Back to GetFilings.com



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q

(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2002

OR

( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-815

E. I. du Pont de Nemours and Company
(Exact Name of Registrant as Specified in Its Charter)

             Delaware

   51-0014090

(State or other Jurisdiction of

(I.R.S. Employer

 Incorporation or Organization)

Identification No.)

 

 

1007 Market Street, Wilmington, Delaware 19898
(Address of Principal Executive Offices)

(302) 774-1000
(Registrant's Telephone Number)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes

  X

No

  

 

993,298,398 shares (excludes 87,041,427 shares of treasury stock) of common stock, $0.30 par value, were outstanding at July 31, 2002.

 

1

2Q2002Qg_4

Form 10-Q

 

 

 

 

 

 

E. I. DU PONT DE NEMOURS AND COMPANY

Table of Contents

 

 

 

 

Page(s)
   

Part I Financial Information

  
   

Item 1. Financial Statements

  

Consolidated Income Statement

3

Consolidated Statement of Cash Flows

4

Consolidated Balance Sheet

5

Notes to Financial Statements

6-18
   

Item 2. Management's Discussion and Analysis of Financial

 

Condition and Results of Operations

 		 

Forward-Looking Statements

19-20

Results of Operations:

 		 

Sales and Earnings

20-22

Segment Results

22-23

Outlook

23

Liquidity & Capital Resources

24-25

Other Items:

 		 

Acquisition of Liqui-Box Corporation

25

Acquisition of ChemFirst, Inc.

25

Purchased In-Process Research and Development

26

Pioneer Intellectual Property Disputes

26

New Accounting Standards

26
   

Part II Other Information

  
   

Item 1. Legal Proceedings

27-28

Item 6. Exhibits and Reports on Form 8-K

28-29
   

Signature

30
   

Exhibit Index

31-32
   
   
   

 

 

 

 

 

 

 

 

 

 

2

2Q2002Qg_4

Form 10-Q

 

Part I. Financial Information

Item 1.    FINANCIAL STATEMENTS

E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES
 

Three Months Ended

Six Months Ended

CONSOLIDATED INCOME STATEMENT(a)

June 30

June 30

(Dollars in millions, except per share)

2002

  

2001

  

2002

  

2001
               

SALES (b)

$6,700

  

$6,997

  

$12,842

  

$13,856

Other Income(c)

25

 

216

  

82

  

386
               

Total

6,725

 

7,213

  

12,924

  

14,242
 

           

Cost of Goods Sold and Other Operating Charges(d)

4,369

  

4,615

  

8,353

  

9,101

Selling, General and Administrative Expenses

727

  

825

  

1,372

  

1,582

Depreciation

314

  

340

  

619

  

667

Amortization of Goodwill and Other Intangible Assets(e)

50

  

113

  

101

  

225

Research and Development Expense(f)

319

  

437

  

606

  

847

Interest Expense(g)

110

  

166

  

200

  

344

Employee Separation Costs and Write-Down of Assets(h)

246

  

1,046

  

255

  

1,046

Gain on Sale of DuPont Pharmaceuticals(i)

(19)

  

-

  

(19)

-
               

Total

6,116

  

7,542

  

11,487

  

13,812
               

INCOME (LOSS) BEFORE INCOME TAXES AND

MINORITY INTERESTS

609

  

(329)

  

1,437

  

430

Provision for (Benefit from) Income Taxes(j)

35

(139)

363

133

Minority Interests in Earnings of Consolidated Subsidiaries

31

  

23

  

52

  

26
               

INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF

CHANGES IN ACCOUNTING PRINCIPLES

543

  

(213)

  

1,022

 

271

Cumulative Effect of Changes in Accounting Principles,

Net of Income Taxes(k)

-

 

 

-

  

(2,944)

  

11
               

NET INCOME (LOSS)(b)

$ 543

  

$ (213)

  

$ (1,922)

 

$ 282
               

BASIC EARNINGS (LOSS) PER SHARE OF

COMMON STOCK(l)

              

Income (Loss) before Cumulative Effect of Changes in

Accounting Principles

$ .54

  

$ (.21)

  

$ 1.02

  

