Document by2bGO5gr6yQGJ6zX8vY4kkqy

FILE NAME: Philip Carey (PC) DATE: 1981 PC071 DOC#: PC071 DOCUMENT DESCRIPTION: Entry in Moody's Industrial Manual 1981 VOL. 2 J-Z J /A l ic / COVERING NEW YORK, AMERICAN & REGIONAL STOCK EXCHANGES & INTERNATIONAL COMPANIES INDUSTRIAL MANUAL WILLIAM o . DWYER, Publisher HOWARD G. KIEDAISCH, L. JOSEPH ROGERS, Gen. Manager ROBERT p. HANSON, Editorial Board ROBERT W. BURKE BRIAN T. COFFEY ALFRED G. ELLINGHAM HAROLD H. GOLDBERG ALVIN E. GOUVIA JOHN J. IERACI BERNARDO DIANE R. KRUTZ JOSEPH B. LEICH WILLIAM H. MOORE WILLIAM M. PACCIONE FRANK R. PLATAROTE MICHAEL A. RABBIA . SCERI, JR. Moody's Investors Service a company of The Dun & Bradstrcct Corporation SEE FOLLOWING PAGE FOR COMPLETE LIST OF OFFICES Copyright 1981 by MOODY'S I.W KST ORS SERVICE, INC. New York Ail rights rosorvod. 5640 MOODY'S INDUSTRIAL MANUAL On O ct, JL 1971 op en ed W a lt D isn e y W orld Costs & expenses: in C e n tra l F lo r id a . Entertain., etc. .. 515,848 450,435 402,492 In M a r ., 1979, sold C ro w n S p o r ts C e n te r, Film rentals......... 112,725 94,556 98,016 D enver, C olo. Consum. prod.. Business: E n g ag ed in p roducing and distrib e t c ......................... 54,632 46,087 43,095 uting color anim ated cartoon and live action T o t a l ............... 683,205 591,078 543,603 m o tio n p ictu res and television p ro d u ctio n s. Oper. income. . . . 231,300 205,695 197,540 P ictu re s a re of tw o classes, sh o rt su bjects and Corporate expenses: fe a tu r e len gth su b je cts. A lso licenses fo r c o m Gen. fit admin.. . , 21.230 17,830 17.212 m e rcia l p u rp o se s th e u se of n a m e s, c h a ra c te r s , Proj. design designs, m usic and figures developed by com a b a n d ................ 4,294 2.390 3,311 p a n y in co n n ectio n w ith p ro d u c tio n o f m o tio n Interest, n e t ___ cr42,l 10 Cr28,413 cr 12,468 p ictu res and p re p a re s co m ic strip s an d m a te Income taxes . . . . . 112,800 100,100 91,100 rials fo r b ook s. A lso d istrib u tes 16 m illim eter, Nat In co m e . . . . . 135,186 113,788 98,385 n o n -th e a tric a l film an d is en g a g e d in m u sic Prev. ret. earn.......... 425,203 326,911 257,899 business, D isneyland and W alt D isney W orld togeth Divs. (c a s h )............. 23.280 15,496 10,273 er with various am usem ent attractio n s, spe Divs. ( s t k . ) ............. Retained earn. . . . . 537,109 425,203 19,100 326,911 cially merchandise and souvenir shops, res tau ran ts, and exhibits sponsored by national E a rn ., com. sh. . . *4.16 *3.51 *3.04 c o m p a n ie s, a c c o u n ts fo r 7 2 % of c o m p a n y 's A fter 48,052,000 (1979, *46,474,000; 1978, gross. *46,489,000) deprec. & amort. Before corporated D isn ey W o rld d e v e lo p m e n t in F lo r id a is b e expenses. GDAs reported on 32,513,000 (1979, ing built in se v e ra l p h a se s. F i r s t p h a se , w hich 32,426,000; 1978, 32,397,000) aver. com. & com. equiv. in clu d es a p ark sim ilar to D isn ey lan d , r e s o r t sha. h otel an d m otel a c c o m m o d a tio n s an d v a rio u s Yr. End She.: re cre a tio n a l facilities, o p en ed on O ct, 1, 1971. 1980 1979 1978 S e co n d p h ase will in clude E P C O T , th e E x p e r C o m m o n ............. .... 32,354,319 32.299,431 32,246,251 im ental P rototyp e C om m unity of T om orrow , of which the perm anent international exposi Consolidated Balance Sheet, as of Sept. 30 tion know n as T h e W orld Show case is a m ajo r ($000 om itted ): p a rt. C onstru ction of the E P C O T C enter Be Assets: 1980 1979 1978 g an in O ct. 1979 w ith co m p le tio n e x p e c te d to Cash & equivs......... 328,278 354,890 287,599 be in O ct. 1982. R e c e i v a b le s ............. 50,711 37,122 26,708 Property: P rin cip al p la n t lo c a te d in B u rb a n k , Prewi. in proc. . . . 61,127 38,278 32,453 C al.; consists of 61 buildings on a site of 44 Scenarios, e tc .. . . 54,648 41,874 39.404 a c r e s of lan d ; a lso ow n s 708 a c re s o f ra n c h Prepays..................... 11,438 8,977 8,284 p ro p e rty in N ew hall-Saugus are a . C eases 26,400 sq . ft. at 477 M adison A ve., New Y o rk ; Total curr......... 506,202 481,141 394,448 a ls o 4 3 sq . m iles o f lan d in F lo r id a so u th w e st N et prop., e tc .. . . 583,101 571,387 577,623 of O rla n d o . O w ns a n d o p e ra te s D isn ey lan d C o n stru ct................ 163,031 60,796 39,374 P a rk at Anaheim , Cal. L a n d .......................... 16,414 16,264 16,888 Principal D om estic Subsidiaries: W a lt D isn ey Film prod, costs . . . 59,281 47,610 40,822 M u s ic C o ., W o n d e rla n d M u sic C o ., In c ., B u e OtheT assets ........... 19,378 19,226 13,986 na V ista D istribution Co., Inc.* B uen a V ista In ternation al, In c., W alt D isney W orld C o., Total ............... 1,347,407 1,196,424 1,083,141 W a lt D isn ey E d u c a tio n a l M ed ia C o ., W a lt Liabilities: D isn e y T r a v e l C o ., In c .; L a k e B u e n a V ista Accts., etc., pay. . . . 109,047 74,591 65,059 Com m unities, Inc, Income t a x e s ......... 36,244 45,177 48,615 C o . also h as su b sid iaries in 11 fo reig n c o u n tries. Total curr......... 145,291 119,768 113,674 Jo in t Venture: In A p r. 1979, C o m p a n y fo r Long-tm. debt......... 30,429 18,616 11,393 m alized a final defin itive a g re e m e n t on its Def. inc. t a x ............. 96,889 96,978 96,839 *3(X>.000,000 T o k y o D isneyland. Common stk............ 537,689 535,859 534,324 U n d e r th e a g re e m e n t, th e J a p a n e s e firm . Retained earn.......... 537,109 425,203 326.911 O rie n ta l L a n d C o . will p ro v id e th e m o n e y to build and o p erate the am usem ent p ark on a T o t a l ............... 1,347,407 1,196,424 1,083,141 6 0 0 -a c r e peninsula in T o k y o B a y e a s t of T o Net curr, assets . . . 360,91! 361,373 280,774 k y o , an d C o. will p ro v id e its m a n a g e m e n t an d Net tang. com. sh. . *33.23 *29.77 *26.71 construction expertise. D eprec............... 352,051 310,750 275,758 C o m p a n y will re ce iv e a r o y a lty p e rce n ta g e Lower cost or mkt. of g ro s s reven u es of p a rk scheduled to open In 1983. Long Term Debt: O u tstand in g Sept. 30, 1980, O ffic e r* *30,429,000 various long term debt and ad E .C . W alk er, Chm n. & Chief E x e c . Off. vances. D .B . T atu m , Chm n. of E xec, C om m ittee Revolving Credit Agreement: In O cto b er 1979, R .W . M iller, Pres. & Chief O per. Off. Co. executed an agreem en t with a bank for an M. L . B agnall, Senior V ice-P res.-- F in an ce unsecured five y e a r revolving line of credit of R.T. C ay o , Senior V ice-Pres. *200,000,000 a t the prim e rate. U nder the line V. H . Je f fe rd s , S en io r V ic e -P re s .-- M a rk eotifncgre d it, th e C o m p a n y is re q u ire d to p a y a fee D iv isio n on the unused portion of the com m itm ent and J.B . Lindquist, Senior V ice-Pres.-- Adv., Pub,, m aintain certain com pensating balances. Prom otion & Pub. Relations Capital Stock: Walt Disney Productions com B. K. M dse. Boyd, V ice-Pres.-- Consum er P ro d u cmtso&n; no pan J.M . D eetjen, V ice-Pres.-- T a x Adm. Counsel A U T H O R IZ E D -- 75,000,000 shares; outstand ing, Sept. 30, 1980, 32,354,319 sh ares; reserved R .T . M orrow , V ice-Pres.