http://legacy.library.ucsf.edu/tid/deg12a00/pdf

More documents

Recommendations

Info

. ~-. ~ _:~ _ t Consollidated~ Statements of Changesin Fiinancial Position t'tini0 Mortis loaoryorated and Consctldned SubsiAiarin Jorthayems. ended Dcoember 31 . 1972 and 1971 1972 1971 Additions to Working Capital: Operations: Net earnings . _ . . . .. . . . .. . . . .. . . .. . . . .. . . .. . . . . . . . . . .. . . S I24,466 ;000 $101,498,000 : Add (deduct) items not requiring current use of working capital : Depreciation . .. . . .. . . . .. . . . . .. . . . . .. . . . .. . . . . .. . . . . .. . . . . . .. . . .. . . . . .. . . . . .. . . . .. . . . . .. . . . . .. . . . .. . . . . .. . . . .. . . . . . .. . . . ... 26,576a000 21,500,000 Amortization . .. . . . . .. . . . .. .. . . . .. . . . .. . . .. . . . . .. 1,563,000 1,421,000 Deferred income taxes . . . . . .. . . . .. . . . .. . . . . .. . . . . . .. . . . . .. . . .. . .. 4,890,000 9,559,000 Provision for reserve applicable to international operations . . . . . . . . . . .. . . . . .. 1,723,000 Equity in net earnings of unconsolidated subsidiaries and alfiliates . .. . . . . .. . . . . .. (11,478,000)', (9,928,000 ) Dividends received from unconsolidated subsidiaries _ . . . .. . . . . .. . . . . .. .__ . . . . . .. . . . . . .. . . . . -. 4.692,000 2,875,000 From operations__ .. . . . . .. . . .. . . .. . . . .. .. . . . .. 150,709;000 128,648,000 Financing' : Long-term debt : Issued . . . . . .. . . . . .. . . . .. . . . . .. . . .. .. . . . . . .._ . .. . . . __ . . . . . . . . .. .. . . .. . . . . . . .. _ 184,108,000 47,868,000 Prepaymentsandretirements . . . . .. . . .. (38,892,000) (9,766,000) From long-term debt . ._ . . . . .. . . . .. . . . . ._ . .. .. 145,216a000 38,102,000 Stockholders' equity : Shares issued under stock options 4,434,000 3,720,000 Sharesofpreferredstockpurchasedforueasury .. . . . . . .. . . . ._ . . .. (4,188,000) (2;021,000) From equity transactions . . .. . .. 2464000 1,699 .000 From financing . . . .. . . . . .. . . . .. 145.462,000 39,801,000 Other : Disposal of~property ; plant and equipmeno Net unrealized exchange gainsadded to reserv e . . . .. . . .. 1,433,000 8,442,000 applicable to international operations . .. . . .. . . . . .. . . . . .. . . . .. . . . . .. . . . .. . . . . .. . . .. . . . . . .. . . . . .. . . . . .. . . .. 3,755,000 2,928,000 Additions to working capital . . . . . . .. . . . . .. . . ... .. . . .. . . . .. . . ._ . . . . . . . . . .. . . . .. . . . . _ . . . . . . . .. 301,359;000 179,819,000 Uses of Working Capital: Dividends . . . . .. . . . . .. . . . .. . . . .. . . . . .. . . . . .. . . . .. . . . . .. . . . . . .. . . . .. . . . .. . . . . . . . . . . .. . . . . ._ .. . . . . . . . . . .._ . .. . . . ._ . . . .. . . . . . .. . .. 34,572,000 31,832,000 Expansion and modernization of'property ; planrand equipment . .. . . . .. . . . . . . . . .. . .. 120,034,000 68,001,000 Investments in and advances to unconsolidatedsubsidiaries and affiliates . . . . . .. . . . . . .. . .. 5,276,000 4,013,000 Investments in consolidated subsidiaries, net of working capital acquiredf' : Mission Viejo Company . . . . .. . . . .. . . . . .. . . .. . . . . . .. . . . . .. . . . . .. . . . . . .. . . . .. . . . .. . . . . .. . . . . .. . . . . .. . . . .. . . . . .. . . . . . .. . .. 22,524,000 Other subsidiaries . . . .. . . . . .. . . . . . .. . . . . .. . . .. . . . . . .. . . . . .. . . . . . .. . . . .. . . . . .. . . . .. . . . . . .. . . . .. . . . .. . . . . .. . . . . .. . . . .. .. . . .. . .. 6,873,000 2,255,000 29,397;000 2,255,000 Other, net . . . . .. . . . . .. . . . .. . . . .. . . . . . .. . . . . .. . . . . .. . . .. . . . . . .. . . . . .. . . . . . .. . . .. . . . . . .. . . . .. . . . . .. . . .. .. . . . .. . . . . . . . . . .__ .. . . . . .. . .. 4,880,000 3,809,00 0 Working capital used _ . .. . . . . .. . . . . .. . . . . .. . . . .. . . . _ .. . . . .. . . . . .. . . . . _ . . . .. . . . . .. . . . .. . . . . .. . . . . . .. . .. 