$ .26

Cumulative Effect of Changes in Accounting Principles

-

  

-

(2.96)

  

.01
               

Net Income (Loss)

$ .54

  

$ (.21)

  

$ (1.94)

  

$ .27
               

DILUTED EARNINGS (LOSS) PER SHARE OF

COMMON STOCK(l)

              

Income (Loss) before Cumulative Effect of Changes in

Accounting Principles

$ .54

  

$ (.21)

  

$ 1.01

  

$ .25

Cumulative Effect of Changes in Accounting Principles

-

  

-

  

(2.94)

  

.01
               

Net Income (Loss)

$ .54

  

$ (.21)

  

$ (1.93)

  

$ .26
               

DIVIDENDS PER SHARE OF COMMON STOCK

$ .35

  

$ .35

  

$ .70

  

$ .70
 

   

See Notes to Financial Statements.

3

2Q2002Qg_4

Form 10-Q

 

 

     
 

Six Months Ended

CONSOLIDATED STATEMENT OF CASH FLOWS(a)

June 30           

(Dollars in millions)

2002

2001

   

CASH PROVIDED BY (USED FOR) OPERATIONS:

    

Net Income (Loss)

$(1,922)

$ 282

Adjustments to Reconcile Net Income to Cash Provided by (Used for) Operations:

    

Cumulative Effect of a Change in Accounting Principle, Net of Tax(k)

2,944

(11)

Depreciation

619

667

Amortization of Goodwill and Other Intangible Assets(e)

101

225

Gain on Sale of DuPont Pharmaceuticals

(19)

-

Other Noncash Charges and Credits - Net

486

600

Change in Operating Assets and Liabilities - Net

(2,625)

(1,705)
     

Cash (Used for) Provided by Operations

(416)

58 
     

INVESTMENT ACTIVITIES:

    

Purchases of Property, Plant and Equipment

(553)

(667)

Investment in Affiliates

(78)

(49)

Payments for Businesses Acquired (Net of Cash Acquired)

(304)

(39)

Proceeds from Sales of Assets

21

133

Net Cash Flows Related to Sale of DuPont Pharmaceuticals

(122)

-

Net (Increase) Decrease in Short-Term Financial Instruments

(361)

58

Miscellaneous - Net

19   

(13) 
     

Cash Used for Investment Activities

(1,378)

(577)
     

FINANCING ACTIVITIES:

    

Dividends Paid to Stockholders

(701)

(734)

Net Increase in Borrowings

209

852

Acquisition of Treasury Stock

(470)

(199)

Proceeds from Exercise of Stock Options

30

125

Minority Interests

(22)

622  
     

Cash (Used for) Provided by Financing Activities

(954)

666 
     

Effect of Exchange Rate Changes on Cash

114

(206)
     

DECREASE IN CASH AND CASH EQUIVALENTS

$(2,634)

$ (59)
     

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

5,763 

1,540 
     

CASH AND CASH EQUIVALENTS AT END OF PERIOD

$ 3,129

$ 1,481
     

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

4

2Q2002Qg_4

Form 10-Q

 

 

     

CONSOLIDATED BALANCE SHEET(a)

June 30

December 31

(Dollars in millions, except per share)

2002

2001

ASSETS

 		   

CURRENT ASSETS

    

Cash and Cash Equivalents

$ 3,129

$ 5,763

Marketable Debt Securities

496

85

Accounts and Notes Receivable

5,451

3,903

Inventories(m)

3,759

4,215

Prepaid Expenses

223

217

Deferred Income Taxes

546

618

Total Current Assets

13,604

14,801

PROPERTY, PLANT AND EQUIPMENT, less accumulated depreciation

    

(June 30, 2002 - $20,746; December 31, 2001 - $20,491)

13,126

13,287

GOODWILL(e)

1,076

3,746

OTHER INTANGIBLE ASSETS(e)

2,966

3,151

INVESTMENT IN AFFILIATES

2,016

2,045

OTHER ASSETS

3,596

3,289

TOTAL

$36,384

$40,319

LIABILITIES AND STOCKHOLDERS' EQUITY

 		   

CURRENT LIABILITIES

    

