Todd Shipyards Corporation (Todd) operates a shipyard in Seattle, Washington, through a wholly owned subsidiary, Todd Pacific Shipyards Corporation (Todd Pacific). Todd Pacific has historically been engaged in the repair/overhaul, conversion and construction of commercial and military ships. Todd was a private shipyard with clients, including the United States Navy, United States Coast Guard, Military Sealift Command, National Oceanic & Atmospheric Administration, the Washington State Ferry system, the Alaska Marine Highway System, fishing fleets, cargo shippers, tug and barge operators and cruise lines. As of the fiscal year ended April 1, 2007 (fiscal 2007), Todd serviced approximately 84 customers, both as the prime contractor and as a subcontractor to the prime contractor. The Company's two principal customers are the U.S. Navy and the U.S. Coast Guard.