Barnes Distribution’s leadership position within the MRO market and its international presence.  The purchase price of $78,500 was financed through a combination of $4,000 of cash, $56,000 of debt and $18,500 (923,506 shares) of Barnes Group common stock. The Company expects to achieve a number of post-acquisition cost savings and other synergies through headquarters and infrastructure consolidation. The costs related to the consolidation efforts have not been finalized and therefore are not included in the pro forma data that follows.  The Company is in the process of obtaining third-party valuations of certain assets acquired with Kar Products. Thus, the allocation of the purchase price is subject to refinement. Any amounts attributable to such assets are expected to be finalized during 2003. The following pro forma data summarize the combined balance sheets of the Company and Kar Products as if the acquisition had occurred at December 31, 2002. 4. Inventories 5. Property, Plant and Equipment (Unaudited) Current assets Non-current assets Goodwill Total assets Current liabilities  Long term debt Other liabilities Stockholders’ equity/net assets Liabilities and stockholders’ equity As Reported $^{$}$238,637 249,299 164,594 $^{$}$652,530 $^{$}$132,079 214,125 98,106 208,220 $^{$}$652,530 Kar  (1) $ 29,543 7,052 50,247 $ 86,842 $ 8,342 78,500 $  86,842 Other  (2) $ (4,000) $ (4,000) $ — 56,000 (60,000) $ (4,000) Pro forma $^{$}$264,180 256,351 214,841 $^{$}$735,372 $^{$}$140,421 270,125 98,106 226,720 $^{$}$735,372 (1) The Kar amounts represent the estimated fair values of the assets acquired and liabilities assumed. (2) Other includes the acquisition financing. The net increase in shareholders equity reflects the $18,500 issuance of shares.  Inventories valued by the LIFO method aggregated $58,506 and $66,092 at December 31, 2002 and 2001, respectively. If LIFO inventories had been valued using the FIFO method, they would have been $12,567 and $13,135 higher at those dates. Depreciation expense was $29,304, $30,008 and $30,314 for 2002, 2001 and 2000, respectively. Inventories at December 31 consisted of: Property, plant and equipment at December 31 consisted of: Finished goods Work-in-process  Raw materials and supplies  2001 $ 51,839 18,370 15,512 $ 85,721 2002 $ 58,244 16,993 13,572 $ 88,809 Land Buildings Machinery and equipment Less accumulated depreciation 2001 $ 4,046 74,191 328,402 406,639 253,696 $^{$}$152,943 2002 $ 9,087 79,578 340,647 429,312 269,872 $^{$}$159,440 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Back to Table of Contents PAGE 25 BARNES GROUP INC.