are insurance-related expenses, including self-insur- ance. Workers’ compensation and general liability insur- ance accruals are recorded based on insurance claims processed as well as historical claims experience for claims incurred but not yet reported. These estimates are based on historical loss development factors. Employee medical insurance accruals are recorded based on med- ical claims processed as well as historical medical claims experience for claims incurred but not yet reported. Differences in estimates and assumptions could result in an accrual requirement materially differ- ent from the calculated accrual. Recovery of Accounts Receivable. In the normal course of business, the Company extends credit to customers that satisfy predefined criteria. The Company evaluates the collectibility of accounts receivable based on a combina- tion of factors. When aware of a specific customer’s inabil- ity to meet its financial obligations, such as in the case of bankruptcy filings or deterioration in the customer’s oper- ating results or financial position, the Company records a specific reserve for bad debt to reduce the related receiv- able to the amount the Company reasonably believes is collectible. The Company also records reserves for bad debt for all other customers based on a variety of factors, including the length of time the receivables are past due, historical collection experience, and an evaluation of cur- rent and projected economic conditions at the balance sheet date. Actual collections of accounts receivable could differ from management’s estimates due to changes in future economic or industry conditions or specific cus- tomers’ financial condition.  Restructuring. During the fourth quarter, the Company announced its plan to restructure certain operations as part of its ongoing efforts to optimize its production capacity, improve productivity and operating efficien- cies, and lower the Company’s overall cost base. The expected restructuring charge includes estimates related to employee separation costs, the closure and consolidation of facilities, contractual obligations, and the valuation of certain assets including property, plant, and equipment, and inventories. Estimates of such costs are determined by contractual agreement or estimated by management based on historical experience. Actual amounts could differ from the original estimates. Other Matters. The Company does not have off-balance sheet arrangements, financings, or other relationships with unconsolidated entities or other persons, also known as “special purpose entities.” Transactions with related parties are in the ordinary course of business, are conducted on an arm’s-length basis, and are not material to the Company’s results of operations, financial condi- tion, or cash flows. The Financial Accounting Standards Board has issued Statement of Financial Accounting Standards No. 148, Accounting for Stock-Based Compensation — Transition and Disclosure (SFAS 148). SFAS 148 amends Statement of Financial Accounting Standards No. 123,  Accounting  for Stock-Based Compensation  (SFAS 123) , to provide alternative methods of transition when a company  voluntarily changes to the fair value-based method of recognizing expense in the income statement for stock- based employee compensation, including stock options granted to employees. As allowed by SFAS 123, the Company has adopted the disclosure-only provisions of the standard and does not recognize compensation expense for stock options granted to employees. In July 2002, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 146,  Accounting for Costs Associated with Exit or Disposal Activities (SFAS 146). SFAS 146 addresses financial accounting and reporting for costs associated with exit and disposal activities and nullifies Emerging Issues Task Force Issue No. 94-3,  Liability Recognition for Certain Employee Termination Benefits and Other Costs to Exit an Activity (including Certain Costs Incurred in a Restructuring) . The provisions of SFAS 146 are effective for exit or disposal activities that are initiated after December 31, 2002. The adoption of SFAS 146 did not have a material impact on the Company’s consolidated finan- cial statements. The following discussions about the Company’s market risk disclosures involve forward-looking statements. Actual results could differ from those projected in the for- ward-looking statements. The Company is exposed to market risk related to changes in interest rates, com- modity prices, and foreign currency exchange rates.  Interest Rate Risk. The fair value of the Company’s cash and short-term investment portfolio at April 30, 2003, approximate carrying value. Exposure to interest rate risk on the Company’s long-term debt is mitigated since it is at a fixed rate until maturity. Market risk, as meas- ured by the change in fair value resulting from a hypo- thetical ten percent change in interest rates, is not material. Based on the Company’s overall interest rate exposure as of and during the year ended April 30, 2003, including derivative and other instruments sensitive to interest rates, a hypothetical ten percent movement in interest rates (relating to the Company’s variable-rate borrowings) would not materially affect the Company’s results of operations.  Recently Issued Accounting Standards Derivative Financial Instruments and Market Risk 16