulation FD Disclosure
- ------- ------------------------
On December 12, 2003, Ashland Inc. ("Ashland") will include the
information contained in exhibit 99.1 on the "Investor Relations" section
of its website located at www.ashland.com. Ashland is furnishing the
information pursuant to the Securities and Exchange Commission's ("SEC")
Regulation FD. The information contained in exhibit 99.1 includes five
years (fiscal years 1999 - 2003) of supplemental financial information
concerning Ashland and its consolidated subsidiaries. The information is
intended to be considered in the context of Ashland's SEC filings and other
public announcements that Ashland may make from time to time.
By filing this report on Form 8-K, Ashland makes no admission as to
the materiality of any information in this report. Ashland reserves the
right to discontinue the availability of the data in the attached exhibit
from its website at any time.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
ASHLAND INC.
------------------------------------
(Registrant)
Date: December 12, 2003 /s/ J. Marvin Quin
------------------------------------
Name: J. Marvin Quin
Title: Senior Vice President and
Chief Financial Officer
EXHIBIT INDEX
99.1 5-Year Supplemental Financial Information posted to Ashland's
website
Exhibit 99.1
Ashland Inc. and Consolidated Subsidiaries
STATEMENTS OF CONSOLIDATED INCOME
Years Ended September 30
(In millions except per share data) 2003 2002 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------------------
REVENUES
Sales and operating revenues $ 7,518 $ 7,348 $ 7,528 $ 7,771 $ 6,623
Equity income 301 181 755 395 350
Other income 46 47 53 63 88
---------- ---------- ----------- ---------- ----------
7,865 7,576 8,336 8,229 7,061
COSTS AND EXPENSES
Cost of sales and operating expenses 6,005 5,736 6,016 6,157 5,118
Selling, general and administrative expenses 1,390 1,311 1,249 1,200 1,113
Depreciation, depletion and amortization 204 208 240 227 219
---------- ---------- ----------- ---------- ----------
7,599 7,255 7,505 7,584 6,450
---------- ---------- ----------- ---------- ----------
OPERATING INCOME 266 321 831 645 611
Net interest and other financial costs (128) (138) (175) (194) (140)
---------- ---------- ----------- ---------- ----------
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 138 183 656 451 471
Income taxes (44) (68) (266) (179) (188)
---------- ---------- ----------- ---------- ----------
INCOME FROM CONTINUING OPERATIONS 94 115 390 272 283
Results from discontinued operations (14) 13 32 (202) 7
---------- ---------- ----------- ---------- ----------
INCOME BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGES 80 128 422 70 290
Cumulative effect of accounting changes (5) (11) (5) - -
---------- ---------- ----------- ---------- ----------
NET INCOME $ 75 $ 117 $ 417 $ 70 $ 290
========== ========== =========== ========== ==========
EARNINGS PER SHARE
Basic
Income from continuing operations $ 1.37 $ 1.67 $ 5.60 $ 3.84 $ 3.85
Results from discontinued operations (.19) .19 .46 (2.85) .09
Cumulative effect of accounting changes (.08) (.17) (.07) - -
---------- ---------- ----------- ---------- ----------
Net income $ 1.10 $ 1.69 $ 5.99 $ .99 $ 3.94
========== ========== =========== ========== ==========
Diluted
Income from continuing operations $ 1.37 $ 1.64 $ 5.54 $ 3.83 $ 3.80
Results from discontinued operations (.19) .19 .45 (2.85) .09
Cumulative effect of accounting changes (.08) (.16) (.06) - -
---------- ---------- ----------- ---------- ----------
Net income $ 1.10 $ 1.67 $ 5.93 $ .98 $ 3.89
========== ========== =========== ========== ==========
Ashland Inc. and Consolidated Subsidiaries
CONSOLIDATED BALANCE SHEETS
September 30
(In millions) 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
- ------
