-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AghtBij7vFA3grpHglbtO785iPHFFRcOvRjuq6c0I8jVGQoW5DiO4aPebNUXNsOf ZO0Wdl/Frj5z65ak7u55jQ== 0000053117-00-000006.txt : 20000503 0000053117-00-000006.hdr.sgml : 20000503 ACCESSION NUMBER: 0000053117-00-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 20000326 FILED AS OF DATE: 20000502 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FORT JAMES CORP CENTRAL INDEX KEY: 0000053117 STANDARD INDUSTRIAL CLASSIFICATION: PAPER MILLS [2621] IRS NUMBER: 540848173 STATE OF INCORPORATION: VA FISCAL YEAR END: 1227 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-07911 FILM NUMBER: 617403 BUSINESS ADDRESS: STREET 1: 1650 LAKE COOK RD STREET 2: PO BOX 89 CITY: DEERFIELD STATE: IL ZIP: 60015 BUSINESS PHONE: 8473175000 MAIL ADDRESS: STREET 1: 1650 LAKE COOK RD STREET 2: PO BOX 89 CITY: DEERFIELD STATE: IL ZIP: 60015 FORMER COMPANY: FORMER CONFORMED NAME: JAMES RIVER CORP OF VIRGINIA DATE OF NAME CHANGE: 19920703 10-Q 1 FORT JAMES CORP FIRST QUARTER 2000 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended: March 26, 2000 Commission File Number:1-7911 - ------------------------------------------------------------------------------- FORT JAMES CORPORATION - ------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Virginia 54-0848173 - ------------------------------------------------------------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 1650 Lake Cook Road, Deerfield, IL 60015-4753 - ------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) - ------------------------------------------------------------------------------- Registrant's telephone number, including area code: (847) 317-5000 - ------------------------------------------------------------------------------- Not Applicable - ------------------------------------------------------------------------------- (Former name, former address, and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days. Yes X No Number of shares of $.10 par value common stock outstanding as of April 15, 2000: 205,770,164 shares FORT JAMES CORPORATION QUARTERLY REPORT ON FORM 10-Q March 26, 2000 TABLE OF CONTENTS Page No. PART I. FINANCIAL INFORMATION: ITEM 1. Financial Statements: Consolidated Balance Sheets as of March 26, 2000 and December 26, 1999 3 Consolidated Statements of Operations for the quarters ended March 26, 2000 and March 28, 1999 4 Consolidated Statements of Cash Flows for the quarters ended March 26, 2000 and March 28, 1999 5 Notes to Consolidated Financial Statements 6 ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 11 ITEM 3. Quantitative and Qualitative Disclosures About Market Risk 14 PART II. OTHER INFORMATION: ITEM 1. Legal Proceedings 14 ITEM 2. Changes in Securities 14 ITEM 3. Defaults Upon Senior Securities 14 ITEM 4. Submission of Matters to a Vote of Security Holders 14 ITEM 5. Other Information 14 ITEM 6. Exhibits and Reports on Form 8-K 14 SIGNATURES 16 PART I. FINANCIAL INFORMATION Item 1. Financial Statements FORT JAMES CORPORATION CONSOLIDATED BALANCE SHEETS March 26, 2000 and December 26, 1999
March December (in millions, except share data) 2000 1999 - -------------------------------------------------------------------------------- Assets: Current assets: Cash and cash equivalents $ 8.5 $ 10.3 Accounts receivable 849.3 880.5 Inventories 816.0 790.4 Deferred income taxes 104.9 111.5 Other current assets 36.7 35.7 - -------------------------------------------------------------------------------- Total current assets 1,815.4 1,828.4 - -------------------------------------------------------------------------------- Property, plant and equipment 7,858.6 7,858.0 Accumulated depreciation (3,562.5) (3,505.9) - -------------------------------------------------------------------------------- Net property, plant and equipment 4,296.1 4,352.1 Goodwill, net 505.6 528.8 Other assets 490.4 548.9 - -------------------------------------------------------------------------------- Total assets $ 7,107.5 $ 7,258.2 ================================================================================ Liabilities and Shareholders' Equity: Current liabilities: Accounts payable $ 572.9 $ 619.1 Accrued liabilities 585.8 568.7 Current portion of long-term debt 71.5 81.9 - -------------------------------------------------------------------------------- Total current liabilities 1,230.2 1,269.7 - -------------------------------------------------------------------------------- Long-term debt 3,438.5 3,432.0 Deferred income taxes 739.5 748.6 Accrued postretirement benefits other than pensions 410.8 417.1 Other long-term liabilities 260.0 263.5 - -------------------------------------------------------------------------------- Total liabilities 6,079.0 6,130.9 - -------------------------------------------------------------------------------- Common stock, $.10 par value, 500.0 million shares authorized; 207.9 million shares outstanding at March 26, 2000 and 214.0 million at December 26, 1999 20.8 21.4 Additional paid-in capital 2,922.5 3,045.0 Accumulated comprehensive loss (268.1) (227.1) Accumulated deficit (1,646.7) (1,712.0) - -------------------------------------------------------------------------------- Total shareholders' equity 1,028.5 1,127.3 - -------------------------------------------------------------------------------- Total liabilities and shareholders' equity $ 7,107.5 $ 7,258.2 ================================================================================
The accompanying notes are an integral part of the consolidated financial statements. FORT JAMES CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS For the Quarters Ended March 26, 2000 and March 28, 1999
(in millions, except per share amounts) 2000 1999 - ------------------------------------------------------------------------------- Net sales $ 1,676.6 $ 1,669.0 Cost of goods sold (1,201.3) (1,135.5) Selling and administrative expenses 288.1) (297.1) - -------------------------------------------------------------------------------- Income from operations 187.2 236.4 Interest expense (57.0) (62.5) Other income, net 14.8 3.9 - -------------------------------------------------------------------------------- Income from continuing operations before income taxes, extraordinary items, and cumulative effect of a change in accounting principle 145.0 177.8 Income tax expense (48.6) (60.2) - -------------------------------------------------------------------------------- Income from continuing operations before extraordinary items and cumulative effect of a change in accounting principle 96.4 117.6 Income from discontinued operations, net of taxes - 4.4 - -------------------------------------------------------------------------------- Income before extraordinary items and cumulative effect of a change in accounting principle 96.4 122.0 Extraordinary loss on early extinguishment of debt, net of taxes - (2.2) Cumulative effect of a change in accounting principle, net of taxes - (22.1) - -------------------------------------------------------------------------------- Net income $ 96.4 $ 97.7 ================================================================================ Basic earnings per share: Income from continuing operations before extraordinary items and cumulative effect of a change in accounting principle $ 0.46 $ 0.54 Income from discontinued operations, net of taxes - 0.02 Extraordinary loss on early extinguishment of debt, net of taxes - (0.01) Cumulative effect of a change in accounting principle, net of taxes - (0.10) - -------------------------------------------------------------------------------- Net income $ 0.46 $ 0.45 - -------------------------------------------------------------------------------- Weighted average common shares outstanding 210.1 219.5 ================================================================================ Diluted earnings per share: Income from continuing operations before extraordinary items and cumulative effect of a change in accounting principle $ 0.46 $ 0.53 Income from discontinued operations, net of taxes - 0.02 Extraordinary loss on early extinguishment of debt, net of taxes - (0.01) Cumulative effect of a change in accounting principle, net of taxes - (0.10) - -------------------------------------------------------------------------------- Net income $ 0.46 $ 0.44 - -------------------------------------------------------------------------------- Weighted average common shares and common share equivalents outstanding 210.4 220.4 ================================================================================ Cash dividends per common share $ 0.15 $ 0.15 ================================================================================
The accompanying notes are an integral part of the consolidated financial statements. FORT JAMES CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS For the Quarters Ended March 26, 2000 and March 28, 1999
(in millions) 2000 1999 - ----------------------------------------------------------------------------- Cash provided by (used for) operating activities: Net income $96.4 $ 97.7 Depreciation expense 115.8 110.2 Amortization of goodwill 4.4 4.7 Deferred income tax provision 2.5 22.2 Income from discontinued operations, net of taxes - (4.4) Loss on early extinguishment of debt, net of taxes - 2.2 Cumulative effect of a change in accounting principle, net of taxes - 22.1 Change in current assets and liabilities, excluding effects of acquisitions and dispositions: Accounts receivable 10.2 (57.9) Inventories (31.2) (24.9) Other current assets (0.9) (3.7) Accounts payable and accrued liabilities (13.0) (65.1) Other, net (27.4) (44.3) - ----------------------------------------------------------------------------- Cash provided by operating activities 156.8 58.8 - ----------------------------------------------------------------------------- Cash provided by (used for) investing activities: Expenditures for property, plant and equipment (104.0) (99.2) Decrease in net assets of discontinued operations - 3.9 Proceeds from sale of assets 86.7 0.7 Other, net (0.5) (0.6) - ----------------------------------------------------------------------------- Cash used for investing activities (17.8) (95.2) - ----------------------------------------------------------------------------- Cash provided by (used for) financing activities: Additions to long-term debt - 0.5 Payments of long-term debt (21.2) (73.6) Net increase in revolving debt 36.0 144.1 Premiums paid on early extinguishment of debt and debt issuance costs - (4.1) Common stock dividends paid (32.2) (33.0) Proceeds from exercise of stock options 0.3 2.4 Common stock purchases (123.7) - - ----------------------------------------------------------------------------- Cash provided by (used for) financing activities (140.8) 36.3 - ----------------------------------------------------------------------------- Decrease in cash and cash equivalents (1.8) (0.1) Cash and cash equivalents, beginning of period 10.3 5.3 - ----------------------------------------------------------------------------- Cash and cash equivalents, end of period $ 8.5 $ 5.2 ============================================================================= The accompanying notes are an integral part of the consolidated financial statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Significant Accounting Policies Basis of Presentation: In the opinion of management, the accompanying unaudited consolidated financial statements of Fort James Corporation ("Fort James" or "the Company") contain all adjustments (including normal recurring accruals) necessary to present fairly the Company's consolidated financial position as of March 26, 2000 and its results of operations and cash flows for the quarters ended March 26, 2000 and March 28, 1999. The balance sheet as of December 26, 1999 was derived from audited financial statements as of that date. The results of operations for the quarter ended March 26, 2000 are not necessarily indicative of the results to be expected for the full year. As a result of the sale of a discontinued operation, information for the quarter ended March 28, 1999 has been restated. Prospective Accounting Pronouncements: In June 1998, the Financial Accounting Standards Board ("FASB") issued Statement No. 133, "Accounting for Derivative Instruments and Hedging Activities" ("FAS No. 133"). This statement requires the recognition of all derivatives in the statement of financial position as either assets or liabilities and their measurement at fair value. Depending upon the nature of the derivative, changes in fair value are either recognized in other comprehensive income or in earnings. FASB Statement No. 137 defers the Company's required adoption of FAS No. 133 until fiscal 2001. The Company has not determined what affect, if any, FAS No. 133 will have on its results of operations or financial position. 2. Dispositions In January 2000, the Company completed the sale of Fort James - Marathon LTD ("Marathon"), a non-integrated pulp mill located in Ontario, Canada, to a joint venture between Tembec Inc. and Kruger Inc. for $69.1 million. In February 2000, the Company closed its groundwood paper operations at the Wauna mill in Clatskanie, Oregon.The loss on the sale of Marathon and costs related to the closure of groundwood operations were recorded in the fourth quarter of 1999. Net sales and income (loss) from operations of Marathon and the goundwood paper business for the quarters ended March 26, 2000 and March 28, 1999 were as follows:
(in millions) 2000 1999 - -------------------------------------------------------------------------------- Net sales of assets held for disposal $ 18.3 $ 29.4 Income (loss) from operations of assets held for disposal $ 1.8 $ (0.8)
In August 1999, Fort James sold its Packaging business to ACX Technologies, Inc. for $836.3 million in cash. The sale included the operations, assets, and liabilities of the Company's folding carton, healthcare, and microwave packaging manufacturing facilities.The Packaging business is treated as a discontinued operation and the financial statements have been restated for periods prior to the disposal date. The results of discontinued operations include the operating profits for the Packaging business and an allocation of interest expense and taxes. Results for the Packaging business for the quarter ended March 28, 1999 were as follows:
