WPC[ zYOW.UP#j8`%p/L 0m9Z}keFjKIE\/*z #:|8*ҡI킌(/Z*J>@7*1LCEPf~rPM[q~ALiW>h%Mo&scaEʚ> 5Uyjn9jq| 8*Y R}``^ryR-JEk:nv3!^8Pr%L =-ye0*k49imJx 3a_* )8uK1yIa6,# UN % 0(UlNfg^ iwu4yffa mfaaNfU(,U.@'dgUPUN(i Baff(a*M>>>>fBEUNU@;; D+{ 0Cl 0Ja 0C  AP 0veeeee@z`````" BU* D5Cfxazo|fIAK~ ?zajf~ah$UN;favUN̩̩̩̩̩̩̩̩̩̩ Bfaݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯ:.-\\FP01\HP692c0(9 Z6Times New Roman RegularX($(hH  Z 6Times New Roman Regularb5 c.u)BackupTABLE A3|xU|Table_ATABLE BX'n2 ZTimes (@ Z(Times New Roman  LiggettAltriaredesignatedcouponing&ahZ 8CaslonOpnface BT Regular+ 1x 6Albertus Medium Regular dTABLE C \\R3'Avery 5261 Address\Table_A \\R3'Avery 5261 Address\ ; 4Vf$Ӏ  2    _  Cigarettesgivenaway'XXXXincludeallcigarettesdistributedforfree,whetherthrough 8 sampling,couponsforfreeproduct, buy3packs,get1freetypeoffers,orotherwise,aslongas $  thosecigaretteswerenotreportedassold.#XXX'X蜀#ԀInearlieryears,theCommissionrequiredthe 8 manufacturerstoreportthenumberC6z C ofcigarettestheysoldbutnotthenumbertheygaveaway.It $ ispossible,however,thatinthoseprioryears,somemanufacturersincludedintheirsalesfigures  somecigarettesthatwereactuallygivenaway.(hH  Z 6Times New Roman Regular<4 9Z+(Times New Roman 'dxd Level 1 Level 2 Level 3 Level 4 Level 5(2C$ !  ("$ Figure    TABLE A($    +,-* I&mage <=8C HKKKK(-!2Vf$ !  Ӏ  0   4Vf$Ӏ  1    _  Thisreportincludes2003salesandadvertisingandpromotionexpendituredatafor 8 Brown&WilliamsonTobaccoCorp.TJ:\Corel2K2\Corel\WORDPE~1\Graphics\FTCCLI~1\PC_FTC~1.GIF     P Pd%2A`ArialIIII)!dxdxTable_AWPC|d d d d 5134!*VVd d ++ H!!!)))999RRRZZZ{{{|ll}            ԇ          Ã                                      M       e   ~    8    z      m          ti         pi           _]           _X           SL         OH               OH            B;            >7         1/             1+          1+          %            !         !                                                                                                                                                                                                                                                                                                                                                                        5      -                             # #         3 4         L Q         e b    e b       e b       e b     a  U      3   +                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        )   '                             Q  L            M  L            M   H            H  H     )     ?   <         "               "                                                                                                                                                                                                                ߃                      ҃                                                                                       z                      Y                      3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              ]              U                   M                    H                     D                  ;                3                   +                  #                                                                                                                                                                                                                                                                                                                                                                                                       !"       b     )+     #    )+            13            6;              :;               BH                FL            JP         WX          []           hi         hi            pz          xz                                    3                                     ԃ               4Vf$Ӏ  3    _  USDAsestimatesalsoincludesalesbysmallermanufacturersandimporters. 7 4Vf$Ӏ  4    _  Thereportedfiguresincludealladvertising,merchandising,andpromotional e expendituresrelatedtocigarettes,regardlessofwhethersuchexpenditureswouldconstitute Q  commercialspeechorwouldbeprotectedfromlawenforcementactionundertheFirst = Amendment.TheCommissionbeganrequiringtobaccocompaniestoincludeexpendituresfor ) suchprotectedspeechin1989. t    \R3'\  4Vf$Ӏ  5    _  Insomecases,thecompanieswereaskedtoreportthese dualexpendituresina e differentcategorythantheypreviouslywerereported. 