23. ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED: 24. SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED): 77 In December 2003, the Financial Accounting Standards Board issued FASB Interpretation No. 46 (revised December 2003) (“FIN No. 46(R)”), “Consolidation of Variable Interest Entities—an interpretation of ARB No. 51”, which will replace FASB Interpretation No. 46 (“FIN No. 46”), “Consolidation of Variable Interest Entities,” upon its effective date. FIN No. 46(R) retains many of the basic concepts introduced in FIN No. 46; however, it also introduces a new scope exception for certain types of enti- ties that qualify as a business as defined in FIN No. 46(R) and revises the method of calculating expected losses and residual returns for determination of primary beneficiaries, including new guidance for assessing variable interests. The application of the transi- tion requirements of FIN No. 46(R) with regard to special purpose entities and existing variable interest entities did not result in any entities requiring consolidation or any additional disclosures. The Company is continuing to evaluate the impact of FIN No. 46(R) for its adoption as of May 31, 2004. However, it is not expected to have a material impact on the Company’s consolidated financial statements. In December 2003, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 132 (revised 2003) (“SFAS No. 132(R)”), “Employers’ Disclosures about Pensions and Other Postretirement Benefits—an amendment of FASB Statements No. 87, 88, and 106.” SFAS No. 132(R) supersedes Statement of Financial Accounting Standards No. 132 (“SFAS No. 132”), by revising employers’ disclosures about pension plans and other postretirement benefit plans. SFAS No. 132(R) requires additional disclosures to those in SFAS No. 132 regarding the assets, obligations, cash flows, and net periodic benefit cost of defined benefit pension plans and other defined benefit postretirement plans. SFAS No. 132(R) also amends Accounting Principles Board Opinion No. 28 (“APB Opinion No. 28”), “Interim Financial Reporting,” to require additional disclosures for interim periods. The Company has adopted certain of the annual disclosure provisions of SFAS No. 132(R), primarily those relat- ed to its U.S. postretirement plan, for the fiscal year ending February 29, 2004. The Company is required to adopt the remaining annual disclosure provisions, primarily those related to its foreign plans, for the fiscal year ending February 28, 2005. The Company is required to adopt the amendment to APB Opinion No. 28 for financial reports containing condensed financial state- ments for interim periods beginning March 1, 2004. In March 2004, the Financial Accounting Standards Board issued a proposed statement, “Share-Based Payment, an amendment of FASB Statements No. 123 and 95.” The objective of the proposed statement is to require recognition in an entity’s financial state- ments of the cost of employee services received in exchange for equity instruments issued, and liabilities incurred, to employees in share-based payment (or compensation) transactions based on the fair value of the instruments at the grant date. The proposed statement would eliminate the alternative of continuing to account for share-based payment arrangements with employees under APB No. 25 and require that the compensation cost resulting from all share-based payment transactions be recognized in an enti- ty’s financial statements. If adopted in its current form, the proposed statement would be effective for awards that are granted, modified, or settled in fiscal years beginning after December 15, 2004. Also, if adopted in its current form, the proposed statement could result in a significant charge to the Company’s Consolidated Statement of Income for the fiscal year ended February 28, 2006. A summary of selected quarterly financial information is as follows: QUARTER ENDED May 31, August 31, November 30, February 29, Fiscal 2004 2003 2003 2003 2004 Full Year (in thousands, except per share data) Net sales(1) $ 772,801 $ 911,065 $ 987,248 $ 881,315 $ 3,552,429 Gross profit(1) $ 209,085 $ 240,532 $ 282,616 $ 243,555 $ 975,788 Net income(2) $ 39,189 $ 35,564 $ 82,840 $ 62,821 $ 220,414 Earnings per common share(3): Basic $ 0.42 $ 0.35 $ 0.76 $ 0.57 $ 2.13 Diluted $ 0.41 $ 0.34 $ 0.73 $ 0.55 $ 2.06 May 31, August 31, November 30, February 28, Fiscal 2003 2002 2002 2002 2003 Full Year (in thousands, except per share data) Net sales $ 650,393 $ 689,806 $ 738,379 $ 653,034 $ 2,731,612 Gross profit $ 176,726 $ 193,262 $ 213,494 $ 177,233 $ 760,715 Net income(4) $ 37,369 $ 49,572 $ 64,344 $ 52,021 $ 203,306 Earnings per common share(3): Basic $ 0.42 $ 0.55 $ 0.71 $ 0.57 $ 2.26 Diluted $ 0.40 $ 0.53 $ 0.69 $ 0.56 $ 2.19 QUARTER ENDED