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| Annual Report 1996 | ||
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| Annual Report 1996 | ||
| Management's Discussion and Analysis of Operations |
| The following table summarizes the relation to net sales of income and expense items included in the Consolidated Statement of Earnings for 1996, 1995 and 1994 and the changes in those items from the respective prior years. |
| Income and Expense Items as a Percent of Net Sales | Percent Increase/(Decrease) |
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1995 |
1994 |
1993 |
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To |
To |
To |
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1996 |
1995 |
1994 |
Income and Expense Items | 1996 |
1995 |
1994 |
| Net Sales: | ||||||
47% |
46% |
50% |
United States | 4% |
(12)% |
(2)% |
53 |
54 |
50 |
International | - |
6 |
8 |
100 |
100 |
100 |
Total net sales | 2 |
(3) |
3 |
56 |
58 |
57 |
Cost of goods sold | (1) |
(2) |
2 |
35 |
38 |
34 |
Marketing, research, engineering, and administrative expenses | (6) |
8 |
3 |
5 |
11 |
- |
Restructuring and other expenses | (55) |
100 |
(100) |
2 |
- |
- |
Special charges | 100 |
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2 |
(7) |
9 |
Profit/(loss) from operations | NM |
NM |
42 |
1 |
- |
- |
Other income | 215 |
21 |
(15) |
2 |
2 |
2 |
Interest expense | (9) |
12 |
(3) |
1 |
(9) |
7 |
Earnings/(loss) before income tax expense/(benefit) | NM |
NM |
NM |
- |
(3) |
2 |
Federal, state and foreign income tax expense/(benefit) | NM |
NM |
29 |
1 |
(6) |
5 |
Earnings/(loss) before extraordinary item | NM |
NM |
73 |
(3) |
- |
- |
Extraordinary item | (100) |
- |
- |
(2)% |
(6)% |
5% |
Net earnings/(loss) | 71% |
NM |
73% |
NM - not meaningful because of a fluctuation from a positive amount to a negative amount or from a negative amount to a positive amount.
| Percent of Worldwide Sales | |
 |
|
| Profit from Operations | |
 |
*
Excludes impact of $44 million of charges related to
restructuring and other expenses. ** Excludes impact of $247 million of charges related to restructuring and other expenses. ***Excludes impact of $110 million of charges related to restructuring and other expenses and $40 million |
The Company often uses the following qualitative descriptors to explain its results of operations: "flat" indicates fluctuations of zero-to-one percent; "slight" is in the two-to-three percent range; "moderate" means four-to-ten percent; "significant" is in the eleven-to-twenty percent range; and "substantial" represents fluctuations greater than twenty percent.