-- Gen, Counsel Franklin W aldheim , V ice-Pres. & E astern for options, 570,982 shares; no par. Counsel P a r changed from * 1 0 to *5 in M a r., 1940, R .A . N u n is, V ic e -P re s .-- D isn ey lan d 8c W a lt fro m * 5 to * 2 .5 0 A u g. 20, 1956 an d fro m S 2.50 D isney W orld Oper. to *1.25 p a r N o v . 15, 1967, all b y 2 -fo r-l splits; R .W . G ibeaut, V ice-Pres.-- Studio Opers. p ar changed from *1.25 to no p a r in F eb ., 1977 H ow ard Roland, V ice-Pres.-- C onstr. Con sh.-for-sh. tra ct Admin. & Purch. V O TIN G R IG H T S -- H as one vote per share. L en n art Ringquist, V ice-Pres.-- Television P R E E M P T IV E R IG H TS--None. L .R . M arr, V ice-P res.-- C orp. & Stk. Aff. D IV ID E N D S PA ID -- (calendar years): C. G. Bongino, V ice-Pres.-- E P C O T On *2.50 p ar shares: D. A. Smith, Sec. 1 9 5 7 .......... $0.30 1958-67 . .*0.40 B .F . Johnson, Contr. On $1.25 p ar shares: L .L . K irk, Asst. Sec.-- T reasu rer 1968-69 . . .0.30 1 9 7 0 ........... 0.30 1 9 7 1 .. .*0.07% W. A. J ones, T reas. On *1.25 p ar shs. (after 100% stk. div.): N .E . M cClure, Asst. Sec. 1971 ..............0.15 1 9 7 2 .............0.20 1 9 7 3 ............0.06 D .A , E sce n , A sst. T re a s . & A ss't. C o n tr. On $1.25 p ar shares (after 100% stk. div.): D .E . H ouck, Asst. Contr. 1973 ............. 0.09 1 9 7 4 -7 6 ...0 ,1 2 1 9 7 7 ........... 0.15 D .E . T ucker, Asst. Contr. 1 9 7 8 ............ 0.32 1979 .............. 0,48 1980 .............. 0.72 D ire c to r* 1 9 8 1 ............0.25 D .B. T atu m E .C . W alker Also stock dividends: 1957, 1959, 1960, 1962, W .H . Anderson R .E . D isney 1963, 1964, 1965, 1966, 1967 and 1968, 3%; 1969, 2%\ R .W . M iller R .T . M orrow 1970, 2% ; Jan. 1, 1971, 2% ; Feb. 27, 1971, 100%; 1972, Caroline L . P .M . H aw ley 2%; 1973, 100%; 1975, 2% ; 1976, 3% ; 1977, 3% ; 1978, A hm anson R .L . W atson t i/no/ Auditors; P rice W aterh o u se fic C o , Annual Meeting: F irs t W ed. in F eb . No. of Stockholders: Sept. 30, 1979, 6 5 .000. No. of Employees: S ept. 30, 1979, 21,0 0 0 . General Office: 500 South B u en a V ista S t., B u r b a n k , C A 9 1 5 2 1 . Tel.: (2 1 3 )8 4 5 -3 1 4 1 . Consolidated Income Account, years Sept. 30 ($000 om itted ): Revenues: 1980 1979 Entertain., etc. .. 643,380 571,079 Film rentals......... 161,400 134,785 Consum. prod., etc............................. 109,725 90,909 T otal ................... 914,505 796,773 ended 1978 508,444 152,135 80,564 741,143 GOTOJan. 5. O F F E R E D -- (208,991 shs.) at $79 a sh. on Ju n e 3, 1969 thru K idder, Peabody & Co., Inc. and Lehm an B roth ers and associates. Offering did not rep resen t new financing. (500,000 sh s.) a t $148 a sh. on Ja n . 6, 1971 thru Kidder, Peabody & Co. and Lehm an Brothers, Inc. and associates. L IS T E D -- On N Y S E (Sym bol: D IS ); also listed on Pacific and Swiss Stock Exch anges; unlisted trading on B oston, Philadelphia and M idwest Stock Exchanges. T R A N SFE R & D IV ID EN D D ISBU RSIN G A G E N T & R E G IS T R A R -- Bank of Am erica N .T , & S.A., San Fran cisco . P R IC E RANGE-- 1980 1979 H ig h ........................ 53% 45% Low ........................ 40% 33 1978 1977 47 Vs 47% 31*/2 32% 1976 63 41% JIM WALTER CORP. History: In c o rp o ra te d in F lo rid a , A ug. 22, 1955 to acquire assets of W alter Construction C o. established in 1946. On Aug. 31, 1964 m erged the Celotex Corp. by issuance of 3.3 (a s presently constituted) com pany com m on shares for each Celotex com m on share (1,230,192 shs.) and one new com pany 5 % cum ulative preferred share for each Celotex preferred share (251,860 shs.). In N ov. 1965 acquired Edw ards Pow er D oor Co., Inc., m anufacturer and distributor of autom atic door operating devices and relat ed p rod ucts. On Ja n . 5, 1966, acquired assets of B re n t wood Financial C orp. for 390,650 new S l.20 convertible preferred shares and 423.600 (as presently constituted) com m on shares (about 26.67 preferred and 28.92 (as presently consti tu ted ) com m on shares for each 100 B rent wood com m on shares outstanding. Brentwood is a holding co m p an y . T h ro u g h subsidiaries, o p erates a savings and loan business, an in surance agency business and acts as trustee under tru st deeds securing loans m ade by sa v ings and loan subsidiary. In 1966, liquidated w arren Industries. Inc. into P aren t Co. O n A ug. 1, 1967, T h e C elo tex C orp . acq u ired building m aterials operations (B arrett Busi ness) of Allied C hem ical C orp. for $20,000,000 cash and 731,607 shares of new $2 conv. pre ferred stock. In N ov. 1967, acquired Alger-Sullivan Co., Inc,, C entury, Fla., a producer and distributor of lam inated railroad flooring by issuance of 169,998 (as presently constituted) com m on shares. In Feb. 1968. acquired M arquette Paper C orp., Chicago, for cash and debentures am ounting to *6,227,865. In June, 1968 acquired rem aining m inority in terest in S outh C o a st C'orp. (6 9 % ow ned) bv issuance of 363,579 (as presently constitutecf) c o m m o n sh a re s a t ra te of 1,8 (a s p resen tly constituted) com m on shares for each m inority S o u th C o a s t sh a re (sold in S ep t. 1979). In Sept., 1968 acquired remaining m inority in te rest in S o u th S h ore Oil and D evelop m en t Co. by issuance of 353,454 (as presently con s titu te d ) co m m o n sh a re s a t ra te of 1.8 (a s presently constituted) com m on shares for each m inority South Shore share. In Sept., 1968 acquired assets and assum ed liabilities of Gilbert C. Van C am p In surance A gency, a general insurance agency for 32,061 com m on shares (as presently constituted). In D ec., 1968. acquired M ajestic Carpet Mills, Inc. and affiliates by issuance of 41,730 *1 .4 0 conv. ser. 2 third preferred sh ares with 40,230 issuable contingent on a 3-year earn ings form ula (no additional shares were is sued). In D ec. 1968, sold its 7 2 % in terest in F irs t N ational Bank, St. Petersburg, Fla. (see M o o d y 's B ank Finan ce M an ual) for about *15,770,000. In D ec., 1968 acquired Knight P aper C orp. by issuance of 118,629 (as presently con stitu t ed) com m on shares. On Feb. 21, 1969 acquired G eorgia M arble C o . b y issu an ce of 181(2oO co n v ertib le series 3 th ird p referred sh a re s in ex ch a n g e for G eo rgia M arble com m on and 3,608 series 4 third p re ferred sh ares in exch ange for G eorgia M arble preferred. In Apr. 1969, acquired M ohawk Tablet Co. for 30,000 com m on shares. On Ju n e 3, 1969, acquired 23.68% of United States Pipe & Foundry Co. com m on stock for *31,549,104 from "A utom atic" Sprinkler Corp. of Am erica. On Aug. 30, 1969 m erged United States Pipe & Fou n dry Co. into a wholly-owned subsidi a r y of co m p a n y in ex ch a n g e for 2,824,555 shs. of *1.60 cum ulative convertible fourth pre ferred stock. In Ja n . 1970, acquired Colom bia M oulding Co. for 200,000 Series 1 ^ixth preferred shares. On N o v . 