KENNAMETAL INC.  / AR 2002 37 Consolidated Statements of Shareowners’ Equity Year ended June 30  (in thousands) 2002 2001 2000 Capital Stock Balance at beginning of year $ 42,018 $ 41,500 $ 41,128  Issuance of capital stock 4,428 – – Issuance of capital stock under employee benefit and stock plans 283 518 372  Balance at end of year 46,729 42,018 41,500  Additional Paid-In Capital Balance at beginning of year 353,804 335,314 325,382  Issuance of capital stock 116,156 – – Dividend reinvestment 1,672 1,511 1,250  Issuance of capital stock under employee benefit and stock plans 19,631 16,979 8,682 Balance at end of year 491,263 353,804 335,314  Retained Earnings Balance at beginning of year 540,965 508,733 477,593  Net (loss) income (211,908) 53,288 51,710  Cash dividends to shareowners (21,426) (21,056) (20,570) Balance at end of year 307,631 540,965 508,733  Treasury Stock  Balance at beginning of year (65,963) (55,236) (57,199) Purchase of treasury stock, at cost (12,417) (16,494) – Dividend reinvestment 854 1,284 1,236 Issuance of capital stock under employee benefit and stock plans 5,500 4,483 727 Balance at end of year (72,026) (65,963) (55,236) Unearned Compensation Balance at beginning of year (2,165) (2,814) (3,330) Issuance of capital stock under employee benefit and stock plans (4,671) (1,921) (1,094) Amortization of unearned compensation 1,980 2,570 1,610 Balance at end of year (4,856) (2,165) (2,814) Accumulated Other Comprehensive Loss  Balance at beginning of year (71,890) (47,243) (38,443)  Unrealized (loss) gain on marketable equity securities available-for-sale, net of tax (1,774) (7,379) 7,503  Cumulative effect of change in accounting principle, net of tax – 1,571 – Unrealized losses on derivatives designated and qualified  as cash flow hedges, net of tax (1,372) (2,044) – Reclassification of unrealized gains or losses  on expired derivatives, net of tax (1,902) (2,049) –  Minimum pension liability adjustment, net of tax (945) (2,670) 415  Foreign currency translation adjustments 23,104 (12,076) (16,718)  Other comprehensive income (loss) 17,111 (24,647) (8,800)  Balance at end of year (54,779) (71,890) (47,243)  Total shareowners’ equity, June 30 $ 713,962 $ 796,769 $ 780,254  Comprehensive (Loss) Income Net (loss) income $ (211,908) $ 53,288 $ 51,710  Other comprehensive income (loss) 17,111 (24,647) (8,800)  Comprehensive (loss) income $ (194,797) $ 28,641 $ 42,910  The accompanying notes are an integral part of these statements.