Differences between total depreciation and amortization and capital expenditures of our segments and the corresponding consolidated amounts reported in the statements of consolidated cash flows are due to unallocated corporate amounts. One customer accounted for more than 10% of consolidated net sales, impacting both the Industrial Controls and Aircraft Engine Systems segments totaling approximately $212,000 in 2002, $219,000 in 2001, and $147,000 in 2000. External net sales by geographical area, as determined by the location of the customer invoiced, were as follows: To Board of Directors and Shareholders Woodward Governor Company In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of earnings, cash flows, and shareholders’ equity present fairly, in all material respects, the financial position of Woodward Governor Company and its subsidiaries at September 30, 2002 and 2001, and the results of their operations and their cash flows for each of the three years in the period ended September 30, 2002, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Company’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. As discussed in Note A to the consolidated financial statements, effective October 1, 2001, the Company adopted Statement of Financial Accounting Standards No. 142, “Goodwill and Other Intangible Assets” (SFAS No. 142). PricewaterhouseCoopers LLP Chicago, Illinois October 31, 2002 Year ended September 30, 2002 2001 2000 United States  $403,864 $429,020 $372,773 Other countries 276,127 249,771 224,612  $679,991 $678,791 $597,385 At September 30, 2002 2001 United States  $ 97,137 $105,945 Other countries 26,485 24,631 $123,622 $130,576 Property, plant, and equipment—net by geographical area, as determined by the physical location of the assets, were as follows: Report of Independent Accountants 43