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## NOTES TO FINANCIAL STATEMENTS 

The Company accounts for its stock-based compensation plans in accordance with APB Opinion No. 25 and related Interpretations as permitted by SFAS No. 123, “Accounting for Stock- Based Compensation.” Accordingly, no compensation cost related to these plans was charged against earnings in 2001, 2000 and 1999. Had compensation cost for these plans been determined consistent with SFAS No. 123, the pro forma impact on earnings per share would have been as follows (thousands of dollars): 

<img src='content_image/96611.jpg'>

The fair value of each option grant was estimated as of the date of grant using the Black- Scholes pricing model. The resulting pro-forma compensation cost is amortized over the vesting period. 

The grant date fair values and assumptions used to determine such impact are as follows: 

<img src='content_image/96609.jpg'>

The range of options outstanding as of July 1, 2001, is as follows: 

<img src='content_image/96607.jpg'>

Purchase plan to provide substantially all U.S. full-time associates an opportunity to purchase shares of its common stock through payroll deductions. A participant may contribute a maximum of $5,200 per calendar year to the plan. On the last day of each month, participant account balances are used to purchase shares of stock at the average of the highest and lowest reported sales prices of a share of the Company’s common stock on the NASDAQ National Market. A total of 100,000 shares may be issued under the plan. Shares issued from treasury stock under the plan totaled 2,695 at an average price of $33.05 during fiscal 2001, 3,317 at an average price of $34.07 during fiscal 2000, and 3,521 at an average price of $28.79 during fiscal 1999. A total of 89,774 shares are available for purchase under the plan as of July 1, 2001. 

## EXPORT SALES 

Export sales are summarized below (thousands of dollars): 

<img src='content_image/96610.jpg'>

These sales were primarily to automotive manufacturing assembly plants in Canada and Mexico. 

## SALES TO LARGEST CUSTOMERS 

Sales to the Company’s largest customers were as follows (thousands of dollars and percent of total net sales): 

<img src='content_image/96608.jpg'>

The Company has an Employee Stock 

