COVERING NEW YORK
`& AMERICAN
`STOCK EXCHANGES
`
`1997
`VOL. 1
`A-1
`MOODV'S®
`INDUSTRIAL
`MANUAL
`
`DANNY A. ZOTTOLI, JR., Publisher
`HOWARD G. KIEDAISCH, Managing Director
`CAROL SURDOV AL, Director-Global Fundamental Data
`
`JOHN IERACI, Director-Print Products
`
`Editorial Staff
`
`WAYNE ARNOLD
`MARYROSE CAROSIA
`BRIAN COX
`SAMANTHA HASTINGS
`JUNE HOANG
`
`JUDY PHAM
`FELICIA ROBINSON
`CHARLOT VOLNY
`JOANNE WALLACE
`THOMAS M. WECERA
`
`Moody's Investors. serv1ce
`DB a company of
`
`The Dun & Bradstreet Corporation
`
`SEE FOLLOWING PAGE FOR COMPLETE LIST OF OFFICES
`
`Copyright © 1997 by
`MOODY'S INVESTORS SERVICE, INC. New York
`All rights reserved.
`
`Apple Inc., et al.
`Exhibit 1025
`Apple Inc., et al. v. Global Touch Solutions, Inc.
`IPR2015-01173
`
`Exhibit 1025, Page 001
`
`

`
`MOODY'S INDUSTRIAL MANUAL
`
`3215
`
`Arthur W. Schmutz
`delaying, deterring or preventing a change in control of Thomas P. Mullaney
`Kevin S. Moore
`Joseph C. Bereoato
`the Company.
`Auditors: Price Waterhouse LL.P.
`-.
`Annual Meeting: In May. Tel.: -
`No. of Stockholders: Dec. 31, 1996, 749(approx.).
`No. of Employees: Dec. 31, 1996, 1170.
`Address: 2330} South Wilmington Avenue, Carson
`CA 90745 Tel.: (310)513-7200. Fax.: (310)518-0176.
`
`CONSOUDA TED INCOME ACCOUNT. YEARS
`ENDED Dec. 31($000):
`
`DUCOMMUN INC.
`History: Incorporated in Del. Apr. 10, 1970 as suc(cid:173)
`cessor to company originally incorporated in California
`Sept. 30, 1907 as Ducommun Hardware Co. Present
`name adopted in 1962. Business est.a.blished in 1849.
`For acquisition~ prio< to l96B, see Moody's 1969
`Industrial Manual.
`In Dec. 1968, acquired Arnold Rebar Bender Inc.
`(name changed to Digital Machines, Inti. in 1969) (sold
`assets in 1984).
`·
`In Oct. 19?&, sold assets of SuperTemp Co.
`In June 1979, acquired Air Distributors. Inc.
`In Mar. !981, acquired Airdrome Parts, lnc. for cash
`and notes tot.a.ling $9,504,000.
`In July. 1981 acquired Aerochem, Inc. into Co. in a
`transaction involving the issuance of 389,500 shs. of Co.
`com. stl<.
`In Oct. 198 L sold Ducommun Metals Co., a distribu(cid:173)
`tor of metals.
`On Dec. 9, !983, acquired Aircraft Hydro-Forming
`Inc. for $20.000,000.
`On Jan. 10, 1984, acquired Jay-EI Products Inc.
`In Oct. 1984 acquired MTI Systems Corp. for
`$?,869.000.
`In Jan. 1986, Co. acquire(! Tri-Tee Engineering Corp.
`for $2,733,000 in cash.
`In Jan. 1987, Co. sold Airdrome Parts Co. for
`$12,300.000 in cash.
`In Feb. !987. Co. sold Meterrnaster for $9.760,000 in
`cash.
`In Dec. 1987, Co. sold its electronics distribution
`business to Arrow Electronics, Inc. This b~siness seg(cid:173)
`ment consisted of Kieru1ffE1ectronics, Ducommun Data
`Systems and MTI Systems Corp. As consideration for
`the sale, the Company received from Arrow ElecU"onics
`$32,692,200 in the form of 4,600,000 shares of Arrow
`Electronic's corn. stock, $10,000,000 of the Company's
`outstg. conv. subord. deb. 7 3/4s and $74,297,800 in
`cash for a tot.a.l of $1!6,990,000.
`In
`July 1989, sold Tri-Tec Engineering
`$2,211,000 in cash.