194,159,000 109,910,000 Inerease in working capital _ . . . . .. . . .. . . . . .. . . . . . .. . . . . .. . . . .. . . . .. . . . . .. . . . . .. . . . .. . . . . .. . . . . . .. . .. $107,200,000 $ 69,909,00 0 Changes in components of working ca pitai': Cash and cash equivalents .. . . . .. . . . . .. . . ... . . . . .. . . . . .. . . . . .. . . . . . .. . . . .. . . . . .. . . . .. . . . . . .. . . . .. . . . .. . . . . .. . . . . . .. . . . Receivables . . .. . . . .. . . ... . . . . .. . . . . .. . . . .. . . . . .. . . . . . .. . . . . .. . . . .. . . . . .. . . . . .. . . . . .. . . . .. . . . .. . . . . . .. . . . .. . . . .. . . . . . .. . . . . .. . . . Inventories . . . . .. . . . .. . . . .. . . . ... . . . . .. . . . .. . . . . .. . . . . . .. . . . . .. . . . .. . . . .. . . . . . .. . . . .. . . . . .. . . . .. . . . . . .. . . . . .. . . .. .. . . .. . . . . . .. . . . Notes payable . . . . .. . . . . . .. . . . . .. . . . . .. . . . .. . . . . . .. . . . . .. . . . . .. . . . .. . . . . .. . . . .. . . . . .. . . . . .. . . . . . . . . . .. . . . .. . . . . .. .. . . .. . . . Accounts payable and accrued liabilities . . . . .. . . . . .. . . . . .. . . . . .. . . . .. . . . .. .. . . . .. . . . .. . . . . . .. . . . .. . . . . .. . . . Other; net . .. . . . ... . . . .. . . .. . . . . . .. . . . . .. . . . . . .. . . .. . . . . . .. . . . . .. . . . . .. . . . ... . . . .. . . . .. . . . . .. . . . .. . . . .. . . . .. . . . . . .. . . . .. . . . . .. . . Other significant financing transactions, not affecting working capital, S 6,128,000 ($ 3,699,000) 26,487,000 929,00 0 130,901,000 101,816,00 0 3,500,000 (14,200,000) (45,785a000) (19,960,000) (14,03 i,000) 5,023,00 0 $107,200,000 $ 69,909,000 were conversions of $26,351„000 and $56,066,000'of debentures into common stock in 1972 and 1971, respectively : Represented by : Net noncurrent assets of companies acquired, prineipally land and offtrac t improvements . .. . . . . .. . . . . . .. . . . . .. . . . .. . . . . .. . . . . . .. . . . .. . . . . ... . . : .. . . . ... . . . .. . . . . .. . . . .. . . . . .. . . . . .. . . . .. .. . . .. . . . . .. Cost in excess of net assets acquired . . . . .. . . . . .. . . . . .. . . . . .. . . . ... . . . .. . . ... . . . ... . . . . .. . . . . .. . . ... . . . . ... . . . .. Less, Amount invested in Mission Viejo Company in~1970 . . . .. . . . . .. . . . . .. . . . .. . . . . .... . . .. See notes totinancial sutements . http://legacy.library.ucsf.edu/tid/deg12a00/pdf $ 21,004,00 0 28 ;479,00 0 .49,483,000 $ 362,000 , 1,893,000 2,255 ;000 20,086,000 S 29,397,000 $ 2,255,000
I -^, ~~_-- ~-.,-il http://legacy.library.ucsf.edu/tid/deg12a00/pdf Notes to Consolidated Financial Statements Summary of Accounling Policies: The sienificant accounting policies followed by Philip Morris and its subsidiaries are presented below to assist the reader in reviewing the consolidated financial statements and other data contained in this report. These policies comply with generally accepted accounting principles and have been consistently applied . Consolidation : The consolidated financial~statements include the accounts of the Company and all wholly owned subsidiaries . Investments in andadvances to unconsolidated subsidiaries and affiliates arc stated at cost adjusted for equity in undistributed earnings or losses since the dates of acquisition. Foreign operations : Appropriate amounts provided out of earnings are added to the reserve applicable to international operations for possible losses which might arise from diminution invalue of the Company's investments inforeien subsidiaries as the result of events such as governmental actions or currency devaluations . The accounts of foreign subsidiaries are translated into U:S: dollars at year,end rates or average rates during the year except for noncurrent assctsand liabilities which are translated at rates in effect in the years the balances arose . Net unrealized translation gains are added to this reserve and nerunreaiized transltition losses would be charged to income should such losses exceed'prevtous unrealized gains and provisions . Receivables: Current eamines are charged with an allowance for doubtful accounts basedon experience and any unusual circumstances which may affect the ability of customers to meet their obligations . Receivables are reportedin the balance sheet net of such accumulated allowances. Accounts deemed uncollectibVe are charged againsrahis allowance. Inventories: Inventories are valued aothe lower of cost ormarket. The cost ofleaf tobacco is determined on an average cost basis an d the costofiother inventories is determined generally on a first-in, first-out basis . It is a generally recognized industry practice to classify the total amount