Attached files
| file | filename |
|---|---|
| EX-99.02 - PERFORMANCE POLYMERS PET DIVESTITURE PRESS RELEASE - EASTMAN CHEMICAL CO | petpressrelease_10252010.htm |
| 8-K - THIRD QUARTER 2010 EARNINGS RELEASE AND RELATED TABLES - EASTMAN CHEMICAL CO | form8k2010_q3.htm |
For Immediate Release
October 28, 2010 – 5:00 p.m. EDT
Eastman Announces Record Earnings in Third Quarter 2010
KINGSPORT, Tenn., Oct. 28, 2010 – Eastman Chemical Company (NYSE:EMN) today announced earnings of $2.33 per diluted share for third quarter 2010 versus $1.38 per diluted share for third quarter 2009.
"Our core businesses continued to deliver strong results in the third quarter, leading us to our second consecutive record quarter of earnings per share,” said Jim Rogers, president and CEO. "Key factors driving the record earnings continue to be the strong volume across the company and in all regions, significant contributions from our growth initiatives, and the positive impact of strategic actions that have improved our portfolio of businesses and our cost structure."
|
(In millions, except per share amounts)
|
3Q2010
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3Q2009
|
||
|
Sales revenue
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$1,729
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$1,337
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||
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Earnings per diluted share
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$2.33
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$1.38
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||
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Net cash provided by operating activities
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$316
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$331
|
||
*See Table 4 for additional information about historical earnings per diluted share.
Sales revenue for third quarter 2010 was $1.7 billion, a 29 percent increase compared with third quarter 2009 primarily due to higher sales volume and higher selling prices. The higher sales volume was attributed primarily to improved end-use demand in packaging, durable goods, and other markets and the positive impact of growth initiatives. The increase in selling prices was in response to higher raw material and energy costs.
Operating earnings in third quarter 2010 increased to $280 million compared with operating earnings of $191 million in third quarter 2009. Operating earnings increased due to higher sales volume and higher capacity utilization which led to lower unit costs. In addition, higher selling prices more than offset higher raw material and energy costs. Third-quarter 2010 operating earnings also included $22 million from the partial settlement of an insurance claim related to the first-quarter 2010 power outage at the company’s Longview, Texas, manufacturing facility.
Segment Results 3Q 2010 versus 3Q 2009
Coatings, Adhesives, Specialty Polymers and Inks – Sales revenue increased by 20 percent due to higher selling prices and higher sales volume. The higher selling prices were in response to higher raw material and energy costs. The higher sales volume was attributed primarily to improved end-use demand in the packaging and transportation markets in Europe and the U.S., and the positive impact of growth initiatives. Operating earnings in third quarter 2010 increased to $91 million compared with operating earnings of $84 million in third quarter 2009. Third-quarter 2010 operating earnings included $9 million from the partial settlement of the Longview, Texas, insurance claim. In addition, higher raw material and energy costs and increased costs for growth initiatives were mostly offset by higher selling prices and higher sales volume.
Fibers – Sales revenue increased by 17 percent due to higher sales volume, particularly for acetate tow attributed to customer buying patterns, and acetate yarn product lines. Operating earnings in third quarter 2010 increased to a quarterly record of $90 million compared with operating earnings of $79 million in third quarter 2009. The increase was due primarily to increased sales volume, particularly for acetate tow, and higher acetyl stream capacity utilization.
Performance Chemicals and Intermediates – Sales revenue increased by 42 percent due primarily to higher sales volume and higher selling prices. The higher sales volume was attributed primarily to growth in plasticizer product lines, which includes the addition of new plasticizer product lines from the acquisition of Genovique Specialties Corporation, and improved end-use demand in markets such as industrial chemicals and processing, agriculture and health and wellness. The higher selling prices were in response to higher raw material and energy costs. Operating earnings in third quarter 2010 increased to $77 million compared with $31 million in third quarter 2009. The increase was due to higher selling prices which more than offset higher raw material and energy costs, and higher sales volume and higher capacity utilization which led to lower unit costs. Third-quarter 2010 operating earnings included $12 million from the partial settlement of the Longview, Texas, insurance claim.
