NEW
JERSEY
|
16-0417150
|
(State
of incorporation)
|
(IRS
Employer Identification No.)
|
343
STATE STREET, ROCHESTER, NEW YORK
|
14650
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Title of each Class
|
Number of shares Outstanding at
July 25, 2008
|
Common
Stock, $2.50 par value
|
288,193,433
|
Page
|
||
3
|
||
3
|
||
4
|
||
5
|
||
6
|
||
7
|
||
26
|
||
41
|
||
47
|
||
47
|
||
48
|
||
48
|
||
49
|
||
50
|
||
51
|
||
Three
Months Ended
|
Six
Months Ended
|
||||||||||||||||
June
30,
|
June
30,
|
||||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Net
sales
|
$ | 2,485 | $ | 2,468 | $ | 4,578 | $ | 4,548 | |||||||||
Cost
of goods sold
|
1,900 | 1,824 | 3,569 | 3,476 | |||||||||||||
Gross
profit
|
585 | 644 | 1,009 | 1,072 | |||||||||||||
Selling,
general and administrative expenses
|
435 | 435 | 820 | 829 | |||||||||||||
Research
and development costs
|
142 | 136 | 282 | 277 | |||||||||||||
Restructuring
costs (curtailment gains) and other
|
(3 | ) | 295 | (13 | ) | 380 | |||||||||||
Other
operating (income) expenses, net
|
(7 | ) | (33 | ) | (17 | ) | (39 | ) | |||||||||
Earnings
(loss) from continuing operations before interest
expense, other income
(charges), net and income taxes
|
18 | (189 | ) | (63 | ) | (375 | ) | ||||||||||
Interest
expense
|
26 | 31 | 54 | 56 | |||||||||||||
Other
income (charges), net
|
(5 | ) | 23 | 30 | 41 | ||||||||||||
Loss
from continuing operations before income taxes
|
(13 | ) | (197 | ) | (87 | ) | (390 | ) | |||||||||
Benefit
for income taxes
|
(213 | ) | (43 | ) | (173 | ) | (61 | ) | |||||||||
Earnings
(loss) from continuing operations
|
200 | (154 | ) | 86 | (329 | ) | |||||||||||
Earnings
from discontinued operations, net of income taxes
|
295 | 729 | 294 | 753 | |||||||||||||
NET
EARNINGS
|
$ | 495 | $ | 575 | $ | 380 | $ | 424 | |||||||||
Basic
net earnings (loss) per share:
|
|||||||||||||||||
Continuing
operations
|
$ | 0.69 | $ | (0.53 | ) | $ | 0.30 | $ | (1.14 | ) | |||||||
Discontinued
operations
|
1.03 | 2.53 | 1.02 | 2.61 | |||||||||||||
Total
|
$ | 1.72 | $ | 2.00 | $ | 1.32 | $ | 1.47 | |||||||||
Diluted
net earnings (loss) per share:
|
|||||||||||||||||
Continuing
operations
|
$ | 0.66 | $ | (0.53 | ) | $ | 0.30 | $ | (1.14 | ) | |||||||
Discontinued
operations
|
0.96 | 2.53 | 1.01 | 2.61 | |||||||||||||
Total
|
$ | 1.62 | $ | 2.00 | $ | 1.31 | $ | 1.47 | |||||||||
Number
of common shares used in basic net earnings (loss)
per share
|
288.2 | 287.6 | 288.2 | 287.5 | |||||||||||||
Incremental
shares from assumed issuance of unvested share-based
awards
|
1.6 | - | 1.5 | - | |||||||||||||
Convertible
securities
|
18.5 | - | - | - | |||||||||||||
Number
of common shares used in diluted net earnings (loss)
per share
|
308.3 | 287.6 | 289.7 | 287.5 | |||||||||||||
Cash
dividends declared per share
|
