• Consolidated Statment of Operations
• Consolidated Balance Sheets
• Supplemental Information

 
Imation Corp.
Consolidated Statements of Operations
(In Millions, Except Per Share Amounts)
(Unaudited)

 

	Three months ended September 30		Nine months ended September 30
	1996	1995	1996	1995
Net revenues	$559.3	$546.2	$1,696.6	$1,687.9
Cost of goods sold	362.7	364.5	1,105.0	1,099.1
Gross profit	196.6	181.7	591.6	588.8
Operating expenses:
Selling, general and administrative	133.5	129.1	423.4	405.6
Research and development	38.6	53.9	132.1	168.2
Restructuring charges	-	-	53.9	-
Total	172.1	183.0	609.4	573.8
Operating income (loss)	24.5	(1.3)	(17.8)	15.0
Interest expense and other	2.5	4.3	7.9	14.2
Income (loss) before tax and minority interest	22.0	(5.6)	(25.7)	0.8
Income tax provision (benefit)	10.2	(2.4)	(5.4)	0.3
Minority interest	-	(1.4)	(0.4)	(2.0)
Net income (loss)	$ 11.8	$ (1.8)	$ (19.9)	$ 2.5
Earnings (loss) per share	$ .29	$ (.04)	$ (.48)	$ .06
Weighted average shares outstanding (1)	40.8	42.0	41.5	42.0

(1)The number of weighted average shares outstanding used in the computation of earnings per share prior to July 1, 1996 are one-tenth the number of 3M shares outstanding based on the distribution of one share of Imation Corp. for ten shares of 3M pursuant to the spin-off on July 1, 1996.

	September 30, 1996 (Unaudited)	December 31, 1995
ASSETS
Current Assets
Cash and equivalents	$ 126.8	$ -
Accounts receivable - net	482.8	479.5
Inventories
Finished goods	206.3	244.0
Work in process	67.0	81.2
Raw materials and supplies	98.2	101.1
Total inventories	371.5	426.3
Other current assets	109.7	48.8
Total current assets	1,090.8	954.6
Property, plant and equipment - net	474.1	513.2
Other Assets	32.7	73.7
Total Assets	$1,597.6	$1,541.5
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$ 192.8	$ 125.9
Accrued payroll	43.9	44.4
Income taxes payable	10.4	-
Short-term debt	17.2	-
Other current liabilities	175.2	125.9
Total current liabilities	439.5	296.2
Other Liabilities	80.0	96.6
Long-Term Debt Commitments and Contingencies	166.3	-
Shareholders' Equity
Common Stock - $.01 par value	.4	-
Additional paid in capital	992.6	-
Retained earnings	11.8	-
Unearned ESOP shares	(47.5)	-
Cumulative translation adjustment	(45.5)	(46.1)
Net investment by 3M	-	1,194.8
Total shareholders' equity	911.8	1,148.7
Total Liabilities and Equity	$1,597.6	$1,541.5

	U.S.	International	Worldwide
Volume	4.8	13.2	8.8
Price	(3.3)	(7.1)	(5.1)
Translation	-	(2.8)	(1.3)
Total	1.5	3.3	2.4

	U.S.	International	Worldwide
Volume	5.5	8.9	7.2
Price	(3.6)	(6.8)	(5.2)
Translation	-	(2.9)	(1.5)
Total	1.9	(0.8)	0.5

	Three months ended September 30		Nine months ended September 30
	1996	1995	1996	1995
Gross Margin % *	35.2%	33.3%	35.3%	34.9%
Revenue:
United States	$294.4	$289.9	$859.7	$843.8
% of total	52.6%	53.1%	50.7%	50.0%
International	$264.9	$256.3	$836.9	$844.1
% of total	47.4%	46.9%	49.3%	50.0%
Tax Rate **	46.4%	42.3%	44.2%	42.3%

* Year-to-date gross margin percentage excludes special one-time charges.

** Year-to-date tax rate for 1996 is the effective tax rate excluding pretax restructuring charges of $53.9 million and other one-time charges of $22.5 million.

	As of September 30,
	1996	1995
Days Sales Outstanding	78	82
Months of Inventory	3.0	4.1

Approximate Employee Count at September 30, 1996:	9,400
Shares outstanding on September 30, 1996:	41,930,107
Weighted average shares outstanding used in earnings per share computation	40,845,115

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