Performance Polymers – Sales revenue increased by 34 percent due to higher sales volume and higher selling prices. Sales volume increased due to improved operations of the IntegRex™-based PET manufacturing facility. The higher selling prices were due to sales in higher value end-use markets. Operating earnings in third quarter 2010 increased to $6 million from a loss of $8 million in third quarter 2009 primarily due to the favorable impact of improved IntegRex™ operations and higher selling prices which more than offset higher raw material and energy costs.
Specialty Plastics – Sales revenue increased by 33 percent due primarily to higher sales volume. The increase in sales volume was attributed to improved end-use demand for specialty packaging and consumer and durable goods, and the positive impact of growth initiatives for core copolyesters and Eastman Tritan™ copolyester product lines. Operating earnings increased to $31 million in third quarter 2010 compared with $13 million in third quarter 2009. The increase was due to higher sales volume, resulting in higher capacity utilization and lower unit costs which more than offset higher raw material and energy costs.
Cash Flow
Eastman generated $316 million of cash from operating activities during third quarter 2010 due primarily to strong net earnings. The company continues to expect to generate free cash flow of greater than $300 million for full year 2010, excluding the $200 million impact on cash from operating activities in first quarter 2010 resulting from the adoption of amended accounting guidance applied to the company’s accounts receivable securitization program. This expectation includes a contribution to the U.S. defined benefit pension plan of $135 million, of which $100 million is expected to be contributed in the fourth quarter. Free cash flow is defined as cash from operating activities less capital expenditures and dividends. See Table 5A for reconciliation of cash provided by operating activities to free cash flow.
Outlook
Commenting on the outlook for fourth quarter 2010, Rogers said: “Other than normal seasonal declines, we expect strong volumes will continue across the company and in all regions. We also expect raw material and energy costs will increase, particularly for paraxylene, which could negatively impact operating margins. As a result, we expect fourth-quarter 2010 earnings per share will be between $1.40 and $1.50.” Charges related to restructuring actions are excluded from earnings per share projections.
Eastman will host a conference call with industry analysts on October 29 at 8:00 a.m. Eastern Time. To listen to the live webcast of the conference call and view the accompanying slides, go to www.investors.eastman.com, Events & Presentations. To listen via telephone, the dial-in number is (913) 981-4912, passcode number 2471720. A web replay and the accompanying slides will be available at www.investors.eastman.com, Events & Presentations. A telephone replay will be available continuously from 11:00 a.m. EDT, October 29, to 11:00 a.m. EST, November 8, at (888) 203-1112 or (719) 457-0820, passcode 2471720.
Eastman’s chemicals, fibers and plastics are used as key ingredients in products that people use every day. Approximately 10,000 Eastman employees around the world blend technical expertise and innovation to deliver practical solutions. The company is committed to finding sustainable business opportunities within the diverse markets it serves. A global company headquartered in Kingsport, Tenn., USA, Eastman had 2009 sales of $5 billion. For more information, visit www.eastman.com.
Forward-Looking Statements: This news release includes forward-looking statements concerning current expectations for global and regional economic conditions and demand for the company’s products, implementation and impact of previously announced strategic and restructuring actions and growth initiatives, sales volumes, raw material and energy costs, and earnings per share and cash flow and uses during and for fourth quarter 2010. Such expectations are based upon certain preliminary information, internal estimates, and management assumptions, expectations, and plans, and are subject to a number of risks and uncertainties inherent in projecting future conditions, events, and results. Actual results could differ materially from expectations expressed in the forward-looking statements if one or more of the underlying assumptions or expectations prove to be inaccurate or are unrealized. Important factors that could cause actual results to differ materially from such expectations are and will be detailed in the company's filings with the Securities and Exchange Commission, including the Form 10-Q filed for second quarter 2010 available, and the Form 10-Q to be filed for third quarter 2010 and to be available, on the Eastman web site at www.eastman.com in the Investors, SEC filings section.
