##### 



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, DC 20549
 FORM 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: April 29, 2006OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
  PACIFIC SUNWEAR OF CALIFORNIA, INC.
  California
(State of incorporation)
    
    95-3759463
(I.R.S. Employer Identification No.)
 3450 East Miraloma Avenue, Anaheim, CA 92806
 (714) 414-4000
 þ o
  þ o o
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PACIFIC SUNWEAR OF CALIFORNIA, INC.
FORM 10-Q
For the Quarter Ended April 29, 2006
 Index
 Page #PART I.
    
    FINANCIAL INFORMATIONItem 1.
    
    Condensed Consolidated Financial Statements (unaudited):Condensed Consolidated Balance Sheets April 29, 2006 and January 28, 2006
    
    3Condensed Consolidated Statements of Income and Comprehensive Income
First quarter (13 weeks) ended April 29, 2006 and April 30, 2005
    
    4Condensed Consolidated Statements of Cash Flows
First quarter (13 weeks) ended April 29, 2006 and April 30, 2005
    
    5Notes to Condensed Consolidated Financial Statements
    
    6-11Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    12-20Item 3.
    
    Quantitative and Qualitative Disclosures about Market Risk
    
    20Item 4.
    
    Controls and Procedures
    
    20PART II.
    
    OTHER INFORMATIONItem 1.
    
    Legal Proceedings
    
    21Item 1A.
    
    Risk Factors
    
    21-23Item 2.
    
    Unregistered Sales of Equity Securities and Use of Proceeds
    
    24Item 3.
    
    Defaults upon Senior Securities
    
    24Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    24Item 5.
    
    Other Information
    
    24Item 6.
    
    Exhibits
    
    24SIGNATURE PAGE
    
    25
 2




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##### 



PACIFIC SUNWEAR OF CALIFORNIA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, all amounts in thousands except share amounts)
 April 29, 2006
    
    
    January 28, 2006ASSETSCURRENT ASSETS:Cash and cash equivalents
    
    $
    57,867
    
    
    $
    95,185Marketable securities
    
    
    49,795
    
    
    
    74,911Merchandise inventories
    
    
    222,204
    
    
    
    215,140Other current assets
    
    
    41,072
    
    
    
    41,485Total current assets
    
    
    370,938
    
    
    
    426,721PROPERTY AND EQUIPMENT, NET:Gross property and equipment
    
    
    636,596
    
    
    
    602,962Less accumulated depreciation and amortization
    
    
    (259,954
    )
    
    
    (247,140
    )Total property and equipment, net
    
    
    376,642
    
    
    
    355,822Other Assets
    
    
    25,210
    
    
    
    25,018TOTAL ASSETS
    
    $
    772,790
    
    
    $
    807,561LIABILITIES AND SHAREHOLDERS EQUITYCURRENT LIABILITIES:Accounts payable
    
    $
    45,408
    
    
    $
    47,550Other current liabilities
    
    
    65,770
    
    
    
    74,921Total current liabilities
    
    
    111,178
    
    
    
    122,471LONG-TERM LIABILITIES:Deferred lease incentives
    
    
    82,130
    
    
    
    81,440Deferred rent
    
    
    29,557
    
    
    
    28,748Deferred income taxes
    
    
    12,584
    
    
    
    12,584Other long-term liabilities
    
    
    10,118
    
    
    
    15,528Total long-term liabilities
    
    
    134,389
    
    
    
    138,300Commitments and contingencies (Note 5)SHAREHOLDERS EQUITY:Preferred stock, $.01 par value; 5,000,000 shares authorized; none issued
    
    
    
    
    
    
    Common stock, $.01 par value; 170,859,375 shares authorized; 72,386,066
and 73,751,249 shares issued and outstanding, respectively
    
    
    724
    
    
    
    737Additional paid-in capital
    
    
    
    
    
    
    23,866Retained earnings
    
    
    526,499
    
    
    
    522,187Total shareholders equity
    
    
    527,223
    
    
    
