FORTUNE 500 Notes
By

(FORTUNE Magazine) – [For the complete FORTUNE 500 list please visit www.fortune500.com]

DEFINITIONS AND EXPLANATIONS

REVENUES

All companies on the list must publish financial data and must report part or all of their figures to a government agency. Private companies and cooperatives that produce a 10-K are, therefore, included; subsidiaries of foreign companies incorporated in the U.S. are excluded. Revenues are as reported, including revenues from discontinued operations when they are published on a consolidated basis (except when the divested company's revenues equal 50% or more of the surviving company's revenues on an annualized basis). The revenues for commercial banks and savings institutions are interest and noninterest revenues. Revenues for insurance companies include premium and annuity income, investment income, and capital gains or losses but exclude deposits. Revenues figures for all companies include consolidated subsidiaries and exclude excise taxes. Data shown are for the fiscal year ended on or before Jan. 31, 2004. All figures are for the year ended Dec. 31, 2003, unless otherwise noted.

PROFITS

Profits are shown after taxes, after extraordinary credits or charges if any appear on the income statement, and after cumulative effects of accounting changes. Figures in parentheses indicate a loss. Profit declines of more than 100% reflect swings from 2002 profits to 2003 losses. Profits for real estate investment trusts, partnerships, and cooperatives are reported but are not comparable with those of the other companies on the list because they are not taxed on a comparable basis. Profits for mutual insurance companies are based on statutory accounting.

ASSETS

Assets are company's year-end total.

STOCKHOLDERS' EQUITY

Stockholders' equity is the sum of all capital stock, paid-in capital, and retained earnings at the company's year-end. Redeemable preferred stock whose redemption is either mandatory or outside the control of the company is excluded. Dividends paid on such stock have been subtracted from the profit figures used in calculating the return on equity.

MARKET VALUE

The market-value figure shown was arrived at by multiplying the number of common shares outstanding by the price per common share as of March 1, 2004. If companies have more than one class of shares outstanding and an equivalent share number is not available, the respective market values for each share class are calculated and combined.

EARNINGS PER SHARE

The figure shown for each company is diluted earnings per share that appears on the income statement. The reporting of diluted EPS started on Dec. 15, 1997, when the Financial Accounting Standards Board began to implement standard 128, requiring companies to change the way they report earnings per share. The 1993 figure used for the ten-year earnings-growth calculation is primary earnings per share. Per share earnings are adjusted for stock splits and stock dividends. They are not restated for mergers, acquisitions, or accounting changes (other than FASB 128). Though earnings-per-share numbers are not marked by footnotes, if a company's profits are footnoted it can be assumed that earnings per share are affected as well. The five-year and ten-year earnings-growth rates are the annual rates, compounded.

TOTAL RETURN TO INVESTORS

Total return to investors includes both price appreciation and dividend yield to an investor in the company's stock. The figures shown assume sales at the end of 2003 of stock owned at the end of 1993, 1998, and 2002, respectively. It has been assumed that any proceeds from cash dividends and stock received in spinoffs were reinvested when they were paid. Returns are adjusted for stock splits, stock dividends, recapitalizations, and corporate reorganizations as they occur; however, no effort has been made to reflect the cost of brokerage commissions or of taxes. Results are not listed if shares are not publicly traded or are traded on a limited basis. If companies have more than one class of shares outstanding, only the most widely held and actively traded class has been considered. Total return percentages shown are the returns received by the hypothetical investor described above. The five-year and ten-year returns are the annual rates, compounded.

MEDIANS

The median figures in the tables refer only to results of companies in the Fortune 500 (or 1,000 for industry categories), and no attempt has been made to calculate them in groups of fewer than four companies. The medians for profit changes from 2002 do not include companies that lost money in both 2002 and 2003, because no meaningful percentage changes can be calculated in such cases.

CREDITS

This 500 directory was prepared under the direction of senior list editor L. Michael Cacace and senior reporter Richard K. Tucksmith. Most of the income-statement and balance-sheet data were reviewed and verified by reporter Douglas Elam and accounting specialists George Kazantzis and Gregory McCarthy. Kathleen Smyth reviewed and verified earnings-per-share data from information found in company press releases, 10-K filings, and annual reports. She also verified total-return and market-value data using information provided by SunGard Market Data Services and Fortune index administrator David Haselkorn. Database administrator Larry Shine provided technical support. Fortune associates Rhona Altschuler and Kathleen Lyons assisted with the data gathering and verification. Data provided by A.M. Best Co. on mutual insurance companies and SNL Securities on commercial banks, savings banks, and real estate investment trusts aided the verification process.