# # #
Contacts:
Media: Tracy Broadwater
423-224-0498 / tkbroadwater@eastman.com
Investors: Greg Riddle
212-835-1620 / griddle@eastman.com
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EASTMAN CHEMICAL COMPANY – EMN
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October 28, 2010
|
|
5:00 PM EDT
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FINANCIAL INFORMATION
October 28, 2010
For use in the Eastman Chemical Company Conference Call
at 8:00 AM (EDT), October 29, 2010.
Table of Contents
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Item
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Page
|
|
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Statements of Earnings
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1
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|
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Segment Sales Information
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2
|
|
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Segment Sales Revenue Change
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2
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Sales by Region
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3
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Sales Revenue Change by Region
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3
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Operating Earnings (Loss) and Asset Impairments and Restructuring Charges, Net
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4
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Operating Earnings, Earnings, and Earnings Per Share Reconciliation
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5
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Statements of Cash Flows
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6
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Net Cash Provided By Operating Activities Reconciliation and Free Cash Flow
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7
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Selected Balance Sheet Items
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7
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EASTMAN CHEMICAL COMPANY – EMN
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October 28, 2010
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5:00 PM EDT
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Page 1
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Third Quarter
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First Nine Months
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|||||||||||||||
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(Dollars in millions, except per share amounts)
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2010
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2009
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2010
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2009
|
||||||||||||
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Sales
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$ | 1,729 | $ | 1,337 | $ | 5,017 | $ | 3,719 | ||||||||
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Cost of sales
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1,284 | 1,009 | 3,847 | 2,952 | ||||||||||||
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Gross profit
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445 | 328 | 1,170 | 767 | ||||||||||||
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Selling, general and administrative expenses
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122 | 104 | 333 | 296 | ||||||||||||
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Research and development expenses
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43 | 33 | 115 | 101 | ||||||||||||
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Asset impairments and restructuring charges, net
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-- | -- | 3 | 23 | ||||||||||||
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Operating earnings
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280 | 191 | 719 | 347 | ||||||||||||
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Net interest expense
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25 | 19 | 75 | 58 | ||||||||||||
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Other charges (income), net
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(3 | ) | 2 | 11 | 11 | |||||||||||
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Earnings before income taxes
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258 | 170 | 633 | 278 | ||||||||||||
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Provision for income taxes
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88 | 69 | 214 | 110 | ||||||||||||
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Net earnings
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$ | 170 | $ | 101 | $ | 419 | $ | 168 | ||||||||
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Earnings per share
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||||||||||||||||
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Basic
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$ | 2.37 | $ | 1.40 | $ | 5.81 | $ | 2.31 | ||||||||
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Diluted
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$ | 2.33 | $ | 1.38 | $ | 5.70 | $ | 2.29 | ||||||||
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Shares (in millions) outstanding at end of period
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72.1 | 72.7 | 72.1 | 72.7 | ||||||||||||
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Shares (in millions) used for earnings per share calculation
|
||||||||||||||||
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Basic
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71.9 | 72.6 | 72.1 | 72.5 | ||||||||||||
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Diluted
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73.3 | 73.5 | 73.6 | 73.3 | ||||||||||||
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EASTMAN CHEMICAL COMPANY – EMN
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October 28, 2010
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5:00 PM EDT
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Page 2
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Third Quarter
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First Nine Months
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|||||||||||||||
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(Dollars in millions)
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2010
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2009
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2010
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2009
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||||||||||||
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Sales by Segment
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||||||||||||||||
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Coatings, Adhesives, Specialty Polymers, and Inks
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$ | 406 | $ | 338 | $ | 1,195 | $ | 890 | ||||||||
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Fibers
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301 | 257 | 842 | 779 | ||||||||||||
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Performance Chemicals and Intermediates
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534 | 377 | 1,557 | 997 | ||||||||||||
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Performance Polymers
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222 | 165 | 638 | 509 | ||||||||||||
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Specialty Plastics
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266 | 200 | 785 | 544 | ||||||||||||
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Total Eastman Chemical Company
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$ | 1,729 | $ | 1,337 | $ | 5,017 | $ | 3,719 | ||||||||
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Third Quarter 2010 Compared to Third Quarter 2009
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|||||||||
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Change in Sales Revenue Due To
