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6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; &lt;I&gt;Principles
of Consolidation&amp;#160;&amp;#150; &lt;/I&gt;The unaudited condensed consolidated
financial statements include the accounts of Northrop Grumman Corporation
and its subsidiaries (the company). All material intercompany accounts, transactions,
and profits are eliminated in consolidation. &lt;/DIV&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; The accompanying
unaudited condensed consolidated financial statements of the company have
been prepared by management in accordance with the instructions to &lt;FONT
style="white-space: nowrap"&gt;Form&amp;#160;10-Q&lt;/FONT&gt; of the Securities
and Exchange Commission. These statements include all adjustments of normal
recurring nature considered necessary by management for a fair presentation
of the condensed consolidated financial position, results of operations, and
cash flows. The results reported in these financial statements are not necessarily
indicative of results that may be expected for the entire year. These financial
statements should be read in conjunction with the audited consolidated financial
statements, including the notes thereto contained in the company&amp;#146;s
2008 Annual Report on &lt;FONT style="white-space: nowrap"&gt;Form&amp;#160;10-K,&lt;/FONT&gt;
updated by the Current Report on &lt;FONT style="white-space: nowrap"&gt;Form&amp;#160;8-K&lt;/FONT&gt;
filed on April&amp;#160;22, 2009 (2008 &lt;FONT style="white-space: nowrap"&gt;Form&amp;#160;10-K).&lt;/FONT&gt;
&lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; The quarterly information is labeled using a calendar
convention; that is, first quarter is consistently labeled as ending on March&amp;#160;31,
second quarter as ending on June&amp;#160;30, and third quarter as ending
on September&amp;#160;30. It is management&amp;#146;s long-standing practice
to establish actual interim closing dates using a &amp;#147;fiscal&amp;#148;
calendar, which requires the businesses to close their books on a Friday near
these quarter-end dates in order to normalize the potentially disruptive effects
of quarterly closings on business processes. The effects of this practice
only exist within a reporting year. &lt;/DIV&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; &lt;I&gt;Accounting
Estimates&amp;#160;&amp;#150; &lt;/I&gt;The accompanying unaudited condensed
consolidated financial statements have been prepared in conformity with accounting
principles generally accepted in the United States of America (U.S.&amp;#160;GAAP).
The preparation thereof requires management to make estimates and judgments
that affect the reported amounts of assets and liabilities and the disclosure
of contingencies at the date of the financial statements as well as the reported
amounts of revenues and expenses during the reporting period. Estimates have
been prepared on the basis of the most current and best available information
and actual results could differ materially from those estimates. &lt;/DIV&gt;
&lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; &lt;I&gt;Accumulated Other Comprehensive Loss&amp;#160;&amp;#150;
&lt;/I&gt;The components of accumulated other comprehensive loss are as follows:
&lt;/DIV&gt; &lt;DIV style="margin-top: 3pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0"
style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt;&lt;!-- TABLE 01 --&gt; &lt;!-- Table Width Row BEGIN
--&gt; &lt;TR style="font-size: 1pt" valign="bottom"&gt; &lt;TD width="77%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=01 type=maindata --&gt; &lt;TD width="2%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=gutter --&gt; &lt;TD width="3%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=body --&gt; &lt;TD width="3%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=hang1 --&gt; &lt;TD width="3%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=gutter --&gt; &lt;TD width="5%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=body --&gt; &lt;TD width="5%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=hang1 --&gt; &lt;/TR&gt; &lt;!-- Table Width Row
END --&gt; &lt;TR style="font-size: 10pt" valign="bottom" align="center"&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt;
&lt;B&gt;June&amp;#160;30,&lt;BR&gt; &lt;/B&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt; December&amp;#160;31,&lt;BR&gt;
&lt;/TD&gt; &lt;/TR&gt; &lt;TR style="font-size: 8pt" valign="bottom" align="center"&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &lt;I&gt;&lt;FONT style="font-size:
10pt"&gt;$ in millions&lt;/FONT&gt;&lt;/I&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt; &lt;B&gt;&lt;FONT
style="font-size: 10pt"&gt;2009&lt;/FONT&gt;&lt;/B&gt; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt;
&lt;FONT style="font-size: 10pt"&gt;2008 &lt;/FONT&gt; &lt;/TD&gt; &lt;/TR&gt;
&lt;TR valign="bottom" style="background: #CCEEFF"&gt; &lt;TD align="left"
valign="bottom" style="border-top: 1px solid #000000"&gt; &lt;DIV style="text-indent:
-10pt; margin-left: 10pt"&gt; Cumulative translation adjustment &lt;/DIV&gt;
&lt;/TD&gt; &lt;TD style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000"&gt;
&lt;B&gt;$&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &lt;B&gt;34&lt;/B&gt; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
1px solid #000000"&gt; $ &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; 10 &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;/TR&gt; &lt;TR valign="bottom"&gt; &lt;TD align="left" valign="bottom"&gt;
&lt;DIV style="text-indent: -10pt; margin-left: 10pt"&gt; Unrealized gain
(loss) on marketable securities and cash flow hedges, net of tax &lt;/DIV&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom" style="background: #CCEEFF"&gt;
&lt;TD align="left" valign="bottom"&gt; &lt;DIV style="text-indent: -10pt;
margin-left: 20pt"&gt; (expense) benefit of $(3) as of June&amp;#160;30, 2009
and $20 as of December&amp;#160;31, 2008 &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;3&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; (32
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; ) &lt;/TD&gt; &lt;/TR&gt;
&lt;TR valign="bottom"&gt; &lt;TD align="left" valign="bottom"&gt; &lt;DIV
style="text-indent: -10pt; margin-left: 10pt"&gt; Unamortized benefit plan
costs, net of tax benefit of $2,286 as of June&amp;#160;30, 2009 and $2,358
as of December&amp;#160;31, 2008 &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;(3,514&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &lt;B&gt;)&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
(3,620 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; ) &lt;/TD&gt;
&lt;/TR&gt; &lt;TR style="font-size: 1pt"&gt; &lt;TD nowrap align="left" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom"
style="background: #CCEEFF"&gt; &lt;TD align="left" valign="bottom"&gt; &lt;DIV
style="text-indent: -10pt; margin-left: 10pt"&gt; Total accumulated other
comprehensive loss &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;$&lt;/B&gt; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;(3,477&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &lt;B&gt;)&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; $ &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
(3,642 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; ) &lt;/TD&gt;
&lt;/TR&gt; &lt;TR style="font-size: 1pt"&gt; &lt;TD nowrap align="left" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom" style="border-top: 2px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;/TABLE&gt; &lt;DIV
align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size:
10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"&gt;
&lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; &lt;I&gt;Subsequent Events&amp;#160;&amp;#150; &lt;/I&gt;Management
has evaluated subsequent events after the balance sheet date through the financial
statement issuance date for appropriate accounting and disclosure. &lt;/DIV&gt;
&lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; &lt;I&gt;Financial Statement Reclassifications&amp;#160;&amp;#150;
&lt;/I&gt;Certain amounts in the prior period notes to the condensed consolidated
financial statements have been reclassified to reflect the business operations
realignments effective in 2009 (see Note&amp;#160;6). &lt;/DIV&gt; &lt;/DIV&gt;&lt;!--
END PAGE WIDTH --&gt; </noc:OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlockAndComprehensiveIncomeDisclosureTextblock>
<us-gaap:ScheduleOfNewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock
contextRef="FY2009Q2YTD">&lt;!-- PAGEBREAK --&gt; &lt;DIV style="width: 87%;
margin-left: 6%"&gt;&lt;!-- BEGIN PAGE WIDTH --&gt; &lt;DIV style="margin-top:
9pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;TABLE width="100%" border="0"
cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial,
Helvetica; color: #000000; background: #FFFFFF"&gt; &lt;TR&gt; &lt;TD width="3%"&gt;&lt;/TD&gt;
&lt;TD width="97%"&gt;&lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="top"&gt; &lt;TD&gt;
&lt;B&gt;&lt;FONT style="font-family: 'Times New Roman', Times"&gt;2.&amp;#160;&amp;#160;&lt;/FONT&gt;&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &lt;A name='109'&gt;&lt;/A&gt;&lt;B&gt;&lt;FONT style="font-family:
'Times New Roman', Times"&gt;NEW ACCOUNTING STANDARDS&lt;/FONT&gt;&lt;/B&gt;
&lt;/TD&gt; &lt;/TR&gt; &lt;/TABLE&gt; &lt;DIV style="margin-top: 6pt; font-size:
1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left: 0%;
margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000;
background: #FFFFFF"&gt; &lt;B&gt;&lt;FONT style="font-family: 'Times New
Roman', Times"&gt;Adoption of New Accounting Standards&lt;/FONT&gt;&lt;/B&gt;
&lt;/DIV&gt; &lt;DIV align="left" style="margin-left: 0%; margin-right: 0%;
text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color:
#000000; background: #FFFFFF"&gt; The disclosure requirements of the previously
deferred provisions of Statement of Financial Accounting Standards (SFAS)