CURRENT ASSETS
Cash and cash equivalents $ 223 $ 90 $ 236 $ 67 $ 110
Accounts receivable 1,135 1,056 1,165 1,211 1,188
Inventories 441 456 468 461 437
Deferred income taxes 142 119 131 136 105
Current assets of discontinued operations held for sale - 211 64 99 61
Other current assets 144 139 169 199 159
----------- ---------- ---------- ---------- ----------
2,085 2,071 2,233 2,173 2,060
INVESTMENTS AND OTHER ASSETS
Investment in Marathon Ashland Petroleum LLC (MAP) 2,448 2,350 2,387 2,295 2,172
Goodwill 523 510 517 525 216
Asbestos insurance receivable (noncurrent portion) 399 171 162 46 50
Noncurrent assets of discontinued operations held for sale - - 145 142 539
Other noncurrent assets 340 329 369 341 258
----------- ---------- ---------- ---------- ----------
3,710 3,360 3,580 3,349 3,235
PROPERTY, PLANT AND EQUIPMENT
Cost
APAC 1,322 1,358 1,290 1,219 990
Ashland Distribution 333 360 359 356 352
Ashland Specialty Chemical 722 708 701 662 610
Valvoline 424 379 374 354 348
Corporate 158 115 121 114 191
----------- ---------- ---------- ---------- ----------
2,959 2,920 2,845 2,705 2,491
Accumulated depreciation, depletion and amortization (1,748) (1,629) (1,530) (1,403) (1,311)
----------- ---------- ---------- ---------- ----------
1,211 1,291 1,315 1,302 1,180
----------- ---------- ---------- ---------- ----------
$ 7,006 $ 6,722 $ 7,128 $ 6,824 $ 6,475
=========== ========== ========== ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
CURRENT LIABILITIES
Debt due within one year
Commercial paper and short-term notes $ - $ 10 $ - $ 245 $ 182
Current portion of long-term debt 102 191 85 82 37
Trade and other payables 1,371 1,256 1,399 1,309 1,112
Current liabilities of discontinued operations held for sale - 39 26 35 26
Income taxes 11 24 20 40 41
----------- ---------- ---------- ---------- ----------
1,484 1,520 1,530 1,711 1,398
NONCURRENT LIABILITIES
Long-term debt (less current portion) 1,512 1,606 1,786 1,899 1,627
Employee benefit obligations 385 509 412 383 418
Deferred income taxes 291 246 439 283 224
Reserves of captive insurance companies 168 166 173 179 175
Asbestos litigation reserve (noncurrent portion) 560 152 162 44 57
Noncurrent liabilities of discontinued operations held for sale - - 13 11 5
Other long-term liabilities and deferred credits 353 350 387 349 371
----------- ---------- ---------- ---------- ----------
3,269 3,029 3,372 3,148 2,877
STOCKHOLDERS' EQUITY
Common stock 68 68 69 70 72
Paid-in capital 350 338 363 388 464
Retained earnings 1,961 1,961 1,920 1,579 1,710
Accumulated other comprehensive loss (126) (194) (126) (72) (46)
----------- ---------- ---------- ---------- ----------
2,253 2,173 2,226 1,965 2,200
----------- ---------- ---------- ---------- ----------
$ 7,006 $ 6,722 $ 7,128 $ 6,824 $ 6,475
=========== ========== ========== ========== ==========
Ashland Inc. and Consolidated Subsidiaries
STATEMENTS OF CONSOLIDATED CASH FLOWS
Years Ended September 30
(In millions) 2003 2002 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATIONS
Income from continuing operations $ 94 $ 115 $ 390 $ 272 $ 283
Expense (income) not affecting cash
Depreciation, depletion and amortization 204 208 240 227 219
Deferred income taxes 49 (121) 151 107 101
Equity income from affiliates (301) (181) (755) (395) (350)
Distributions from equity affiliates 203 201 664 282 339
Other items 1 - 5 (19) (2)
Change in operating assets and liabilities (1) (8) (59) 119 (17) (217)
---------- ---------- ----------- ---------- ----------
242 163 814 457 373
CASH FLOWS FROM FINANCING
Proceeds from issuance of long-term debt - 55 52 988 150
Proceeds from issuance of common stock 2 11 15 5 4
Repayment of long-term debt (216) (140) (169) (675) (59)
Repurchase of common stock - (42) (49) (89) (228)
