The Donaldson Corporation is a food processor, producing canned vegetables that are sold to food service companies. The sales and costs of goods sold of the Donaldson Corporation are seasonal, reflecting the seasonality of the primary product line, processed vegetables.

Donaldson’s capital structure consists of 40% debt and 60% equity. There are 50,100 common shares outstanding as of the end of the most recent fiscal year. The common stock is traded on a national securities market, with a current price (that is, at the end of 2003) of $35 per share.