No.&amp;#160;157&amp;#160;&amp;#150; &lt;I&gt;Fair Value Measurements &lt;/I&gt;for
nonfinancial assets and liabilities, are presented in Note&amp;#160;3. &lt;/DIV&gt;
&lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; The disclosure requirements of SFAS&amp;#160;No.&amp;#160;161&amp;#160;&amp;#150;
&lt;I&gt;Disclosures about Derivative Instruments and Hedging Activities &lt;/I&gt;are
presented in Note&amp;#160;3. &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt;
font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; Adoption of the
accounting requirements of SFAS&amp;#160;No.&amp;#160;141(R)&amp;#160;&amp;#150;
&lt;I&gt;Business Combinations &lt;/I&gt;did not have a significant impact
on the company&amp;#146;s results of operations or financial position. &lt;/DIV&gt;
&lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; The accounting and presentation requirements of SFAS&amp;#160;No.&amp;#160;160&amp;#160;&amp;#150;
&lt;I&gt;Noncontrolling Interests in Consolidated Financial Statements&amp;#160;&amp;#150;
an amendment of Accounting Research Bulletin&amp;#160;No.&amp;#160;51 &lt;/I&gt;had
no impact on the financial statements as the company&amp;#146;s non-controlling
interests were not material. &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt;
font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; The disclosure
requirements of FASB Staff Position (FSP) &lt;FONT style="white-space: nowrap"&gt;FAS&amp;#160;107-1&lt;/FONT&gt;
and APB &lt;FONT style="white-space: nowrap"&gt;28-1&amp;#160;&amp;#150;&lt;/FONT&gt;
&lt;I&gt;Interim Disclosures about Fair Value of Financial Instruments&lt;/I&gt;,
and &lt;FONT style="white-space: nowrap"&gt;FSP&amp;#160;157-4&amp;#160;&amp;#150;&lt;/FONT&gt;
&lt;I&gt;Determining Fair Value When the Volume and Level of Activity for
the Asset or Liability Have Significantly Decreased and Identifying Transactions
That Are Not Orderly&lt;/I&gt;, which took effect on April&amp;#160;1, 2009,
are presented in Note&amp;#160;3, where material. &lt;/DIV&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color:
#000000; background: #FFFFFF"&gt; &lt;B&gt;&lt;FONT style="font-family: 'Times
New Roman', Times"&gt;Standards Issued But Not Yet Effective&lt;/FONT&gt;&lt;/B&gt;
&lt;/DIV&gt; &lt;DIV align="left" style="margin-left: 0%; margin-right: 0%;
text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color:
#000000; background: #FFFFFF"&gt; In June 2009, the FASB issued SFAS&amp;#160;No.&amp;#160;167&amp;#160;&amp;#150;
&lt;I&gt;Amendments to FASB Interpretation No.&amp;#160;46(R)&lt;/I&gt;. Among
other things, SFAS&amp;#160;No.&amp;#160;167 amends FIN&amp;#160;46(R) to
replace the calculation for determining which entities, if any, have a controlling
financial interest in a variable interest entity (VIE) from a quantitative
based risks and rewards calculation, to a qualitative approach that focuses
on identifying which entities have the power to direct the activities of a
variable interest entity that most significantly impact the entity&amp;#146;s
economic performance and, the obligation to absorb losses of the entity or
the right to receive benefits from the entity. This standard also requires
ongoing assessments as to whether an enterprise is the primary beneficiary
of a VIE (previously, reconsideration was only required upon the occurrence
of specific events), modifies the presentation of consolidated VIE assets
and liabilities, and requires additional disclosures about a company&amp;#146;s
involvement in VIEs. SFAS&amp;#160;No.&amp;#160;167 will be effective for
the company beginning January&amp;#160;1, 2010. Management is currently evaluating
the effect that adoption of this standard will have on the company&amp;#146;s
consolidated financial position and results of operations when it becomes
effective in 2010. &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size:
1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left: 0%;
margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New
Roman', Times; color: #000000; background: #FFFFFF"&gt; Other new pronouncements
issued but not effective until after June&amp;#160;30, 2009, are not expected
to have a significant effect on the company&amp;#146;s consolidated financial
position or results of operations. &lt;/DIV&gt; &lt;P align="center" style="font-size:
10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"&gt;
&lt;BR&gt; &amp;nbsp; &lt;/DIV&gt;&lt;!-- END PAGE WIDTH --&gt; </us-gaap:ScheduleOfNewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock>
<us-gaap:FairValueDisclosuresTextBlock contextRef="FY2009Q2YTD">&lt;!-- PAGEBREAK
--&gt; &lt;DIV style="width: 87%; margin-left: 6%"&gt;&lt;!-- BEGIN PAGE WIDTH
--&gt; &lt;!-- XBRL --&gt; &lt;!-- XBRL,N --&gt; &lt;DIV style="margin-top:
9pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;TABLE width="100%" border="0"
cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial,
Helvetica; color: #000000; background: #FFFFFF"&gt;&lt;!-- TABLE 05 --&gt;
&lt;TR&gt; &lt;TD width="3%"&gt;&lt;/TD&gt; &lt;TD width="97%"&gt;&lt;/TD&gt;
&lt;/TR&gt; &lt;TR valign="top"&gt; &lt;TD&gt; &lt;B&gt;&lt;FONT style="font-family:
'Times New Roman', Times"&gt;3.&amp;#160;&amp;#160;&lt;/FONT&gt;&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &lt;A name='110'&gt;&lt;/A&gt;&lt;B&gt;&lt;FONT style="font-family:
'Times New Roman', Times"&gt;FAIR VALUE OF FINANCIAL INSTRUMENTS&lt;/FONT&gt;&lt;/B&gt;
&lt;/TD&gt; &lt;/TR&gt; &lt;/TABLE&gt; &lt;!-- XBRL,BODY --&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; &lt;I&gt;Investments
in Marketable Securities&amp;#160;&amp;#150; &lt;/I&gt;The company holds a
portfolio of marketable securities, primarily consisting of equity and debt
securities that are classified as either trading or &lt;FONT style="white-space:
nowrap"&gt;available-for-sale&lt;/FONT&gt; and can be liquidated without restriction.
These assets are recorded at fair value, substantially all of which are based
upon quoted market prices for identical instruments in active markets and
are considered Level&amp;#160;1 inputs. As of June&amp;#160;30, 2009, and
December&amp;#160;31, 2008, respectively, there were marketable equity securities
of $47&amp;#160;million and $44&amp;#160;million included in prepaid expenses
and other current assets and $200&amp;#160;million and $180&amp;#160;million
of marketable equity securities included in miscellaneous other assets. &lt;/DIV&gt;
&lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; &lt;I&gt;Derivative Financial Instruments and Hedging
Activities&lt;/I&gt;&amp;#160;&amp;#150; The company utilizes derivative financial
instruments in order to manage exposure to interest rate risk and foreign
currency exchange rate risk. The company does not use derivative financial
instruments for trading or speculative purposes, nor does it use leveraged
financial instruments. Interest rate swap agreements utilize floating interest
rates as an offset to the fixed-rate characteristics of certain long-term
debt instruments. Foreign currency forward contracts are used to manage foreign
currency exchange risk related to receipts from customers and payments to
suppliers denominated in foreign currencies. &lt;/DIV&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; Derivative financial
instruments are recognized as assets or liabilities in the financial statements
and measured at fair value, substantially all of which are based on active
or inactive markets for identical or similar instruments or model-derived
valuations whose inputs are observable and thus considered Level&amp;#160;2
inputs. Changes in the fair value of derivative financial instruments that
qualify and are designated as fair value hedges are recorded in earnings from
continuing operations, while the effective portion of the changes in the fair
value of derivative financial instruments that qualify and are designated
as cash flow hedges are recorded in other comprehensive income. Credit risk
related to derivative financial instruments is considered minimal and is managed
by requiring high credit standards for counterparties and periodic settlements
of the underlying transactions. &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt;
font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; For derivative
financial instruments not designated as hedging instruments as well as the
ineffective portion of cash flow hedges, gains or losses resulting from changes
in the fair value are reported in Other, net in the condensed consolidated
statements of operations. Unrealized gains or losses on cash flow hedges are
reclassified from other comprehensive income to earnings from continuing operations
upon the recognition of the underlying transactions. &lt;/DIV&gt; &lt;DIV
style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV
align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size:
10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"&gt;
As of June&amp;#160;30, 2009, interest rate swaps with notional values totaling
$400&amp;#160;million, and foreign currency purchase and sale forward contract
agreements with notional values of $177&amp;#160;million and $89&amp;#160;million,
respectively, were designated as hedging instruments. The remaining notional
values outstanding at June&amp;#160;30, 2009, under foreign currency purchase
and sale forward contracts of $88&amp;#160;million and $18&amp;#160;million,
respectively, were not designated as hedging instruments. &lt;/DIV&gt; &lt;DIV
style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV
align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size:
10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"&gt;
In October 2008, the company entered into two forward-starting interest rate
swaps with a notional value totaling $400&amp;#160;million. The fair value
of the forward-starting swap agreements was a $58&amp;#160;million liability
at December&amp;#160;31, 2008, and was included in other current liabilities.
The company designated these swaps as cash flow hedges of future interest
payments on $400&amp;#160;million of financing expected to occur in 2009.