Increase (decrease) in short-term debt (10) 10 (245) 63 98
Dividends paid (75) (76) (76) (78) (81)
---------- ---------- ----------- ---------- ----------
(299) (182) (472) 214 (116)
CASH FLOWS FROM INVESTMENT
Additions to property, plant and equipment (110) (174) (186) (214) (232)
Purchase of operations - net of cash acquired (5) (15) (91) (590) (67)
Proceeds from sale of operations 7 - 9 50 24
Other - net 11 27 9 70 97
---------- ---------- ----------- ---------- ----------
(97) (162) (259) (684) (178)
---------- ---------- ----------- ---------- ----------
CASH PROVIDED (USED) BY CONTINUING OPERATIONS (154) (181) 83 (13) 79
Cash provided (used) by discontinued operations 287 35 86 (30) (3)
---------- ---------- ----------- ---------- ----------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 133 (146) 169 (43) 76
Cash and cash equivalents - beginning of year 90 236 67 110 34
---------- ---------- ----------- ---------- ----------
CASH AND CASH EQUIVALENTS - END OF YEAR $ 223 $ 90 $ 236 $ 67 $ 110
========== ========== =========== ========== ==========
DECREASE (INCREASE) IN OPERATING ASSETS (1)
Accounts receivable $ (79) $ 110 $ 70 $ 69 $ (89)
Inventories 15 12 5 1 (23)
Deferred income taxes 22 17 - (28) 1
Other current assets (5) 30 31 (29) (21)
Investments and other assets 7 36 (168) (80) (50)
INCREASE (DECREASE) IN OPERATING LIABILITIES (1)
Trade and other payables 115 (132) 71 108 (76)
Income taxes (50) (18) 4 (15) 2
Noncurrent liabilities (33) (114) 106 (43) 39
---------- ---------- ----------- ---------- ----------
CHANGE IN OPERATING ASSETS AND LIABILITIES $ (8) $ (59) $ 119 $ (17) $ (217)
========== ========== =========== ========== ==========
(1) Excludes changes resulting from operations acquired or sold.
Ashland Inc. and Consolidated Subsidiaries
INFORMATION BY INDUSTRY SEGMENT
Years Ended September 30
(In millions) 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------
REVENUES
Sales and operating revenues
APAC $ 2,400 $ 2,652 $ 2,624 $ 2,504 $ 1,678
Ashland Distribution 2,804 2,535 2,849 3,214 2,925
Ashland Specialty Chemical 1,170 1,094 1,055 1,092 1,083
Valvoline 1,235 1,152 1,092 1,077 1,059
Intersegment sales (1)
Ashland Distribution (21) (20) (26) (38) (35)
Ashland Specialty Chemical (69) (63) (64) (76) (82)
Valvoline (1) (2) (2) (2) (5)
---------- ---------- ---------- ---------- -----------
7,518 7,348 7,528 7,771 6,623
Equity income
APAC 9 - - - -
Ashland Specialty Chemical 7 4 5 4 5
Valvoline - 1 1 2 1
Refining and Marketing 285 176 749 389 344
---------- ---------- ---------- ---------- -----------
301 181 755 395 350
Other income
APAC - 12 13 21 12
Ashland Distribution 19 17 15 9 6
Ashland Specialty Chemical 10 4 6 12 6
Valvoline 5 7 6 7 6
Refining and Marketing 2 2 7 6 8
Corporate 10 5 6 8 50
---------- ---------- ---------- ---------- -----------
46 47 53 63 88
---------- ---------- ---------- ---------- -----------
$ 7,865 $ 7,576 $ 8,336 $ 8,229 $ 7,061
========== ========== ========== ========== ===========
OPERATING INCOME
APAC $ (42) $ 122 $ 55 $ 140 $ 107
Ashland Distribution 32 1 35 70 37 (2)
Ashland Specialty Chemical 31 70 38 69 94
Valvoline 87 77 81 78 74
Refining and Marketing (3) 263 143 707 361 323 (4)
Corporate (105) (92) (85) (73) (24)(5)
---------- ---------- ---------- ---------- -----------
$ 266 $ 321 $ 831 $ 645 $ 611
========== ========== ========== ========== ===========
DEPRECIATION, DEPLETION AND AMORTIZATION
APAC $ 108 $ 114 $ 133 $ 129 $ 89
Ashland Distribution 19 21 27 23 44 (6)
Ashland Specialty Chemical 40 38 46 40 44
Valvoline 26 24 23 22 26
Corporate 11 11 11 13 16
---------- ---------- ---------- ---------- -----------
$ 204 $ 208 $ 240 $ 227 $ 219
========== ========== ========== ========== ===========
(1) Intersegment sales are accounted for at prices that approximate
market value.