2, 1971 acquired A etna Savings & L oan Assoc, bv issuance of 275,000 com m on shares; m erged into Brentw ood Savings and L oan Association. In M ar. 1972 acquired M onarch Am erica, Inc. for 122,010 com m on shares. In A p r., 1972, acq u ired 8 9 % in terest in P a n acon C orp. from Glen Alden Corp. for $o2; 0 0 0 ,0 0 0 cash an d in Ju n e 1972 acq u ired re maining 11% interest. In Apr. IV72, acquired North American D oor C orp., B G F R ealty Corp. for 126,909 com m on snares and organized Jim W alter Ad visers, Inc. In M ay, 1972 acquired Gam ble Brothers, Inc. for 270,247 com m on shares. In Sept. 1972 formed Jim W alter D oors as a consolidation of Alger-Sullivan Co,, Craw ford D oor Co., E d w ard s Pow er D oor C o., and N orth Am erican D oor Corp. In Sept. 1972 acquired M arble Products Co. for 104,035 shares of com m on stock. In N ov., 1972 acquired D .J. Dinsm ore for 168,007 shares of com m on stock. In N ov., 1972 acquired Christian W ood P rod u cts for 23,767 shares of com m on stock. MOODY'S INDUSTRIAL MANUAL 5641 In Ja n ., 1973 acquired C row n-T uft carp et division from Johns-M anvilie Products C or poration for cash. In M ay 1973, acquired J.P . H am er Lum ber Co. for cash. I n M a y 1973. a cq u ire d Q u in cy , 111. P a p e r Mill from P ackaging C orp . of A m erica for cash. In Aug. 1974 form ed Jim W alter Papers as a consolidation of The Knight, N ackie, M arguette and Converted P ap er Divisions. In Sept. 1974 form ed Jim W alter W indow C om ponents as a consolidation of\W arren In dustries, D .J. D insm ore and M onarch Am eri ca, Inc. In Jan . 1976 form ed Jim W alter Resources, In c. from a division of U .S . Pip e to direct C o .'s C oal M ine developm ent p rogram . In O ct. 1977, acquired G raham Paper Co. for ab out $12,000,000. In O ct. 1978, sold M ajestic C arp et Mills. In M ay, 1979 form ed Jim W alter M etals to p rovid e alum inum sheet and foil for internal use. In Sept. 1979, sold sugar op erations of T h e South C oast C orp. for $45,214,000. In Jan . 1980, acquired H all Paving Co. In M ay 1980, acquired Insul-Coustic Corp. In Sept. 1980, acquired O klahom a Envelope M an ufactu rin g Co, Also acquired, in Sept. 1980, Law ndale Industries, Inc. In D ec. 1980, through Brentw ood Savings an d L o a n A ssociation, acquired 15 sou th ern C alifornia branch offices from M utual Savings and Loan Assoc. Proposed Divestiture: In F e b . 1978, F e d e ra l T ra d e Com m ission ruled unanim ously th at C o .'s acquisition of P an aco n C orp . w as a n ti com petitive and violated federal antitrust law's. Acquisition, through C elotex C orp., subsidi a ry , created fu rther co n cen tration in an al read y concentrated asphalt and ta r roofing in d u stry, com m ission said. C elotex and a P a n a con division, Philip C arey Co., were leading co m p an ies in in d u stry. C om m ission ordered C o. to sell Philip C arey and a second P an acon division within a y e a r and barred Co. from acquiring asphalt or tar roo fin g co n cern s for 10 y e a rs. C o . said it will p u rsu e " all availab le legal rem edies" to resist divestiture order. Co. said it b eliev es acq u isitio n " h a s serv ed to in ten sify com p etitio n in roofin g-m aterials business ra th e : than w eaken or constrain it as com m is sion has found." R uling largely upheld an earlier decision by an F T C adm inistrative law judge. Full com m ission, how ever, ordered divestiture of both Philip C arey and C arey-C anadian M ines L td ., a supplier of asbestos fibers to Philip C arey, while F T C aide had recom m ended divestiture of only Philip C arey. D ecision is being re viewed by the U.S. C ourt of Appeals, O n S ep t. \2\ 1980 the c o u rt v a c a te d th e F i nal O rder of the F T C and rem anded the case to the F T C for reconsideration. B u sin ess: C o . th ru its su b sid iaries en g a g e s in sale, construction and financing of shell-type and partially-finished hom es. Also m anufac tu res and distributes a wide ran ge of building m aterials for residential, com m ercial and in dustrial uses and the developm ent of natural resources. A m on g the co m p an y 's o th er businesses a re distrib ution of a full line of q uality printing p ap ers, a southern California savings and loan operation, insurance agency services, a chain of retail credit jew elry stores and a wholesale diam ond operation. Property: Co. op erates ed as follows: T am p a, Fla. Lockland, O. Paris. Tenn. San Antonio, T ex. B essem er, Ala. C hattanooga, Tenn, H ialeah, Fla. A b in g d o n , 111. principal plants locat M arrero, La. L 'A n se, M ich . Cody, W yo. Burlington, N .J. Birm ingham , Ala. R o b in so n , 111. M onroe, O. Subsidiaries First Brentw ood Corp. D ixie Building Supplies, Inc. Best Insurors, Inc. Jim W alter International Corp. C oast to C oast Advertising, Inc. M id-State Hom es, Inc. T h e C elotex Corp. T h e Colom bia M oulding Co. Jjni W alter Com puter Services, Inc. Jim W alter Hom es, Inc. G eorgia M arble Co. United States Pipe and Fou n dry C om pany Jim W alter Papers, Inc. W alter Land Co. Jim W alter Resources, Inc. Officer J.W . W alter. Chm n. & Chief E x e c. Off. J.O . Alston. Vice-Chm n. J B Cordell. Pres. & Chief O per. Off. B.G . B retz, E xec. V ice-Pres. J.W . K ynes, Senior V ice-Pres. & Sec. Senior V ice-Presidents W .D . H erbert A .R . L au tx T ,L . H ires A .F . Saraw V ice-Presidents T.F. H egerich W .J. Im hoff W illiam C arr D .M . R oss R.A . D eW itt M. N . Richter T. C a s s a to , J r . W .T . Robinson Stanley G urak W .N . Tem ple A. Flores N . D. Zeigler C .B. H asty, Jr. K J . M atlock, V ice-Pres., Fin. C . F . W ilson , V ic e -P re s .-- L e g a l & A sa't S e c. W .H . W eldon, V ice-Pres. & C ontr. , D . M . Kurucz, Treas. r.O. A lsto n ;.B. Cordell 8 r.D . H e r b e r t R .H . H erzog T .L . H ires J.W . K ynes R .F . Lanzillotti Director T .C . M acD onald, Jr. A .F . Saraw D .C. Searle G .M . W oodfin Anders W all J.W . W alter General Counsel: S h a ck le fo rd , F a r r io r , S ta ll ings & E v an s, T am p a, F la .' Auditors: P rice W a te rh o u se & C o. Annual Meeting: In D ec. No. of Stockholders: A ug. 3 1 , 1980: P referred , 6,930; com m on, 9,860. No. of Employees: A ug. 31, 1980, 23,200. Office: 1500 N o rth D ale M a b ry H ig h w ay , T a m p a , F L 3 3 6 0 7 . Tel.: (8 1 3 )8 7 1 -4 8 1 1 . Consolidated Income Account years ended Aug. 31 ($ 0 0 0 o m itte d ): [6)1980 1979 1978 Net s a le s ................. 1,900,977 1,875,612 1.672,344 Time c h a rg e s ......... 65,636 56,070 46,682 Misc. incom e........... 17,622 16,596 15,947 T otal sales & re v s .. 1,984,235 1,948,278 1,734,973 Cost of s a le s ........... 1,536,898 1,480,718 1,304,770 Sell., etc. exp. . . . . . 185,370 181.744 170,666 Depr., depl., etc___ 50,009 42,088 39,740 Prov, for l o s s ......... 8,951 7,338 6,788 I n te r e s t.................... 83,297 78,925 63,136 Income t a x e s ......... 46,850 66,213 67,845 Equity e a r n s .......... 1,870 6,727 5,722 Extraord. credit . . . f39,472 Net Income .......... 84,202 97,979 87,750 Prev. ret. earn.......... 568,019 498,587 436,367 Pfd divs.................... 1.873 2,596 4,208 Com, divs.................. 29,584 25.951 21,32 2 Retain, earn............. 062 0 ,7 6 4 568,019 498.587 [TTimcs chgs. earn 2.57 3.08 3.46 rSi-Earn., com. sh. [384.85 $5.65 $5.05 jjS 112,000,000 not restricted. OUAs reported on aver, shs., ind. com. sh. equiv,; $4.70 (1979, $5.45; 1978. $4.87) fully diluted. tUBefore inc. taxes. ;>'JS4.30 ($4.18 fully diluted) before extraord. credit [^Arising from sale of sujjar business. [TIReflects chgc. in acctg. for interest capitalization which increased net income by $10,503,000 ($0 61 a sh. [$0.58 fully diluted]). Yr.-End Shs.: 1980 1979 178 C o m m o n .................. 