4Vf$Ӏ  6    _  DetaileddefinitionsofthecategoriescurrentlyusedarereportedinAppendixA.:@tJ:\Corel2K2\Corel\WORDPE~1\Graphics\FTCCLI~1\PC_FTC~1.GIFJ:\Corel2K2\Corel\WordPerfect Office 2002\Graphics\FTC Clipart\pc_ftc_bw.gif TV TV TV |r $h@U*w09*w99 Uw@*w`P*wH 4Vf$Ӏ  7    _  Priorto2002,transitadvertisingwasdefinedasadvertisinginoronpublictransportation e facilities.TABLE DTABLE E  4Vf$Ӏ  8    _  Brandedspecialtyitemdistributionincludesthepracticeofsellingorgivingtoconsumers e noncigaretteitemssuchasTshirts,caps,sunglasses,keychains,calendars,lighters,and Q sportinggoodsbearingacigarettebrandsnameorlogo. ^ 4Vf$Ӏ  9    _Ԁ  Nonbrandedspecialtyitemdistributionincludesthepracticeofgivingconsumersnon e cigaretteitemssuchascompactdiscs,lighters,andsportinggoodsinconnectionwiththe Q marketingofcigarettes.  4Vf$Ӏ  10    _  Thecigarettecompaniesalsospent$160,000ondXXXXpublicentertainmenteventsdisplaying e theircorporatename,butnotdisplayingthenameorlogoofanybrandofcigarettesorotherwise Q referringtocigarettes.#XXXdX蜚#(hH  Z 6Times New Roman RegularTABLE F l 4Vf$Ӏ  11    _  Thiscategorydoesnotincludedirectmailcontainingcoupons.Couponssentviadirect e mailwerereportedinthecouponandretailvalueaddedcategoryfrom1988to1996,buthave Q beenreportedseparatelysince1997.  4Vf$Ӏ  12    _  In2002,theCommissionclarifiedthatlXXXXwhencouponsaredistributedforfreecigarettes e andnopurchaseisrequiredtoredeemthem,suchactivitiesshouldbereportedonlyas Q  sampling,notas coupons.#XXXlX蜒#(hH  Z 6Times New Roman Regular 4Vf$Ӏ  13    _  Thecigarettesandthebonusitemsareoftenpackagedtogetherasasingleunit.  dTABLE G  4Vf$Ӏ  14    _  Thisincludesexpendituresfor:(1)thesponsoring,advertising,orpromotionofsportsor e sportingevents;supportofanindividual,group,orsportsteam;andpurchaseoforsupportfor Q equipment,uniforms,sportsfacilities,and/ortrainingfacilities;(2)allexpendituresfor = advertisinginthenameofthecigarettecompanyoranyofitsbrandsinasportsfacility,ona ) scoreboard,orinconjunctionwiththereportingofsportsresults;and(3)allexpendituresfor  functionalpromotionalitems(clothing,hats,etc.)connectedwithasportingevent. 4Vf$Ӏ  15    _  Theseexpendituresarenotincludedinthe$15.14billionreportedinTable2C. 4Vf$Ӏ  16    _  Priorto2002,theCommissionaskedwhether tarandnicotineratingsweredisplayed e oncigarettepackaging.   0  e      $      !  _5Q5' XXX'g3:3#` p0' ` Eqg qq(#(# qqqq qqqq qqqq qqqq qqqq qqqq qqqq qqqq (#(#qq[XX [@dd #[ 9#X}[FederalTradeCommission p    `  CigaretteReport X    `    For2003   #X=XX}#X XX=@*#}  X#X  }ԈX@*   `     h      p ISSUED:2005  (J$ X X  TRX3'X3' Letter3'Letter5' XXX'g3:3'LetterT X  8585#}  X##XX }#8XXdd8  ?*XXXXpgI.0  INTRODUCTION 8T$T$ H  Thisreportisthelatestinaseriesoncigarettesales,advertising,andpromotionthatthe  FederalTradeCommission( theCommission)haspreparedannuallysince1967.     Thestatisticaltablesappendedtothisreportprovideinformationondomesticsalesand   advertisingandpromotionalactivityforU.S.manufacturedcigarettesfortheyears1963through  ` 2003.Thetableswerecompiledfromrawdatacontainedinspecialreportssubmittedtothe p 8  CommissionpursuanttocompulsoryprocessbythefivemajorcigarettemanufacturersintheUnited H  States:AltriaGroup,Inc.#XXXX蜇#XXXXԀ(theultimateparentofPhilipMorris);HouchensIndustries,Inc.(the    ultimateparentofCommonwealthBrands,Inc.);#XXXX? #XXXXԀLoewsCorp.(theultimateparentofLorillard  TobaccoCo.)#XXXX #XXXX;ReynoldsAmerican,Inc.(theultimateparentofR.J.ReynoldsTobaccoCo.and#XXXX蜜 #XXXXSanta  FeNaturalTobaccoCompany,Inc.andwhichacquiredBrown&WilliamsonTobaccoCorp.in p 2004#XXXX. #XXXX5 2  1      )#XXXX #XXXX;andVectorGroupLtd.(theultimateparentofLiggettGroup,Inc.and#XXXX蜐#VectorTobacco,Inc.)XXXX. H #XXXX/#  Thereportshowsthatthetotalnumberofcigarettessoldorgivenawaydecreasedby19.8 X  billioncigarettes(5.1percent)from2002to2003,whileadvertisingandpromotionalexpenditures 0 rose$2.68billion(21.5percent)to$15.15billion,themosteverreportedtotheCommission.The  largestsinglecategoryofexpenditureswasXXXXpricediscountspaidtocigaretteretailersorwholesalersin  ordertoreducethepriceofcigarettestoconsumers.Thisonecategoryaccountedfor$10.81billion, !  or71.4percentoftotaladvertisingand#XXXX#promotionalexpenditures.  #X"    Table1displaysannualcigarettesalesbymanufacturerstowholesalersandretailersfrom h%0!$ 1963to2000.Table1Adisplaysthetotalnumberofcigarettessoldandgivenawayfortheyears @'#& 2001through2003.&h 2  2      ׀In2003,themajordomesticcigarettemanufacturerssoldorgaveaway367.6 )$( p e8    billioncigarettesdomestically,19.8billion(5.1percent)fewerthanthe387.4billiontheysoldor e gaveawayin2002.Salesdeclinedfrom376.4billionin2002to360.5billionin2003,while = XXXXcigarettesgivenawaydecreasedfrom11.1billionin2002to7.1billion#XXXX蜥#XXXXin2003.