of leaf tobacco inventory as a current asset although part of such imentory, because of the duration of the aging process, ordinarily would notbe utilized within one year . The cost of housing pro¢rams under construction represents the cost of land, including offtract improvements, interesnand propcrtytaxes„plus housing construction costs on sites currently under developmenu Land and o ff tracrimprovements : The cost of land, including offtract improvements, interest and property taxes, is reported as a noncurrent asset until a designated area is placed into development. Offtract improvements are items such as access roads, utilities,ete ., which are essential to the development of a community, but which are not directly attributable to the development of a particular tractor area . The cost of these improvements is allocated to the entire acreage available for sale . Brands„trademarks, patents and goodwill : In conformity with an opinion of the Accounting Principles Board, the cost in excess of net assets of companies acquired'afte r November 1, 1970 is being amortized over a period of no more than forty years. Such excess cost in eonnection with investments made prior to November 1, 1970 is not being amortized because, in the opinion of management, the relatedi investments have notexperienced any diminution in value . Patents and patent rights are being amortized on the straight-line methodbased on their respective lives. Income taxes: The provisions for federal and foreign income taxes are cattulated on reported pre-tax earnings . Certain items of income and expense included in the financiallstatements, such as depreciation, are reported in different years in the tax return s in accordance with applicable income tax laws. The resulting difference between the financial statement income tax provisio n and income taxes currently payable is reported in the financial statements as deferred income taxes . Investment tax credit s on assets placedin service during the year are accounted foras a reduction in the provision for income taxes . Provision is als o made for federal income taxes on the portion of undistributed earnings of foreign subsidiaries that is expected to be remitted to the United States. Maintenance, repairs and depreciation : Maintenance and repairs are charged to income and expenditures for renewals and improvements are capitalized . Provision for depreciation of asseu is recorded by a charge against income at ratesconsidered adequate to amortize the cost of such assets over their useful lives using the straight-line method of computation . Pension plan.c: The Company and certain of its consolidated subsidiaries have pension plans covering substantially allof their employees . O Prior service costs, which are being amortized over periods ofiup to thirty years, and accrued pension costs are funded with independent trustees . Q Research and development: Research and development costs are charged against earnings in the year incurred . .- ~:,_
Page 1 and 2: "it ...... ....---~ http://legacy.l
Page 3 and 4: Philip Morris Incorporated Annual R
Page 5 and 6: Miller Brewing Miller Brewing devot
Page 7 and 8: http://legacy.library.ucsf.edu/tid/
Page 9 and 10: [ i~w.".~~ . ,~~a... j; ,-i . ,:- u
Page 11 and 12: do 1'annge: Lp Wmitn Imposfea aua m
Page 13 and 14: 4- I I ho .4 It Ssnado de EU.A ., b
Page 15 and 16: Rassegna dell'Anno L Vostra SocieH
Page 17 and 18: gdotte mgen, die betrekkins hebben
Page 19 and 20: 4' Philip Morris U .S.A. (000 omwed
Page 21 and 22: This new cigarette manufacturing co
Page 23 and 24: Philip Morris U.S .A . Operating Re
Page 25 and 26: -r _ .t L - Philip Morris Internati
Page 27 and 28: monetary problems, however~ have ad
Page 31 and 32: ,r,r~e,......,.__ Mi Iler Brewing C
Page 33 and 34: Miller also expanded its product li
Page 35 and 36: : , . Milprint produces flexible pa
Page 37 and 38: By December, the population of Miss
Page 39 and 40: 1Fred~M . Stefa n Vice President an
Page 41 and 42: Philip Morris Industrial 4200 North
Page 43 and 44: Operating Revenues ■ Pre-Tax Marg
Page 45 and 46: Liabilities: Notes payable . . .. .
Page 47: Consolidated Statements of Stockhol
Page 51 and 52: Brands, Trademarks, Patents and Goo
Page 55 and 56: 1968 1967 1966 1965 1964 : 1963 196

http://legacy.library.ucsf.edu/tid/deg12a00/pdf

Create successful ePaper yourself

Delete template?

Save as template?