    546,790TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
    
    $
    772,790
    
    
    $
    807,561
  3




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##### 



PACIFIC SUNWEAR OF CALIFORNIA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(unaudited)
(in thousands, except share and per share amounts)
 First Quarter EndedApril 29, 2006
    
    
    April 30, 2005Net sales
    
    $
    299,888
    
    
    $
    279,985Cost of goods sold, including buying, distribution and occupancy costs
    
    
    202,606
    
    
    
    182,635Gross margin
    
    
    97,282
    
    
    
    97,350Selling, general and administrative expenses
    
    
    79,939
    
    
    
    70,123Operating income
    
    
    17,343
    
    
    
    27,227Interest income
    
    
    1,795
    
    
    
    1,086Income before income tax expense
    
    
    19,138
    
    
    
    28,313Income tax expense
    
    
    7,273
    
    
    
    10,706Net income
    
    $
    11,865
    
    
    $
    17,607Comprehensive income
    
    $
    11,865
    
    
    $
    17,607Net income per share, basic
    
    $
    0.16
    
    
    $
    0.23Net income per share, diluted
    
    $
    0.16
    
    
    $
    0.23Weighted average shares outstanding, basic
    
    
    73,144,277
    
    
    
    75,292,587Weighted average shares outstanding, diluted
    
    
    73,711,710
    
    
    
    76,579,259
  4




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##### 



PACIFIC SUNWEAR OF CALIFORNIA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
 First Quarter EndedApril 29, 2006
    
    
    April 30, 2005CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    11,865
    
    
    $
    17,607Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization
    
    
    16,905
    
    
    
    15,001Tax benefits related to exercise of stock options
    
    
    1,149
    
    
    
    3,754Stock-based compensation
    
    
    1,944
    
    
    
    Loss on disposal of property and equipment
    
    
    6
    
    
    
    Change in operating assets and liabilities:Merchandise inventories
    
    
    (7,064
    )
    
    
    2,953Other current assets
    
    
    413
    
    
    
    71Other assets
    
    
    (192
    )
    
    
    (1,279
    )Accounts payable
    
    
    (2,142
    )
    
    
    (5,225
    )Other current liabilities
    
    
    (17,244
    )
    
    
    (5,303
    )Deferred lease incentives
    
    
    690
    
    
    
    4,675Deferred rent
    
    
    487
    
    
    
    4Other long-term liabilities
    
    
    (5,388
    )
    
    
    1,380Net cash provided by operating activities
    
    
    1,429
    
    
    
    33,638CASH FLOWS FROM INVESTING ACTIVITIES:Purchases of property and equipment
    
    
    (29,096
    )
    
    
    (21,648
    )Purchases of available-for-sale marketable securities
    
    
    (163,150
    )
    
    
    (228,775
    )Sales of available-for-sale marketable securities
    
    
    177,750
    
    
    
    234,500Purchases of held-to-maturity marketable securities
    
    
    
    
    
    
    (21,383
    )Maturities of held-to-maturity marketable securities
    
    
    10,516
    
    
    
    13,450Net cash used in investing activities
    
    
    (3,980
    )
    
    
    (23,856
    )CASH FLOWS FROM FINANCING ACTIVITIES:Repurchases of common stock
    
    
    (38,162
    )
    
    
    Proceeds from exercise of stock options
    
    
    3,637
    
    
    
    6,421Principal payments under long-term debt and capital lease obligations
    
    
    (242
    )
    
    
    (547
    )Net cash (used in) provided by financing activities
    
    
    (34,767
    )
    
    
    5,874NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS:
    
    
    (37,318
    )
    
    
    15,656CASH AND CASH EQUIVALENTS, beginning of period
    
    
    95,185
    
    
    
    64,308CASH AND CASH EQUIVALENTS, end of period
    
    $
    57,867
    
    
    $
    79,964SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:Cash paid for interest
    