(in millions) 1999 - -------------------------------------------------------------------------------- Net sales $ 139.0 ================================================================================ Income from discontinued operations $ 7.9 Tax expense (3.5) - -------------------------------------------------------------------------------- Income from discontinued operations, net of taxes $ 4.4 ================================================================================
3. Stock Purchase Program In August 1999, the Company began execution of a $500 million stock purchase program. During the first quarter of 2000, 6.1 million shares of common stock were purchased at a cost of $123.7 million. As of March 26, 2000, the Company had purchased 13.2 million shares at a cost of $323.4 million since the inception of the program. 4. Balance Sheet Information Reduction-in-Force In the third quarter of 1999, the Company recorded a charge of $25.0 million for the cost of termination benefits for a reduction-in-force program that has reduced headcount by approximately 1,300. As of March 26, 2000, the program was substantially complete and termination benefits of $15.3 million had been paid. Approximately $4.7 million of salary continuation benefits will be paid out according to contract terms. Inventories The components of inventories were as follows as of March 26, 2000 and December 26, 1999:
March December (in millions) 2000 1999 - -------------------------------------------------------------------------------- Raw materials $ 177.4 $ 178.3 Finished goods and work in process 507.6 464.8 Stores and supplies 170.7 165.4 - -------------------------------------------------------------------------------- 855.7 808.5 Reduction to state certain inventories at last-in, first-out cost (39.7) (18.1) - -------------------------------------------------------------------------------- Total inventories $ 816.0 $ 790.4 ================================================================================
5. Comprehensive Income Comprehensive income for the quarters ended March 26, 2000 and March 28, 1999 was $55.4 million and $7.4 million, respectively. The difference between net income and comprehensive income is due to oreign currency translation losses. 6. Income Per Common Share and Common Share Equivalent Income and share information used in determining earnings per share for the quarters ended March 26, 2000 and March 28, 1999 were as follows:
2000 1999 --------------------------------------- (in millions) Income Shares Income Shares - -------------------------------------------------------------------------------- Amounts used to compute basic earnings per share: Income from continuing operations before extraordinary items and cumulative effect of a change in accounting principle $ 96.4 $ 117.6 Weighted average common shares outstanding 210.1 219.5 Effect of dilutive securities: Options (a) 0.3 0.9 - -------------------------------------------------------------------------------- Amounts used to compute diluted earnings per share $ 96.4 210.4 $ 117.6 220.4 ================================================================================
(a) For the quarters ended March 26, 2000 and March 28, 1999, outstanding options to purchase 9.7 million and 5.7 million shares of common stock, respectively, for which the exercise price was greater than the average market price of the common shares were excluded from the computation of diluted earnings per share. 7. Commitments and Contingent Liabilities Environmental Matters: Like its competitors, Fort James is subject to extensive regulation by various federal, state, provincial, and local agencies concerning compliance with environmental control statutes and regulations. These regulations impose limitations, including effluent and emission limitations, on the discharge of materials into the environment, as well as require the Company to obtain and operate in compliance with the conditions of permits and other governmental authorizations. Future regulations could materially increase the Company's capital requirements and certain operating expenses in future years. Fort James, along with others, has been identified as a potentially responsible party ("PRP") at various U.S. Environmental Protection Agency ("EPA") designated Superfund sites and is involved in other remedial investigations and actions under federal and state laws. These sites include the Lower Fox River in Wisconsin, where the Company and six other companies have been identified as PRPs for contamination of the river by hazardous substances. Various state and federal agencies and tribal entities are seeking sediment restoration and natural resources damages. In February 1999, the Wisconsin Department of Natural Resources released for public comment a draft remedial investigation/feasibility study of the Fox River. While the draft study did not advocate any specific restoration alternatives, it included estimated total costs ranging from zero for `no action' to approximately $720 million, depending on the alternative or combination of alternatives selected. The Company, along with other PRPs, is also participating in the funding of a remedial investigation/feasibility study of contamination of the Kalamazoo River in Michigan. The Michigan Department of Environmental Quality ("DEQ") has announced its intention to publish a record of decision, which will contain the DEQ's proposed remedy, sometime during 2001. The final restoration alternative and the Company's share of the related costs, for both these sites, are unknown at this time. It is the Company's policy to accrue remediation costs on an undiscounted basis when it is probable that such costs will be incurred and when a range of loss can be reasonably estimated. As of March 26, 2000, Fort James' accrued environmental liabilities, including remediation and landfill closure costs, totaled $64.4 million. The Company believes that its share of the costs of cleanup for its current remediation sites will not have a material adverse impact on its consolidated financial position but could have a material effect on consolidated results of operations in a given period. Litigation: The Company is party to various legal proceedings generally incidental to its business. As is the case with other companies in similar industries, Fort James faces exposure from actual or potential claims and legal proceedings. In May 1997, the Attorney General of the State of Florida filed a civil action in the United States District Court for the Northern District of Florida at Gainesville (the "Florida District Court"), against the Company and seven other manufacturers of sanitary commercial paper products alleging violations of federal and state antitrust and unfair competition laws. The complaint sought damages on behalf of the state under Florida law of $1 million against each defendant for each violation, unspecified treble damages