#XXXX0#    BecausethecigarettesalesdatareportedtotheCommissionbythemajormanufacturersare   basedonfactoryshipments,andthuscanreflectchangesininventoryholdingsbycigarette  ` wholesalersandretailers,theCommissionsannualreportsalsoincludeinformationfromthe  8  cigaretteconsumptionseriesproducedbytheU.S.DepartmentofAgriculture(USDA),whichis u  basedonanestimateofthenumberofcigarettesactuallyconsumed.U@ 2  3      ׀USDAscigaretteconsumption M  estimates,whichareincludedinTables1and1A,showa3.6percentdecreasefrom2002to2003 % (from415billioncigarettesto400billion).     Tables2through2Cshowtheamountsspentoncigaretteadvertisingandpromotionforthe p years1970,and1975through2003.W 2  4      ׀Thesetableslisttheamountsspentonthedifferenttypesof H mediaadvertising(e.g.,newspapersandmagazines)andsalespromotionactivities(e.g.,distribution   ofcigarettesamples),andalsogivethepercentageofthetotalamountspentforthevarioustypesof ] advertisingandpromotion. 5 g       TheCommissionsubstantiallyreviseditsdefinitionsofthevariousadvertisingand e promotionalexpenditurecategoriesin2002.Theserevisionsclarified(and,insomecases,expanded) = thedefinitionsofcertaincategories,splitseveralcategoriesintosmallersubcategories,andspecified  wheremoneyshouldbereportedwhenexpendituresfellwithintwoormorecategoriesXXXX.Y 2  5      ׀The   Commissionalsoaddednewcategoriestopickupexpendituresthatmayhavepreviouslybeen  ` unreportedorreportedinthecatchall othercategory.#XXXXz#Zh 2  6        8    Table2Cshowsthatoverall,$15.15billionwasspentoncigaretteadvertisingandpromotion u  in2003,themosteverreportedbythemajorcigarettemanufacturers.The$15.15billionrepresents M  anincreaseof21.5percentfromthe$12.47billionspentin2002,andof35.0percentfromthe$11.22 % billionspentin2001.    Newspaperadvertisingexpendituresdecreasedfrom$25.5millionin2002to$8.3millionin p 2003,thesmallestamountreportedforthiscategorysincetheCommissionbeganaskingabout H newspaperspendingin1970.Thisadvertisingcategoryaccountsfor0.05percentofallexpenditures.   Althoughnewspaperspendingaccountedfor23.1percentoftotalexpendituresin1981,ithas ] accountedforlessthanonepercentofexpendituressince1992. 5   Themanufacturersreportedspending$156.4milliononmagazineadvertisingin2003,an   increaseof46.4percentfrom2002.Magazineadvertisingrepresented1.0percentoftotalspending. !  Spendingonmagazineadvertisingpeakedin1984,whenthecigarettecompaniesreportedspending #X" $425.9million(20.3percentoftotaladvertisingandpromotionalexpenditures). %0!$   Spendingon outdooradvertisingtotaled$32.6millionin2003,or0.2percentoftotal e advertisingandpromotionalspending.Thisrepresentsanincreaseof34.8%fromthe$24.2million = spentin2002.In2002,XXXX outdooradvertisingwasdefinedtomeanbillboards;signsandplacardsin  arenas,stadiums,andshoppingmalls(#XXXX&#whethertheyareopenairorenclosed);andanyother   advertisementsplacedoutdoors,regardlessoftheirsize,includingthoseoncigaretteretailerproperty.  ` Inprioryears, outdooradvertisingwasnotpreciselydefined.Inparticular,itwasnotclearthat  8  signsinarenas,shopping,stadiums,shoppingmalls,oronretailerpropertywouldhavebeenreported u  inthiscategory.Expenditureson outdooradvertisingpeakedat$386.1millionin1991. M    Astheyhavesince2001,thecompaniesreportedthattheymadenoexpendituresontransit % advertising(i.e.,advertisingwithinoronprivateorpublicvehiclesoranytransportationfacility)in  2003.Transitadvertisingpeakedat$60.2millionin1991.] 2  7       p   Spendingonpointofsalepromotionalmaterials(adspostedattheretaillocationbut H excludingoutdooradsonretailerproperty)declinedfrom$260.9millionin2002to$165.6millionin   2003,a36.5percentdecrease.Pointofsaleadvertisingaccountedfor1.1percentoftotaladvertising ] andpromotionin2003.Theseexpenditurespeakedin1993at$400.9million. 5   Beginningin2002,the promotionalallowancecategorywasbrokenintofournew   categories:pricediscounts,promotionalallowancespaidtoretailers,promotionalallowancespaidto !  wholesalers,andotherpromotionalallowances.Thelargest promotionalallowancecategorywas #X"  XXXXpricediscountspaidtocigaretteretailersorwholesalersinordertoreducethepriceofcigarettesto %0!$ consumers(e.g.,offinvoicediscounts,buydowns,andvoluntarypricereductions),whichaccounted m'#& ?* ?  ?  forexpendituresof$10.81billionin2003.Thiscategoryincreasedby$2.93billion,or37.3percent e from2002.Inaddition,in2003,theindustryspent$1.23billiononpromotionalallowancespaidto = cigaretteretailersinordertofacilitatethesaleorplacementofcigarettes(e.g.,paymentsforstocking,  shelving,displaying,andmerchandisingbrands;volumerebates;andincentivepayments)and$683.1   milliononpromotionalallowancespaidtocigarettewholesalers(e.g.,paymentsforvolumerebates,  ` incentivepayments,valueaddedservices,andpromotionalexecutions).Finally,$2.8millionwas  8  spentonpromotionalallowancespaidtoanyoneelse(otherthanretailers,wholesalers,andfulltime u  companyemployees)involvedinthecigarettedistributionandsalesprocess,inordertofacilitatethe M  saleorplacementofcigarettes.