`In Dec. 1994, Co. acquired the capital stock of Brice
`Manufacturing Co., Inc. for $763,000 in cash and
`$10,365,000 in notes and other contractual liabilities.
`In Jan. 1995, Co. acquired substantially all of the
`assets and assumed cenain liabiJities of Dynatech
`Microwave Technology Inc. (DMn.
`In Jan. 1995, Co. acquired the capital stock of 3dbm,
`Inc. for $4,780,000 in cash and $1.000.000 in notes.
`On July l, 1996, Co. acquired, for a combination of
`cash and notes, substantially all of the assets and
`assumed certain liabilities of MechTronics of Arizona
`Inc. for $8,000,000 in cash ond a $750,000 note.
`Business: Co.~ through its sub.sidjaries. manufactured
`components and assemblies principally for domestic and
`foreign conunerciaJ and military aircraft and space pro(cid:173)
`gram"". Domestic commercial aircraft progra.ms include
`the Boeing 737, 747, 757, 767 and ?77 and the McDon(cid:173)
`nell Douglas MD-11, MD-80/90 and MD-95. Foreign
`commercial aircraft programs include the Airbus lndus(cid:173)
`trie A330 and A340, de Havilland Dash 8, artd the
`Canadair Regional Jet. Major milit.a.ry aircraft programs
`include the McDonnell Douglas C-17, F-15 and F-18,
`Lockheed Martin F-16 and C-130, various Sikorsky,
`Bell and Boeing helicopter programs, and advanced
`development programs. Co. is a subcontractor to Lock(cid:173)
`heed Mattin on the Space Shuttle exl:ernal tank and a
`supplier of components for the Space Shuttle Orbitor, as
`weH as for Space Station f'.reedam. Co. manufactur-es
`components for Atlas/Centaur, Delt.a. and Titan expenda(cid:173)
`ble launch vehicles and various telecommunications
`satellites. Through its 3dbrn, Inc. ("3dbm") subsidiary,
`Co. also seJls products for the wireless teleconununica(cid:173)
`tions industry.
`Property! Co. occupies approximately 14 facilities
`with a total area of over 812,000 square feet, iocluding
`both owned and leased properties. At Dec. 31, 1996,
`facilities which were in excess of 60,000 square feet
`each were occupied as follows:
`Location . . . . . . . . . . . . . . .
`Square Feet
`El Mirage, Co:lifomia . . . . . .
`74,300
`Orange. California . . . . . . . .
`76.200
`Carson, California . . . . . . . .
`6S,OOO
`Carson, California . . . . . . . .
`108,000
`Carson, California . . . . . . . .
`117,000
`Phoenix, Arit.ona . , . . . . . . .
`90;90Ct
`
`for
`
`Status
`Owne.i
`Owned
`Leased
`Owned
`Leased
`Leased
`
`Subsidiaries
`
`Aerochem, Inc.
`AHF-Ducommun Incorporated
`Brice Manufacturing Company. Inc.
`Jay-El Products, Inc.
`MechTronics of Arizona Corp.
`3dbm, Inc.
`
`om.:ers
`Normon A. Barkeley, Chmn.
`Joseph C. Berenato, Pres., C.E.O.
`James S. Heiser, V.P., Gen. Couns., Sec .. Treas., C.F.O.
`Kenneth R. Pearson, V.P., Human Res.
`Samuel D. Williams, V.P., Contr .• Asst. Treas.
`
`Raben C. Ducomtmm
`Norman A. Barkeley
`
`Directors
`Richard J. Pearson
`H.. Frederick Christie
`
`Net sales ..... .
`C<>St of goods
`sold ....... .
`Selling. gen &
`adm.in e~ps ...
`Total opcr costs
`&e>.ps ..... .
`Operating inc
`(loss) ...... .
`!merest ....... .
`Income (loss) bef
`inc tax
`Income taJ; exp
`(benefit) .... .
`Net me {loss) .. .
`Common shares (000):
`Weighted avg
`shares
`outslallding-
`w:l::fa~g··· ·
`
`1996
`118,357
`
`79,732
`
`23,147
`
`102.&79
`
`15,478
`1,153
`
`14,325
`
`4,040
`!0.285
`
`1995
`91,217
`
`61.134
`
`19.572
`
`80,10&
`
`10,51 l
`3,570
`
`6.941
`
`1,895
`5,046
`
`6,594
`
`4,500
`
`1994
`61,738
`
`43,953
`
`12,141
`
`56,094
`
`5,644
`2,467
`
`3,171
`
`973
`2,204
`
`4,463
`
`4,575
`
`4,464
`
`$.48
`
`$.48
`
`7,358
`
`4,852
`
`$1.04
`
`$.87
`
`OJ808
`
`OJ756
`
`shares outstg(cid:173)
`fully diluted ..