and injunctive relief. Four other state attorney generals brought similar suits. In April, 2000, the defendants settled with the State of Florida and the matter was dismissed. The Company admitted no wrongdoing. Agreement in principle has been reached to settle the cases brought by the States of New York, Maryland and West Virginia. A case filed by the State of Kansas was dismissed earlier. Numerous private suits on behalf of an alleged class of direct purchasers have also been filed in federal courts, all seeking similar damages for similar alleged violations. In July 1998, the private suits were conditionally certified as a class action in the Florida District Court. Private class action suits also were filed in four states on behalf of an alleged class of indirect purchasers, seeking similar damages for similar alleged violations under state law. The Minnesota state court refused to certify a class in that state, and the case in Wisconsin was voluntarily dismissed prior to certification. The class certification petition was recently argued in California, but no decision has been rendered. No activity has been forthcoming in Tennessee. The Company believes that these remaining cases are without merit and is vigorously defending both the federal and state actions. Although the ultimate disposition of the various legal proceedings to which the Company is a party cannot be predicted with certainty, it is the Company's policy to accrue settlement costs when it is probable that such costs will be incurred and when a range of loss can be reasonably estimated. It is the opinion of the Company's management that the outcome of any claim which is pending or threatened, either individually or on a combined basis, will not have a material adverse effect on the consolidated financial condition of Fort James but could have a material effect on consolidated results of operations in a given period. Other: In 1995, the Company completed the spin-off of certain assets of its Communications Papers and Packaging businesses to Crown Vantage Inc. ("Crown"). On March 15, 2000, Crown filed for Chapter 11 bankruptcy protection from its creditors and secured $100 million of "debtor in possession" financing. As a result of the bankruptcy filing, the Company is currently evaluating possible liabilities it may have related to its former ownership of Crown operations. Management believes that the outcome of any potential claims related to Crown, will not have a material adverse effect on the consolidated financial condition of Fort James but could have a material effect on consolidated results of operations in a given period. 8. Segments Segment sales and income from operations for the quarters ended March 26, 2000 and March 28, 1999 and total assets as of March 26, 2000 and March 28, 1999 were as follows:
Tissue Communi- Inter- --------------- cations company North Papers and and (in millions) America Europe Dixie Fiber Corporate Total - --------------------------------------------------------------------------------------------- 2000 Net sales $ 913.2 $ 449.9 $ 179.2 $ 237.2 $(102.9) $ 1,676.6 Intercompany sales 33.7 - 0.4 68.8 - 102.9 Income from operations 144.1 29.1 19.4 14.3 (19.7) 187.2 Total assets 3,318.8 2,086.7 450.8 586.1 665.1 7,107.5 ============================================================================================= 1999 Net sales $ 899.4 $ 465.9 $ 175.6 $ 196.0 $(67.9) $ 1,669.0 Intercompany sales 25.6 - 0.9 41.4 - 67.9 Income from operations 192.1 61.1 19.3 (14.2) (21.9) 236.4 Total assets 2,997.2 2,168.3 402.2 818.5 1,212.4 (a) 7,598.6 =============================================================================================
(a) Includes net assets of discontinued operations, which were previously reported as a separate segment. Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operations Overview
2000 1999 (a) -------------- ------------------------------------- (in millions, Excluding Unusual except per share data) Reported Reported and Non-recurring - ------------------------------------------------------------------------------- Net sales $ 1,676.6 $ 1,669.0 $ 1,669.0 Income from operations 187.2 236.4 236.4 Net income 96.4 97.7 117.6 Diluted earnings per share $ 0.46 $ 0.44 $ 0.53 ===============================================================================
(a) Net income for the first quarter of 1999 included income from discontinued operations of $4.4 million or $0.02 per diluted share, a charge for the cumulative effect of a change in accounting for start-up costs of $22.1 million or $0.10 per diluted share and an extraordinary loss on the early extinguishment of debt of $2.2 million or $0.01 per diluted share. Tissue - North America - ----------------------
(in millions) 2000 1999 Inc/(Dec) - ----------------------------------------------------------------------- Net sales $ 913.2 $ 899.4 1.5% Income from operations 144.1 192.1 -25.0% =======================================================================
Volumes increased in the current quarter compared to the first quarter of 1999, with volume gains in away-from-home bath tissue and retail bath tissue and towel. The decline in income from operations for both the retail and away-from-home categories is the result of rising raw material costs, principally wastepaper. The away-from-home category was able to slightly offset the increase in costs as announced first quarter list price increases, averaging 9 percent to 10 percent, began to take effect. Additional away-from-home list price increases of up to 12 percent, effective April 17, 2000, have been announced. Net pricing in the retail category, which declined last year with increased promotional spending in all product categories, remained below last year's first quarter level. However, during the quarter, the retail category announced price increases averaging 6 percent to 7 percent effective March 31, 2000. The retail category introduced several new products in the quarter including Quilted Northern Bathroom Tissue Super Family Pack, Brawny 3 Roll Pick-A-Size and Quilted Northern Thick `n Strong Napkins. Tissue - Europe - ---------------
(in millions) 2000 1999 Inc/(Dec) - ----------------------------------------------------------------------- Net sales $ 449.9 $ 465.9 -3.4% Income from operations 29.1 $61.1 -52.4% =======================================================================
Changes in currency exchange rates negatively affected sales and operating profits by approximately $44 million and $5 million, respectively, compared to last year's quarter. European finished goods volumes increased by more than 4 percent compared to the prior year quarter with strength in key markets in France and Spain. Significant increases in raw material costs and competitive pricing conditions in the United Kingdom drove year over year declines in operating profits. In response to the increase in raw material costs, pricing initiatives have been announced in all markets. Dixie - -----
