In response to this growth, Federal-Mogul in 2011 invested $348 million to increase manufacturing capacity in existent and greenfield sites drive higher operational efficiency and develop and launch new technology with customers. This is (inaudible) the investment of two years ago.

Let's move to Page 5. Federal-Mogul sales in 2011 as I said were a record level of $6.9 billion. Gross margin improved by $81 million or 8% more than $1 billion. Operating margin was up by 0.6% to 5.8%. SG&A was an all-time low at 10% of sales and EBITDA increased to $702 million, up $31 million versus the previous year.

Federal-Mogul recorded a net loss in the fourth quarter of $239 million and a $90 million net loss for the full year reflecting a Q4 2011 impairment charge of $304 million, primarily due to a difference in the evaluation on selected product lines versus the value established in 2007 and at the time of the Fresh-Start reporting in connection with the Federal-Mogul Chapter 11.

The company's 2011 annual goodwill analysis indicate a decline in the fair value of selected product lines that have been impacted by factor in the US aftermarket. The company believes, however, that increases in its other reporting units such as powertrain, would largely offset the decline. But United States GAAP rules do not permit the recognition of gains in the value of one of the reporting units to offset impairment charges in another reporting unit.

When eliminating the impact of the goodwill impairment, adjusted net income was up for 2011 by $69 million to $203 million and the fourth quarter adjusted net income was $51 million, up from the $38 million in the fourth quarter of last year.

Thermal continues to transform its business to include a broader global portfolio of innovative leading products with higher technology content that improve fuel economy, reduce emissions and enhance vehicle safety. The company believes that this transformation a fundamental part of our sustainable global profitable growth strategy has and will continue to improve operating performance thereby increasing the company's fair value and overall shareholders' value.

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