12. Comprehensive Income 13. Common Stock 14. Preferred Stock 15. Stock Plans Comprehensive income includes all changes in equity during a period except those resulting from investment by, and distributions to, stockholders. For the Company, comprehensive income includes net income and other non-owner changes to equity, which comprises foreign currency translation adjustments, deferred gains and losses related to certain derivative instruments and the minimum pension liability adjustment. The components of accumulated other non-owner changes to equity follow: In 2002, 2001 and 2000, 414,944 shares, 290,591 shares and 351,237 shares, respectively, of common stock were issued from treasury for the exercise of stock options, various other incentive awards, purchases by the Employee Stock Purchase Plan and matching contributions to the RSP.  In addition, 119,048 shares and 17,500 shares were issued from treasury in 2002, in connection with the acquisition of Spectrum and for the payment of charitable contributions, respectively. In 2002, 2001 and 2000, the Company acquired 56,888 shares, 436,502 shares and 594,406 shares, respectively, of the Company’s common stock at a cost of $1,147, $8,798 and $9,197, respectively. These amounts exclude shares issued and reacquired in connection with certain stock-for-stock exercises under the Company’s stock option plans. These reacquired shares were placed in treasury. The Company has a shareholder rights plan under which each share of common stock contains one right (Right) that entitles the holder to purchase one one-hundredth of a share of Series A Junior Participating Preferred Stock for $200. The Rights generally will not become exercisable unless and until, among other things, any person or group acquires beneficial ownership of 35% or more of the outstanding stock. The Rights are generally redeemable at $0.01 per Right at any time until 10 days following a public announcement that a 35% or greater position in the Company’s common stock has been acquired and will expire, unless earlier redeemed or exchanged, on  December 23, 2006. If, following the acquisition of 35% or more of the outstanding shares of the Company’s common stock, the Company is acquired in a merger or other business combination, or 50% or more of the Company’s assets or earnings power is sold or transferred, each outstanding Right becomes exercisable for common stock or other securities of the acquiring entity having a value of twice the exercise price of the Right. At December 31, 2002 and 2001, the Company had 3,000,000 shares of preferred stock authorized, none of which were outstanding.  Most U.S. salaried and non-union hourly employees are eligible to participate in the Company’s 401(k) plan. Effective April 1, 2001, the 401(k) plan, previously called the Barnes Group Inc. Guaranteed Stock Plan (GSP), was amended and renamed the Barnes Group Inc. Retirement Savings Plan (RSP). The RSP continues to provide for the investment of employer and employee contributions in the Company’s common stock and also provides other investment alternatives for employee contributions. Employee contributions to the RSP for investment in the Company’s PAGE 33 Back to Table of Contents BARNES GROUP INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Balance, January 1, 2000 2000 Change  December 31, 2000  2001 Change December 31, 2001 2002 Change December 31, 2002 Foreign Currency Translation Adjustments $ (23,887) 3,070 (20,817) (1,244) (22,061) 1,236 $^{$}$(20,825) Unrealized Losses on Hedging Activities $ — — — (662) (662) (502) $ (1,164) Minimum Pension Liability Adjustment $ — — — — — (16,822) $ (16,822) Total $ (23,887) 3,070 (20,817) (1,906) (22,723) (16,088) $^{$}$(38,811)