`Year end shares
`outstg ...... .
`Earnings (loss).
`per share: pnm
`Earnings (l<>ss)
`per share: fully
`diluted ..... .
`Total no of
`employees
`Number of com
`stlthlderL ....
`Depreciation&
`. .....
`amort.......
`[j]Reported "'is. 0Straigbr line
`
`7,915
`
`7,301
`
`$1.45
`
`$1.33
`
`0JI,l70
`
`OJ749
`
`[J]4j82
`
`03,117
`
`CONSOLIDATED BALANCE SHEET, AS OF Dec.
`31($000):
`.
`
`•
`
`19%
`571
`0JJ4,722
`11l22,595
`4,597
`1,850
`44,335
`
`27.051
`5.594
`
`11l18,326
`5()3
`95,814
`
`1,117
`8,343
`17,589
`27,049
`9,173
`
`404
`36,626
`ffil:l.l73
`59,280
`
`drl65
`
`59,!&8
`
`1995
`171
`[i)IJ,828
`[J]l3,362
`5,()9()
`l.l51
`33,802
`
`23,011
`6,4Sl
`
`ill16.697
`1.013
`80.974
`
`3,910
`4,917
`!3,728
`22,555
`8,935
`
`24.263
`633
`56,386
`ffiUl49
`34,989
`
`dr10,450
`
`24,5SS
`
`Assets:
`Cash ...... .
`Accounts receivable, net
`Inventories, net .•..• T
`Deferred income taxes. ..
`Other current assets ... ,
`Total current assets ... .
`Property & OQllipment,
`net ............ ..
`Deferred income taxes ..
`Excess cost over net
`assets ocq .... , ... .
`Other assets ........ .
`Total assets ........ .
`Liabilities:
`Cum::nt port of lg tm
`debt ............ .
`Accounts payable .... .
`Accrued habilities .... .
`Total current liabilities .
`Long-tenn debt ...... .
`Convertible subord
`debentures ....... .
`Other lg tm liabil .... .
`Tolalliabilities ...... .
`Common stock ...... .
`Addition;>! paid-in cap ..
`Relained earn
`(accumulated defidt) .
`Tolal shhlders eq
`(deficit) ......... .
`Total liabilities &
`stkhlders eq . . . . • . .
`80,974
`95,814
`[i]All<>wance for dollbtful accounts: 1996 $206,000. 0FIFO
`[!Accumulated amortization: 19% $3,548,000. lilPar value:
`1996$.01. 0Aothorized shares: 1996 12,500,000.
`Long Term Debt: Dec. 31, 1996. $10,290.000 as
`follows:
`
`1996
`(in
`thousands)
`$ 4,000
`Sank credit agrtement. . . . . . . . . . . . . . . . . .
`5,294
`Term and real estate loans . . . . . . . . . . . . . . .
`Promissory notes related to acquisitions
`996
`!0,290
`TO!al debt ........• , . . • . . . . . . . • . . . . .
`1, 117
`les• c"""nt pmticn . . . . . . . . . . . . . . . . . . .
`$ 9,173
`Totallong-tenn debt .................. ,
`Line of Credit' In December 1996, Co. and its bank
`amended the Co.'s credit agreement. The amended
`credit agreement provides for a $21.000,000 unseeured
`revolving credit line with an expirntion date of July l,
`1998. Interest is payable monthly on the outstanding
`borrowings based on the bank's prime rate (8 .25% at
`December 31, 1996) minus 0.25%. A Eurodollar pricing
`option is also available to the Co, for terms of up to slx
`months at the Eurodollar rate plus a spread based on the
`leverage ratio of the Co. calculated at the end of each
`
`fiscal quarter ( l.OO% at December 3\, 1996). At Decem(cid:173)
`ber 31, 1996, Co. has $16.658,000 of unused lines of
`credit, after deducting $4,000,000 of Joarts outstanding
`and $342.000 for an outstanding standby letter of cred
`which supports the estimated post-do.sure maintenance
`cost for a former surface impoundment. The cred1
`agreement includes fixed charge coverage and rno.xi(cid:173)
`mucn leverage ratios~ and limitations on future dividend
`payments and outside indebtedness.