#XXXX.# Whenthesefourpromotionalallowancecategoriesarecombined, % theytotal$12.72billionandaccountfor84.0percentofall2003spending.In2002,thecompanies  reportedexpendituresof$9.66billiononthesecategories;andin2001,thelastyearbeforethe p Commissionreviseditsdefinitionsofpromotionalallowances,thecompaniesreportedexpenditures H of$4.45billion.     Moneyspentgivingcigarettesamplestothepublic( samplingdistribution)decreasedfrom ] $28.8millionin2002to$17.9millionin2003,adeclineof38.0percent. Samplingwasredefined 5 in2002toinclude,amongotherthings,XXXXwhencouponsaredistributedforfreecigarettesandno   purchaseisrequired#XXXXf7#.Cigarettesamplingdistributionaccountedfor0.1percentofthetotalspenton !  advertisingandpromotionin2003.Theseexpenditureshaveaccountedforlessthanonepercentof #X" totalspendingeveryyearsince1992. %0!$   In2002,thespecialtyitemdistributioncategorywasbrokenintotwonewcategories:branded m'#& andnonbranded.In2003,$9.2millionwasspentonbrandedspecialtyitemdistributionthroughthe E)$( mail,atpromotionalevents,orbyanymeansotherthanatthepointofsalewiththepurchaseof +&* cigarettes.a 2  8      ׀(Specialtyitemsdistributedalongwiththepurchaseofcigaretteswereredesignatedas e retailvalueaddedexpensesbeginningin1988.)In2003,another$255.0millionwasspent = distributingnonbranded,noncigaretteitemsinconnectionwiththemarketingorpromotionof  cigarettes.bT 2  9      ׀Thetotalof$264.2millionspentonspecialtyitemdistributionaccountsfor1.7percent   oftotaladvertisingandpromotionalexpenditures.In2002,specialtyitemdistributionexpenditures  ` were$223.6million.  8    In2003,expendituresforadultonlypublicentertainmentcategorydroppedto$150.9million, u  from$219.0millionin2002,adeclineof31.1percent.ThiscategoryXXXXincludespublicentertainment M  events#XXXXr>#(e.g.,sponsorshipofbarnightsorconcerts)XXXXԀthattakeplaceinanadultonlyfacility#XXXX ?#XXXXԀandthat % displaythenameorlogoofacompanyscigarettesorotherwiserefertocigarettes.In2003,a#XXXX蜌?#nother  $32.8millionwasspentongeneralaudiencepublicentertainment!i.e.,XXXXevents#XXXX蜼@#Ԁ(e.g.,sponsorshipof p afishingtournament)XXXXthatdonottakeplaceinanadultonlyfacility#XXXXLA#XXXXԀandthatdisplaythenameorlogo H ofacompanyscigarettesorotherwiserefertocigarettes.#XXXX蜾A#c 2  10      ׀Generalaudiencepublicentertainment   declined3.6percentfrom2002. ]   Thecompaniesalsoreportedspending$31.4millionin2003ontheXXXXsponsorshipofsports 5 teamsorindividualathletes.Thisexpenditurecategory,whichaccountsfor0.2percentofall   advertisingandpromotionalexpenditures,decreasedfrom$54.2millionin2002,a42.2percent e decline.#XXXX蜇C# =   Allreportingcompaniesindicatedthatnomoneyhadbeenspentonendorsementsand  testimonialsforcigarettesin2003.Noexpenditureshavebeenreportedinthiscategorysince1988.     Thecigarettecompaniesreportedatotalof$93.0millionfordirectmailadvertisingin2003,a  ` 16.5percentdecreasefromthe$111.3millionreportedin2002.j 2  11        8    Theindustryreportedspending$650.7milliononcouponsin2003,a24.6percentincrease u  fromthe$522.2millionreportedin2002.kT 2  12       M    Retailvalueaddedexpendituresarethecostsassociatedwithofferssuchas buyone,getone % freeand buythree,getafreeTshirt,wherethebonusitemisdistributedatretailwhenthe  cigarettesarepurchased.v 2  13      ׀Thecompaniesspent$677.3millionin2003onretailvalueadded p involvingfreecigarettes,a36.1percentdeclinefromthe$1.06billionreportedin2002.Theyalso H spent$20.5milliononretailvalueaddedinvolvingfreenoncigaretteitemsin2003,foratotalof   $697.8millionspentonanytypeofretailvalueadded.In2001,combinedretailvalueadded ] expenditureswere$4.76billion,makingretailvalueaddedthelargestcategoryofexpenditures 5 reportedbythecompaniesthatyear.     In2003,thecompaniesreportedspending$2.9milliononadvertisingonacompanyInternet !  website,threetimesthe$940,000reportedin2002.Thecompaniesreportednoexpendituresonany e otherInternetadvertising(e.g.,XXXXbanneradsonthirdpartysitesanddirectmailadvertisingusinge = mail).#XXXX M#    In2003,thecompaniesreportedspending$760,000ontelephoneadvertising,anincreaseof   11.9percentovertheXXXX$679,000#XXXXRN#Ԁreportedin2002.Thiscategoryincludesexpensesassociatedwith  ` XXXXtelemarketingcallsortheoperationofincomingtelephonelinesforconsumerstoparticipatein  8  promotionsorhearprerecordedproductmessages(butexcludescostsassociatedwithcustomer u  servicerepresentativesforrespondingtoconsumercomplaintsorquestions). M  #XXXXN#  In1988,theCommissionbeganrequiringthecigarettecompaniestoreportthetotalamountof % moneytheyspentadvertisingandpromotingsportsandsportingevents. 