$ | 0.25 | $ | 0.25 | $ | 0.25 | $ | 0.25 | |||||||||
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Retained
earnings at beginning of period
|
$ | 6,348 | $ | 5,810 | $ | 6,474 | $ | 5,967 | ||||||||
Net
earnings
|
495 | 575 | 380 | 424 | ||||||||||||
Cash
dividends declared
|
(72 | ) | (72 | ) | (72 | ) | (72 | ) | ||||||||
Gain
(loss) from issuance of treasury stock
|
1 | (8 | ) | (10 | ) | (14 | ) | |||||||||
Retained
earnings at end of period
|
$ | 6,772 | $ | 6,305 | $ | 6,772 | $ | 6,305 | ||||||||
(in
millions)
|
June
30,
|
December
31,
|
||||||
|
2008
|
2007
|
||||||
ASSETS
|
||||||||
Current
Assets
|
||||||||
Cash
and cash equivalents
|
$ | 2,308 | $ | 2,947 | ||||
Receivables,
net
|
1,892 | 1,939 | ||||||
Inventories,
net
|
1,087 | 943 | ||||||
Other
current assets
|
222 | 224 | ||||||
Total current assets
|
5,509 | 6,053 | ||||||
Property,
plant and equipment, net of accumulated depreciation of $5,572
and $5,516, respectively
|
1,712 | 1,811 | ||||||
Goodwill
|
1,726 | 1,657 | ||||||
Other
long-term assets
|
4,085 | 4,138 | ||||||
TOTAL
ASSETS
|
$ | 13,032 | $ | 13,659 | ||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
||||||||
Current
Liabilities
|
||||||||
Accounts
payable and other current liabilities
|
$ | 3,137 | $ | 3,794 | ||||
Short-term
borrowings
|
59 | 308 | ||||||
Accrued
income and other taxes
|
242 | 344 | ||||||
Total current liabilities
|
3,438 | 4,446 | ||||||
Long-term
debt, net of current portion
|
1,296 | 1,289 | ||||||
Pension
and other postretirement liabilities
|
3,300 | 3,444 | ||||||
Other
long-term liabilities
|
1,475 | 1,451 | ||||||
Total liabilities
|
9,509 | 10,630 | ||||||
Commitments
and Contingencies (Note 6)
|
||||||||
Shareholders'
Equity
|
||||||||
Common
stock, $2.50 par value
|
978 | 978 | ||||||
Additional
paid in capital
|
896 | 889 | ||||||
Retained
earnings
|
6,772 | 6,474 | ||||||
Accumulated
other comprehensive income
|
627 | 452 | ||||||
9,273 | 8,793 | |||||||
Less:
Treasury stock, at cost
|
5,750 | 5,764 | ||||||
Total shareholders’ equity
|
3,523 | 3,029 | ||||||
TOTAL
LIABILITIES AND
|
||||||||
SHAREHOLDERS’
EQUITY
|
$ | 13,032 | $ | 13,659 | ||||
Six
Months Ended
|
||||||||
June
30,
|
||||||||
(in
millions)
|
2008
|
2007
|
||||||
Cash
flows from operating activities:
|
||||||||
Net
earnings
|
$ | 380 | $ | 424 | ||||
Adjustments
to reconcile to net cash used in operating activities:
|
||||||||
Earnings
from discontinued operations, net of income taxes
|
(294 | ) | (753 | ) | ||||
Depreciation
and amortization
|
252 | 446 | ||||||
Gain
on sales of businesses/assets
|
(5 | ) | (48 | ) | ||||
Non-cash
restructuring costs, asset impairments and other charges
|
1 | 274 | ||||||
Provision
for deferred income taxes
|
102 | 80 | ||||||
Decrease
in receivables
|
55 | 49 | ||||||
Increase