These swaps were settled as of June&amp;#160;8, 2009, and the related impact
on the condensed consolidated statements of operations was not material. &lt;/DIV&gt;
&lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; All other derivative fair values and related unrealized
gains and losses at June&amp;#160;30, 2009, and December&amp;#160;31, 2008,
were not material. &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size:
1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left: 0%;
margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New
Roman', Times; color: #000000; background: #FFFFFF"&gt; The carrying amounts
of other financial instruments not listed in the table below approximate fair
value due to the short-term nature of these items. &lt;/DIV&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; Carrying amounts
and the related estimated fair values of the company&amp;#146;s financial
instruments not recorded at fair value in the financial statements are as
follows: &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0"
style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt;&lt;!-- TABLE 01 --&gt; &lt;!-- Table Width Row BEGIN
--&gt; &lt;TR style="font-size: 1pt" valign="bottom"&gt; &lt;TD width="65%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=01 type=maindata --&gt; &lt;TD width="2%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=gutter --&gt; &lt;TD width="3%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=body --&gt; &lt;TD width="3%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=hang1 --&gt; &lt;TD width="3%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=gutter --&gt; &lt;TD width="2%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=body --&gt; &lt;TD width="2%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=hang1 --&gt; &lt;TD width="3%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=gutter --&gt; &lt;TD width="3%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=body --&gt; &lt;TD width="3%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=hang1 --&gt; &lt;TD width="3%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=gutter --&gt; &lt;TD width="2%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=body --&gt; &lt;TD width="2%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=hang1 --&gt; &lt;/TR&gt; &lt;!-- Table Width Row
END --&gt; &lt;TR style="font-size: 10pt" valign="bottom" align="center"&gt;
&lt;TD nowrap align="center" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="7" align="center" valign="bottom" style="border-bottom:
1px solid #000000"&gt; &lt;B&gt;June&amp;#160;30, 2009&lt;/B&gt; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="7" align="center" valign="bottom"
style="border-bottom: 1px solid #000000"&gt; December&amp;#160;31, 2008 &lt;/TD&gt;
&lt;/TR&gt; &lt;TR style="font-size: 10pt" valign="bottom" align="center"&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt;
&lt;B&gt;Carrying&lt;BR&gt; &lt;/B&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD colspan="3" nowrap align="center" valign="bottom"&gt; &lt;B&gt;Fair&lt;BR&gt;
&lt;/B&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3"
nowrap align="center" valign="bottom"&gt; Carrying&lt;BR&gt; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt;
Fair&lt;BR&gt; &lt;/TD&gt; &lt;/TR&gt; &lt;TR style="font-size: 8pt" valign="bottom"
align="center"&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &lt;I&gt;&lt;FONT
style="font-size: 10pt"&gt;$ in millions&lt;/FONT&gt;&lt;/I&gt; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;B&gt;&lt;FONT style="font-size: 10pt"&gt;Amount&lt;/FONT&gt;&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;B&gt;&lt;FONT style="font-size: 10pt"&gt;Value&lt;/FONT&gt;&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;FONT style="font-size: 10pt"&gt;Amount &lt;/FONT&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;FONT style="font-size: 10pt"&gt;Value &lt;/FONT&gt;
&lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom"&gt; &lt;TD align="left" valign="bottom"
style="border-top: 1px solid #000000"&gt; &lt;DIV style="text-indent: -10pt;
margin-left: 10pt"&gt; Cash surrender value of life insurance policies &lt;/DIV&gt;
&lt;/TD&gt; &lt;TD style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000"&gt;
&lt;B&gt;$&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &lt;B&gt;224&lt;/B&gt; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
1px solid #000000"&gt; &lt;B&gt;$&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 1px solid #000000"&gt; &lt;B&gt;224&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; $ &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 1px solid #000000"&gt; 240 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
1px solid #000000"&gt; $ &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; 240 &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;/TR&gt; &lt;TR valign="bottom"&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&lt;DIV style="text-indent: -10pt; margin-left: 10pt"&gt; Long-term debt &lt;/DIV&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&lt;B&gt;(3,841&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&lt;B&gt;)&lt;/B&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom"&gt; &lt;B&gt;(4,321&lt;/B&gt; &lt;/TD&gt; &lt;TD
nowrap align="left" valign="bottom"&gt; &lt;B&gt;)&lt;/B&gt; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;(&lt;/B&gt;3,920
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; ) &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; (4,369 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; ) &lt;/TD&gt; &lt;/TR&gt; &lt;TR
style="font-size: 1pt"&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;/TABLE&gt; &lt;DIV
align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size:
10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"&gt;
&lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; &lt;I&gt;Cash Surrender Value of Life Insurance Policies&lt;/I&gt;&amp;#160;&amp;#150;
The company maintains whole life insurance policies on a group of executives
for use as a funding source for deferred compensation arrangements. These
policies are recorded at their cash surrender value as determined by the insurance
carrier. Additionally, the company has split-dollar life insurance policies
on former officers and executives from acquired businesses which are recorded
at the lesser of their cash surrender value or premiums paid. The policies
are utilized as a partial funding source for supplemental employee retirement
plans and amounts associated with these policies are recorded in miscellaneous
other assets in the condensed consolidated statements of financial position.
&lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; &lt;I&gt;Long-Term Debt&lt;/I&gt;&amp;#160;&amp;#150;
The fair value of the long-term debt was calculated based on interest rates
available for debt with terms and maturities similar to the company&amp;#146;s
existing debt arrangements. &lt;/DIV&gt; &lt;/DIV&gt;&lt;!-- END PAGE WIDTH
--&gt; </us-gaap:FairValueDisclosuresTextBlock> <us-gaap:StockholdersEquityNoteDisclosureTextBlock
contextRef="FY2009Q2YTD">&lt;!-- PAGEBREAK --&gt; &lt;DIV style="width: 87%;
margin-left: 6%"&gt;&lt;!-- BEGIN PAGE WIDTH --&gt; &lt;DIV style="margin-top:
9pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;TABLE width="100%" border="0"
cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial,
Helvetica; color: #000000; background: #FFFFFF"&gt; &lt;TR&gt; &lt;TD width="3%"&gt;&lt;/TD&gt;
&lt;TD width="97%"&gt;&lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="top"&gt; &lt;TD&gt;
&lt;B&gt;&lt;FONT style="font-family: 'Times New Roman', Times"&gt;4.&amp;#160;&amp;#160;&lt;/FONT&gt;&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &lt;A name='111'&gt;&lt;/A&gt;&lt;B&gt;&lt;FONT style="font-family:
'Times New Roman', Times"&gt;COMMON STOCK DIVIDENDS AND CONVERSION OF PREFERRED
STOCK&lt;/FONT&gt;&lt;/B&gt; &lt;/TD&gt; &lt;/TR&gt; &lt;/TABLE&gt; &lt;DIV
style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV
align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size:
10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"&gt;
&lt;I&gt;Dividends on Common Stock&lt;/I&gt;&amp;#160;&amp;#150; In May 2009,
the company&amp;#146;s board of directors approved an increase to the quarterly
common stock dividend, from $.40 per share to $.43 per share, for shareholders
of record as of June&amp;#160;1, 2009. &lt;/DIV&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; In April 2008,
the company&amp;#146;s board of directors approved an increase to the quarterly
common stock dividend, from $.37 per share to $.40 per share, for shareholders
of record as of June&amp;#160;2, 2008. &lt;/DIV&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; &lt;I&gt;Conversion
of Preferred Stock&lt;/I&gt;&amp;#160;&amp;#150; On February&amp;#160;20,
2008, the company&amp;#146;s board of directors approved the redemption of
the 3.5&amp;#160;million shares of mandatorily redeemable convertible preferred
stock on April&amp;#160;4, 2008. Prior to the redemption date, substantially
all of the preferred shares were converted into common stock at the election
of shareholders. All remaining unconverted preferred shares were redeemed
by the company on the redemption date. As a result of the conversion and redemption,
the company issued approximately 6.4&amp;#160;million shares of common stock.
&lt;/DIV&gt; &lt;P align="center" style="font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; &lt;BR&gt; &amp;nbsp;
&lt;/DIV&gt;&lt;!-- END PAGE WIDTH --&gt; </us-gaap:StockholdersEquityNoteDisclosureTextBlock>
<noc:BusinessAcquisitionsAndDispositionsDisclosureTextBlock
contextRef="FY2009Q2YTD">&lt;!-- PAGEBREAK --&gt; &lt;DIV style="width: 87%;
margin-left: 6%"&gt;&lt;!-- BEGIN PAGE WIDTH --&gt; &lt;DIV style="margin-top:
9pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;TABLE width="100%" border="0"
cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial,
Helvetica; color: #000000; background: #FFFFFF"&gt; &lt;TR&gt; &lt;TD width="3%"&gt;&lt;/TD&gt;
&lt;TD width="97%"&gt;&lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="top"&gt; &lt;TD&gt;
&lt;B&gt;&lt;FONT style="font-family: 'Times New Roman', Times"&gt;5.&amp;#160;&amp;#160;&lt;/FONT&gt;&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &lt;A name='112'&gt;&lt;/A&gt;&lt;B&gt;&lt;FONT style="font-family:
'Times New Roman', Times"&gt;BUSINESS ACQUISITIONS AND DISPOSITIONS&lt;/FONT&gt;&lt;/B&gt;
&lt;/TD&gt; &lt;/TR&gt; &lt;/TABLE&gt; &lt;DIV style="margin-top: 6pt; font-size:
1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left: 0%;
margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000;
background: #FFFFFF"&gt; &lt;B&gt;&lt;FONT style="font-family: 'Times New
Roman', Times"&gt;Acquisitions&lt;/FONT&gt;&lt;/B&gt; &lt;/DIV&gt; &lt;DIV
align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size:
10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"&gt;
In April 2009, the company acquired Sonoma Photonics, Inc., as well as assets
from Swift Engineering&amp;#146;s Killer Bee Unmanned Air Systems product
line for an aggregate amount of approximately $33&amp;#160;million. The operating
results since acquisition are reported in the Aerospace Systems segment. The
assets, liabilities, and results of operations related to these two acquisitions
were not material to the company&amp;#146;s consolidated financial position
or results of operations, and thus pro-forma financial information is not
presented. The condensed consolidated financial statements reflect preliminary
estimates of the fair value of the assets acquired and liabilities assumed
and the related allocation of the purchase price for the entities acquired.
