Estate of Richard R. Simplot - Page 10




                                       - 10 -                                         

          commodities trading group, and two bonded grain elevators.  For the         
          9 months ended May 31, 1993, DPG contributed $145 million or                
          approximately 11 percent of J.R. Simplot Co.'s gross revenues.              
               DPG is divided into two types of operations through WSI and            
          Simplot Transportation.  WSI produces and markets a variety of              
          agribusiness products (including livestock feeds, nutritional               
          supplements, livestock health products, and livestock handling              
          equipment). Simplot Transportation provides companywide                     
          transportation management (including the operation of approximately         
          100 to 150 bulk trailers, more than 135 owned over-the-road trucks,         
          and 750 owned or leased rail cars).  A small amount of revenue is           
          generated from transportation for third parties.                            
               During the 9-month period ended May 31, 1993, DPG had a loss           
          of $0.9 million on revenue of $145 million.                                 
               4.  Minerals and Chemical Group                                        
               MCG is a major manufacturer and distributor of phosphate               
          fertilizers and agricultural chemicals in the Western United States         
          and in Canada.  It was formed in 1944 after a manufacturing plant           
          west of Pocatello, Idaho, was constructed to supply J.R. Simplot            
          Co. with the fertilizers it needed to nourish thousands of acres of         
          potatoes.  MCG sells the fertilizers primarily to farmers west of           
          the Mississippi.                                                            
               MCG has consistently been J.R. Simplot Co.'s most profitable           
          segment (accounting for 31 percent of revenue for the period ended          
          May 31, 1993). At the time of decedent's death, it had                      
          approximately 40 to 50 percent of the market.  Despite the fact             

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011