A M P H E N O L C O R P O R A T I O N 2 0 0 4 A N N U A L R E P O R T  Note 7—Reportable Business Segments and International Operations  The Company has two reportable business segments: interconnect products and assemblies and cable products. The  interconnect products and assemblies segment produces connectors and connector assemblies primarily for the communications,  aerospace, industrial and automotive markets. The cable products segment produces coaxial and flat ribbon cable and related  products primarily for communication markets, including cable television. The accounting policies of the segments are the same as  those for the Company as a whole and are described in Note 1 herein. The Company evaluates the performance of business units on,  among other things, profit or loss from operations before interest expense, headquarters' expense allocations, income taxes and  nonrecurring gains and losses. The Company's operating segments are an aggregation of business units that have similar production  processes and products. Interconnect products and  assemblies  Cable products  Total  2004  2003  2002 2004 2003 2002 2004  2003 2002 Net sales   —external  $1,333,838 $1,071,968  $892,309 $196,608 $167,536 $169,693 $1,530,446 $1,239,504 $1,062,002  —intersegment  2,311  1,891  1,840 14,369 11,569 8,864 16,680 13,460 10,704 Depreciation and  amortization 32,427 30,470 28,369 5,969 6,103 6,005 38,396 36,573 34,374 Segment operating  income 271,327 196,377 150,881 24,631 20,420 28,820 295,958 216,797 179,701 Segment assets  605,645  512,923  436,682 74,634 78,076 80,898 680,279 590,999 517,580 Additions to property,  plant and equipment  43,152  28,992  16,645 1,700 1,065 2,171 44,852 30,057 18,816 2004  2003  2002  Segment operating income  $295,958  $216,797  $179,701  Interest expense  (22,540)  (29,505)  (45,930)  Headquarters' expense and other net expenses (25,977) (19,364) (11,109) Expense for early extinguishment of debt  -  (10,367)  -  Consolidated income before taxes  $247,441  $157,561  $122,662  2004  2003  2002  Segment assets  $ 680,279  $ 590,999  $ 517,580  Goodwill 545,411 516,335 486,841 Other assets  81,021  74,050  74,487  Consolidated total assets  $1,306,711  $1,181,384  $1,078,908  52  Reconciliation of segment assets to consolidated total assets: Reconciliation of segment operating income to consolidated income before taxes: