Analyzing Business Earnings 47items, and changes in accounting principles—along with examples is discussed
in the following sections. All of these items are presented in the income state-
ment on an after-tax basis.
Discontinued Operations
The discontinued operations section is designed to enhance the interpretive
value of the income statement by separating the results of continuing operations
EXHIBIT 2.9 Consolidated statements of income: AK Steel Holding
Corp., years ended December 31 (in millions).
1997 1998 1999
Net sales $4,176.6 $4,029.7 $4,284.8
Cost of products sold 3,363.3 3,226.5 3,419.8
Selling, general and administrative expense 288.0 278.0 309.8
Depreciation 141.0 161.2 210.7
Special charge — — 99.7
Total operating costs 3,792.3 3,665.7 4,040.0
Operating profit 384.3 364.0 244.8
Interest expense 111.7 84.9 123.7
Other income 48.4 30.3 20.8
Income from continuing operations before income
taxes and minority interest 321.0 309.4 141.9
Income tax provision 127.5 105.5 63.9
Minority interest 8.1 8.1 6.7
Income from continuing operations 185.4 195.8 71.3
Discontinued operations 1.6 — 7.5
Income before extraordinary item and cumulative
effect of a change in accounting 187.0 195.8 78.8
Extraordinary loss on retirement of debt, net of tax 1.9 — 13.4
Cumulative effect of change in accounting,
net of tax — 133.9 —
Net income 185.1 329.7 65.4
Other comprehensive income, net of tax:
Foreign currency translation adjustment (1.4) 0.3 (1.4)
Unrealized gains (losses) on securities:
Unrealized holding gains (losses) arising
during the period 2.1 (0.5) (1.2)
Less: reclassification for gains included in net
income (0.2) (1.0) (1.9)
Minimum pension liability adjustment — (2.6) 1.2
Comprehensive income $ 185.6 $ 325.9 $ 62.1
Note:Note references as well as earnings-per-share data included in the AK Steel income statement
were omitted from the above.
SOURCE: AK Steel Holdings Corp., annual report, December 1999, 20.