Net cash flows provided by operations increased by 5% in 2002 over 2001. This improvement is predominantly due to relative changes in cash flows associated with accounts receivable and inventories, which more than offset relative changes in cash flows associated with income tax payments and other accruals. While net earnings for 2002 were lower than 2001, the 2002 measure included additional non-cash charges for the cumulative effect of an accounting change and an equipment impairment loss, reducing the cash flow impact of the decline. Net cash flows used for investing activities decreased by $13.5 million in 2002 as compared to 2001. This change primarily resulted from business acquisition and divestiture activities of Industrial Controls. We made payments associated with Industrial Controls’ acquisitions and divestitures totaling $25.8 million in 2002 compared to $35.2 million in 2001. We also reduced Aircraft Engine Systems’ capital expenditures by $2.7 million. Net cash flows used in financing activities were approximately the same in 2002 as in 2001. As previously indicated, we received proceeds from long- term debt totaling $75 million in 2002, which we principally used to repay debt that was due in 2002 and 2003. Under the terms of the new senior notes, the new debt is payable in seven equal annual installments beginning in 2006. Outlook: Future cash flows from operations and available revolving lines of credit are expected to be adequate to meet our cash requirements over the next twelve months. Our financing activities in 2002 have enhanced our liquidity for several years by delaying Net cash flows used in financing activities decreased by $47.8 million in 2001 from 2000. This decrease is primarily associated with lower levels of debt reductions due to two business acquisitions, despite higher levels of operating cash flows. In 2000, we also used proceeds received from the sale of the turbine control retrofit business to reduce debt. Net cash flows for investing activities changed by $77.4 million in 2001 as compared to 2000. This change resulted from Industrial Controls’ business acquisition and divestiture activities. In 2001, we made payments associated with two acquisitions totaling $31.2 million and made payments associated with the prior year’s sale of our turbine control retrofit business of $4.0 million. In 2000, we received proceeds from the sale of our retrofit business of $41.7 million. Net cash flows provided by operations increased by 58% in 2001 over 2000. This improvement is predominantly due to increased net earnings, exclusive of the pretax gain from the sale of our turbine control retrofit business in 2000. For purposes of preparing the statement of consolidated cash flows, the proceeds from the sale of the retrofit business were not considered an operating activity, but the associated income tax payments were. principal payment requirements for $60 million of debt from the 2002-2003 timeframe to the 2006-2012 timeframe, and by adding an additional $15 million of debt to the extended timeframe. We also expect to replace the current $150 million revolving line of credit facility, none of which was outstanding at September 30, 2002, with a new facility prior to its expiration on June 15, 2003. Despite these factors, it is possible business acquisitions could be made in the future that would require amendments to existing debt agreements and the need to obtain additional financing. 2001 Compared to 2000 2002 Compared to 2001 and Outlook Cash Flows In thousands for the year ended September 30, 2002 2001 2000 Net cash provided by operating activities $91,394 $87,293 $55,717 Net cash provided by (used in) investing activities (48,211) (61,699) 15,736 Net cash used in financing activities (24,514) (23,521) (71,299) 25