2  14      ׀Thisquestionisseparate  from,andduplicativeof,thereportingoftheindividualvariousadvertisingandpromotioncategories. p Forexample,moneyspentonamagazineadvertisementpromotingacigarettebrandedsports H tournamentopentothoseofallagesisreportedunderthecategory generalaudiencepublic   entertainmentandisalsoreportedasanexpenditureon sportsandsportingevents.Similarly, ] expendituresonsponsorshipofsportsteamsandindividualathletesarereportedunderthecategory 5  sponsorshipandarealsoreportedas sportsandsportingevents.Theseexpendituresareonly   countedonce,however,incomputingtheindustrystotaladvertisingandpromotionalexpenditures. !  For2003,themajordomesticcigarettecompaniesreportedthattheyspent$62.8milliononsports #X" andsportingevents,a42.8percentdecreasefromthe$109.7millionspentin2002. e   In2001,theCommissionbeganrequiringthemajorcigarettemanufacturerstoreport = expendituresXXXXonadvertisementsdirectedtoyouthortheirparentsthatareintendedtoreduceyouth  smoking.For#XXXXyV#2003,thecompaniesreportedspending$72.9milliononsuchadvertising. 2  15      ׀This   representsa1.8percentdecreasefromthe$74.2millionreportedin2002.  `   Cigarettemanufacturersreportedthattheypaidnomoneyorotherformofcompensationto  8  haveanycigarettebrandnamesortobaccoproductsappearinanymotionpicturesortelevision u  shows.Thispracticehasbeenreportedasunfundedsince1989.XXXXThecompaniesalsoreportedthat,in M  2003,theydidnotsolicittheappearanceofanycigaretteproductinanymotionpictureortelevision % show,orgrantpermissionfortheappearanceofanycigaretteproductinanymotionpictureor  televisionshow.#XXXXxY# p   Thedataoncigarette advertisingandpromotionalexpendituresreportedinTables2through H 2Cwerenotcollectedintheirpresentformuntil1975.Therefore,Table3reportscigarette   advertisingexpendituresfrom1963through1974. ]   Tables4and4Agivethedomesticmarketshareofcigaretteswithtarratingsof15milligrams 5 (mg.)orlessfortheyears1967through2003.Thedatafortheyearssince1982arefurtherbroken   downintosubcategoriesaccordingtotarratings,e.g.,3mg.orless,6mg.orless,etc.(categoriesare !  presentedcumulatively).In2003,cigaretteswithtarratingsof15mg.orlessconstituted84.9percent #X" ofthedomesticcigarettemarket.Cigaretteswithtarratingsof3mg.orless!thelowestrated %0!$ portionofthemarket!madeup1.0percentofthemarket. m'#&   AsshowninTables5and5A,filteredcigaretteshavedominatedthemarketsince_the E)$( Commissionbegancollectingthisinformationin1963.Filteredcigarettesheld99percentofthe e marketin2003. =   Tables6and6Aprovidethedomesticmarketshareofthevariouscigarettelengthcategories.  TheKingsize(7988mm.)categorycontinuestobethebiggestseller,with61percentofthemarket.   ThiscategoryisfollowedbytheLong(94101mm.)group,whichheld36percentofthemarketin  ` 2003.UltraLong(110121mm.)andRegular(6872mm.)cigarettesaccountedfortwopercentand  8  onepercent,respectively,ofthemarketin2003. u    Table7givesthemarketshareofmentholandnonmentholcigarettes.In2003,themarket M  shareofmentholcigaretteswas27percent,whilenonmentholsheld73percentofthemarket. %   Tables8and8Arelatetowhether tarratingsaredisplayedoncigarettepackaging.Table  8Ashows:(1)thepercentageoftheoverallcigarettemarketrepresentedbyvarietieswithdifferenttar p ratings,and(2)withineachtargroup,thepercentageofthosevarietiesthatdisclosestarratingson H theirpacks. 2  16      ׀Table8Ashowsthatcigarettevarietiesthatprintedtarratingsontheirpacks   representedonly1.2percentoftheoverallmarketin2003.Cigaretteswithtarratingsof811mg. ] represented43.3percentofthemarket;however,only0.8percentofthesecigarettesdisclosedtheir 5 ratingsonthepackin2003.Incontrast,79.8percentofcigarettesrated3mg.tarorlessdisclosed   theirratingsonthepackin2003,butthosecigarettesonlyaccountedfor0.6percentofthetotal !  market.  #X" XeXXXX8XXdXXd8* d dd Xdd Xdd X$$,00 ,00 ,'00 ,00 ,400 +  3) 03TABLE1 0 TOTALDOMESTICCIGARETTEUNITSALES  1XX(INBILLIONSOFINDIVIDUALCIGARETTES)#11g##XX1i# F<*" 0  0FYXYEAR 9/!" 9#XXhYj#1XTOTALSALESREPORTEDBY  CIGARETTE r  MANUFACTURERS* 9/!  " 9UNITCHANGE r  FROMPRIORYEAR 9/!  " 9%CHANGE r FROMPRIORYEAR 9/! " 9USDACIGARETTE r CONSUMPTIONESTIMATES11 e[' " 00  @19630@e#XX1 k#1X1963 }sB " @1963 @ $@516.5$@}516.5 [QC " $@516.5 $@ [Є 9/! " 9Є#11l#11 \R! " 33333_@523.933333_@\523.9#11n#11 }I " 33333_@523.9 00 33333_@ @19640@1964 }sB " @1964 @ @505.0@}505.0 ~tC " @505.0 @ '-11.5'~(11.5) }sC " '-11.5 ' -2.2}(2.2)#11o#11 }sB " -2.2  33333@511.233333@}511.2#11q#11 }I " 33333@511.2 00 33333@ @19650@1965 }sB " @1965 @ H@521.1H@}521.1 }sC " H@521.1 H@ 0@16.10@}16.1 {qB  " 0@16.1 0@  @3.2 @{3.2#11r#11 |rA !"  @3.2  @ @528.7@|528.7#11t#11 }I "" @528.7 00 @ @19660@1966 }sB  #" @1966 @ 33333@529.933333@}529.9 |rC  $" 33333@529.9 33333@ !@8.8!@|8.8 zpA  %" !@8.8 !@ 333333?1.7333333?z1.7#11u#11 |rA  &" 333333?1.7 333333? @541.2@|541.2#11w#11 }I  '" @541.2 00 @ @19670@1967 }sB (" @1967 @ fffff@535.8fffff@}_535.8_ |rC )" fffff@535.8 fffff@ @5.9@|5.9 zpA *" @5.9 @ ?1.1?z1.1#11x#11 |rA +" ?1.1 ? )@549.2)@|549.2#11,{#11 }I ," )@549.2 00 )@ @19680@1968 }sB  -" @1968 @ fffff@540.3fffff@}540.3 |rC  ." fffff@540.3 fffff@ @4.5@|4.5 yoA  /" @4.5 @  ?.8?y.8#11{#11 {q@  0"  ?.8 ?  @545.7 @{545.7#118~#11 }I  1"  @545.7 00  @ Ğ@19690Ğ@1969 }sB 2" Ğ@1969 Ğ@ 33333@527.933333@}527.9 ~tC 3" 33333@527.9 33333@ (-12.4(~(12.4) }sC 4" (-12.4 ( ffffff-2.3ffffff}(2.3)#11~#11 }sB 5" ffffff-2.3 ffffff 33333@528.933333@}528.9#11O#11 }I 6" 33333@528.9 00 33333@ Ȟ@19700Ȟ@1970 }sB 7" Ȟ@1970 Ȟ@ @534.2@}534.2 |rC 8" @534.2 @ 333333@6.3333333@|6.3 zpA 9" 333333@6.3 333333@ ?1.1?z1.1#11#11 |rA :" ?1.1 ? 33333À@536.433333À@|536.4#11^#11 }I ;" 33333À@536.4 00 33333À@ ̞@19710̞@1971 }sB <" ̞@1971 ̞@ @547.2@}547.2 }sC =" @547.2 @ *@13.0*@}13.0 {qB >" *@13.0 *@ 333333@2.4333333@{2.4#11!#11 |rA ?" 333333@2.4 333333@ X@555.1X@|555.1#11o#11 }I @" X@555.1 00 X@ О@19720О@1972 }sBA" О@1972 О@ @561.7@}561.7 }sCB" @561.7 @ -@14.5-@}14.5 {qBC" -@14.5 -@ @2.7@{2.7 |rAD" @2.7 @ fffff@566.8fffff@|566.8#112#11 }IE" fffff@566.8 00 fffff@ Ԟ@19730Ԟ@1973 }sBF" Ԟ@1973 Ԟ@ E@584.7E@}584.7 }sCG" E@584.7 E@ 7@23.07@}23.0 {qBH" 7@23.0 7@ ffffff@4.1ffffff@{4.1 |rAI" ffffff@4.1 ffffff@ m@589.7m@|589.7#11#11 }IJ" m@589.7 00 m@ ؞@19740؞@1974 }sBK" ؞@1974 ؞@ @594.5@}594.5 |rCL" @594.5 @ #@9.8#@|9.8 zpAM" #@9.8 #@ 333333?1.7333333?z1.7 |rAN" 333333?1.7 333333? @599.0@|599.0#11Ѝ#11 }IO" @599.0 00 @ ܞ@19750ܞ@1975 }sBP" ܞ@1975 ܞ@ ق@603.2ق@}603.2 |rCQ" ق@603.2 ق@ ffffff!@8.7ffffff!@|8.7 zpAR" ffffff!@8.7 ffffff!@ ?1.5?z1.5 |rAS" ?1.5 ? @607.2@|607.2#11#11 }IT" @607.2 00 @ @19760@1976 }sBU" @1976 @ 33333@609.933333@}609.9 |rCV" 33333@609.9 33333@ @6.7@|6.7 zpAW" @6.7 @ ?1.1?z1.1 |rAX" ?1.1 ? ,@613.5,@|613.5#11h#11 }IY" ,@613.5 00 ,@ @19770@1977 }sBZ" @1977 @ $@612.6$@}612.6 |rC[" $@612.6 $@ @2.7@|2.7 yoA\" @2.7 @  ?.4?y.4 {q@]"  ?.4 ? H@617.0H@{617.0#114#11 }I^" H@617.0 00 H@ @19780@1978 }sB_" @1978 @ fffff:@615.3fffff:@}615.3 |rC`" fffff:@615.3 fffff:@ @2.7@|2.7 yoAa" @2.7 @  ?.4?y.4 {q@b"  ?.4 ? @@616.0@@{616.0#11#11 }Ic" @@616.0 00 @@ @19790@1979 }sBd" @1979 @ fffffn@621.8fffffn@}621.8 |rCe" fffffn@621.8 fffffn@ @6.5@|6.5 zpAf" @6.5 @ ?1.1?z1.1 |rAg" ?1.1 ? l@621.5l@|621.5#11ƛ#11 }Ih" l@621.5 00 l@ @19800@1980 }sBi" @1980 @ @628.2@}628.2 |rCj" @628.2 @ @6.4@|6.4 zpAk" @6.4 @ ?1.0?z1.0 |rAl" ?1.0 ? @631.5@|631.5#11#11 }Im" @631.5 00 @ @19810@1981 }sBn" @1981 @ @636.5@}636.5 |rCo" @636.5 @  @8.3 @|8.3 zpAp"  @8.3  @ ?1.3?z1.3 |rAq" ?1.3 ? @640.0@|640.0#11^#11 }Ir" @640.0 00 @ @19820@1982 }sBs" @1982 @ ă@632.5ă@}632.5 }sCt" ă@632.5 ă@ -4.0}(4.0) {qBu" -4.0  333333-.6333333{(.6) |rAv" 333333-.6 333333 Ѓ@634.0Ѓ@|634.0#11*#11 }Iw" Ѓ@634.0 00 Ѓ@ @19830@1983 }sBx" @1983 @ ܂@603.6܂@}603.6 ~tCy" ܂@603.6 ܂@ fffff<-28.9fffff<~(28.9) }sCz" fffff<-28.9 fffff< ffffff-4.6ffffff}(4.6) }sB{" ffffff-4.6 ffffff @600.0@}600.0#11#11 }I|" @600.0 00 @ @19840@1984 }sB}" @1984 @ 33333@608.433333@}608.4 |rC~" 33333@608.4 33333@ 333333@4.8333333@|4.8 yoA" 333333@4.8 333333@  ?.8?y.8 {q@"  ?.8 ? 33333Â@600.433333Â@{600.4#11ҩ#11 }I" 33333Â@600.4 00 33333Â@ @19850@1985 }sB" @1985 @ fffff@599.3fffff@}599.3 }sC" fffff@599.3 fffff@ 333333"-9.1333333"}(9.1) |rB" 333333"-9.1 333333" -1.5|(1.5) }sB" -1.5  @594.0@}594.0#11#11 }I" @594.0 00 @ @19860@1986 }sB" @1986 @ 33333S@586.433333S@}586.4 ~tC" 33333S@586.4 33333S@ )-12.9)~(12.9) }sC" )-12.9 ) -2.2}(2.2) }sB" -2.2  fffff>@583.8fffff>@}583.8#11o#11 }I" fffff>@583.8 00 fffff>@  @19870 @1987 }sB "  @1987  @ 33333@575.433333@}575.4 ~tC " 33333@575.4 33333@ &-11.0&~(11.0) }sC " &-11.0 & ffffff-1.9ffffff}(1.9) }sB " ffffff-1.9 ffffff @575.0@}575.0#11F#11 }I " @575.0 00 @ @19880@1988 }sB!" @1988 @ @560.7@}560.7 ~tC!" @560.7 @ ffffff--14.7ffffff-~(14.7) }sC!" ffffff--14.7 ffffff- -2.6}(2.6) }sB!" -2.6  @562.5@}562.5#11#11 }I!" @562.5 00 @ @19890@1989 }sB"" @1989 @ l@525.6l@}525.6 ~tC"" l@525.6 l@ ̌A-35.1̌A~(35.1) }sC"" ̌A-35.1 ̌A 333333-6.3333333}(6.3) }sB"" 333333-6.3 333333 @540.0@}540.0#11#11 }I"" @540.0 00 @ @19900@1990 }sB# " @1990 @ ]@523.7]@}523.7 }sC# " ]@523.7 ]@ ffffff-1.9ffffff}(1.9) {qB# " ffffff-1.9 ffffff ٿ-.4ٿ{(.4) |rA# " ٿ-.4 ٿ h@525.0h@|525.0#11˺#11 }I# " h@525.0 00 h@ @19910@1991 }sB$!" @1991 @ fffff@510.9fffff@}510.9 ~tC$!" fffff@510.9 fffff@ )-12.8)~(12.8) }sC$!" )-12.8 ) 333333-2.4333333}(2.4) }sB$!" 