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The secured credit facility limits capital expenditures, investments and acquisitions of businesses, new indebtedness, asset divestitures, payment of dividends, and common stock repurchases which the Company 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 if the Company’s undrawn availability under the facility is equal to or more than $150 million. This financial covenant, when measured, requires the Company 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 the Company’s 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, the Company’s 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 the Company could borrow at that date prior to requiring the application of a financial covenant test was $113 million. The Company expects its undrawn availability will decrease by approximately $22 million in connection with the Company’s planned appeal of the unfavorable jury verdict received on March 10, 2004. 

Borrowings under the secured credit facility bear interest at the Company’s 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. The Company’s overall borrowing costs under the secured credit facility are not affected by changes in the Company’s credit ratings. 

The Company’s subsidiaries also maintain credit agreements with various foreign banks, which provide for borrowings of up to approximately $57 million. At December 31, 2003, the Company had approximately $21 million of available borrowing capacity under these foreign credit agreements. These agreements provide for annual facility fees of up to 0.20%. 

The Company has no off-balance sheet financing relationships with variable interest entities, structured finance entities, or any other unconsolidated entities. At December 31, 2003, the Company has not guaranteed any third- party indebtedness. 

## Note 4. Supplemental Financial Statement Information — 

Cash and cash equivalents at December 31, 2003 and 2002 were as follows: 

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The estimated fair value of financial instruments at December 31, 2003 and 2002 was as follows: 

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(a) Includes fair value adjustments for interest rate swap contracts of $15.2 million and $18.7 million at December 31, 2003 and December 31, 2002, respectively. 