Accounts Payable

$ 2,056

$ 2,219

Short-Term Borrowings and Capital Lease Obligations

2,199

1,464

Income Taxes

44

1,295

Other Accrued Liabilities

3,152

3,089

Total Current Liabilities

7,451

8,067

LONG-TERM BORROWINGS AND CAPITAL LEASE OBLIGATIONS

4,917

5,350

OTHER LIABILITIES

7,400

7,336

DEFERRED INCOME TAXES

2,757

2,690

Total Liabilities

22,525

23,443

MINORITY INTERESTS

2,409

2,424

COMMITMENTS AND CONTINGENT LIABILITIES(n)

    

STOCKHOLDERS' EQUITY

    

Preferred Stock

237

237

Common Stock, $.30 par value; 1,800,000,000 shares authorized;

 		   

Issued at June 30, 2002 - 1,080,307,425;

   

December 31, 2001 - 1,088,994,789

324

327

Additional Paid-In Capital

7,357

7,371

Reinvested Earnings

10,501

13,517

Accumulated Other Comprehensive Loss(o)(p)

(242)

(273)

Common Stock Held in Treasury, at Cost (Shares: June 30, 2002

   

and December 31, 2001 - 87,041,427)

(6,727)

(6,727)

Total Stockholders' Equity

11,450

14,452

TOTAL

$36,384

$40,319

   

See Notes to Financial Statements.

 

5

2Q2002Qg_4

Form 10-Q

 

 

 

NOTES TO FINANCIAL STATEMENTS
(Dollars in millions, except per share)

 

 

(a)

These statements are unaudited, but in the opinion of management, include all adjustments (consisting of normal

recurring adjustments) necessary to provide a fair presentation of the financial position, results of operations and cash flows for the dates and periods covered. Results for interim periods should not be considered indicative of results for a full year. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the registrant's Annual Report on Form 10-K for the year ended December 31, 2001. Certain reclassifications of prior years' data have been made to conform to current year classifications.

(b)

INDUSTRY SEGMENT INFORMATION(1)

 

Three Months Ended

Six Months Ended
 

June 30

June 30
 

2002

  

2001

  

2002

  

2001

SEGMENT SALES(2)

              

Agriculture & Nutrition

$1,533

  

$1,493

  

$ 3,120

  

$ 3,013

Coatings & Color Technologies

1,312

  

1,292

  

2,449

  

2,497

Electronic & Communication Technologies

682

  

724

  

1,260

  

1,508

Performance Materials

1,278

  

1,215

  

2,430

  

2,422

Pharmaceuticals

-

  

304

  

-

  

509

Safety & Protection

894

  

937

  

1,722

  

1,902

Textiles & Interiors

1,695

  

1,742

  

3,145

  

3,439

Other

25

  

62

  

51

  

114

Total Segment Sales

7,419

  

7,769

  

14,177

  

15,404
               

Elimination of Transfers

(92)

  

(127)

  

(187)

  

(273)

Elimination of Equity Affiliate Sales

(626)

  

(654)

  

(1,149)

  

(1,282)

Miscellaneous

(1)

  

9

  

1

  

7

CONSOLIDATED SALES

$6,700

  

$6,997

  

$12,842

  

$13,856
               
     

       

AFTER-TAX OPERATING INCOME (LOSS)(3)

              

Agriculture & Nutrition(4)

$ 230

  

$ 120

  

$ 553

  

$ 292

Coatings & Color Technologies

136

  

70

  

221

  

210

Electronic & Communication Technologies(5)

57

  

75

  

102

  

190

Performance Materials

126

  

17

  

211

  

112

Pharmaceuticals(6)

72

  

10

  

123

  

(54)

Safety & Protection

119

  

96

  

222

  

228

Textiles & Interiors(7)

(52)

  

(413)

  

(33)

  

(349)

Other(8)

(51)

  

(31)

  

(71)

  

(34)

Total Segment ATOI (Loss)

637

  

(56)

  

1,328

  

595
               

Interest & Exchange Gains and Losses(9)

(67)

  

(88)

  

(189)

  

(185)

Corporate Expenses(10)

(19)

  

(69)

  

(97)

  

(139)

Corporate Minority Interest(11)

