During the 2003 second quarter, we entered into a $325 million four-year senior secured domestic revolving credit facility (“the secured credit facility” or “the facility”). The facility, which replaced a $250 million unsecured facility, is secured by all accounts receivable and inventory of our U. S. operations, and includes capacity for up to $150 million in letters of credit. As of December 31, 2003, there had been no borrowings made under either the secured credit facility or the former unsecured credit facility since the beginning of 2002. Outstanding letters of credit issued under the secured credit facility were approximately $94 million at December 31, 2003.  The secured credit facility limits capital expenditures, investments and acquisitions of businesses, new indebtedness, asset divestitures, payment of dividends, and common stock repurchases which we may incur or undertake during the term of the facility without obtaining permission of the lending group. In addition, the secured credit facility contains a financial covenant, which is not measured unless our undrawn availability under the facility is less than $150 million. This financial covenant, when measured, requires us to maintain a ratio of consolidated earnings before interest, taxes, depreciation and amortization (“EBITDA”) to fixed charges of at least 1.0 to 1.0. EBITDA is adjusted for non-cash items such as income/loss on investments accounted for under the equity method of accounting, non-cash pension expense/income, and that portion of retiree medical and life insurance expenses paid from our VEBA trust. EBITDA is reduced by capital expenditures, as defined in the facility, and cash taxes paid, and increased for cash tax refunds. Fixed charges include gross interest expense, dividends paid and scheduled debt payments. At December 31, 2003, our undrawn availability under the facility, which is calculated including outstanding letters of credit, other uses of credit and domestic cash on hand, was $263 million, and the amount that we could borrow at that date prior to requiring the application of a financial covenant test was $113 million. We expect our undrawn availability will decrease by approximately $22 million in connection with our planned appeal of the unfavorable jury verdict we received on March 10, 2004. During at least the first half of 2004, due to rising raw material prices and improving business volumes, we expect to maintain a lower domestic cash balance from 2003 year end levels, and we may borrow funds from the secured facility from time-to-time to support working capital requirements or investment opportunities. We believe that our available borrowing capacity will be sufficient to meet our requirements. Borrowings under the secured credit facility bear interest at our option at either: (1) the one-, two-, three- or six- month LIBOR rate plus a margin ranging from 2.25% to 3.00% depending upon the level of borrowings; or (2) a base rate announced from time-to-time by the lending group (i.e. the Prime lending rate) plus a margin ranging from 0% to 0.75% depending upon the level of borrowings. In addition, the secured credit facility contains a facility fee of 0.25% to 0.50% depending on the level of undrawn availability. The facility also contains fees for issuing letters of credit of 0.125% per annum and annualized fees ranging from 2.25% to 3.00% depending on the level of undrawn availability under the facility. Our overall borrowing costs under the secured credit facility are not affected by changes in our credit ratings.  18 Annual Report 2003 ATI Debt Capital expenditures for 2003 were $74.4 million compared to $48.7 million in 2002, as spending increased for our two major strategic capital projects: two new electric arc furnaces at our flat-rolled products melt shop located in Brackenridge, PA, and investments to enhance the capabilities at our high performance metals long products rolling mill facility located in Richburg, SC. The first electric arc furnace in the Flat-Rolled Products segment commenced operations in the 2003 fourth quarter. The second furnace is expected to be operational in the second half of 2004, and the high performance metals long products facility is expected to be operational in the second quarter of 2004. Capital expenditures in 2002 were significantly less than the $104.2 million spent in 2001, as we controlled our investment spending due to the uncertain economy and to preserve liquidity. Capital expenditures for 2004 are expected to be between $60 and $70 million, with a large portion representing carryover investment in the two major 2003 projects. Total debt outstanding increased $13.0 million, to $532.1 million at December 31, 2003, from $519.1 million at December 31, 2002. The increase was primarily related to $14.7 million of project financing for the High Performance Metals segment rolling mill enhancement capital project. Total debt outstanding is impacted by the fair value of interest rate swap contracts. During 2003, we terminated some of these interest rate swap contracts associated with our 8.375%, ten-year Notes due 2011, and received $15.3 million in cash. The value of these interest rate contracts that were sold remains a component of the reported value of the Notes, and is recognized ratably as a reduction to interest expense over the remaining term of the Notes. At December 31, 2003 and 2002, the accounting treatment required to adjust currently outstanding swap contracts to fair value resulted in the recognition of net assets of $1.4 million and $18.7 million, respectively, on the balance sheet, included in other assets, with an offsetting increase in long-term debt. The debt to capitalization ratio increased to 75.3% at December 31, 2003 from 53.6% at December 31, 2002. The higher ratio results primarily from the decline in stockholders’ equity arising from 2003 operating results, including the impact of restructuring and litigation charges, and the recognition of a $138.5 million deferred tax valuation allowance, which was partially offset by reductions in our minimum pension liability of $47.0 million.