[' ', 'Financial', 'Review', 'and', 'Analysis', 'Results', 'of', 'Operations', '1983', 'compared', 'to', '1982', 'Net', 'sales', 'of', '$7,093,392,000,', 'a', 'record,', 'in-', 'creased', '$588,431,000,', 'or', '9%.', 'Tabacco', 'prod-', 'ucts', 'were', 'up', '$220,452,000,', 'or', '5%.', 'Domestic', 'tobacco', 'set', 'a', 'record', 'as', 'sales', 'increased', '$221,268,000,', 'or', '18%,', 'reflecting', 'higher', 'selling', 'prices,', 'a', 'large', 'portion', 'of', 'which', 'resultad', 'from', 'the', 'doubling', 'on', 'January', '1,', '1983,', 'of', 'the', 'ciga-', 'rette', 'excise', 'tax', 'rate,', 'partly', 'offsel', 'by', 'effects', 'of', 'lower', 'volume.', 'International', 'tobacco', 'declined', 'slightly', 'as', 'Gallaher’s', 'record', 'sterling', 'sales', 'fram', 'volume', 'increases', 'and', 'higher', 'prices,', 'a', 'large', 'portion', 'of', 'which', 'resulted', 'from', 'excise', 'tax', 'increases', 'in', 'the', 'U.K.,', 'were', 'offset', 'by', 'effects', 'of', 'transtation', 'at', 'substantially', 'lower', 'foreign', 'ex-', 'change', 'rates.', 'Distilled', 'beverages', 'and', 'Food', 'products', '(excluding', 'Duffy-Mott,', 'which', 'was', 'sold', 'in', 'March', '1982)', 'were', 'up', '$13,926,000', 'and', '$36,122,000,', 'respectively,', 'on', 'higher', 'prices', 'and', 'volume', 'increases', 'reflecting,', 'in', 'part,', 'bene-', 'fits', 'from', 'introduction', 'of', 'new', 'products.', 'The', 'increase', 'of', '$288,845,000', 'in', 'Hardware', 'and', 'security', 'primarily', 'reflects', 'inclusion', 'of', 'Pinkertons,', 'Inc.,', 'acquired', 'in', 'January', '1983.', 'Office', 'products', 'increased', '$5,755,000,', 'or', '2%.', 'The', 'Other', 'segment', 'was', 'up', '$50,054,000.', 'or', '4%.', 'Domestic', 'businesses', 'were', 'up', '$37032,000,', 'principally', 'Golf', 'products', 'and', 'Personal', 'care', 'products,', 'on', 'gains', 'from', 'higher', 'prices', 'and', 'volume', 'increases', 'reflecting,', 'in', 'part,', 'benefits', 'from', 'introduction', 'of', 'new', 'products', 'Despite', 'translation', 'at', 'lower', 'foreign', 'exchange', 'rates.', 'foreign', 'businesses', 'were', 'up', '$13,022,000', 'on', 'higher', 'Opticat', 'goods', 'and', 'services', 'reflect-', 'ing', 'retrospective', 'sight', 'test', 'fees', 'received', 'from', 'the', 'U.K.', 'government', 'and', 'an', 'acquisition', 'made', 'in', 'the', 'second', 'quarter', 'of', '1983.', 'Operating', 'income', 'of', '$851,198,000,', 'a', 'record,', 'was', 'up', '$69,358,000,', 'or', '9%.', 'Tobacco', 'prod-', 'ucts', 'gained', '$29,550,000,', 'largely', 'on', 'record', 'results', 'by', 'Domestic', 'tobacco,', 'while', 'Internation-', 'al’s', 'record', 'results', 'in', 'sterling,', 'up', '21%,', 'trans-', 'tated', 'into', 'only', 'a', '3%', 'increase', 'in', 'dollars', 'due', 'to', 'translation', 'at', 'lower', 'foreign', 'exchange', 'rates.', 'in-', 'creases', 'were', 'posted', 'in', 'Distilled', 'beverages', 'and', 'Food', 'products.', 'Hardware', 'and', 'security', 'was', 'up', '$17,148,000,', 'principally', 'from', 'the', 'acqui-', 'sition', 'of', 'Pinkerton’s.', 'Office', 'products', 'increased', '$5,875,000.', 'The', 'Other', 'segment', 'was', 'up', '$9,194,000,', 'mainly', 'in', 'Optical', 'goods', 'and', 'ser-', 'vices', 'in', 'our', 'foreign', 'businesses.', 'The', 'equity', 'in', 'the', 'pretax', 'earnings', 'of', 'Franklin', 'increased', '$2,405,000,', 'on', 'record', 'premium', 'and', 'in-', 'vestment', 'income.', 'Interest', 'expense', 'was', 'down', '$19,514,000,', 'or', '16%,', 'principally', 'due', 'to', 'a', 'decline', 'in', 'interest', 'rates.', 'Change', 'in', '“Other', '(income)', 'expenses,', 'net”', 'reflects', 'unfavorable', 'comparison', 'to', '1982', 'gains', 'on', 'the', 'sale', 'of', 'Duffy-Mott', 'and', 'early', ' ', ' ', 'Sales*', 'Un', 'mitions)', ' ', '$7,200', ' ', ' ', ' ', ' ', ' ', ' ', '  ', ' ', '6,300', ' ', '5.400', ' ', '4.800', ' ', '7h', '75', '76', '+77', '+78', '79', '80', '6:', '62', '83', ' ', '28', 'Nontobacco', 'ternational', 'tabacca', 'SMM', 'Domestic', 'toacco', '*Frankin', 'Lite', 'insurance', 'Company', 'revenuesarenot', 'mcluded', 'as', 'Franklinis', 'accounted', 'lor', 'by', 'the', 'equity', 'method', ' ', 'Operating', 'income', '(ammitions)', '  ', '  ', '  ', 'sego7', ' ', '770"', ' ', '  ', '     ', '0', '74°75', '76', '77', 'wea', 'Nontobacco', 'mB', 'International', 'tobacco', 'Gum', 'Domestic', 'tobacco', ' ', ' ']