ž/2ÿñH7d 1$&%*ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ7ñ'ALLEGHENY TELEDYNE INCORPORATED AND SUBSIDIARIES"ñ'CONSOLIDATED BALANCE SHEETS7ñ'(In millions except share and per share amounts)ñ"March 31,ñ"December 31, ñ"1999 ñ"1998ñ"(Unaudited)ñ"(Unaudited) ñ'ASSETS ñ 'Cash and cash equivalentsñ "$ 57.5ñ "$ 74.8ñ 'Accounts receivable ñ "565.7 ñ "534.7ñ 'Inventories ñ "632.9 ñ "659.9ñ 'Deferred income taxes ñ "58.6 ñ "59.3ñ 'Tax refund ñ "3.6 ñ "5.90ñ'Prepaid expenses and other current assets ñ"28.4 ñ"29.9ñ'Total Current Assetsñ"1,346.7ñ"1,364.5$ñ'Property, plant and equipment ñ"997.4ñ"1,003.6ñ'Prepaid pension cost ñ"445.8 ñ"418.6,ñ'Cost in excess of net assets acquired ñ"253.3 ñ"256.0ñ'Other assets ñ"119.3 ñ"132.8ñ'Total Assetsñ"$ 3,162.5ñ"$ 3,175.5+ñ'LIABILITIES AND STOCKHOLDERS' EQUITYñ'Accounts payableñ"$ 221.0ñ"$ 227.0ñ'Accrued liabilities ñ"296.4 ñ"327.1<ñ'Short-term debt and current portion of long-term debt ñ"133.7 ñ"68.2 ñ'Total Current Liabilities ñ"651.1 ñ"622.3ñ'Long-term debt ñ"394.8 ñ"446.8&ñ 'Accrued postretirement benefits ñ "582.1 ñ "582.6 ñ!'Other ñ!"201.2 ñ!"183.9ñ#'Total Liabilitiesñ#"1,829.2ñ#"1,835.6ñ&'Stockholders' Equity:4ñ''Preferred value, par value $0.10: authorized-%ñ('50,000,000 shares; issued-None ñ("-- ñ("--%ñ)'Common stock, par value $0.10,8ñ*'authorized-600,000,000 shares; issued-197,937,6649ñ+'shares at March 31, 1999 and 197,937,664 shares at8ñ,'December 31, 1998; outstanding-193,160,199 shares(ñ-'at March 31, 1999 and 194,873,151"ñ/'shares at December 31, 1998 ñ/"19.8 ñ/"19.8!ñ0'Additional paid-in capital ñ0"468.8 ñ0"467.3ñ1'Retained earnings ñ1"948.6 ñ1"923.99ñ3'Treasury stock: 4,777,465 shares at March 31, 19990ñ4'and 3,064,513 shares at December 31, 1998ñ4"(101.0) ñ4"(67.6)*ñ5'Foreign currency translation losses ñ5"(6.1) ñ5"(5.9)%ñ6'Unrealized gains on securities ñ6"3.2 ñ6"2.4!ñ8'Total Stockholders' Equityñ8"1,333.3ñ8"1,339.91ñ:'Total Liabilities and Stockholders' Equityñ:"$ 3,162.5ñ:"$ 3,175.5Gñ>'The accompanying notes are an integral part of these statements.7ñ@'ALLEGHENY TELEDYNE INCORPORATED AND SUBSIDIARIES(ñA'CONSOLIDATED STATEMENTS OF INCOME-ñB'(In millions except per share amounts)ñC'(Unaudited)ñE"Three Months EndedñE"Three Months EndedñF"March 31,ñF"March 31, ñG"1999 ñG"1998 ñI'SalesñI"$ 934.6ñI"$ 1,002.2ñK'Costs and expenses:ñL'Cost of sales ñL"716.9 ñL"773.3*ñM'Selling and administrative expenses ñM"114.9 ñM"121.5%ñN'Merger and restructuring costs ñN"0.9 ñN"60.6ñO'Interest expense, net ñO"8.9 ñO"3.9 ñQ"841.6 ñQ"959.3#ñS'Earnings before other income ñS"93.0 ñS"42.9ñT'Other income ñT"0.2 ñT"2.8!ñW'Income before income taxes ñW"93.2 ñW"45.7!ñY'Provision for income taxes ñY"32.6 ñY"18.8ñ\'Net incomeñ\"$ 60.6ñ\"$ 26.9(ñ_'Basic net income per common shareñ_"$ 0.31ñ_"$ 0.14*ñb'Diluted net income per common shareñb"$ 0.31ñb"$ 0.14Gñe'The accompanying notes are an integral part of these statements.7ñg'ALLEGHENY TELEDYNE INCORPORATED AND SUBSIDIARIES,ñh'CONSOLIDATED STATEMENTS OF CASH FLOWSñi'(In millions)ñj'(Unaudited)ñl"Three Months Endedñl"Three Months Endedñm"March 31,ñm"March 31, ñn"1999 ñn"1998ñp'Operating Activities:ñq'Net incomeñq"$ 60.6ñq"$ 26.96ñr'Adjustments to reconcile net income to net cash(ñs'provided by operating activities:$ñt'Depreciation and amortization ñt"32.0 ñt"28.0ñu'Deferred income taxes ñu"3.4 ñu"(1.6)#ñv'Non-cash restructuring costs ñv"-- ñv"33.92ñw'Change in operating assets and liabilities:ñx'Prepaid pension cost ñx"(27.3) ñx"(25.2)ñy'Inventories ñy"27.0 ñy"22.9ñz'Accounts receivable ñz"(25.6) ñz"(24.4)ñ{'Accrued liabilities ñ{"(17.2) ñ{"6.8ñ|'Accrued income taxes ñ|"6.5 ñ|"(19.9)ñ}'Accounts payable ñ}"(6.3) ñ}"(26.7) ñ~'Other ñ~"16.3 ñ~"2.2,ñ€'Cash provided by operating activities ñ€"69.4 ñ€"22.9ñ‚'Investing Activities:1ñƒ'Purchases of property, plant and equipment ñƒ"(24.1) ñƒ"(32.7)<ñ„'Proceeds from the sales of businesses and investments ñ„"5.8 ñ„"--9ñ…'Purchases of businesses and investment in ventures ñ…"(1.1)ñ…"(107.7)1ñ†'Disposals of property, plant and equipment ñ†"0.9 ñ†"1.6&ñ‡'Sales of short-term investments ñ‡"-- ñ‡"34.4 ñˆ'Other ñˆ"(1.9) ñˆ"(0.5)(ñŠ'Cash used in investing activities ñŠ"(20.4)ñŠ"(104.9)ñŒ'Financing Activities:-ñ'Net borrowings under credit agreements ñ"15.1 ñ"105.14ñŽ'Payments on long-term debt and capital leases ñŽ"(1.0) ñŽ"(1.4)ñ'Net increase in debt ñ"14.1 ñ"103.7"ñ‘'Purchases of treasury stock ñ‘"(52.2) ñ‘"--ñ’'Cash dividends ñ’"(31.1) ñ’"(27.9)!ñ“'Exercises of stock options ñ“"2.9 ñ“"3.96ñ•'Cash provided by (used in) financing activities ñ•"(66.3) ñ•"79.7,ñ—'Decrease in cash and cash equivalents ñ—"(17.3) ñ—"(2.3)9ñ˜'Cash and cash equivalents at beginning of the year ñ˜"74.8 ñ˜"53.71ñ›'Cash and cash equivalents at end of periodñ›"$ 57.5ñ›"$ 51.4Fñž'The accompanying notes are an integral part of these statements