TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF arnings, Comprehensive Earnings and Retained Earnings (in thousands except per share data For the year ended December 31 2010 $528,369 $517,149 $495,592 2009 Net product sales Rental and royalty revenue Total revenue Product cost of goods sold Rental and royalty cost Total costs Product gross margin Rental and royalty gross margin Total gross margin Selling, marketing and administrative expenses Impairment charges Earnings from operations Other income (expense), net Earnings before income taxes Provision for income taxes 4,299 532.50549.34319.775 521,448 349,334 852 163,144 167,815 175,817 108,276 106,316 103,755 64.710 16,974 20,0059,892 343.938- 55,06 Net earnings 353 137 Net earnings Other comprehensive earnings (loss) Comprehensive earnings $43,938 $53,063 $53,157 2,845 35,198$54,246 $56,002 1,183 $35,198 Retained earnings at beginning of year. Net earnings Cash dividends Stock dividends Retained earnings at end of year $135,866 $147,687 $144,949 43,938 53,063 53,157 17,790 18,360 47,175 18,078 46,806 $114,269 $135,866 $147,687 $0.89 57,892 58.685 59,425 Earnings per share $0.76 $0.90 Average Common and Class B Common shares outstanding (The accompanying notes are an integral part of these statements.)