/2HE   d 1$&|&A%|Page #*7'ALLEGHENY TELEDYNE INCORPORATED AND SUBSIDIARIES('CONSOLIDATED STATEMENTS OF INCOME'(In millions except per share amounts) "DECEMBER 31,"DECEMBER 31,"DECEMBER 31,'For the Years Ended    'SALES 33333ϭ@ 33333@ @ 'Costs and expenses: 'Cost of sales  fffff@  ̭@  @* 'Selling and administrative expenses  @    p@%'Merger and restructuring costs L@ @ "--'Interest expense, net YA@ B@ , j@ ì@ Ѫ@#'Earnings before Other Income 33333#s@ 33333v@ ffffff8@'Other Income S@ ̬R@ 333333@8'INCOME BEFORE INCOME TAXES AND EXTRAORDINARY LOSS 33333 x@ fffff{@ 333333=@!'PROVISION FOR INCOME TAXES fffffc@ 33333d@ ffffff3@''INCOME BEFORE EXTRAORDINARY LOSS Pl@ Lq@ #@''EXTRAORDINARY LOSS ON REDEMPTION)'OF DEBT, NET OF INCOME TAX BENEFIT + 333333 "--'Net Income  fffffq@ #@#'Dividends on Preferred Stock  ? "--2 'NET INCOME AVAILABLE TO COMMON STOCKHOLDERS    q@  #@"'Per Common Share:'$'Income before Extraordinary Loss ${Gz? $(\? $Q?%'Extraordinary Loss %{Gz %{Gz %"--''NET INCOME '333333? 'p= ף? 'Q?G)'The accompanying notes are an integral part of these statements.7+'ALLEGHENY TELEDYNE INCORPORATED AND SUBSIDIARIES",'CONSOLIDATED BALANCE SHEETS7-'(In millions except share and per share amounts)."DECEMBER 31,."DECEMBER 31, / / 1'ASSETS 3'Cash and cash equivalents 3@O@ 3fffff&\@4'Accounts receivables 4fffffj@ 4T@5'Inventories 5333333@ 5fffff}@6'Deferred income taxes 6fffffQ@ 6R@07'Prepaid expenses and other current assets 77@ 7333333;@9'TOTAL CURRENT ASSETS 933333@ 9O@$:'Property, plant and equipment :33333ۆ@ :33333@;'Prepaid pension cost ;v@ ;fffffs@,<'Cost in excess of net assets acquired <33333#f@ <='Other assets =333333b@ =fffff&d@?'TOTAL ASSETS ?\@ ?̉@+B'LIABILITIES AND STOCKHOLDERS' EQUITYD'Accounts payable Dfffff6n@ Dk@E'Accrued liabilities Eu@ E33333t@ G'TOTAL CURRENT LIABILITIES GfffffN@ G`@H'Long-term debt Hfffff{@ Ḧ@&I'Accrued postretirement benefits I@ I33333@ J'Other JfffffFa@ J`@L'TOTAL LIABILITIES L@ L4N'Redeemable preferred stock (redeemed in 1996) N"-- Ň@@P'STOCKHOLDERS' EQUITY:HR'Preferred stock, par value $0.10: authorized - 50,000,000 shares;S'issued - none S"-- S"--QT'Common stock, par value $0.10: authorized - 600,000,000 shares; issued andNU'outstanding - 174,389,377 shares in 1996 and 174,486,110 shares in 1995 Uffffff1@ Uffffff1@!V'Additional paid-in capital V33333n@ Vo@W'Retained earnings W@ W!@ X'Other X%@ X-@!Z'TOTAL STOCKHOLDERS' EQUITY Z<@ Zfffff@1\'TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY \\@ \̉@G^'The accompanying notes are an integral part of these statements.7`'ALLEGHENY TELEDYNE INCORPORATED AND SUBSIDIARIES,a'CONSOLIDATED STATEMENTS OF CASH FLOWSb'(In millions) d"DECEMBER 31,d"DECEMBER 31,d"DECEMBER 31,e'For the Years Ended e e eg'OPERATING ACTIVITIES:i'Net income i ifffffq@ i#@-j'Adjustments to reconcile net income to;k'net cash provided by (used in) operating activities:$l'Depreciation and amortization l33333SZ@ l[@ l[@#m'Gains on sales of businesses m P m̌I m"--n'Deferred income taxes n2@ n333333E@ n,/o'Extraordinary loss on redemption of debt o+@ o333333@ o"--2p'Change in operating assets and liabilities:q'Inventories qfffffP q) qr'Prepaid pension costs rfffffD rfffffT rRs'Accounts payable sL5@ sfffff&G sQ@t'Accrued income taxes tfffff1@ t)@ tffffffu'Accrued liabilities u+ u> u33333Gv'Accounts receivables v  v v\)w'Long-term postretirement liability w333333'@ w333333 w? x'Other xɿ xffffff @ xffffff,6z'CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES zYl@ z33333j@ z;}'INVESTING ACTIVITIES:,~'Proceeds from the sales of businesses ~333333_@ ~E ~@1'Purchases of property, plant and equipment fffff&V 33333sW L]'Purchases of businesses  E 1'Disposals of property, plant and equipment  -@ ffffff&@&'Sales of short-term investments "-- "-- @I@ 'Other " 333333. ffffff6'CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES fffff9@ 33333Q S'FINANCING ACTIVITIES:4'Payments on long-term debt and capital leases H{ \ P!'Increase in long-term debt (r@ d@ YL@0'Net increase (decrease) in long-term debt n 333333J@ ffffff&2'Dividends paid - common and preferred stock fffffZ ̌L $'Redemption of preferred stock 33333D "-- "-- 'Purchases of common stock 333337 fffffR %!'Exercises of stock options +@ @ ? 'Other ? ? ?('CASH USED IN FINANCING ACTIVITIES r fffffFR ffffffK7'INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS  I Q@ fffffFd5'Cash and cash equivalents at beginning of year fffff&\@ 33333sD@ 33333ci@/'CASH AND CASH EQUIVALENTS AT END OF YEAR @O@ fffff&\@ 33333sD@'NON-CASH TRANSACTIONS:0'Preferred stock dividends on common stock  @ ̌@@"$ --G'The accompanying notes are an integral part of these statements.