Document 91B1aaxxN5vjOVMa7jQ43Grnp

PLAINTIFF'S EXHIBIT GF-1951 Table of Contents 2 V'essage to ou' S'are'aoe's 4C"e~ ca. 8 D-c:o & Retr: 12 5u- o-'c N'ase'.a s 16 i "`e"^ ^.o^aIB CDrccaie 21 i>ec:crs snc O'nce'S 22 Revew c! Ccnsonoatec F nancia' irfcr'nat'On 25 Summary of Significant Accounting Ponces 26 Conso idatec Statements o' income 27 Ccrsondatec Statements o' Changes m Financ ai Pos non 28 Co'-sc'-cated 5aerice Sree's 30 Notes 'o Corsc"3a'ea Firapc-.a S;ate~e'',= 36 Auditors Con'or- 37 GAF P'ooucts anc Sevces 38 GAF Locations O Q> theAbout cover: 5 c `or'^e 80s anc C".~c Cao;3' ~e.\ o a~!s -evv crccuc o~ ;.nes ne.*. aoo'a'orv soace ao orocc:s a'e Des.gnea :o neic '~e cc^ca^v oreoa^e 'or me es o'1 ic~orrow GAF 12143 0 I - Qw ',^i7' - *4td i Financial Highlights Financial Highlights Not Salos Income from Continuing Operations Income from Discontinued Segments Nat Income__________________________ Earnings par Common Sharo Prima'V Conii^u'ng Discontinued Net income Fully O'luiec Continuing D'Seontmued Net income Cash Dividends par Pre`errea Share Cc^^on Share _____________ ____ 1979 975 >1,213,243,000 $1 063.291 000 > 28,183,000 S 30 399 000 ___________-- >28,183,000s' 3A~i 64. OOC 3 765 000 S 1.83 .........-- $ 1.83 S 1.82 -- S 1.62 > 1.20 > .88 S 2 01 ___25 S 2 29 S 1 76 2* S 1 97 S ' 20 s 6J Shareholders Information Ttio 1980 Annual Mooting of SharohoMors will bo haM at IOiOO a.Tuesday, April 29, at the Fairmont Hotol, Ross and Akard Streets, Dallas, Texas. Stock Transfer Agent ana Registrar C't'bann N A m Wan Street New York NY 10015 GAF offers noiOers Of its common ana arete'tea stock me ODponunity to Duy acaiticnai shares tnrougn an automatic oiviaena renvestment service aommste-ea Dy C.tiCank n a Form io-K as ;nea with the Securities anc Exchange Ccmmiss'on may ce ODtamea tree Ol Charge CywMingto GAF CORPORATION 14C Wes: 51 Street New Yo'k NY 10C20 Investor Relations GAF 12144 1 Message to our Shareholders in 1979. GAF sales from continu ing ousinesses were SI.213 mil lion compared with sales of Si .063 million the previous year Income from continuing opera tions for 1979 was $28.2 million, cr Si 83 oer share primary, com pared with S30 4 million, or $2.01 per share in 1978 Sales rise Saies of each of the company's maior sales groups-Chemical, Photo & Repro and Building Marenals-were ahead for the year Chemical direct operating profits rose substantially Photo & Repro profits were down slightly and Building Materials profits were off substantially Total direct operating profits for 1979 were 99.9 million, a slight decline rrom 1978 profits of $101.8 million. A number of operational and other factors affected net profits. Earn ings for all three saies groupings were hurl by rising costs of raw materials and energy The cost of asphalt, a petroleum product used in roofing, rose more than 25 percent in 1979. The price of silver, used in x-ray ano graphic arts products, rose througn the year ana surged upward at yearena GAF is taking steps, detailed m other parts of this report, to control costs by reduc ing its requirements for pricesensitive materials and energy. in 1979. Chemical sales world wide rose to $301 4 million from S248 8 million in 1978 Direct -'Derating profits climbed to 34.5 million from $50 6 million Profit increases achieved for sev eral GAF chemical products more than offset higher raw mate rial costs 2 Photo & Repro sales rose from $280 8 million in 1978 to $320.2 million last year, continuing the 1978 trend. New products, ser vices and manufacturing efficien cies have strengthened GAF's ability to sen/e the x-ray and graphic arts markets In repro graphics, the company overcame localized European problems and finished the year strongly. GAF is expanding its Delft, Hol land facility to improve interna tional reprographic operations. Photo & Repro direct operating profits slipped from $11 7 million in 1978 to $101 million in 1979. Price increases for photographic products were instituted in both 1979 and early 1980 to try to keep pace with cost increases. Diazo films, containing no silver, are becoming increasingly attractive as substitutes in many applications GAF is a leader m diazo technology GAF continually monitors price changes m critical materials and in this connection buys silver on an ongoing basis. In mid-1979. when many authorities predicted a drop in silver prices after a recent run-up. GAF sold silver positions short, to protect its silver inventory against a break in the price The price of silver con tinued to nse ana closeout of those contracts cost $3 million after tax. Worldwide sales of GAF puiidmg materials rose to $591.6 million m 1979. from $533.7 million in 1978 Direct operating profits were $25.3 million versus $39 5 million in 1978 Building Materials profits weTM hurt by a number of factors r' 1979. the most significant oe,rythe escalated costs of raw ma,|. rials and energy which causec = cost-price squeeze Others include shipping difficulties ear;, in the year resulting from wind storms. a slowdown in the autc industry which affected sales c GAF's automotive padding anc mastic products, a six-wee, strike at a roofing plant stan-uc expenses at the St. Louis nsu;ation plant and the discount sae ana write-off of other than tor quality sheet vinyl flooring mrtae at the Irish plant while it was - early production In i960. au:_industry difficulties and increas ing raw materials and energy costs persist. GAF continues to work towards alleviating tnese problems Other items affecting company earnings are aiscussed eisewnere m this report Tney meiuce tax changes, capitalization oi interest on construction projects and comprenensive foreign exchange effects desenoee m the International and finance sections Tne over an effect of tnese was a negative swmc c* aoout S3 million, or 22 cents oe' snare m l979compareo with 1978 Growth strategy Despite current world economic uncertainties anc operating Q'fficulties in 1979 GAF s excep tion of future growth nas not^ Dimmed The company ;s OaC'1 ing its growth strategy w t" -ao tai expenditures GAF 12145 F The new glass-mat manufac turing facility m Chester. S.C. is a case in point Now in start-up. the plant has begun to make fiber glass mat for asphalt roofing GAF has been purchasing the glass mat it uses, but plans to meet its needs internally when the plant is m full production den. N J and one at Calvert City Ky.-to supply intermediates used in making surfactants In Europe, an operation to manu facture THF (tetrahydrofuran) sol vent is being added to the joint-venture butanedio! plant in Marl. West Germany. As the largest domestic asphalt roofing manufacturer. GAF has good market penetration in most pans of the country. On the West Coast however. GAF did not pro duce roofing A new roofing plant is being built in Fontana. Cal to make giass-mat-based roofing for that region which GAF views as having great growth potential To meet demand for glass-mat 'oofing m the South. GAF is add ing a production line at its Dallas roofing plant. Other roofing plants m the South are being converted to giass mat. as well To support GAF s growth in roofing, the com pany is expanding its four min eral granules manufacturing operations in acetyiene-based chemistry, a new Dutynediol plant is under construction in Seadrift, Texas, to supply this chemical used to manufacture outanediol at the Caivert City and Texas City plants A new formaldehyde manufacturing operation at exas City is m start-up These a-e t-pcriant ingredients in acety lene oenvatives chemistry, a lieic m wmch GAF is the acknowl edged leader m the U S. iwc new alkyl phenol manufac turing operations are being aaded-one at the plant in Lin In the photographic and repro graphic areas of GAFs business, the emphasis has been on new product development and ag gressive marketing. A steady flow of new graphic arts and x-ray products is being established. Financial management GAF's ongoing program of cash conservation and improved financial management made sig nificant progress m 1979. The ratio of receivables to sales declined due to improved collec tions by centralized receivable and credit operations. Inventory management functions are being centralized, as are accounts pay able disbursement functions The company financed a signifi cant portion of its new debt, related to its capital expansions through tax exempt industrial rev enue bonds bearing an average interest rate of IV2 percent and long-term financing was arranged in Ireland at rates well below market Pretrial proceedings m GAFs antitrust suit against Eastman Kodak have oeen essentially completed and the case is ready for trial Pending judicial deci sions m another antitrust case brought by Berkey Photo against Eastman the trial of the GAF case has been delayed althougn Or. JnM Warner the GAF case is far more compre hensive and involves different facts and issues from those presented in tne Berney case The company remains confident of the successful outcome of its case The 80 s wiil not De easy suc cess will take time patience dedication and money GAF has laid the foundations for success and is detem-itnec to make the decaae aheac tne Dest m the company's history By Order of the Board of Directors Jesse Werner Chairman of the Board and President February 21 1980 ,n ; : 1 3 GAF 12146 Chemical in addition to selling butanediol. vvnch is used by others m formu lating various polymers. GAF uses this chemical Itself m manu facturing a Droao line of acetylene-basea chemicals Aiso m 1979 GAF built a for maldehyde manufacturing plant at Texas City Formaldehyde m combination with acetylene is used in making butaneoiol The new facility is now in start-up An addition to the joint-venture cnemicals plan: m West Germany was begun in 1979 to make THF (tetrahyarofuran) for Europe. THF solvent, a butanedioi derivative, is used m making magnetic tape. PVC cement and vinyl products GAF already makes THF at its Linden. NJ facility Another buta nedioi derivative. BLO (butyroiactone) solvent, con tinued on the rising sales trend of 1978 BLO solvent is used m agri cultural chemicals. Uh permits sought GAF's own agricultural chemical. Ceoha4 plant growth regulator sold well domestically and inter nationally Development work in agricultural chemicals continueo with encouraging progress Experimental use permits have oeen applied for to field test a promising new agricultural prod uct An arrangement for GAF to manufacture an agricultural chemical for another company was renewed in 1979 Polyciar - stabilize." enjoyed good sales growth during 1979. Used to clarify wine, fruit juice and beer, Polyciar stabilizer settles undesiraoie constituents and is filtered out-a desirable marketing feature. Sales of GAF s engineering ther moplastic Gafite*PBT( polybutylene terephthafate). rose substantially m 1979 While this product is stiff in the development stage, market response has been good and results are encour aging. New grades of Gafite PBT. including low warp grades, were introduced in 1979 and are under evaluation Dy potential users as substitutes for metat pans Gaftuf" PBT. a new high-impact product was introduced m early 1980 As pan of the marketing suppon for GAFs thermopiastics the company is opening a tech nical service center at its Wayne N J laboratory The center will assist in developing new applica tions and work on customers technical problems Through an intensified marketing effort, GAF gained new sales among customers who use latex as paper coating Profits were off however, as raw material costs went ud as much as 100 percent increased costs couid not be off set completely by price mcreases The company uses a large part of the lances it makes m its own resilient flooring GAF specialty cnemicals mamtainea profitaoility despite increased raw mate'ia1 costs tnrcug.n higner volumes and new plant efficiencies The company s specialty chemicals include sur factants seauestrants antioxicants textile auxiliaries loocphors and others GAF5 su'factants are used m cosmetics detergents ard other products Among applications deveiooec 1979 Igepon-1 DM-530surfac:a-' is being used to prevent winter freezing of coal stocKpiies Mcsture falling on coal storec out doors can freeze making the coa difficult to move. Spraying w r Igepon surfactant mixed with othercnemicais. inhibits tn.