`In 1996, Co. converted $24,263,000 principal amoun
`of its 7 .?5% convertible subordinated debentures. The
`Co. paid cash of $609,000 for
`the conversions
`1. BONDS REDEEMED:\ Entl~e issu" of Ducom(cid:173)
`mun Inc. 7.75% conv subord debs due Mar. 31,2011
`was redeemed by Co. at 100 on June 28, 1996.
`Capitol Stock: l. Ducommun Inc. common
`AUTH- 12,500,000 Shs.
`OUTSTG- Dec. 31, 1996,7,301,428 Shs.; par$ 0.01
`VOTING RIGHTS - Has one vote per share with right
`of cumulative voting for directors.
`DIVIDENDS PAID-
`1946 ............... $0.34 1947-48 ........ $0.85 1949 .............. $0.93
`1950 ................. 1.00 1951... ............. 1.10 1952 ................ 1.00
`1953 ................. 0.80 1954-55 .......... 1.00
`(]]1956-59 ....... 1.25
`1960 ................. 1.30 0JJ961-73 ....... 1.00 1974 ................ 1.15
`1975 ................. 0.85 1976-78 .......... 0.40 1979 ................ 0.45
`1980 ................. 0.65 0JJ981-83 ....... 0.70 1984-85 ........... 0.80
`1986 ................. 0.50
`!9117 ................ 0.20 1988 ............ IJJ0.05
`1989-96 ............ Nil
`[j]Atsostockdividends: 1957,2%; 1958,2%;Jan. 15,1959,2%;
`Feb. 19, 1959, 50%; 1967, 4%; 1981, 20%.
`ill Co. distributed 1 snare of Arrow Electronics Inc. for each
`snare of conunon <loci: hdd.
`OPTIONS-
`Option activity during the three years
`ended December 31, 1996 was as foilows:
`
`First Inter(cid:173)
`
`SHARES
`Outstanding at January I, 1994
`703,300
`Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . .
`35,000
`Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . .
`(5,000)
`(21,225)
`Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . .
`712,075
`Outstandiog at December 31, 1994
`49,200
`Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . .
`(20,125)
`Exercised,.. . . . . . . . . . . . . . . . . . . . . . . . .
`(23,625)
`Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . .
`117,525
`Outslallding at December 31, 1995
`181.000
`Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . .
`(43,200)
`Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . .
`(3,000)
`Forfeited . , . . . . . . . . . . . . . . . . . . . . . . . . .
`Outstanding at December 31, 1996
`852,325
`At December 31, 1996, 57,001 common •hate~ were
`available for future grants and 852,325 common shares
`were reserved for the exercise of options.
`PREEMPTIVE RIGHTS- None.
`CONVERSION-
`On Feb. 5, 1996, Co. converted
`$6,416,000 in principal amount of its 7-3/4% converti(cid:173)
`ble subordinated debentures into 642,880 shares of com(cid:173)
`mon stock.
`REGISTRAR & TRANSFER AGENT-
`state Bank., Los Angeles.
`LJSTED - On NYSE (Symbol: DCO)
`SECONDARY EXCHANGES- Also listed on Pacific
`SE.
`PRlCERANGE-
`
`1994
`
`1993
`
`i~ 4i~
`
`1992
`
`i~
`
`Par changed from $2.00 to
`
`~~.:::::::::::
`
`CAPITAL HISTORY-
`$0.01 in June 1990.
`
`1'}96
`
`1995
`
`2~~ 411~~
`
`DURACELL INTERNATIONAL INC.
`History: tncorporated in Delaware on ApL 19. 1988.
`Co. is the ultimate successor of P.R. Mallory & Co. Inc.
`which was fonned in 1935 through Ule consolidation of
`several companies. Mallory was acquired by Dart Indus(cid:173)
`uies Inc. in 1978 and disposed of its remaining non(cid:173)
`battery businesses. In 1979. Dart merged with Kraft, Inc.
`Kohlberg Kravis Roberts & Co .. L.P. organized Co. as
`Duracell Holdings Coil'. to effect the acquisition of
`Duracell's businesses from Kraft on June 24, 1988 for
`$1,861,100,000. Present named adopl:ed Mar. 1:5, 1991.
`Ort April 15. 1996, Co. purchased Eveready South
`Africa for approx. $135,000,000.