    $
    2
    
    
    $
    18Cash paid for income taxes
    
    $
    18,032
    
    
    $
    9,300SUPPLEMENTAL DISCLOSURES OF NON-CASH TRANSACTIONS:Increase to additional paid-in capital related to the issuance of stock to satisfy
certain deferred compensation liabilities
    
    $
    
    
    
    $
    1,142Increase in non-cash property and equipment accruals
    
    $
    8,635
    
    
    $
    2,667
  5




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##### 



PACIFIC SUNWEAR OF CALIFORNIA, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the quarterly period ended April 29, 2006
(unaudited, all amounts in thousands except share and per share amounts unless otherwise indicated)
 1. NATURE OF BUSINESS AND BASIS OF PRESENTATION
 Nature of Business
 Basis of Presentation
  2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
  New Accounting Pronouncements
  6




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Marketable Securities
 Stock-Based Compensation
 
   First Quarter2006
    
    2005Expected Option Life
    
    5 years
    
    5 yearsStock Volatility
    
    46.6% - 48.7%
    
    62.8%Risk-free Interest Rates
    
    4.6% - 4.9%
    
    3.9%Expected Dividends
    
    None
    
    None
  7




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##### 



Weighted-AverageRemaining
    
    
    AggregateContractual
    
    
    IntrinsicWeighted-Average
    
    
    Term
    
    
    ValueStock Options
    
    Shares (000s)
    
    
    Exercise Price
    
    
    (Yrs.)
    
    
    ($000s)Outstanding at January 29, 2006
    
    
    4,248
    
    
    $
    19.18Granted
    
    
    169
    
    
    
    22.91Exercised
    
    
    (335
    )
    
    
    10.86Forfeited or expired
    
    
    (367
    )
    
    
    21.52Outstanding at April 29, 2006
    
    
    3,715
    
    
    $
    19.87
    
    
    
    6.34
    
    
    $
    16,825Exercisable at April 29, 2006
    
    
    2,003
    
    
    $
    16.75
    
    
    
    5.89
    
    
    $
    14,594
   Weighted-Average Grant-Non-vested Shares
    
    Shares (000)
    
    
    Date Fair ValueNon-vested at January 29, 2006
    
    
    2,298
    
    
    $
    12.31Granted
    
    
    169
    
    
    
    10.96Vested
    
    
    (389
    )
    
    
    14.35Forfeited
    
    
    (367
    )
    
    
    10.15Non-vested at April 29, 2006
    
    
    1,711
    
    
    $
    13.55
   8




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First QuarterEndedApril 29, 2005Net income, as reported
    
    $
    17,607Less stock-based employee compensation expense
determined under the fair value based method, net of
related tax effects
    
    
    (1,819
    )Pro forma net income
    
    $
    15,788Earnings per ShareBasic, as reported
    
    $
    0.23Basic, pro forma
    
    $
    0.21Diluted, as reported
    
    $
    0.23Diluted, pro forma
    
    $
    0.21
 Segment Reporting
 OneThousandPacSun
    
    
    d.e.m.o.
    
    
    Steps
    
    
    TotalNet Sales
    
    $
    251,614
    
    
    $
    48,099
    
    
    $
    175
    
    
    $
    299,888Comparable Store Sales %
    
    
    (2.2
    )%
    
    
    1.0
    %
    
    
    n/a
    
    
    
    (1.8
    )%Contribution Margin
    
    $
    44,899
    
    
    $
    4,221
    
    
    $
    (347
    )
    
    $
    48,773Number of Stores
    
    
    917
    
    
    
    200
    
    
    
    5
    
    
    
    1,122Square Footage (in 000s)
    
    
    3,437
    
    
    
    554
    
    
    
    13
    
    
    
    4,004
  3. OTHER CURRENT ASSETS
  April 29,
    
    
    January 28,2006
    
    
    2006Prepaid expenses
    
    $
    24,464
    
    
    $
    22,360Non-trade accounts receivable
    
    
    10,162
    
    
    
    12,679Deferred income taxes
    
    
    6,446
    
    
    