-s Alkyl phenol capacity Aikyi phenol intermediates are used in making surfactants a 'ie c of cnemistry oioneered oy GAF h 1979. an alkyl phenol manufac turing operation was modernizes with improved production caoapility attheCaivertC-ty Ky faci1ity A new alkyl pnenoi facnty is being added at the Lmaen Nu plant replacing an old unit Sales of mineral granules were jc sligntiy for tne year These tm, peboies ' form a au"aoie. weather-resistant surface on asphait shmgies Expansions are underway at a'l four granules facilities to meet mgher derranc The company is a maior produce' of me ceramc-coatec granules ana suop'es granules to GAF 5 Building Materials grcup as v,e as to cther manufacturers The expansion of granules capacity has seen impeaec o\ delays in achievng Environ mental Protection A gene v aporovai The crojects are ce'C molementeo as tnese cos'ace; are overcome 0;-0-7775u GAF12149 low: GAP is increasing produc tion capacity at Charmian, Pa., throa othor minoral granule* facilities. Bottom: Plant boing built at Seadrift, Txa* will make butynodlol for u*o at Texas City, Calvert City plant*. alow: Now Australian distribu tion operation handles GAP chemicals, as wall as other GAP products, sold throughout Australasia. L' 1 0 ____ " -i GAF 12150 7 Photo & I Repro Print Vac * 90 diaxoprinter being made at Vestal, N.Y. is GAFs smallest, least expensive, nonvented repro machine. Machine is designed lor small archrtec* tural, engineering firms. i Photo & Repro direct operating profits. Diazo microfilm showed particular strengtn with sales up almost 75 percent Diazo films use no silver, and as the price of that raw mate rial has escalated, the price gap between silver halide-based microfilm and diazo microfilm has broadened making the lowerpriced diazo product very attrac tive Several new customers for GAFs micrographic products entered into supply contracts in the year recently ended. The company made major strides in 1979 m the larger format diazo area which includes machines and sensitized materials tor mak ing whitepnnts and otherengineenng drawings. Sales of fluorescent diazo machines rose 33 percent for the year, with a strong rise m profits. A new line of mercury-vapor-lamp diazo machines called the GAF Series 2000 Reproduction System was introduced in late 1979 and is selling well Senes 2000 machines are highly automated ana are of modular construction, enabling customers to tailor diazo systems to their specific needs Senes 2000 includes a ormter. three different types of feeders, two different stackers ana an automatic folder New diazoprinter Another new machine, the fluores cent Print Vac 90 diazoprinter, was introduced in 1979 A small ventless macnine designed for users with low copy requirements it is the least expensive GAF non- vented diazo machine, and nas sold well Surveyors and small architectural firms, forexample can now afford theirown diazo machines The Gaflog diazopnnter, introduced in 1978 for use m the on exploration business, enjoyed appreciable sales increases in 1979. as well. Sales of GAF s x-ray films, graphic arts films and papers and special ized photographic products were 18 percent ahead of prior year levels. Profits were off substan tially. however, as the escalating cost of raw materials, in particular silver, eroded profit margins Substantial price increases were instituted in January 1980 to help relieve pressure on margins and GAF will continue to react appro priately to any further increases .n the cost of silver During the year, several addi tional hospitals and clinics around the country became GAF x-ray products customers The com pany placed new emphasis on a systems approach to selling to the medical x-ray market, stressing the diversity of the Gafmed line of films, intensifying screens and processing chemicals, comple mented by service programs GAF has reinforced its x-ray busi ness by offering new services as well as new products Construc tion was begun m 1979 on a new Gaftecn Education Center at the Wayne N J. Administrative and Research Center, where radiographic education programs will be offered to GAF customers The center is scheduled to open in the summer of 1980 New medical imaging fi'ms were developed in 1979 and are now being introduced Gafmed! Sfi S photofluorog'aphy film ana Gafmed SR CT video recorarg fnm are single emulsion films for photofluorography computerassisted tomography ana ultra sound applications These stateof-the-art diagnostic tools are gaining in popularity, as they provide more data to radiologists Graphic arts gains Several marketing advances were made m graphic arts with many mapr customers beginning to use GAF products during 1979 Fourteen of the country s 15 largest circulation metro daily newspapers now use Gaftypephototype setting paper, as do many others Sales of View-Master stereo products. Pana-Vue slides anc viewers and other GAF pictorial products were snghtiy lower for the year in the United States but rose appreciably in international markets. Introduced m Iate-t978 the Double-Vueautomatic movie viewer a battery-operated toy with which children can view' short douole features achieves broader attribution m 1979 The company is developing two new toys which are scheduled lor introduction m 1980 One is a pro jector toy. another extension of the View-Master line, the otner s a musical electronic game initial tests in which children were allowed to oiay with me new' toys under observation indicate strong potential markets for ootn GAF 12153 10 0J-CZ0*75 3 low: Double-Vue * automatic movio via war, made at OAF plant In Prograaa, Ora., provad a popu lar toy at Christmas. Bottom: Radiographic education cantor under construction at Wayne, M. J. will offer classes for OAF x-ray customers. Below: Improvements being made at OAF plant in Oelft, Holland are designed to bolster reprographic sales in interna tional markets. GAF12154 Industrial Photo Products Graphic Ars rnms & Coe-i.cais liCJLST'ia: x.rav Funs & Cnem.cais Med Co. & De'na' x-rav F.--s Processing Cnenicais iniensitving Screens & Cassenes "noioiyoeseiimg Pacers & Oen ca.s Scec'3' p-.ci: P'oojc's Pictorial Products Pic:cr.ai Si'aes Slide v'e-ye's 3-0 PLCiure Peeis 3-G VieA-e'S ver.e'3 p,Oie;:orsA Eec'icnc Ganes Reprographic Products D aze Pep'oao:''0'i Sc-noneoi & Ma:ena*s D'azc Microliims and Pci'1i-* Dupipcaiors Ovemeac Trans^arenc-es Specialty Manufacturing 11 Building Materials Roofing plant under construction at Fontana, Cal. will be GAPs first roofing facility west of the Rockies. Plant will manufacture glassbased roofing for West Coast, southwestern markets. Building Materials at the Dallas. Texas plant to be completed in 1980 The company will continue to make felt-based shingles tor northern climates, as these shingles have competitive advantages there. To improve energy use. GAF is studying a new way of saturating felt, helped by a grant from the U.S. Department of Energy The study is in its second stage having completed initial trials. If implemented nationally, tne new methods could save bil lions of Btu's a year. Timberiine shingles In 1979 new installations to make GAF Timberlme* shingles were completed at the South Bound Brook. N.J and Joliet. III. plants Demand for Timberline shingles continues to grow GAF furthered its program of developing a complete "system" of built-up roofing (or the commer cial industrial market, to enable builders to buy all elements of a complete roof from one source Gafgias" ply sheets-glassbased roofing membranes-and vent stacks were introduced Glass-based roll roofing is now made at the Tampa plant and will be made at the new plant in Fontana. Cal Another component of built-up roofing is insulation. The new St. Louis urethane operation began marring Gaftemp roof deck insu lation in commercial volume in 1979. Profitability m this area was hurt by start-up costs which over lapped into 1979 from 1978 A brief strike also hurt operations These problems have been resolved Roofing sales and profits were hurt by a six-week strike at the company s Minneapolis plant Vanguard vinyl siding sales were up from 1978 levels. Profits were off due in large part to raw material costs. As announced in 1978. the company phased out Stratalitemmeral siding in 1979, with a consequent $15 million sales reduction. In July 1979. GAF opened its first building materials supply center, in King of Prussia, Pa., a Philadel phia suburb. Designed to serve contractors and building materi als dealers, the center offers a full line of GAFroofing, siding and insulation as well as products made by others, such as rain car rying equipment, tools and caulk ing . Results have been encourag ing for a new venture of this kind and GAF is studying other locations Sales of automotive mastics and sound-deadening paddings were off substantially from 1978, due m part to the slowdown of the auto industry The company reduced manufacturing costs through con solidations and personnel reduc tions Development work continues, in order for GAF to be in a position to supply the industry when car-makers recover from current economic doldrums. Sales of sheet vinyl and vinyl tile were ahead of 1978Tevels Domestic sales held,their own or gained while increased output of the new sheet vinyl plant in Ireland boosted international sheet vinyl sales considerably Flooring distribution The Canadian flooring distribution system, begun m 1978. had strong sales in 1979. Six distribu tion centers are now open in major Canadian markets and the com pany is considering addea cen ters GAF s eight domestic flooring distribution centers also did well m 1979 Two new centers m Fresno and Sacramento Cal. are planned for early 1980. Consumer testing of new flooring patterns prior to release has helped GAF create products with broad market appeal Gafstar 7500 Series sheet vinyl was intro duced in iate-1979 to meet demand for top quality, low main tenance flooring This new floor ing. which retails for as much as most carpet, had a good initial market reception Operating profits from sheet vinyl flooring were lower than in 1978 High raw material costs, energy costs and freight rates restrained profitability Substantial expenses were also incurred at the insn plant through sate at reducec prices ana write-off cl some prod ucts made whue tne plant was m early production Gams m sales and profits were acnievea m tioor tne ana flooring felt GAF "No-Wax" Decorator floor tile and Brite-Bonafloor tie sod well in 1979 meeting the neeasol the do-it-vourself segment cl the market for attractive, mediumpriced flooring that can be installed easily. 