in inventories
|
(130 | ) | (149 | ) | ||||
Decrease
in liabilities excluding borrowings
|
(921 | ) | (937 | ) | ||||
Other
items, net
|
(49 | ) | (81 | ) | ||||
Total
adjustments
|
(989 | ) | (1,119 | ) | ||||
Net
cash used in continuing operations
|
(609 | ) | (695 | ) | ||||
Net
cash provided by (used in) discontinued operations
|
299 | (30 | ) | |||||
Net
cash used in operating activities
|
(310 | ) | (725 | ) | ||||
Cash
flows from investing activities:
|
||||||||
Additions
to properties
|
(123 | ) | (125 | ) | ||||
Net
proceeds from sales of businesses/assets
|
57 | 116 | ||||||
Acquisitions,
net of cash acquired
|
(35 | ) | (2 | ) | ||||
Marketable
securities - sales
|
95 | 77 | ||||||
Marketable
securities - purchases
|
(96 | ) | (85 | ) | ||||
Net
cash used in continuing operations
|
(102 | ) | (19 | ) | ||||
Net
cash provided by discontinued operations
|
- | 2,335 | ||||||
Net
cash (used in) provided by investing activities
|
(102 | ) | 2,316 | |||||
Cash
flows from financing activities:
|
||||||||
Proceeds
from other borrowings
|
92 | 16 | ||||||
Repayment
of other borrowings
|
(329 | ) | (1,166 | ) | ||||
Exercise
of employee stock options
|
- | 5 | ||||||
Net
cash used in financing activities
|
(237 | ) | (1,145 | ) | ||||
Effect
of exchange rate changes on cash
|
10 | 10 | ||||||
Net
(decrease) increase in cash and cash equivalents
|
(639 | ) | 456 | |||||
Cash
and cash equivalents, beginning of period
|
2,947 | 1,469 | ||||||
Cash
and cash equivalents, end of period
|
$ | 2,308 | $ | 1,925 | ||||
·
|
Level
1 inputs are quoted prices (unadjusted) in active markets for identical
assets or liabilities that the reporting entity has the ability to access
at the measurement date.
|
·
|
Level
2 inputs are inputs, other than quoted prices included within Level 1,
which are observable for the asset or liability, either directly or
indirectly.
|
· | Level 3 inputs are unobservable inputs. |
Fair
Value Measurements at Reporting Date Using
|
||||||||
(in
millions)
|
Total
Financial Assets & Liabilities
|
Significant
Other Observable Inputs
|
||||||
Description
|
As of
June 30, 2008
|
(Level 2)
|
||||||
Financial
Assets
|
||||||||
Foreign
currency forward contracts
|
$ | 16 | $ | 16 | ||||
Total
|
$ | 16 | $ | 16 | ||||
Financial
Liabilities
|
||||||||
Foreign
currency forward contracts
|
$ | (62 | ) | $ | (62 | ) | ||
Silver
forward contracts
|
(2 | ) | (2 | ) | ||||
Total
|
$ | (64 | ) | $ | (64 | ) | ||
As
of
|
||||||||
June
30,
|
December
31,
|
|||||||
(in
millions)
|
2008
|
2007
|
||||||
Trade
receivables
|
$ | 1,627 | $ | 1,697 | ||||
Miscellaneous
receivables
|
265 | 242 | ||||||
Total
(net of allowances of $107 and $114 as of June
30, 2008 and December 31, 2007, respectively)
|
$ | 1,892 | $ | 1,939 | ||||
As of
|
||||||||
(in
millions)
|
June
