H O N I N D U S T R I E S I n c . a n d S U B S I D I A R I E S C O N S O L I D A T E D B A L A N C E S H E E T S (Amounts in thousands of dollars and shares except par value) As of Year-End  2003 2002 2001 ASSETS CURRENT ASSETS Cash and cash equivalents  $ 138,982 $  139,165  $ 78,838 Short-term investments  65,208 16,378  – Receivables  181,459 181,096   161,390 Inventories  49,830 46,823  50,140 Deferred income taxes  14,329 10,101  14,940 Prepaid expenses and other current assets  12,314 11,491  14,349 Total Current Assets  462,122 405,054   319,657 Property, Plant, and Equipment  312,368 353,270   404,971 Goodwill 192,086 192,395   214,337 Other Assets  55,250 69,833  22,926 Total Assets  $ 1,021,826 $ 1,020,552  $ 961,891 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses  $  211,236 $  252,145  $ 216,184 Income taxes  5,958 3,740  6,112 Note payable and current maturities of long-term debt  26,658 41,298  6,715 Current maturities of other long-term obligations  1,964 1,497  1,432 Total Current Liabilities  245,816 298,680   230,443 Long-Term Debt  2,690 8,553  79,570 Capital Lease Obligations  1,436 1,284  1,260 Other Long-Term Liabilities  24,262 28,028  18,306 Deferred Income Taxes  37,733 37,114  39,632 Commitments and Contingencies SHAREHOLDERS’ EQUITY Preferred stock – $1 par value Authorized: 2,000 Issued: None  Common stock – $1 par value  58,239 58,374  58,673 Authorized: 200,000 Issued and outstanding 2003 –58,239; 2002 –58,374; 2001 –58,673  Additional paid-in capital  10,324 549  891 Retained earnings  641,732 587,731   532,555 Accumulated other comprehensive income  (406) 239  561 Total Shareholders’ Equity  709,889 646,893   592,680 Total Liabilities and Shareholders’ Equity  $ 1,021,826 $ 1,020,552  $ 961,891 The accompanying notes are an integral part of the consolidated financial statements. 40