Management does not expect adjustments to these estimates, if any, to have
a material effect on the company&amp;#146;s condensed consolidated financial
position or results of operations. &lt;/DIV&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; In October 2008,
the company acquired 3001 International, Inc. (3001 Inc.) for approximately
$92&amp;#160;million in cash. 3001 Inc. provides geospatial data production
and analysis, including airborne imaging, surveying, mapping and geographic
information systems for U.S.&amp;#160;and international government intelligence,
defense and civilian customers. The operating results of 3001 are reported
in the Information Systems segment. The assets, liabilities, and results of
operations of 3001 Inc. were not material to the company&amp;#146;s consolidated
financial position or results of operations. &lt;/DIV&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color:
#000000; background: #FFFFFF"&gt; &lt;B&gt;&lt;FONT style="font-family: 'Times
New Roman', Times"&gt;Dispositions&lt;/FONT&gt;&lt;/B&gt; &lt;/DIV&gt; &lt;DIV
align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size:
10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"&gt;
In April 2008, the company sold its Electro-Optical Systems (EOS) business
for $175&amp;#160;million in cash to L-3 Communications Corporation and recognized
a gain of $19&amp;#160;million, net of taxes of $39&amp;#160;million. EOS,
formerly a part of the Electronic Systems segment, produces night vision and
applied optics products and had sales of approximately $53&amp;#160;million
through April 2008. Operating results of this business are reported as discontinued
operations in the condensed consolidated statements of operations for all
applicable periods presented. &lt;/DIV&gt; &lt;/DIV&gt; </noc:BusinessAcquisitionsAndDispositionsDisclosureTextBlock>
<us-gaap:SegmentReportingDisclosureTextBlock contextRef="FY2009Q2YTD">&lt;!--
PAGEBREAK --&gt; &lt;DIV style="width: 87%; margin-left: 6%"&gt;&lt;!-- BEGIN
PAGE WIDTH --&gt; &lt;DIV style="margin-top: 9pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size:
10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"&gt;
&lt;TR&gt; &lt;TD width="3%"&gt;&lt;/TD&gt; &lt;TD width="97%"&gt;&lt;/TD&gt;
&lt;/TR&gt; &lt;TR valign="top"&gt; &lt;TD&gt; &lt;B&gt;&lt;FONT style="font-family:
'Times New Roman', Times"&gt;6.&amp;#160;&amp;#160;&lt;/FONT&gt;&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &lt;A name='113'&gt;&lt;/A&gt;&lt;B&gt;&lt;FONT style="font-family:
'Times New Roman', Times"&gt;SEGMENT INFORMATION&lt;/FONT&gt;&lt;/B&gt; &lt;/TD&gt;
&lt;/TR&gt; &lt;/TABLE&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; In January 2009, the company streamlined its organizational
structure by reducing the number of operating segments from seven to five.
The five segments are Information Systems, which combines the former Information
Technology and Mission Systems segments; Aerospace Systems, which combines
the former Integrated Systems and Space Technology segments; Electronic Systems;
Shipbuilding; and Technical Services. These five segments are considered reportable
segments in accordance with SFAS&amp;#160;No.&amp;#160;131&amp;#160;&amp;#150;
&lt;I&gt;Disclosures about Segments of an Enterprise and Related Information&lt;/I&gt;.
Creation of the Information Systems and Aerospace Systems segments is intended
to strengthen alignment with customers, improve the company&amp;#146;s ability
to execute on programs and win new business, and enhance cost competitiveness.
Product sales are predominantly generated in the Aerospace Systems, Electronic
Systems and Shipbuilding segments, while the majority of the company&amp;#146;s
service revenues are generated by the Information Systems and Technical Services
segments. &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; During the first quarter of 2009, the company realigned
certain logistics, services, and technical support programs and transferred
assets from the Information Systems and Electronic Systems segments to the
Technical Services segment. This realignment is intended to strengthen the
company&amp;#146;s core capability in aircraft and electronics maintenance,
repair and overhaul, life cycle optimization, and training and simulation
services. &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; Sales and segment operating income in the following
tables have been revised to reflect the above realignments for all periods
presented. &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; During the first quarter of 2009, the company transferred
certain optics and laser programs from the Information Systems segment to
the Aerospace Systems segment. As the operating results of this business were
not considered material, the prior year sales and segment operating income
in the following tables were not reclassified to reflect this business transfer.
&lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; During the first quarter of 2008, the company recorded
a pre-tax charge of $272&amp;#160;million for cost growth on the LHD 8 contract
and an additional $54&amp;#160;million, primarily for schedule impacts on
other ships and impairment of purchased intangibles at the Gulf Coast shipyards.
&lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; The following table presents segment sales and service
revenues for the three and six months ended June&amp;#160;30, 2009, and 2008.
&lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0"
style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; &lt;!-- Table Width Row BEGIN --&gt; &lt;TR style="font-size:
1pt" valign="bottom"&gt; &lt;TD width="58%"&gt;&amp;nbsp;&lt;/TD&gt; &lt;!--
colindex=01 type=maindata --&gt; &lt;TD width="2%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=gutter --&gt; &lt;TD width="2%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=body --&gt; &lt;TD width="2%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=hang1 --&gt; &lt;TD width="6%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=gutter --&gt; &lt;TD width="2%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=body --&gt; &lt;TD width="2%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=hang1 --&gt; &lt;TD width="6%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=gutter --&gt; &lt;TD width="3%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=body --&gt; &lt;TD width="3%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=hang1 --&gt; &lt;TD width="6%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=gutter --&gt; &lt;TD width="2%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=body --&gt; &lt;TD width="2%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=hang1 --&gt; &lt;/TR&gt; &lt;!-- Table Width Row
END --&gt; &lt;TR style="font-size: 10pt" valign="bottom" align="center"&gt;
&lt;TD nowrap align="center" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="7" nowrap align="center" valign="bottom"&gt;
Three Months Ended&lt;BR&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD colspan="7" nowrap align="center" valign="bottom"&gt; Six Months Ended&lt;BR&gt;
&lt;/TD&gt; &lt;/TR&gt; &lt;TR style="font-size: 10pt" valign="bottom" align="center"&gt;
&lt;TD nowrap align="center" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="7" nowrap align="center" valign="bottom"&gt;
June&amp;#160;30 &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="7"
nowrap align="center" valign="bottom"&gt; June&amp;#160;30 &lt;/TD&gt; &lt;/TR&gt;
&lt;TR style="font-size: 8pt" valign="bottom" align="center"&gt; &lt;TD nowrap
align="left" valign="bottom"&gt; &lt;I&gt;&lt;FONT style="font-size: 10pt"&gt;$
in millions&lt;/FONT&gt;&lt;/I&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD colspan="3" nowrap align="center" valign="bottom" style="border-top:
1px solid #000000"&gt; &lt;B&gt;&lt;FONT style="font-size: 10pt"&gt;2009&lt;/FONT&gt;&lt;/B&gt;
&lt;/TD&gt; &lt;TD style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD colspan="3" nowrap align="center" valign="bottom" style="border-top:
1px solid #000000"&gt; &lt;FONT style="font-size: 10pt"&gt;2008 &lt;/FONT&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom" style="border-top: 1px solid #000000"&gt; &lt;B&gt;&lt;FONT
style="font-size: 10pt"&gt;2009&lt;/FONT&gt;&lt;/B&gt; &lt;/TD&gt; &lt;TD
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3"
nowrap align="center" valign="bottom" style="border-top: 1px solid #000000"&gt;
&lt;FONT style="font-size: 10pt"&gt;2008 &lt;/FONT&gt; &lt;/TD&gt; &lt;/TR&gt;
&lt;TR valign="bottom" style="background: #CCEEFF"&gt; &lt;TD align="left"
valign="bottom" style="border-top: 1px solid #000000"&gt; &lt;DIV style="text-indent:
-10pt; margin-left: 10pt"&gt; &lt;B&gt;Sales and Service Revenues&lt;/B&gt;
&lt;/DIV&gt; &lt;/TD&gt; &lt;TD style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom"&gt; &lt;TD nowrap
align="left" valign="bottom"&gt; &lt;DIV style="text-indent: -10pt; margin-left:
20pt"&gt; Aerospace Systems &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;$&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;2,673&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
$ &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 2,472 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;$&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;5,129&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
$ &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 4,833 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt;
&lt;TR valign="bottom" style="background: #CCEEFF"&gt; &lt;TD nowrap align="left"
valign="bottom"&gt; &lt;DIV style="text-indent: -10pt; margin-left: 20pt"&gt;
Electronic Systems &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom"&gt; &lt;B&gt;1,967&lt;/B&gt; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 1,665 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;3,755&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 3,210
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;/TR&gt; &lt;TR valign="bottom"&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&lt;DIV style="text-indent: -10pt; margin-left: 20pt"&gt; Information Systems
&lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&lt;B&gt;2,585&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
2,512 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&lt;B&gt;5,076&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
4,810 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom" style="background: #CCEEFF"&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &lt;DIV style="text-indent:
-10pt; margin-left: 20pt"&gt; Shipbuilding &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;1,524&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 1,688
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;2,899&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 2,952
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;/TR&gt; &lt;TR valign="bottom"&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&lt;DIV style="text-indent: -10pt; margin-left: 20pt"&gt; Technical Services
&lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&lt;B&gt;702&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
634 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&lt;B&gt;1,334&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
1,192 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom" style="background: #CCEEFF"&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &lt;DIV style="text-indent:
-10pt; margin-left: 20pt"&gt; Intersegment eliminations &lt;/DIV&gt; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;(494&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &lt;B&gt;)&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
(343 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; ) &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;(916&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &lt;B&gt;)&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
(645 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; ) &lt;/TD&gt;
&lt;/TR&gt; &lt;TR style="font-size: 1pt"&gt; &lt;TD colspan="17" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt;
&lt;TR valign="bottom"&gt; &lt;TD align="left" valign="bottom"&gt; &lt;DIV
style="text-indent: -10pt; margin-left: 20pt"&gt; Total sales and service
revenues &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom"&gt; &lt;B&gt;$&lt;/B&gt; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;8,957&lt;/B&gt; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; $ &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; 8,628 &lt;/TD&gt; &lt;TD nowrap
align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;$&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;17,277&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
$ &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 16,352 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt;
&lt;TR style="font-size: 1pt"&gt; &lt;TD nowrap align="left" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom" style="border-top: 2px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;/TABLE&gt; &lt;DIV
align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size:
10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"&gt;
&lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; The following table presents segment operating income
reconciled to total operating income for the three and six months ended June&amp;#160;30,
2009, and 2008. &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0"
style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; &lt;!-- Table Width Row BEGIN --&gt; &lt;TR style="font-size:
1pt" valign="bottom"&gt; &lt;TD width="55%"&gt;&amp;nbsp;&lt;/TD&gt; &lt;!--
colindex=01 type=maindata --&gt; &lt;TD width="2%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=gutter --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=body --&gt; &lt;TD width="1%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=hang1 --&gt; &lt;TD width="9%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=gutter --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=body --&gt; &lt;TD width="1%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=hang1 --&gt; &lt;TD width="9%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=gutter --&gt; &lt;TD width="2%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=body --&gt; &lt;TD width="2%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=hang1 --&gt; &lt;TD width="9%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=gutter --&gt; &lt;TD width="2%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=body --&gt; &lt;TD width="2%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=hang1 --&gt; &lt;/TR&gt; &lt;!-- Table Width Row
END --&gt; &lt;TR style="font-size: 10pt" valign="bottom" align="center"&gt;
&lt;TD nowrap align="center" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="7" align="center" valign="bottom"&gt;
Three Months Ended June&amp;#160;30 &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD colspan="7" align="center" valign="bottom"&gt; Six Months Ended June&amp;#160;30
&lt;/TD&gt; &lt;/TR&gt; &lt;TR style="font-size: 8pt" valign="bottom" align="center"&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &lt;I&gt;&lt;FONT style="font-size:
10pt"&gt;$ in millions&lt;/FONT&gt;&lt;/I&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom" style="border-top:
1px solid #000000"&gt; &lt;B&gt;&lt;FONT style="font-size: 10pt"&gt;2009&lt;/FONT&gt;&lt;/B&gt;
&lt;/TD&gt; &lt;TD style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD colspan="3" nowrap align="center" valign="bottom" style="border-top:
1px solid #000000"&gt; &lt;FONT style="font-size: 10pt"&gt;2008 &lt;/FONT&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom" style="border-top: 1px solid #000000"&gt; &lt;B&gt;&lt;FONT
style="font-size: 10pt"&gt;2009&lt;/FONT&gt;&lt;/B&gt; &lt;/TD&gt; &lt;TD
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3"
nowrap align="center" valign="bottom" style="border-top: 1px solid #000000"&gt;
&lt;FONT style="font-size: 10pt"&gt;2008 &lt;/FONT&gt; &lt;/TD&gt; &lt;/TR&gt;
&lt;TR valign="bottom" style="background: #CCEEFF"&gt; &lt;TD nowrap align="left"
valign="bottom" style="border-top: 1px solid #000000"&gt; &lt;DIV style="text-indent:
-10pt; margin-left: 10pt"&gt; &lt;B&gt;Operating Income&lt;/B&gt; &lt;/DIV&gt;
&lt;/TD&gt; &lt;TD style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom"&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &lt;DIV style="text-indent:
-10pt; margin-left: 20pt"&gt; Aerospace Systems &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;$&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;257&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
$ &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 236 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;$&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;515&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
$ &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 488 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt;
&lt;TR valign="bottom" style="background: #CCEEFF"&gt; &lt;TD nowrap align="left"
valign="bottom"&gt; &lt;DIV style="text-indent: -10pt; margin-left: 20pt"&gt;
Electronic Systems &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom"&gt; &lt;B&gt;251&lt;/B&gt; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 201 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;480&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 410
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;/TR&gt; &lt;TR valign="bottom"&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&lt;DIV style="text-indent: -10pt; margin-left: 20pt"&gt; Information Systems
&lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&lt;B&gt;204&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
207 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&lt;B&gt;427&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
419 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom" style="background: #CCEEFF"&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &lt;DIV style="text-indent:
-10pt; margin-left: 20pt"&gt; Shipbuilding &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;14&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 126
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;98&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; (92
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; ) &lt;/TD&gt; &lt;/TR&gt;
&lt;TR valign="bottom"&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&lt;DIV style="text-indent: -10pt; margin-left: 20pt"&gt; Technical Services
&lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&lt;B&gt;43&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
42 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;80&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 71
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;/TR&gt; &lt;TR valign="bottom" style="background: #CCEEFF"&gt; &lt;TD
nowrap align="left" valign="bottom"&gt; &lt;DIV style="text-indent: -10pt;
margin-left: 20pt"&gt; Intersegment eliminations &lt;/DIV&gt; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;(50&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &lt;B&gt;)&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
(28 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; ) &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;(90&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &lt;B&gt;)&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
(54 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; ) &lt;/TD&gt;
&lt;/TR&gt; &lt;TR style="font-size: 1pt"&gt; &lt;TD nowrap align="left" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom"&gt;
&lt;TD align="left" valign="bottom"&gt; &lt;DIV style="text-indent: -10pt;
margin-left: 10pt"&gt; &lt;B&gt;Total segment operating income&lt;/B&gt; &lt;/DIV&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&lt;B&gt;719&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
784 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&lt;B&gt;1,510&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
1,242 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom" style="background: #CCEEFF"&gt;
&lt;TD align="left" valign="bottom"&gt; &lt;DIV style="text-indent: -10pt;
margin-left: 30pt"&gt; Non-segment factors affecting operating income &lt;/DIV&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom"&gt; &lt;TD align="left" valign="bottom"&gt;
&lt;DIV style="text-indent: -10pt; margin-left: 40pt"&gt; Unallocated income
(expense) &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom"&gt; &lt;B&gt;21&lt;/B&gt; &lt;/TD&gt; &lt;TD
nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; (43 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; ) &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;(32&lt;/B&gt; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &lt;B&gt;)&lt;/B&gt; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; (75
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; ) &lt;/TD&gt; &lt;/TR&gt;
&lt;TR valign="bottom" style="background: #CCEEFF"&gt; &lt;TD align="left"
valign="bottom"&gt; &lt;DIV style="text-indent: -10pt; margin-left: 40pt"&gt;
Net pension adjustment &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom"&gt; &lt;B&gt;(76&lt;/B&gt; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &lt;B&gt;)&lt;/B&gt; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 69
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;(152&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &lt;B&gt;)&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
128 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom"&gt; &lt;TD align="left" valign="bottom"&gt;
&lt;DIV style="text-indent: -10pt; margin-left: 40pt"&gt; Royalty income adjustment
&lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&lt;B&gt;(11&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&lt;B&gt;)&lt;/B&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom"&gt; (4 &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom"&gt; ) &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom"&gt; &lt;B&gt;(18&lt;/B&gt; &lt;/TD&gt; &lt;TD
nowrap align="left" valign="bottom"&gt; &lt;B&gt;)&lt;/B&gt; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; (25 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; ) &lt;/TD&gt; &lt;/TR&gt; &lt;TR
style="font-size: 1pt"&gt; &lt;TD colspan="17" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom"
style="background: #CCEEFF"&gt; &lt;TD align="left" valign="bottom"&gt; &lt;DIV
style="text-indent: -10pt; margin-left: 20pt"&gt; Total operating income &lt;/DIV&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &lt;B&gt;$&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &lt;B&gt;653&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; $ &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom"&gt; 806 &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;$&lt;/B&gt; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;1,308&lt;/B&gt; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; $ &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; 1,270 &lt;/TD&gt; &lt;TD nowrap
align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;TR
style="font-size: 1pt"&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;/TABLE&gt; &lt;DIV
align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size:
10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"&gt;
&lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; &lt;I&gt;Unallocated Income (Expense)&lt;/I&gt;&amp;#160;&amp;#150;
Unallocated income (expense) generally includes the portion of corporate expenses
not considered allowable or allocable under applicable U.S.&amp;#160;Government
Cost Accounting Standards (CAS) regulations and the Federal Acquisition Regulation,
and therefore not allocated to the segments, for costs related to management
and administration, legal, environmental, certain compensation and retiree
benefits, and other expenses. Unallocated income (expense) for the three and
six months ended June&amp;#160;30, 2009, reflects a gain resulting from a
legal settlement (see Note&amp;#160;9), net of other legal provisions and
related expenses. &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size:
1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left: 0%;
margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New
Roman', Times; color: #000000; background: #FFFFFF"&gt; &lt;I&gt;Net Pension
Adjustment&amp;#160;&amp;#150; &lt;/I&gt;The net pension adjustment reflects
the difference between pension expense determined in accordance with U.S.&amp;#160;GAAP
and pension expense allocated to the operating segments determined in accordance
with CAS. &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; &lt;I&gt;Royalty Income Adjustment&lt;/I&gt;&amp;#160;&amp;#150;
Royalty income is included in segment operating income and reclassified to
other income for financial reporting purposes. &lt;/DIV&gt; &lt;/DIV&gt; </us-gaap:SegmentReportingDisclosureTextBlock>
<us-gaap:EarningsPerSharePolicyTextBlock contextRef="FY2009Q2YTD">&lt;!--
PAGEBREAK --&gt; &lt;DIV style="width: 87%; margin-left: 6%"&gt;&lt;!-- BEGIN
PAGE WIDTH --&gt; &lt;DIV style="margin-top: 9pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size:
10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"&gt;
&lt;TR&gt; &lt;TD width="3%"&gt;&lt;/TD&gt; &lt;TD width="97%"&gt;&lt;/TD&gt;
&lt;/TR&gt; &lt;TR valign="top"&gt; &lt;TD&gt; &lt;B&gt;&lt;FONT style="font-family:
'Times New Roman', Times"&gt;7.&amp;#160;&amp;#160;&lt;/FONT&gt;&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &lt;A name='114'&gt;&lt;/A&gt;&lt;B&gt;&lt;FONT style="font-family:
'Times New Roman', Times"&gt;EARNINGS PER SHARE&lt;/FONT&gt;&lt;/B&gt; &lt;/TD&gt;
&lt;/TR&gt; &lt;/TABLE&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; &lt;I&gt;Basic Earnings Per Share&lt;/I&gt;&amp;#160;&amp;#150;
Basic earnings per share from continuing operations are calculated by dividing
earnings from continuing operations available to common shareholders by the
weighted-average number of shares of common stock outstanding during each
period. &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; &lt;I&gt;Diluted Earnings Per Share&lt;/I&gt;&amp;#160;&amp;#150;
Diluted earnings per share include the dilutive effect of stock options and
other stock awards granted to employees under stock-based compensation plans.
