Document jmg8YVR5r56Vga1rvzzNgR0z2

MAFCO CONSOLIDATED GROUP INC (Form: 10-K, Received: 03/28/1997 00 00 0 ..Page 67 of 116 Company has an optional nght to call the VSRs each April 1, July 1, October 1 and January 1 from and mcludmg April 1,1997 to and including October 1, 1998 (each, an "Optional Call Date") If the Company calls the VSRs on or before January 1, 1998, holders will be entitled to receive a payment of at least $0.50 and up to $3 25 per VSR if the 30-Day Average Market Price is below $10.25 per share, subject to adjustment, as of such Optional Call Date If the Company calls the VSRs after January 1, 1998, each VSR will entitle its holder to a payment, if any, of up to $3 25 per VSR if the 30-Day Average Market Price is below $11 00 per share, subject to adjustment, on such Optional Call Date The Company's VSR obhgation (which excludes the 8,439,400 VSR's received by the Company as a distribution from PCT) was accounted for at the fair value on the date of issuance and was subsequently marked to the closing market price of the security on December 31, 1996. The VSR obhgation will be marked to the closing market price of the security at each financial statement date. As a result, income in future periods may be affected by any positive or negative mark to market adjustment. The Company recorded a gam of $151.7 million m connection with the Flavors Disposition, which is net of a deferral of $61.2 million corresponding to the Company's continuing approximate 29% equity interest in PCT following the Flavors Disposition. The deferral of $61 2 million was recorded as a reduction of the Company's investment m PCT preferred and common stock. 4 INVENTORIES Inventories consisted of the following (in thousands) DECEMBER 31. Raw materials Work-in progress Finished goods 1996 $34,469 1,974 9,514 $45,957 1995 $59,742 1,988 22,764 $84,494 F-13 MAFCO CONSOLIDATED GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 5 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of (in thousands) DECEMBER 31. http.//www.edgarpro com/EFX_dll/EDGARpro dll9FetchFilingHTMLl?ID=969943&Ses . 10/19/2003