Management’s Discussion and Analysis of Financial Condition  and Results of Operations (Continued) If the Company had charged compensation cost of options granted prior to January 1, 2002 to earnings, by using  the prospective method under SFAS No. 148, net income (loss) would have been reduced to the pro forma amounts  indicated below  (in thousands, except per share amounts) : Year Ended December 31, 2003 2002 2001 Net income (loss), as reported $19,423 $(14,598) $8,934 Add: Stock-based employee compensation expense for stock options  included in reported net income (loss), net of related tax effects 122 6 — Deduct: Total stock-based employee compensation expense  for stock options determined under fair value method for  all stock option awards, net of related tax effects (409) (392) (415) Pro forma net income (loss) $19,136 $(14,984) $8,519 Net income (loss) per common share: Basic—as reported $ 1.92 $ (1.49) $ .92 Basic—pro forma $ 1.90 $ (1.53) $ .88 Diluted—as reported $ 1.88 $ (1.46) $ .92 Diluted—pro forma $ 1.86 $ (1.50) $ .88 The Company makes a number of other estimates and judgments in the ordinary course of business related to product returns, doubtful accounts, warranty obligations, lease terminations and asset retirement obligations, post retirement benefits, and contingencies and litigation. Establishing reserves for these matters requires management’s estimate and judgment with regard to risk and ultimate liability or realization. As a result, these estimates are based on management’s current understanding of the underlying facts and circumstances and may also be developed in conjunction with outside advisors, as appropriate. Because of uncertainties related to the ultimate outcome of these issues or the possibilities  of changes in the underlying facts and circumstances, additional charges related to these issues could be required in  the future. The prices of raw materials, consisting primarily of steel, vinyl, aluminum, glass and ABS resin, are influenced by demand and other factors specific to these commodities rather than being directly affected by inflationary pressures. Prices of certain commodities have historically been volatile. The Company experienced modest increases in its labor costs in 2003 and 2002 related to inflation. Other Estimates INFLATION 18