The dilutive effect of these securities totaled 3.8&amp;#160;million shares
and 4.5&amp;#160;million shares for the three and six months ended June&amp;#160;30,
2009, respectively. The dilutive effect of these securities totaled 5.1&amp;#160;million
shares and 8.0&amp;#160;million shares (including 41,000&amp;#160;shares and
2.2&amp;#160;million shares for the company&amp;#146;s mandatorily redeemable
convertible preferred stock) for the three and six months ended June&amp;#160;30,
2008, respectively. For the six months ended June&amp;#160;30, 2008, the diluted
earnings per share calculation included $1&amp;#160;million of dividends added
back to earnings and the weighted-average diluted shares outstanding included
the company&amp;#146;s mandatorily redeemable convertible preferred stock
(See Note&amp;#160;4). &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size:
1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left: 0%;
margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New
Roman', Times; color: #000000; background: #FFFFFF"&gt; The weighted-average
diluted shares outstanding for the three and six months ended June&amp;#160;30,
2009, exclude stock options to purchase approximately 8.4&amp;#160;million
and 10.6&amp;#160;million shares, respectively, because such options have
an exercise price in excess of the average market price of the company&amp;#146;s
common stock during the period. &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt;
font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; The weighted-average
diluted shares outstanding for the three and six months ended June&amp;#160;30,
2008, exclude stock options to purchase approximately 1.4&amp;#160;million
and 1.3&amp;#160;million shares, respectively. &lt;/DIV&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; &lt;I&gt;Share
Repurchases&lt;/I&gt;&amp;#160;&amp;#150; The table below summarizes the company&amp;#146;s
share repurchases beginning January&amp;#160;1, 2008: &lt;/DIV&gt; &lt;DIV
style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;TABLE
border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size:
9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"&gt;
&lt;!-- Table Width Row BEGIN --&gt; &lt;TR style="font-size: 1pt" valign="bottom"&gt;
&lt;TD width="28%"&gt;&amp;nbsp;&lt;/TD&gt; &lt;!-- colindex=01 type=maindata
--&gt; &lt;TD width="1%"&gt;&amp;nbsp;&lt;/TD&gt; &lt;!-- colindex=02 type=gutter
--&gt; &lt;TD width="8%" align="right"&gt;&amp;nbsp;&lt;/TD&gt; &lt;!-- colindex=02
type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=body --&gt; &lt;TD width="8%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=hang1 --&gt; &lt;TD width="5%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=gutter --&gt; &lt;TD width="7%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=body --&gt; &lt;TD width="7%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=hang1 --&gt; &lt;TD width="5%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=gutter --&gt; &lt;TD width="4%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=body --&gt; &lt;TD width="4%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=hang1 --&gt; &lt;TD width="5%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=gutter --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=body --&gt; &lt;TD width="1%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=hang1 --&gt; &lt;TD width="9%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=06 type=gutter --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=06 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=06 type=body --&gt; &lt;TD width="1%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=06 type=hang1 --&gt; &lt;/TR&gt; &lt;!-- Table Width Row
END --&gt; &lt;TR style="font-size: 10pt" valign="bottom" align="center"&gt;
&lt;TD nowrap align="center" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3"
nowrap align="center" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="7"
nowrap align="center" valign="bottom"&gt; Shares Repurchased&lt;BR&gt; &lt;/TD&gt;
&lt;/TR&gt; &lt;TR style="font-size: 10pt" valign="bottom" align="center"&gt;
&lt;TD nowrap align="center" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3"
nowrap align="center" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="7"
nowrap align="center" valign="bottom"&gt; (in millions)&lt;BR&gt; &lt;/TD&gt;
&lt;/TR&gt; &lt;TR style="font-size: 10pt" valign="bottom" align="center"&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3"
nowrap align="center" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt;
Total Shares&lt;BR&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
colspan="7" nowrap align="center" valign="bottom"&gt; Six Months Ended&lt;BR&gt;
&lt;/TD&gt; &lt;/TR&gt; &lt;TR style="font-size: 10pt" valign="bottom" align="center"&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt;
Amount Authorized&lt;BR&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD colspan="3" nowrap align="center" valign="bottom"&gt; Average Price
Per&lt;BR&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3"
nowrap align="center" valign="bottom"&gt; Retired&lt;BR&gt; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="7" nowrap align="center" valign="bottom"
style="border-bottom: 1px solid #000000"&gt; June&amp;#160;30, &lt;/TD&gt;
&lt;/TR&gt; &lt;TR style="font-size: 8pt" valign="bottom" align="center"&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &lt;FONT style="font-size:
10pt"&gt;Authorization Date &lt;/FONT&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt; &lt;FONT
style="font-size: 10pt"&gt;(In millions) &lt;/FONT&gt; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt;
&lt;FONT style="font-size: 10pt"&gt;Share &lt;/FONT&gt; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt;
&lt;FONT style="font-size: 10pt"&gt;(In millions) &lt;/FONT&gt; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;B&gt;&lt;FONT style="font-size: 10pt"&gt;2009&lt;/FONT&gt;&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;FONT style="font-size: 10pt"&gt;2008 &lt;/FONT&gt;
&lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom"&gt; &lt;TD nowrap align="left"
valign="top" style="border-top: 1px solid #000000"&gt; &lt;DIV style="text-indent:
-9pt; margin-left: 9pt"&gt; December&amp;#160;19, 2007 &lt;/DIV&gt; &lt;/TD&gt;
&lt;TD style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom" style="border-top: 1px solid #000000"&gt;
$ &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
1px solid #000000"&gt; 2,500 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 1px solid #000000"&gt; $ &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom" style="border-top: 1px solid #000000"&gt;
63.44 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; 31.4
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &lt;B&gt;10.0&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; 10.3
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;/TABLE&gt; &lt;DIV
align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size:
10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"&gt;
&lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; Share repurchases take place at management&amp;#146;s
discretion or under pre-established non-discretionary programs from time to
time, depending on market conditions, in the open market, and in privately
negotiated transactions. The company retires its common stock upon repurchase
and has not made any purchases of common stock other than in connection with
these publicly announced repurchase programs. As of June&amp;#160;30, 2009,
the company has $508&amp;#160;million remaining under this authorization for
share repurchases. &lt;/DIV&gt; &lt;/DIV&gt; </us-gaap:EarningsPerSharePolicyTextBlock>
<us-gaap:GoodwillAndIntangibleAssetsDisclosureTextBlock
contextRef="FY2009Q2YTD">&lt;!-- PAGEBREAK --&gt; &lt;DIV style="width: 87%;
margin-left: 6%"&gt;&lt;!-- BEGIN PAGE WIDTH --&gt; &lt;DIV style="margin-top:
9pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;TABLE width="100%" border="0"
cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial,
Helvetica; color: #000000; background: #FFFFFF"&gt; &lt;TR&gt; &lt;TD width="3%"&gt;&lt;/TD&gt;
&lt;TD width="97%"&gt;&lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="top"&gt; &lt;TD&gt;
&lt;B&gt;&lt;FONT style="font-family: 'Times New Roman', Times"&gt;8.&amp;#160;&amp;#160;&lt;/FONT&gt;&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &lt;A name='115'&gt;&lt;/A&gt;&lt;B&gt;&lt;FONT style="font-family:
'Times New Roman', Times"&gt;GOODWILL AND OTHER PURCHASED INTANGIBLE ASSETS&lt;/FONT&gt;&lt;/B&gt;
&lt;/TD&gt; &lt;/TR&gt; &lt;/TABLE&gt; &lt;DIV style="margin-top: 6pt; font-size:
1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left: 0%;
margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000;
background: #FFFFFF"&gt; &lt;B&gt;&lt;FONT style="font-family: 'Times New
Roman', Times"&gt;Goodwill&lt;/FONT&gt;&lt;/B&gt; &lt;/DIV&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; The changes in
the carrying amounts of goodwill for the six months ended June&amp;#160;30,
2009, were as follows: &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size:
1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;TABLE border="0" width="100%" align="center"
cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; &lt;!-- Table
Width Row BEGIN --&gt; &lt;TR style="font-size: 1pt" valign="bottom"&gt; &lt;TD
width="33%"&gt;&amp;nbsp;&lt;/TD&gt; &lt;!-- colindex=01 type=maindata --&gt;
&lt;TD width="2%"&gt;&amp;nbsp;&lt;/TD&gt; &lt;!-- colindex=02 type=gutter
--&gt; &lt;TD width="8%" align="right"&gt;&amp;nbsp;&lt;/TD&gt; &lt;!-- colindex=02
type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=body --&gt; &lt;TD width="8%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=hang1 --&gt; &lt;TD width="3%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=gutter --&gt; &lt;TD width="3%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=body --&gt; &lt;TD width="3%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=hang1 --&gt; &lt;TD width="3%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=gutter --&gt; &lt;TD width="3%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=body --&gt; &lt;TD width="3%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=hang1 --&gt; &lt;TD width="3%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=gutter --&gt; &lt;TD width="4%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=body --&gt; &lt;TD width="4%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=hang1 --&gt; &lt;TD width="3%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=06 type=gutter --&gt; &lt;TD width="6%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=06 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=06 type=body --&gt; &lt;TD width="6%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=06 type=hang1 --&gt; &lt;/TR&gt; &lt;!-- Table Width Row
END --&gt; &lt;TR style="font-size: 10pt" valign="bottom" align="center"&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3"
nowrap align="center" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3"
nowrap align="center" valign="bottom"&gt; Purchase&lt;BR&gt; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;TR style="font-size: 10pt" valign="bottom"
align="center"&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; Balance as of&lt;BR&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD colspan="3" nowrap align="center" valign="bottom"&gt; Accounting&lt;BR&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;B&gt;Balance as of&lt;BR&gt; &lt;/B&gt; &lt;/TD&gt;
&lt;/TR&gt; &lt;TR style="font-size: 8pt" valign="bottom" align="center"&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &lt;I&gt;&lt;FONT style="font-size:
