Management's Discussion and Analysis of Financial Condition and Results of Operations

(Continued)

Discussion and Analysis Operating Results by Business Segment Beer Operating Results

		Net Revenues							Operating Companies Income
	(in millions)		2002				2001			2002			2001
	Beer		$2,641				$4,791			$276			$481

On July 9, 2002, Miller merged into SAB to form SABMiller. The transaction, which is discussed more fully in Note 3 to the consolidated financial statements, resulted in a pre-tax gain of $2.6 billion, or $1.7 billion after-tax.  Beginning with the third quarter of 2002, ALG ceased consolidating the operating results and balance sheet of Miller and began to account for its ownership interest in SABMiller under the equity method. The decline in 2002 net revenues and operating companies income from the 2001 levels reflects the exclusion of Miller’s operating results during the second half of 2002.