The Company has a Non-Discretionary Stock Repurchase Plan to repurchase shares from the proceeds of stock option exercises. As of December 31, 2002, the Company had repurchased and retired 5,257,703 shares of common stock at an average price of $12.34 per share over the period from 1994 through 2002. The Company also has a Discretionary Stock Repurchase Plan under which it retired 2,000,000 shares of common stock as of October 11, 2001, at an average price of $22.56 per share. In November 2001, this plan was expanded to allow for the repur- chase 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. Management believes that the Company’s current cash position, bank financing arrangements, and operating cash flows will be sufficient to meet its capital and liquid- ity requirements for the foreseeable future. In some cases, the Company’s ability to repatriate funds from foreign operations may be subject to foreign exchange controls. At December 31, 2002, cash and cash equivalent balances of $121.4 million were held by the Company’s non-U.S. subsidiar- ies, of which $47.1 million was held in banks in the United States. In addition, certain undistributed earnings of the Company’s subsidiaries accumulated through December 31, 1992 would, under most circumstances, be subject to some additional United States income tax if distributed to the Company. Such undistributed earnings are approxi- mately $41.9 million and the additional Federal and state taxes payable in a hypothetical distribution of such accumulated earnings would approximate $10.1 million. The Company has not provided for this additional tax because the Company intends to rein- vest such earnings to fund the expansion of its foreign activities, or to distribute them in a manner in which no significant additional taxes would be incurred. 86 expd 02 MD&A