Critical Accounting Estimates and Policies Goodwill and Other Indefinite-Lived Intangible Assets. Pension Plans and Other Postretirement Benefit Plans.  The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that in certain circumstances affect amounts reported in the accompanying consolidated financial statements. In preparing these financial state- ments, management has made its best estimates and judgments of certain amounts included in the financial statements, giving due consideration to materiality. The Company does not believe there is a great likelihood that materially different amounts would be reported under different conditions or using different assumptions related to the accounting policies described below. However, application of these accounting policies involves the exercise of judgment and use of assump- tions as to future uncertainties and, as a result, actual results could differ from these estimates. The annual evaluation of goodwill and other indefinite- lived intangible assets requires the use of estimates about future operating results for each reporting unit to determine their estimated fair value. Changes in fore- casted operations can materially affect these estimates. Additionally, other changes in the estimates and assumptions, including the discount rate and expected long-term growth rate, which drive the valuation tech- niques employed to estimate the fair value of goodwill and other indefinite-lived intangible assets could change and, therefore, impact the assessments of impairment in the future. Effective May 1, 2002, the Company adopted Statement of Financial Accounting Standards No. 142,  Goodwill and Other Intangible Assets (SFAS 142). In accordance with SFAS 142, goodwill and indefinite-lived intangible assets are no longer amortized but are reviewed at least annu- ally for impairment. As required by SFAS 142, manage- ment performed transitional impairment testing during the second quarter of 2003, and annual impairment test- ing of goodwill and indefinite-lived intangible assets during the fourth quarter of 2003. These tests confirmed that the fair value of the Company’s reporting units exceeds their carrying values, and that no impairment loss needed to be recognized for goodwill upon the adop- tion of SFAS 142.  To determine the Company’s ultimate obligation under its defined benefit pension plans and other postretire- ment benefit plans, management must estimate the future cost of benefits and attribute that cost to the time period during which each covered employee works. To record the related net assets and obligations of such ben- efit plans, management uses assumptions related to inflation, investment returns, mortality, employee turnover, rate of compensation increases, medical costs, and discount rates. Management, along with third-party actuaries, reviews all of these assumptions on an ongo- ing basis to ensure that the most reasonable information available is being considered. For 2004 expense recogni- tion, the Company will use a discount rate of 6.25 percent, an expected rate of return on plan assets of 8.75 percent, and a rate of compensation increase of 4.50 percent. Use of these assumptions will result in a higher calculated pension expense. Accrued Expenses. Management estimates certain mate- rial expenses in an effort to record those expenses in the period incurred. The most material accrued estimates Impairment of Long-Lived Assets. Historically, long-lived assets have been reviewed for impairment whenever events or changes in circumstances indicate that the car- rying amount of the asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to future net cash flows estimated to be generated by such assets. If such assets are considered to be impaired, the impairment to be recognized is the amount by which the carrying amount of the assets exceeds the fair value of the assets. However, determining fair value is subject to estimates of both cash flows and interest rates and dif- ferent estimates could yield different results. There are no events or changes in circumstances of which man- agement is aware indicating that the carrying value of the Company’s long-lived assets may not be recoverable, with the exception of planned restructuring activities noted under Restructuring. Accrued Marketing and Merchandising. In order to sup- port the Company’s products, various marketing pro- grams are offered to customers, which reimburse them for a portion, or all of their promotional activities related to the Company’s products. The Company regularly reviews and revises, when it deems necessary, estimates of costs to the Company for these marketing and mer- chandising programs based on estimates of what has been incurred by customers. Actual costs incurred by the Company may differ significantly if factors such as the level and success of the customers’ programs or other conditions differ from expectations. Such differences did not occur during 2003. 15