16,396,149 16,060,972 15,498,980 Consolidated Balance Sheet, as of ($000 om itted): Assets: C a s h .......................... Rccciv., n e t ............. [^ In v e n to rie s......... Prepay., etc.............. 1980 27,951 1,005.594 323,047 8,437 1979 76,375 905,140 315,637 6,236 Aug. 31 1978 64,098 799,418 284,234 4,940 Total curr......... fUNet prop., etc----Qplnv, First Brtwd. Other invests........... Other a s s e t s ........... Unam. debt e x p .. . . 1,365,029 809,073 42,458 4,751 2,076 2,823 1,303,388 696,357 42,088 2,621 2,018 2,988 1,152,690 611,809 36,861 3,246 1,505 3,390 Total ............... Liabilities: Notes, etc., pay. . . . Accts. p a y a b le ----A c c r u a l s .................... Income t a x e s ......... Def. inc. t a x ............. 2,226,210 303,618 103,663 111,312 12,377 129,907 2,049.460 * 408,804 105,756 101,312 20,468 109,126 1,809,501 266,955 106,119 79,269 35,598 93,192 Total curr......... Long tm. d e b t......... Def. inc. t a x ............. Acer, pens., etc. . . . 5% pfd, ( $ 2 0 ) ......... [*3$1 60 cv pfd......... Com. stk. ($0.16y8) Cap. exc. par val. . . Retained earn.......... 660,877 668,153 136,297 40,356 5.037 152 2.733 91,841 620,764 745,466 493,751 107,745 34,714 5,037 208 2,677 91,843 568,019 581,133 514,915 86,022 29,164 5,037 301 2,583 91,759 498,587 Total ............... 2,226,210 2,049,460 1,809,501 Net curr. assets . . . 704,152 557,922 571,557 [VjDeprec., etc. . . 402,999 378,089 350,133 HGLower cost or mki: [TAt equity in net assets. [SjNo par shs.: 1980, 844,602; 1979, 1,155.007: 1978. 1,671,744. Auditor's Report: T h e follow ing is an e x ce rp t from the R eport of Independent Auditors, P rice W aterh o u se C o ., as it ap p eared in 1980 Annual Report. "In our opinion, the accom panying consoli dated balance sheet and the related consoli dated statem ents of incom e and retained earn ings and of source and application of funds p resent fairly the financial position of Jim W alter C orporation and consolidated subsidi aries at August 31, 1980 and 1979, and the re sults of their op eratio ns and inform ation on fu n ds fo r th e y e a rs th en en d ed , in c o n fo rm ity with generally accepted accounting principles consistently applied during the period except for the change, with which we concur, in the m ethod of accounting for interest costs as de scribed in N o te 3 to the financial statem ents." Long Term Debt: 1. dim Walter Coip. stnklne fund debenture 77/*s, due 1997: * Rating-- Baa A U T H .-- $50,000,000; outstg., Aug. 31, 1980 $37,452,000. D A T E D -- M ar. I, 1972. D U E -- Feb . I, 1997. IN T E R E S T -- F&A1 by mail to holders regis tered J& J15. T R U S T E E - --M a n u fa c tu r e r s H a n o v e r T r u s t Co., N Y C . D E N O M IN A T IO N -- Fully registered, $1,000 and any multiple thereof. C A L L A B L E -- As a whole o r in p a rt a t an y tim e on a t le a st 30 d a y s ' n otice to e a c h J a n . 31 as follows: _ 1982 104.194 1983 ....1 0 3 813 1984 103.431 1985 103.050 1986 . . . . 102.669 1987 . . . . 102.228 1988 ...,1 0 1 .9 0 6 1989 ....1 0 1 .5 2 5 1990 ....1 0 1 .1 4 4 1991 ....1 0 0 .7 6 3 1992 ....1 0 0 .3 8 1 thereafter 100. N ot callable, how ever, prior to F e b . 1, 1982 th ru refun d in g a t in terest co st less than 7 % % p er annum . Also callable for sink ing fund (w hich see) a t 100. S I N K I N G F U N D -- A n n u ally each F eb . 1, to 1996, cash (o r debs.) to retire $2,500,000 of debs. , plus sim ilar optional paym ents. Sinking fund designed to retire 95% of issue prior to m aturity. S E C U R I T Y -- C o. wijl n o t, an d will n o t p erm it any restricted subsidiary to, create, assum e or p erm it to exist an y m tge. o r o th er lien on a n y p rin cip al p ro p e rty o r a n y in v estm en ts in a n y restricted subsidiary w ithout securing debs, equally and ratab ly with other obligations thereby secured. Co. and its restricted subsidi a rie s shall n o t in cu r o r b eco m e liable in r e spect of any senior debt unless thereafter sen ior debt does not exceed the sum of (a ) 80% of net installm ent notes receivables and (b) 50% of adjusted consolidated net tangible assets. D IV ID EN D R E S T R IC T IO N -- Co. m ay not p a y cash d ivs. on o r a cq u ire cap ital sto ck in excess of consolidated net income after Aug. 31, 1971, plus net proceeds from sale of stock, o r debt converted into stock after such date, plus $50,000,000, S A L E & L E A S E B A C K -- C o . will n ot n o r will it perm it any restricted subsidiary to enter into an y sale and leaseback arrangem en t with respect to principal property, unless proceeds of such sale are at least equal to fait value thereof and Co. applies am ount equal to cash p ro ce e d s of sale to retirem en t oi o u tstg . senior debt. R IG H T S ON D E F A U L T -- Trustee, or 25% of debs, outstg. m ay declare princpal due and payable (30 d ays' grace for paym ent of inter est). IN D E N T U R E M O D IFIC A T IO N -- Inden tu re m ay be modified, except as provided, with consent of V6.s% of debs, o u tstg . L IS T E D -- On New Y ork Stock Exchange. P U R P O S E -- Proceeds to repay portion of outstg. short-term notes. O F F E R E D -- ($50,000,000) at 99.75 (proceeds to C o., 98.625) on Feb . 23, 1972 thru Loeb, Rhoades 8; Co. P R IC E RANGE-- 1980 1979 1978 1977 1976 H ig h ..................... 6 iy 4 . . . 92 . . . . 87 L o w ...................... <>0 . . . . 85 . . . . 79Y2 2. Jim Walter Corp. sinking fund debenture 9% s, due 1996: Rating-- Baa A U T H .-- $125,000,000; outstg., Aug. 31, 1980. $116,750,000, D A T E D -- M a r. 15, 1976. D U E -- F e b . 1, 1996 I N T E R E S T -- F & A 1, p a y a b le a t office of trustee, or by mail. T R U S T E E -- B ank ers T ru st Co., N Y C . D E N O M IN A T IO N -- Fully registered, $1,000 and any m ultiple thereof. C A L L A B L E -- As a whole o r in p a rt at an y tim e on at least 30 d ays' notice to each Jan . 31, as follows: 1980 .........108.00 1981 ............107.50 1982 107.00 1983 106.50 1984 106.00 1985 105.50 1986 105 00 1987 ............104.50 1988 104.00 1989 103.50 1990 ............103.00 1991 102.50 1992 102.001993 . . . 101.50 1994 ............101.00 1995 .........100.50 1996 ............100.00 N o t callab le, h o w ev er, p rio r to F e b . 1, 1986 th ru refun d in g a t in terest c o st less th an 9 Vfc% per annum . Also callable for sinking fund (w hich see) at 100. S I N K I N G F U N D -- A n n u ally, on F e b . 1, to 1982-95, cash (o r debs.) to retire $8,250,000 principal am ou n t oi deb.; plus sim ilar optional p aym ents. Sinking fund designed to retire 62 4 % of issue prior to m atu n ty . S E C U R IT Y -- N ot secured. Co. nor any re stricted subsidiary m ay create, assum e or per* m it to exist an y m ortgage or other lien on an y p rin cip al p ro p e rty o r an y in v estm en ts in an y re stricte d su b sid iary (o r in a n y b ank in g, s a v ings and loan or insurance subsidiary, w heth er or not a restricted subsidiary), without se curing the debs, by such m ortgage or hen pn o r in rank to o r equally and ratab ly with all o th e r obligations th ereb y secu red , e x ce p t (\\ certain p u rch ase m oney hens, (ii) liens on any p rin cip al p ro p e rty exi?