CAPITAL EXPENDITURES AND RESEARCH AND DEVELOPMENT EXPENSES
The responding firms’ aggregate data on capital expenditures and research and development (“R&D”) expenses are presented in table VI-5. All producers reported capital expenditures during the period, and ***7 ***8 ***9 ***10 spent substantial amounts on capital expenditures. All *** producers,
***, reported R&D expenses. Capital expenditures, by firm, are presented in table VI-6. Capital expenditures increased from 2003 to 2004 and then decreased substantially from 2004 to 2005, then increased again from interim 2005 to interim 2006. Overall, total R&D expenses remained at relatively the same level except for the period between 2004 and 2005.
Table VI-5 Coated free sheet paper: Capital expenditures and R&D expenses by U.S. producers, fiscal years 2003-05, January-September 2005, and January-September 2006
All companies reported capital expenditures. All producers except *** reported R&D expenses.
Source: Compiled from data submitted in response to Commission questionnaires.
Table VI-6 Coated free sheet paper: Capital expenditures by U.S. producers, by firms, fiscal years 2003-05, January-September 2005, and January-September 2006
ASSETS AND RETURN ON INVESTMENT
U.S. producers were requested to provide data on their assets used in the production and sales of CFS paper during the period for which data were collected to assess their return on investment (“ROI”). Although ROI can be computed in different ways, a commonly used method is income earned during the period divided by the total assets utilized for the operations. Therefore, staff calculated ROI as operating income divided by total assets used in the production and sales of CFS paper. Data on the U.S. producers’ total assets and their ROI are presented in table VI-7. 11