The pro forma amounts reflected above are not representative of the effects on reported net income in future years because, in general, the options granted typically do not vest for several years and additional awards are made each year. The fair value of each option grant is estimated on the grant date using the Black-Scholes option-pricing model with  the following weighted-average assumptions: Effective January 1, 1990, ADTRAN ™ adopted a savings plan (the “Savings Plan”) for the benefit of eligible employees. The Savings Plan allows employees to contribute part of their compensation to the plan on a tax-deferred basis, and requires ADTRAN to contribute an amount equal to 3% of compensation each year for eligible employees who have completed a year of service. The Savings Plan is intended to qualify under Sections 401(a) and 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”), and is intended to be a “safe harbor” 401(k) plan under code Section 401(k)(12). Prior to January 1, 2001, ADTRAN contributed matching contributions in an amount equal to 50% of each eligible employee’s elective deferrals under the Savings Plan, up to 5% of the employee’s compensation for the plan year. Effective January 1, 2001, the plan requires ADTRAN to contribute a “safe harbor” amount equal to 3% of compensation each year for eligible employees who have completed a year of service up to the statutory maximum compensation ($200,000 for 2002). Employees who become eligible for the safe harbor contribution during the plan year are eligible  for 3% of compensation, including compensation earned during any portion of the plan year during which the  employee was eligible to defer, but not yet eligible for the safe harbor contribution. All contributions under the  Savings Plan are 100% vested. Charges to operations for the Savings Plan amounted to approximately  $2,097,000, $2,456,000 and $1,368,000 in 2002, 2001 and 2000, respectively. The following table presents information about the reported sales and gross profit of our reportable segments for each of the years ended December 31, 2002, 2001 and 2000. Asset information by reportable segment is not reported, since ADTRAN does not produce such information internally. ADTRAN operates two reportable segments: (1) Carrier Networks Division and (2) Enterprise Networks Division. The accounting policies of the segments are the same as those described in the “Summary of Significant Accounting Policies” (see Note 1) to the extent that such policies affect the reported segment information. ADTRAN evaluates the perform- ance of its segments based on gross profit; therefore, selling, general and administrative costs, as well as research and development, interest income/expense, and provision for taxes, is reported on an entity-wide basis only. There are  no intersegment revenues. Weighted Average Assumption 8 Employee Benefit Plan 9 Segment Information and Major Customers Sales by Market Segment (In thousands) 32 ADTRAN 2002 Annual Report 2002 2001 2000 Sales Gross Profit Sales Gross Profit Sales Gross Profit Carrier Networks $218,912 $105,277 $238,367 $93,644 $315,228 $146,886 Enterprise Networks 126,813 69,659 148,714 79,677 147,721 82,633 Total $345,725 $174,936 $387,081 $173,321 $462,949 $229,519 2002% 2001% 2000% Dividend yield 0% 0% 0% Expected life (years) 4.21% 5.00% 5.00% Expected volatility 49.6% 53.1% 55.4% Risk-free interest rate 3.30% 4.72% 6.18%