30,
|
December
31,
|
||||||
2008
|
2007
|
|||||||
Finished
goods
|
$ | 668 | $ | 537 | ||||
Work
in process
|
237 | 235 | ||||||
Raw
materials
|
182 | 171 | ||||||
Total
|
$ | 1,087 | $ | 943 | ||||
(in
millions)
|
As
of June 30, 2008
|
|||||||||||||||
Film,
|
||||||||||||||||
Consumer
|
Photofinishing
|
|
||||||||||||||
Digital Imaging |
and
Entertainment
|
Graphic Communications |
Consolidated
|
|||||||||||||
Group
|
Group
|
Group
|
Total
|
|||||||||||||
Balance
as of December 31, 2007
|
$ | 204 | $ | 601 | $ | 852 | $ | 1,657 | ||||||||
Additions
|
- | - | 24 | 24 | ||||||||||||
Purchase
accounting adjustments
|
- | - | 6 | 6 | ||||||||||||
Currency
translation adjustments
|
3 | 24 | 12 | 39 | ||||||||||||
Balance
as of June 30, 2008
|
$ | 207 | $ | 625 | $ | 894 | $ | 1,726 | ||||||||
(in
millions)
|
As
of June 30, 2008
|
||||||||||||
Gross
Carrying
|
Accumulated
|
Weighted-Average
|
|||||||||||
Amount
|
Amortization
|
Net
|
Amortization
Period
|
||||||||||
Technology-based
|
$ | 336 | $ | 190 | $ | 146 |
7
years
|
||||||
Customer-related
|
290 | 146 | 144 |
10
years
|
|||||||||
Other
|
59 | 39 | 20 |
9
years
|
|||||||||
Total
|
$ | 685 | $ | 375 | $ | 310 |
8
years
|
||||||
(in
millions)
|
As
of December 31, 2007
|
||||||||||||
Gross
Carrying
|
Accumulated
|
Weighted-Average
|
|||||||||||
Amount
|
Amortization
|
Net
|
Amortization
Period
|
||||||||||
Technology-based
|
$ | 326 | $ | 166 | $ | 160 |
7
years
|
||||||
Customer-related
|
281 | 125 | 156 |
10
years
|
|||||||||
Other
|
82 | 36 | 46 |
8
years
|
|||||||||
Total
|
$ | 689 | $ | 327 | $ | 362 |
8
years
|
||||||
2008
|
$ | 40 | |
2009
|
76 | ||
2010
|
65 | ||
2011
|
42 | ||
2012
|
27 | ||
2013
and thereafter
|
60 | ||
Total
|
$ | 310 | |
(dollars
in millions)
|
Three
Months Ended
|
Six
Months Ended
|
||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Loss
from continuing operations before income taxes
|
$ | (13 | ) | $ | (197 | ) | $ | (87 | ) | $ | (390 | ) | ||||
Benefit
for income taxes
|
$ | (213 | ) | $ | (43 | ) | $ | (173 | ) | $ | (61 | ) | ||||
Effective
tax rate
|
1638.5 | % | 21.8 | % | 198.9 | % | 15.6 | % | ||||||||
Benefit
for income taxes @ 35%
|
$ | (5 | ) | $ | (69 | ) | $ | (30 | ) | $ | (137 | ) | ||||
Difference
between tax at effective vs. statutory rate
|
$ | (208 | ) | $ | 26 | $ | (143 | ) | $ | 76 | ||||||
As
of
|
||||||||
(in
millions)
|
June
30,
|
December
31,
|
||||||
2008
|
2007
|
|||||||
Kodak
Park site, Rochester, NY
|
$ | 65 | $ | 63 | ||||
Other
operating sites
|
17 | 19 | ||||||
Former
operating sites
|
22 | 23 | ||||||
Sites
associated with the non-imaging health business sold in
1994
|
19 | 20 | ||||||
Total
|
$ | 123 | $ | 125 | ||||
Asset
retirement obligations as of December 31, 2007
|
$ | 64 | ||
Liabilities
incurred in the current period
|
5 | |||