>ling <m the d a te of the m dentuie, (iii) hens on principal p roperty ow ned by, o r on investm ents in, any co rp o ra tion existin g or cre a te d a t th t tim e suc.ii c o ip c - 5642 MOODY'S INDUSTRIAL MANUAL gra tio n is m erg ed in to o r c o n s o lid a te d w ith C o . or & restricted subsidiary or becom es a subsid iary, (iv ) renew als or refinancings of the fore- orng, (v ) certain statu to ry liens or deposits. ens arising under governm ent contracts and oth er co n tracts (other than for the paym ent of m o n e y ), an d liens arisin g in co n n ectio n with ta x e s o r litigation if n o t d ue a n d p a y a b le o r being co n tested in good faith, (v i) hens on a d vances by Co. or any restricted subsidiary to an y restricted subsidiary which is principally e n g ag ed in th e b u sin ess of c o n s tru c tin g , sell ing o r financing hom es or partially-finished hom es, (vii) liens securing indebtedness to Co, o r a restricted subsidiary and (viii) o th er liens secu rin g indebtedness n ot in e x cess of 2 % of the adjusted consolidated net tangible assets of Co. and its restricted subsidiaries. C o. and its restricted subsidiaries shall not in an y m anner, directly or indirectly, incur or becom e liable in resp ect of an y sem or indebt edness (other than renew als or extensions of senior indebtedness from tim e to tim e o u tst.) unless after giving effect th ereto th e senior in debtedness of Co. and its restricted subsidiar ies does not exceed the sum of (a ) 80% of net instalm ent notes receivable and ^b) 50% of the ad ju sted consolidated net tangible assets of Co. and its restricted subsidiaries. SA L E & L EA SEBA C K --O T H E R P R O V I S IO N S -- Sam e as s.f. deb, 7Vssf due 1997. D IV ID E N D R E S T R IC T IO N -- Co. m ay not p a y caah divs. o r acq u ire an y ca p ita l sto ck in excess of consolidated net incom e after Aug. 31, 1975, plus net proceeds from sale of stock or debt converted into stock after such date, plus *50,000,000. P U R P O S E -- Proceeds to reduce short-term debt. L IS T E D -- On New Y ork Stock Exchange. O F F E R E D -- (*125,000,000) at 100 (proceeds to C o ., 98.875) on M a r, 10, 1976 th ru Loeb , R hoades & Co. and M ernll Lynch, Pierce, Fen n er & Smith, Inc. and associates. P R IC E RANGE-- 1980 1979 1978 1977 1976 H ig h ...................... 83% 96% 103 105 101% L o w ...................... 68 76% 98% 103 98% 3. Jim Walter Corp., 8Va% eentor aubordlneted notes, due 1983: A U T H O R IZ E D -- * 12,500,000; outstanding. Aug. 31, 1980. $ 1,940,000. D A T E D -- 1968 and 1969. M A T U R I T Y -- A u g. 1, 1983. IN T E R E S T -- F&A I. C A L L A B L E -- As a whole o r in p a rt a t an y tim e on at least 30 d ay s' notice beginning Aug. 1, 1971 to each Ju ly 31, inch as follow s: 1981 . .. . 101.19 1982 .........100.60 1 9 8 3 .......... 100.00 P R E P A Y M E N T S -- * 9 6 0 ,0 0 0 e a c h A u g u st 1, co m m e n cin g A u g. 1, 1971. W A R R A N T S - E x p i r e d in 1976. 4. Jim Walter Corp. first subordinated deben ture 5 7/*s. due 1981: Rating-- Ba A U T H O R IZ E D -- *20.000,000; outstanding, Aug. 31, 1980, *3,458,000. D A T E D --J u n e 1, 1961. M A T U R I T Y -- Tune 1, 1981. I N T E R E S T -- J& D 1 a t office of tru stee. T R U S T E E -- Chase M anhattan Bank, New Y o rk . D E N O M IN A T IO N -- Coupon, *1,000; registerab le as to principal; fully registered, *1 ,0 0 0 and m ultiples thereof. C8tR interchangeable. C A L L A B L E -- As a w hole o r in p a rt a t a n y tim e on at least 30 d ay s' notice beginning Ju n e 1, 1966 to e a ch M a y 31, incl., a s follow s: 1 9 7 9 ........... 101 1 9 8 0 ........... 100% 1 9 8 1 ............ 100 A lso callable for sinking fund a t 100. S IN K IN G FU N D -- Cash (or debentures) to redeem at par *1,000,000 debentures each June l, l966-80j>lua sim ilar optional paym ents. S E C U R IT Y -- N ot secured; subordinated to superior debt; ranks prior to junior subordi nated debentures. C R EA T IO N O F AD D ITIO N A L D E B T -- C om pany m ay not create any debt for bor row ed m oney other tharf junior subordinated debt, superior debt and unsecured first subor d in ated debt if all su p erio r debt plus all first su bordinated debt do not exceed 4 0 0 % of all junior subordinated debt and adjusted net w orth. D IV ID EN D R EST R IC T IO N S-- Company m ay n ot pay cash dividends or acquire stock in e x ce ss of consolidated n et incom e after Feb . 28. 1961 plus *2,000,000 and net proceeds from sale after that date of stock, debt (other than junior subordinated debt) converted into stock and junior subordinated debt. IN D E N T U R E M O D IFIC A TIO N -- Inden ture m ay be modified, except as provided, with consent of 6 6 % % of debentures, P U R P O S E -----P roceed s to reduce sh ort term bank loans and finance sale on credit of hom es. W A R R A N T S -- Expired June 1966. P R IC E RA N G E-- 1980 1979 1978 1977 H ig h ...................... 95% 92 86% 86 L o w ...................... 89 86% 82 77 shell 1976 78% 66% 5. Jim Waiter Corp. subordinated 6s, due 1086: O utstanding, Aug. 31, 1980, *519,000. D ated S e p t. 1, 1955; d u e D e c. 31* 1986. N o t ca llab le until o u tstan d in g a m o u n t is red u ced below *65,000; thereafter callable a t highest of (1) $1,100* (2 ) highest m a rk e t price in 12 m on th s preceding and (3) *100 above m ean m arket price in 12 m onths preceding. N o t secured; subordinated to senior subordinated 5 % % notes due 1980 (N o. 3, above); senior subordi nated 6 % % notes due 1983 (N o . 4, ab ove) and first s u b o rd in a te d d e b e n tu re 5 7/gs, 1981 (5 ) and senior to (7 ) below. 6. Jim Walter Corp. subordinated 9s, due 2000: Retina-- Ba A U T H O R IZ E D -- *28.537,500; outstanding, Aug. 31, 1980**2,476,000. D A T E D -- S ept. I, 1955. M A T U R IT Y -- Dec. 31. 2000. I N T E R E S T -- F28& A31 by mail to registered ow n er. T R U S T E E -- Flagship Bank of T am p a, T am - e^ N O M I N A T I O N -- F u lly reg istered , * 2 5 . *100, S500 and m ultiples of #1,000, C A L L A B L E -- N o t callable until less than 10% of bonds are outstanding, when rem ain ing bonds are callable on 45 d a y s' notice a t h ig h est of ( 1 ) 110, ( 2 ) h ig h est m a r k e t p rice in 12 m on th s preceding and (3 ) 110% of the m ean m a rk e t p rice in 12 m on th s preceding. P U R C H A S E F U N D -- A nnually, beginning J a n . 1, 1971, 1 0 % o f c o n so lid a te d n e t in co m e in excess of *500,000, for p u rch ase of bonds at not exceeding face value; unexpended balance a t end of such y ear reverts to com pany. S E C U R IT Y -- N o t secured; subordinated to N o s . 1, 3. 4, 5 an d 6 a b o v e . O F F E R E D -- (* 1 ,250,000), with 50.000 co m m on shares, on Aug. 23, 1957 by C arl M . Loeb, R hoades & Co., N ew Y o rk and P resco tt, She- ard & C o., In c., C leveland, in units of one #25 ond and one com m on share at *48.50 per unit. (*1,250,000) at 105 (proceec.3 to com pany, 100) on Ju n e 18, 1959, by Alex. B row n & Sons, Baltim ore, and associates. Proceeds to reduce long term debt; for hom e construction and other purposes. P R IC E R A N G E -- 1980 1979 1978 1977 1976 H ig h ...................... 99% . . . . 99% 100% 99% L o w ...................... 84 . . . . 97% 99 96% 7. Jim W alter Corp. convertible subordinated debenture 5%s, due 1991: Rating-- Ba A U T H .-- *35,000,000; outstg., Aug. 31, 1980, *30,547,000. D A T E D -- Tan. 15, 1971. D U E -- Ja n . 