//2H7    d 1$&%**'ALLEGHENY TECHNOLOGIES INCORPORATED,'FINANCIAL INFORMATION FOR SUBSIDIARY *'AND GUARANTOR PARENT BALANCE SHEETS'12/31/2001 ^Non-^Guarantor^guarantor'(In millions)^Parent ^Subsidiary ^Subsidiaries ^Eliminations ^ Consolidated 'ASSETS 'Cash and cash equivalents "$ 0.4 "$ 14.3 "$ 19.0 "$ -- "$ 33.7 'Accounts receivable, net  "0.1  "84.8  "189.7  "--  "274.6 'Inventories  "--  "249.2  "259.2  "--  "508.4 'Deferred income taxes  "82.0  "--  "--  "--  "82.00 'Prepaid expenses and other current assets  "0.1  "9.9  "17.4  "--  "27.4'TOTAL CURRENT ASSETS "82.6 "358.2 "485.3 "-- "926.1*'Property, plant, and equipment, net "-- "459.7 "369.2 "-- "828.9'Prepaid pension cost "632.9 "-- "-- "-- "632.9,'Cost in excess of net assets acquired "-- "112.1 "76.3 "-- "188.4'Other assets"1,175.6 "539.3 "337.4"(1,985.4) "66.9'TOTAL ASSETS"$ 1,891.1"$ 1,469.3"$ 1,268.2"$(1,985.4)"$ 2,643.2+'LIABILITIES AND STOCKHOLDERS' EQUITY'Accounts payable"$ 1.4"$ 77.4"$ 76.5"$ --"$ 155.3'Accrued liabilities "413.2 "45.0 "222.5"(512.5) "168.2'Short-term debt and('current portion of long-term debt "-- "0.5 "8.7 "-- "9.2 'TOTAL CURRENT LIABILITIES "414.6 "122.9 "307.7"(512.5) "332.7'Long-term debt "362.5 "370.4 "40.0"(199.9) "573.0& 'Accrued postretirement benefits  "--  "302.4  "203.7  "--  "506.1!'Deferred income taxes !"153.7 !"-- !"-- !"-- !"153.7 "'Other ""15.6 ""28.7 ""88.7 ""-- ""133.0$'TOTAL LIABILITIES $"946.4 $"824.4 $"640.1$"(712.4)$"1,698.5!&'TOTAL STOCKHOLDERS' EQUITY &"944.7 &"644.9 &"628.1&"(1,273.0) &"944.71('TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY("$ 1,891.1("$ 1,469.3("$ 1,268.2("$(1,985.4)("$ 2,643.2*+'ALLEGHENY TECHNOLOGIES INCORPORATED,,'FINANCIAL INFORMATION FOR SUBSIDIARY 4-'AND GUARANTOR PARENT STATEMENTS OF OPERATIONS+.'For the year ended December 31, 2001 0^Non-1^Guarantor1^guarantor2'(In millions) 2^Parent2^Subsidiary2^Subsidiaries2^Eliminations2^Consolidated 4'SALES5'Costs and expenses:5"$ --5"$ 1,062.95"$ 1,065.15"$ --5"$ 2,128.06'Cost of sales 6"(55.4)6"1,058.4 6"859.3 6"--6"1,862.3*7'Selling and administrative expenses 7"(3.4) 7"42.1 7"160.1 7"-- 7"198.8-8'Restructuring and transformation costs 8"9.8 8"61.5 8"2.9 8"-- 8"74.22:'Income (loss) before interest, other income;'and income taxes ;"49.0 ;"(99.1) ;"42.8 ;"-- ;"(7.3)<'Interest expense, net <"16.9 <"10.9 <"1.5 <"-- <"29.31='Other income (expense) including equity in3>'income (loss) of unconsolidated subsidiaries >"(71.2) >"8.9 >"7.6 >"54.9 >"0.2(@'INCOME (LOSS) BEFORE INCOME TAXES @"(39.1)@"(101.1) @"48.9 @"54.9 @"(36.4)%A'Income tax provision (benefit) A"(13.9) A"(43.9) A"29.8 A"16.8 A"(11.2)C'NET INCOME (LOSS)C"$ (25.2)C"$ (57.2)C"$ 19.1C"$ 38.1C"$ (25.2)*F'ALLEGHENY TECHNOLOGIES INCORPORATED@G'FINANCIAL INFORMATION FOR SUBSIDIARY AND GUARANTOR PARENT)H'CONDENSED STATEMENTS OF CASH FLOWS'J'For year ended December 31, 2001 K^Non-L^GuarantorL^guarantorM'(In millions) M^ParentM^SubsidiaryM^SubsidiariesM^EliminationsM^Consolidated+O'CASH FLOWS FROM OPERATING ACTIVITIESO"$ 45.1O"$ 131.5O"$ 42.7O"$ (96.5)O"$ 122.8+P'CASH FLOWS FROM INVESTING ACTIVITIES P"-- P"(17.3) P"(71.4) P"3.7 P"(85.0)+Q'CASH FLOWS FROM FINANCING ACTIVITIES Q"(44.8)Q"(100.4) Q"22.1 Q"92.8 Q"(30.3)*T'ALLEGHENY TECHNOLOGIES