Exhibit 99.1
Years ended December 31 | ||||||||||||||||
2002 | 2001 | 2000 | 1999 | 1998 | ||||||||||||
(Dollars in thousands) | ||||||||||||||||
Average shareholders’ equity(a)(b) | ||||||||||||||||
A | Average shareholders’ equity, as presented | $ | 1,262,605 | 1,242,543 | 1,225,910 | 1,181,750 | 1,094,859 | |||||||||
Impact of cumulative effect of change in accounting principle | (16,537 | ) | — | — | — | — | ||||||||||
B | Average shareholders’ equity | $ | 1,246,068 | 1,242,543 | 1,225,910 | 1,181,750 | 1,094,859 | |||||||||
Return on average shareholders’ equity(c)(d) | ||||||||||||||||
C | Earnings before cumulative effect of change in accounting principle and gain on disposal of discontinued operations | $ | 112,565 | 18,678 | 89,032 | 80,355 | 159,071 | |||||||||
Cumulative effect of change in accounting principle and gain on disposal of discontinued operations | (18,899 | ) | — | — | 339,323 | — | ||||||||||
D | Net earnings | $ | 93,666 | 18,678 | 89,032 | 419,678 | 159,071 | |||||||||
= C/A | Return on average shareholders’ equity, as presented (%) | 8.9 | 1.5 | 7.3 | 6.8 | 14.5 | ||||||||||
= D/B | Return on average shareholders’ equity (%) | 7.5 | 1.5 | 7.3 | 35.5 | 14.5 | ||||||||||
Return on average assets(a)(c)(d) | ||||||||||||||||
E | Average assets’ excluding net assets of discontinued operations | $ | 4,845,689 | 5,156,489 | 5,691,121 | 5,795,531 | 5,327,064 | |||||||||
Net assets of discontinued operations | — | — | — | 236,598 | 364,183 | |||||||||||
F | Average assets | $ | 4,845,689 | 5,156,489 | 5,691,121 | 6,032,129 | 5,691,247 | |||||||||
G | Earnings from continuing operations | $ | 112,565 | 18,678 | 89,032 | 68,524 | 127,812 | |||||||||
Cumulative effect of change in accounting principle, earnings from discontinued operations and gain on disposal of discontinued operations | (18,899 | ) | — | — | 351,154 | 31,259 | ||||||||||
H | Net earnings | $ | 93,666 | 18,678 | 89,032 | 419,678 | 159,071 | |||||||||
= G/E | Return on average assets, as presented (%) | 2.3 | 0.4 | 1.6 | 1.2 | 2.4 | ||||||||||
= H/F | Return on average assets (%) | 1.9 | 0.4 | 1.6 | 7.0 | 2.8 | ||||||||||
Average asset turnover | ||||||||||||||||
I | Revenue | $ | 4,776,265 | 5,006,123 | 5,336,792 | 4,952,204 | 4,606,976 | |||||||||
= I/E | Average asset turnover, as presented | 98.6 | 97.1 | 93.8 | 85.4 | 86.5 | ||||||||||
= I/F | Average asset turnover | 98.6 | 97.1 | 93.8 | 82.1 | 80.9 | ||||||||||
Cash flow from continuing operating activities and asset sales | ||||||||||||||||
Cash flow from continuing operating activities and asset sales, as presented | $ | 785,472 | 483,836 | 1,245,441 | 671,721 | 1,212,172 | ||||||||||
Less cash flow from asset sales | 152,685 | 175,134 | 229,908 | 401,902 | 321,962 | |||||||||||
Net cash provided by operating activities | $ | 632,787 | 308,702 | 1,015,533 | 269,819 | 890,210 | ||||||||||
(a) | Average shareholders’ equity and average assets are calculated quarterly. | |
(b) | Shareholders’ equity as of December 31, 2002 reflects an after-tax equity charge of $228 million recorded in 2002 related to the accrual of additional minimum pension liability. | |
(c) | Earnings from continuing operations include unusual items representing Year 2000 expense, restructuring and other charges and loss on early extinguishment of debt. Year 2000 expense totaled $24 million ($15 million after-tax, or $0.22 per diluted common share) in 1999 and $37 million ($23 million after-tax, or $0.32 per diluted common share) in 1998. Restructuring and other charges (recoveries) totaled $4 million ($2 million after-tax, or $0.04 per diluted common share) in 2002, $117 million ($81 million after-tax, or $1.34 per diluted common share) in 2001, $42 million ($26 million after-tax, or $0.44 per diluted common share) in 2000, $52 million ($33 million after-tax, or $0.48 per diluted common share) in 1999 and $(3) million ($(2) million after-tax, or $(0.03) per diluted common share) in 1998. Loss on early extinguishment of debt totaled $7 million ($4 million after-tax, or $0.06 per diluted common share) in 1999. Earnings from continuing operations include goodwill and intangible amortization totaling $13 million ($12 million after-tax, or $0.19 per diluted common share) in 2001, $12 million ($10 million after-tax, or $0.17 per diluted common share) in 2000, $14 million ($11 million after-tax, or $0.17 per diluted common share) in 1999 and $12 million ($10 million after-tax, or $0.13 per diluted common share) in 1998. In 2001, earnings from continuing operations include a one-time reduction in deferred taxes of $7 million, or $0.11 per diluted common share, as a result of a change in Canadian tax law that affected the Company’s Canadian operations. | |
(d) | Net earnings for 2002 include the cumulative effect of change in accounting principle for goodwill resulting in an after-tax charge of $19 million, or $0.30 per diluted common share. In September 1999, the Company sold its public transportation services business for an after-tax gain of $339 million, or $4.94 per diluted common share. The disposal of this business has been accounted for as discontinued operations. Net earnings for 1999 and 1998 include the results of discontinued operations. |