Liabilities
settled in the current period
|
(8 | ) | ||
Accretion
expense
|
1 | |||
Revisions
in estimated cash flows
|
2 | |||
Currency
translation adjustments
|
1 | |||
Asset
retirement obligations as of June 30, 2008
|
$ | 65 | ||
(in
millions)
|
As
of June 30, 2008
|
|||||||
Maximum Amount
|
Amount Outstanding
|
|||||||
Customer
amounts due to banks and leasing companies
|
$ | 149 | $ | 85 | ||||
Other
third-parties
|
2 | 1 | ||||||
Total
guarantees of customer debt and other obligations
|
$ | 151 | $ | 86 | ||||
Accrued
warranty obligations as of December 31, 2007
|
$ | 44 | |
Actual
warranty experience during 2008
|
(24 | ) | |
2008
warranty provisions
|
26 | ||
Accrued
warranty obligations as of June 30, 2008
|
$ | 46 | |
Deferred
revenue as of December 31, 2007
|
$ | 148 | |
New
extended warranty and maintenance arrangements in 2008
|
188 | ||
Recognition
of extended warranty and maintenance arrangement revenue in
2008
|
(182 | ) | |
Deferred
revenue as of June 30, 2008
|
$ | 154 | |
Other
|
||||||||||||||||||||||||||||
Balance
|
Adjustments
|
Balance
|
||||||||||||||||||||||||||
March
31,
|
Costs
|
Cash
|
Non-cash
|
and
|
June
30,
|
|||||||||||||||||||||||
(in
millions)
|
2008
|
Incurred
|
Reversals
|
Payments
|
Settlements
|
Reclasses
(1)
|
2008
|
|||||||||||||||||||||
Severance
and curtailments
|
$ | 80 | $ | (3 | ) | $ | - | $ | (24 | ) | $ | - | $ | 3 | $ | 56 | ||||||||||||
Exit
costs
|
26 | 2 | (3 | ) | (6 | ) | - | 2 | 21 | |||||||||||||||||||
Total
reserve
|
$ | 106 | $ | (1 | ) | $ | (3 | ) | $ | (30 | ) | $ | - | $ | 5 | $ | 77 | |||||||||||
Long-lived asset impairments
and inventory
write-downs
|
$ | - | $ | 1 | $ | - | $ | - | $ | (2 | ) | $ | 1 | $ | - | |||||||||||||
Accelerated depreciation
|
$ | - | $ | 2 | $ | - | $ | - | $ | (2 | ) | $ | - | $ | - | |||||||||||||
Total
of 2004-2007 Program
|
$ | 106 | $ | 2 | $ | (3 | ) | $ | (30 | ) | $ | (4 | ) | $ | 6 | $ | 77 | |||||||||||
(1)
|
The
Other Adjustments and Reclasses of $6 million represent adjustments to the
restructuring reserve including (1) environmental remediation credits of
$2 million, and (2) additions to the reserve of $4 million for on-going
rationalization charges, including $3 million for severance and $1 million
for asset impairments. The $4 million of on-going
rationalization charges is reported as follows in the accompanying
Consolidated Statement of Operations for the three months ended June 30,
2008: $2 million in selling, general and administrative
expenses, and $2 million in cost of goods
sold.
|
Long-lived
Asset
|
||||||||||||||||||||
Exit
|
Impairments
|
|||||||||||||||||||
Severance
|
Costs
|
and
Inventory
|
Accelerated
|
|||||||||||||||||
(dollars
in millions)
|
Reserve
|
Reserve
|
Total
|
Write-downs
|
Depreciation
|
|||||||||||||||
2004
charges - continuing operations