    6,446Total other current assets
    
    $
    41,072
    
    
    $
    41,485
 9




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##### 



4. OTHER CURRENT LIABILITIES
  April 29,
    
    
    January 28,2006
    
    
    2006Accrued capital expenditures
    
    $
    17,093
    
    
    $
    8,779Accrued compensation and benefits
    
    
    12,726
    
    
    
    12,250Accrued gift cards
    
    
    9,018
    
    
    
    12,620Sales taxes payable
    
    
    6,203
    
    
    
    7,895Income taxes payable
    
    
    2,988
    
    
    
    14,896Other
    
    
    17,742
    
    
    
    18,481Total other current liabilities
    
    $
    65,770
    
    
    $
    74,921
 5. COMMITMENTS AND CONTINGENCIES
 Litigation
 Letters of Credit
 6. COMMON STOCK REPURCHASE AND RETIREMENT
  Maximum# of Shares
    
    
    
    
    
    
    Value ofPurchased
    
    
    
    
    
    
    Shares thatAverage
    
    
    as Part of
    
    
    
    
    
    
    May Yet bePrice
    
    
    Publicly
    
    
    Value of
    
    
    Purchased# of Shares
    
    
    Paid Per
    
    
    Announced
    
    
    Shares
    
    
    Under thePeriod
    
    Purchased
    
    
    Share
    
    
    Plan
    
    
    Purchased
    
    
    Plan2005 Authorization:
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    49,856March 2006
    
    
    1,100,000
    
    
    $
    22.33
    
    
    
    1,100,000
    
    
    $
    24,563
    
    
    $
    25,293April 2006
    
    
    600,000
    
    
    $
    22.67
    
    
    
    600,000
    
    
    $
    13,600
    
    
    $
    11,693May 2006
    
    
    400,000
    
    
    $
    22.54
    
    
    
    400,000
    
    
    $
    9,016
    
    
    $
    2,677Total
    
    
    2,100,000
    
    
    $
    22.47
    
    
    
    2,100,000
    
    
    $
    47,179
    
    
    $
    2,6772006 Authorization:
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    100,000Total for all authorizations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    102,677
 10




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##### 



7. NET INCOME PER SHARE, BASIC AND DILUTED
  First Quarter Ended:
    
    April 29, 2006
    
    
    April 30, 2005Net
    
    
    
    
    
    
    
    
    
    
    NetIncome
    
    
    Shares
    
    
    EPS
    
    
    Income
    
    
    Shares
    
    
    EPSBasic EPS:
    
    $
    11,865
    
    
    
    73,144,277
    
    
    $
    0.16
    
    
    $
    17,607
    
    
    
    75,292,587
    
    
    $
    0.23Diluted EPS:Effect of dilutive stock options
    
    
    
    
    
    
    567,433
    
    
    
    (0.00
    )
    
    
    
    
    
    
    1,286,672
    
    
    
    (0.00
    )$
    11,865
    
    
    
    73,711,710
    
    
    $
    0.16
    
    
    $
    17,607
    
    
    
    76,579,259
    
    
    $
    0.23
  11




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ITEM 2  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF CONSOLIDATED OPERATIONS
  Cautionary Note Regarding Forward-Looking Statements
  Executive Overview
  Comparable (or same store) sales
 Net merchandise margins
 Operating margin
 12




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##### 



Store sales trends
 Cash flow and liquidity (working capital)
 Critical Accounting Policies
  Recognition of Revenue
 Valuation of Inventories
 Accounting for Store Operating Leases
 Determination of Stock-Based Compensation Expense
 13




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##### 



Evaluation of Long-Lived Assets
 Evaluation of Insurance Reserves
 Evaluation of Income Taxes
 Evaluation of Litigation Matters
 14




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##### 



Results of Operations
  First Quarter EndedApril 29,
    
    
    April 30,2006
    
    
    2005Net sales
    
    
    100.0
    %
    
    
    100.0
    %Cost of goods sold, including buying,
distribution and occupancy costs
    
    
    67.6
    
    
    
    65.2Gross margin
    
    
    32.4
    
    
    
    34.8Selling, general and administrative expenses
    
    
    26.6
    
    
    
    25.0Operating income
    
    
    5.8
    
    
    
    9.7Interest income
    
    
    0.6
    
    
    
    0.4Income before income tax expense
    
    
    6.4
    
    
    
    10.1Income tax expense
    
    
    2.4
    
    
    
    3.8Net income
    
    
    4.0
    %
    
    
    6.3
    %
  April 29, 2006
    
    
    April 30, 2005PacSun stores
    
    
    820
    
    
    
    754Outlet stores
    
    
    97
    
    
    
    86d.e.m.o. stores
    
    
    200
    
    
    
    173One Thousand Steps stores
    
    
    5
    
    
    
    Total stores
    
    
    1,122
    
    
    
    1,013Square footage (in 000s)
    
    
    4,004
    
    
    
    3,548
 The first quarter (thirteen weeks) ended April 29, 2006 as compared to the first quarter
(thirteen weeks) ended April 30, 2005
 Net Sales
  $millions
    
    Attributable to$24
    
    Net sales from stores opened in fiscal 2005 not yet included in the comparable store base1
    
    20 new stores opened in fiscal 2006 not yet included in the comparable store base(1)
    
    3 closed stores in fiscal 2006 and 10 closed stores in fiscal 2005(4)
    
    1.8% decrease in comparable store net sales in the first quarter of fiscal 2006 compared to the first quarter of fiscal 2005$20
    
    Total
  15




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##### 



Gross Margin
  Selling, General and Administrative Expenses
  %
    
    Attributable to1.0
    
    Increase in store payroll of 0.4% as well as general and administrative
payroll of 0.6% as a percentage of net sales, primarily due to
deleveraging these costs against the negative comparable store net
sales result in the first quarter of fiscal 2006. In total, these
payroll costs increased in absolute dollars to $48 million for the
first quarter of fiscal 2006 from $42 million during the first quarter
of fiscal 2005, primarily due to the addition of 132 net new stores
during fiscal 2005 and the first quarter of fiscal 2006 as well as
headcount additions in the corporate office.0.5
    
    Increase in selling, general and administrative expenses due to the
expensing of stock options of $1.4 million. See Stock-Based
Compensation within Note 2 to the condensed consolidated financial
statements for a further discussion of stock-based compensation
expenses.0.5
    
    Increase in depreciation expenses to $15 million for the first quarter
of fiscal 2006 versus $12 million for the first quarter of fiscal 2005,
primarily due to increased depreciation associated with the 132 net new
store additions during fiscal 2005 and the first quarter of fiscal
2006.(0.2)
    
    Decrease in lease abandonment expenses associated with store closures
from $0.5 million in the first quarter of fiscal 2005 to $0 for the
first quarter of fiscal 2006. During the first quarter of fiscal 2006,
the Company received insurance proceeds in excess of the net book value
of fixed assets written off during fiscal 2005 related to hurricanes
Katrina and Rita of approximately $0.3 million.(0.2)
    
    Net decrease in all other selling, general and administrative expenses.1.6
    
    Total
 Net Interest Income
  16




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##### 



Income Tax Expense
  Liquidity and Capital Resources
  Operating Cash Flows
  $millions
    
    Attributable to$(10)
    
    Decrease in cash flows from accrued income taxes. Cash payments for income taxes were $9 million higher in the
first quarter of fiscal 2006 than in the first quarter of fiscal 2005.(7)
    
    Decrease in cash flows from accounts payable, net of inventory, due to timing of payments.(6)
    
    Decrease in cash flows related to deferred compensation liabilities due to cash disbursements to former executives.(6)
    
    Decrease in net income.(4)
    
    Decrease in cash flows related to deferred lease incentives due to receiving fewer and lower landlord allowances
during the first quarter of fiscal 2006 as compared to the first quarter of fiscal 2005.$(33)
    
