fourth at the end of each of the first four years. Activity under
the plans is summarized below.
Shares Under Option
Balance, December 30,1977
Balance, December 29,1978
Balance, December 28,1979
At December 28,1979 options for 742,315 shares were exercisable and 504,975 shares were available for granting of additional options. No accounting is made for options until they are
The purchase price for the shares reserved under the employee qualified stock purchase plan is the market value at the
beginning or end of the plan year, whichever is less.
BUSINESS SEGMENT INFORMATION
A summary of operations by principal business segment for
the five fiscal years ended December 28,1979 appears on page
19. Also presented are net assets employed, identifiable assets,
capital expenditures and acquisitions, and depreciation and
amortization by principal business segment.
QUARTERLY FINANCIAL RESULTS (Unaudited)
The following is a summary of selected quarterly financial
data for the years ended December 28,1979 and December
29,1978 (in thousands except per share amounts).
$1,249,595 $ 95,299 $54,300
*The sum of the earnings per share for the four quarters is
different from the annual earnings per share as a result of computing the quarterly and annual amounts on weighted average
number of shares in the respective periods.
**Each of the first three quarters consists of 12 weeks and the
fourth quarter includes 16 weeks.
CONSTANT DOLLAR INFORMATION (Unaudited)
The accelerating rate of inflation and the rapid changes in
prices of goods and services have focused attention on the inadequacies of traditional measures of income and assets. Financial statements prepared under generally accepted accounting
principles report the actual number of dollars received or ex
pended without regard to changes in the purchasing power of the
currency or changes in the cost of goods consumed. Investments
made over extended periods of time are added together as
though the dollars involved were common units of measurement.
Amortization of these prior-period costs is deducted from current
revenues in calculations of net income even though the dollars
involved represent different amounts of purchasing power.
The following Constant Dollar information presents historical
cost financial information which has been adjusted for changes
that have occurred in the general purchasing power of the dollar
as measured by the Consumer Price Index. Therefore, it is the
traditional financial information restated to a common unit of
measurement, average 1979 dollars.
Summary of Consolidated Income Adjusted for Changing Prices
for the Year Ended December 28,1979
(Average 1979 dollars)
Net income as reported
Constant dollar adjustments
Cost of sales
Depreciation and amortization of
property and equipment
Constant dollar net income
Constant dollar gain from decline in purchasing power
of net amounts owed
Five-Year Comparison of Selected Supplementary Financial Data
Adjusted for the Effects of Changing Prices
(Average 1979 dollars)
Constant Dollar net income per share was $1.31 for 1979,
excluding the gain from the decline in purchasing power of net
amounts owed. Shareholders' equity is $703,598,000 in average
In accordance with Statement of Financial Accounting Standards No. 33, no adjustment has been made to the provision for
income taxes. Accordingly, the effective income tax rate increases
from 42.3% as reported in the financial statements to 52.4% in
the 1979 Constant Dollar calculations.
REPLACEMENT COST (Unaudited)
The Company's annual report on Form 10-K contains unaudited information with respect to estimated replacement cost
of productive capacity as of December 28,1979 and December
29,1978 and the approximate effect which replacement cost
would have had on the computation of depreciation expense for
the years then ended. Replacement cost of inventories would be
essentially the same as historical cost.
On January 30, 1980, the Company announced an offer to
purchase up to 10,600,000 shares of its outstanding common
stock for $23.50 per share. At the close of the offer on February
28,1980, approximately 7,500,000 shares had been tendered.