Estate of Richard R. Simplot - Page 18




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               While J.R. Simplot was on the board of directors, the other            
          board members usually adhered to his business and policy decisions.         
          Although J.R. Simplot's four children had independent views                 
          regarding how the family business should be run, there was                  
          unanimity in their philosophy to maintain J.R. Simplot Co. as a             
          private, family-owned company.                                              
          F.  Contingent Environmental Liabilities                                    
               As of the valuation date, J.R. Simplot Co. had potential               
          environmental liabilities estimated to be at a maximum of $95               
          million.                                                                    
          G.  Financial History                                                       
               The consolidated balance sheets for J.R. Simplot Co. and               
          subsidiaries for their fiscal years ended August 31, 1991, 1992,            
          and 1993, reveal:                                                           
                            J.R. SIMPLOT COMPANY & SUBSIDIARIES                       
                               CONSOLIDATED BALANCE SHEETS                            
                               AUG. 31, 1993, 1992 and 1991                           
                                     (in thousands)                                   
          ASSETS                                  1993           1992           1991  
          CURRENT ASSETS                                                              
          Cash and equivalents                $20,920        $22,366        $15,457   
          Notes & accounts receivable,                                                
          less allowances                    206,398        187,935        164,285    
          Inventories                         197,022        170,449        233,164   
          Manufacturing supplies               23,244         22,591         23,268   
          Prepaid expenses & other assets      15,739         15,487         16,086   
          Total current assets                463,323        418,828        452,260   
          INVESTMENTS & OTHER ASSETS                                                  
          Amounts due from affiliates          32,810         36,488         10,000   
          Investments                         128,543        110,718        102,941   
          Other assets                         38,624         27,554         31,712   
          PROPERTY & EQUIPMENT, net              559,310        523,908        493,988
          1,222,610      1,117,496      1,090,901                                     



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