333333-2.4 333333 @510.0@}510.0#11#11 }I$!" @510.0 00 @  @19920 @1992 }sB%""  @1992  @ fffff@506.4fffff@}506.4 }sC%"" fffff@506.4 fffff@ -4.5}(4.5) {qB%"" -4.5  -.9{(.9) |rA%"" -.9  @@500.0@@|500.0#11s#11 }I%"" @@500.0 00 @@ $@19930$@1993 }sB&#" $@1993 $@ fffff|@461.4fffff|@}461.4 ~tC&#" fffff|@461.4 fffff|@ F-45.0F~(45.0) }sC&#" F-45.0 F !-8.9!}(8.9) }sB&#" !-8.9 ! P~@485.0P~@}485.0#11D#11 }I&#" P~@485.0 00 P~@ (@19940(@1994 }sB'$" (@1994 (@ 33333~@490.233333~@}490.2 }sC'$" 33333~@490.2 33333~@ <@28.8<@}28.8 {qB'$" <@28.8 <@ @6.2@{6.2 |rA'$" @6.2 @ `~@486.0`~@|486.0#11#11 }I'$" `~@486.0 00 `~@ ,@19950,@1995 }sB(%" ,@1995 ,@ $~@482.3$~@}482.3 }sC(%" $~@482.3 $~@ -7.9}(7.9) |rB(%" -7.9  -1.6|(1.6) }sB(%" -1.6  p~@487.0p~@}487.0#11#11 }I(%" p~@487.0 00 p~@ 0@199600@ 1996 }sB)&" 0@1996 0@  A~@484.1A~@ }484.1 |rC)&" A~@484.1 A~@  ?1.8? |1.8 zpA)&" ?1.8 ?  ?0.4?z0.4 |rA)&" ?0.4 ? p~@487.0p~@|487.0#11#11 }I)&" p~@487.0 00 p~@ 4@199704@ 1997 }sB*'" 4@1997 4@  }@478.6}@ }478.6 }sC*'" }@478.6 }@  -5.5 }(5.5) |rB*'" -5.5   -1.1|(1.1) }sB*'" -1.1  ~@480.0~@}480.0#11#11 }I*'" ~@480.0 00 ~@ 8@199808@ 1998 }sB~+(" 8@1998 8@  |@458.6|@ }458.6 ~tC~+(" |@458.6 |@  4-20.14 ~(20.1) }sC~+(" 4-20.1 4  -4.2}(4.2) }sB~+(" -4.2  }@465.0}@}465.0#11^#11 }I~+(" }@465.0 00 }@ <@19990<@ 1999 }sBz,)" <@1999 <@  ̴y@411.3̴y@ }411.3 ~tCz,)" ̴y@411.3 ̴y@  G-47.2G ~(47.2) ~tCz,)" G-47.2 G  $-10.3$~(10.3) ~tCz,)" $-10.3 $ 0{@435.00{@~435.0#115#11 }Iz,)" 0{@435.0 00 0{@ @@20000@@ 2000 }sBv-*" @@2000 @@  fffffy@413.9fffffy@ }413.9 |rCv-*" fffffy@413.9 fffffy@  @2.6@ |2.6 yoAv-*" @2.6 @   333333?.6333333?y.6 {q@v-*"  333333?.6 333333? z@430.0z@{430.0YOMv-*" z@430.0 00 ' z@ Y#XX1m#YXX*0  #YY#CigarettessoldbymanufacturerstowholesalersandretailerswithintheU.S.andtoarmedforcespersonnelstationedoutside ., theU.S.#XXY1#YXXYY/,$$ #YY]##XXY>#YXX_ R0d- TRX3'Avery 5261 AddressX3'3'Letter261 AddressX%" ~@480.3'Letter5' XXX'g3:T*V^d (d00 00 '00 '00 400 4 $$,X00 ,X00 ,900 ,00 ,00 ,00 ,e00 +  3) 03#XXY#TABLE1A 0 TOTALDOMESTICCIGARETTEUNITSSOLDANDGIVENAWAY  1XX(INBILLIONSOFINDIVIDUALCIGARETTES)#XX1#   F<*" 0  0F1XYEAR 9/!  " 9UNITS 2 D SOLD* 9/! " 9UNITS   GIVEN 2 D AWAY** 9/! " 9TOTALNUMBER   SOLDANDGIVEN   AWAYASREPORTED 2 D BYMANUFACTURERS 9/! " 9UNIT  CHANGEINSOLD ^p ANDGIVEN    AWAY  ! FROMPRIOR 2 D" YEAR 9/! #" 9PERCENT $ CHANGEINSOLD ^p% ANDGIVEN  & AWAY  ' FROMPRIOR 2 D( YEAR 9/! )" 9USDA  , CIGARETTE  - CONSUMPTION 2 D. ESTIMATES e[' /" 00  D@20010D@ e2001 }sB 0" D@2001 D@  x@398.3x@ }398.3 |rC 1" x@398.3 x@  333333@3.9333333@ |3.9 |rA 2" 333333@3.9 333333@  x@398.3x@ |402.2 [QC 3" x@398.3 x@   [*** 9/! 4"  9*** \R! 5" z@425.0z@\425.0 }I 6" z@425.0 00 z@ H@20020H@ 2002 }sB 7" H@2002 H@  fffffw@376.4fffffw@ }376.4 }sC 8" fffffw@376.4 fffffw@  333333&@11.1333333&@ }11.1 }sB 9" 333333&@11.1 333333&@  fffff6x@387.4fffff6x@ }387.4 ~tC :" fffff6x@387.4 fffff6x@  --14.8- ~(14.8) }sC ;" --14.8 -   -3.7 }(3.7) }sB <"  -3.7   y@415.0y@}415.0 }I =" y@415.0 00 y@ L@20030L@ 2003 }sB >" L@2003 L@  v@360.5v@ }360.5 |rC ?" v@360.5 v@  ffffff@7.1ffffff@ |7.1 |rA @" ffffff@7.1 ffffff@  v@367.6v@ |367.6 ~tC A" v@367.6 v@  3-19.83 ~(19.8) }sC B" 3-19.8 3  ffffff-5.1ffffff}(5.1) }sB C" ffffff-5.1 ffffff y@400.0y@}400.0YOM D" y@400.0 00  y@ Y#XX1v#YXX   `     h #XXY&#1XX*0  CigarettessoldbymanufacturerstowholesalersandretailerswithintheU.S.andtoarmedforcespersonnel * (m stationedoutsidetheU.S.+(n$$ **  CigarettesgivenawaywithintheU.S.andtoarmedforcespersonnelstationedoutsidetheU.S.11 ,)o ***0  Priorto2001,theCommissiondidnotaskaboutcigarettesgivenaway,althoughsomecigarettesgivenawaymay F-X*p havebeenreportedassold.#XX1##XXXX# .+q$$ TRO'3Avery 5261 Address LandscapeX3'Avery 5261 Address'3Letter LandscapeLaser Ta Landscape3'Letter261 AddressX%" ~@480.TYXXYY  *RSd dX00 XX00 X900 900 00 00 e00 eV^H0H0,,,,,,,9,,9,9,9,,+  ,"  ,#XXY#1XX#11#(11  TABLE2    DOMESTICCIGARETTEADVERTISINGANDPROMOTIONALEXPENDITURESFORYEARS1970,19751985(DOLLARSINTHOUSANDS)* ND10B ,,    N 0&FX   0  %   %  '%3 ' '%3 ' '% 3 ' '% 3 ' '% 3 ' '% 3 ' '% 3 ' '%3 ' '%3 ' '%3 ' ?5%3  ?#(XPX(1#(X(XP3Ӏ @6  Ȟ@1970Ȟ@@1970 H>33 Ȟ@1970 Ȟ@ H1975 '3 '1976 '3 '1977 '3 '1978 '3 '1979 '3 '1980 '3 '1981 '3 '1982 '3 '1983 '3 '1984 '3 '1985 6,3  6        '!3 ' '"3 ' '#3 ' '$3 ' '%3 ' '&3 ' ''3 ' '(3 ' ')3 ' '*3 ' ?5+3  ?Newspapers  M_, $14,026  M_- $104,460 'M_.3 '$155,808 'M_/3 '$190,677 'M_03 '$186,947 'M_13 '$240,978 'M_23 '$304,380 'M_33 '$358,096 'M_43 '$282,897 'M_53 '$200,563 'M_63 '$193,519 'M_73 '$203,527 ?5M_83  ?  