|
$ | 405 | $ | 95 | $ | 500 | $ | 156 | $ | 152 | ||||||||||
2004
charges - discontinued operations
|
13 | 4 | 17 | 1 | - | |||||||||||||||
2004
reversals - continuing operations
|
(6 | ) | (1 | ) | (7 | ) | - | - | ||||||||||||
2004
utilization
|
(169 | ) | (47 | ) | (216 | ) | (157 | ) | (152 | ) | ||||||||||
2004
other adj. & reclasses
|
24 | (15 | ) | 9 | - | - | ||||||||||||||
Balance
as of 12/31/04
|
267 | 36 | 303 | - | - | |||||||||||||||
2005
charges - continuing operations
|
472 | 82 | 554 | 160 | 391 | |||||||||||||||
2005
charges - discontinued operations
|
25 | 2 | 27 | 1 | - | |||||||||||||||
2005
reversals - continuing operations
|
(3 | ) | (6 | ) | (9 | ) | - | - | ||||||||||||
2005
utilization
|
(377 | ) | (95 | ) | (472 | ) | (161 | ) | (391 | ) | ||||||||||
2005
other adj. & reclasses
|
(113 | ) | 4 | (109 | ) | - | - | |||||||||||||
Balance
as of 12/31/05
|
271 | 23 | 294 | - | - | |||||||||||||||
2006
charges - continuing operations
|
266 | 66 | 332 | 97 | 273 | |||||||||||||||
2006
charges - discontinued operations
|
52 | 3 | 55 | 3 | 12 | |||||||||||||||
2006
reversals - continuing operations
|
(3 | ) | (1 | ) | (4 | ) | - | - | ||||||||||||
2006
utilization
|
(416 | ) | (67 | ) | (483 | ) | (100 | ) | (285 | ) | ||||||||||
2006
other adj. & reclasses
|
58 | - | 58 | - | - | |||||||||||||||
Balance
as of 12/31/06
|
228 | 24 | 252 | - | - | |||||||||||||||
2007
charges - continuing operations
|
145 | 129 | 274 | 282 | 107 | |||||||||||||||
2007
charges - discontinued operations
|
20 | 4 | 24 | - | - | |||||||||||||||
2007
reversals - continuing operations
|
(1 | ) | - | (1 | ) | - | - | |||||||||||||
2007
utilization
|
(289 | ) | (129 | ) | (418 | ) | (282 | ) | (107 | ) | ||||||||||
2007
other adj. & reclasses
|
26 | 2 | 28 | - | - | |||||||||||||||
Balance
as of 12/31/07
|
129 | 30 | 159 | - | - | |||||||||||||||
Q1
2008 charges - continuing operations
|
(12 | ) | 2 | (10 | ) | - | - | |||||||||||||
Q1
2008 utilization
|
(44 | ) | (6 | ) | (50 | ) | - | - | ||||||||||||
Q1
2008 other adj. & reclasses
|
7 | - | 7 | - | - | |||||||||||||||
Balance
as of 3/31/08
|
80 | 26 | 106 | - | - | |||||||||||||||
Q2
2008 charges - continuing operations
|
(3 | ) | 2 | (1 | ) | 1 | 2 | |||||||||||||
Q2
2008 reversals - continuing operations
|
- | (3 | ) | (3 | ) | - | - | |||||||||||||
Q2
2008 utilization
|
(24 | ) | (6 | ) | (30 | ) | (2 | ) | (2 | ) | ||||||||||
Q2
2008 other adj. & reclasses
|
3 | 2 | 5 | 1 | - | |||||||||||||||
Balance
as of 6/30/08
|
$ | 56 | $ | 21 | $ | 77 | $ | - | $ | - | ||||||||||
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||||||||||||||||||
(in
millions)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||||||||||||||||||
U.S.
|
Non-U.S.
|
U.S.
|
Non-U.S.
|
U.S.
|
Non-U.S.
|
U.S.
|
Non-U.S.