15, 1991. IN T E R E S T -- J& J15 by mail to holders regis tered on 15th d ay p rior to interest d ate. T R U S T E E -- Chem ical Bank. N Y C . D E N O M IN A T IO N -- Fully registered, *1,000 and authorized multiples thereof. C A L L A B L E -- A s a w hole o r in p a rt on a t least 30 d ays notice to each Ja n . 14, inch, as follow s: 1981 .......... 103.00 1982 .........102.70 1983 ............102.40 1984 .......... 102.10 1985 .........101.80 1986 ........... 101.50 1987 .......... 101.20 1988 ........ 100.90 1989 ........... 100.60 1990 .......... 100.30 1991 .........100.00 S IN K IN G F U N D -- Annually, prior to Jan . 15, 1981-1990, to retire debs., cash (o r debs.) equal to *1,750,000 plus sim ilar optional p ay- m enu. S E C U R IT Y -- N o t secured; subordinated to all senior debt. C O N V E R T IB L E -- Into com . at an y tim e (if called on or before redem ption d ate) at *42 per sh. N o adjustm ent for interest o r divs, ex cept that debs, converted after record date and prior to interest paym ent d ate m ust be accom panied by an am ou n t equal to such in te re st w hich registered holder is entitled to re ce iv e . C a sh p aid in lieu of fra c tio n a l sh s. C o n version privilege p rotected against dilution. D IV ID EN D R E ST R IC T IO N -- Co. m ay not p ay cash divs. on or acquire capital stock un less sum of #25,000,000 plus o r m inus consoli dated net incom e o r loss of corp , and its sub sidiaries, earned subsequent'to Aug. 31, 1970 plus net proceeds of issuan after Aug. 31, 1970 capital stock and debt which has thereaf ter been converted into stock shall exceed sum of (i) all divs, expended by Co. after Aug. 31, 1970 and (ii) aggregate am ount of expendi tures after Aug. 31, 1970 for acquisition or re tirem ent for value of any capital shs. other than pursuant to redem ption of outstg. pfd. stock required to be m ade prior to Ja n . 15, 1991. R IG H T S ON D E F A U L T -- Trustee or 25% of debs, outstg. m ay declare principal due and payable (30 days grace for paym ent of inter est; 60 days grace for paym en t of s.f. install m ent). IN D E N T U R E M O D IFIC A T IO N -- Inden tu re m ay be modified, excep t as provided, with consent of 6 6 % % of debs, outstg. L IS T E D -- On New Y ork Stock Exchange. P U R P O S E -- Proceeds to repay short-term noted. O F F E R E D -- ($35,000,000) at 100 (proceeds to Co. 98.625) on Ja n . 26, 1971 thru Loeb, R hoad es & Co, and A.G. B eck er & C o., Inc. and associates. P R IC E RANGE-- 1980 1979 1978 1977 1976 H ig h ...................... 90% 90 91% 106 i l l L o w ...................... 70 77% 75 81% 85% 6. Jim Walter Corp. subordinated debenture 8s, due 1998: Rating-- Ba A U T H O R IZ E D -- *75,000,000; outstanding August 31, I960, #15,882,000. D A T E D -- J u ly 31, 1973. D U E -- A u g. 1, 1998. IN T E R E S T -- F&A1, T R U S T E E -- Citibank, N Y C . D E N O M I N A T I O N -- F u lly reg istered in d e nom inations of *25, *100, *1000 and any inte gral m ultiple thereof. C A L L A B L E -- A s a w hole o r in p a rt a t an y tim e upon at least 30 d ays notice beginning A u gu st I, 1973 to each Ju ly 31 incl. as follows: 1979 . . . . . 1 0 5 . 6 0 1980 . . . . .105.20 1981 . . . . . 104.80 1982 . . . . . 104.40 1983 . . . .. 104.00 1984 . . . . . 103.60 1985 . . , . . 103.20 1986 . . . . . 1 0 2 , 8 0 1987 . . . . . 102.40 1988 . . ...1 0 2 .0 0 1989 .. ...1 0 1 .6 0 1990 . . .. .101.20 1991 . . . . . 1 0 0 . 8 0 1992 . . . . . 1 0 0 . 4 0 1993 . . . . . 100.00 1994 . . . . .100.00 1995 . . . ..1 0 0 .0 0 1996 . . . . . 1 0 0 00 1997 . . . . . 100.00 S IN K I N G F U N D -- A nnually, com m encing in 1983, * 8 1 4 ,0 0 0 p rio r to each A u g u st 1. S E C U R IT Y -- N ot secured; subordinated to all senior and senior subordinated debt. L IS T E D -- On N ew Y o rk Stock Exchange. P U R P O S E -- Issued in an exch ange offer for s h a re s of C o .'s co m m o n sto ck a t ra te of *2 5 principal am ou n t of debs, for each share of stock under offer which expired Ju ly 30, 1973. P R IC E RANGE-- 1980 1979 1978 1977 1976 H ig h ...................... 75 81% 87% 91% 90% L o w ...................... 53% 69 76 86% 80 9. Jim Walter Corp. 8% % Notes, due 1984: A U T H O R IZ E D -- * 150,000,000; outstanding. August 31, 1980, *150,000,000. D A T E D -- Ju n e 3, 1977. D U E -- N ov. 30, 1984. P A Y M E N T -- P a y a b le in six eq u al se m i-a n nual installm ents on the last day of each M ay and N ovem ber com m encing N ov. 30, 1981. P R E P A Y M E N T -- Co. m ay not prepay any of th e n o tes, in w hole o r in p a rt, p rio r to Ju n e i, 1982. P a rtia l p re p a y m e n ts shall be in th e aggregate principal am ount of *10,000,000 or any integral multiple thereof. P U R P O S E -- Proceeds to be used to retire a p o rtio n of C o .'s s h o rt term debt. O F F E R E D -- Placed privately with a group of com m ercial banks in Ju n e 1977. 10. Jim Walter Corp. Floating Rats Notes, due 1990: A U T H O R IZ E D -- *150,000,000; outstanding Aug. 31, 1980, *150.000,000. D A T E D -- N o v . 5, 1979. D U E -- A pr. 30, 1980. P A Y M E N T -- P a y a b le in ten eq u al se m i-a n nual installm ents on the last day of each Apr. and O ct. beginning Apr. 30, 1985. P R E P A Y M E N T -- P artial prepaym ent shall be in the a g g re g a te p rin cip al a m o u n t of *10,000,000 o r any integral multiple thereof, with a 1% prem ium penalty on an y p aym en ts m a d e p rio r to N o v . 1, 1984. S IN K IN G FU N D -- Semi annual paym ents of *15,000 000 com m encing Anr. 1985. P U R P O S E -- Proceeds to be used to repay a p o rtio n of C o .'s sh o rt term debt. O F F E R E D -- Placed p rivately with a grou p of co m m ercial banks in N o v . 1979. 11. Other Oebt: O u tstan d in g A ug. 31, 1980, *169,205,000 com prising: (1) *29,995,000 9 % % notes payable to 1985. (2) *2,600,000 10% % inotes due to 1982. (3 ) *80,000,000 1 0 % % sr. sinking fund notes due 1987. (4) *6,550,000 6.4% -6.95% Industrial R eve nue and Pollution Control Bonds due 1990- 2003. (5 ) *50,000,000 11%% notes payable due 1988. (6 ) *60,000 other debt. U nder the m ost restrictive provisions of its various debt agreem ents Co. has agreed that (i) excep t as p erm itted , it will not, am o n g o th er things, p ay dividends, except stock divi dends, or purchase, redeem or otherw ise a c quire an y of its capital stock (*112,000,000 of retained earnings is n ot so restricted at A u gust 31, 1980) and (ii) senior indebtedness and to tal indebtedness will n o t exceed specified tests (*190,000,000 and *299,000,000, respec tively, are available for additional borrow ings at August 31, 1980). 12. Subsidiary Debt: O u tstan d in g A u g. 31, 1980, $14,275,000 notes payable and deben tures of various consolidated subsidiaries. Subsequent Subsidiary Financing: In J a n .. 1981, Co, reported th a t the offering abroad of U .S. *25,000,000 Jim W alter International F i nance N .V ., subsidiary, guaranteed floating rate notes, Ja n . 1988, at par, was com pleted. T he notes were guaranteed by Co. Capital Stock: 1. Jim Walter Corp. 5% cumula tive preferred; par $20: A U l'H .