9 3.9%  : 21.3% ';3 '24.4% '<3 '24.5% '=3 '21.4% '>3 '22.2% '?3 '24.5% '@3 '23.1% 'A3 '15.8% 'B3 '10.6% 'C3 '9.2% 'D3 '8.2% 6,E3  6   F    G  ' H3 ' ' I3 ' ' J3 ' ' K3 ' ' L3 ' ' M3 ' ' N3 ' ' O3 ' ' P3 ' ' Q3 ' ?5 R3  ?Magazines  - ?S $50,018  - ?T $131,199 '- ?U3 '$148,032 '- ?V3 '$173,296 '- ?W3 '$184,236 '- ?X3 '$257,715 '- ?Y3 '$266,208 '- ?Z3 '$291,227 '- ?[3 '$349,229 '- ?\3 '$388,365 '- ?]3 '$425,912 '- ?^3 '$395,129 ?5- ?_3  ?   `  13.9%   a 26.6% ' b3 '23.2% ' c3 '22.2% ' d3 '21.1% ' e3 '23.8% ' f3 '21.4% ' g3 '18.8% ' h3 '19.5% ' i3 '20.4% ' j3 '20.3% ' k3 '16.0% 6, l3  6  m m   m n  'm o3 ' 'm p3 ' 'm q3 ' 'm r3 ' 'm s3 ' 'm t3 ' 'm u3 ' 'm v3 ' 'm w3 ' 'm x3 ' ?5m y3  ?Outdoor    z $7,338    { $84,329 '  |3 '$102,689 '  }3 '$120,338 '  ~3 '$149,010 '  3 '$162,966 '  3 '$193,333 '  3 '$228,081 '  3 '$266,925 '  3 '$295,226 '  3 '$284,927 '  3 '$300,233 ?5  3  ?    2.0%    17.2% ' 3 '16.1% ' 3 '15.4% ' 3 '17.0% ' 3 '15.0% ' 3 '15.6% ' 3 '14.7% ' 3 '14.9% ' 3 '15.5% ' 3 '13.6% ' 3 '12.1% 6, 3  6  M _    M _   'M _ 3 ' 'M _ 3 ' 'M _ 3 ' 'M _ 3 ' 'M _ 3 ' 'M _ 3 ' 'M _ 3 ' 'M _ 3 ' 'M _ 3 ' 'M _ 3 ' ?5M _ 3  ?Transit    $5,354    $10,852 ' 3 '$19,341 ' 3 '$21,530 ' 3 '$22,899 ' 3 '$21,151 ' 3 '$26,160 ' 3 '$21,931 ' 3 '$24,135 ' 3 '$26,652 ' 3 '$25,817 ' 3 '$33,136 ?5 3  ?    1.5%    2.2% ' 3 '3.0% ' 3 '2.8% ' 3 '2.6% ' 3 '2.1% ' 3 '2.0% ' 3 '1.4% ' 3 '1.3% ' 3 '1.4% ' 3 '1.2% ' 3 '1.3% 6, 3  6  -?    -?   '-? 3 ' '-? 3 ' '-? 3 ' '-? 3 ' '-? 3 ' '-? 3 ' '-? 3 ' '-? 3 ' '-? 3 ' '-? 3 ' ?5-? 3  ?PointofSale    $11,663    $35,317 ' 3 '$44,176 ' 3 '$46,220 ' 3 '$57,384 ' 3 '$66,096 ' 3 '$79,799 ' 3 '$98,968 ' 3 '$116,954 ' 3 '$170,059 ' 3 '$167,279 ' 3 '$142,921 ?5 3  ?  m  3.2%  m  7.2% 'm 3 '6.9% 'm 3 '5.9% 'm 3 '6.6% 'm 3 '6.1% 'm 3 '6.4% 'm 3 '6.4% 'm 3 '6.5% 'm 3 '8.9% 'm 3 '8.0% 'm 3 '5.8% 6,m 3  6         ' 3 ' ' 3 ' ' 3 ' ' 3 ' ' 3 ' ' 3 ' ' 3 ' ' 3 ' ' 3 ' ' 3 ' ?5 3  ?PromotionalAllowances   $33,789   $72,018 '3 '$82,523 '3 '$108,227 '3 '$125,148 '3 '$137,111 '3 '$179,094 '3 '$229,077 '3 '$272,269 '3 '$366,153 '3 '$363,247 '3 '$548,877 ?53  ?  M_ 9.4%  M_ 14.7% 'M_3 '12.9% 'M_3 '13.9% 'M_3 '14.3% 'M_3 '12.7% 'M_3 '14.4% 'M_3 '14.8% 'M_3 '15.2% 'M_3 '19.3% 'M_3 '17.3% 'M_3 '22.2% 6,M_3  6         ' 3 ' ' 3 ' ' 3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' ?53  ?SamplingDistribution   $11,775   $24,196 '3 '$40,390 '3 '$47,683 '3 '$47,376 '3 '$64,286 '3 '$50,459 '3 '$81,522 '3 '$141,178 '3 '$125,968 ' 3 '$148,031 '!3 '$140,565 6,"3  6  -?# 3.3%  -?$ 4.9% '-?%3 '6.3% '-?&3 '6.1% '-?'3 '5.4% '-?(3 '5.9% '-?)3 '4.1% '-?*3 '5.3% '-?+3 '7.9% '-?,3 '6.6% '-?-3 '7.1% '-?.3 '5.7% 6,-?/3  6  0   1  '23 ' '33 ' '43 ' '53 ' '63 ' '73 ' '83 ' '93 ' ':3 ' ';3 ' ?5<3  ?SpecialtyItemDistribution  m= $5,652  m> $10,088 'm?3 '$20,030 'm@3 '$35,797 'mA3 '$48,281 'mB3 '$62,029 'mC3 '$69,248 'mD3 '$115,107 'mE3 '$95,246 'mF3 '$127,186 'mG3 '$140,431 'mH3 '$211,429 6,mI3  6   J 2.6%   K 2.1% ' L3 '3.1% ' M3 '4.6% ' N3 '5.5% ' O3 '5.7% ' P3 '5.6% ' Q3 '7.5% ' R3 '5.3% ' S3 '6.6% ' T3 '6.7% ' U3 '8.5% 6, V3  6  W   X  'Y3 ' 'Z3 ' '[3 ' '\3 ' ']3 ' '^3 ' '_3 ' '`3 ' 'a3 ' 'b3 ' ?5c3  ?PublicEntertainment  M_d $544  M_e $8,484 'M_f3 '$7,946 'M_g3 '$9,538 'M_h3 '$11,590 'M_i3 '$10,783 'M_j3 '$16,914 'M_k3 '$37,423 'M_l3 '$63,168 'M_m3 '$76,648 'M_n3 '$59,988 'M_o3 '$57,581 ?5M_p3  ?  q 0.2%  r 1.7% 's3 '1.3% 't3 '1.2% 'u3 '1.3% 'v3 '1.0% 'w3 '1.4% 'x3 '2.4% 'y3 '3.5% 'z3 '4.0% '{3 '2.9% '|3 '2.3% 6,}3  6  ~     '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' ?53  ?Other**  Zl $220,841  Zl $10,311 'Zl3 '$18,182 'Zl3 '$26,157 'Zl3 '$42,100 'Zl3 '$60,310 'Zl3 '$56,694 'Zl3 '$86,226 'Zl3 '$181,813 'Zl3 '$123,951 'Zl3 '$286,035 'Zl3 '$443,043 ?5Zl3  ?    61.1%    2.0% ' 3 '2.8% ' 3 '3.4% ' 3 '4.8% ' 3 '5.6% ' 3 '4.6% ' 3 '5.6% ' 3 '10.1% ' 3 '6.5% ' 3 '13.7% ' 3 '17.9% 6, 3  6       '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' ?53  ?Total  :L $361,000  :L $491,254 ':L3 '$639,117 ':L3 '$779,463 ':L3 '$874,971 ':L3 '$1,083,425 ':L3 '$1,242,289 ':L3 '$1,547,658 ':L3 '$1,793,814 ':L3 '$1,900,771 ':L3 '$2,095,231 ':L3 '$2,476,441 6,:L3  6 >4  ?100.0?>100% mc1 ?100.0 ? ?100?m100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100%SIG3 ?100  $ ? S#(##XXE#1XX#XX1H#YXX*0  Becauseofrounding,sumsofpercentagesmaynotequal100percent.*!<H0H0 **0  IncludesTVandRadioadvertisingexpendituresof$207,324,000and$12,492,000,respectively,for1970.BroadcastadvertisingwasbannedafterJanuary1,1971. ! Expendituresfordirectmail,endorsements,testimonials,andaudiovisualareincludedinthe AllOtherscategorytoavoiddisclosureofindividualcompanydata.#XXYI#1XX "H0H0 #XX1#K#X1XX%eS*P d %d99999999RSH0H0P,4,,,,,,,,9,9,+  5+  5(11#(X