statement of sources and applications of funds utah construction s mining co and subsidiaries notes to consolidated financial statements october 31 1969 years ended october 31 ,..$ 49,738,000 143,663,000 193,401,000 . . .$ 26,958,000 , . . 32,600,000 . . . 133,843,000 193,401 000 5 39,485,000 141,397,000 180,862,000 29~31 1 000 35,111,000 116,460,000 led october i and cypru st confirme stockholders equity shown above is ost of 84,671,864 audited was 21,345,000 and ncluded in earned surplus included in liability for deferred incor payable upon distribution of earnir . . 5,210,297 62,918,709 . . 15,887,837 78,806,546 md affiliates a 49,409,297 4,551,864 53,961,161 15,808,890 69,770,05 panying consolidated financial statements 2 discontinued operations the sale of substantially all of tl assets and business to a wholly owned subsidiary of the fl l fluor was consummated on july 25 1969 the effective d s of the s the dredging a liitd ership with pany recorded a net profit 818,809 this net profit from as an extraordinary item not included in the s business interests in haas and haynie corpor haas and hayni corporation nonsponsore gravel business which was discontinued subsequent to april 30 1969 and is in the process of liquidation and equipment and storage yards at south san francisco california and murray utah operations which were sold to fluor discontinued sand and gravel business and nonsponsored heavy construction joint ventures which are in process of completion are shown as discontinued operations . in accordance with stand income statement with the net earnings figure being the only amount shown details of the income from discontinued operations are as follows 1 s34,890,340 994,727 574,267 36,459,334 revenue fro expenses operating costs a general and adm interest 35,952,31 income from discontinued operations $ 507,020 proportionate share oi gross revenues approximately 3 000,000 for 1969 and 14,000,000 for 1968 3 long-term liabilities long-term liabilities at october 31 1969 and 1968 tracts payable on land purchases are secured only by the related land and do convertible into common stock at a price of 32.17 per share subject to adjust ment under certain conditions the company will be required to make sinking fund payments beginning november 1 1978 in an annual amount equal to 5 of such debentures outstanding at november 1 , 1 977 such debentures may be redeemed prior to november 1 1987 by payment of a premium and thereafter at the face amount at october 31 1969 775,621 shares of stock were reserved for issuance upon conversion of these debentures during the year then ended 1 487 shares of stock were issued upon conversion the 53/4 subordinated guaranteed debentures of utah international finance 4 surplus restriction the co institutions contain restrictive 1 pany has adequate consolidate include limitations on the pay redemption of outstanding cap dated earned surplus in the am at october 31 1969 5 provision for income taxes is derived from dividends ear depletion allowance in excess of cost deple states internal revenue code and profit frc which are taxed at rates lower than those af ; the practice of deferring thi s long-term loan agreements with lending ons on certain payments unless the com ned surplus as defined such provisions if cash dividends and on the purchase or ock and convertible debentures consoli f 29,919,000 was free of such restrictions redit had n i portion of the company's income ining operations with a resulting stion as permitted by the united pplicable to ordinary income the ortizing it over the average lives of the respective assets the investment significant effect upon the statement of consolidated income for income taxes are classified in the statement of consolidated ows 1969 1968 r income taxes 6,134,000 5,280,575 7,560,694 6,137,000 amounts included in the provisions for income taxes which will not be due and payable until future periods are 2,439,000 for 1969 and s3,460,000 for 1968 including 1,116,000 and 1,065,000 for taxes payable upon distribution of undis tributed earnings of affiliates 6 equipment and facilities dredging and mining equipment and facilities are depreciated depleted or amortized over their estimated useful lives by use of the unit-of-production straight-line or declining-baiance methods as appli cable where amounts deducted for tax purposes exceed those recorded for book purposes appropriate provision has been made in the accounts for the income taxes thereby deferred 7 revenue the company reports income from its dredging activities includ ing those which are performed by joint ventures and the limited partnership 1 the s e fro oint v i per ind de jntage ilopment a mpletio reported of tl prior year were recorded in 1969 or 19e 8 stock split on december 13 196 stock split effected in the form of a st 1969 to holders of record on decemb visions r 31 1968 i split declared a three-for-one stributed on february 14 iordance with the pro id the of the 5 convertible subordinated debentures from 96.50 p 32.17 per share and the conversion price of the 5 subordinated guaran teed debentures from 1 1 1 00 per share to 37,00 per share 9 earnings per share per share amounts have been calculated based on the weighted average on a monthly basis of shares outstanding during each year and give effect retroactively to the stock split referred to in note 8 gives effect to the dilution which would have resulted from conversion of a the 5 convertible subordinated debentures into 775,621 shares and b the 5v subordinated guaranteed debentures into 807,866 shares for purposes of this computation reported earnings were increased by 1,250,000 in 1969 and 603,000 in 1968 the amounts of the related interest on such debentures net of applicable income taxes if such conversions had been completed at october 31 1969 long-term liabilities of 54,840,000 and deferred debenture issue expense of 1,308,387 would have been eliminated and stockholders equity would have increased from 129,555,149 to 183,086,762 from 10.03 per share to 12.63 per share 10 contingent liabilities and commitments contingent liabilities include the pany and joint venture contracts the company has started the development or expansion of mining proiects which in the aggregate will require an investment of approximately 227,000 000 of which amount 44,000,000 had been expended as of october 31 1969 wholly owned subsidiaries have obtained commitments permitting borrow ings of approximately 59,000,000 from lending institutions without the united states which borrowings if made would be guaranteed by the parent com ings from lending institutions together with current working capital and cash heretofore approved the company for the taxable years 1957 and 1958 the deficiencies are being contested by the affiliate and a peruvian civil court has ruled in favor of the affiliate which decision has been appealed by the government authorities the affiliate has advised the company that it considers it unlikely that the civil ing tax liability of the affiliate in the company's opinion would not have a material effect on the accom panying financial statements and no provision therefore has been made i the p ent c ly at a price of 37.00 per share subject ti ;. the debentures may be redeemed prio m beginning in 1973 at october 31 1969 the a inder tf nt v s fro if the lease the comp ong-term lease agreement for equipment requiring payments tely s420.000 annually for a remaining period of four years led through 1966 and tax defic i been 31