-- 300,000 shs.; outstanding, Aug. 31, 1980, 251,860 shares; par *20. P R E F E R E N C E S -- H as preference ahead of all other stock for assets and divs. D IV ID E N D R IG H T S -- Entitled to cum . divs. of 51 a sh. an n ually, p ay ab le q u arterly . D IV ID E N D R E S T R IC T I O N -- See long term debt, above. D IV ID E N D S P A ID -- Initial dividend of 25 ten ts paid N ov. 30, 1964. R egular dividends paid quarterly thereafter. V O TIN G R IG H T S -- None, except on default of divs. of *2 o r m ore, then, until all unpaid divs. have been paid. pfd. has one vote per sh;; on default of divs. of S t.50 or m ore, then, until all u n p aid d ivs. h a v e been p aid , pfd. is entitled to e le ct tw o d ire cto rs in ad dition to th o se o th erw ise elected. C onsent of 6 6 % % of pfd. re quired to am end term s adversely. L I Q U I D A T I O N R I G H T S --O n a n y liqu id a tion, entitled to *2 0 a sh,, plus divs. MOODY'S INDUSTRIAL MANUAL i 5643 C A L L A B L E -- As a whole or in p a rt on an y dividend d ate on at least 30 d ay's notice at $20 a sh. plus divs. P R E E M P T IV E R IG H T S--None. L IS T E D --O n N Y S E (Sym bol: JW C P r). T R A N S F E R A G E N T -- Chem ical Bank, N ew Y o rk . R E G IS T R A R -- C hase M anhattan B ank N .A ., N .Y . P U R P O S E -- Issued (251,860 sh s.) in A ug. 1964 p ursuan t to m erger of C elotex C orp., un der w hich one pfd. sh. was issued for each pfd. sh. of Celotex Corp. D IV ID EN D D ISBU RSIN G A G EN T -- Com pany. P R IC E R A N G E-- 1980 1979 1978 1977 1976 H ig h ................................... 11% 12*/8 12% L o w ................................... 9% 10 11% 10% 2. Jim Walter Corp. $1.60 convertible fourth preferred; no pan A U T H O R IZ E D -- 3,700,919 shares; ou tstan d ing, A ug. 31, 1980, 844,602 shares; no p ar. P R E F E R E N C E S -- H as preference after 5% cum , pfd. and T hird pfd. for assets and divs. D IV ID E N D R IG H T S -- Entitled to cum . cash divs. of $1.60 a sh. annually, payable q u arter ly, Tan. 1, etc. D IV ID E N D R E C O R D -- Initial dividend of $ 0 .4 6 % p er s h a re p a id J a n , 1, 1970; re g u la r q u arterly dividends paid thereafter. L IQ U ID A T IO N R IG H T S -- In any liquida tion, entitled to $40 a sh., plus divs. V O T IN G R IG H T S -- H as one vote per sh. with non-cum ulative voting for directors. If divs. are m arrears for $2.40 or m ore per sh. then voting as a class, is entitled to elect 2 a d ditional directors. C A L L A B L E -- As a whole o r in p art on an y dividend d ate on at least 60 d a y 's notice after D ecem ber 28, 1974 for $50 per sh. plus divs. C O N V E R T I B L E -- In to com . a t rate of 1.08 com m on shares for each preferred share. Cash p aid in lieu of fra c tio n a l shs. c o n v e rsio n p riv i lege protected against dilution. P R E E M P T IV E R IG H TS-- None. T R A N SFER A G EN T & R EG ISTR A R-- M anufacturers H anover T ru st Com pany, New York. P U R P O S E -- O riginally issued in A ug. 1969 upon consum m ation of m erger of U .S. Pipe into wholly-owned subsidiary of Com pany. L IS T E D -- On N Y S E (Sym bol: JW C P r D ). D IV ID EN D D ISBU RSIN G A G EN T --JW C C orporate H eadquarters, T am p a, Florida. P R IC E RA N G E-- 1980 1979 1978 1977 1976 H ig h ...................... 40 38 37 Va 42V 48 Low ...................... 25 27% 2 7 % 27 Vi 31*/ 3. Jim Walter Corp. common; par 16*/* cants: A U T H O R IZ E D -- 25,000,000 shares; ou tstan d ing, Aug, 31, 1980, 16,396,149 shares; reserved for conversion of preferred, 912,170 shares; re served for conversion of debentures, 727,324 shares; reserved for options, 459,675 shares; par 16% cents. P a r changed from 50 cen ts to 16% cents in N o v ., 1958 by 3-fo r-l split; 16% cents p ar s h a re s split 3 -f o r-l J a n . 1, 1969. V O T IN G R IG H T S -- H as one vote per share. P R E E M P T IV E R IG H TS-- None. D IV ID E N D R E S T R IC T IO N -- See long term debt, above. D IV ID E N D S -- Paym ents since 1954 (calen dar years); On 50 cent par shares: 1955 ............ $0.30 1956 ............$1.20 1957 $0.90 1958 ........... 1,35 O n 16Vs ce n t p a r sh a re s: 1959 ............. 0.70 1 9 0 0 - 6 2 .;... 0.80 1963 ................ 0.85 1964-68............1.00 1909 ..............0.30 On 16% cent par shares after 3-for-l split: 1969 .............. 0.30 1970 ..........0.40 1971 0.47% 1972 .............. 0.57 1973 .......... 0.64% 1974 ..........0.77 1975 .............. 0.90 1976 ..........1.10 1977 .........1.30 1978 ...............1.50 1979 ..........1.50 1980 .........1.85 [7]1981............0.95 E T o Apr. 1. T R A N S F E R A G EN T S-- Flagship Bank of T a m p a ; Citibank, N Y C ; F irst N ational Bank, C h icago . R E G IS T R A R S -- Exchange N ational Bank, T a m p a ; Citibank, N .A ., New Y o rk ; Continen tal Illinois N ational Bank T ru st Co., Chica- S lV ID E N D D ISBURSIN G A G E N T -JW C C orporate H eadquarters, T am p a, Fla. L IS T E D --On N Y S E (Sym bol: JW C ); and M idw est and Pacific Stock Exchanges, Unlist ed trading on Philadelphia and B oston Stock E xch an ges. NASDAQ Sym bol: W L T J. P R IC E RANGE-- 1980 1979 1978 1977 1976 H ig h ...................... 37 V8 35V 3Sy2 39% 44% L o w ...................... 23% 26% 26V 25% 28% Purchase Otter In N ov. 1980, Co. offered to p u rch ase its 9 % subord. bonds, due 2000 at S I00 plus accru ed interest to D ec. 12, 1980 for each $100 principal am ount of bonds. Offer ex pired D ec. 12, 1980. WANG LABORATORIES, INC. History: O rganized in M a ssa ch u se tts on Ju n e 3 0, 1955 a s su cc e s s o r to a c o m p a n y founded in 1951. Ju ly 1968 acquired Philip H ankins Inc. A r lington, M ass, for 101,720 sh ares (renam ed P H I Com puter Services, In c.). On M ar. 7, 1969, acquired M edical System s and D ata Corp. Renam ed W ang M edical S ys tem s, Inc. O n S e p t. 1, 1970, a cq u ire d D ig ital In fo rm a tion S torage Corp. In Sept. 1978 acquired G raphic System s, Inc. Buatneaa: C o, designs, m an u factu res, m a r kets and services com puters and related pe ripheral devices, which are com bined into sys tem s to perform (1 ) inform ation processing applications involving technical and scientific problem solving, com m ercial or business, d ata processing and distributed d ata processing, and (2) word processing applications. These system s consist of central processing units with variou s quantities of m em ory com bined with K eyb oard s, cathode ra y tube displays, printers, and depending on application, a s sorted additional peripheral devices. Co. m an ufactures m ost of 68 peripheral devices of fered with its system s. W ang W ang W ang W ang W ang W ang S u b s id ia rie s Laboratories (T aiw an) Ltd. Financial Corp. International T rad e, Inc. Voice Com m unications System s Puerto Rico, Inc. Am ericas, Inc. Inc. Internationa) Subsidiaries W ang C om puter P ty. L td ., A ustralia W ang Gesellschaft m .b.H ., A ustria W ang Europe, S .A ./N .V ., Belgium W an g T rad in g A.G ., Sw itzerland (in active) W ang (U .K .) Ltd. W ang Fran ce S .A .R .L., Paris, Fran ce W ang Pacific Ltd ., H ong Kong W ang N ederland B.V ., N etherlands W ang Skandinaviska AB, Sweden W ang Industrial Co., L td ., T aiw an W ang L ab oratories (N .A .) N .V . W ang L ab oratories (Irelan d ) B.V . C.S. C om puter Services L td ., U .K . (inactive) W ang Com puter Ltd ., Jap an W ang C om puter L td ., New Zealand W ang de P an am a (C P E C ) S.A ., P an am a W ang Com puters (P te ) L td ., Singapore W ang Com puters (South A frica) (P ty .) Ltd. (inactive) W ang A.G ., Sw itzerland W ang C om putadoras, Inc., P uerto Rico W ang L atin A m erica, S.A ., Venezuela (in ac tive) W ang D eutschland, Gm bH Property: C o. ow n s 6 1 2 ,0 0 0 sq. ft, of sp ace in T ew k sb u ry , M ass, and 209,000 sq. ft. in L o w ell, M ass, for m an u factu ring op eration s and custom er engineering personnel. In Ja n . 