|
|||||||||
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(Dollars in millions)
|
Revenue
% Change
|
Volume
Effect
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Price
Effect
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Product
Mix
Effect
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Exchange
Rate
Effect
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||||
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Coatings, Adhesives, Specialty Polymers, and Inks
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20 %
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8 %
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11 %
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3 %
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(2) %
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||||
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Fibers
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17 %
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12 %
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-- %
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5 %
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-- %
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||||
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Performance Chemicals and Intermediates
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42 %
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22 %
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18 %
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3 %
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(1) %
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||||
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Performance Polymers
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34 %
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27 %
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8 %
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(1) %
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-- %
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||||
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Specialty Plastics
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33 %
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27 %
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1 %
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5 %
|
-- %
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||||
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Total Eastman Chemical Company
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29 %
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18 %
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9 %
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3 %
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(1) %
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||||
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First Nine Months 2010 Compared to First Nine Months 2009
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|||||||||
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Change in Sales Revenue Due To
|
|||||||||
|
(Dollars in millions)
|
Revenue
% Change
|
Volume
Effect
|
Price
Effect
|
Product
Mix
Effect
|
Exchange
Rate
Effect
|
||||
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Coatings, Adhesives, Specialty Polymers, and Inks
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34 %
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18 %
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10 %
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6 %
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-- %
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||||
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Fibers
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8 %
|
6 %
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-- %
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2 %
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-- %
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||||
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Performance Chemicals and Intermediates
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56 %
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28 %
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23 %
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5 %
|
-- %
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||||
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Performance Polymers
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25 %
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13 %
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13 %
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(1) %
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-- %
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||||
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Specialty Plastics
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44 %
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37 %
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-- %
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6 %
|
1 %
|
||||
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Total Eastman Chemical Company
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35 %
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20 %
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11 %
|
4 %
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-- %
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||||
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EASTMAN CHEMICAL COMPANY – EMN
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October 28, 2010
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5:00 PM EDT
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Page 3
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|
Third Quarter
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First Nine Months
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|||||||||||||||
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(Dollars in millions)
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2010
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2009
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2010
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2009
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||||||||||||
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Sales by Region
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||||||||||||||||
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United States and Canada
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$ | 946 | $ | 737 | $ | 2,746 | $ | 2,096 | ||||||||
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Asia Pacific
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369 | 282 | 1,058 | 769 | ||||||||||||
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Europe, Middle East, and Africa
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291 | 222 | 852 | 607 | ||||||||||||
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Latin America
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123 | 96 | 361 | 247 | ||||||||||||
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Total Eastman Chemical Company
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$ | 1,729 | $ | 1,337 | $ | 5,017 | $ | 3,719 | ||||||||
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Third Quarter 2010 Compared to Third Quarter 2009
|
|||||||||
|
Change in Sales Revenue Due To
|
|||||||||
|
(Dollars in millions)
|
Change
|
Volume
Effect
|
Price
Effect
|
Product
Mix
Effect
|
Exchange
Rate
Effect
|
||||
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United States and Canada
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28 %
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18 %
|
10 %
|
-- %
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-- %
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||||
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Asia Pacific
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31 %
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15 %
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9 %
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6 %
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1 %