`~posed Mergl'r! On Sept. 12, 1996 Co. announced
`that it has signed an agreement to merge wilh the Gillette
`Company. The merger is expected to he .:ompleted by
`the end of calender 1996. Under the terms of the merger
`agreement. each outstanding share of Co. common stock
`will be exchanged for . 904 shares of Gillette common
`SIOck.
`On Dec. 31, 1996, Gillette lU"Id Co. announced tbat
`their respective shareholders approved their merger.
`Control: As of Sept. 13, 1996, KKR Associates
`owned approx. 33.52% of Co.'s outstg. com. stk.
`Business: Co. manuf~res and markets, primarily
`under the DURACELL
`brand, high performance
`alkaline batteries, primary lithium batteries and other
`battery types. Duracell also markets rechargeable nickel
`met.a.l hydride batteries and a lighting products !iDe.
`Co.'s baturies are soJd worldwide through consumer
`channe~s, to industrial users and to manufacturers of
`baltery-J?Owered consumer; industrial~ medica) and milt(cid:173)
`\ary equ>pment.
`Property: Co. has 12 manufacturing sites around the
`world and occupies numerous warehouses and offices..
`The following table sets forth infonnation with respect
`to Du.raceu·s manufacturing sites:
`Location
`. . . . . . . . . . . . . . . . . . . . . . . . . . .
`Cleveland, Tenn.
`. . , . . . . • . . . . . . . . . . . . .
`
`Status
`Leased
`
`Exhibit 1025, Page 002
`
`

`
`3216
`
`MOODY'S INDUSTRIAL MANUAL
`
`Officers
`Charles R. Perrin, Chrnn.
`Charles E. Kiernan, Pres., C.O.D.
`J. N. Allen, Pres., New Products & Technology
`Steven G. Staves, Pres., IDM Division
`Christopher Ripert, V.P., Duracell Europe Division
`David G. Bluestein, Pres .. Duracell North America
`Gregg A. Dwyer, Sr. V.P., General Counsel, Sec.
`G. W, Lewis, Sr. V.P., C.F.O., Fin.
`Nancy A. Reardon, Sr. V.P., Human Res.
`Robett A. Burgholzer, Jr., V.P., Contr.
`Barbltra J. Johnson, V.P., Taxes
`Walter B. Rogers, V.P., Investor Relations
`Somerset R. Waters, V.P., Treas.
`Directors
`Henry R. Kravis
`Charles R. Perrin
`Paul E. Raether
`geor~~-{!~ru
`Scou M. Stllllrt
`Charles E. Kiernan
`PaulaStem
`Amo A. Penzias
`C. Robert Kidder
`William S. Shanahan
`Earnest J. Edwards
`Auditors~ De1oitte & Touche LLP
`Annual Meeting : In October.
`Shareholder Relations~ Walter B. Rogers, V.P.,
`Investor Relations Tel.: 203-796-4364.
`No. of Stockholders: Aug, 24, 1996, 6176(approx.).
`No. of Employees: Jun. 30, 1996, 9600 (approx.).
`Address: Berkshire Co1p0rate Patk, Bethel CT
`06801 Tel.: (203)796-4000.
`
`CONSOLIDATED INCOME ACCOUNT, YEARS
`ENDED June 30($000):
`
`Owned
`Lancaster, S.C .................. - .... .
`Owned
`LaGrange, Ga. . ..................... .
`Owned
`Lexington, N.C. ..................... .
`Owned
`Waterbury, Conn ..................... .
`!.<lased
`Mississauga, Ontari<:>, Canada ........... .
`Owned
`Aarscllot, Belgium ................... .
`Owned
`Mexico City, Mexico ................. .
`Owned
`Port Elizabeth, South Afri~a ............ .
`!.<lased
`W<t:xham, Wales .................•...
`Co,
`leases its. collJorate headquarters facility
`in
`Bethel, Conn.
`In August 1992, the Company,
`Joint Venture:
`Toshiba Banet)' Co., Ltd. and Varta Batterie A.G.
`signed a Technical Cooperation Agreement whereunder
`they agreed to engage in joint research and development
`of superior performing, cadmium-free nickel metal
`hydride rechargeable cells. These cells are used in pow(cid:173)
`ering high-power devices with rapidly growing markets,
`such as laprop oomputers, cellular phones and other
`consumer electronic devices. The Agreement bas a five
`year term.
