| |
15. Equities
The authorized capital stock at December 31, 2003 consists of 2,000
shares of Class A Common, $1,000 par value; 50,000 shares of Class
B Common, $1 par value; 500 shares of nonvoting Class C Common, $1,000
par value; 10,000 shares of nonvoting Class D Common, $1 par value;
and 1,000,000 shares of nonvoting, 8% non-cumulative Preferred, $10
par value.
The following details the activity in membership shares during the
three years ended
December 31, 2003:
 |
NUMBER OF SHARES |
| |
|
|
Common
|
Preferred |
|
| |
|
| |
A |
|
B |
|
C |
|
D |
|
|
|
| December 31, 2000 |
1,166 |
|
5,890 |
|
197 |
|
1,500 |
|
97,434 |
|
| New Members |
47 |
|
716 |
|
18 |
|
364 |
|
– |
|
| Redemptions |
(41 |
) |
|
(739 |
) |
|
(15 |
) |
|
(426 |
) |
(4,865 |
) |
|
| December 31, 2001 |
1,172 |
|
|
5,867 |
|
|
200 |
|
|
1,438 |
|
92,569 |
|
| New Members |
3 |
|
|
321 |
|
|
2 |
|
|
137 |
|
– |
|
| Redemptions |
(48 |
) |
|
(981 |
) |
|
(8 |
) |
|
(470 |
) |
(6,289 |
) |
|
| December 31, 2002 |
1,127 |
|
|
5,207 |
|
|
194 |
|
|
1,105 |
|
86,280 |
|
| New Members |
3 |
|
|
247 |
|
|
– |
|
|
156 |
|
– |
|
| Redemptions |
(36 |
) |
|
(540 |
) |
|
(4 |
) |
|
(119 |
) |
(2,762 |
) |
|
| December 31, 2003 |
1,094 |
|
|
4,914 |
|
|
190 |
|
|
1,142 |
|
83,518 |
|
|
Patronage refunds to members of $40.0 million, $96.9 million and
$70.6 million for the years ended December 31, 2003, 2002 and 2001,
respectively, are based on earnings in specific patronage or product
categories and in proportion to the business each member does within
each category. For 2003, Land O’Lakes will issue qualified
patronage refunds in the amount of $40.0 million. Qualified patronage
refunds are tax deductible by the Company when qualified written
notices of allocation are issued and non-qualified patronage refunds
are tax deductible when redeemed with cash. The Company will not
issue any non-qualified patronage refunds for 2003.
The allocation to retained earnings of $42.5 million in 2003, $12.3
million in 2002 and $(1.8) million in 2001 represents earnings or
(losses) generated by non-member businesses plus amounts under the
retained earnings program as provided in the bylaws of the Company.
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