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as the range of potential losses. A determination of the reserves required, if any, is made after careful analysis
by management and internal and, if necessary, external counsel. The required reserves may change in the
future due to related developments or a change in circumstances. Changes to reserves could increase or
decrease earnings in the period the changes are eÅective.
Recently Issued Accounting Pronouncements
In June 2001, the FASB issued Statement of Financial Accounting Standards No. 143 (""SFAS 143''),
""Accounting for Asset Retirement Obligations.'' SFAS No. 143 became eÅective for the Company beginning
on June 29, 2002 (the Ñrst day of Ñscal 2003) and provides new criteria for the measurement of a liability for
an asset retirement obligation and the associated asset retirement cost. The adoption of SFAS 143 will not
have a material eÅect on the Company's consolidated Ñnancial statements.
In August 2001, the FASB issued Statement of Financial Accounting Standards No. 144 (""SFAS 144''),
""Accounting for the Impairment or Disposal of Long-Lived Assets.'' SFAS No. 144 became eÅective for the
Company beginning on June 29, 2002. SFAS No. 144 amends and supersedes SFAS No. 121 (""SFAS 121''),
""Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of.''
However, SFAS 144 retains the fundamental provisions of SFAS No. 121 for (a) recognition and
measurement of the impairment of long-lived assets to be held and used and (b) measurement of long-lived
assets to be disposed of by sale. SFAS 144 also amends and supercedes previous guidance on reporting for
discontinued operations. The adoption of SFAS 144 will not have a material eÅect on the Company's
consolidated Ñnancial statements.
In June 2002, the FASB issued Statement of Financial Accounting Standards No. 146 (""SFAS 146''),
""Accounting for Costs Associated with Exit or Disposal Activities.'' SFAS 146 supercedes former guidance
addressing the Ñnancial accounting and reporting for costs associated with exit or disposal activities.
SFAS 146 requires that a liability for a cost associated with an exit or disposal activity be recognized and
measured when the liability is incurred (as opposed to upon the date of an entity's commitment to a plan as
provided for under previous guidance). The provisions of SFAS 146 will be eÅective for any exit or disposal
activities that are initiated by the Company after December 31, 2002.
Acquisitions and Investments
For an overview of the Company's acquisitions over the past three years, see Item 1, ""Business,'' and see
Note 2 to the consolidated Ñnancial statements appearing in Item 14 of this Report. Management currently
does not anticipate making any material acquisitions in the near term.
The acquisitions accounted for as purchases, certain of which are material to the Company, have an
impact on the comparability of the Company's period-to-period results discussed in ""Results of Operations'' in
this MD&A. See Note 2 to the consolidated Ñnancial statements for further discussion of the impact of certain
material acquisitions on the Ñnancial results of the Company.
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