Years ended December 31, Operating activities: Net income Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization Loss (gain) on disposition of property, plant and equipment Changes in assets and liabilities: Accounts receivable Inventories Prepaid expenses Accounts payable Accrued liabilities Deferred income taxes Long-term pension asset Other Net cash provided by operating activities Investing activities: Proceeds from disposition of property, plant  and equipment Capital expenditures Business acquisitions, net of cash acquired Other Net cash used by investing activities Financing activities: Net decrease in notes payable Payments on long-term debt Proceeds from the issuance of long-term debt Proceeds from the issuance of common stock Common stock repurchases Dividends paid Proceeds from the sale of swaps Other Net cash (used) provided by financing activities Effect of exchange rate changes on cash flows (Decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 2000 $ 35,665 35,871 (1,960) 1,087 (7,631) (1,425) (5,415) 1,026 5,863 (8,249) (2,975) 51,857 2,744 (28,042) (104,935) (4,309) (134,542) (5,201) (60,000) 150,000 3,920 (9,197) (14,677) — — 64,845 (2,489) (20,329) 43,632 $ 23,303 2001 $ 19,121 37,045 2,093 11,378 (3,629) (1,884) 13,514 (5,552) 6,510 (7,514) (6,044) 65,038 1,093 (24,857) (1,036) (1,209) (26,009) (1,463) (28,000) 23,711 2,845 (8,798) (14,806) 13,766 (584) (13,329) (135) 25,565 23,303 $ 48,868 2002 $ 27,151 33,626 (222) 5,692 9,843 3,095 (12,626) (87) (15,941) (2,070) 5,950 54,411 3,592 (19,367) (31,189) (1,003) (47,967) (2,935) (61,004) 48,000 3,792 (1,147) (15,018) 4,702 (752) (24,362) (2,595) (20,513) 48,868 $ 28,355 Supplemental Disclosure of Cash Flow Information: Non-cash financing and investing activities include the 2002 issuance of $3.0 million of treasury stock and $2.0 million in installment payments in connection with the Spectrum acquisition. See accompanying notes. (Dollars in thousands) PAGE 19 Back to Table of Contents CONSOLIDATED STATEMENTS OF CASH FLOWS BARNES GROUP INC.