text: The Company purchased 762,300; 614,580; and 1,472,937 shares of its 
  
  common stock during 2003, 2002, and 2001, respectively. The par value 
  A reconciliation of the statutory federal income tax rate to the Com- 
  method of accounting is used for common stock repurchases. The excess 
  pany’s effective income tax rate is as follows: 
  of the cost of shares acquired over their par value is allocated to Additional 
  **2003** 2002  2001 
  Paid-In Capital, with the excess charged to Retained Earnings. 
  
  Federal statutory tax rate 
  State taxes, net of federal 
  **35.0%** 35.0%  35.0% 
  The following table reconciles the numerators and denom- 
  tax effect  **1.8** 1.6  1.6 
  inators used in the calculation of basic and diluted earnings per 
  
  Credit for increasing research 
   activities 
  Extraterritorial income 
  **(2.0)** (1.6)  – 
  share (EPS): 
  
  **2003** 2002 
  
  exclusion 
  Other – net  **(0.5)**
  **0.7** (1.0) 
  1.0 