14 GAF12157 low: Mew ClMittr, S.C. plant it In ttart-up production, making glass mat tor shinglos, roll rooting. Bottom: Building materials supply cantor in King ot Prussia, Pa., it first of its typo for OAF. Bolow: OAF's lino of automotive mastics and paddings aro made at Joliet, III. facility. Siding Products Viny: S:a>ng viry- Sofii a Fascia S.sie^s Automotive Products Auiomoii^e Scucc-aeacenng a >rsu:a''Cr' pfOCuc:s GAF12158 is International Total international sales of GAF products to customers around the world were $274.3 million in 1979. compared with $216.7 million m 1978. an increase of almost 27 percent. International profits rose 14 percent for the year. These fig ures. representing exported goods made in the United States and goods manufactured in other countries, are included in the results of the three worldwide sales groupings. Salas improvamants Approximately 20 percent of the increase in sales resulted from the effects of translating foreign sales into U S. dollars, with 80 percent resulting from price and volume increases. In addition to foreign exchange losses shown as Other Charges on the Statements of Income on page 26. and discussed in note 3, there were other related effects which lowered 1979 earnings compared with 1978 These relate primarily to the recognition of cost of sales at historic rates, as reauired by FASB-8. compared with current rates. While the effects of using historic rates were positive in both years, they were much lower in 1979, as the dollar weakened less than it had in 1978 Comparative year versus year earnings were reduced by approximately $3.5 million in 1979 because of this. Sales of GAF building materials in Europe and Canada almost dou bled in 1979. The dramatic increase resulted from the flow of sheet vinyl flooring from the new plant in Mullingar. Ireland, which went into full-scale production in 1979, and from the new Canadian flooring distribution system, described in the building materi als section of this report While the Irish plant is not yet profitable, due primarily to manufacturing prob lems at the early stages of pro duction. the difficulties have been substantially corrected and the plant is now consistently produc ing first-quality sheet vinyl flooring at a rate comparable to the com pany s established manufac turing operations in the United States. In 1979, a substantial quantity of other than top-quality product, which was made while the problems were occurring, was either written off or sold at dis count prices, negatively affecting the plant's profitability for the year International sales of the com pany s pictorial products, includ ing View-Master* stereo products, were up approximately 10 percent for the year, with new sales in Argentina and Chile and increased sales in Mexico ViewMaster stereo products sales were also increased m Canada by concentrating sales efforts on large national accounts. X- ray,graphic arts up Graphic arts and x-ray products international sales increased more than 25 percent in 1979. with notable gams m Europe. Sales of reprographic products outside of the United States in creased during the year, with sub stantial gams in Scandinavia ana the United Kingdom GAF's Dutch subsidiary saw declines m its sales of reprographic equipment and supplies to Eastern Europe and the Middle East. Sales improved somewhat in the last months of 1979 and finished the year ahead of 1978 levels, but problems persist in several pans of the world At the Dutch sub sidiary, improvements are being implemented which are expected to affect future operations positively. : Although not yet profitable consis tently, operations at the SintNiklaas, Belgium facility are improving The facility s role as a distribution center for continental Europe was expanded m 1979 with the center now handling many GAF products, including sheet vinyl flooring manufactured at the Mullingar. Ireland plant < 0 1 -OTC 7Zo<4 GAF 12159 lowi New headquarters for OW Australasia opened In 1*7* In aydney suburt. Several sales, adminIstrathre, manutaeturlnq and distribution functions have been consolidated here. Seleon Halle of sheet vinyl reedy for shipment from new plant at Mullinsar, Ireland. Plant Is new maklnp first-quality product consistently. Cost reduction On the manufacturing side. a pro gram of cost reduction through increased mechanization was instituted at Sint-NiWaas in 1979. The program is yielding results in the form of increased labor pro ductivity and improved quality control In addition to photo graphic and pictorial products produced and convened at this facility. GAF makes a line of fitters and markets filter vessels. The new butanedioi chemical plant in West Germany, a pint venture with Chemische Werke Hijis is in commercial production ano is operating at increasingly etficent levels. This plant is being expanded with the addition of a facility to manufacture THF (tetranydroturan), which is made from butanedioi Construction of the addition is complete and the new ODeration entered start-up in early 1980 general managers were appoint ed. to oversee more closely the marketing of GAF products in Europe, Africa and the Middle East, the Western Hemisphere and North Pacific, and Austral asia. A new headquarters for the European region was set up adja cent to the Colnbrook plant in the United Kingdom. New Australasia offices As part of a program to capture a greater share of the Australasian market. GAF occupied a new regional headquarters building in a suburb of Sydney This enabled the company to consolidate sev eral ot its Australian operations The new facility manufactures diazo sensitized products, func tions as a headquarters, a sales office ana serves as a warehouse and distribution center tor all GAF products sold in the region During the year. GAF reorganized 'is international operations on a oroouct group basis, similar to the aomestic organization Regional GAF 12160 17 Corporate Research and Development m GAF made significant tech transition from drawing boara tc GAF expanded its research and development department in 1979. with increased staffing and fund ing In keeping with corporate goals of optimizing the uses of price-sensitive raw materials, much of the 1979 effort was directed at developing substitute materials ano creating proaucts nological advances m emulsion and coating techniques which have led to a complete, new Gafmaticrapid access line of graphic arts films and chemistries. Q A number of new gasketing sheet products, including non-asbestos types, were developed for auto productive reality Commercial Development During 1979. the commerca: development department con cluded the sales of some GAF businesses which were invoivec in the asset redeployment d'cgram begun in 1977 that oo more with less. motive applications. Also for the auto market, the company intro A major ongoing function of the These efforts and other ongoing duced two new sound-deadening department is to bring new orco- development work have resulted m several new programs and products . products-a heat bondable mas tic membrane and high-flexibility floor pan fibrous padding ucts from the company s research and development laboratories into the marketplace Among products which entered c The company has developed a o Two new non-woven binder market development m 1979 patented metal-working lubricant. latices are being introduced were a new proprietary dielectric Antara HR-719, which is a poten which feature excellent handling film, plain paper copier transpar tial replacement for petroleum- stability and fast cure rates encies for overhead proiect.on Dased lubricants in metal-working Resiliency, hydrophilicity. solvent and several new acetylene applications The new product, resistance and good tensne chemicals and polymers for which was introduced in 1979 is strength have been imparted to applications including specialty biodegradable and is effective m the non-woven fabric solvents surfactants, aonesives very small concentrations. It and thickeners. meets a long-standing industry c A new expansion joint was devel need for a non-foaming synthetic oped for built-up roofs-another The commercial deveiODmeni aqueous lubricant element in developing a complete department also intensified is built-up roofing system efforts m support of the com = A silver optimization program is pany s custom chemica1 manu underway through which GAF is Work continues in the develop facturing ooe'ations m 197? reviewing all its silver haliaebased photographic products A number of new products which ment of new chemicals and other products Among other projects the company is continuing to pur Engineering Services GAF s engineering services make more efficient use of silver are being introduced 0 New ultrastable polyester diazo copying intermediates were intro duced m 1979. These have out sue promising new agricultural chemical applications anc new thermoplastic formulations GAF continues to investigate new fields arising from tne company s tech nological expertise department implements me company s capital expansion orogram through managing tne design and construction o' new faculties in 1979 nese proiects included standing resistance to ultraviolet light and thermal degradation, characteristics which largely elimi The researcn anc development o Completipn of constructon o' 3 department also spearheads the formaidenyae plant at me fe*as nate yellowing when the materials operating start-ups of the com City Texas facility are exoosed to ambient light pany s new plants Working on site during start-up procedures these scientists and technicians are helping to facilitate smooth -- -- --i r 6 o' 18 GAF12161 - Completion of construction of the new glass-mat plant at Chester S C a Beginning construction of a new butyneaoi plant at Seadnft Texas Bunding a major new roofing plant m Fontana. Cai Stamng major expansions of the mineral granules plants at Charmian. Pa Bound Brook, N J. and Annapolis Me freight and other logistical ele ments of manufacture become increasingly costly and increas ingly subject to rapid change, these activities have more and more impact on the company s profits. Tne new organization's central ized management is designed to control the costs of materials and logistics from the planning of purchases through customer delivery. o Completion of major electrical distripution moaermzations at the Gloucester City N.J and Jonet. ill plants. " Beginning a major expansion at re Dallas Texas rooting piant Tne engineering services Depart ment is also responsible for envi ronmental engineering and maintains programs to assure that an GAF plants are brought mto compliance with evercnanging environmental regula tors The company spent more tnan $2V2 million on air and water pollution control projects in 1979. Since GAF began its accelerated ociiution control program in 1965. 't nas spent more than S60 million on tnese projects Materials Management During 1979. GAF reorganized Purchasing distribution inven tory management and transpor tation into a single organization with the mission of overseeing tne company s materials man agement As raw materials A new customer order entry sys tem utilizing the latest computer technology and scientific materi als management techniques is being installed to provide contin ual information for forecasting, planning production levels, inventory, purchases and other functions Marketing Services A new advertising campaign for GAF resilient flooring was begun m 1979. The new approach is highly informative and is aimed at educating consumers in what to look tor in flooring in addition to beauty ana variety Another new campaign, fo' GAF Timbernne shingles snows con sumers that with Timoerime shin gles they can get the beauty of wood snakes without the draw backs of wood Severa' major cities have acted to bar new con struction witn wood snakes because of fire nazard Both these new national ad cam paigns are print-oriented, and are appearing in nome and decorat ing magazines and news magazines Aovertising tor View-Master stereo prooucts was evaed Detween print and ieievison GAFs publications ana Damag ing won several design awaras during the year Packaging forme company s Gafmea procucts tor the medical ana denta: profes sions was selectee to oe pan of a U.S State Department travelog exhibit of design excellence ana was also Honored by indcsinai Design magazine Graphics U.S A N Y cued packaging for View-Master stereo products and the company s chemicals bro chures for their hign quality. The chemicals Drochures were also honored by Art Direction maga zine Keynote, a magazine for the arts published in conjunction with GAF's classical music radio sta tion. WNCN. was selected for its design merit oy Printing industries of New York WNCN WNCN GAFs classical music FM station m New- York s metro politan area continued to grew among listeners ana advertisers In 1979 tne station s aaveh'Sing revenues rose ov more than 15 percem The station continues to De recognized by leading authorities ana publications as broadcast ing the hignest auantv audio sig nal among American stations The listening area covers most of Long Island nortnern New Jer sey New York City a"d soutnem Connection OI-OZP-007 GAF12162 19 Corporate Personnel At year-end. GAF employed Government Reletions The Washington. D C.