Statements of Consolidated Shareholders’ Equity Woodward Governor Company and Subsidiaries Additional Unearned Accumulated Other Common Paid-in ESOP Comprehensive Retained Total (In thousands except per share amounts) Stock Capital Compensation Earnings Earnings Shares Amount Amount Balance at September 30, 1999 $106 $13,300 $ (7,450) $9,351 $247,420 890 $(20,735) $241,992 Net earnings — — — — 46,976 — — 46,976 Other comprehensive earnings— Foreign currency translation adjustments — — — (6,306) — — — (6,306) Total comprehensive earnings 40,670 Purchases of treasury stock — — — — — 64 (1,762) (1,762) Sales of treasury stock — (12) — — — ( 101 ) 2,423 2,411 Issuance of stock to ESOP — 7 — — — ( 5 ) 129 136 ESOP compensation expense — — 2,142 — — — — 2,142 Cash dividends—$.93 per common share — — — — (10,472) — — (10,472) Tax benefit applicable to ESOP dividend and stock options — — — — 507 — — 507 Balance at September 30, 2000 106 13,295 (5,308) 3,045 284,431 848 (19,945) 275,624 Net earnings — — — — 53,068 — — 53,068 Other comprehensive earnings: Foreign currency translation adjustments, net of reclassification to earnings — — — (625) — — — (625) Unrealized losses on derivatives — — — (1,374) — — — (1,374) Total comprehensive earnings 51,069 Sales of treasury stock — 145 — — — ( 10 ) 236 381 ESOP compensation expense — — 2,011 — — — — 2,011 Cash dividends—$.93 per common share — — — — (10,526) — — (10,526) Tax benefit applicable to ESOP dividend and stock options — — — — 303 — — 303 Balance at September 30, 2001 106 13,440 (3,297)  1,046 327,276 838 (19,709) 318,862 Net earnings — — — — 42,681 — — 42,681 Other comprehensive earnings: Foreign currency translation adjustments — — — 2,823 — — — 2,823 Reclassification of unrealized losses on derivatives to earnings — — — 154 — — — 154 Minimum pension liability adjustment — — — (1,200) — — — (1,200) Total comprehensive earnings 44,458 Purchases of treasury stock — — — — — 4 (286) (286) Sales of treasury stock — 102 — — — ( 10 ) 287 389 ESOP compensation expense — — 1,879 — — — — 1,879 Cash dividends—$.93 per common share — — — — (10,533) — — (10,533) Cash dividend paid by subsidiary to minority shareholder — — — — (198) — — (198) Tax benefit applicable to ESOP dividend and stock options — — — — 330 — — 330 Balance at September 30, 2002 $106 $13,542 $ (1,418) $ 2,823 $359,556 832 $(19,708) $354,901 Treasury Stock See accompanying Notes to Consolidated Financial Statements. 31