25 The Procter & Gamble Company and Subsidiaries Financial Review estimate, given the nature of the activities, the corollary benefits achieved, timing and the degree of reinvestment.  Overall, the program is expected to deliver nearly $2 billion in  after tax annual savings by fiscal 2004. Estimated incremen- tal savings were $700 million in 2002, $235 million in 2001  and $65 million in 2000. Incremental savings in 2003 are es- timated to be approximately $400 to $500 million after tax. The Company has made and will make certain forward- looking statements in the Annual Report and in other contexts relating to volume growth, increases in market  shares, financial goals and cost reduction, among others. Asset write-downs relate to establishment of new fair-value  bases for assets held for sale or disposal and for assets whose  future cash flow expectations have declined significantly as a  direct result of restructuring decisions. Assets held for sale or  disposal represent excess capacity that is in the process of  being removed from service as well as businesses held for  sale within the next 12 months. Such assets are written down  to the net amount expected to be realized upon sale or disposal. Assets continuing in operation, but whose nominal  cash flows are no longer sufficient to recover existing book  values, are written down to estimated fair value, generally  determined by reference to discounted expected future cash  flows. Write-downs of assets that will continue to be used  were approximately $45 million before tax ($33 million after  tax) in 2002, $160 million before tax ($133 million after tax)  in 2001 and $0 in 2000. Asset write-downs are not expected  to significantly impact future annual depreciation expense. These forward-looking statements are based on assumptions  and estimates regarding competitive activity, pricing, product  introductions, economic conditions, technological innova- tion, currency movements, governmental action and the development of certain markets. Among the key factors necessary to achieve the Company’s goals are: (1) the successful integration of the Company’s new organization  structure, including achievement of expected cost and tax  savings; (2) the ability to achieve business plans, including  growing volume profitably, despite high levels of competitive  activity, especially with respect to the product categories and  geographical markets in which the Company has chosen to  focus; (3) the ability to maintain key customer relationships;  (4) the achievement of growth in significant developing markets such as China, Turkey, Mexico, the Southern Cone  of Latin America, the countries of Central and Eastern Europe and the countries of Southeast Asia; (5) the ability to  successfully manage regulatory, tax and legal matters, including resolution of pending matters within current estimates; (6) the successful and timely execution of planned  brand divestitures; (7) the ability to successfully implement,  achieve and sustain cost improvement plans in manu- facturing and overhead areas; (8) the ability to successfully  manage currency (including currency issues in Latin America),  interest rate and certain commodity cost exposures; and (9) the ability to manage the continued political and/or economic uncertainty in Latin America and the Middle East,  as well as any political and/or economic uncertainty due to  terrorist activities. If the Company’s assumptions and estimates are incorrect or do not come to fruition, or if the  Company does not achieve all of these key factors, then the  Company’s actual performance could vary materially from  the forward-looking statements made herein. Other contains charges incurred as a direct result of restruc- turing decisions including relocation, training, discontinua- tion of initiatives and the establishment of global business  services and the new legal and organization structure. These  costs are charged to the applicable income statement line  item based on the underlying nature of the charge. Most restructuring accruals are classified as current liabilities. Reserve balances were $245 million, $460 million and $88  million at June 30, 2002, 2001 and 2000, respectively. During the current year, approximately 60% of restructuring  charges were cash compared to 40% in 2001 and 55% in  2000. Going forward, approximately 60% of future charges  are expected to be cash – primarily separations. Savings from the restructuring program are difficult to Forward-Looking Statements Accelerated depreciation relates to long-lived assets that will  be taken out of service prior to the end of their normal service period due to manufacturing consolidations, technol- ogy standardization, plant closures or strategic choices to  discontinue initiatives. The Company has shortened the estimated useful lives of such assets, resulting in incremental  depreciation expense. For segment and management report- ing purposes, normal depreciation expense is reported by the  business segments, with the incremental accelerated depreciation reported in the corporate segment. Accelerated  depreciation and write-downs are charged to cost of products sold for manufacturing assets and marketing, re- search, administrative and other expense for all other assets.