-based 15.268 people worldwide. 911 Government Relations office suc fewer than m 1978 The company ceeded, during 1979. in increas has 11.945 employees in the ing the number and type of U S. United States government-aided research and development Droiects. A contract In 1979. approximately 6.300 of with the Department of Energy GAF's employees were repre shows indications of significant sented by 53 union locals, energy savings through new roof affiliated with 24 international ing manufacturing technology. unions. During the year, a union Other research and development was certified at Chattanooga. Tenn . and decertification was involvements with the govern ment included test and evaluation voted by office employees at Erie of new GAF dielectric films. Lake. Pa. There were six strikes during the year, resulting in a loss The office performs government of 154 days. A total of 27 labor contract administration for all GAF contracts, including pension product lines and directs govern agreements, were negotiated ment marketing activities increased sales of GAF floor tile A new. computerized human industrial x-ray film and aerial resources system implemented reconnaissance film were made in 1979 facilitates the rapid to various agencies. gathering, storage, updating, retrieval and reporting of payroll and personnel information. One The office also monitors new ana proposed regulations which purpose of this program is to main might affect the company tain an up-to-date skills inventory data bank in support of the com Management pany's policy of promoting from within whenever possibie The system will also facilitate compli ance with various regulatory agencies. In May, Richard F Bucher joined GAF and was elected senior vice president for international operations An engineering student co-op program was set up. through In July. John A. Brennan was elected senior vice president in charge of building materials He which engineering students can replaced Joseph G. Hall, who work for GAF while in school The became senior vice president for students gain valuable work marketing relations. experience while the company gams access to potential new emoloyees Several management changes and promotions were made in August They were CarlEckardt. director of market development to vice president-commercial development: Philip S Gillcrist. treasurer to vice president-floor 30 products marketing. Bernard L Kapeli. director of corporate taxa tion. to vice president-taxes. Robert E. Miller, director of finan cial planning, to vice presidentfinance'AdeleS Weisman. assistant treasurer, to treasurer Also m June. H. Philip Farnham joined the company and was elected to vice president for materials management In December. Robert F McCarthy director of chemical manufacturing, was elected a vice president. Board of Directors Two members joined the Board of Directors in 1979. In April Mr T Roland Berner was elected to the Board, filling a vacancy created when Dr, Howard S Turner chose not to stand for reelection In October. Dr Noian 6 Sommer joined the Board, suc ceeding Mr Philip B Dalton, former president chief operating officer and board member wno resigned in July. Dr, Sommer was formerly a memoer of senior managemeni with American Cyanamid Com pany anc a research chemist Of the ten members of the Board, seven are outside directors and three are officers cf GAF o: GAF 12163 i Board of Directors Officers fosse Werner* Chairman T. Roland Berner* Chairman of the Board Curtiss-Wright Corporation Peter Bosshard" Executive Vice President Credit Suisse Carter L. Burgess'* Chairman Foreign Policy Association Sam Harris' " Partner Fried. Frank. Hams, Shriver& Jacobson Juliette M. Moran Executive Vice President GAF Corporation William S. Ogden* Executive Vice President Chase Manhattan Bank. N.A. James J. O'Leary* " Economic Consultant Formerly Vice Chairman of the Board United States Trust Company of New York James T. Sherwin Executive Vice President GAP Corporation Nolan B. Sommer Formerly Senior Vice President American Cyanamid Company 'Member. Executive Committee "Member. Audit Committee Tit* SoarS of Mrocton Audit Commtttoa, consisting of outaido Ometors, moots separately with tho Indapandant eoi Uflod public accountanta and company "wnsgsmsfit at laast twlca a yaar to dlacuaa tha acopa and results of tho annual examination, Intamal accounting centrals and bsnHicant accounting manors. Jesse Werner Chairman of the Board and President Juliette M. Moran Executive Vice President Jay ft Olson Executive Vice President James T. Sherwin Executive Vice President Richard F. Smith Executive Vice President John A. Brennan Senior Vice President Richard F. Bucher Senior Vice President James M. Cloney Senior Vice President R. Power Fraser, Jr. Senior Vice President Jack F. Qow Senior Vice President Joseph Q. Hall Senior Vice President Jack Scheckowltz Senior Vice President Louis Q. Zachary Senior Vice Presioent GAF 12164 Randolph C. Bramwell Vice President John J. Butler Vice Presioent Mason B. Cooke Vice President Thomas A. Dent Vice President Carl R. Eckardt Vice President too J. Fanouf Vice President H. Philip Famham Vice President Jerome K. Full Vice President Philip S.Qillcrist Vice President Simon W. Kantor Vice President Barnard L. Kapell Vice President Robert F. McCarthy Vice President Frederick W. MeNabb, Jr. Vice President General Counse: anc Secretary Robert E. Miller Vice President Wayne H. Page Vice President Alfred P. Rimlinger Vice President Raymond W. Smith Vce President A. Eugene Stillman Vice President and Controller AdoloS.Weisms it-o "'masurer 21 Ravww of Consolidated Financial Information Schadute of Bulr>* Segments and Summary of Operations' Doiiars 'n Millions Year Ended Decemoer 31 1979 1978 1977 1976 1975 1974 Sa-es Chemical Less Intersegment Sales" Net Chemical PhotoS Reoro Buiiamg Mate'iais $ 339.4 $ 281 0 38.0 32 2 301.4 246 8 320.2 280 8 991.6 533 7 S226 4 25 5 200 9 244 4 474.2 $213 0 22 1 1909 2182 421 7 $198 1 20 9 1 77 2 202 1 372 3 $187 20 c 167 1965 360 6 c J Consolidated Sales Cost o! Products Sold Direct Operating Expenses Direct Operating Profi- 1,213.2 888.7 224.6 1.063 3 765 9 195 6 9195 665 3 164 3 830 8 592 2 152 0 751 6 5179 136 7 724 2 49S " 3` 4 6 ^ Chemical Photo & Repro 8unding Materials 64.5 10.1 25.3 50 6 11 7 39 5 45 5 34 41 0 41 0 14 44 2 42 3 67 48 0 45 6 59 42 6 Total Corporate Expenses Interest Other Income From Continuing Operations Before income Taxes 99.9 19.9 42.3 37.7 101 8 18 7 274 55 7 89 9 20 4 21 3 482 86 6 17 1 213 48 2 97 0 176 172 62 2 94 1 178 2' 8 545 P income Taxes Income From Continuing Operations income (Loss) From Discontinued Segments Net of income Taxes Net income (loss) identifiaoie Assets Chemical Photo & Repro Building Materials Corporate Assets of Discontinued Segments 9.9 28.2 25 3 30 4 __ 38 $ 28.2 S 342 s$ 182.6 163 4 239.0 241 6 346.5 296 3 655 61 6 -- 22 4 22 0 20 0 23 9 23 8 1 26 2 2B2 38 3 30 7 3 (73 2) S (47 0) (8 5) $ 197 174) $ 30 9 (22i $ 28 5 , S 3- $143 2 243 6 242 6 61 3 71 7 $192 5 326 9 205 6 52 4 -- $181 1 297 7 187 8 66 2 -- $175 2 319 7 101 4 459 -- S17F 26; 'z` 4; Total Assets s 635.6 $ 785 3 S762 4 $777 4 $732 8 $722 2 56*^ Additions to Property. Piani and Equipment Chemical PnoioS Repro Buiioing Materials Corporate Total Deprecation Chemical Photo & Repro Building Materials Corporate Total s 15.3 s 8 5 6.3 90 34.6 32 4 2.6 1 2 s 56.8 $ 51 i s 8.7 s 84 7.7 76 11.4 1.4 96 14 s 26.2 $ 27 0 $ 129 11 0 27 B 6 $ 52 3 S 80 79 84 13 $ 25 6 S 12 7 168 17 7 14 $ 48 6 $ 78 64 85 13 $ 24 0 $ii` *5 0 11 8 1 S 38 0 $ 57 66 85 11 $ 2i 9 S 9C 10 7 16 1 35 $ 39 3 S: c *c 2 S 2 $ 54 67 81 1^ $ 21 3 S: T 7 S 20' Staiemem ol income information is oreseniea so as to segregate continuing from discontmueo operations 'or a' Derioas Previously recoraed oalance sneet amounts nave not Deen restated tor discontinued segments Ooeranons were discontinued pnmamy m 1977 ano to a lesser extent m 1978 See Mote i of Notes to Consolidated Financial Statements intersegment sales are recorded at tne same prices cna'geo to unatfiiiateo customers intersegment sales pyrne "note & Repro and Bunding Materials gro jps were negrgiDie 22 GAF 12165 i -coo o MaMgcRWrt'* Discussion and Analysis of Summary of Operations Tne Summary of Operations is presented so as to segregate continuing from oiscontmued operations for all periods The results of the discontinued businesses are shown seoaraieiy (see Noie i on page 30) The annual effective income tax rate of 25.2% was icwemna" the 1978 rate primarily due lo a United Kmgccm :ax 'ev sc' a' c the increased impact of United States investment lax erea :s (see Note 12 on page 34) 1979 Compared with 1979-Continuing Businesses Consolidated sales increased $149 9 million (14%), with gams >n each of ihe worldwide product sales groups Chemical sales growtn of $52 6 million (21 %) resulted from boih price and vol ume increases Volume increases were especially strong in acetylene and specialty cnemicais Photo & flepro sales increased $39 4 million (14%), primarily as a result of pricing and aiso Decause of reprographic and maustnai photographic vOiume gams, the effect ot translating foreign sales into United States dollars also accounted tor a portion of tne overall sales increase For Building Materials, higher selling prices tor ail prooucls and increased volume in international sheet vinyl floor ing products were carnally offset by a decline m domestic vol ume ot both roofing and sheet vinyl flooring with a resultant sates gam of $57 9 million (11%) The increased unit volume in international flooring is due to the expansion of the sheet vinyl markets m Europe and Canada Decreased domestic volume reflects production interruptions at several plants resulting chiefly horn raw material shortages, eauipment breakdowns, weather conditions and a strike Direct operating profit decreased $1 9 million (2%) primarily as a result of a substantial decline m Building Materials nearly off set by a strong gam in Chemical Chemical results improved $13 9rrllion (27%) principally due to improved volume and resultant profits tor acetylene and specialty chemicals. Building Mater,ais profits were off $14 2 million (36%). this decline was attributable primarily to rooting and flooring cost increases tor raw materials energy and other manufacturing and operating expenses m excess oi increased selling pnees. Also contribut ing to this decline were roofing volume decreases-causedm pan oy proauction interruptions, continued start-up costs for the urethane insulation product line and increased losses from me automotive operation-due to lower sales and production voumes Oirect operating profit for Photo & Repro decreased by $f 6 million (14%) as a result of higher operating expenses anc -aw material cost increases While the profits tor the repro graphic product line improved as a resu.t of increased volume ana Dhces margins m industrial pnoto were adversely affected by me -apic escalation of costs 1979 Compared With 1977-Continuing Businesses Consolidated safes increased $143 8 muiion (16%) on ga ns n each of the worldwide product saies groups Cnemica1 saies increased $47 9mill>on (24%) primarily on increases ucume racetylene specialty and agricultural cnemica:s Tne rcease Pnoto & Fiepro of $36 4 million (15%) was a result cf vo ume increases in the industrial photo and reprographic