2004 ANNUAL REPORT – PAGE 19  SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.  (Dollar and Share Amounts in Thousands except Per Share Information and as Otherwise Noted)  Consolidated Statements of Earnings 2004 2004 2003 2002 Net sales  $  1,238,492 994,928 905,438  Cost of sales  614,159 505,861 456,962  Gross profit  624,333 489,067 448,476  Operating and administrative expenses  416,524 353,613 334,875  Loss on sale of property and equipment  652 317 304  Gain on sale of DIY Business  — —  (5,934)  Operating income  207,157 135,137 119,231  Interest income  1,179 1,199 1,976  Earnings before income taxes and  extraordinary gain  208,336 136,336 121,207  Income tax expense  77,347 52,216 46,381  Net earnings before extraordinary gain  130,989 84,120 74,826  Extraordinary gain on DIY Business acquisition,  net of tax  — — 716  Net earnings  $  130,989 84,120 75,542  Basic earnings per share before extraordinary  gain  $  1.73 1.11 .99  Diluted earnings per share before extraordinary  gain  $  1.72 1.11  .99  Basic extraordinary gain per share, net of tax  — — .01  Diluted extraordinary gain per share, net of tax  — — .01  Basic earnings per share  $  1.73 1.11 1.00  Diluted earnings per share  $  1.72 1.11  1.00  Basic-weighted average shares outstanding  75,877 75,877 75,877  Diluted-weighted average shares outstanding  75,986 75,892 75,877 