10pt"&gt;$ in millions&lt;/FONT&gt;&lt;/I&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt; &lt;FONT
style="font-size: 10pt"&gt;December&amp;#160;31, 2008 &lt;/FONT&gt; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;FONT style="font-size: 10pt"&gt;Transfers &lt;/FONT&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;FONT style="font-size: 10pt"&gt;Acquired &lt;/FONT&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;FONT style="font-size: 10pt"&gt;Adjustments &lt;/FONT&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;B&gt;&lt;FONT style="font-size: 10pt"&gt;June&amp;#160;30,
2009&lt;/FONT&gt;&lt;/B&gt; &lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom"
style="background: #CCEEFF"&gt; &lt;TD nowrap align="left" valign="bottom"
style="border-top: 1px solid #000000"&gt; &lt;DIV style="text-indent: -10pt;
margin-left: 10pt"&gt; Aerospace Systems &lt;/DIV&gt; &lt;/TD&gt; &lt;TD style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 1px solid #000000"&gt; $ &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom" style="border-top: 1px solid #000000"&gt;
3,748 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; $ &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 1px solid #000000"&gt; 41 &lt;/TD&gt; &lt;TD
nowrap align="left" valign="bottom" style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
1px solid #000000"&gt; $ &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; 5 &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom" style="border-top: 1px solid #000000"&gt;
$ &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
1px solid #000000"&gt; 7 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 1px solid #000000"&gt; &lt;B&gt;$&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
1px solid #000000"&gt; &lt;B&gt;3,801&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap
align="left" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom"&gt; &lt;TD nowrap align="left"
valign="bottom"&gt; &lt;DIV style="text-indent: -10pt; margin-left: 10pt"&gt;
Electronic Systems &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom"&gt; 2,428 &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom"&gt; (26 &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom"&gt; ) &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;2,402&lt;/B&gt; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt;
&lt;TR valign="bottom" style="background: #CCEEFF"&gt; &lt;TD nowrap align="left"
valign="bottom"&gt; &lt;DIV style="text-indent: -10pt; margin-left: 10pt"&gt;
Information Systems &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom"&gt; 6,399 &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom"&gt; (138 &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom"&gt; ) &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom"&gt; 6 &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom"&gt; &lt;B&gt;6,267&lt;/B&gt; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt;
&lt;TR valign="bottom"&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&lt;DIV style="text-indent: -10pt; margin-left: 10pt"&gt; Shipbuilding &lt;/DIV&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
1,141 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&lt;B&gt;1,141&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom" style="background:
#CCEEFF"&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &lt;DIV style="text-indent:
-10pt; margin-left: 10pt"&gt; Technical Services &lt;/DIV&gt; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 802
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 123
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;925&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;/TR&gt; &lt;TR style="font-size: 1pt"&gt; &lt;TD nowrap align="left" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom"&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &lt;DIV style="text-indent:
-10pt; margin-left: 10pt"&gt; Total &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; $ &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; 14,518 &lt;/TD&gt; &lt;TD
nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; $ &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; - &lt;/TD&gt; &lt;TD nowrap
align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; $ &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; 5 &lt;/TD&gt; &lt;TD nowrap
align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; $ &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; 13 &lt;/TD&gt; &lt;TD nowrap
align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;$&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;14,536&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;/TR&gt; &lt;TR style="font-size: 1pt"&gt; &lt;TD nowrap align="left" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom" style="border-top: 2px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;/TABLE&gt; &lt;DIV
align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size:
10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"&gt;
&lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; &lt;I&gt;Transfers&lt;/I&gt;&amp;#160;&amp;#150;
During the first quarter of 2009, the company realigned certain logistics,
services, and technical support programs and transferred assets from the Information
Systems and Electronic Systems segments to the Technical Services segment.
As a result of this realignment, goodwill of approximately $123&amp;#160;million
was reallocated between these segments. Additionally during the first quarter
of 2009, the company transferred certain optics and laser programs from the
Information Systems segment to the Aerospace Systems segment resulting in
the reallocation of goodwill of approximately $41&amp;#160;million. &lt;/DIV&gt;
&lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size:
10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"&gt;
&lt;B&gt;&lt;FONT style="font-family: 'Times New Roman', Times"&gt;Purchased
Intangible Assets&lt;/FONT&gt;&lt;/B&gt; &lt;/DIV&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; The table below
summarizes the company&amp;#146;s aggregate purchased intangible assets: &lt;/DIV&gt;
&lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0"
style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; &lt;!-- Table Width Row BEGIN --&gt; &lt;TR style="font-size:
1pt" valign="bottom"&gt; &lt;TD width="35%"&gt;&amp;nbsp;&lt;/TD&gt; &lt;!--
colindex=01 type=maindata --&gt; &lt;TD width="2%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=gutter --&gt; &lt;TD width="3%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=body --&gt; &lt;TD width="3%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=hang1 --&gt; &lt;TD width="3%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=gutter --&gt; &lt;TD width="5%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=body --&gt; &lt;TD width="5%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=hang1 --&gt; &lt;TD width="3%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=gutter --&gt; &lt;TD width="3%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=body --&gt; &lt;TD width="3%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=hang1 --&gt; &lt;TD width="3%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=gutter --&gt; &lt;TD width="3%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=body --&gt; &lt;TD width="3%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=hang1 --&gt; &lt;TD width="3%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=06 type=gutter --&gt; &lt;TD width="4%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=06 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=06 type=body --&gt; &lt;TD width="4%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=06 type=hang1 --&gt; &lt;TD width="3%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=07 type=gutter --&gt; &lt;TD width="3%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=07 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=07 type=body --&gt; &lt;TD width="3%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=07 type=hang1 --&gt; &lt;/TR&gt; &lt;!-- Table Width Row
END --&gt; &lt;TR style="font-size: 9pt" valign="bottom" align="center"&gt;
&lt;TD nowrap align="center" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="11" align="center" valign="bottom"&gt;
&lt;B&gt;June&amp;#160;30, 2009&lt;/B&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD colspan="11" align="center" valign="bottom"&gt; December&amp;#160;31,
2008 &lt;/TD&gt; &lt;/TR&gt; &lt;TR style="font-size: 9pt" valign="bottom"
align="center"&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom" style="border-top: 1px solid #000000"&gt; &lt;B&gt;Gross&lt;BR&gt;
&lt;/B&gt; &lt;/TD&gt; &lt;TD style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom" style="border-top: 1px solid #000000"&gt; &lt;B&gt;Net&lt;BR&gt;
&lt;/B&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3"
nowrap align="center" valign="bottom" style="border-top: 1px solid #000000"&gt;
Gross&lt;BR&gt; &lt;/TD&gt; &lt;TD style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom" style="border-top: 1px solid #000000"&gt; Net&lt;BR&gt; &lt;/TD&gt;
&lt;/TR&gt; &lt;TR style="font-size: 9pt" valign="bottom" align="center"&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt;
&lt;B&gt;Carrying&lt;BR&gt; &lt;/B&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD colspan="3" nowrap align="center" valign="bottom"&gt; &lt;B&gt;Accumulated&lt;BR&gt;
&lt;/B&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3"
nowrap align="center" valign="bottom"&gt; &lt;B&gt;Carrying&lt;BR&gt; &lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; Carrying&lt;BR&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD colspan="3" nowrap align="center" valign="bottom"&gt; Accumulated&lt;BR&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; Carrying&lt;BR&gt; &lt;/TD&gt; &lt;/TR&gt; &lt;TR style="font-size:
8pt" valign="bottom" align="center"&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&lt;I&gt;&lt;FONT style="font-size: 9pt"&gt;$ in millions&lt;/FONT&gt;&lt;/I&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;B&gt;&lt;FONT style="font-size: 9pt"&gt;Amount&lt;/FONT&gt;&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;B&gt;&lt;FONT style="font-size: 9pt"&gt;Amortization&lt;/FONT&gt;&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;B&gt;&lt;FONT style="font-size: 9pt"&gt;Amount&lt;/FONT&gt;&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;FONT style="font-size: 9pt"&gt;Amount &lt;/FONT&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;FONT style="font-size: 9pt"&gt;Amortization &lt;/FONT&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;FONT style="font-size: 9pt"&gt;Amount &lt;/FONT&gt;
&lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom" style="background: #CCEEFF"&gt;
&lt;TD align="left" valign="bottom" style="border-top: 1px solid #000000"&gt;
&lt;DIV style="text-indent: -10pt; margin-left: 10pt"&gt; Contract and program
intangibles &lt;/DIV&gt; &lt;/TD&gt; &lt;TD style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
1px solid #000000"&gt; &lt;B&gt;$&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 1px solid #000000"&gt; &lt;B&gt;2,672&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &lt;B&gt;$&lt;/B&gt; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000"&gt;
&lt;B&gt;(1,770&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"
style="border-top: 1px solid #000000"&gt; &lt;B&gt;)&lt;/B&gt; &lt;/TD&gt;
&lt;TD style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom" style="border-top: 1px solid #000000"&gt;
&lt;B&gt;$&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &lt;B&gt;902&lt;/B&gt; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
