The Company places special emphasis on the management 
and reduction of its working capital with a particular focus on trade 
receivables and inventory levels. The success achieved in managing 
receivables is in large part a result of doing business with quality cus -
tomers and maintaining close communication with them. Trade 
receivables at year-end 2003 were virtually unchanged from the prior 
year. Trade receivable days outstanding have averaged approximately 
37 to 38 days over the past three years. The Company’s inventory turns 
were 23, 23, and 18 for 2003, 2002, and 2001, respectively. Increased 
imports of raw materials and finished goods may negatively affect 
inventory turns in the future but the Company is constantly looking for 
ways to add efficiency to its supply chain. The decrease in accounts pay-
able and accrued expenses is due to timing of vendor and marketing 
program payments and the payment of additional purchase consider -
ation and debenture earn out related to a prior acquisition. The 
Company also funded the retiree medical portion of its postretirement 
benefit obligation in 2003.
I N V E S T M E N T S
The Company has investments in investment grade equity and debt 
securities. Management classifies investments in marketable securities 
at the time of purchase and reevaluates such classification at each bal-
ance sheet date. Equity securities are classified as available-for-sale and 
are stated at current market value with unrealized gains and losses 
included as a separate component of equity, net of any related tax 
effect. Debt securities are classified as held-to-maturity and are stated 
at amortized cost. A table of holdings as of year-end 2003 and 2002 is