D'cduc mes and. to a lesser extent, because of price increases anc transla tion ot foreign sales into United Slates dollars for Bunding Materials, improved sales of the roofing product nne due mostly to price but also to volume increases, provided a S59 5 million (13%) gain Direct operating profit improved S11 9 million (13%) with gams m Chemical and Photo & Repro slightly offset Dy Bu'iomg Mate rials Chemical profits were S5 1 miiiion(ti%)aneaoof 1977 which mcluoed a gam of $3 7 million on a contract termination Higher profits were reported in most Chemical product lines but especially m the agricultural, specialty ana acetylene areas The improvement reflected increased unit volume whicn was partially offset by cost increases when. because of competitive pressures, were not fully passed through to selling prices The direct operating profit of Photo & Repro increased $8 3 million (244%) on increased volume and improved operating eff'C.enCies Building Materials results were down $t 5 million i4%iaue lo start-up expenses of new operations a sneet vmy. piant o Ireland an automotive padomg andadvancec masim facility anc a poiyuremane insulation plant Phase-out expenses incurred m terminating mineral fiber activities aiso curtailed Building Matenais profits interest expense decreased $1 7 million (8%) primaniy as a result of reauced snon-ierm debt Othercoroorateexpenses mcreased$6 1 million (29%l Tne increase reflected tne ncnrecurrence of $2 2 million of 1977 income from settlement of a lawsuit concemmg a cniprme caus tic plan: formerly owned by the company me aosence cf any executive incentive compensation m. 1977 ana pre-tax gams during 1977 on the saie ot several orooeiies ana an mvestmemoflset oy increased pre-tax toreign exenange gams interest expense increased because of higher rates ana a -ighe' ievei ot oeoi Tne increase was oflset oy capitalization of i2 7 million m interest incurred in connection witn financing current additions lo property, plant and equipment (see Note 2 on cage 30) The net increase is $12 million (7%) Capitalization of merest was adopted m 1979 m accordance with a recently issued Statement by tne Financial Accounting Standards 5cara Ciher corporate expenses increased $14 9 million (54%) The principal reasons lor this nei increase were a pre-tax loss of $6 0 million on silver futures transactions, a $10 6 million unlavcraoie swing in pre-tax foreign exchange results and overall 'htiationary pressures Tnese factors were partially offset by moroved results from the 50% ownership of a chemical manu'actunng company and a captive insurance subsidiary-Dotn tan ea on the equity method gams on the sale of several O'Obehies. lower executive incentive compensation and other NJnrecu'rmg gams m 1979 (see Notes 3 ana 4 on page 30) increased income taxes were prcoonionaie lo me cnange m pre -lax earn,ngs Prior Yr* in i975 a $4 Cmii'ionncn-taxaDiegamwas'ea.'zeoontnesaie ol tecnnciogy 10 the Cnemicai ;om;-venture m Germany anc was recorded as a reduction of other corporate expenses in 1974 a pre-tax oroti: of $5 5 m.hon was reanzed on me repurenase of 5oconvenibie suborcmateo notes Aisc me sa;e of tnree p'coerties resulted m pre-tax gams amount,ng :c $1 4 mil,ion A $5 0 mi'iion provision tor 'e'oeafon costs was recorded m connection win me t'ansie'Cl cenam aamristral,ve activities to Wayne New Jersey An of these were 'eccceo as olher corporate expenses in i973, pre-fax profit of S6 4 muiion was realized c- me repurchase of 5% convertible subordinated notes anc was recorded as a reduction c'orne'co'oorate expenses GAF12166 01 -" 23 Data par Common Shara Year Ended Decemper 31 n-mary Earnings Continuing D'SCCntihued Net income; Loss! Fjiiy Diluted Earnmgs Continuing Discontinued Net Income! Loss 1 Weighted Average Numoer of Common Shares :m tnousands) Dividends or Common Shares Snarenooers Eauity Financial Condition Decemper 31 Cj"en: Assets Cu"en: Liabilities Wo'Kmg Capital Prooery Plant ana Equioment-Net "ota1 Assets udng-term Dect (Including Cjrreni Portion! Snareno'oers Eauity 1979 1978 Dollars 1977 1976 1975 1974 '-V; $ 1.83 -- S 1.93 S 2 01 28 S 2 29 S 1 70 (5 52! S (3 82) S 1 85 ( 64) S 1 21 S 2 62 : 56! S 206 S 1 99 ( .5. S 1 84 S 2 r 1 s 2 06 9 1.93 -- $ 1.92 S 1 76 21 S 1 97 S 1 52 (4 20) $(2 68) S 1 63 t 49) $ 1 14 S 2 21 ( 42) S 1 79 S 1 74 , '2: S 1 62 515- 0 '7 13,396 13.306 13.252 13 303 13.237 13.516 -2639 .99 S 64 S 60 S 58 S 52 ^ S 46 : 7 921.29 S20 33 $1864 S 23 01 $ 22 35 S 20 87 T -8=3 1979 9492.1 201.5 290.6 309.4 635.9 206.4 369.0 1978 $472 2 179 8 292 4 280 6 785 3 1968 351 7 Dollars in Millions 1977 1976 '975 S464 S4S1 3 S426 6 186 3 145 5 158 B 27~ S 305 8 267 8 262 9 762 4 275 ' 777 4 255 9 732 8 198 4 329 7 202 4 387 9 80 5 379 0 1974 S435 2 '30 9 304 3 722 2 o23 S36*i 3 ' '2 6 2S* J 222 3 84:; 200 35T5 `-C C >2 9 Historic Cost/Constant Dollar-Accounting tor Inflation P'esentea oeiow is scecieo information reflectmg historic amounts stated n 1979 constant oo' ars T~e scec .c- s -c's tion is to femcve the effects of inflation from me nistoric amounts reccroec For this ci'ese'rta'ion ni.atmr s meas-'ec c. o general once eveis using the Consumer rice moex for An uroan Consumers An amounts reorese'" '-e aversce power of 1979 ooiiars Exceot tor 1979 Net Saies ana Divaencs per common snare me amounts w net ag'ee a tr moses-c*' eisewne'e minis report or with those previous y reported Also see Note 15 of Notes :c Consoiioatec F'-anc a 5ta:e~'e'"; Year Endec Decemoer 31 Net Sales Divioenos Der common share Yea'-enc markei once per common snare Average Consumer Price maex 1979 91,213.2 $ .99 S 9.S7 217.4 1978 183 0 71 Dpiliars in Wi' Ons 1977 1976 .973 Si 101 Si 059 3 5" C 3 6 Doi'a's s 72 S 74 s fO `9*$' 066 2 S 65 12 73 5 1271 s 6 69 s 13 90 s 195 4 181 5 70 5 161 2 *-* ` 3 3T 24 0 1 -0207372 GAF 12167 provea popular since us introduc tion in late 1977 In addition to its compact size, tnis machine removes most of tne ammonia odor from prints Broad diazo line Tne company makes a full line of 17 mercury vapor and fluorescent diazo machines, from the lowprinting-volume Print Vac' 190 to the top-of-the-ime 1200DA which makes high quantities of prints quickly and economically Anew macnme to meet tne needs of the on exploration business, the Gaflog'" diazoprtnter, was intro duced in the second half of 1978 and has sold well. This unit repro duces Oil drilling seismic logs, and is small enough to be housed in anon-site trailer offset rising costs During 1978, the View-Master nne doubled its annual offering of new reel pack ets. including such features as SuDerman. The Movie. The Wiz and King Tut. Also, added emphasis is being placed on mar keting m drug chains and catalog showrooms In early 1979, GAF is introducing a new product, the Doub!e-Vue'" automatic movie viewer, a bat tery-operated toy that enables chiiaren to see brief double fea tures in a nand-heid viewer. A series of interchangeable movie cassettes will be available, creat ing an aftermarket Considerable development effort is going into this product, and initial traae reception has been favorable Industrial Photo Products G'aci.c ars = ~s C~e~ zi s Pl-iotcrvoesef: -c Pace's 'nous" a1 x - 'a^ c '-- S C "'e--: a $ MeoicaiS ber,a x.-a. : ~s p'ocess.ig Cre'-'Ca s mens'iy ng Sc-eemi CasseMes Soecia1 p^oic p-ccucis Pictorial Products P c:oria. Sices S"Oe Vie*e-s Sie'eoP'cure Rees Sie'eo viewer Toy Move ,. ef & Can- cces Reprographic Products Coni'aci Manu`ac:j','-g DiaioEogicee-'rig R- re's & Maie-.a's Diazo Microi' f- Drie" & Mate'iais Ovemeaa Transoarenoes worldwide diazo equipment and sensitized papers sales me reased 15% over 1977 levels, with profits rising as well. Diazo microfilm--a product line designed to repro duce microfilms economically-- has experienced significant gams, with several sales to new customers during 1978. as well as continuing demand from establishea accounts. A new product, Gafline'"l 2 diazo microfilm, was brought out m 1976 and has soid well. This film is designed to dupli cate computer output New chemistries have been devel oped which show excellent resis tance to yellowing Improved efficiency Substantial savings were realized m Photo & Repro manufacturing during the year through a broad program to improve production efficiency Sales of View-Master stereo viewers and reels and Pana-Vue slides were up slightly from 1977 levels m the United States, but rose substantially m Europe A program of price increases and irriDroved manufacturing efficien cies has been initiated m order to 10 The company s facility in SmtNiklaas. Belgium, which had unutilized space when it opened in 1977. is now operating with increasing efficiency This is dis cussed more fully in the interna tional section of this report Business forms saio Although profitable GAF s business forms line did not inte grate well with the company's continuing businesses. Further more. changes in the nature of the marketplace would have required GAF to invest substantially m this area to continue to compete effectively Therefore GAF chose to sell this operation Arrangements are m progress to sell this business, located in Shelby. Ohio Accordingly, above sales and earnings figures exciuae business forms revenues from 1978 results, and. for com parison. from prior years as well GAF 12116 01-0:07321 Abovo: Tosts are conducted on disroprinter at each step in assem bly process. The quality of these machines reinforces the com pany's leadership position in repro graphics. Opposite: Transparencies lor View-Master' stereo reels ero *mined on light table lor color, clarity, eonsistancy. OAPS com mitment to quality affects all prod uct linos, from seemingly simple toys to complox organic chemicals. I Financing Activtti** >e cash required by me operations in 1979 was financed through a combination of excess cash generated during me oner year ano a net increase in iong-termdebt in 1979 two major long-term debt issues were placed at relatively iow interest -ates Severa Irish banks loaned the Irish operations about $17 million to finance working capital and additional caoitai expenditures Tms Section 84 loan nas cenam tax advantages to the lenders which are to a large extent passed on to GAF m the 'orm o' oeiowmarkel interest rates The currency denomination can be changed periodically and tne interest rate floats with me market rates of tne designated currency The maturity extends up to seven years a iota'of 59 million of tax exempt bonds was placed with various bank and insurance company lenders Tne average mteres: 'ate was 7 5% with maturities ranging from 10 to 25 years OAF Corporation and Conaolldatad Subsidiaries Summary of Significant Accounting Policies (The following accounting policies apply to the continuing operations of tne company) Principles of Consolidation Tne accounts of all significant subsidiaries of the company are included in the consolidated financial statements A wholly owned captive insurance subsidiary and tne 50% ownership of a chemical manufacturing company are earned on the equity method Short-term Investments Shon-term investments are valued at cost, which approximates market Inventories inventories are valued at me lower of cost (principally average] or market Investment Tax Credit The company accounts tor investment tax creaks arsing since January 1 1971, as a reduction of the provision lor United States income tax (the tiow-tnrougn metnoa) invest ment tax credits which arose prior to that date have beerdeferred and are being amortized over the estimated service lives of the related assets Retirement Rians The company ana its subsidiaries nave retirement plans covering substantially ail employees The companv s policy is 10 fund amounts eauai to pension costs accrued anc fcplans wilh prio- service cosls to amortize suen costs Over periods not 10 exceed forty years Property, Plant end Kqulpment, end Related Depreciation Expenditures