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||||
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Europe, Middle East, and Africa
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31 %
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20 %
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7 %
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10 %
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(6) %
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||||
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Latin America
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28 %
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19 %
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10 %
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(1) %
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-- %
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||||
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Total Eastman Chemical Company
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29 %
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18 %
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9 %
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3 %
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(1) %
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||||
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First Nine Months 2010 Compared to First Nine Months 2009
|
|||||||||
|
Change in Sales Revenue Due To
|
|||||||||
|
(Dollars in millions)
|
Change
|
Volume
Effect
|
Price
Effect
|
Product
Mix
Effect
|
Exchange
Rate
Effect
|
||||
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United States and Canada
|
31 %
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19 %
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12 %
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-- %
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-- %
|
||||
|
Asia Pacific
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38 %
|
18 %
|
10 %
|
9 %
|
1 %
|
||||
|
Europe, Middle East, and Africa
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40 %
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23 %
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3 %
|
15 %
|
(1) %
|
||||
|
Latin America
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46 %
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31 %
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15 %
|
-- %
|
-- %
|
||||
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Total Eastman Chemical Company
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35 %
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20 %
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11 %
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4 %
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-- %
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||||
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EASTMAN CHEMICAL COMPANY – EMN
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October 28, 2010
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5:00 PM EDT
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Page 4
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|
Third Quarter
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First Nine Months
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|||||||||||||||
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(Dollars in millions)
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2010
|
2009
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2010
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2009
|
||||||||||||
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Operating Earnings (Loss) by Segment and Items
|
||||||||||||||||
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Coatings, Adhesives, Specialty Polymers, and Inks
|
||||||||||||||||
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Operating earnings
|
$ | 91 | $ | 84 | $ | 251 | $ | 148 | ||||||||
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Asset impairments and restructuring charges, net (1)
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-- | -- | -- | 5 | ||||||||||||
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Operating earnings excluding item
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91 | 84 | 251 | 153 | ||||||||||||
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Fibers
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||||||||||||||||
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Operating earnings
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90 | 79 | 252 | 222 | ||||||||||||
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Asset impairments and restructuring charges, net (1)
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-- | -- | -- | 4 | ||||||||||||
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Operating earnings excluding item
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90 | 79 | 252 | 226 | ||||||||||||
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Performance Chemicals and Intermediates
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||||||||||||||||
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Operating earnings
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77 | 31 | 183 | 22 | ||||||||||||
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Asset impairments and restructuring charges, net (1) (2)
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-- | -- | 3 | 6 | ||||||||||||
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Operating earnings excluding item
|
77 | 31 | 186 | 28 | ||||||||||||
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Performance Polymers
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||||||||||||||||
|
Operating earnings (loss)
|
6 | (8 | ) | (1 | ) | (19 | ) | |||||||||
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Asset impairments and restructuring charges, net (1)
|
-- | -- | -- | 4 | ||||||||||||
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Operating earnings (loss) excluding item
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6 | (8 | ) | (1 | ) | (15 | ) | |||||||||
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Specialty Plastics
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||||||||||||||||
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Operating earnings
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31 | 13 | 73 | 3 | ||||||||||||
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Asset impairments and restructuring charges, net (1)
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-- | -- | -- | 4 | ||||||||||||
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Operating earnings excluding item
|
31 | 13 | 73 | 7 | ||||||||||||
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Total Operating Earnings by Segment and Item
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||||||||||||||||
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Total operating earnings
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295 | 199 | 758 | 376 | ||||||||||||
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Total asset impairments and restructuring charges, net
|
-- | -- | 3 | 23 | ||||||||||||
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Total operating earnings excluding item
|
295 | 199 | 761 | 399 | ||||||||||||
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Other (3)
|
||||||||||||||||
|
Operating loss
|
(15 | ) | (8 | ) | (39 | ) | (29 | ) | ||||||||
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Total Eastman Chemical Company
|
||||||||||||||||
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Total operating earnings
|
$ | 280 | $ | 191 | $ | 719 | $ | 347 | ||||||||
|
Total asset impairments and restructuring charges, net
|
-- | -- | 3 | 23 | ||||||||||||
|
Total operating earnings excluding item
|
$ | 280 | $ | 191 | $ | 722 | $ | 370 | ||||||||
|
(1)
|
Primarily severance costs for a reduction in force in first quarter 2009.
|
|
(2)
|
First nine months 2010 includes restructuring charges of $3 million, primarily for severance associated with the acquisition and integration of Genovique Specialty Corporation.
|
|
(3)
|
Expenses not identifiable to an operating segment are not included in segment operating results and are shown as "other" operating losses.