`In Mar. 1994, Co. and Mr. Saroj K. Poddar. Chairman
`of Poddar Enterprises formed a joint venture company to
`be .;alled ~]] Jnclia Private Limited that will market
`DURACELL
`alkaline baneries in India. The com(cid:173)
`pany is 74% owned by Co., with a member of the Poddar
`Group owning a 26% interest.
`In October 1994, affiliated companies of the Alliance
`members formed a joint venture for the purpose of man(cid:173)
`ufactl.lring nickel metal hydride cells in the United
`States. Duracell's and Toshiba's affiliates each hold a
`forty percent ineeresr in the joint venture and Vatta~s
`affiliate has a twenty percent stake. The joint venture's
`manufacturing facility is currently under construction in
`Mebane, North Carolina. The cells made by the joint
`venture will be sold to the Alliance members and will
`supp1ement the parties' cell needs now being satisfied
`by production at Toshiba's existing nickel metal hydride
`plant in Japan. The duration of the joint venture is indef(cid:173)
`inite and Duraceu·s
`initial capital contribution
`is
`expected to be $20 million, which will be paid into the
`joint venture over several years beginning in fiscal 1995.
`Subsidiaries
`Duracell Canada Inc.
`Duraname Corp.
`Duracell Danmark NS
`Duracell Finland OY
`Duracell Baneries Limited
`Duracell ( 1993) Limited
`Duracell UK Pension Plan Trustees Limited
`Duracell SpA
`SpA Superpila
`Pile Superpila SRL
`Tu<lor Hellesens AB
`Duracell SARL
`Duracell France SNC
`NV Ouracell Belgium SA
`NV Duracell Baueries SA
`SA Duracell Benelux NV
`NV PL Battery SA
`Taiwan Brancb
`Hong Kong Branch
`Duracell Batteries Sucursal en E.spana (Branch)
`ARO Moscow (Branch)
`Duracell Inc.
`Duracell International Corporation
`PL Battery Inc.
`Duracell High Power Inc.
`Duracell GmbH
`Durace[[ Nederland BV
`Duracell-He\lesens Inc.
`Duracell Asia Limited
`Taiwan Branch
`Hong Kong Branch
`Korean Branch
`Duracell (SEA) Pte. Limited
`Duracell Battery Japan Ltd.
`Duracell Mideast and Africa LLC
`Duracell New Zealand Limited
`Dumcel! Australia Pty. Limited
`Duracell Caribbean, Inc.
`Duracell SA de CV
`Duracell do Brazil Industria E Co mercia Ltda.
`Duracell Argentina SA
`Dura.cel! Colombia Ltda.
`Duracellven CA
`Daimon-Duracell (Pilhas) Limitada
`Duracell Norge JVS
`Duracell International GmbH
`Duracel) Svenska AB
`Duracell International Trading KFf
`Duracell International Spol. s.r.o.
`Duracell Poland S. P. Zoo
`Dura.cell (Cbina) Limited
`DumceJJ Mauritius
`Duracell India Private Limited
`Duracell Atlantic, Inc.
`Duracell South Africa (Brancb)
`Duracell Morocco (Branch)
`Duracell Caribbean (Branch)
`Duracell (Malaysia) SDN BHD
`Duracell Thailand Ltd.
`Duracell Korea Limlred
`Everea<ly South Africa (Proprietacy) Limited
`Guernsey Branch
`ESA Enterprises SA
`
`Long T~rrn Debt: June 30, 1996, $521,100,000 as
`follows:
`$433,800,000 commercial paper.
`(I) $66,500,000 foreign revolving credit loan.
`(2) $20,800 other long-term deDI.
`At June 30, 1996. the Company had long-term bank
`credit facilities totaling $818 which expire on December
`30. 1997 and 1999. Availability under these credit
`agreements at· June 30, 1996 was $339. In addition, the
`Company has other international credit arrangements
`with banks totaling $436 of which $382 was available at
`June 30. 1996. Several of the Company's subsidiaries
`have the ability to borrow from a long-term bank credit
`facility and the other international credit arrangements.
`Absent tlte effects of in£-eresl rate swap agreements,
`the effective interest rates at June 30, 1996 were 5.6% on
`commercial paper and 4.7% on foreign revolving credit
`loans, respectively.lncoq>orating the effects of the inter(cid:173)
`est rate swap agreements discussed inN ote 1 0~ the effec(cid:173)
`tive interest rote on $434 of domestic borrowings was
`6.2%.
`The Company is required to repay un<ler its long-term
`bank credit facilities $27 and $434 in 1997 and 1999,
`respectively. Commercial paper and revolving credit
`loans are classified as noncurrent as the Company has
`the intent and ability to refinance these borrowings on a
`long-term basis.