for maintenance ana repairs are charged qi'ectiy to expense, major replacements and betterments are caouaiizea ana depreciated over the remaining esti mated economic ves of the related assets The cost and e ateo accumulated depreciation of property sotq retired y jay depreciated are removed from tne accounts ana ir'v 'esuilant gam or loss is included in current income depreciation is computed principally on tne straignt-ime metnoa cased on tne estimated economic lives of tne assets These lives are suoiect to periodic review ana revi5 on to assure that the cost of the related assets is written off tiver tneir economic lives oegmning in 1979 certain interest cnarges are capitalized as car- of the cost of property, plant and equipment adOions See Note 2 of Notes to Consolidated Fmanc.ai Statements Kamlngs Rer there Primary earnings per common snare are computed by dividing income, less preferred stock aviaena regale ments. by tne weigmea ave-age numbe- of snares of com. non stock outstanding during tne year Tne computation assumes tne exercise of outstanping stock options tc me extent they are dilutive Fully diluted earnings per common Share are computed on tne assumption (where tne ehec: thereof would oe active 1 that convertible securties outstanding nac oeeo convened nto snares of common stock Acprooriate adjustments tc dividends on preferred stock ano inices: on convertible notes met of income tax effect; are maae tc.earnings appli cable to common stock lor assumed conversions Toe comoutation also assumes me exercise or an anutive stock optons ^vnvd Income Taxes -^errea income taxes arise from reporting certain income r expense kerns m the financial statements in penoas d'f- e e-11 ,rm mose in whicn such amounts are reported for ncorng tax pyrpQjgj 0i-v; GAF 12168 25 Consolidated Statements of Income (Note 1) Year Enaed Decemper 31 Net Sales 1979 91,213,243,000 *9**; Si 063 29i ooc Costs and Expenses Cos: o' products sold Distr.bution and seiung Advertising Researcn and oeveioomen; General and administrative interest fNdtes 2 & 9) Total Costs and Expenses Income before Other Income ICharees) and Income Taxes Other Income (Charges) loss on sitver tuture transactions Foreign excnange gams (losses) (Note 3) Other-net(Note4) Total Other Income (Charqes) Income from Continuing Operations before Income Taxes Income Taxes (Note 12) Income from Continuing Operations Income from Discontinued Segments, not of incomo taxos (including >750,000 from operations) Net Income Less Preferred stocx dividend requirements Net Income Applicable to Common Stock 888,670,000 188,406,000 18,287,000 17,001,000 58,016,000 19,901,000 1,169,283,000 43,980,000 (5,986,000) (6,527,000) 6,187,000 (6,308,000) 37,654,000 9,471,000 28,183,000 -- 28,183,000 3,635,000 S 24,548,000 765 9' 7 OOC 146 7'" OCC 16 698 OOC '4 632 OOC 49 795 ooc 18 6" OOC 1 C12 436 cc: 50 85S ooc _ 4 639 OCC 2^6 OOC 4 885 OOC 55-740 OOC 25 34: ooc 30 399 OCC 3 765 000 34 1 64 O0C 3 63c OCC S 30 525 OOC Weighted Average Number of Common Shares 13,386,000 ' 3 306 OCC Earnings per Common Share Primary Cont-numg Discontinued Net mcorre =u ly Diluted Continuing Discontinued Net income S 1.83 -- S 1.83 S 1.62 -- S 1.62 Consolidated Statements of Retained Earnings vear Enaed Decembe' 31 1979 Balance January i Ne: income Less casr. aivioends Preferred StOCK($1 20 Der share! Common stock ('979-$ 66 per snare '978--S 64 per sharei S2S5,613,000 28,183,000 3,635,000 9,069,000 Balance Decemoer3i S301,092,000 See Summary of Significant Accounting Policies and Notes to Consolidated mnanoa S:3temen,s s :: := : 5 *6 - '-4- 5263 542 OCC 34 -6-XC 6-:` OCC 526: c' - XC 26 '-J -OCj- GAF12169 Consolidated Statements of Changes in Financial Position z"zeo0ece~-.ee' 31 Working Capital Providad C;m r^.rg Ooe'Stons rco^e >'C"~ Co"i-u'ng Ooe'si'cms C"3fgesiCreaiisi net affecting vor-< ng caeca1 Oeo'eoawn De'erregmcometanes Ftyegnercna-ge csses-'io~cu-'eni aon-cm C\n& vvo,i' n? CaoTa1 provioec - 5;on!iue: Segments T;.;a *ork:ngcaC'ta! DroviC)ec!fror->oDer3TiOns -ceases m .ong-term aect : e0 assets of O'sccntinuea segments neia tor sa'e -cease t decrease i m none jrren: naomry tor goase-out costs Tota. Working Capital Appliod no^s rc cfooery can; ana eaj/omenr Ca$r s^'Oenas ^ec^-i'cns 'n 'ong-rern- aect J` r'C' tola! biereaM (Dacraaaal in Working Capital -5 Cao'tai January ' nc Caoita. December 3". 1979 S 28,183,000 29,190,000 (1,343,000) 2,226,000 1,852,000 60,108,000 _ 80,100,000 27,274,000 __ (1,762,0001 85,630,000 58,804,000 12,704,000 14,336,000 1,631,000 87,475,000 (1,848,000) 292,405,000 $290,960,000 Analyst* of Changas in Working Capital -esse. oec'ease J<n current assets CasS'-m-ie"'-- inves'^ents -cc3jnsfece'vac.e -re^ones ^*?ca-a expenses "z^e :ax oener,ts - sse's c ascomn^ect segments 8 3,819,000 (21,480,000) 11,772,000 83,768,000 (1,084,000) (4,182,000) (22,448,000) ' rj-e decease'Hcadent iiaoi'iiies * "escape cordon oMong-tenraeDl -.::jn'spayaoie -- - -eo'atxtes --~e:a*es oavace 19,892,000 5,958,000 3,682,000 (30,717,000) 481,000 (1,091,000) (Dacraaaal in Working Capital (21,737,000) S (1,845,000) S-gni'icac Accounting Policies ana Moies to Consci'aa'ea - mane.a Statements A ' r~ = S 3C399 0CC 26 ?*: DOC 3 cc: 3 2'3 3C3 5 625 OOC 2 ' 55 COD - 06C OCO 3 99' OCC '63' COC 8 255 000 5' :48 0C0 12 093 XO 8 278 XO 2 137X0 73 656 XO 14 599 COC 27- 806X0 292 4C5 COC S - `45 000 22 036 OOC 25 "0 000 16 06? OCO 2 385 OCC 4 `33 OCC' JS 296 OCC 6 OS5 OCO 9 24J 000 : 543 ozy '490 occ; S 229 CC ` ' 324 00`1 S 14 599 do; GAF 12170 27 Consolidated Balance Sheets Decemoer3" Assata Currant Aaaata CasSnon-:erm nvestments Accounts 'eceivaote-trade ess allowance `or ocuot'ui accojnts-1979 S5 779 000 1978 SS 316000 Acccjnis ^eceivaoie-ctner Inventories Fmshed gooos Work ir orocess flaw materials ana suDpiies Total inventories Prepaid expenses income tax oenefirs (Note ') Assets ot discontinued segments. a: estimated reanzaoie value (Noie 11 Total Current Assets 1878 $ 17,903,000 1,175,000 185,586,000 10,007,000 126,071,000 37,582,000 100,587,000 204,210,000 9,906,000 288,000 492,123,000 *9~ S 14 384 0a 22 625 OCC '66 142 OOC 18 679 COC 105.290 OCC 29 802 OX 75.353 COG 210 445 X0 11 070 OOC 4 438.00C 22 448 OX 472 231 OCO Property, Plant and Equipment, at cos: (Note ' 3) Lane anc tana implements 3judings and Duilding equipment Macninery and eauioment Construction in progress Tctai Property Plant and Equipment Less accumuiatea oepreciator P'ODerty DiantandEouipment-Net 19,463,000 130,481,000 299,758,000 25,082,000 474,734,000 186,327,000 308,407,000 17.591 000 119 238 OOC 268 720 OOC 27 731.OOC 433.290 OOC 152.71000C 280 570 OX' Cot In lcn of Nt A--1 Acquired 24,321,000 24 35' COO Othqr AimIi 10,784,00 _____________ 8 112 000 Total Asaats 8839,635,000 See Summary of Significant Accounting Ponces ana Notes to Consoiiaated Financial Statements $785 264 OOC ~ A7 n b 0^ GAF 12171 28 I Decemoer3l Liability** and Shareholders' Equity Currant Liabilities Metes oayao'e (Note 9i Ourren: Dortion of ong-re'"1 aeo: 'Note 9) iccou'ts oayabie iccr-ec .lacifiies (Note ' > income taxes cayaoie Tct3iCorrentLaDi<.es Lonff-term Debt Lass Currant Portion (Note 9) Deferred Credits rcometaxes'Note 12; -vestment tax ceac Tctai Oefe'reo Credits Other Liabilities (Nets 1) Commitmentr and Contingent Liabilities (Note 13) Shareholders' Equity (Note! 7,8 It 9)_________________ 'c'e"eo siock Si oaf vatue. au:ncnzed 6 000 000 snares Si 20c3nveiioiese'esissuea-i979 3 105 677snares 976 3 '05 767snares a;assigned vawecfSi 25per s~are niQ-ioartcn t/aiue ^979 583 305 000) C:~~cn stock S'carvaiue actf-onzed 25 000 000 snares ss-eo-1979 13 77C 359snares 1978 `3 770 247 snares ---' DaiG'in cap ta1 w5`s'`ecea^'^gs Va; szc* ne-a -n treasury arcos: ::TMon-*.979 323 7Q7 snakes '978 567207sra'es "ererrea--76 400 shades in :979 anc 1978 ~zia> S^a^0`0ers Ea^ty 1979 $ 17,990,000 4.492.000 109,990,000 94,999,000 9.002.000 201,993,000 201,930,000 19.920.000 1,439,000 20.999.000 42,196,000 9-= S 23 606 COC e -2- :oc 79 -33 CCC 65 050 300 3 ? ' 000 - '9 626 COC 96 72' CCO 22 023 000 2 008 000 2^03' 00C 40 946 000 3,982,000 13,770,000 93,900,000 301,092,000 372,644,000 2,682,000 932,000 399,030,000 3 382 OOC '3 770 OCO 53 936 000 295 613 OOC 357 20- OCC 4 53 f 000 932 COO 35' 736 000 -- Total Liabilities and Shareholders' Equity 9938,635,000 ' -- `37 of S'gn.ftcan; Accounting Doioes ana Notes to Cooso'ioated Financa* Statements S765 264 OOC 0i -O'r. 7"-7 GAF 12172 I Notes to ConsoIMotod Financial Statements 1 Discontinued Segments Effective at December 31 1978. the company oecided tc Oiscontinue its Dusiness forms operation at SheiOy. Ohio ana this operation was sod during 1979 Net saies of tne ousmess forms segment were approximately $26 million m 1978 and operating income was $0 8 million ($1 6 million Oelore taxes) During 1977 the company discontinued operations in con sumer photo, photo processing, dyestuffs and pigments `eits and filters and several small Ousmesses Activity m tne reserve ana liability accounts is summarized m tne taoie bedw Baiance January t i9?6 Act<viiy g-jnng 1976 regard- ng 1977 discontinuances Aojustmem o excess reserve oaiance P'Ov S(X' for osconnru- anceo* ousmess forms ooerat'on Balance Decemoer 31 1976 Activity Ounng `979 Balance Decemoer 31 1979 Reserve Por LOSS On DiSOOSition of Assets Liaomty -or r^ase-Oui Costs Dollars m Miltons S 35 9 $ 52 0 Tctai s 87 9 (2i 8) (6 'i (135) _ (35 3) <6 i) 9 S 89 (8 9) S- 32 s 41 7 (4 2 S 3? 5 41 J 50 6 (13 ') $ 37 5 The income from discontinued segments n 1978 includes (.) a net. after-tax effect ($i 0 million) of the adjustment of excess reserve balance less me provision for discontinuance of the business forms operation, (ni additional tax benefits realized ($2 0 million) and (m) operating income of the business forms operation for 1978 (SO 8 million) A: December 3i. 1979 the current Dortion of the liability for phase-out costs is $3 1 million and is included n Accrued Liabilities tne noncurrent portion of $34 4 mii'00 pertains primarily to retirement oenef'ts and 'S mciudea m Other Labilities 2 Capitalisation of Intoroat Totai interest cost incurred during 1979 was S22 6 -~ii- non Of the totai. S2 7 million was capitalized m connec tion with financing additions to property, piant ana equipment, resulting in reported interest expense of Si 9 9 million Capitalization of a portion of interest costs was adoptee m 1979 m accordance with a Statement recently issued by the Financial Accounting Stanoarcs Board 3 Foreign Exchange Foreign exchange gams (losses) are comprised as follows For tne year Rre-ta* Translation Forwara exchange contracts Otner Totat After tax Translation Forward exchange contracts Other Total Dollars n incjsa^cs 197* 19'S *2J74) (3.29*) (399) *8.527) Si 5 595 CO'5 cc' S <633 *2.974) (1.975) (329) *4.975) $<5,595 <906 ir '3 S iSC2` Taxes related to foreign exenange are included m income taxes Generally balance sheet translations are not tax effected, whereas the results of forward exchange con tracts are sublet to tax 4 Equity Method Invaatmants Tne net resuits of a wnolly owned captive insurance sub sidiary ana me company s share of the net results o' ts 50o ownership m a chemica1 manufacturing company are recorOed in Other income (Charges) on the Consonoatea Statements ot Income For 1979 eauity method income c` S234 000 is mcluoeo wnereas a loss of $i 848.000 is included `or 1978 5 Supplementary Financial Information The following expenses of cont numg operations a'e mcluded in the ConsoindateO Statements o' income For tne Yea' Maintenance ana 'epairs Taxes otner than taxes or inco-e Soc at Security and jnemoovmeni Otner Rentonooeramg eases Dears <r 'noesancs 1979 'QTg $57,497 S52S84 2011 7.381 11912 2' -i29 '134 56*4 I | 1 ! | 30 i Oh -OT O'* GAF 12173 4 6 Geographic Information r!c""s*oi ~ fesoec: :o operations oy geograontc area s as r- :cv.s -o' in vear 1979 5a es wess .'n:ergsograonic sales' Saes to Uoai'Viated Customers [Veer OO'9raf ng Drow Coroo'ate O'tice Excesses rcome tron Continuing Ooe'ations Be'c'e mcome taxes Assets anc Laooties ,nven?ones Ome' Current Assets Noncjrren: Assess 'c*.a Assets Un.