The estimated fair values of our financial instruments were as follows: The fair value of cash and cash equivalents, short-term borrowings, and long-term debt at variable interest rates were assumed to be equal to their carrying amounts. Cash and cash equivalents have short-term maturities, short-term borrowings have short-term maturities and market interest rates, and long-term debt at variable interest rates is repriced frequently at market rates of interest. Interest rate swap agreements are carried at their fair value, which is estimated based on proprietary models used by financial institutions that rely on assumptions regarding past, present, and future market conditions. The fair value of long-term debt at fixed interest rates was estimated based on a model that discounted future principal and interest payments at interest rates available to the company at the end of the year for similar debt of the same maturity. Our operations are organized based on the nature of products and related services provided and consist of two operating segments—Industrial Controls and Aircraft Engine Systems. Industrial Controls provides energy control systems and components primarily to OEMs of industrial engines, turbines, and other power equipment. Aircraft Engine Systems provides energy control systems and components primarily to OEMs of aircraft engines. The accounting policies of the segments are the same as those described in Note A. Intersegment sales and transfers are made at established intersegment selling prices generally intended to approximate selling prices to unrelated parties. Our determination of segment earnings does not reflect gain on sale of business and allocations of corporate expenses, and is before interest expense, interest income, income taxes, and the cumulative effect of accounting change. Segment assets consist of accounts receivable, inventories, property, plant, and equipment—net, goodwill, and other intangibles—net. Summarized financial information for our segments follows: 42 (In thousands of dollars except per share amounts) R. Financial instruments: At September 30, 2002 2001 Cash and cash equivalents $29,828 $10,542 Interest rate swap agreements 1,334 — Short-term borrowings (16,185) (5,561) Long-term debt, including current portion (83,897) (99,637) At or for the year ended September 30, 2002 2001 2000 Industrial Controls: External net sales $408,665 $384,145 $330,962 Intersegment sales 842 808 700 Segment earnings 33,294 57,710 41,258 Goodwill-related amortization — 1,891 1,725 Adjusted segment earnings 33,294 59,601 42,983 Segment assets 286,302 283,072 214,935 Depreciation and amortization 16,657 14,850 13,322 Capital expenditures 15,536 15,582 14,631 Aircraft Engine Systems: External net sales $271,326 $294,646 $266,423 Intersegment sales 2,752 2,919 2,010 Segment earnings 57,226 53,585 38,150 Goodwill-related amortization — 2,587 2,512 Adjusted segment earnings 57,226 56,172 40,662 Segment assets 219,480 241,002 260,712 Depreciation and amortization 13,076 15,704 15,318 Capital expenditures 7,038 9,711 10,071 Year ended September 30, 2002 2001 2000 Total segment net sales and intersegment sales  $683,585 $682,518 $600,095 Elimination of intersegment sales (3,594) (3,727) (2,710) Consolidated net sales  $679,991  $678,791 $597,385 Total segment earnings  $ 90,520 $111,295 $ 79,408 Unallocated corporate expenses (15,366) (18,753) (20,689) Gain on sale of business — — 25,500 Interest expense and income (4,474) (6,587) (10,127) Consolidated earnings before income taxes and cumulative effect of accounting change $ 70,680 $ 85,955 $ 74,092 At September 30, 2002 2001 2000 Total segment assets $505,782 $524,074 $475,647 Unallocated corporate property, plant, and equipment—net 3,385 4,505 5,072 Other unallocated assets 73,228 56,049 53,004 Consolidated total assets  $582,395 $584,628 $533,723 The differences between the total of segment amounts and the consolidated financial statements were as follows: S. Segment information: Notes to Consolidated Financial Statements