(in millions) 2000 1999 Inc/(Dec) - ----------------------------------------------------------------------- Net sales $ 179.2 $ 175.6 2.1% Income from operations 19.4 19.3 0.5% =======================================================================
The current quarter's results reflected positive volume growth and cost reductions, offset by inflation in plastic resin and other costs. Price increases for the foodservice and club categories have been announced to recover these inflationary cost increases. Dixie shipments increased due to volume gains in dense-pack cutlery and retail plates. During the first quarter, Dixie rolled out Rinse & ReUse disposable stoneware and UltraStrong Giant 11-inch plates,and continued the expansion of the PerfecTouch hot cup. Communications Papers and Fiber - -------------------------------
(in millions) 2000 1999 Inc/(Dec) - ----------------------------------------------------------------------- Net sales $ 237.2 $ 196.0 21.0% Income (loss) from operations 14.3 (14.2) 200.7% =======================================================================
The improved earnings in the first quarter of 2000 were the result of significantly higher pulp and uncoated freesheet prices, partially offset by lower pulp volumes as a result of the January 2000 sale of Marathon, LTD (Marathon) the companys non-integrated pulp mill located in Ontario, Canada. For further informatin on dispositions, see Note 2 to the Consolidated Financial Statements. Interest Expense and Other Income Lower debt levels and reduced borrowing costs resulted in a $5.5 million decrease in interest expense for the quarter. Other income for the quarter ended March 26, 2000 increased to $14.8 million from $3.9 million in 1999, primarily due to a land sale gain. Dispositions In January 2000, the Company completed the sale of Marathon to a joint venture between Tembec Inc. and Kruger Inc. for $69.1 million. In February 2000, the Company closed its groundwood paper operations at the Wauna mill in Clatskanie, Oregon. In August 1999, Fort James sold its Packaging business to ACX Technologies, Inc. for $836.3 million in cash. The sale included the operations, assets, and liabilities of the Company's folding carton, healthcare, and microwave packaging manufacturing facilities. Financial Condition Cash provided by operating activities totaled $156.8 million in the first quarter of 2000, compared with $58.8 million in the prior year. The increase is primarily due to lower accounts receivable and higher accounts payable and accrued liabilities. Capital expenditures were $104.0 million for the three months ended March 2000, compared to $99.2 million for the same period in the prior year. In the first quarter of 2000, the Company received cash proceeds of $86.7 million from the sale of assets, including $69.1million from the sale of Marathon. In addition, the Company exited the groundwood business by closing the groundwood paper operation at its Wauna mill in the first quarter. The Company's current ratio was 1.5 as of March 2000 and 1.4 as of December 1999, while working capital increased to $585.2 million from $558.7 million for the same periods. The increase in working capital is primarily due to lower accounts payable. As of March 2000, total indebtedness was $ 3.5 billion and, including the effect of interest rate swaps, included approximately $1.9 billion of fixed rate and $1.6 billion of floating rate obligations. As of December 1999, total indebtedness was $3.5 billion and, including the effect of interest rate swaps, included $2.2 billion of fixed rate and $1.3 billion of floating rate obligations. Outstanding borrowings of $1.0 billion at March 2000 and December 1999, were supported by commercial paper, revolving credit and money market facilities. Under the most restrictive provisions of the Company's debt agreements, the Company had additional borrowing capacity of approximately $1.2 billion as of March 2000. Stock Purchase Program In August 1999, the Company began execution of a $500 million stock purchase program. During the first quarter of 2000, 6.1 million shares of common stock were purchased at a cost of $123.7 million. As of March 26, 2000, the Company had purchased 13.2 million shares at a cost of $323.4 million since the inception of the program. Inflation For several years prior to 1999, the Company had experienced moderate levels of inflation. In the second half of 1999 and through the first quarter of 2000, the Company began to see significant increases in the cost of its base raw materials, principally wastepaper and purchased pulp. Management believes that these costs will continue to escalate for the remainder of 2000. Although the Company has announced price increases in all businesses, the timing and effect of these increases are uncertain and therefore, the degree of recoverability of these cost increases is uncertain. Effect of New Accounting Standards See Note 1 to the Consolidated Financial Statements. Information Concerning Forward-Looking Statements Forward-looking statements in this report are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results and Company plans and objectives to differ materially from those projected. Such risks and uncertainties include, but are not limited to, general business and economic conditions; competitive pricing pressures for the Company's products; the ability to successfully introduce new products; changes in raw material, energy and other costs; the ability to achieve projected net cost reductions; opportunities that may be presented to and pursued by the Company; and determinations by regulatory and governmental authorities. Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK None. PART II. OTHER INFORMATION Item 1. LEGAL PROCEEDINGS. See Note 7 to the Consolidated Financial Statements of this Quarterly Report on Form 10-Q. Item 2. CHANGES IN SECURITIES. None. Item 3. DEFAULTS UPON SENIOR SECURITIES. None. Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. The Annual Meeting of Shareholders was held on April 27, 2000. At this meeting, all of management's nominees for members of the Board of Directors were elected. Shareholders of record of the Company's common stock at the close of business on February 28, 2000, were entitled to vote at the Annual Meeting. Votes were cast as follows:
Votes ------------------------------------- Broker For Against Withheld Non-Votes ------------------------------------- ------------ Nominees for election of Directors Barbara L. Bowles 181,166,758 7,214,473 William E. Bradford 182,904,181 5,477,050 William T. Burgin 182,879,857 5,501,374 Dr. James L. Burke 182,929,936 5,451,295 Worley H. Clark, Jr. 182,667,882 5,713,349 Gary P. Coughlan 182,931,212 5,450,019 William V. Daniel 182,753,874 5,627,357 Ernst A. Haberli 182,601,653 5,779,578 Miles L. Marsh 155,024,967 33,356,264 Robert M. O'Neil 182,674,020 5,707,211 Anne Marie Whittemore 182,880,633 5,500,598
