For quarterly period ending

September 30, 2002

For the transition period from		to
Commission file number:		1-7945

MINNESOTA		41-0216800
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)
3680 Victoria St. N., Shoreview, Minnesota		55126-2966
(Address of principal executive offices)		(Zip Code)

(651) 483-7111

(Registrant’s telephone number, including area code)

Yes

ü

No

		September 30, 2002				December 31, 2001
		(dollars in thousands, except share par value)
Current Assets:
Cash and cash equivalents		$	2,295			$	9,571
Trade accounts receivable (net of allowance for doubtful accounts of $1,897 and $1,428, respectively)			46,514				37,703
Inventories			9,883				11,192
Supplies			10,641				11,071
Deferred income taxes			3,844				4,574
Prepaid expenses			17,509				3,108
Other current assets			3,366				6,753
Total current assets			94,052				83,972
Long-term Investments			39,831				37,661
Property, Plant and Equipment (net of accumulated depreciation of $293,854 and $293,413, respectively)			138,996				149,552
Property, Plant and Equipment Held for Sale (net of accumulated depreciation of $6,136)			1,517				1,517
Intangibles (net of accumulated amortization of $126,715 and $102,149, respectively)			107,024				114,856
Goodwill			82,237				82,237
Other Non-current Assets			93,642				67,926
Total assets		$	557,299			$	537,721
Current Liabilities:
Accounts payable		$	50,526			$	52,834
Accrued liabilities:
Wages, including vacation pay			32,245				26,513
Employee profit sharing and pension			21,670				29,734
Income taxes			52,592				39,426
Rebates			24,969				24,923
Other			42,550				42,313
Short-term debt			189,800				150,000
Long-term debt due within one year			1,566				1,381
Total current liabilities			415,918				367,124
Long-term Debt			8,889				10,084
Deferred Income Taxes			39,080				44,890
Other Long-term Liabilities			33,283				37,018
Shareholders’ Equity:
Common shares $1 par value (authorized: 500,000,000 shares; issued: 2002—61,944,284; 2001—64,101,957)			61,944				64,102
Retained (deficit) earnings			(1,782	)			14,563
Unearned compensation			(33	)			(60	)
Total shareholders’ equity			60,129				78,605
Total liabilities and shareholders’equity		$	557,299			$	537,721

		Quarter Ended September 30,								Nine Months Ended September 30,
		2002				2001				2002				2001
		(dollars in thousands, except per share amounts)
Revenue		$	319,773			$	324,318			$	977,144			$	959,635
Cost of goods sold			107,794				111,503				331,449				341,680
Gross Profit			211,979				212,815				645,695				617,955
Selling, general and administrative expense			124,755				128,127				381,746				390,042
Goodwill amortization expense			—				1,547				—				4,641
Asset impairment and disposition losses (gains)			675				298				(35	)			325
Operating Income			86,549				82,843				263,984				222,947
Interest expense			(1,203	)			(1,346	)			(3,296	)			(4,419	)
Interest income			103				252				364				2,218
Other income (expense)			(480	)			(33	)			180				(75	)
Income Before Income Taxes			84,969				81,716				261,232				220,671
Provision for income taxes			32,306				30,654				99,304				82,818
Net Income		$	52,663			$	51,062			$	161,928			$	137,853
Earnings per Share:  Basic		$	0.85			$	0.76			$	2.56			$	1.98
Diluted		$	0.83			$	0.75			$	2.53			$	1.97
Cash Dividends per Share		$	0.37			$	0.37			$	1.11			$	1.11
Total Comprehensive Income		$	52,663			$	51,246			$	161,928			$	138,128

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		Nine Months Ended September 30,
		2002				2001
		(dollars in thousands)
Cash Flows from Operating Activities:
Net income		$	161,928			$	137,853
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			18,138				23,840
Amortization of intangibles and goodwill			25,678				33,869
Asset impairment and disposition losses (gains)			(35	)			325
Other non-cash items, net			8,252				8,978
Changes in assets and liabilities:
Trade accounts receivable			(8,811	)			(3,197	)
Inventories and supplies			1,739				726
Prepaid expenses			(13,661	)			(183	)
Accounts payable			2,806				6,943
Accrued liabilities			2,082				27,924
Other assets and liabilities			(20,715	)			(28,469	)
Net cash provided by operating activities			177,401				208,609
Cash Flows from Investing Activities:
Proceeds from sales of marketable securities			—				37,990
Purchases of marketable securities			—				(30,000	)
Proceeds from sales of capital assets			89				1,452
Purchases of capital assets			(26,589	)			(22,281	)
Other			(3,389	)			(3,807	)
Net cash used by investing activities			(29,889	)			(16,646	)
Cash Flows from Financing Activities:
Net borrowings on short-term debt			39,800				102,900
Payments on long-term debt			(1,010	)			(101,213	)
Change in book overdrafts			(5,114	)			(3,802	)
Payments to retire shares			(146,961	)			(231,620	)
Proceeds from issuing shares under employee plans			28,612				43,762
Cash dividends paid to shareholders			(70,115	)			(77,472	)