of Directors expanded the Company’s Discretionary Stock Repurchase Program to allow for the repurchase of such shares as may be necessary to reduce the issued and outstanding stock to 100,000,000 shares of common stock. As of December 31, 2002, no further shares had been repurchased under the amended discretionary plan. At December 31, 2002, working capital was $249 million, including cash and short- term investments of $212 million. The Company had no long-term debt at December 31, 2002. While the nature of its business does not require an extensive investment in property and equipment, the Company cannot eliminate the possibility that it could acquire an equity interest in property in certain geographic locations. Excluding the acquisition of the office and warehouse facility near the San Francisco, California International Airport, described earlier, the Company currently expects to spend approximately $35 million for normal capital expenditures. In addition to property and equipment, normal capital expenditures include leasehold improvements, ware- house equipment, computer hardware and furniture and fixtures. The Company expects to finance capital expenditures in 2003, with cash. The Company borrows internationally and domestically under unsecured bank lines of credit. During the third quarter of 2002, the Company entered into an unsecured line of credit agreement with a U.S. financial institution. At December 31, 2002, the U.S. facility totaled $50 million and the international bank lines of credit totaled $10.3 million. In addition, the Company maintains a bank facility with its U.K. bank for $8.1 million. At December 31, 2002, the Company was directly liable for $1.3 million drawn on these lines of credit and was contingently liable for an additional $39.1 million from standby letters of credit and guarantees related to these lines of credit and other obliga- tions. 84 expd 02 MD&A