|
|||||||||||||||||||||||||
Service
cost
|
$ | 13 | $ | 6 | $ | 18 | $ | 7 | $ | 27 | $ | 12 | $ | 39 | $ | 14 | ||||||||||||||||
Interest
cost
|
77 | 57 | 78 | 50 | 154 | 114 | 158 | 98 | ||||||||||||||||||||||||
Expected
return on plan assets
|
(136 | ) | (69 | ) | (136 | ) | (61 | ) | (272 | ) | (137 | ) | (272 | ) | (122 | ) | ||||||||||||||||
Amortization
of:
|
||||||||||||||||||||||||||||||||
Recognized
net actuarial loss
|
1 | 16 | 1 | 15 | 2 | 32 | 3 | 34 | ||||||||||||||||||||||||
Pension
(income) expense before special
termination benefits
and curtailments
|
(45 | ) | 10 | (39 | ) | 11 | (89 | ) | 21 | (72 | ) | 24 | ||||||||||||||||||||
Special
termination benefits
|
1 | - | 15 | 2 | 6 | 1 | 28 | 7 | ||||||||||||||||||||||||
Curtailment
gains
|
(3 | ) | - | (15 | ) | (4 | ) | (12 | ) | - | (15 | ) | (3 | ) | ||||||||||||||||||
Settlement
gains
|
- | - | (38 | ) | (4 | ) | - | - | (38 | ) | (4 | ) | ||||||||||||||||||||
Net
pension (income) expense
|
(47 | ) | 10 | (77 | ) | 5 | (95 | ) | 22 | (97 | ) | 24 | ||||||||||||||||||||
Other
plans including
unfunded plans
|
- | 3 | - | 2 | - | 5 | - | 3 | ||||||||||||||||||||||||
Total
net pension (income) expense from
continuing operations
|
$ | (47 | ) | $ | 13 | $ | (77 | ) | $ | 7 | $ | (95 | ) | $ | 27 | $ | (97 | ) | $ | 27 | ||||||||||||
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
(in
millions)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Service
cost
|
$ | 2 | $ | 2 | $ | 4 | $ | 4 | ||||||||
Interest
cost
|
39 | 41 | 78 | 82 | ||||||||||||
Amortization
of:
|
||||||||||||||||
Prior
service credit
|
(10 | ) | (9 | ) | (20 | ) | (20 | ) | ||||||||
Actuarial
loss
|
5 | 12 | 11 | 27 | ||||||||||||
Other
postretirement benefit cost
before curtailments and
settlements
|
36 | 46 | 73 | 93 | ||||||||||||
Curtailment
gain
|
(2 | ) | (5 | ) | (7 | ) | (5 | ) | ||||||||
Settlement
gain
|
- | - | (2 | ) | - | |||||||||||
Total
net postretirement benefit
cost
|
$ | 34 | $ | 41 | $ | 64 | $ | 88 | ||||||||
For
the Three Months Ended
|
||||||||||||
June
30, 2008
|
||||||||||||
(in
millions)
|
Earnings (Numerator)
|
Shares (Denominator)
|
Per Share Amount
|
|||||||||
Basic
EPS:
|
||||||||||||
Earnings
(loss) from continuing operations available to common
stockholders
|
$ | 200 | 288.2 | $ | 0.69 | |||||||
Effect
of dilutive securities:
|
||||||||||||
Unvested
share-based awards
|
$ | - | 1.6 | |||||||||
Convertible
securities
|
$ | 5 | 18.5 | |||||||||
Diluted
EPS:
|
||||||||||||
Adjusted
earnings (loss) from continuing operations available to common
stockholders and
assumed issuances and conversions
|
$ | 205 | 308.3 | $ | 0.66 | |||||||
For
the Six Months Ended
|
||||||||||||
June
30, 2008
|
||||||||||||
(in
millions)
|
Earnings (Numerator)
|
Shares (Denominator)
|
Per Share Amount
|
|||||||||
Basic
EPS:
|
||||||||||||
Earnings
(loss) from continuing operations available to common
stockholders
|
$ | 86 | 288.2 | $ | 0.30 | |||||||
Effect
of dilutive securities:
|
||||||||||||
Unvested
share-based awards
|
$ | - | 1.5 | |||||||||
Diluted
EPS:
|
||||||||||||
Adjusted
earnings (loss) from continuing operations available to common
stockholders and
assumed issuances and conversions
|
$ | 86 | 289.7 | $ | 0.30 | |||||||
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
(in
millions)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Net
earnings
|
$ | 495 | $ | 575 | $ | 380 | $ | 424 | ||||||||
Realized
and unrealized loss from hedging activity,
net of tax
|
(7 | ) | - | (11 | ) | - | ||||||||||
Currency
translation adjustments
|
(29 | ) | 15 | 91 | 34 | |||||||||||
Pension
and other postretirement benefit plan obligation
activity, net of
tax
|
31 | 357 | 95 | 689 | ||||||||||||
Total
comprehensive income, net of tax
|