Item 5. OTHER INFORMATION. None. Item 6. EXHIBITS AND REPORTS ON FORM 8-K. (a) Exhibits: The exhibits listed below are filed as part of this quarterly report. Each exhibit is listed according to the number assigned to it in the Exhibit Table of Item 601 of Regulation S-K. Exhibit Number 10(a) Separation Agreement between Fort James Corporation and Robert Michael Lempke, filed herewith 27(a) Financial Data Schedules for the three months ended March 26, 2000 (filed electronically only) 27(b) Financial Data Schedules restated for the three months ended March 28, 1999 (filed electronically only) 27(c) Financial Data Schedules restated for the twelve months ended December 27, 1998 (filed electronically only) 27(d) Financial Data Schedules restated for the nine months ended September 27, 1998 (filed electronically only) 27(e) Financial Data Schedules restated for the six months ended June 26, 1998 (filed electronically only) 27(f) Financial Data Schedules restated for the three months ended March 29, 1998 (filed electronically only) 27(g) Financial Data Schedules restated for the twelve months ended December 28, 1997 (filed electronically only) (b) Reports on Form 8-K: No reports on Form 8-K were filed by the Company during the quarter ended March 26, 2000, and subsequent thereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. FORT JAMES CORPORATION By:/s/ Joseph W. McGarr Joseph W. McGarr Executive Vice President and Chief Financial Officer By:/s/ Catherine M. Freeman Catherine M. Freeman Vice President and Corporate Controller (Principal Accounting Officer) Date: May 1, 2000 EX-10 2 EX-10(A) SEPARATION AGREEMENT SEPARATION AGREEMENT This is a Separation Agreement dated as of April 18, 2000 between Fort James Operating Company, its parent, affiliates, subsidiaries, predecessors, successors and assigns (collectively "Fort James" or the "Company") and Robert M. Lempke ("Lempke"). A. Lempke has been employed by Fort James as Senior Vice President & Treasurer under his employment agreement dated as of June 6, 1997 (the "Employment Agreement"). Fort James and Lempke have agreed on the terms under which he will terminate his employment with the Company. The parties desire to resolve matters involving Lempke's employment, the Employment Agreement and Lempke's separation from employment with Fort James. B. Lempke and Fort James further desire to settle, resolve and release any and all existing or potential claims, controversies, differences, disputes or disagreements, known or unknown, that Lempke may have with Fort James in exchange for Fort James' agreement to provide Lempke certain compensation and benefits to which he otherwise may not be entitled. C. Fort James also desires to provide Lempke with additional compensation in return for Lempke agreeing (i) not to compete against Fort James, (ii) not to hire Fort James employees and (iii) to cooperate with Fort James. THEREFORE, in consideration of the above premises and the mutual covenants and promises contained herein, Lempke and Fort James agree as follows: 1. Termination of Employment. Lempke agrees to voluntarily terminate his employment effective at the close of business on August 13, 2000 (his "Date of Termination"). He will be paid all of his regular compensation and benefits through that date. In addition, Lempke agrees to relinquish effective on the date hereof his rights in restricted shares of the Company, and in consideration therefore, the Company agrees to pay Lempke an amount equal to the equivalent value of 4,234 shares of common stock of the Company on August 13, 2000, with the value of the shares of common stock being determined by averaging the high and low price of the common stock or the New York Stock Exchange on such date. Fort James shall pay such amount to Lempke on or before August 31, 2000. 2. Severance Payments. Fort James shall pay Lempke the amount of $847,826.00 representing two (2) times the sum of (i) his current base salary and (ii) his 1998 Management Incentive Bonus. This amount shall be paid as follows: $423,913.50 on August 14, 2000 and $423,913.50 on August 12, 2001. Notwithstanding the preceding sentence, if an investor or investor group acquires more than fifty percent (50%) of the Company's voting common stock or if Miles L. Marsh is no longer CEO of Fort James, the Company agrees to pay Lempke within thirty (30) days after a shareholder files a report with the Securities and Exchange Commission reporting such ownership or after Miles L. Marsh ceases to be CEO the full amount of any unpaid payments as provided in the preceding sentence. 3. MIP Bonus Payments. Fort James shall pay Lempke,on August 14, 2000, $114,798.74 representing his bonus under the 2000 Management Incentive Plan. 4. Pension and Other Benefits. (a) All Company provided medical, prescription and dental coverage and life insurance (including the split dollar life insurance currently provided to Lempke) in which Lempke is currently enrolled shall be provided to Lempke and eligible members of his family for two (2) years following August 13, 2000, to the extent provided in his Employment Agreement. (b) Lempke is the beneficiary of 7,620 performance shares issued pursuant to the 1996 Stock Incentive Plan (the "Plan"). Lempke agrees to relinquish all right to the performance shares as of August 13, 2000. (c) The Company will pay Lempke, on August 14, 2000, in a lump sum $13,554.54 equal to his interest in the Fort James Salaried Employees Retirement Plan and related additional SERP. (d) Nothing herein shall forfeit or otherwise affect Lempke's right to vested benefits in the Fort James 401(k) Plan and related SERP, which benefits shall be paid to Lempke according to such plan. (e) Lempke shall not be entitled to any other bonus payments or profit sharing awards including any additional payments under the Management Incentive Plan. (f) All payments referred to herein are gross payments from which Fort James may withhold legal and authorized amounts for payment to taxing authorities as required by law. (g) The Company shall pay Lempke, on August 14, 2000, $7,000 for tax advice and tax preparation expenses. (h) The Company will pay Lempke, on August 14, 2000, $17,414.68 representing the mortgage buydown on his Lake Forest, Illinois residence. (i) The Company will reimburse Lempke for reasonable legal expenses in connection with the negotiation of this Separation Agreement, not to exceed $2,500. The Company agrees to pay as incurred, to the full extent permitted by law, all legal fees and expenses which Lempke may reasonablyn incur as a result of any contest (regardless of the outcome thereof) by the Company, Lempke or others of the validity or enforceability of, or liability under, any provision of the Employment Agreement or this Separation Agreement or any guarantee of performance thereof (including as a result of any contest by Lempke about the amount of any payment pursuant to this Agreement),plus in each case interest on any delayed payment at the applicable Federal rate provided for in Section 7872 (f) (2) (A) of the Internal Revenue Code of 1986, as amended (the "Code"). (j) Unless exercised, Lempke's options to purchase 60,000 shares granted on January 6, 1998 and 10,000 shares granted on January 6, 1999 shall expire on his Date of Termination. 