INCORPORATED+U'FINANCIAL INFORMATION FOR SUBSIDIARY+V' AND GUARANTOR PARENT BALANCE SHEETSW'12/31/2000 Y^Non-Z^GuarantorZ^guarantor['(In millions) [^Parent[^Subsidiary[^Subsidiaries[^Eliminations[^Consolidated ]'ASSETS ^'Cash and cash equivalents^"$ 0.1^"$ 0.5^"$ 25.6^"$ --^"$ 26.2_'Accounts receivable, net _"-- _"133.8 _"191.5 _"-- _"325.3`'Inventories `"-- `"321.1 `"264.6 `"-- `"585.7a'Deferred income taxes a"61.2 a"-- a"-- a"-- a"61.20b'Prepaid expenses and other current assets b"1.9 b"8.2 b"14.3 b"-- b"24.4d'TOTAL CURRENT ASSETS d"63.2 d"463.6 d"496.0 d"--d"1,022.8*e'Property, plant, and equipment, net e"-- e"556.6 e"315.4 e"-- e"872.0f'Prepaid pension cost f"593.6 f"-- f"-- f"-- f"593.6,g'Cost in excess of net assets acquired g"-- g"115.7 g"78.8 g"-- g"194.5h'Other assetsh"1,285.9 h"509.1 h"349.3h"(2,051.0) h"93.3j'TOTAL ASSETSj"$ 1,942.7j"$ 1,645.0j"$ 1,239.5j"$(2,051.0)j"$ 2,776.2+m'LIABILITIES AND STOCKHOLDERS' EQUITYn'Accounts payablen"$ 2.6n"$ 83.8n"$ 82.9n"$ --n"$ 169.3o'Accrued liabilities o"385.4 o"55.4 o"199.0o"(448.8) o"191.0p'Short-term debt and(q'current portion of long-term debt q"50.0 q"0.5 q"2.7 q"-- q"53.2 s'TOTAL CURRENT LIABILITIES s"438.0 s"139.7 s"284.6s"(448.8) s"413.5t'Long-term debt t"287.0 t"403.0 t"32.7t"(232.1) t"490.6&u'Accrued postretirement benefits u"-- u"304.2 u"221.7 u"-- u"525.9v'Deferred income taxes v"158.7 v"-- v"-- v"-- v"158.7 w'Other w"19.8 w"28.2 w"100.3 w"-- w"148.3y'TOTAL LIABILITIES y"903.5 y"875.1 y"639.3y"(680.9)y"1,737.0!{'TOTAL STOCKHOLDERS' EQUITY{"1,039.2 {"769.9 {"600.2{"(1,370.1){"1,039.21}'TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY}"$ 1,942.7}"$ 1,645.0}"$ 1,239.5}"$(2,051.0)}"$ 2,776.2*'ALLEGHENY TECHNOLOGIES INCORPORATED,'FINANCIAL INFORMATION FOR SUBSIDIARY 4'AND GUARANTOR PARENT STATEMENTS OF OPERATIONS+'For the year ended December 31, 2000 ^Non-^Guarantor^guarantor'(In millions) ^Parent^Subsidiary^Subsidiaries^Eliminations^Consolidated 'SALES'Cost and expenses:"$ --"$ 1,432.8"$ 1,027.6"$ --"$ 2,460.4'Cost of sales "(62.3)"1,269.6 "791.2 "--"1,998.5*'Selling and administrative expenses "13.7 "54.5 "135.5 "-- "203.7-'Restructuring and transformation costs "-- "-- "29.5 "-- "29.52'Income (loss) before interest, other income'and income taxes "48.6 "108.7 "71.4 "-- "228.7'Interest expense, net "20.6 "11.0 "2.8 "-- "34.41'Other income (expense) including equity in3'income (loss) of unconsolidated subsidiaries "194.3 "13.5 "24.2"(217.5) "14.5('INCOME (LOSS) BEFORE INCOME TAXES "222.3 "111.2 "92.8"(217.5) "208.8%'Income tax provision (benefit) "89.8 "44.2 "29.3 "(87.0) "76.3'NET INCOME (LOSS)"$ 132.5"$ 67.0"$ 63.5"$ (130.5)"$ 132.5*'ALLEGHENY TECHNOLOGIES INCORPORATED+'FINANCIAL INFORMATION FOR SUBSIDIARY>'AND GUARANTOR PARENT CONDENSED STATEMENTS OF CASH FLOWS%'For the year December 31, 2000 ^Non-^Guarantor^guarantor'(In millions) ^Parent^Subsidiary^Subsidiaries^Eliminations^Consolidated+'CASH FLOWS FROM OPERATING ACTIVITIES"$ 106.5"$ 78.3"$ 94.1"$ (143.4)"$ 135.5+'CASH FLOWS FROM INVESTING ACTIVITIES "(0.9) "(20.8) "(52.1) "3.8 "(70.0)+'CASH FLOWS FROM FINANCING ACTIVITIES"(105.5) "(57.1) "(67.0) "139.6 "(90.0)*'ALLEGHENY TECHNOLOGIES INCORPORATED+'FINANCIAL INFORMATION FOR SUBSIDIARY4'AND GUARANTOR PARENT