1. Does USX need to be restructured at this time? How much should USX be worth if Steel and Energy are broken apart? 2. Debate the relative merits of Icahn's proposal (spin-off) vs. the company's proposal (targeted stock). For what kinds of companies is targeted stock most appropriate? Least appropriate? 3. What other options should the company consider besides targeted stock or a spin-off? 4. What specific provisions should targeted stock contain to ensure maximum value creation for shareholders? 3 I 2 2 Inventory market valuation credits 3 Selling, general & admin expenses Depreciation, depletion & amort. S Taxes other than income taxes 3 Exhibit 6 5 Exploration expenses Restructuring credit Total operating costs Sales 3 Operating costs Cost of sales I USX: Income Statements, 1988-1990 ($ millions) (cont'd) 6 Total income before income taxes 5 Less provision for U.S. and foreign income taxes Operating income Other income (loss) Interest and other financial income Interest and other financial costs Net income Dividends on preferred stock Net income applicable to common stock 1,990 14,616 10,485 -140 383 1,026 1,552 229 13,535 1,081 -21 34 -315 779 271 508 -14 494 Marathon Group 1,989 12,264 8,507 -145 378 1,029 1,400 165 11,334 930 114 129 -602 571 146 425 -41 384 1,988 9,949 6,699 -23 352 1,006 1,291 191 - 9,516 433 62 92 -499 88 35 53 -39 14 1,990 6,073 5,216 - -97 278 201 5,598 475 58 102 -198 437 127 310 -4 306 U.S. Steel Group 1,989 6,509 5,378 -23 307 207 - 5,869 640 292 93 -238 787 247 540 -17 523 1,988 6,996 5,510 -45 363 236 -50 6,014 982 147 107 -332 904 201 703 -31 672 1,990 15,671 -140 286 1,304 1,753 229 20,659 18,717 16,877 19,103 1,556 37 136 -513 1,216 398 818 -18 USX Consolidated 1,989 800 13,827 -145 355 1,336 1,607 167 17,147 1,570 406 222 -840 1,358 393 965 -58 1,988 907 12,141 -23 307 1,369 1,527 191 -50 15,462 1,415 209 199 -831 992 236 756 -70 686