(8)

  

-

  

(20)

  

-

Income (Loss) from Operations

543

(213)

1,022

271

Cumulative Effect of Changes in Accounting

Principles(12)

-

-

(2,944)

11

NET INCOME (LOSS)

$ 543

$ (213)

$(1,922)

$ 282

 

2Q2002Qg_4 6

Form 10-Q

 

 

NOTES TO FINANCIAL STATEMENTS
(Dollars in millions, except per share)
(continued)

 

 

Footnotes To Note (b):

(1)

Segment data for 2001 has been reclassified to reflect the company's realignment of its businesses into five market- and technology-focused growth platforms, and the formation of a Textiles & Interiors subsidiary. The company also retained its Pharmaceuticals segment.
   

(2)

Includes pro rata share of equity affiliate sales and transfers. Excludes sales of intermediates by DuPont to joint ventures within the Textiles & Interiors segment.
   

(3)

Second quarter 2001 charges of $679 result from employee terminations, facility shutdowns, and asset impairments in the following segments: Agriculture & Nutrition - $80; Coatings & Color Technologies - $48; Electronic & Communication Technologies - $27; Performance Materials - $31; Safety & Protection - $34; Textiles & Interiors - $420; and Other - $39.
   

(4)

Second quarter 2002 includes charges of $29 to write off inventory associated with discontinued specialty herbicide products and $25 associated with an expected loss on the pending sale of a European manufacturing facility.
   
 

Second quarter and year-to-date 2001 include amortization expense for goodwill and indefinite lived intangible assets of $27 and $54, respectively. Year-to-date 2001 also includes a charge of $83 resulting from the sale of acquired Pioneer inventories.
   

(5)

Second quarter 2001 includes a gain of $34 resulting from the company's sale of stock that reduced its ownership interest in DuPont Photomasks.
   

(6)

Second quarter 2002 includes a benefit of $12 to reflect final settlement with Bristol-Myers Squibb in connection with the sale of DuPont Pharmaceuticals.
   

(7)

Second quarter 2002 includes charges of $100 related to employee separation costs for approximately 2,000 employees and $43 related to facility shutdowns. Year-to-date 2002 also includes a charge of $29 to withdraw from a polyester joint venture in China, partly offset by a $19 gain resulting principally from a favorable litigation settlement associated with exiting a nylon joint venture in China.
   

(8)

Second quarter 2002 includes a charge of $31 to establish a litigation reserve related to a previously divested business.
   

(9)

Second quarter 2002 includes a charge of $17 associated with the early extinguishment of outstanding debentures. Year-to-date 2002 also includes an exchange loss of $63 resulting from the mandatory conversion of the company's U.S. dollar-denominated trade receivables to Argentine pesos and moving from a preferential to a free-market exchange rate.
   

(10)

Second quarter 2002 includes a net $65 noncash tax benefit, principally due to agreement on certain prior year audit issues previously reserved for, partly offset by the establishment of a reserve for an additional tax contingency.
   

 

 

 

7

2Q2002Qg_4

Form 10-Q

 

 

NOTES TO FINANCIAL STATEMENTS
(Dollars in millions, except per share)

(continued)

 

 

Footnotes To Note (b): - (Cont'd)

(11)

Represents a rate of return to minority interest investors who made capital contributions during 2001 to consolidated subsidiaries.
   

(12)

On January 1, 2002, the company adopted SFAS No. 142, "Goodwill and Other Intangible Assets." During the second quarter, the company completed its review of goodwill and recorded a cumulative effect charge to income of $2,944 effective January 1, 2002. This charge is attributable to goodwill impairments of $2,866 in the Agriculture & Nutrition segment and $78 in the Textiles & Interiors segment related to previous acquisitions.
   
 

The company's adoption of SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities," as amended, on January 1, 2001 resulted in a cumulative effect benefit to income of $11.

 

(c)

Other income for the three months ended June 30, 2002 decreased $191 versus the same period in the prior year. The change is primarily due to increased net monetary asset positions and a weakening U.S. dollar, which, when hedged, created net pretax losses totaling $126 in 2002 compared to $13 in 2001 (excluding equity affiliates). The pretax losses are largely offset by associated tax benefits. In addition, second quarter 2001 includes a $52 gain resulting from the company's sale of stock that reduced its ownership of DuPont Photomasks.
   