(2) Includes a $21 million charge for asset impairment related to
European plastics distribution operations.
(3) Includes Ashland's equity income from MAP, amortization related to
Ashland's excess investment in MAP, and other activities
associated with refining and marketing.
(4) Includes a $10 million charge for severance and other costs
related to the formation of MAP, and Ashland's $117 million share
of income from adjustments to MAP's inventory market valuation
reserve. The reserve reflects the excess of the LIFO cost of MAP's
crude oil and refined product inventories over their net
realizable values.
(5) Includes income of $43 million from environmental insurance
recoveries.
(6) Includes a charge of $19 million to write down goodwill related to
European plastics distribution operations.
Ashland Inc. and Consolidated Subsidiaries
INFORMATION BY INDUSTRY SEGMENT
Years Ended September 30
(In millions) 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------
ASSETS
APAC $ 1,481 $ 1,498 $ 1,574 $ 1,654 $ 996
Ashland Distribution 856 884 961 1,047 917
Ashland Specialty Chemical 749 941 941 887 875
Valvoline 667 611 642 573 561
Refining and Marketing 2,484 2,409 2,452 2,352 2,229
Corporate (1) 769 379 558 311 897
---------- ---------- ---------- ---------- -----------
$ 7,006 $ 6,722 $ 7,128 $ 6,824 $ 6,475
========== ========== ========== ========== ===========
CAPITAL EMPLOYED
APAC $ 1,014 $ 1,039 $ 1,047 $ 1,156 $ 663
Ashland Distribution 418 459 470 574 527
Ashland Specialty Chemical 438 610 612 597 566
Valvoline 399 343 389 333 346
Refining and Marketing 1,866 1,818 1,654 1,679 1,646
Corporate (268) (289) (75) (148) 298
---------- ---------- ---------- ---------- -----------
$ 3,867 $ 3,980 $ 4,097 $ 4,191 $ 4,046
========== ========== ========== ========== ===========
RETURN ON INVESTMENT (2)
APAC (2.4)% 7.3 % 2.5% 7.5% 12.6%
Ashland Distribution 4.3 % (0.5)% 2.8% 7.2% 2.6%
Ashland Specialty Chemical 4.8 % 9.8 % 5.4% 10.1% 13.1%
Valvoline 14.1 % 12.5 % 12.5% 12.2% 12.2%
Refining and Marketing 8.7 % 4.9 % 25.3% 13.2% 11.4%
Ashland Inc. consolidated 4.4 % 5.0 % 12.3% 9.6% 10.7%
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT
APAC $ 47 $ 107 $ 92 $ 98 $ 104
Ashland Distribution 5 12 15 18 30
Ashland Specialty Chemical 34 27 38 64 54
Valvoline 16 21 29 25 26
Corporate 8 7 12 9 18
---------- ---------- ---------- ---------- -----------
$ 110 $ 174 $ 186 $ 214 $ 232
========== ========== ========== ========== ===========
(1) Includes cash, cash equivalents and other unallocated assets.
