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Global Stock Purchase Plan (‘‘GSPP’’): On September 8, 1999, the stockholders authorized a
GSPP, which qualifies under Internal Revenue Code Section 423, and provides for the purchase
by employees of up to 3,000,000 shares of the company’s stock through payroll deductions.
Employees who choose to participate in the plan will receive an option to acquire common
stock at a discount. The purchase price per share will be the lower of 85% of the fair market
value of the company’s stock on the first or last day of a purchase period. During Fiscal 2000,
employees purchased 173,326 shares under this plan.
Cumulative Translation Adjustments: Changes in the cumulative translation component of
shareholders’ equity result principally from translation of financial statements of foreign
subsidiaries into U.S. dollars. The reduction in shareholders’ equity related to the translation
component increased $147.7 million in 2000, $88.0 million in 1999 and $180.3 million in 1998.
During Fiscal 2000, a loss of $7.2 million was transferred from the cumulative translation
component of shareholders’ equity and included in the determination of net income.
Unfunded Pension Obligation: An adjustment for unfunded foreign pension obligations
in excess of unamortized prior service costs was recorded, net of tax, as a reduction in
shareholders’ equity.
8. SUPPLEMENTAL CASH
FLOWS INFORMATION
(Dollars in thousands) 2000 1999 1998
Cash Paid During the Year For:
Interest $273,506 $266,395 $300,173
Income taxes 485,267 287,544 188,567
Details of Acquisitions:
Fair value of assets $563,376 $350,575 $200,406
Liabilities* 166,699 80,055 47,912
Cash paid 396,677 270,520 152,494
Less cash acquired 2,259 1,569 10,382
Net cash paid for acquisitions $394,418 $268,951 $142,112
* Includes obligations to sellers of $10.4 million and $48.4 million in 2000 and 1999, respectively.
9. EMPLOYEES’ STOCK
OPTION PLANS
AND MANAGEMENT
INCENTIVE PLANS
Under the company’s stock option plans, officers and other key employees may be granted
options to purchase shares of the company’s common stock. Generally, the option price on
outstanding options is equal to the fair market value of the stock at the date of grant. Options
are generally exercisable beginning from one to three years after date of grant and have a
maximum term of 10 years. Beginning in Fiscal 1998, in order to place greater emphasis on
creation of shareholder value, performance-accelerated stock options were granted to certain
key executives. These options vest eight years after the grant date, subject to acceleration if
predetermined share price goals are achieved.
The company has adopted the disclosure-only provisions of SFAS No. 123, ‘‘Accounting for
Stock-Based Compensation.’’ Accordingly, no compensation cost has been recognized for the
company’s stock option plans. If the company had elected to recognize compensation cost
(61)