 

Year-to-date 2002 other income decreased $304, also primarily due to net exchange losses, which totaled $213 this year versus $10 last year. The 2002 year-to-date net exchange losses also include a loss of $63 resulting from the mandatory conversion of the company's U.S. dollar-denominated trade receivables to Argentine pesos and moving from a preferential to a free-market exchange.
   

(d)

Second quarter 2002 includes charges of $47 to write off inventory associated with discontinued specialty herbicide products and $50 to establish a litigation reserve related to a previously divested business. Year-to-date 2001 includes a charge of $133 resulting from the sale of acquired Pioneer inventories, which, in accordance with purchase accounting rules, were recorded at estimated fair value on October 1, 1999.
   

(e)

On January 1, 2002, the company adopted Statement of Financial Accounting Standards (SFAS) No. 142, "Goodwill and Other Intangible Assets," which requires that goodwill and indefinite-lived intangible assets no longer be amortized. In addition, an initial (and at least annually thereafter) impairment test of these assets must be performed. If the initial test results in impairment, an adjustment is to be recorded in net income as a cumulative effect of a change in accounting principle (net of tax). Although a transitional impairment loss for goodwill may be measured in other than the first interim reporting period, it must be recognized in financial statements in the first interim period irrespective of the period in which measurement has been completed. Impairment losses after the initial adoption impairment are to be recorded as part of income from continuing operations.
   

 

 

 

 

 

 

 

8

2Q2002Qg_4

Form 10-Q

 

 

NOTES TO FINANCIAL STATEMENTS
(Dollars in millions, except per share)

(continued)

 
 

During the second quarter of 2002, the company completed its initial review of goodwill and recorded a cumulative effect of a change in accounting principle of $2,944 effective January 1, 2002 to reduce the carrying value of its goodwill. As there is no tax benefit associated with this charge (goodwill arose in connection with the acquisition of stock versus a purchase of assets), both the pretax and after-tax amounts are the same. The details of this noncash charge are as follows:

Segment

Impairment Loss

Agriculture & Nutrition

$2,866

Textiles & Interiors

78

 

$2,944

 

A variety of fair valuation methods were used in measuring for impairment, including discounted net cash flow and comparable company multiples of revenues and EBITDA (earnings before interest, taxes, depreciation and amortization). The primary factors that resulted in the impairment charge in the Agriculture & Nutrition segment are the difficult economic environment in the agriculture sector, slower than expected development of and access to biotech traits and a slower than expected rate of acceptance by the public of new ag biotech products. While the original strategic intent of the Textiles & Interiors commercial flooring business has not changed, the realization of the economic benefits from the business has been limited by poor economic conditions, particularly in the commercial office sector, and lower than expected margins in the competitive distribution market. These factors contributed to goodwill impairment in this segment. No impairment charge was appropria te for either of these businesses under the Financial Accounting Standard Board's previous impairment standard, which was based on undiscounted cash flows.
   
 

The changes in goodwill through the period ended June 30, 2002 were as follows:
   

Assembled

Goodwill

Cumulative

  
 

Balance as of

Workforce

Adjustments and

Effect of

Balance as of

Segment

December 31, 2001

Reclassification

Acquisitions

Adoption

June 30, 2002
           

Agriculture & Nutrition

$2,891

$55*

$ (2)

$(2,866)

$ 78

Coatings & Color

          

Technologies

711

-

1

-

712

Electronic & Communication

          

Technologies

40

-

-

-

40

Performance Materials

2

-

-

-

2

Pharmaceuticals

-

-

-

-

-

Safety & Protection

12

-

5

-

17

Textiles & Interiors

88

-

-

(78)

10

Other

2

-

215**

-

217

         

TOTAL

$3,746

$55

$219

$(2,944)

$1,076

         

*

Reclassification of assembled workforce required upon adoption of SFAS No. 142 and consists of a gross asset of

$113, net of $24 in accumulated amortization and $34 in deferred taxes.

