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Annual Report 1996


9. Common Stockholders' Equity

During 1996, the Company repurchased 1.1 million shares of common stock for $43.6 million, during 1995, 1.2 million shares were repurchased for $40.2 million and during 1994, .9 million shares were repurchased for $30.6 million. As of December 31, 1996, the unexpended balance under the Company's $100 million common stock repurchase program, which was approved by the Board of Directors in January 1995, was $41.6 million. The Company may repurchase its common stock on the open market, in privately negotiated transactions or otherwise (which may include transactions with Polaroid stock option holders and with Polaroid retirement plans, including the employee stock ownership plan). The timing and amounts of any future purchases under this program depend upon many factors, including market conditions as well as the Company's business and financial condition.

Deferred Compensation was $39.6 million and $80.0 million at December 31, 1996 and 1995, respectively. Deferred compensation included $37.7 million at December 31, 1996 and $77.4 million in 1995 for the ESOP (see Notes 8 and 11) covering substantially all domestic employees. These amounts, which were recorded as deductions from common stockholders' equity, represent amounts receivable in the future from the ESOP Trust. Shares held by the Company's ESOP Trust at December 31 were as follows:

(In thousands)

1996

1995


Allocated

6,542

6,792

Suspense (unallocated)

949

1,993

Total

7,491

8,785

Dividends paid on unallocated ESOP shares of $1.0 million in 1996, $1.6 million in 1995 and $2.3 million in 1994 were used to repay the ESOP loan. The remaining dividends for allocated shares held by the Trust were paid to ESOP participants. Deferred compensation also included $1.9 million and $2.6 million at December 31, 1996 and 1995, respectively, related to the 1993 Polaroid Stock Incentive Plan (See Note 10).




Polaroid Corporation Annual Report 1996
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