(2) Calculated as income from continuing operations before interest
expense on debt (net of related tax benefits) divided by average
quarterly capital employed (excluding capital employed in
discontinued operations).
Ashland Inc. and Consolidated Subsidiaries
INFORMATION BY INDUSTRY SEGMENT
Years Ended September 30
2003 2002 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------------------------
OPERATING INFORMATION
APAC
Construction backlog at September 30 (millions) (1) $ 1,745 $ 1,691 $ 1,629 $ 1,397 $ 948
Hot-mix asphalt production (million tons) 32.5 36.7 36.7 35.0 25.8
Aggregate production (million tons) 28.7 31.0 28.7 27.8 20.7
Ready-mix concrete production (million cubic yards) 2.0 2.1 2.3 2.6 1.4
Ashland Distribution (2)
Sales per shipping day (millions) $ 11.1 $ 10.1 $ 11.2 $ 12.8 $ 11.6
Gross profit as a percent of sales 15.3% 16.1% 15.9% 15.2% 16.1%
Ashland Specialty Chemical (2)
Sales per shipping day (millions) $ 4.6 $ 4.3 $ 4.2 $ 4.3 $ 4.5
Gross profit as a percent of sales 33.7% 37.0% 34.1% 35.7% 35.5%
Valvoline
Lubricant sales (million gallons) 193.5 199.0 187.4 194.1 198.1
Premium lubricants (percent of U.S. branded volumes) 18.5% 16.1% 11.7% 10.7% 8.2%
Refining and Marketing (3)
Refinery runs (thousand barrels per day)
Crude oil refined 900 930 912 892 898
Other charge and blend stocks 133 151 139 141 136
Refined product yields (thousand barrels per day)
Gasoline 554 594 560 559 566
Distillates 278 293 279 272 266
Asphalt 71 73 75 73 70
Other 131 127 136 131 132
---------- ---------- ---------- ----------- ----------
Total 1,034 1,087 1,050 1,035 1,034
Refined product sales (thousand barrels per day) (4) 1,345 1,321 1,302 1,309 1,231
Refining and wholesale marketing margin (per barrel) (5) $ 2.59 $ 1.82 $ 5.17 $ 2.63 $ 1.57
Speedway SuperAmerica (SSA)
Retail outlets at September 30 1,791 2,063 2,145 2,288 2,178
Gasoline and distillate sales (million gallons) 3,423 3,622 3,587 3,742 3,604
Gross margin - gasoline and distillates (per gallon) $ .1191 $ .1040 $ .1218 $ .1284 $ .1346
Merchandise sales (millions) $ 2,281 $ 2,381 $ 2,186 $ 2,143 $ 1,857
Merchandise margin (as a percent of sales) 24.5% 24.2% 23.3% 24.5% 26.2%
- ---------------------------------------------------------------------------------------------------------------------------------
(1) Includes APAC's proportionate share of the backlog of
unconsolidated joint ventures.
(2) Sales are defined as sales and operating revenues. Gross profit is
defined as sales and operating revenues, less cost of sales and
operating expenses, and depreciation and amortization relative to
manufacturing assets.
(3) Amounts represent 100% of MAP's operations, in which Ashland owns
a 38% interest.
(4) Total average daily volume of all refined product sales to MAP's
wholesale, branded and retail (SSA) customers.
(5) Sales revenue less cost of refinery inputs, purchased products and
manufacturing expenses, including depreciation.