STATEMENTS OF OPERATIONS+'For the year ended December 31, 1999 ^Non-^Guarantor^guarantor'(In millions) ^Parent^Subsidiary^Subsidiaries^Eliminations^Consolidated 'SALES"$ --"$ 1,288.4"$ 1,007.7"$ --"$ 2,296.1'Cost of sales "(37.0)"1,157.1 "757.8 "--"1,877.9*'Selling and administrative expenses "66.6 "57.5 "105.0 "-- "229.1''Restructuring and transformation "-- "-- "5.6 "-- "5.62'Income (loss) before interest, other income'and income taxes "(29.6) "73.8 "139.3 "-- "183.5'Interest expense, net "8.3 "2.1 "15.5 "-- "25.9.'Other income (expense) including equity6'in income (loss) of unconsolidated subsidiaries "211.8 "3.2 "21.3"(219.7) "16.62'INCOME (LOSS) BEFORE INCOME TAXES (BENEFIT) "173.9 "74.9 "145.1"(219.7) "174.2%'Income tax provision (benefit) "63.1 "27.2 "52.6 "(79.7) "63.2('INCOME FROM CONTINUING OPERATIONS!'BEFORE EXTRAORDINARY GAINS "110.8 "47.7 "92.5"(140.0) "111.0+'Income from discontinued operations,'net of income taxes "-- "-- "59.6 "-- "59.62'Extraordinary gains on sales of operations,'net of income taxes "-- "-- "129.6 "-- "129.6'Net income"$ 110.8"$ 47.7"$ 281.7"$ (140.0)"$ 300.2*'ALLEGHENY TECHNOLOGIES INCORPORATED@'FINANCIAL INFORMATION FOR SUBSIDIARY AND GUARANTOR PARENT)'CONDENSED STATEMENTS OF CASH FLOWS%'For the year December 31, 1999 ^Non-^Guarantor^guarantor'(In millions) ^Parent^Subsidiary^Subsidiaries^Eliminations^Consolidated+'CASH FLOWS FROM OPERATING ACTIVITIES"$ 325.8"$ 41.5"$ 217.1"$ (481.5)"$ 102.9+'CASH FLOWS FROM INVESTING ACTIVITIES "(2.1) "(53.6) "461.8 "23.6 "429.7+'CASH FLOWS FROM FINANCING ACTIVITIES"(326.5) "(15.8)"(671.7) "457.9"(556.1)%'NOTE 12. EARNINGS PER SHARE --U'The following table sets forth the computation of basic and diluted net income'(loss) per common share:-'(In millions except per share amounts)'Years ended December 31, ^2001 ^2000 ^1999'Numerator:J'Income (loss) from continuing operations before extraordinary gains"$ (25.2)"$ 132.5"$ 111.0?'Income from discontinued operations, net of income taxes "-- "-- "59.6F'Extraordinary gains on sales of operations, net of income taxes "-- "-- "129.6K'Numerator for basic and diluted net income (loss) per common share--'Net income (loss)"$ (25.2)"$ 132.5"$ 300.2'Denominator:'Weighted average shares "80.2 "82.9 "95.3 'Contingent issuable stock "0.1 "0.1 "0.1?'Denominator for basic net income (loss) per common share "80.3 "83.0 "95.4%'Effect of dilutive securities:'Employee stock options "-- "-- "0.5''Dilutive potential common shares "-- "-- "0.5-'Denominator for diluted net income per''common share-- adjusted weighted-'average shares and assumed conversions "80.3 "83.0 "95.90'Basic net income (loss) per common share:J'Income (loss) from continuing operations before extraordinary gains"$ (0.31)"$ 1.60"$ 1.17*'Income from discontinued operations "-- "-- "0.621'Extraordinary gains on sales of operations "-- "-- "1.36/'Basic net income (loss) per common share"$ (0.31)"$ 1.60"$ 3.152'Diluted net income (loss) per common share:J'Income (loss) from continuing operations before extraordinary gains"$ (0.31)"$ 1.60"$ 1.16*'Income from discontinued operations "-- "-- "0.621'Extraordinary gains on sales of operations "-- "-- "1.351'Diluted net income (loss) per common share"$ (0.31)"$ 1.60"$ 3.13