`The credit facilities require. under some conditions~
`that a portion of the net proceeds from the sale of assets
`be applied to reduce commitments or repay advances
`under the credit facilities. These facilities also contain
`financial and other restrictive covenants, including limi(cid:173)
`c.atjons on indebtedness and ljens~
`Capital Stock: 1. DuraceU International Inc.
`Cmnmon
`AUTH - I 50,000,000 Shs.
`OUTSTG- Jun. 30, 1996, 119,400,000 Shs.; parS 0.01
`TREASURY SHARES- 1,000,000 Shs.
`OWNERSHIP- As of Sept. 13, 1996, KKR Associates
`owned approx. 33.52% of Co.'s outstg. corn. shs.
`VOTING RIGHTS - Entitled to one vote per share.
`DIVIDENDS PAID-
`(calendar years):
`1992 ............... $0.16 1993 .............. $0.64 1994 .............. $0.88
`199L .............. l.04
`!Ill996 ............ 1.16
`illToDec.l6.
`Information regarding
`STOCK OPTION PLANS -
`Co.~s. option plans is summarized below:
`
`Stoek
`Options
`O<Jtstg. fuM JO, 1995 .......... " . . . . . . .
`8,386,000
`Granted .................... , . . . . . . .
`344,000
`(l ,638,000)
`Exercised . . . . . . . . . . . . . . .
`(295,000)
`Canceled . . . . . . . . . . . . . . . . . . . . . . . . . . .
`Outstg. June 30, 1996 . . . . . . . . . . . . . . . . . .
`6,797,000
`3,215,000
`ExercisableJune30, !996...............
`DIVIDEND REINVESTMENT PLAN - A Dividend
`Reinvestment Plan is available to Duracell shareholders.
`The Pian provides a convenient. economical and sys(cid:173)
`tematic method of acquiring additional shares of
`Durac:ell's common stock through the automatic rein(cid:173)
`vestment of dividends. The Plan also allows current
`shareholders to purchase additional shares oJ cornmon
`stock thcougb cash contributions of up to $60,000 per
`year. All administrative fees associated with the Plan are
`paid by Duracell. Shareholders interested in participat(cid:173)
`ing in the Plan should request an appHcation form from
`First Chicago Trust Company of New York.
`PREEMPTIVE RIGHTS - None.
`TRANSFER AGENT & REGISTRAR - First Chicago
`Trust Company of New Y ark.
`LISTED - On NYSE (Symbol: DUR)
`1991
`1992
`PRICE RANGE-
`!995
`1993
`1994
`55
`34't.2
`3714
`High
`. . . . . . . . . . .
`47¥<
`3811!
`15
`24-lk
`Low . . . . . . . . . . . .
`36'1:!
`36
`27!:4
`OFFERED- (30,000,000 shs.) at $15 per sh. (proceeds
`ro Ca., $14.21 per sh.) on May I, 1991 thru Merrill
`Lynch & Co., Goldman, Sachs & Co., Bear, Stearns &
`Co. Inc. and associates. Proceeds to reduce outstanding
`indebtedness. Offering contained an over-allotment of
`4,500,000 shs.
`(12,000,000 shs.) at $28.75 per sh. (proceeds to Co.,
`$27.67 per sh.) on Oct. 21, 1991 thru Merrill Lynch &
`Co., Goldman, Sachs & Ca., Bear, Stearns & Co. and
`associ ares. Proceeds of 5,000,000 shs. for Co. account to
`repay debt used under domestic bank credit facility.
`Offering conrained .an ovet-allotment option of up to
`1,800,000 shs.
`
`DUTY FREE INTERNATIONAL, INC.
`History: Incorpor&ted in Maryland in Jan. 1983.
`On Feb. 3, I 986, Co. acquired all the outstg. stk. of
`Samuel Meisel and Company, Inc. for $4,915,367.
`On Jan. 31. 1987. the Co. acquired all of the outstg.
`common stk. of Fenton HW American Um.ired (F AHL)
`in exchange for 1,406.250 shs. of the Co.' • common stk.
`valued at $2,901,440.
`On July 31. 1987, the Co. acquired all of the outstg.
`stk. of Diplomatic Duty Free Shop, Ltd. (DDFS) in
`exchange for 99,900 shs. of the Co.'s common stk.