    Total
 17




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##### 



Working Capital
  $millions
    
    Description$304
    
    Working capital at January 28, 2006(48)
    
    Decrease in cash and marketable securities, net of income taxes payable and accounts
payable, primarily due to stock repurchases and capital expenditures, among other items
(see cash flow statement).7
    
    Increase in inventory, primarily due to planned volume increases in key merchandise
categories and the addition of 17 net new stores during the first quarter of fiscal
2006.(3)
    
    Net decrease in working capital attributable to all other current assets and liabilities.$260
    
    Working capital at April 29, 2006
 Investing Cash Flows
  Financing Cash Flows
   Credit Facility
  Contractual Obligations
  18




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##### 



Payments Due by PeriodContractual Obligations
    
    
    
    
    
    Less than
    
    
    
    
    
    
    
    
    
    
    More than(in millions)
    
    Total
    
    
    1 year
    
    
    1-3 years
    
    
    3-5 years
    
    
    5 yearsOperating lease obligations
    
    $
    594
    
    
    $
    100
    
    
    $
    189
    
    
    $
    154
    
    
    $
    151Letters of credit
    
    
    39
    
    
    
    39
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    $
    633
    
    
    $
    139
    
    
    $
    189
    
    
    $
    154
    
    
    $
    151
  Operating Leases
  Indemnifications
   New Accounting Pronouncements
  Inflation
  19




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##### 



Seasonality and Quarterly Results
  
 ITEM 3  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
   
 ITEM 4  CONTROLS AND PROCEDURES
   20




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##### 



PART II  OTHER INFORMATION
 
 Item 1  Legal Proceedings
 
 Item 1A  Risk Factors
 The products we sell are subject to significant merchandising/fashion sensitivity.
 We may not be able to manage our planned expansion effectively.
 We launched operations of a new retail concept, One Thousand Steps, in April 2006, which could
negatively affect existing operations.
 Our customers may not accept our proprietary brand merchandise.
 21




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##### 



Our comparable store net sales results can fluctuate significantly.
 We could lose key personnel at any time.
 Our dependence on a single distribution facility exposes us to significant operational risks.
 Selling merchandise over the internet carries particular risks that can distract attention from our
core businesses.
 Any terrorist attacks or war/threat of war could significantly affect consumer spending.
 Our foreign sources of production may not always be reliable.
 22




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##### 



Any failure by us to maintain credit facility financial covenants could have a material adverse
impact on our business.
 Adverse outcomes of litigation matters could significantly affect our operational results.
 Our stock price can fluctuate significantly.
   23




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Item 2  Unregistered Sales of Equity Securities and Use of Proceeds
 
 Item 3  Defaults upon Senior Securities
 
 Item 4  Submission of Matters to a Vote of Security Holders
 
 Item 5  Other Information
 
 Item 6  Exhibits
 Exhibit 31
    
    Written statements of Seth R. Johnson and Gerald M. Chaney
pursuant to section 302 of the Sarbanes-Oxley Act of 2002.
 Exhibit 32
    
    Written statement of Seth R. Johnson and Gerald M. Chaney pursuant
to section 906 of the Sarbanes-Oxley Act of 2002.
 24




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SIGNATURES
  PACIFIC SUNWEAR OF CALIFORNIA, INC.(Registrant)Date: June 1, 2006
    /s/   SETH R. JOHNSONSeth R. JohnsonDirector and Chief Executive Officer
(Principal Executive Officer)Date: June 1, 2006
    /s/   GERALD M. CHANEYGerald M. ChaneySenior Vice President,
Chief Financial Officer and Secretary
(Principal Financial and Accounting Officer) 25




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Exhibit No.
    
    Description31
    
    Written statements of Seth R. Johnson and Gerald M. Chaney
pursuant to section 302 of the Sarbanes-Oxley Act of 2002.32
    
    Written statement of Seth R. Johnson and Gerald M. Chaney pursuant
to section 906 of the Sarbanes-Oxley Act of 2002.
 26