(Dollars in thousands) Business Segment Information By Geographic Area  (c) 2001 2000 1999 Net Sales:  North America $ 4,561,217 $ 4,075,865 $ 3,704,895 International 1,418,387 1,309,753 1,281,801 $ 5,979,604 $ 5,385,618 $ 4,986,696 Long-Lived Assets: North America $ 1,186,834 $ 969,788 $ 873,222  International 361,854 371,127 327,647 $ 1,548,688 $ 1,340,915 $ 1,200,869 Other Segment 2001 2000 1999  Operating income as a percent of sales  7.4% 8.0% 8.5% Return on average assets 11.7%  15.0% 15.4% MANAGEMENT’S DISCUSSION & ANALYSIS, continued Sales declined 4.8 percent in 2001 following an increase in 2000 of 5.4 percent from 1999. Sales in 2001 reflect lower demand in the automotive market while the increase in sales in 2000 reflected higher volume in the automotive market. Operating income declined 12.0 percent in 2001 after 2000 operating income remained unchanged from 1999. The decline in operating income in 2001 was attributable to the lower volume and pricing pressure. Backlog was $109.1 million at June 30, 2001, compared to $100.2 million at the end of 2000 and $85.2 million at the end of 1999. Assets increased 22.9 percent in 2001 after an increase of 2.3 percent in 2000. Assets in 2001 include those from a business classified as held for sale in 2000. The Other Segment consists of several business units which produce motion- control and fluid power system components for use primarily in the transportation industry and a business unit which designs and manufactures custom-engineered buildings. 25 (c) Net sales are attributed to countries based on the location of the selling unit. North America includes the United States, Canada and Mexico. No country other than the United States represents greater than 10% of consolidated sales. Long-lived assets are comprised of property, plant and equipment based on physical location. (b) Includes value of net plant and equipment at the date of acquisition of acquired companies accounted for by the purchase method (2001 - $141,411; 2000 - $119,889; 1999 - $17,686). (a) Corporate assets are principally cash and cash equivalents, domestic deferred income taxes, investments, benefit plan assets, headquarters facilities, assets held for sale and the major portion of the Company’s domestic data processing equipment. Corporate assets declined 2.8 percent in 2001 and increased 180.9 percent in 2000. The 2001 and 2000 amounts include assets held for sale as separately identified on the Consolidated Balance Sheet. The increase in 2000 is due to an increase in qualified and non-qualified benefit plan assets including those from acquisitions. Certain prior period amounts have been reclassified to conform to the current year presentation. The accounting policies of the business segments are the same as those described in the Significant Accounting Policies footnote except that the business segment results are prepared on a management basis that is consistent with the manner in which the Company disaggregates financial information for internal review and decision-making. By Industry 2001 2000 1999  Net Sales: Industrial: North America $ 2,941,697  $ 2,486,372 $ 2,127,895 International 1,275,516 1,175,880 1,151,172 Aerospace 1,205,624 1,138,328 1,152,390 Other 556,767 585,038 555,239 $ 5,979,604 $ 5,385,618 $ 4,986,696 Segment Operating Income: Industrial: North America $ 322,786 $ 379,251 $ 289,599 International 92,561 84,317 80,489 Aerospace 218,851 175,710 177,213 Other 41,451 47,084 47,416 Total segment operating income 675,649 686,362 594,717  Corporate administration 85,738  58,210 54,176 Income before interest expense and other 589,911  628,152 540,541 Interest expense 90,362 59,183 63,697 Other (34,047) 6,782 (850) Income before income taxes $ 533,596 $ 562,187 $ 477,694 Identifiable Assets: Industrial $ 3,528,652 $ 2,889,895 $ 2,346,835 Aerospace 710,555  709,731 789,174 Other 390,006 317,462 310,311 4,629,213  3,917,088 3,446,320 Corporate (a) 708,448 729,211 259,568 $ 5,337,661 $ 4,646,299 $ 3,705,888 Property Additions: (b) Industrial $ 412,042 $ 307,360 $ 190,352 Aerospace 37,152 20,720 36,993 Other 14,935 22,291 18,878 Corporate 12,030 1,585 $ 476,159 $ 350,371 $ 247,808 Depreciation: Industrial $ 160,577 $ 126,377 $ 124,857 Aerospace 19,729 21,342 19,523 Other 16,262 15,701 16,057 Corporate 3,702 3,936 4,140 $ 200,270 $ 167,356 $ 164,577