-rea States Western Eu'ooe 51 C29 A 55 6 975 8 S3 0 S208 3 i* 9 1964 13 7 Doha's n Mi'i.cnS Omer K*vnat,cns a~c Trs One' Cc"so' ca-e^ S4 ' 1 41 0 32 Si 65 6i '65 6) -- S' 2'3 2 - 1.2 ` 3 5 99 9 ;62 2) 191 7 1675 28' 6 64C 8 62 7 50 5 55 4 163 6 -- 98 99 65 26 2 -- -- -- - 264 2 22' 9 343 5 835 6 Cj'rer'f L'ao'.'i;es l ac i`ues T;-a L-acii'es \e- Assets :46 5 232 3 376 8 262 C 50 6 3' 4 82 0 86 6 45 *3 58 20 4 _ -- 20i 6 265 0 466 6 369 0 197B Ss'es _ess "le^ecg-aonic sates' Saes to OnalViated Custcme's >e:t Caerating Pro:.! Ovoo'ste Once Expenses ':;~e ror' Continuing Ope'arons Be'o'e ^corne Ta.es -sic-s ano L'ao-mies 'nveniO'`es Ome- Current Assets 'cn;J-rent Asse'S -sse's S 922 3 44 6 877 5 88 6 5162 ' 91 153 6 '1 6 158 0 185 5 252 3 595 8 43 ' 45 2 54 142 4 532 4 2 32 2 `6 S: 54 ' 54 1 - 5 ` 065 3 -063 3 'Z' c 4*c * : ---- 93 -- o 7 22 4-6~ 24 - 4 -- 2'0 4 26' S O' 3 * "'65 3 Lac iir.es u'ner L.aDii't es ' = L-SOmiies Assets 26 5 237 2 46 3 14 7 70 '9 __ - ' '9 8 253 5 363 7 6' 0 89 -- 433 6 232 ' 81 4 '5 8 22 4 3^ ~ '?eog-'aon c :ransiers are 'eco'oec a: onces aoeve css: as 'ego:.a:ec cetxveen me ope'at ng /'s :3es o' c sconinueo segments a' estimated re3' zac e .a.e :See Nee o- cage 30) 0 1 -c_ , GAF 12174 31 I Not** to Consolidated Financial Statements (continued 7 Capital Stock 'neS' 20 conveniP'e pretomec stecx dividends on which are cumulative is conveniD'e at any time into common siock at me rate ol i ''4 snares of common stock tor each snare of pretenea Tne comoany may redeem the prefeneo s;ock at S27 50 per snare Transact ons n common stoex held in t'easury were as follows Psi.ars ,r T-ojsa-os 5a ance 5e-ourc"ase o'3 500 snares -r `979 ann ' 7 ooc r 97S c-'sja"! :c me stoc* cu-cnase Dian ssua'ce -'or- 'easj'y o'246 920sna'es >r 1979 - - r connexion saies nae' 'ne sioc- colon oian ana me resinctec s'CC-a.'cnase oan. ~1979 $4,531 19 (1,869) 1970 Sa -38 93 -- Baiance Pece-noe-31 S.LM2 S4 53' As a result of me above issuance of treasury shares during i979 additional paid-in capital has oeen decreased Py S' 74 000 Tne snares of common stock reserved for issuance at Decemoer 3f 1979 and 1978 were as follows Gese'veo fc/ 1979 '978 'crive'so rSi 20 co-ve^ice s:cc 3.892.096 3 B82 209 Cc^.e*so" o* nnis; ojooro'naiec 381.747 368 "1 E*efz se ^roe' stoc oo!<o,` a^c Du'c^ase 3 a-s 1.321270 l 453 790 T;:= 5.585.113 5 724 n c B Stock Option and Stock Purehas* Ptans Tne comoany s siock option plans provide for the granting c options to key employees to purenase common stoex of tne comoany at not less than 100% o* the fair marxet value a: me oate of grant Unoe- the ierms of me 1975 nonouanf eo man ootions for 800 000 shares of common stock ma, oe granted durirg a ten-year Denod ending February i' 1985 ODtons granted to oate are exercisaoie one year ahe- gram ano expire after 10 years Tne plan provioes for stoex acorec anon rights wherem an option noider may reauest 'surrender' of me option m exenange for payment icasr or stock) Dy the company of me difference Detweeo me option ano marxet prices on the oate of sur'en, cer Tne reauestea surrender of an option may oe grantee or deneo at me discretion of me company s Stoex Option Committee Authority to gran; opnens unoe' tne ' 965 Cu3"f ec ma" expiree on Ma'cn 31 1975 Octions g-antec mcer v^s plan expired 'we years from the cate c' gran: 'ansac'c"$ af'ect ng opro-s jr.der tnese plans a'e as to-ev.s ce1 c-S"3'?; u CcT-'Cf 1979 97S 1979 Ou!s;ar'>0'ng jar,,a"v * 403,900 5C* 94: $9.64 5 : G'aneo 317,000 - 11.30 E*e^c seo & Su^ae'ec a'ec (99.130) (13,100) 26 29C "*52 9-60 10.29 r6I Outsra^ang Oece'-ce' 31 618.870 6C3 90C 10.48 9t- Options tor 238 000 ano 548,000 snares were avaiiao e to' grant at December 31 I979andi978 respective", Under the provisions of tne company's 1969 restricted a"d unrestricted stock purchase oian 650 000 snares of com mon stock were authorized for sale to key emotoyees T~.e oian currently provides mat restricted ano unresmctec snares may Oe sold at Dnces wnicn are not iess man 50% ano 80% respectively of the closing market price preced ing the oate on which an employee is aesignated as one tc whom snares may be offered Unae' certain conditions tne company has the right to repurchase restricted snares c* common stock at the original selling price The excess of auced marxet vai je at tne cate of gra"t eveme aggregate sa es once tor restricted snares soic is amo'tizeo Dy charges c income over the 'esmetea oenoo as 3 result of these c"3'ges. additional oato-m cacta nas cee7 increased by $125 000 ana S90 00C m '979 anc i976 respechve y Tne balance 10 oe amort.zed mroug17 1989 amounted to Si 012 000 and S22i 000 a: Decemoer 3' 979anc 1978 respectwey 9 Debt and Dividend Restriction* Information regarding short-term cec: ior me years '979 anc 1978 is as z' Deceit*?' 2* Baia^ce cuisrarairc 6ve*age rve',es: *aie Per ,re yea' Average sncn-ie"*' Dec! c usra-u-c snor-ie"^ aec: a: a-'. '-To-fn-er'C A^'age 've*es: 'a:e 1979 $17,650 12.7% r't $51,446 i-2 $76,883 11 5% a: Decemoer 31 1979 GAF nac 'nes :* zrez' agg'eg;' approximately $190 000 OOO Tr-ese "es o cec-' s's manamec with various panxs cn te'~s gene'a renewable expiring or- .anous dates 0: -c GAF12175 32 3orrowmgs generally Dea' interest a! or near rne pnme commercial lenamg rate or its foreign eauivaient A var,aoie tee usually oased on a percentage of the current prime fate is pad on the Oomestic unes of credit Compensating oaiances at December 31.1979 are negligible cong-te'm oeot at Decemoe' 31 1979 ana 1978 was as `onows Dona-s <r T-iousariOs ------- '"" 1979 ~ ~ '976 seno' notes 3ue Ma'cn 3' ;99t win eoua* 3mua` Dnnctpai feoavmems oegnnmg Marcn 3i 962 9 65.000 gi se^-o'notes due January 1S 1997 witneaua1 3nn*a. ortncioa ledaymenrs ooginning janua-v 1S -963 <0.000 5fissinK.ngiunaaeoenturesaueDecemDer ' 199 ' w,r annua's nung luno oaymenrs ol 12 5CO 000 Oue y eacn Oecemoer: A: Decemoe' 31 1979 S9 098 000 as neia -n Treasury ana may oe used ro accommodate`uiu^e Sinying tuna reauiremenis 30.902 ; rarc'ngs w.in a grouo oi insn oarnrs. oayaoie in Ir-sn ;r Brr.sn OOundS German marks O' U S dollars enanengs a^e 'eoayaD'e iron 1982 ic 1986 tr. *ar,ao>e i.-neres; fares at 55% ott^e aoc-cat>e nte'can* rates plus a premium 17.243 S6500C 40 000 3'802 naustnai revenue Donas wnen oear inter ns: 3' 'ares of to ana nature at var o-js cates to 200* 20,896 :crven'0ie suOO'anatea notes aue April * 1994 anr.ua1 repav^nts oegmnmg Apn t 199c 5.200 5 r,c:rven'D svooro'natea notes aueApm 963 ^y^arruai'eoay'nentscr S200000on eacn ic* m'Ougr'i982anc tne oaianceot$i 800 00C :avac*e April 1983 2.400 ;-e' -oies *r.lcr oea' interest at gre at *arous aates to 1996 to 1ana 13,506 Qaions unce* caoita1 ases (See Note 13; 11245 15999 8 20C 2600 13 441 19 803 *:= .4cc 3c"-or G'-e vvitrim one vear >e"" oeot -ess current portion 205.392 4.462 $201,930 196 845 8 (24 S186 72i -ii~ recu'temenis to meet maturing aeot obligations over "i 'e<t f.ve years are ?8C $ 4 462 000 1963 $'-9139 000 'tS" S 6,505,000 1984 $19,037 000 '362 $13 481 000 convertiDie subordmateo notes are conveniP'e into it common stock a: any time, at a conversion price '0 oer share (suojeci to antidilution adjustments m T-e: i ec c 'Cumsiancesl The 5vz% convei'Oie sudoramated nores are presem'. convenioie into shares of common s;oc< a: a conve's c pnce o< S28 72 per snare isuoiec: to ant onut on ac.i-s'menis .n specified crcunstances! on.'y -r cpnnecf.cn f,''r cenair prepayments Au ctner conversion rights ;aosec in 1976 Dividends are resfnctea unoer orovsions 0' cenam ioa~ agreements Unoer the most resncnve o> these ore. sons $46 181 000 of retameo earnmgs are avanapie a' December 31 1979 tor future civioenos 10 ftotkwmMit Plane The cost of employee retirement benefits tor cont-nuT-g operations was $15 177 000 m 1979 ana Si 4 08? 000 n 1978 At December 31 1979 the actuanaiiy computea vaiue of vested benefits exceeded me total of oens.on funds and accrued iiaoiiities for pens.on cost by $47 822 000 The estimated unlunoed pnor service cost a: Decemoer3i 1979 was $63 522 000 11 Schudul* of Business Segments information witn regard to the company s Dus ness seg ments is presented on page 22 information regarding 1979 and 1978 is encompassed by the Auditors Opinion 0 ; -0207 :.e 1 GAF 12176 33 Notes to Consolidated Financial Statements (continued) 12 Income Taxes '"ovison nas net ceen made for me United States mceme .axes on remitted earnings of foreign subsidianes of SJ2 655 000 since any wtnhoidmg taxes ana United States r.ccme taxes oavaoie on dividends cased on unqistriouted ea-nings wou;o oe sucstantiaiiy offset oy foreign tax credits or oecause me remittance of suen earnings wi.i De maefimre v oostDonec United States income taxes nave not been Droviaed on the u-remuted earnings of tne Domestic m:e,nat'onai Sales Coroorat on subsidiary aggregating S' 2 932 000 tnrough December 3' 1979 Since tne COmcanv irtencs to pOStDOne .noefniteiy tne remittance O' Sucn earnings Tne o'cvision for income taxes on continuing operations cc.-s'Sts of me fc,towing zo' "e res' .r-*.ec Siates-c^e-1'. j* tec Siates-oe'e^ec jn :ec S'aies ^vest'~Af 'a* treat' is'of o* oe!e"ec Spates '-west-e-t :a r'eo: a- s-c c>'of rc *9"' -C'e z~-zj,re~' cee 3" - ce'e^ec rc jC Ag L'Aiteo Ktngco^ ta e-'S 0" '5'9-see oe'cw 5:a`e Oona^s<A 1979 % 7.739 3,187 (3.792) jsanos '976 S22 66** 168 :2 832i (572) 2,331 :572) 543 (1.1M) 1.772 2319 2 428 ~zc~e 'a*** $9,471 325 H ' Tne e``ect. .e ta* 'ates on continuing operations were 25 2o a-c45 5== n 1979anp 1978 respectively Th reasons for me a `ferences tram tne statutory rates are as loiows `-e- .P-i' -"eases -eeeases! - :a* 'a^es 'es^t'% `*c-- . - 'ec States -vestrre-' ta* e'eo ' -'erS'a'es -co^e :> ce-e'' =:-? o- oce'S'c-s e-t * -ooc^ a* 'ev'S da tsee cec* ~: y 1979 46.0% mcc^e T97S 48 0o (11.7) 2.7 i i' 23 (8.5) - D'-!' -c '3- 35 (3.4) 252% 24 4r 5:: ~~e onncioa' sources of United States de`erred taxes aopi- cace to contmuirg operations were = 'Ae .e=` OO'ia'S r 4'XurSaf'OS 1979 '?78 *cess o' -a oeo'ec-a' cr Ove' a^o-' ''eoccec - So'-socceec State^e-ts o' e -"est e^oe-se cao'a zez :see see 2 S2.436 1.317 52 400 -- 1568) 32 53.187 S '66 34 During 1979 the provison `or income taxes -.vas 'ecucec S3 2 million as a result Of a '979 change ir Un.teo K ngco mcome tax laws related to inventories Following me cnange m laws the Fnanc ai Account ng Stanoams 5oaissued a Statement wnicn orovioes mat n orcumstances wnere it is definite that previously recorded oefer,ed taxes will never oe paid these deferred taxes shouic oe -ecovered as a reduction of me currem tax orcvsion me amount so 'ecovereo was St 9 miion Tne Statement c. me Fnanciai Accounting Standa'os Boarc a so c'ovces that m circumstances wnere it is orcoao'e ma- no `-jure taxes wni be oaio mey snouid -o: oe provoea me -esuitant tax amount not orovided was S1 3 m,i;ipn 13 Commitments and Contingent Liabilities Capitalized teases o`$l 7 253 000 and S'8 287 000 are included m Property Plant and Equipment-Net at Decembers1 I979anpi978 respectively Tne presevalue of future net minimum lease payments is rejectee as long-term pent (see Note 9i Tne maionty of the capital leases oenam to Dund ngs me most significant ot wnicn is tne administrative neaoquane-s ocaiea m Wayne N J The amortization asscc.ateo witassets recoroea unaer capital 'eases is mciudeo m ceoreCiation expense The company a; -as operatmg 'eases 'cr t-ansoc-a' cdata processng t c jipmeni arc fer o;ne- Dunomcs a seneo jie of t,, '? m 'nun ease payments u-ce' capita' ease arc - ,;ure --mimu-- -entai payment; required under c-g-ter-- -oncance'iaoie 0Dera! -c eases as o` Dece^oe' 31 '979 s as`Cows 98C C. Z'l s": Zacs .eases i 5 3-;: Zze-yz _t5-- ; '` f '96Z 9a: 96- w3:e' ea*: T^ta '-w'*'cax^e": tess -'e'es* -r _cec acc-e =-ese-t. a-je -`' ~ ~ ~ ease cav--e^'s : ?!' 