5. Method of Payment. All cash payments required by this Agreement shall be made by wire transfer to Lempke's account or accounts which he shall designate in writing to the Company's Senior Vice President, General Counsel. Such transfers shall be authorized and released in advance so as to arrive in Lempke's account(s) by applicable due dates. 6. General Release. (a) In consideration of all payments due him hereunder or under the Employment Agreement, Lempke hereby agrees, for himself, his successors, heirs, representatives, executors, agents and assigns, to release and forever discharge Fort James, including its affiliates, subsidiaries, parents, predecessors, successors and assigns and their respective directors, officers, employees and agents thereof from any and all claims, debts, responsibilities and liabilities of every kind and character whatsoever, known or unknown, suspected or unsuspected, which he has ever had or may have against Fort James, including but not limited to, any and all claims arising out of Lempke's employment or termination of employment with Fort James. Lempke acknowledges that this Release includes any and all claims whether in contract or in tort, claims that may be brought on his behalf by others, claims brought before any court or administrative agency, or claims under any national,federal, state or local statute or ordinance, including any claims under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities Act or any other law. It is acknowledged that this Separation Agreement does not release Lempke's right to any vested benefits in the Fort James Corporation StockPlus Plan (the "StockPlus Plan") and related SERP. Lempke's eligibility for benefits in the StockPlus Plan will be controlled by the terms of the plan. (b) Fort James, including its affiliates, subsidiaries, parents, predecessors, successors and assigns and their respective directors, officers, employees and agents thereof hereby release and forever discharge Lempke, his successors, heirs, representatives, executors, agents and assigns from any and all claims, which it has ever had or may have against Lempke or any of the foregoing persons, arising out of (x) Lempke's employment or termination of employment with Fort James or (y) any event, condition or circumstance that existed or arose on or prior to the Date of Termination. The foregoing release will not apply to Lempke's obligations under this Separation Agreement. Fort James acknowledges that this Release includes all claims whether in contract or in tort, claims that may be brought on its behalf by others, claims brought before any court or administrative agency, or claims under any national, federal, state or local statute or ordinance. 7. Special Release Notification. This Separation Agreement includes a release of all claims under the Age Discrimination in Employment Act, ("ADEA"), and, therefore, pursuant to the requirements of the ADEA, Lempke acknowledges that he has been advised (1) that this release includes but is not limited to, all rights or claims arising under the ADEA up to and including the date of execution of this release, but does not waive rights or claims that may arise after the date of execution; (2) to consult with an attorney or other advisor of his choosing concerning his rights and obligations under this release; (3) to fully consider this release before executing it, and that he has been offered at least twenty-one (21) days to do so; (4) that this release shall become effective and enforceable seven (7) days following execution of this Separation Agreement, during which seven (7) day period Lempke understands that he may revoke his acceptance of this Separation Agreement by delivering written notice to Clifford A. Cutchins, IV, Senior Vice President and General Counsel, Fort James Corporation, 1650 Lake Cook Road, Deerfield, Illinois 60015. 8. Post Employment Restrictions, Obligations (a) Lempke agrees to comply with the terms of his Confidentiality Agreement executed as part of his Employment Agreement and not to otherwise use or disclose Fort James confidential information in the future. (b)In return for the payment of the amounts on August 14, 2000 as set forth in Section 2, Lempke agrees, in order to protect the Company's goodwill, trade secrets and confidential information and thereby help ensure the long-term success and development of the business, not to engage in competitive activities on behalf of a competitive business for a period of two (2) years following the Date of Termination with the Company for whatever reason, without first obtaining written permission from either the Senior Vice President and 3 General Counsel or the Senior Vice President, Human Resources, which shall not be unnecessarily withheld or delayed. "Engage in competitive activities" means rendering services or being involved directly or indirectly in any way or in any capacity whether as an officer, director, employee, agent, owner, shareholder or consultant (excluding ownership of less than 5% of the stock of a publicly traded company), in the manufacture, development, promotion or sale of any towel or tissue product or tabletop product of the type manufactured by Fort James (the "Covered Products"). A "competitive business" means any person or entity engaged in the manufacture or non-retail sale of the Covered Products. Lempke acknowledges that products of the Company are sold throughout North America and Western Europe. Accordingly, the geographic area covered by this restraint shall include any county, city, town, province or comparable unit of local government where the Covered Products are manufactured, marketed or sold by the Company. The parties agree that this non-compete provision supersedes all prior agreements between them on this subject. (c) Lempke agrees to favorably represent the Company and to cooperate in the transition of his responsibilities to his successor. (d) Lempke agrees for a period of two (2) years not to solicit directly or indirectly for employment any employee or former employee of Fort James or its affiliates, as of January 1, 2000, without the written consent of the Senior Vice President, Human Resources for the Company, which shall not be unreasonably withheld or delayed. Further, Lempke agrees that if any such Fort James employee approaches him for employment, he will refer them to the appropriate hiring official of his employer and will have no involvement either in the hiring of the employee or in working with the employee should such employee work for the same company for which Lempke works. (e) Lempke agrees that as Senior Vice President & Treasurer he possesses intimate knowledge about all aspects of the Company's business, business plans and other confidential or propriety information. He also agrees that these restrictions are reasonable and necessary to protect the Company's business and in consideration of the substantial benefits provided him hereunder. If Lempke violates any of his obligations under this paragraph 8, the Company shall have no further obligation to him under this Agreement as on the date of breach. Lempke agrees that the Company will be irreparably harmed and will be entitled to immediate injunctive relief in the event of such breach in addition to any other monetary remedies. (f) If any aspect of the above post employment restrictions are deemed void or unenforceable by any court of competent jurisdiction, the parties agree that the court should modify these restrictions to a point they would be enforceable and enforce the restrictions to that extent. 