FOOTNOTES

N.A. Not available. * Reflects an extraordinary charge of at least 10%. ** Reflects an extraordinary credit of at least 10%. E Excise taxes have been deducted. ¶ Includes revenues from discontinued operations of at least 10%.

1-9

1 Figures are for fiscal year ended Jan. 31, 2004. 2 Includes revenues from discontinued operations of Hughes Electronics, spun off Dec. 22, 2003. 3 Reflects charge from cumulative effect of change in accounting of at least 10%. 4 Spun off Travelers Property Casualty (2003 rank: 135), Aug. 20, 2002. 5 Figures are for fiscal year ended Oct. 31, 2003. 6 Reflects credit from cumulative effect of change in accounting of at least 10%. 7 Acquired Clayton Homes (2003 rank: 1,000), Aug. 7, 2003. 8 Figures are for fiscal year ended March 31, 2003. 9 Figures are for fiscal year ended June 30, 2003.

10-19

10 Figures are for fiscal year ended Sept. 30, 2003. 11 Acquired Pharmacia (2002 rank: 106), April 16, 2003. 12 Changed name from AOL Time Warner, Oct. 16, 2003. 13 Figures are for fiscal year ended Aug. 31, 2003. 14 Figure as of Sept. 30, 2003. 15 Changed name from Dell Computer, July 21, 2003. 16 Figures are for fiscal year ended Nov. 30, 2003. 17 Spun off from Merck (2003 rank: 83), Aug. 19, 2003. 18 Figure as of Oct. 31, 2003. 19 Figures do not include Mid Atlantic Medical Services (2002 rank: 606), acquired Feb. 6, 2004.

20-29

20 Figures are for four quarters ended Oct. 31, 2003; employees are as of Jan. 31, 2003. 21 Figures are for fiscal year ended Feb. 28, 2003. 22 Figures are for fiscal year ended May 31, 2003. 23 Spun off Medco Health Solutions (2003 rank: 41), Aug. 19, 2003. 24 Acquired Cobalt (2002 rank: 802), Sept. 24, 2003. 25 Figures are for fiscal year ended July 31, 2003. 26 Excludes revenues from discontinued operations. 27 Spun off from Citigroup (2003 rank: 8), Aug. 20, 2002. 28 Figures are for four quarters ended Sept. 30, 2003; employee figure is as of Dec. 31, 2002. 29 Changed fiscal year-end from May 31.

30-39

30 Figures are for four quarters ended Sept. 30, 2003. 31 A partnership. 32 Does not include discontinued operations of Carmax Group, now Carmax Inc. (2003 rank: 221), Oct. 1, 2002. 33 Changed name from Cenex Harvest States Cooperatives, Aug. 5, 2003. 34 A cooperative. 35 Figures are for fiscal year ended April 30, 2003. 36 Separated from Circuit City Stores (2003 rank: 195), Oct. 1, 2002. 37 Spun off ExpressJet Holdings (2003 rank: 940), April 23, 2002. 38 Acquired OfficeMax (2002 rank: 346), Dec. 9, 2003. 39 Acquired Ocean Energy (2002 rank: 982), April 25, 2003.

40-49

40 Figures are for four quarters ended May 31, 2003; employee figure is as of Aug. 31, 2002. 41 Figure as of May 31, 2003. 42 Figures are for four quarters ended Oct. 31, 2003. 43 Changed name from USA Interactive, June 23, 2003. 44 Changed fiscal year-end from December; figures are for 12 months ended Aug. 31, 2003. 45 Spun off from Pharmacia (2002 rank: 106), Aug. 13, 2002. 46 Changed fiscal year-end from Sept. 30; comparisons are with year ended Sept. 30, 2002. 47 Changed name from Park Place Entertainment, Jan. 6, 2004. 48 Changed name from CDW Computer Centers, June 18, 2003. 49 Includes revenues from discontinued operations for the first nine months of 2003.

50-52

50 Changed name from Pittston, May 5, 2003. 51 A real estate investment trust. 52 Spun off from NTL Europe, now PTV (2002 rank: 403), Jan. 12, 2003.

