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              [html]<thead><tr><td>( Amounts in thousands )</td><td>For the Years</td><td>2003</td><td>2002</td></tr></thead><tbody><tr><tdcolspan="4">2001</td></tr><tr><td>NET CASH FLOWS FROM ( TO ) OPERATING ACTIVITIES :</td><td>Net income</td><td>$ 98.105</td><td>$ 91.360</td></tr><tr><td>$ 74.407</td><td></td><td></td><td></td></tr><tr><td>Noncash items included in net income :</td><td>Depreciation and amortization</td><td>72.772</td><td>68.755</td></tr><tr><td>81.385</td><td>Other postretirement and postemployment benefits</td><td>2.166</td><td>2.246</td></tr><tr><td>1.757</td><td>Deferred income taxes</td><td>( 3.314 )</td><td>2.321</td></tr><tr><td>6.962</td><td></td><td></td><td></td></tr><tr><td>Loss on sales, retirements and impairments of property,</td><td>plant and equipment</td><td>5.415</td><td>8.976</td></tr><tr><td>16.200</td><td>Stock issued to retirement plan</td><td>4.678</td><td>5.750</td></tr><tr><td>—</td><td>Other — net</td><td>391</td><td>2.613</td></tr><tr><td>109</td><td></td><td></td><td></td></tr><tr><td>Changes in working capital, excluding acquisition and disposition :</td><td>Receivables</td><td>1.006</td><td>( 19.414 )</td></tr><tr><td>47.897</td><td>Inventories</td><td>( 3.004 )</td><td>2.348</td></tr><tr><td>35.048</td><td>Prepaid expenses and other current assets</td><td>1.508</td><td>2.431</td></tr><tr><td>( 1.661 )</td><td>Accounts payable and accrued expenses</td><td>( 35.288 )</td><td>37.857</td></tr><tr><td>( 26.149 )</td><td>Income taxes</td><td>2.218</td><td>( 2.370 )</td></tr><tr><td>( 5.957 )</td><td>Increase ( decrease ) in other liabilities</td><td>( 5.379 )</td><td>( 482 )</td></tr><tr><td>( 2.198 )</td><td>Net cash flows from ( to ) operating activities</td><td>141.274</td><td>202.391</td></tr><tr><td>227.800</td><td></td><td></td><td></td></tr><tr><td>NET CASH FLOWS FROM ( TO ) INVESTING ACTIVITIES :</td><td>Capital expenditures</td><td>( 34.842 )</td><td>( 25.885 )</td></tr><tr><td>( 36.851 )</td><td>Proceeds from sale of property, plant and equipment</td><td>1.808</td><td>−</td></tr><tr><td>—</td><td>Capitalized software</td><td>( 2.666 )</td><td>( 65 )</td></tr><tr><td>( 1.757 )</td><td>Additional purchase consideration</td><td>( 5.710 )</td><td>−</td></tr><tr><td>( 8.748 )</td><td>Short - term investments — net</td><td>( 49.326 )</td><td>( 16.377 )</td></tr><tr><td>—</td><td>Purchase of long - term investments</td><td>( 5.742 )</td><td>( 22.493 )</td></tr><tr><td>—</td><td>Sales or maturities of long - term investments</td><td>15.000</td><td>−</td></tr><tr><td>—</td><td>Other — net</td><td>2.</td><td>924</td></tr><tr><td>343</td><td>Net cash flows from ( to ) investing activities</td><td>( 81.478 )</td><td>( 63.896 )</td></tr><tr><td>( 47.013 )</td><td></td><td></td><td></td></tr><tr><td>NET CASH FLOWS FROM ( TO ) FINANCING ACTIVITIES :</td><td>Purchase of HON INDUSTRIES common stock</td><td>( 21.512 )</td><td>( 15.736 )</td></tr><tr><td>( 35.059 )</td><td>Proceeds from long - term debt</td><td>761</td><td>825</td></tr><tr><td>36.218</td><td>Payments of note and long - term debt</td><td>( 20.992 )</td><td>( 35.967 )</td></tr><tr><td>( 87.365 )</td><td>Proceeds from sale of HON INDUSTRIES common stock</td><td>12.063</td><td>2.096</td></tr><tr><td>9.449</td><td>Dividends paid</td><td>( 30.299 )</td><td>( 29.386 )</td></tr><tr><td>( 28.373 )</td><td>Net cash flows from ( to ) financing activities</td><td>( 59.979 )</td><td>( 78.168 )</td></tr><tr><td>( 105.130 )</td><td>Net increase ( decrease ) in cash and cash equivalents</td><td>( 183 )</td><td>60.327</td></tr><tr><td>75.657</td><td>Cash and cash equivalents at beginning of year</td><td>139.165</td><td>78.838</td></tr><tr><td>3.181</td><td>Cash and cash equivalents at end of year</td><td>138.982</td><td>139.165</td></tr><tr><td>78.838</td><td></td><td></td><td></td></tr><tr><td>SUPPLEMENTAL DISCLOSURRS OF CASH FLOW INFORMATION :</td><td></td><td></td><td></td></tr><tr><td>Cash paid during the year for :</td><td>Interest</td><td>$</td><td>3.408</td></tr><tr><td>$ 5.062</td><td>$ 8.646</td><td>Income taxes</td><td>$</td></tr></tbody>
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