23 KENNAMETAL INC.  / AR 2002 The following table provides a comparison of our reported results and the results excluding special charges and goodwill amortization for 2002, 2001 and 2000: Business Segment Review Our operations are organized into four global business units consisting of MSSG, AMSG, J&L and FSS, and corporate functional shared services. The presentation of segment information reflects the manner in which we organize segments for making operating decisions and assessing performance. Metalworking Solutions & Services Group In the MSSG segment, we provide consumable metalcutting tools and tooling systems to manufacturing companies in a wide range of industries throughout the world. Metalcutting operations include turning, boring, threading, grooving, milling and drilling. Our tooling systems consist of a steel toolholder and a cutting tool such as an indexable insert or drill made from cemented tungsten carbides, high-speed steel or other hard materials. Other cutting tools include end mills, reamers and taps. We provide solutions to our customers’ metalcutting needs through engineering services aimed at improving their competitiveness. We also manufacture cutting tools, drill bits, saw blades and other tools for the consumer market which are marketed under private label and other proprietary brands. (in thousands) 2002 2001 2000 External sales $ 897,157 $ 999,813 $1,029,395 Intersegment sales 116,467 111,780 134,398  Operating income 97,323 130,558 131,676 Diluted Operating Net Income Earnings (Loss) (in thousands, except per share amounts) Gross Profit Income (Loss) Per Share Reported results – 2002 $ 510,824 $ 91,317 $ (211,908) $ (6.70) Adoption of SFAS No. 142 – – 250,406 7.92 MSSG facility rationalizations  and employee severance 544 10,245 6,958 0.22 J&L business improvement program 529 10,093 6,863 0.22 Electronics facility rationalization  and employee severance 1,654 7,997 5,430 0.17 Loss on divestiture of Strong Tool Company – – 2,390 0.08 Corporate restructuring – 1,075 730 0.02 FSS business improvement program – 635 430 0.01 Deferred financing fees – – 184 0.01 Widia integration costs – 144 98 – Results excluding special charges – 2002 $ 513,551 $ 121,506 $ 61,581 $ 1.95 Reported results – 2001 $ 615,720 $ 156,400 $ 53,288 $ 1.73 Goodwill amortization – 21,022 18,975 0.62 J&L business improvement program 3,643 7,952 4,726 0.16 Loss on divestiture of ATS – – 3,438 0.11 Core-business resize program – 4,583 2,680 0.09 JLK tender offer costs – 2,141 1,268 0.04 Adoption of SFAS No. 133 – – 599 0.02 FSS business improvement program – 571 330 0.01 Reduction of credit facility availability – – 208 0.01 2000 and 1999 restructuring program adjustments – 82 50 – Results excluding special charges  and goodwill amortization – 2001 $ 619,363 $ 192,751 $ 85,562 $ 2.79 Reported results – 2000 $ 637,893 $ 158,779 $ 51,710 $ 1.70 Goodwill amortization – 21,759 19,198 0.63 2000 core-business restructuring programs 100 18,626 10,573 0.35 Environmental remediation – 3,000 1,695 0.06 JLK strategic alternatives costs – 786 444 0.01 Extraordinary loss on debt extinguishment – – 267 0.01 Results excluding special charges  and goodwill amortization – 2000 $ 637,993 $ 202,950 $ 83,887 $ 2.76