Statements of Consolidated Earnings Woodward Governor Company and Subsidiaries Year Ended September 30, (In thousands except per share amounts) 2002 2001 2000  Net sales $679,991 $678,791 $597,385  Costs and expenses: Cost of goods sold 539,130 511,027 453,538 Selling, general, and administrative expenses 58,765 67,437 77,463 Amortization of intangible assets 3,748 7,055 6,418 Interest expense 5,109 7,554 10,897 Interest income (635) (967) (770) Other expense—net 3,194 730 1,247  Gain on sale of business —  — (25,500)  Total costs and expenses, net of gain 609,311 592,836 523,293  Earnings before income taxes and cumulative effect of accounting change 70,680 85,955 74,092  Income taxes 25,510 32,887 27,116  Earnings before cumulative effect of accounting change 45,170 53,068 46,976  Cumulative effect of accounting change, net of income taxes (2,489) — —  Net earnings $ 42,681 $ 53,068 $ 46,976 Reconciliation of reported to adjusted earnings:  Reported earnings before cumulative effect of accounting change $ 45,170 $ 53,068 $ 46,976  Goodwill-related amortization, net of income taxes — 2,875 2,660  Adjusted earnings before cumulative effect of accounting change $ 45,170 $ 55,943 $ 49,636  Reported net earnings $ 42,681 $ 53,068 $ 46,976  Goodwill-related amortization, net of income taxes — 2,875 2,660  Adjusted net earnings $ 42,681 $ 55,943 $ 49,636 Statements of Consolidated Earnings continued on next page. 28