Ashland Inc. and Consolidated Subsidiaries
INTERNATIONAL OPERATIONS
Years Ended September 30
(In millions) 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL ASSETS
Ashland Distribution $ 152 $ 125 $ 126 $ 156 $ 180
Ashland Specialty Chemical 352 319 295 226 210
Valvoline 121 101 92 94 105
---------- ---------- ---------- ---------- -----------
625 545 513 476 495
INTERNATIONAL LIABILITIES
Ashland Distribution 59 49 50 52 63
Ashland Specialty Chemical 104 99 99 69 68
Valvoline 45 37 36 31 38
---------- ---------- ---------- ---------- -----------
208 185 185 152 169
NET INTERNATIONAL INVESTMENT
Ashland Distribution 93 76 76 104 117
Ashland Specialty Chemical 248 220 196 157 142
Valvoline 76 64 56 63 67
---------- ---------- ---------- ---------- -----------
$ 417 $ 360 $ 328 $ 324 $ 326
========== ========== ========== ========== ===========
INTERNATIONAL INCOME BEFORE INCOME TAXES (1)
Ashland Distribution $ 8 $ 6 $ 12 $ 13 $ (20)(2)
Ashland Specialty Chemical 54 54 48 34 42
Valvoline 16 9 2 8 6
---------- ---------- ---------- ---------- -----------
$ 78 $ 69 $ 62 $ 55 $ 28
========== ========== ========== ========== ===========
INTERNATIONAL REVENUES
Ashland Distribution $ 432 $ 360 $ 417 $ 496 $ 498
Ashland Specialty Chemical 485 418 371 373 334
Valvoline 208 177 168 180 182
---------- ---------- ---------- ---------- -----------
$ 1,125 $ 955 $ 956 $ 1,049 $ 1,014
========== ========== ========== ========== ===========
(1) Amounts represent income (loss) recorded by international
subsidiaries, equity and dividend income from international
affiliates, and international source royalty and other income
recorded by U.S. subsidiaries. Amounts do not reflect any
allocation of expenses incurred in the U.S. (e.g., research and
development, advertising or administrative expenses) for the
benefit of both U.S. and international operations.
(2) Includes a $21 million charge for asset impairment related to
European plastics distribution operations.
Ashland Inc. and Consolidated Subsidiaries
INTERNATIONAL OPERATIONS
Years Ended September 30
(In millions) 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL ASSETS
Europe $ 368 $ 325 $ 295 $ 237 $ 270
Canada 141 124 126 143 140
Asia 47 40 38 32 26
Australia and New Zealand 43 34 27 31 36
Other 26 22 27 33 23
---------- ---------- ---------- ---------- -----------
625 545 513 476 495
INTERNATIONAL LIABILITIES
Europe 137 129 119 89 113
Canada 40 32 42 38 39
Asia 11 8 8 5 5
Australia and New Zealand 11 10 9 13 11
Other 9 6 7 7 1
---------- ---------- ---------- ---------- -----------
208 185 185 152 169
NET INTERNATIONAL INVESTMENT
Europe 231 196 176 148 157
Canada 101 92 84 105 101
Asia 36 32 30 27 21
Australia and New Zealand 32 24 18 18 25
Other 17 16 20 26 22
---------- ---------- ---------- ---------- -----------
$ 417 $ 360 $ 328 $ 324 $ 326
========== ========== ========== ========== ===========
INTERNATIONAL INCOME BEFORE INCOME TAXES (1)
Europe $ 23 $ 30 $ 25 $ 19 $ (7)(2)
Canada 25 25 26 24 23
Asia 14 11 10 9 7
Australia and New Zealand 8 3 1 1 4
Other 8 - - 2 1
---------- ---------- ---------- ---------- -----------
$ 78 $ 69 $ 62 $ 55 $ 28
========== ========== ========== ========== ===========
INTERNATIONAL REVENUES
Europe $ 618 $ 510 $ 475 $ 527 $ 530
Canada 292 265 288 321 283
Asia 76 63 55 50 41
Australia and New Zealand 75 61 61 68 82
Other 64 56 77 83 78
---------- ---------- ---------- ---------- -----------
$ 1,125 $ 955 $ 956 $ 1,049 $ 1,014
========== ========== ========== ========== ===========
(1) Amounts represent income (loss) recorded by international
subsidiaries, equity and dividend income from international
affiliates, and international source royalty and other income
recorded by U.S. subsidiaries. Amounts do not reflect any
allocation of expenses incurred in the U.S. (e.g., research and
development, advertising or administrative expenses) for the
benefit of both U.S. and international operations.
(2) Includes a $21 million charge for asset impairment related to
European plastics distribution operations.