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EASTMAN CHEMICAL COMPANY – EMN
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October 28, 2010
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5:00 PM EDT
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Page 5
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EARNINGS PER DILUTED SHARE EXCLUDING CERTAIN ITEM
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Third Quarter 2010
|
||||||||||||||||
|
(Dollars in millions)
|
Operating
Earnings
|
Earnings Before Tax
|
Earnings After Tax
|
Earnings Per Diluted Share
|
||||||||||||
|
As reported
|
$ | 280 | $ | 258 | $ | 170 | $ | 2.33 | (1) | |||||||
|
(1)
|
Represents a Company record quarter earnings per diluted share if the $1.35 per share gain on sale of investment in Genencor is excluded from second quarter 2005 earnings.
|
|
Third Quarter 2009
|
||||||||||||||||
|
(Dollars in millions)
|
Operating
Earnings
|
Earnings Before Tax
|
Earnings After Tax
|
Earnings Per Diluted Share
|
||||||||||||
|
As reported
|
$ | 191 | $ | 170 | $ | 101 | $ | 1.38 | ||||||||
|
First Nine Months 2010
|
||||||||||||||||
|
(Dollars in millions)
|
Operating
Earnings
|
Earnings Before Tax
|
Earnings After Tax
|
Earnings Per Diluted Share
|
||||||||||||
|
As reported
|
$ | 719 | $ | 633 | $ | 419 | $ | 5.70 | ||||||||
|
Certain Item:
|
||||||||||||||||
|
Asset impairments and restructuring charges, net
|
3 | 3 | 2 | 0.03 | ||||||||||||
|
Excluding item
|
$ | 722 | $ | 636 | $ | 421 | $ | 5.73 | ||||||||
|
First Nine Months 2009
|
||||||||||||||||
|
(Dollars in millions)
|
Operating
Earnings
|
Earnings Before Tax
|
Earnings After Tax
|
Earnings Per Diluted Share
|
||||||||||||
|
As reported
|
$ | 347 | $ | 278 | $ | 168 | $ | 2.29 | ||||||||
|
Certain Item:
|
||||||||||||||||
|
Asset impairments and restructuring charges, net
|
23 | 23 | 14 | 0.20 | ||||||||||||
|
Excluding item
|
$ | 370 | $ | 301 | $ | 182 | $ | 2.49 | ||||||||
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EASTMAN CHEMICAL COMPANY – EMN
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October 28, 2010
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5:00 PM EDT
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Page 6
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|
Third Quarter
|
First Nine Months
|
|||||||||||||||
|
(Dollars in millions)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
|
Cash flows from operating activities
|
||||||||||||||||
|
Net earnings
|
$ | 170 | $ | 101 | $ | 419 | $ | 168 | ||||||||
|
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
|
||||||||||||||||
|
Depreciation and amortization
|
73 | 69 | 212 | 203 | ||||||||||||
|
Provision for deferred income taxes
|
40 | 25 | 52 | 165 | ||||||||||||
|
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:
|
||||||||||||||||
|
(Increase) decrease in trade receivables
|
36 | 17 | (397 | ) | (35 | ) | ||||||||||
|
(Increase) decrease in inventories
|
(10 | ) | (50 | ) | (100 | ) | 141 | |||||||||
|
Increase (decrease) in trade payables
|
(34 | ) | 47 | 56 | (8 | ) | ||||||||||
|
Increase (decrease) in liabilities for employee benefits and incentive pay
|
19 | 8 | 9 | (14 | ) | |||||||||||
|
Other items, net
|
22 | 114 | 46 | 48 | ||||||||||||
|
Net cash provided by operating activities
|
316 | 331 | 297 | 668 | ||||||||||||
|
Cash flows from investing activities
|
||||||||||||||||
|
