DELAWARE36-0700810 & nbsp;
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2200 Kensington Court, Oak Brook, IL 60523
(Address of principal executive offices) (Zip code)
The condensed consolidated interim period financial statements
2) Patronage Dividends
3) ReclassificationsThe Company operates as a cooperative organization and will pay
patronage dividends to
consenting member dealers based on the earnings
derived from business done with such
dealers. It has been the practice
of the Company to distribute substantially all
patronage sourced
earnings in the form of patronage dividends.
Net earnings and patronage dividends will normally be similar since
patronage sourced
net earningsareis paid to consenting member dealers.
Internationaloperations and
dealers signed under a Retail Merchant Agreement are not
eligible for patronage
dividends and related earnings or losses are not
included in patronage sourced
earnings.
Certain financial statement reclassifications have been made to prior year and prior
quarter amounts to conform to comparable classifications followed in2001.2002. During 2002, the Company reclassified as sales and
cost of sales certain shipping and handling costs that had previously been presented on a net basis within warehouse and distribution expenses.
The Company is principally engaged as a wholesaler of hardware and
related products and manufactures paint products. The Company
identifies segments based on management responsibility and the nature of the business activities of each component of the
Company. The Company measures segment earnings as operating earnings including an
allocation for administrative expenses, interest expense and income taxes. The net sales from external customers included in the other category are primarily generated from company-owned retail locations. Information
regarding the identified segments and the related reconciliation to consolidated
information is as follows:
Thirteen Weeks Ended September 29, 2001 March 30, 2002
EliminationEliminated
Paint Intersegment
WholesaleManufacturingOtherActivitiesConsolidated
Net Sales from External Customers 2,105,557 13,921 40,348$ 690,920 $ 5,613 $10,634 $ - 2,159,826$ 707,167
Intersegment Sales 19,850 89,6284,225 30,760 - (109,478)(34,985) -
Segment Earnings (Loss) 41,707 10,420 (1,822) (240) 50,0658,012 3,957 (3,709) - 8,260 Thirty-Nine Thirteen Weeks Ended September March 30, 2000 2002
EliminationEliminated
Paint Intersegment
WholesaleManufacturingOtherActivitiesConsolidated
Net Sales from External Customers 2,177,560 16,687 32,811$ 657,261 $ 4,152 $11,411 $ - 2,227,058$ 672,826
Intersegment Sales 19,211 83,0514,221 23,919 - (102,262)(28,140) -
Segment Earnings (Loss) 56,035 8,463 (2,048) (175) 62,275 Thirteen Weeks Ended September 29, 2001 Elimination Paint IntersegmentWholesaleManufacturingOtherActivitiesConsolidatedNet Sales from External Customers 690,179 3,339 14,4203,999 2,362 (1,325) - 707,9985,036Intersegment Sales 7,509 32,788 - (40,297) -Segment Earnings (Loss) 19,311 3,581 82 (120) 22,854 Thirteen Weeks Ended September 30, 2000 Elimination Paint IntersegmentWholesaleManufacturingOtherActivitiesConsolidatedNet Sales from External Customers 702,241 4,979 11,713 - 718,933Intersegment Sales 7,245 26,397 - (33,642) -Segment Earnings (Loss) 20,181 2,815 (551) (60) 22,385
On November 5, 2001, the Company announced that its Calgary, Canada distribution centerwill be closed within the next six months. Closure costs which are non-patronage and estimated to be in the range of $1.6 to $2.5 million, will be recorded in the fourth quarter of 2001.
Liquidity and Capital ResourcesThe CompanyAce expects that existing and internally generated funds, along
with new and
established lines of credit and long-term financing, will
continue to be sufficient in the
foreseeable future to finance the
Company's working capital requirements and patronage
dividend and
capital expenditures programs.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes in the Company's market risk during
thethirty-ninethirteen week period endedSeptember 29, 2001.March 30, 2002. For additional
information,
refer to Item 7a in the Company's Annual Report on Form
10-K for the year
ended December30, 2000.29, 2001.
Item 1. Legal Proceedings
None.
Item 2. Changes in Securities and Use of Proceeds
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
None.