1979, Co. started m anufacturing printed circuit board s in a leased 16,000 sq. ft. facility in Ju n cos, Puerto Rico. Adm inistration, sales, m ar k etin g an d d e v e lo p m e n t c e n te r is lo c a te d in a 273,000 sq. ft. co m p lex in Low ell, M ass. C o. also ow ns, 80,000 sq. ft. facility in Burlington, M ass., 21,500 sq. ft. facility in U trech t, H o l land and 35,334 sq. ft. facility near Brussels, Belgium . C o . leases v a rio u s sales offices lo ca te d in 4 0 states, W ash. D .C., P u erto R ico, C anad a and overseas. Executive Officers An W ang, Chmn. H .H .S. Chou, E xec. V ice-Pres. ScP re s . T reas, J.F . Cunningham , E xec. V ice-Pres. Johannes Spanjaard, Senior V ice-Pres. E .D . G rayson, V ice-Pres., Sec. Gen, Counsel An W ang P.A . B rooke C .E . Goodhue. I ll J .F . Cunningham H .H .S. Chou Directors J.C . H odge M artin K irkpatrick E .F . Stockwell, Jr . L .C . W ang L-L . Beranek Auditors: E rn s t ScW h in n e y . Cenarsi Counsel: G ood w in , P r o c te r Sc H o a r . Annual Meeting: In O ct. No. of Stockholders: Ju n e 30, 1980: C lass B com ., 12,697; C lass C com ., 5,955. No. o f Employees: J u n e 30, 1980, 11,670. Executive Office: O ne In d u strial A ve., L o w ell, M A 0 1 8 5 1 . Tel.; (6 1 7 )4 5 9 -5 0 0 0 . Consolidated Income Account years ended June 30 ($ 0 0 0 o m itted ): 1980 1979 1978 Net sales & revs. . 503,132 299,041 185,404 Rental & oth. in c.. 40,140 22,524 12,730 Total ...................... 543,272 321.565 198,134 C o s t o f s a l e s .......... 242,338 137,774 85,016 Sell., etc., exp......... 207,212 128,281 79,578 I n te r e s t................. 15.909 7,925 4,948 Income t a x e s ----- 25,700 19,000 13,000 CUNet In co m ----- 52.113 28,585 15,592 Prev. ret. earn. . . . 81,734 55,149 40,698 Divs. (c a s h ).. . . . . 3.648 2,000 1,141 Retained earn. . . . . [1)130,199 81,734 55,149 E E a m ., com. sh. . $2.00 S I.17 $0.69 Y r. end com. shs. . . 25,454,188 24.179,960 11,404,752 [TjAfter $30,048,000 (1979, $17,070,000; 1978, $9,743,000) depr. fit amort. CDOn 26,591,000 (1979, 24,441,97 2: 1978, 22.585,414) avg. com. and class B com. shs. outstanding during respective years. GEj$41,356,000 not restricted. Consolidated Balance S h eet ss of June 30 ($000 om itted): Assets: 1980 [H1979 Cash . . . r ...................... 6,706 5,002 Receiv., n e t ................. 167,475 86,638 ^ In v e n to rie s ............. 208,747 108,674 P r e p a y ........................... 11,392 6,442 Total cu rr.. et prop., etc. >er assets . . . 394,320 128,817 55,316 206,756 74,703 22,765 Total ............. Liabilities: Notes* etc., p a y .. . Accts., etc., pay___ Divid. pay. . . . . . . Income taxes . . . . 578,453 40.840 108,2S4 917 3,329 . 304,224 11,256 54,232 865 3,454 Total cu rr.. . . Long term debt .. Dei. me. t a x ........... Com. stk. ($0.50) . a . B stk. ($0.50) .. Cap. exc. par val. . Retained earn. . . . Stkhld. eq uity. . . . dJReacq. stk........... Net stkhld. eq. . 153,340 214,117 19,500 2,063 10,699 50,580 130,199 193,541 2,045 191,496 69,807 111,178 5,000 2,063 10,043 25,011 81,734 118,851 612 118,239 T o t a l ............. 578,453 304,224 Net cuit. assets . . 240,980 136,949 HTTPDeeprec............. 23,461 13,468 Low er approx, cost (fifo) or mkt. Shs. at cost 1980, 2.412 cl. B & 68.478 cl C; 1979, 9,506 cl. B & 22,280 cl. C. Reclassified for comparative purposes. Long Term Debt: 1. Wang Laboratories, Inc. convertible subordinated debenture %, due 2005: Rating-- Ba Ar fU(\rT\ H .-- $ 1 0 0 ,0 0 0 .0 0 0 ; o u ts tg ,, D ec. 2, 1980. D A T E D -- D ec. 1, 1980. D U E -- D ec. 1. 2005. IN T E R E S T -- J& D 1 to holders registeied M & N 15. T R U S T E E -- Chase M anhattan Bank, N .A . D E N O M IN A T IO N -- Fully registered, $1,000 or any integral multiple thereof. T ransferable and exchangeable without service charge. C A L L A B L E -- A s a w hole o r in p a rt a t a n y tim e on at least 30 but not m ore than 60 d ays' notice to each N ov. 30 as follows: 1981 .......... 109.50 1982 . . . .108.87 1983 . . .108.23 1984 107.60 1985 106.97 1986 1987 105.70 1988 105.07 1989 1990 . . . .103.801991 ...........103.17 1992 ........... 102.5.1 1993 101.90 1994 101.27 1995 and thereafter a t 100. Also callable for sinking fund (which see) at 100. S I N K I N G F U N D -- A n n u ally. D ec. 1, 1991- 2004, sufficient to redeem $5,000,000 principal am ou n t of debs., plus sim ilar optional p a y m e n ts. Sinking fund is designed to retire 7 0 % of debs, prior to m aturity. S E C U R I T Y -- S ub ord in ate to all senior in debtedness. C O N V E R T IB L E -- Into com . at any time at $50 p er sh., subject to adjustm ent. IN D E N T U R E M OX31FICATI ON-- Inden tu re m ay be modified, except as provided, with consent of 6 6 % % of debs, outstg. R IG H T S ON D E F A U L T -- Trustee, or 25% of debs, outstg., m ay declare principal due and payable (30 d ays' grace for paym ent of in te re s t.) L IS T E D -- On Am erican Stock Exchange. P U R P O S E -- P roceed s initially to re p a y C o .'s notes under its revolving credit agreem ent, an d th e b alan ce will be te m p o ra rily in vested in s h o rt-te rm m a rk e ta b le secu rities. O F F E R E D -- ($100,000,000) at 100 plus a c crued interest (proceeds to Co., 98.875) on D ec. 2, 1980 thru M errill L yn ch W hite W eld Capital M arkets Group and associates. P R IC E R A N G E -- 1980, 102% -102% . 2. Othar Long Term Debt: O u tstan d in g Ju n e 30, 1980, $119,432,000 com prised of: (1 ) $20,000,000 9 % term loans p ayab le in six te e n q u a rte rly in stallm en ts co m m en cin g in 1980. (2 ) $ 2 0 ,0 0 0 ,0 0 0 9 l/ 4% term loan s p ay ab le in tw enty equal quarterly installm ents com m en cin g in 1981. (3 ) $ 2 0 ,0 0 0 ,0 0 0 1 0 % % te rm loan s p ay ab le in thirteen equal quarterly installm ents com m en cin g in 1982. (4 ) $ 2 0 ,0 0 0 l0 0 0 1 0 % % term lo an s p a y a b le q uarterly beginning 1982. (5 ) $5,000,000 9 % % subordinated note p a y able to M assachusetts Capital R esource Co. 1983-1988. ( 6 ) $ 3 3 ,0 8 4 .0 0 0 4 % - 9 7/ s% m o rtg a g e n o tes payable 1979-2012. (7) $1,348,000 other. Under term s of revolving credit agreem ent C o. m a y issue up to $100,000,000 of its rev o lv ing credit notes at prim e interest rate. Such n o te s will m a tu r e F e b . 28, 1982 a t w hich tim e o u tsta n d in g a m o u n ts will be p a y a b le in equal quarterly installm ents over a four year period. C o .'s a e b t a g re e m e n ts h a v e re strictiv e co v e nants which include, am ong other things, limi tation s on total liabilities as a percentage of stockholders' equity, requirem ents to m am tain specified levels of working capital, lim ita tions on aggregate bank indebtedness, and re strictions on p aym en t of cash dividends. U n restricted consolidated retained earnings am ounted to $41,356,000 a t Ju n e 30, 1980. . . . . . 106.33 104.43 . . . .100.63