Pre-tax charges totaling approximately $103 million ($68 million after tax) associated with the exits of the Eastman Software business ($51 million pre-tax) and Entertainment Imaging’s sticker print kiosk product line ($32 million pre-tax) as well as the write-off of the Company’s Calcomp investment ($20 million pre-tax), which was determined to be unrecoverable.

Pre-tax gains of approximately $120 million ($79 million after tax) related to the sale of The Image Bank ($95 million pre-tax gain) and the Motion Analysis Systems Division ($25 million pre-tax gain). See Note 16, Sales of Assets and Divestitures.

Excluding the above items, net earnings were $1,619 million. Basic earnings per share were $5.09 and diluted earnings per share were $5.03.

1998

The Company’s results for the year included the following:

The sales of its NanoSystems subsidiary and a portion of the Company’s investment in Gretag Imaging Group (Gretag), resulting in pre-tax gains of $87 and $66 million ($57 and $44 million after tax), respectively. See Note 16, Sales of Assets and Divestitures.

A pre-tax charge of $132 million ($87 million after tax) for asset write-downs and employee severance in the Office Imaging division due to volume reductions from Danka Business Systems PLC (Danka). See Note 16, Sales of Assets and Divestitures.

A pre-tax charge of $45 million ($30 million after tax), primarily for in-process research and development (R&D), associated with the acquisition of the medical imaging business of Imation Corp. (the Imation charge). See Note 15, Acquisitions and Joint Ventures.

Excluding the above items, and pre-tax litigation charges of $35 million ($23 million after tax) related primarily to Health Imaging, net earnings were $1,429 million. Basic earnings per share were $4.42 and diluted earnings per share were $4.37