`On Aug. 2, 1988, the Co.'s acquired 502 shs. (22%) of
`the outstg. shs. of IDF Services. Inc. fat $2,958,743.
`On Feb. l. 1989, the Co. acq.,ired all of the assets,
`including the duty free and tetail leasehold CQncess.ions.
`of the Aifport Division of IDF (lDF Airport Oi vision or
`IDF Services Airport Assets) for $7,479,970, including
`502 shs. of IDF's common stk. valued at $2,958,743.
`
`Exhibit 1025, Page 003
`
`1995
`2,079,000
`727,300
`1,351,700
`
`1994
`1,871,300
`647,600
`1,223,700
`
`!996
`2,289,600
`841,600
`1,448,000
`
`1,003,000
`445.000
`24,500
`
`dr20,200
`
`400,300
`
`155,600
`
`244,700
`244,700
`
`942,000
`409,700
`27,000
`
`5,400
`
`388,100
`
`152.300
`
`235,800
`235,800
`
`121,200
`
`!19.400
`
`120,700
`
`117,700
`
`$1.95
`
`$1.95
`
`$.96
`
`$2.02
`
`$2.()2
`
`$1.10
`
`9,600
`
`6,176
`
`867,500
`356,200
`29,600
`
`dr6,400
`
`320,200
`
`120,000
`
`200,200
`200,200
`
`119,200
`
`117,400
`
`$1.68
`
`$1.68
`
`Net sales ......
`Cost of prod sold .
`Gross profit ....
`Selling,gen &
`admin exp ....
`Operating inoome
`Interest expense .
`Other inc
`(expenses)
`Income bef acctg
`chg & inc taX
`Provtsion for me
`tax .........
`Income bef acctg
`~hanges .....
`Net income ....
`Common shares (000):
`Weighted avg
`sh.tres &
`equivs outstg ..
`Year end shares
`outstg .......
`Income (loss) per
`sh-bef extraord
`itern ........
`Net inc (loss) per
`sh ..........
`Dividends per
`corn sh ......
`Total no of
`employees ..
`Numl)er of <om
`s!khlders .....
`Depreciation &
`amort ......
`ffiStrdight Line
`
`[197.100
`
`92,100
`
`83,300
`
`CONSOLIDATED BALANCE SHEET, AS OF June
`30($000):
`Assets:
`Cash & cash equivs ... .
`Total accts receiv , ... .
`AUowan~e ......... .
`Acrounts receivable, net
`Inventories ......... .
`Deferred income taxes ..
`fupaid & other curr
`assets ........... .
`ToW current assel$ ... .
`Propeny, plt &
`equipment, net .... .
`Intangibles, ael , ..... .
`Other assets ........ .
`Total assets ........ .
`Liabilities:
`Accounts payable .....
`Short ·term bOrrowings
`.
`Accrued liabilities .... ,
`.
`Total current liabilities
`Total1ong-tenn debt ...
`Postretirement benefits
`other than pensions ..
`Deferred income r;ues ..
`Other non-curr liabil .. .
`Total liabilities ...... .
`Common :stock ...... .
`Capi~ surplus ...... .
`Retatned earn
`(accumulated deficit) .
`Accumulated rronsl adj .
`Trer:fury ~tock ...... .
`eqmty ........ .
`To
`Total liabilities &
`stkhlders eq
`. . . . . . .
`2,419,800
`2,728,500
`[l]Allow for doubtful accounts: 1995 $19, HlO,OOO. liJLower of
`cost or market U1Firsl in, fJISr o-ut l±lf'ar- va1ue: $.0 l; Auth shs:
`1996l50.000,000.
`
`1995
`35,000
`409,100
`19,100
`!Il39Q,OOO
`[iffi284,400
`41,100
`
`6!,300
`81!,800
`
`378,300
`1,208,900
`20,800
`2,419,800
`
`117,800
`59,000
`195,600
`372,400
`364,500
`
`98,400
`269,100
`52,000
`1,156,400
`01,200
`1.094,600
`
`221,700
`12,900
`41,200
`1,263,400
`
`1996
`43,600
`495,900
`22,600
`473,300
`111318,400
`31,400
`
`59,300
`926,000
`
`492,100
`1,271,700
`38,700
`2,728,500
`
`136,800
`54,000
`!95,400
`386,200
`521,100
`
`103,300
`260,800
`53,900
`1.325.300
`01,200
`1,147,600
`
`335,700
`4{),)00
`41,200
`1,403,200