(FORTUNE Magazine) – 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, 2005. All figures are for the year ended Dec. 31, 2004, 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 2003 profits to 2004 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 17, 2005. 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 1994 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 2004 of stock owned at the end of 1994, 1999, and 2003, 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 2003 do not include companies that lost money in both 2003 and 2004, because no meaningful percentage changes can be calculated in such cases.

CREDITS

This FORTUNE 500 Directory was prepared under the direction of senior list editor L. Michael Cacace and senior reporter Richard K. Tucksmith. Income statement and balance sheet data were reviewed and verified against published earnings releases, 10-K filings, and annual reports by reporter Douglas G. Elam and accounting specialists George Kazantzis, Rhona Altschuler, and Kathleen Lyons. Market specialist Kathleen Smyth used the same sources to check earnings per share data. In addition, she used data provided by SunGard Market Data Services and FORTUNE index administrator Arun Singhal to calculate total returns and market capitalization. Database administrator Larry Shine provided technical support. The data verification process was aided by information provided by A.M. Best Co. on mutual insurance companies; SNL Securities on commercial banks, savings banks, and real estate investment trusts; and Thomson Corp. and Global Securities Information Inc. on all companies filing 10-Ks.

FOOTNOTES

N.A. Not available

* Reflects an extraordinary charge of at least 10%.

Excise taxes have been deducted.

¶ Includes revenues of discontinued operations of at least 10%.

1-9

Figures are for fiscal year ended Jan. 31, 2005.

Figures are for fiscal year ended Oct. 31, 2004.

Figures are for fiscal year ended March 31, 2004.

Figures are for fiscal year ended June 30, 2004.

Acquired FleetBoston Financial (2003 rank: 140), March 31, 2004.

Acquired Bank One Corp. (2003 rank: 88), June 30, 2004.

Figure as of Oct. 31, 2004.

Figures are for fiscal year ended Sept. 30, 2004.

Figures are for fiscal year ended Aug. 31, 2004.

10-19

Cingular Wireless, a joint venture of SBC and BellSouth, acquired AT&T Wireless Services (2003 rank: 120), Oct. 26, 2004.

Figures are for fiscal year ended Nov. 30, 2004.

Acquired Oxford Health Plans (2003 rank: 332), July 29, 2004.

Acquired by Kmart Holding (2004 rank: 113), renamed Sears Holdings, March 24, 2005.

Reflects charge from cumulative effect of change in accounting of at least 10%.

All data are preliminary and subject to change due to an investigation by the company's audit committee into the company's previous accounting practices. Company plans to restate data for 2001 through 2004 by June 30, 2005.

Acquired SouthTrust (2003 rank: 513), Oct. 29, 2004.

Includes revenues from discontinued operations of Blockbuster, spun off Oct. 13, 2004.

Acquired AdvancePCS (2003 rank: 143), March 24, 2004.

Figures are for fiscal year ended Feb. 29, 2004.

20-29

Figures are for fiscal year ended May 31, 2004.

Changed name from St. Paul Cos. after acquiring Travelers Property Casualty (2003 rank: 135), April 1, 2004.

Figures are for fiscal year ended July 31, 2004.

Changed name from Anthem after acquiring WellPoint Health Networks (2003 rank: 93), Nov. 30, 2004.

Formerly an Australian corporation; reincorporated as a U.S. corporation, Nov. 12, 2004.

Reflects credit from cumulative effect of change in accounting of at least 10%.

Changed name to Sears Holdings, located in Hoffman Estates, Ill., after acquiring Sears Roebuck (2004 rank: 45), March 24, 2005.

Changed name from Boise Cascade, Nov. 1, 2004.

Spun off Overnight (2004 rank: 873), Nov. 5, 2003.

Changed name from Tesoro Petroleum, Nov. 11, 2004.

30-39

Figures are for four quarters ended Oct. 31, 2004. Employees are as of Jan. 31, 2004.

A cooperative.

Became a bank holding company, July 6, 2004.

Acquired Provident Financial Group (2003 rank: 824), July 1, 2004.

Figures do not include PeopleSoft (2003 rank: 642), acquired Jan. 7, 2005.

Figures are for fiscal year ended April 30, 2004.

Includes revenues from discontinued operations for nine months ended Sept. 30, 2004.

Changed name from Reliant Resources, April 26, 2004.

A partnership.

Acquired National Commerce Financial Corp. (2003 rank: 846), Sept. 30, 2004.

40-50

Figures are for four quarters ended Oct. 31, 2004.

Changed name from R.J. Reynolds Tobacco Holdings, July 30, 2004.

Changed name from InterActiveCorp, July 14, 2004.

Figures are for four quarters ended Sept. 30, 2004. Employee figure is as of Dec. 31, 2003.

Figure as of Sept. 30, 2004.

Acquired Millennium Chemicals (2003 rank: 789), Nov. 30, 2004.

All data are preliminary and subject to change due to an internal review by the company's audit committee into the company's intercompany transactions and financial reporting controls.

Acquired Union Planters Corp. (2003 rank: 619), July 1, 2004.

Changed name from Adolph Coors, Feb. 9, 2005.

Figure is for four quarters ended Sept. 30, 2004.

A real estate investment trust.