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## NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (thousands of dollars unless otherwise indicated) 

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## NOTE 6—EXIT OR DISPOSAL ACTIVITIES 

Management is continually re-evaluating the Compa- ny’s operating facilities against its long-term strategic goals. Prior to January 1, 2003, upon commitment to a formal shutdown plan of an operating facility, provi- sions were made for all estimated qualified exit costs in accordance with EITF No. 94-3. Effective January 1, 

2003, the Company recognizes liabilities associated with exit or disposal activities as incurred in accordance with SFAS No. 146. Qualified exit costs primarily include post-closure rent expenses, incremental post-clo- sure costs and costs of employee terminations. Adjust- ments may be made to liabilities accrued for qualified exit costs if information becomes available upon which more accurate amounts can be reasonably estimated. Concurrently, property, plant and equipment is tested for impairment in accordance with SFAS No. 144 and, if impairment exists, the carrying value of the related assets is reduced to estimated fair value. Additional impairment may be recorded for subsequent revisions in estimated fair value. No significant revisions occurred during 2004, 2003 or 2002. 

The following table summarizes the activity and remaining liabilities associated with qualified exit costs: 

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