The Company applies APB Opinion No. 25, “Accounting for Stock Issued to Employ- ees,” and related interpretations in accounting for its stock option and its employee stock purchase rights plans. Accordingly, no compensation cost has been recognized for its fixed stock option or employee stock purchase rights plans. Had compensation cost for the Company’s three stock based compensation and employee stock purchase rights plans been determined consistent with SFAS No. 123, the Company’s net earn- ings, basic earnings per share and diluted earnings per share would have been reduced to the pro forma amounts indicated below: Foreign currency amounts attributable to foreign operations have been translated into U.S. Dollars using year-end exchange rates for assets and liabilities, historical rates for equity, and average annual rates for revenues and expenses. Unrealized gains or losses arising from fluctuations in the year-end exchange rates are generally recorded as components of other comprehensive income as adjustments from foreign currency trans- lation. Currency fluctuations are a normal operating factor in the conduct of the Company’s business and exchange transaction gains and losses are generally included in freight consolidation expenses. J. Foreign Currency See Note 5C. for information on the assumptions used to estimate the fair value of option grants. 50 expd 02 Note 1 2002 2001 2000 Net earnings – as reported $ 112,529 97,243 83,035 Deduct: Total stock-based employee compensation expense determined under fair value based method for all awards, net of related tax effects (18,873) (14,309) (9,945) Net earnings – pro forma $ 93,656 82,934 73,090 Basic earnings per share – as reported $ 1.08 .93 .81 Basic earnings per share – pro forma $ .90 .80 .71 Diluted earnings per share – as reported $ 1.03 .89 .76 Diluted earnings per share – pro forma $ .89 .78 .69