Additions to properties and equipment
|
(57 | ) | (64 | ) | (133 | ) | (268 | ) | ||||||||
|
Proceeds from sale of assets and investments
|
-- | -- | 11 | 25 | ||||||||||||
|
Acquisitions and investments in joint ventures
|
-- | (16 | ) | (189 | ) | (52 | ) | |||||||||
|
Additions to capitalized software
|
(2 | ) | (2 | ) | (5 | ) | (6 | ) | ||||||||
|
Other items, net
|
(7 | ) | (5 | ) | (7 | ) | (12 | ) | ||||||||
|
Net cash used in investing activities
|
(66 | ) | (87 | ) | (323 | ) | (313 | ) | ||||||||
|
Cash flows from financing activities
|
||||||||||||||||
|
Net increase in commercial paper, credit facility and other borrowings
|
(1 | ) | 14 | -- | 23 | |||||||||||
|
Repayment of borrowings
|
(4 | ) | (14 | ) | (4 | ) | (16 | ) | ||||||||
|
Dividends paid to stockholders
|
(31 | ) | (32 | ) | (95 | ) | (96 | ) | ||||||||
|
Treasury stock purchases
|
(15 | ) | -- | (68 | ) | -- | ||||||||||
|
Proceeds from stock option exercises and other items
|
8 | 6 | 41 | 15 | ||||||||||||
|
Net cash used in financing activities
|
(43 | ) | (26 | ) | (126 | ) | (74 | ) | ||||||||
|
Effect of exchange rate changes on cash and cash equivalents
|
-- | -- | 1 | -- | ||||||||||||
|
Net change in cash and cash equivalents
|
207 | 218 | (151 | ) | 281 | |||||||||||
|
Cash and cash equivalents at beginning of period
|
435 | 450 | 793 | 387 | ||||||||||||
|
Cash and cash equivalents at end of period
|
$ | 642 | $ | 668 | $ | 642 | $ | 668 | ||||||||
|
EASTMAN CHEMICAL COMPANY – EMN
|
October 28, 2010
|
|
5:00 PM EDT
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Page 7
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Third Quarter
|
First Nine Months
|
|||||||||||||||
|
(Dollars in millions)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
|
Net cash provided by operating activities
|
$ | 316 | $ | 331 | $ | 297 | $ | 668 | ||||||||
|
Impact of adoption of amended accounting guidance (1)
|
-- | -- | 200 | -- | ||||||||||||
|
Net cash provided by operating activities excluding item
|
316 | 331 | 497 | 668 | ||||||||||||
|
Additions to properties and equipment
|
(57 | ) | (64 | ) | (133 | ) | (268 | ) | ||||||||
|
Dividends paid to stockholders
|
(32 | ) | (32 | ) | (96 | ) | (96 | ) | ||||||||
|
Free Cash Flow
|
$ | 227 | $ | 235 | $ | 268 | $ | 304 | ||||||||
|
(1)
|
First nine months 2010 cash from operating activities reflected the adoption of amended accounting guidance for transfers of financial assets which resulted in $200 million of receivables, which were previously accounted for as sold and removed from the balance sheet when transferred under the accounts receivable securitization program, being included on the first quarter balance sheet as trade receivables, net. This increase in receivables reduced cash from operations by $200 million in first quarter 2010.
|
|
September 30,
|
December 31,
|
|||||||
|
(Dollars in millions)
|
2010
|
2009
|
||||||
|
Current Assets
|
$ | 2,101 | $ | 1,735 | ||||
|
Net Properties and Equipment
|
3,166 | 3,110 | ||||||
|
Other Assets
|
722 | 670 | ||||||
|
Total Assets
|
$ | 5,989 | $ | 5,515 | ||||
|
Payables and Other Current Liabilities
|
$ | 936 | $ | 800 | ||||
|
Short-term Borrowings
|
4 | -- | ||||||
|
Long-term Borrowings
|
1,602 | 1,604 | ||||||
|
Other Liabilities
|
1,637 | 1,598 | ||||||
|
Stockholders’ Equity
|
1,810 | 1,513 | ||||||
|
Total Liabilities and Stockholders’ Equity
|
$ | 5,989 | $ | 5,515 | ||||