SG&A and have a positive impact on our SG&A, did not significantly vary year over year. SG&A for our U.S. toy store division decreased in absolute dollars, however it remained flat as a percentage of sales at 22.6% for the year. SG&A for the Babies"R"Us division decreased 0.2% to 23.6% for the year, primarily as a function of expense control coupled with higher sales productivity. SG&A for our International toy store business was reduced by 0.2% to 22.6% for the year. SG&A for Toysrus.com decreased for the year, due to lower fulfillment costs associated with product bundling, and a reduction in net advertising costs. The SG&A decrease, as well as an increase in Toysrus.com's net sales for the year, contributed to the overall reduction in consolidated SG&A, as a percentage of sales.

Depreciation and amortization increased by $9 million to $317 million for the year. Depreciation and amortization for 2001 included $13 million related to the amortization of goodwill. We ceased amortizing this goodwill on February 3, 2002 when we adopted the provisions of Statement of Financial Accounting Standard No. 142, "Goodwill and Other Intangible Assets,"(SFAS No. 142) (see the section "Recent Accounting Pronouncements"). Therefore, excluding the 2001 goodwill amortization, depreciation and amortization increased by $22 million for the year. This increase was primarily due to our Mission Possible store remodeling program, new store openings, and strategic investments to improve our management information systems. These increases were partially offset by the impact of closed stores. As part of the restructuring initiatives announced in January 2002, we closed 37 Kids"R"Us stores and 27 Toys"R"Us stores in the United States.

Interest expense, net of interest income, increased by $4 million to $23 million for the fourth quarter of 2002 and increased by $1 million to $110 million for the full year. These increases in net interest expense are mainly attributable to increased long-term borrowings, partly offset by increased cash investments, lower short-term borrowings and a decrease in interest rates.

Our effective tax rate was 36.5% versus 26.9% in the prior year. Our 2001 effective tax rate was impacted by the reversal of prior years' charges included in restructuring and other charges recorded in 2001.

Foreign currency translation had a 3% favorable impact on our consolidated net earnings for the fourth quarter of 2002 and a 4% favorable impact on our consolidated net earnings for the full year of 2002. Inflation did not have a significant impact on our full year consolidated net earnings for 2002.

Our business is highly seasonal, with net sales and net earnings typically highest in the fourth quarter due to the inclusion of the holiday selling season. Fourth quarter 2002 net earnings were $278 million compared with $158 million in 2001. Diluted earnings per share were $1.30 for the fourth quarter of 2002 compared with $0.78 in 2001. Total consolidated comparable store sales, in local currencies, were flat in the fourth quarter of 2002 compared with an increase of 2% in 2001. Our results for 2001 included restructuring and other charges of $213 million ($126 million, net of taxes). Excluding the impact of these charges, net earnings were $284 million and diluted earnings per share were $1.39 for the fourth quarter of 2001.