Under the required transitional provisions of SFAS No. 142, the Company identified and evaluated its reporting units for impairment as of April 1, 2002, the first day of the Company’s fiscal year 2003, using a two- step process and engaged an outside valuation consultant to assist in this process. The first step involved identifying the reporting units with carrying values, including goodwill, in excess of fair value. The fair value of goodwill was estimated using a combination of a discounted cash flow valuation model, incorporating a discount rate commensurate with the risks involved for each reporting unit, and a market approach of guideline companies in similar transactions. As a result of completing the first step of the process, it was determined that there was an impairment of goodwill at the date of adoption. This was due primarily to market conditions and relatively low levels of sales. In the second step of the process, the implied fair value of the affected reporting unit’s goodwill was compared with its carrying value in order to determine the amount of impairment, that is, the amount by which the carrying amount exceeded the fair value. As a result, the Company recorded an impairment charge of $36.7 million, before tax, which was recorded as a cumulative effect of change in accounting principle in the first quarter of Fiscal 2003 and is reflected in the accompanying Consolidated Statement of Operations for the year ended March 31, 2003. The goodwill impairment was comprised of $25.6 million for IED and $11.0 million for the operations of Aprisa. Both of these businesses are reported as discontinued operations. Pro forma information, assuming the non-amortization provisions of SFAS No. 142 were adopted in the prior years, is as follows: The Company has investments in affiliates accounted for using the equity method and equity securities accounted for using the cost method. At March 31, 2003 and 2002, Investments in Affiliated Companies consisted of the following: The Company holds publicly traded equity securities in Eurodis, a European distributor of electronic compo- nents headquartered in London, England. This investment was acquired as a strategic investment and is ac- counted for as an available-for-sale security. Management continually monitors the change in the value of its 40 (Dollars in Thousands) 2003 2002 Magirus AG (‘‘Magirus’’) -20% equity investment $ 12,141 $ 10,517 Eurodis Electron PLC (‘‘Eurodis’’) — at market 2,403 12,604 Other non-marketable equity securities — at cost 5,048 5,048 $ 19,592 $ 28,169 Year Ended March 31 (Dollars in Thousands, Except Per Share Data) 2003 2002 2001 Loss from Continuing Operations, as reported $(26,060) $(2,911) $(18,316) Add: Goodwill amortization, net of tax — 3,117 3,407 Income (loss) from Continuing Operations, pro forma $(26,060) $ 206 $(14,909) Net income (loss), as reported $(42,078) $(7,047) $ 34,576 Add: Goodwill amortization, net of tax — 3,117 3,407 Net income (loss), pro forma $(42,078) $(3,930) $ 37,983 Per Share Data: Loss from Continuing Operations, as reported — basic and diluted $ (0.96) $ (0.11) $ (0.68) Add: Goodwill amortization, net of tax — 0.12 0.12 Income (loss) from Continuing Operations, pro forma — basic and diluted $ (0.96) $ 0.01 $ (0.56) Net income (loss), as reported — basic and diluted $ (1.54) $ (0.26) $ 1.29 Add: Goodwill amortization, net of tax — 0.12 0.12 Net income (loss), pro forma — basic and diluted $ (1.54) $ (0.14) $ 1.41 5 INVESTMENTS IN AFFILIATED COMPANIES