Ups and downs

50 THAT CLIMBED

COMPANY 2003 Rank gain rank from 2002

CONSTELLATION ENERGY 203 +149 PEPCO HOLDINGS 270 +107 ENTERPRISE PRODUCTS 336 +102 DEVON ENERGY 268 +101 WILLIAMS 98 +98 BURLINGTON RESOURCES 404 +93 ERIE INSURANCE GROUP 368 +86 JABIL CIRCUIT 367 +74 ANADARKO PETROLEUM 345 +69 COMCAST 89 +68 PLAINS ALL AMER. PIPELINE 155 +66 AMAZON.COM 342 +65 BALL 351 +64 FIDELITY NATIONAL FINANCIAL 262 +64 COUNTRYWIDE FINANCIAL 146 +63 MURPHY OIL 340 +62 AMGEN 246 +59 SLM 417 +56 QUALCOMM 434 +55 UNITED STATES STEEL 209 +55 COVENTRY HEALTH CARE 386 +53 LEVEL 3 COMMUNICATIONS 429 +52 FIRST AMERICAN CORP. 300 +51 L-3 COMMUNICATIONS 348 +50 GENERAL MILLS 186 +49 CAREMARK RX 221 +46 ENERGY EAST 354 +45 NUCOR 297 +45 PACIFIC LIFE 374 +45 NORTHROP GRUMMAN 55 +44 AFFILIATED COMPUTER SVCS. 445 +43 DUKE ENERGY 75 +43 STARBUCKS 425 +40 OGE ENERGY 446 +38 OCCIDENTAL PETROLEUM 214 +38 ROUNDY'S 398 +38 AUTO-OWNERS INSURANCE 408 +37 HARLEY-DAVIDSON 355 +37 PERFORMANCE FOOD GROUP 329 +37 AMEREN 382 +36 CENTERPOINT ENERGY 201 +35 PREMCOR 234 +35 PUBLIC SVC. ENTERPRISE GRP. 176 +35 SEMPRA ENERGY 257 +34 NEXTEL COMMUNICATIONS 183 +33 PROGRESSIVE 165 +32 HALLIBURTON 122 +31 SUNOCO 123 +31 UNOCAL 285 +31 D.R. HORTON 241 +30

50 THAT STUMBLED

COMPANY 2003 Rank loss rank from 2002

CINERGY 393 -233 LUCENT TECHNOLOGIES 243 -102 GATEWAY 484 -97 CONSECO 370 -86 OM GROUP 405 -74 XCEL ENERGY 254 -74 AVAYA 401 -66 MERCK 83 -66 APPLIED MATERIALS 392 -65 AMERICAN FINANCIAL GROUP 486 -62 R.J. REYNOLDS TOBACCO 341 -60 SCHERING-PLOUGH 247 -60 COMERICA 489 -56 MIRANT 314 -55 CIT GROUP 371 -54 PETER KIEWIT SONS' 485 -53 SPARTAN STORES 496 -49 GRAYBAR ELECTRIC 448 -47 FLUOR 232 -46 REGIONS FINANCIAL 466 -46 EQUITY OFFICE PROPERTIES 493 -45 CIRCUIT CITY STORES 195 -44 TXU 177 -43 MARRIOTT INTERNATIONAL 216 -41 PG&E CORP. 179 -39 ALLMERICA FINANCIAL 494 -38 CHARLES SCHWAB 402 -38 FARMLAND INDUSTRIES 279 -36 CMS ENERGY 307 -35 MELLON FINANCIAL CORP. 385 -35 AK STEEL HOLDING 410 -34 CONAGRA FOODS 84 -34 KEYCORP 319 -34 BRINK'S 428 -33 LEVI STRAUSS 422 -33 PNC FINANCIAL SVCS. GROUP 309 -32 ENGELHARD 454 -31 IKON OFFICE SOLUTIONS 369 -30 DILLARD'S 258 -29 INTERSTATE BAKERIES 472 -29 STARWOOD HOTELS & RESORTS 441 -29 WESCO INTERNATIONAL 490 -29 CSX 259 -28 KMART HOLDING 67 -28 PEPSIAMERICAS 498 -28 LIMITED BRANDS 228 -26 PATHMARK STORES 432 -26 SERVICEMASTER 463 -26 FLEETBOSTON FINANCIAL 140 -25 HERSHEY FOODS 415 -25