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$ in millions, except per share amounts Impairment of Long-Lived Assets and Costs Associated with Exit Activities In March 2002 we adopted Statement of Financial Accounting Standards (SFAS) No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, which requires long-lived assets, such as property and equipment, to be evaluated for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. An impairment loss is recognized when estimated undiscounted cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset (if any) are less than the carrying value of the asset. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value. We adopted SFAS No. 146, Accounting for Costs Associated with Exit or Disposal Activities, on January 1, 2003. Since adoption, the present value of costs associated with location closings, primarily future lease costs, are charged to earnings when a location is vacated. Prior to adoption, we recognized a liability when we made the decision to relocate or close the location. Goodwill and Intangible Assets Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations accounted for under the purchase method. Effective March 3, 2002, we adopted SFAS No. 142, Goodwill and Other Intangible Assets, which eliminated the systematic amortization of goodwill. The Statement also required that we review goodwill for impairment at adoption and at least annually thereafter. |
| A reconciliation of reported earnings adjusted to reflect the adoption of SFAS No. 142, as if it were effective for all fiscal years presented, is provided below. |
| 2003 | 2002 | 2001 | |
| Reported earnings from continuing operations | $ 622 | $ 570 | $ 401 |
| Add back goodwill amortization, net of tax | — | 2 | 1 |
| Adjusted earnings from continuing operations | 622 | 572 | 402 |
| Reported loss from discontinued operations, net of tax | (441) | — | (5) |
| Add back goodwill amortization, net of tax | — | 16 | 1 |
| Adjusted (loss) earnings from discontinued operations | (441) | 16 | (4) |
| Cumulative effect of change in accounting principles, net of tax | (82) | — | — |
| Adjusted net earnings | $ 99 | $ 588 | $ 398 |
| Reported basic earnings per share from continuing operations | $1.93 | $1.80 | $1.29 |
| Add back goodwill amortization | — | 0.01 | — |
| Adjusted basic earnings per share from continuing operations | 1.93 | 1.81 | 1.29 |
| Reported basic loss per share from discontinued operations | (1.37) | — | (0.02) |
| Add back goodwill amortization | — | 0.05 | 0.01 |
| Adjusted basic (loss) earnings per share from discontinued operations | (1.37) | 0.05 | (0.01) |
| Cumulative effect of change in accounting principles | (0.25) | — | — |
| Adjusted basic earnings per share | $0.31 | $1.86 | $1.28 |
| Reported diluted earnings per share from continuing operations | $1.91 | $1.77 |
$1.26 |
| Add back goodwill amortization | — | 0.01 | — |
| Adjusted diluted earnings per share from continuing operations | 1.91 | 1.78 | 1.26 |
| Reported diluted loss per share from discontinued operations | (1.36) | — | (0.02) |
| Add back goodwill amortization | — | 0.05 | 0.01 |
| Adjusted diluted (loss) earnings per share from discontinued operations | (1.36) | 0.05 | (0.01) |
| Cumulative effect of change in accounting principles | (0.25) | — | — |
| Adjusted diluted earnings per share | $0.30 | $1.83 | $1.25 |
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