'cfc32? 33' ` ` :~i : 'c 2-f j-; : r: 3.'- Tne compa-v nac cc--~e-ts c1 accc "ate . S27 ' `2 000 at Dece-"be' 5' `979 'c -e aca- s' c P'ooert, pent ana ec~ c-e-1 At Decempe' 31 '979 mere were cena - a.vscsx - ciams pencmg agams: me co-party m "= -c" " - managemeni me u tmaie aisocs'e- C -ese 2 ' nave ro materia1 adverse e*fect or tne co--oam ; consolidated fma-ca pcston GAF 12177 oi -u::c3: 14 Quartsriy Financial Data (Unaudited)' ______________________________________________________ Dollars in Millions 1979 By Quarter First SsCOftd Third Fourth Met Saies 9297.2 9296.2 9324.9 9324.9 Cost of Products Sold 193.8 219.6 239.0 240.8 Gross Profit 73.7 80.9 89.9 84.3 income oefore Otner income (Charges; and income Taxes ^OSS on silver futures transactions 9.2 11.3 14.3 -- (3.9) (2.1) 9Jt -- foreign exchange gams (losses) (2.9) (0.2) (2.7| (0.7) 0rr-net 1.1 .9 .9 3.3'* income from Continuing Operations Before income Taxes Taxes 7.4 8.1 10.4 11.8 2.1 3.1 0.1- 4>2... ;ncome from Continuing Operations 9.3 9.0 10.3 7.6 income from Discontinueo Segments. Net of income Taxes _---- Nei income Less P'elerred Stock Dividend Requirement 8.3 9.0 10.3 7.6 .9 .9 .9 .9 Nei income Appiicapie ic Common Siock 9 4.4 9 4.1 9 9.4 8 6.7 Earnings per Common Share. First $229 8 165 3 64 5 65 _ 01 04 70 30 4.0 1 41 9 $ 32 1978 By Quarter Second Third $279 4 $278 4 202 3 77 1 20i 5 76 9 14 9 _ 03 (0 5) 14 7 60 87 i4 7 _ 25 04 176 88 88 2 10 89 98 .9 9 $ 80 $ 89 Primary Continuing Discontinued Net income Fully Diluted Continuing Discontinued Net income Dividends per Share Common Preferred Dollars 9 .33 9 .30 9 .70 6 .60 ---- S .33 9 .30 9 .70 S .90 $ 23 O1 $ 24 $ 59 01 $ 60 $ 59 08 $ 67 9 .31 9 .28 9 .99 9 .44 ------_ 9 .31 $ .38 S .99 $ -44 $ 23 01 $ 24 $ 50 01 $ 51 S 5i 06 $ 57 .17 .17 .17 .17 .30 .30 .30 .30 15 15 17 30 30 30 PcunS2'5 ~ 196 8 78 9 14 ~ 17 164 7 e, 89 25 11 4 Q $ 135 $ 60 18 $ 78 $ 52 3 $ 65 17 30 ;e Range of Securities Common (Low-High) _ ^referred (Low-High) 11*fc-13y 10V-12V* 10-11% V4-11V 15%-17% 14%.16% 14%.18% 13V-1V 8-1 Z'n 15-17'm " 1*1474 127s-'5*11 9^8-14'2 16V.-19 17''j-i9r'e U'/a-iS19 "evious'y reoorted quarterly financial data for 1979 nas oeen restated for capitalized interest See Note 2 Tciuaes $2 3 million for reduction m product liability reserves which was provided evenly m the eariie' Quarters of 1979 3 'mcome Taxes have Deen reduced Dy a United Kingdom tax revision $i 9million ana Si 3 millio''in the'Nra and fourth quarters respectively See Ncie 12 GAF 12178 35 Notes to Consolidated Financial Statements [continued) IS Impact of Inflation (Unaudited) Tne F nancia* Accountng Standards Boa'd (FASB) nas recentiv issuec a Statement!No 33-Rmaroai Resorting and Changing P-ices) wnerem guidelines were estabiisneo ana expenmentaron pv companies was requestec m an attemet to oete'm.ne wna: information is useful m gaining an understanding of tne impact of inflation on financial state ments ano now shouic suer supplementary information oe oorrayed Tne accompanying table Dresents me suppiementaryfmancia.aata lor'979 aoiusteo for general mflat on i constant ooiia' n,stor e cost data) The informat-on nas oeen ccmpneo using tne Consumer Price moex-Urban. to aoiust or restate certain nistoric costs to a constant value eouivaem to ave'age 1979collars in conformity wen me guidelines of the PASS omy oepreciaton expense arc cost of orooucts sold have oeen adiusteo Deo'eciation nas oeen increased to reflect tne expense wnicn would have oeen recoroed if the assets had oeen acou rec with average 1979 dollars ramer man with collars actually expenced m prior yea's The same procedures as mose used in the primary financial statements have oeen applied m these constant collar ca'cuiat ons w.m regard tc useful lives salvage values ana oeorecation Cost of prod ucts soiO nas Dee" me reased to reflect a restatement of histor c inventory costs at tne Beginning and end of tne year m average i979aoiiars Although 'eponea expenses have Oeen mc'easeo no related income tax benetir has been snewn Tnstreatment nignl.ghts a hiOOen tax oemg Pome Dy the compa-y as a result ol inflation SjDD`emeniarv c nanc.a> Data Aciusiec icr Gene'a< irtaton i Doi.a-s in 'rnovsancs i s-y ye3' '"CD^e fryr cornnwtng ooe'a*c^s as 'eoonea m re c? r'*.arv Siare^e^' o --'enis :c res'ate costs 'or 'ne e*ec:oi genera Deoreoato" C3S! Or C'OOuCtS SOIO ^css corvinL'^g ooerat'O^s aaiustea fcr r^e e^ec'sc* genera ^tigior ' aye'age '979aoi<ars Zy r ompoo snare D-'C"as *ig ooiwe- ca'r o^et rmcr.e:ar. iao-'<t'esn c Ojf'r'igtnevea- %e:assetsa:e^co'vea* cc^ca'ea A-r ooo* ne1 asse** c'S369 030- 1979 S 28,183 (15,548) (25,178) (15.541) (1-18) 22.209 5481.868 Dur ng in'iationary times captations of me Kino aescnDec acove wi: always result m oec'easeo constant oo iar prof tao'i-ty ascomparec wirn income caseo on n<sic' c cost comma. ooilars T~e guidelines esiaoiisnec by me FASB soeo'v mat a'mougn mere were gams from no org monetary iiabnites ana `rorrme nc'ease m net assets mese gams may ro: oe aggregated with me oss from continuing ooe'ations aoiusteo for the effects of genera' m'laton shown m me above tan e 36 T-e gam from noiomc net moneta'y i.arr- it es ar,ses because ounng'979 the company ne'O mo'e laontes A-mcn were tixec m amount o' aoiia-s tc be 'eoaic ma~ assets simnary t-xea m amount o' oc'ia'S to be rece .eo Sim.nany the increase m tne net assets at veareq r?"ec's me `act mat me company s inventories arc p-ooen es nostates m '979aorars nave substantially grea;er .a"ue is recoroeo usmg gene-any accepteo accounting cr nc c es as s recuired m the primary fmanc a- statements Beginning with the Annual RebOl for 1980 in.fprma'or or bom an histone cost constant dollar basis ano a cur-en- cosbasis wnl be presented ano wit1 mc.ude comparacie mtc'~a. lion for 1979 Aacitional information with regard to me esumateo replace ment COS! Of inventories ano brODerty. oia~t ano eouipme-: as well as tne related estimated effect of such cos; on cos: c prooucts soio and depreciation expense s mciuoeo m mo company S Annual Report Form 10-KiacOPy 0`wnicn is available on request) as Mec wun the Securities ana Excnange Commission Seiectea constant ooliar information *cr eacn of tne pricr; -,e years is induced in mis report on page 2a Deloitte Haskins-Sells Certified PuO'ic Accountants Two B'oaOway New York N Y 10CX)A To Sra'enoiae's and 3oara of D rectors of 3AF Corporation We nave exam neo me consc caiec oaiance sneeis c Gaf Corpcrat.on ano ts consofoateo s ucsidianes as c: Decempo' 31 1979 ana ` 976 a~a ne 'e'ateacorsa aatec s'atements of ncome -etamec e = '".ngs anacn.anges ~ ` nancia1 position fo'tre vea-s men enceo Ou-examna- or; were mace n accordance Aim generam accepted ap' ; s'anparos ana acco'pmg'v me uaea sjo-testsofme accc-ntmc 'eco'as arc s-cr cmer auditing o'oceou'es a; we consioerea necessary m me c rcumstances inouropmon such'na"ca statements present tany me fmanoa 00stionotmecor-panesatDecempe'3' -9'9 ana '975anatne resu :s o' me r ooe'ations anc mecnange; m me r financial pes t or ipr -ne yea's men enoe: n ctm'c'- mgeneral!* accepteo ac:ourtmc pmc.pies aoc ec on accns'sren: cas.s except tc- me c-a-ge w.m *" ;;n' Cur n me mernco o` accounting for capita.iza'cn, c'<nte'?s' cosfs aescrpec n Note 2;c me linanoa' staie^em; S)JLxU FeoruaryA '980 GAF 12179 uV 0 Products and Services chemical products oaf' Clumicals High-pressure Acetylene Derivatives sc-.^e's rooc-.'"e's -- rrc5n ~ ^-0"Y16o a'es a^o j~=c 3 c^e^cais Sv.cn as Gan--eo ' -a/sca. -es.r-.s Pasoone' cnam-a-=y;3 sene'cir.ae' 0-\c.3'` -sz :?r !c'Dee'ana A'-'e a'seotne-oaucs aenve; "O'" ace-vene ;;r '-e*'ie aonesive j-c 3 vane;* z' o:ne' mojs;- es Industrial Organic Chemicals ~ ~* Z * Z 3^0 g ;D^3l'C :*-' -j$e asaezve -rez-e^is anc as mie^ecates in -i 3-.s c-a'^aceurca agr.cL.,,*u'a' = -: c^-e^'Ca1 processing inous:r-es Iron Powders y :':sccC'C-s oe sche'es c 'cr .5;: '-'HFa-c Jwfr ci'Cunry 'S-=--i:_e'5 'ecewe'S raoa' ancr r:zi' nne!a,;ij'g'. Latex Polymers and Compounds : S6P ana o'ne' iat ces -g Ga'ccte ` conDouios tc -i nz ce'S a-c coatings o'1 roc ucnoste'. "euve`aC'cs . i'-o caoeroca'o norsevers - sc-esves Specialty Chemicals - .35: "5 3'C O'nnt.a'mg aaenis : -2 Ga`?e' '?)iMe 3j* nanes = " ` cocoes GaTS'a" a^t stars =. o a-; -".s-agen-s aaa - .es Cneeo' . ; =':$ -r-.a,a* i-p;a - i' E ZZ"Z%`Zr i^^'O^O'S - sz ^en's `or _,se r--i nous*/ es ano in reCvC mg " '=' " a-c CO :j:ion control c a"t gre/.tn -egutater `o' use =': -s ssr-c j.'urat c'cos Surfactants an.;n,c cato"c ano ' T'c 5j''ace-ac:-ve agents ter ' 35Je'Qo"'S ers ' 3"c wetting agents OAF' Engineering Plastics GaMe ' PB'anc Ga'tj' '* PS* tr-e"-0D ast c -ao'O'ng CC"CC`jr'CS to' automobile mecnan.ca a~c eer-ca carts eect'ca1 eieo'cc cc"00nents 3DC .ance nous ngs ano Dusmess "nacrines OAF' Mineral Products Minera' Q'anu.es to' 'oc'iog ana other uses ngn i.ners Dry ana saturated s.'s ano nas: cs ter noise aosorction ano scuna ba-ner aooicat.ons Aoonares ana automet ve gasxeting "natenais PHOTO A REPRO PRODUCTS QAF' Photo Products Graphic Arts Ga`~iate ` Urns ana cnem.ca's for c'tse' coning Dnotcli:nograDfy onctoengraving -o'Cgravure anc s.i'-screen prnt.ng GatmaliC ' racCaccess tims ana chemical Ga'tvcecnototvcesetting oaoers 3n0 cnem.ca's Pictorial Products y-e*'Mas:er' 3-D v.ewe's ano C'Ct_,-- ee's Pana-Vue 1 s1 ae v eA-ers anc c.cto' a1 co'cr si aes 'o' ec jea: o'" a enie"ainmer! anc ccnre-c a uses En-e''ainer! ara ire.-. Sea-" " 'c. slice co ecters DcuDe-Vue ' -o* mens viewer ana cart- ages Me'oc< Maaness " eiect'oric ga~e Special Photo Products Aerial > im ana onotogragn c --a'e' a s tor se-smic reccraing n-'j"e-:a! c Survey ance ano csci'iocrac'. X-ray Gatmec - mea ca >-ra. -"s f,me szarc cassenes ti m torce^tai rsoograc^.v <->0\JSlr'5` x-r3v I 'ms anc Cne^'Ca s raa'Oiogic leac^mg aias CAF' Reprographic Product* Audio-visual C^emeac crciec'jo'* ,ranscarec, ser-es`c* c^sc^cc CE'-ege r$,r-c''cr ar-3 "^aie^a's Succ-es D'azc `'-^s `cr crec-ar ng o*e,neae Dro-e:\or ra'*5C3re''ces arccvr(a*5 r a var'e:. c zz-c'S Micrographic D.azc auo' ca'mg c'C'^^s anc c aze ' Gbpucaicrs Raproduction ses! zee ~a'*r-= s *cr e^c nee' ~z anc ObS'^ess s.s'e^s c'a"''c ^a:ena:s arc i^cc es BUILDING MATERIALS GAF* Building Products Insulation Products Gafremp* u'e'^a^e oer"'e b'e^ane-oen.-.e anc sc^e -nsu'aton ooaras 'C' Db-'-bC aoDfcai'C^s GaM :e ' roz- -'s^ a' fasteners '`Sb.a:m^ Roofing Products Tino^f ine * $nmg,es a^c aSD^a1! SniOg.es rC 'ZZ'^G 'OCi ng `e^is arc asona'`i sys'e^s crc*ez* zza: "gs a^z cenneors Minera 5r,e appt-ea 'c-c* ~z ^2'~na $ Siding Products Vangca'C * soi'G. sc-ng'p- res.o rg anc ne.'* zz~s,r~>c' scit(; aa fasc a svs:e^s GAF* Floor Products Ga^s'a- * snee- ?:ocn^c arc res *'oor' ^es v:-' 'e$ ce-` a ccn"^ercia jses 5ure-St'**-' acne- s vr*oac-er ' es 'Z' cr - - ,c'se-` ma'-e1 '? Gbr*-Ccf* a::essz-es ,"S'5' a' z" 'C; 3 ar^es .e= a^c^c-c' zare zmz.rs GAF* Automotive Products SERVICES Chemicals C-S`Z~ '3' .*3; _*: ; ze.e 2^3'" ' ?; zZ'~ r'Z a Custom Manufacturing Dlaxo Equipment Sarvice epb c^e-'1 Transparencies C^s'c^ ;.?"?3z ze'.'Ce .r. GAF 12180 Ul-L' - / - b Zj 37 GAF GAF Locations Corporate Offices Domestic Operations Alabama Arizona California Colorado District of Columbia Florida Georgia Illinois Kentucky Maryland , 1' Oregon Pennsylvania Massachusetts Michigan i Minnesota Missouri New Jersey 1: South Carolina Tennessee Texas f; Utah Virginia i ' Wisconsin New York Domestic Subsidiaries North Carolina Ohio Major International Manufacturing and Marketing Locations Australia The Netherlands ; ! New Zealand Austria Belgium Brazil Canada Norway Singapore South Africa Spain ; j Denmark i, u Finlaif t . iKf.. France t .. . Great Britain Switzerland West Germany Affiliates: GAF Huls Chemie 1 Sawyer's Asia Pty. Greece Ireland Israel Italy Mexico