9. Indemnity. Fort James agrees to continue to indemnify and save Lempke harmless from all claims, actions and liabilities which may arise in connection with his reasonable performance of his duties for the Company. Such indemnification shall be to the same extent as its indemnification of active executives of equal rank but shall relate only to Lempke's alleged actions or failure to act during the period in which he was employed by the Company. 10. Future Cooperation. Lempke agrees to cooperate in providing transition assistance related to his departure as may be reasonably required of him by Fort James, including presences as a witness in legal proceedings as may be necessary, both before and after his Date of Termination. 11. Resignation. By his signature hereto, Lempke hereby resigns his position as Senior Vice President & Treasurer and any and all other positions with the Company, its subsidiaries, its parent and its affiliates; provided, however, Lempke shall remain employed as provided in Paragraph 1 until the Date of Termination. 12. Confidentiality. Lempke agrees that he will not divulge the contents of this Separation Agreement which are agreed to be confidential in nature except (a) Lempke may divulge the contents to his spouse, attorney, financial advisor and income tax preparer; or (b) except as may be required to comply with legal process. It is further agreed by Lempke that if it is necessary that this Agreement or a significant portion be disclosed to those listed above, Lempke agrees to instruct and request each of them, or use such other efforts as may be reasonable, to keep any information so disclosed confidential. If Lempke materially breaches this provision, the Company will have no further obligation to him under this Agreement. 13. Entire Agreement. Lempke understands and agrees that all terms of this Separation Agreement are contractual and are not a mere recital. The parties represent and warrant that in negotiating and executing this Separation Agreement, each have had an opportunity to consult with legal counsel or other representatives of their own choosing concerning the meaning and effect of each term or provision hereof, and that there are no representations, promises or agreements other than those specifically referred to or set forth in writing herein. The parties represent and warrant that they have read this Separation Agreement in its entirety, fully understand and agree to its term and provisions, and intend and agree that it is a final and legal binding settlement and release of all claims Lempke or Fort James may have. 15. Severability. If any portions of this Separation Agreement are void or deemed unenforceable for any reason, the unenforceable portions shall be deemed severed from the remaining portions of this Agreement which shall otherwise remain in full force and effect. 16. No Waiver. The decision of either party not to assert a claim for breach of the Separation Agreement shall not be construed as a waiver of that or any subsequent breach which might occur. 17. Corporate Authority. The officer executing this Separation Agreement on behalf of Fort James represents that he has full corporate authority to do so and to bind the Company, its parents, affiliates, subsidiaries, predecessors, successors and assigns. 18. Governing Law. This Agreement shall be governed and construed according to the laws of the Commonwealth of Virginia. IN WITNESS WHEREOF, the parties have affixed their signatures: By:/s/Robert M. Lempke Robert M. Lempke FORT JAMES OPERATING COMPANY By:/s/Daniel J. Girvan Daniel J. Girvan Senior Vice President EX-27 3 EX-27(A) ARTICLE 5 FDS FOR 03/26/00 10-Q
5 THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORT JAMES CORPORATION'S MARCH 26, 2000, FORM 10-Q FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. FORT JAMES CORPORATION 0000053117 1,000,000 3-MOS DEC-31-2000 MAR-26-2000 9 0 849 0 816 1,815 7,859 3,563 7,108 1,230 3,439 0 0 21 1,008 7,108 1,677 1,677 (1,201) (1,489) 15 0 (57) 145 (49) 96 0 0 0 96 0.46 0.46
EX-27 4 EX-27(B) ARTICLE 5 FDS FOR 03/28/99 10-Q
5 THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORT JAMES CORPORATION'S MARCH 28, 1999, FORM 10-Q FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. FORT JAMES CORPORATION 0000053117 1,000,000 3-MOS DEC-26-1999 MAR-28-1999 5 0 881 0 822 1,882 7,457 3,267 7,599 1,444 3,690 0 0 22 1,006 7,599 1,669 1,669 (1,136) (1,433) 4 0 (63) 178 (60) 118 4 (2) (22) 98 0.45 0.44
EX-27 5 EX-27(C) ARTICLE 5 FDS FOR 12/27/98 10-Q
5 THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORT JAMES CORPORATION'S DECEMBER 27, 1998, FORM 10-Q FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. FORT JAMES CORPORATION 0000053117 1,000,000 12-MOS DEC-27-1998 DEC-28-1997 DEC-27-1998 5 0 858 0 807 1,856 7,544 3,225 7,720 1,556 3,646 0 0 22 1,029 7,720 6,803 6,803 (4,547) (5,782) (5) 0 (265) 751 (259) 492 8 (3) 0 498 2.28 2.26
EX-27 6 EX-27(D) ARTICLE 5 FDS FOR 09/27/98 10-Q
5 THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORT JAMES CORPORATION'S SEPTEMBER 27, 1998, FORM 10-Q FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. FORT JAMES CORPORATION 0000053117 1,000,000 9-MOS DEC-27-1998 SEP-27-1998 20 0 922 0 807 1,935 7,453 3,199 7,814 1,471 3,933 0 0 22 940 7,814 5,114 5,114 (3,432) (4,305) (2) 0 (203) 604 (208) 396 9 (3) 0 402 1.85 1.83
EX-27 7 EX-27(E) ARTICLE 5 FDS FOR 06/28/98 10-Q
5 THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORT JAMES CORPORATION'S JUNE 28, 1998, FORM 10-Q FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. FORT JAMES CORPORATION 0000053117 1,000,000 6-MOS DEC-27-1998 JUN-28-1998 6 0 876 0 790 1,884 7,311 3,104 7,699 1,434 4,064 0 0 22 739 7,699 3,400 3,400 (2,299) (2,866) 3 0 (137) 399 (151) 248 6 (3) 0 251 1.15 1.14
EX-27 8 EX-27(F)ARTICLE 5 FDS FOR 03/29/98 10-Q
5 THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORT JAMES CORPORATION'S MARCH 29, 1998, FORM 10-Q FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. FORT JAMES CORPORATION 0000053117 1,000,000 3-MOS DEC-27-1998 MAR-29-1998 22 0 778 0 810 1,852 7,246 3,046 7,684 1,447 4,154 0 0 21 631 7,684 1,669 1,669 (1,135) (1,417) 8 0 (69) 191 (76) 115 2 (2) 0 115 0.53 0.52
EX-27 9 EX-27(G)ARTICLE 5 FDS FOR 12/28/97 10-Q
5 THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORT JAMES CORPORATION'S DECEMBER 28, 1997, FORM 10-Q FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. FORT JAMES CORPORATION 0000053117 1,000,000 12-MOS DEC-28-1997 DEC-29-1996 DEC-28-1997 34 0 750 0 791 1,814 7,202 2,964 7,666 1,529 4,155 0 353 21 211 7,666 6,703 6,703 (4,631) (6,149) 19 0 (320) 253 (158) 95 10 (132) 0 (27) (0.36) (0.28)
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