**

Attributable to a preliminary allocation of purchase price related to the recent acquisition of Liqui-Box Corporation.

 

 

 

 

 

 

 

9

2Q2002Qg_4

Form 10-Q

 

 

NOTES TO FINANCIAL STATEMENTS
(Dollars in millions, except per share)

(continued)

 
 

Amortization expense of $47 (pretax) and $43 (after-tax) was recorded in the second quarter of 2001, and $92 (pretax) and $84 (after-tax) was recorded during the six months ended June 30, 2001 related to goodwill and indefinite-lived intangible assets that are no longer being amortized due to the adoption of SFAS No. 142. Segment detail related to these amounts (after-tax) is shown below for the three- and six-month periods ended June 30, 2001:

 

 

Segment

Three Months

Ended

June 30, 2001

Six Months

Ended

June 30, 2001

Agriculture & Nutrition

$27

$54

Coatings & Color Technologies

10

20

Electronic & Communication

Technologies

1

2

Performance Materials

-

-

Safety & Protection

-

-

Textiles & Interiors

3

5

Pharmaceuticals

2*

3*

 

$43

$84

*

Represents amortization prior to divestiture of DuPont Pharmaceuticals on October 1, 2001.

 

The following table provides a reconciliation of reported net income to adjusted net income and adjusted earnings per share amounts for the three- and six-month periods ended June 30, 2002 and 2001 as if the nonamortization provisions of SFAS No. 142 had been applied as of January 1, 2001:

 

Three Months Ended June 30

Six Months Ended June 30

 

2002

2001

2002

2001

       

Reported net income (loss)

$ 543

$ (213)

$(1,922)

$ 282

Add back: Goodwill amortization

-

36

-

70

Add back: Equity method goodwill amortization

-

2

-

4

Add back: Indefinite-lived intangible asset amortization

-

5

-

10

Adjusted net income (loss)

$ 543

$ (170)

$(1,922)

$ 366

       

Basic Earnings Per Share

        

Reported net income (loss)

$0.54

$(0.21)

$ (1.94)

$0.27

Add back: Goodwill amortization

-

0.03

-

0.07

Add back: Equity method goodwill amortization

-

0.00

-

0.00

Add back: Indefinite-lived intangible asset amortization

-

0.01

-

0.01

$0.54

$(0.17)

$ (1.94)

$0.35
         

Diluted Earnings Per Share

        

Reported net income (loss)

$0.54

$(0.21)

$ (1.93)

$0.26

Add back: Goodwill amortization

-

0.03

-

0.07

Add back: Equity method goodwill amortization

-

0.00

-

0.00

Add back: Indefinite-lived intangible asset amortization

-

0.01

-

0.02

 

$0.54

$(0.17)

$ (1.93)

$0.35

 

10

2Q2002Qg_4

Form 10-Q

 

 

NOTES TO FINANCIAL STATEMENTS
(Dollars in millions, except per share)

(continued)

 
 

As additional information, the following table provides a reconciliation of reported net income to adjusted net income and adjusted earnings per share amounts for the years 1999 through 2001 as if the nonamortization provisions of SFAS No. 142 had been applied:

 

 

2001

2000

1999

     

Reported net income

$4,339

$2,314

$7,690

Add back: Goodwill amortization

140

141

88

Add back: Equity method goodwill amortization

7

8

11

Add back: Indefinite-lived intangible asset amortization

19

19

4

Adjusted net income

$4,505

$2,482

$7,793

     

Basic Earnings Per Share

  

 

Reported net income

$ 4.18

$ 2.21

$ 7.08

Add back: Goodwill amortization

0.13

0.13

0.09

Add back: Equity method goodwill amortization

0.01

0.01

0.01

Add back: Indefinite-lived intangible asset amortization

0.02

0.02

0.00

$ 4.34

$ 2.37

$ 7.18
       

Diluted Earnings Per Share

      

Reported net income

$ 4.16

$ 2.19

$ 6.99

Add back: Goodwill amortization

0.13

0.13

0.09

Add back: Equity method goodwill amortization

0.01

0.01

0.01

Add back: Indefinite-lived intangible asset amortization

0.02

0.02

0.00

$ 4.32

$ 2.35

$ 7.09