Monitored Services Protection One and Protection One Europe comprise our monitored services business segment. The results discussed below reflect monitored services on a stand-alone basis. These results take into consideration Protection One’s minority interest of approximately 12% at December 31, 2002, 13% at December 31, 2001, and 15% at December 31, 2000. As discussed above, our monitored services operations will be reported as discontinued operations as required by of SFAS No. 144 during the first quarter of 2003. Details concerning EBIT and assets attributable to our monitored services segment are as follows: 2002 compared to 2001: Sales decreased $60.4 million due primarily to a decline in the average customer base and the renewal of existing customers for extended contract periods with a lower monthly rate. The monitored services segment experienced a net decline of 62,656 customers in 2002, which is attributable primarily to customer attrition. Although net customers decreased for the year, Protection One had a favorable decline in attrition in 2002 compared to 2001 due to the reasons discussed in “— Other Information — Monitored Services — Attrition” below. Protection One expects that the decline in its customer base will continue until the efforts it is making to generate new accounts and reduce attrition become more successful than they have been to date. Until it is able to reverse this trend, net losses of customer accounts will materially and adversely affect its business, financial condition and results of operations. For 2003, Protection One’s focus is on improving returns on invested capital by realizing economies of scale from increasing customer density in the largest urban markets in the United States. It plans to accomplish this by improving customer retention. See “— Other Information — Monitored Services — Attrition” below for additional information. Cost of sales decreased $11.9 million due primarily to a reduction of telecommunication costs and consolidation of Protection One’s monitoring functions. Operating expenses increased $310.4 million due primarily to the 2002 impairment charges. Partially offsetting the increase in operating expenses was a decline in depreciation and amortization expense, which reflects a reduction in customer account amortization related to the impairment charges and elimination of goodwill amortization due to the implementation of SFAS No. 142. Also partially offsetting the increase in operating expenses were reductions in professional fees and outside services because of the completion of system integration projects and lower legal costs, a decrease in wage expense because of consolidation efforts, and a decline in bad debt expense and collection costs. As a result of the decline in gross profit and the increase in operating expenses, loss before interest and taxes increased		$292.8 million. Monitored services’ total assets decreased approximately $1.2 billion primarily as a result of the impairment of goodwill and customer account assets. 2001 compared to 2000: Sales decreased $121.3 million due primarily to a decline in the monitored services segment’s average customer base and the disposition of certain operations. The monitored services segment experienced a net decline of 272,549 customers in 2001. This decrease in customers is attributable primarily to customer attrition and a decrease of 63,875 customers due to the disposition of operations. Additionally, the number of Protection One customers declined by 62,443 customers due to the conversion of accounts to a common billing and monitoring system. This new system reports number of customer accounts on the basis of one customer for every location provided service even if Protection One has separate contracts to provide multiple services at a given location. Previous systems utilized a number of different billing and monitoring software programs, some of which would count each separate contracted service as a separate account regardless of location. Loss before interest and taxes increased $71.4 million due primarily to the decrease in sales. Cost of sales decreased $41.7 million due primarily to the discontinuation of Protection One’s patrol services in May 2001, consolidation of Protection One customer monitoring facilities, a reduction of Protection One’s telecommunications expense, consolidation of monitoring and customer service functions and the decline in customer accounts caused by dispositions of operations and attrition. See “— Other Information — Monitored Services — Attrition” below for additional information.      Other Other includes an approximate 45% interest in ONEOK at December 31, 2002, and other investments in the aggregate not material to our business or results of operations. Details concerning EBIT attributable to this segment are as follows: 2002 compared to 2001: Sales shown above are from a paging services business that was sold in the first quarter of 2002. EBIT increased approximately $44.6 million primarily as a result of greater investment earnings, which increased $32.8 million as a result of the receipt of a one-time payment of approximately $14.2 million related to a partial recovery of an investment and the $11.1 million write down in 2001 of the cost basis to the fair value of certain securities held for investment. We also had a $16.3 million decline on the loss on the extinguishment of debt. 2001 compared to 2000: EBIT decreased approximately $145.3 million due to various events affecting investment earnings in 2001 and 2000. Investment earnings in 2001 included $41.8 million of ONEOK investment income and a $5.3 million gain related to the sale of an