1px solid #000000"&gt; $ &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; 2,642 &lt;/TD&gt; &lt;TD nowrap
align="left" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000"&gt;
$ &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
1px solid #000000"&gt; (1,720 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"
style="border-top: 1px solid #000000"&gt; ) &lt;/TD&gt; &lt;TD style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 1px solid #000000"&gt; $ &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom" style="border-top: 1px solid #000000"&gt;
922 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom"&gt;
&lt;TD align="left" valign="bottom"&gt; &lt;DIV style="text-indent: -10pt;
margin-left: 10pt"&gt; Other purchased intangibles &lt;/DIV&gt; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;100&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;(77&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &lt;B&gt;)&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&lt;B&gt;23&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
100 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
(75 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; ) &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 25
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;/TR&gt; &lt;TR style="font-size: 1pt"&gt; &lt;TD nowrap align="left" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom"
style="background: #CCEEFF"&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&lt;DIV style="text-indent: -10pt; margin-left: 10pt"&gt; Total &lt;/DIV&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &lt;B&gt;$&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &lt;B&gt;2,772&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;$&lt;/B&gt; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;(1,847&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &lt;B&gt;)&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &lt;B&gt;$&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &lt;B&gt;925&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; $ &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom"&gt; 2,742 &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; $ &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom"&gt; (1,795 &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom"&gt; ) &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom"&gt; $ &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; 947 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;TR style="font-size: 1pt"&gt; &lt;TD
nowrap align="left" valign="bottom" style="border-top: 2px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom" style="border-top: 2px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom" style="border-top: 2px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom" style="border-top: 2px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom" style="border-top: 2px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom" style="border-top: 2px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom" style="border-top: 2px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;/TABLE&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; &lt;/DIV&gt; &lt;DIV
style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV
align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size:
10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"&gt;
The company&amp;#146;s purchased intangible assets are subject to amortization
and are being amortized on a straight-line basis over an aggregate weighted-average
period of 21&amp;#160;years. Aggregate amortization expense for the three
and six months ended June&amp;#160;30, 2009, was $26&amp;#160;million and
$52&amp;#160;million, respectively. &lt;/DIV&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; The table below
shows expected amortization for purchased intangibles for the remainder of
2009 and for the next five years: &lt;/DIV&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;TABLE border="0" width="100%"
align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family:
'Times New Roman', Times; color: #000000; background: #FFFFFF"&gt; &lt;!--
Table Width Row BEGIN --&gt; &lt;TR style="font-size: 1pt" valign="bottom"&gt;
&lt;TD width="95%"&gt;&amp;nbsp;&lt;/TD&gt; &lt;!-- colindex=01 type=maindata
--&gt; &lt;TD width="2%"&gt;&amp;nbsp;&lt;/TD&gt; &lt;!-- colindex=02 type=gutter
--&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt; &lt;!-- colindex=02
type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=body --&gt; &lt;TD width="1%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=hang1 --&gt; &lt;/TR&gt; &lt;!-- Table Width Row
END --&gt; &lt;TR style="font-size: 8pt" valign="bottom" align="center"&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &lt;I&gt;&lt;FONT style="font-size:
10pt"&gt;$ in millions&lt;/FONT&gt;&lt;/I&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom" style="background: #CCEEFF"&gt;
&lt;TD align="left" valign="bottom" style="border-top: 1px solid #000000"&gt;
&lt;DIV style="text-indent: -10pt; margin-left: 10pt"&gt; Year ending December&amp;#160;31
&lt;/DIV&gt; &lt;/TD&gt; &lt;TD style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom"&gt; &lt;TD align="left"
valign="bottom"&gt; &lt;DIV style="text-indent: -10pt; margin-left: 30pt"&gt;
2009 (July&amp;#160;1 - December&amp;#160;31) &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; $ &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; 51 &lt;/TD&gt; &lt;TD nowrap
align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;TR
valign="bottom" style="background: #CCEEFF"&gt; &lt;TD nowrap align="left"
valign="bottom"&gt; &lt;DIV style="text-indent: -10pt; margin-left: 30pt"&gt;
2010 &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; 93 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom"&gt; &lt;TD nowrap
align="left" valign="bottom"&gt; &lt;DIV style="text-indent: -10pt; margin-left:
30pt"&gt; 2011 &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom"&gt; 56 &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom"
style="background: #CCEEFF"&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&lt;DIV style="text-indent: -10pt; margin-left: 30pt"&gt; 2012 &lt;/DIV&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
55 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;/TR&gt; &lt;TR valign="bottom"&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&lt;DIV style="text-indent: -10pt; margin-left: 30pt"&gt; 2013 &lt;/DIV&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
45 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;/TR&gt; &lt;TR valign="bottom" style="background: #CCEEFF"&gt; &lt;TD
nowrap align="left" valign="bottom"&gt; &lt;DIV style="text-indent: -10pt;
margin-left: 30pt"&gt; 2014 &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; 36 &lt;/TD&gt; &lt;TD nowrap
align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;TR
style="font-size: 1pt"&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;/TABLE&gt; &lt;DIV
align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size:
10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"&gt;
&lt;/DIV&gt; &lt;/DIV&gt; </us-gaap:GoodwillAndIntangibleAssetsDisclosureTextBlock>
<us-gaap:ScheduleOfLossContingenciesByContingencyTextBlock
contextRef="FY2009Q2YTD">&lt;!-- PAGEBREAK --&gt; &lt;DIV style="width: 87%;
margin-left: 6%"&gt;&lt;!-- BEGIN PAGE WIDTH --&gt; &lt;!-- XBRL --&gt; &lt;!--
XBRL,N --&gt; &lt;DIV style="margin-top: 9pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size:
10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"&gt;&lt;!--
TABLE 05 --&gt; &lt;TR&gt; &lt;TD width="3%"&gt;&lt;/TD&gt; &lt;TD width="97%"&gt;&lt;/TD&gt;
&lt;/TR&gt; &lt;TR valign="top"&gt; &lt;TD&gt; &lt;B&gt;&lt;FONT style="font-family:
'Times New Roman', Times"&gt;9.&amp;#160;&amp;#160;&lt;/FONT&gt;&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &lt;A name='116'&gt;&lt;/A&gt;&lt;B&gt;&lt;FONT style="font-family:
'Times New Roman', Times"&gt;LITIGATION&lt;/FONT&gt;&lt;/B&gt; &lt;/TD&gt;
&lt;/TR&gt; &lt;/TABLE&gt; &lt;!-- XBRL,BODY --&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; &lt;I&gt;U.S.&amp;#160;Government
Investigations and Claims&lt;/I&gt;&amp;#160;&amp;#150; Departments and agencies
of the U.S.&amp;#160;Government have the authority to investigate various
transactions and operations of the company, and the results of such investigations
may lead to administrative, civil or criminal proceedings, the ultimate outcome
of which could be fines, penalties, repayments or compensatory or treble damages.
U.S.&amp;#160;Government regulations provide that certain findings against
a contractor may lead to suspension or debarment from future U.S.&amp;#160;Government
contracts or the loss of export privileges for a company or an operating division
or subdivision. Suspension or debarment could have a material adverse effect
on the company because of its reliance on government contracts. &lt;/DIV&gt;
&lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; On June&amp;#160;22, 2007, a putative class action
was commenced against the Northrop Grumman Pension Plan and the Northrop Grumman
Retirement Plan B and their corresponding administrative committees, styled
as &lt;I&gt;Skinner et&amp;#160;al.&amp;#160;v. Northrop Grumman Pension Plan,
etc., et al. &lt;/I&gt;filed in the U.S.&amp;#160;District Court for the Central
District of California. The putative class representatives alleged violations
of ERISA and breaches of fiduciary duty concerning a 2003 modification to
the Northrop Grumman Retirement Plan B. The modification relates to the employer
funded portion of the pension benefit available during a five-year transition
period that ended on June&amp;#160;30, 2008. The plaintiffs dismissed the
Northrop Grumman Pension Plan, and on March&amp;#160;10, 2008, the trial court
granted summary judgment in favor of all remaining defendants on all claims.
The plaintiffs appealed that ruling to the Ninth Circuit Court of Appeals,
and on May&amp;#160;21, 2009, the Ninth Circuit reversed the decision of the
trial court, finding that there was an ambiguity in a 1998 summary plan description
related to the employer funded component of the pension benefit. The Ninth
Circuit remanded the matter back to the trial court for further proceedings
consistent with its ruling. &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size:
1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left: 0%;
margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New
Roman', Times; color: #000000; background: #FFFFFF"&gt; As previously disclosed,
on April&amp;#160;2, 2009, the company reached an agreement with the U.S.&amp;#160;Government
to settle two legal matters. The first matter involved potentially substantial
claims by the U.S.&amp;#160;Department of Justice and a restricted U.S.&amp;#160;Government
customer relating to certain microelectronic parts produced by the Space and
Electronics Sector of former TRW Inc., now a part of the company. The second
matter covered by the settlement agreement involved a lawsuit filed by the
company in 1996 against the U.S.&amp;#160;Government in the U.S.&amp;#160;Court
of Federal Claims for recovery of uncompensated performance costs, investments
and a reasonable profit on the Tri-Service Standoff Attack Missile (TSSAM)
program which the customer terminated for convenience. The U.S.&amp;#160;Department
of Justice valued both of these claims at $325&amp;#160;million, and as such,
the settlement amounts for the two matters are equal and offset each other.
The company had previously recorded an accrual for its settlement offer on
the microelectronics parts matter. Since these matters were settled jointly
and at equal values, the company recognized a gain of $99&amp;#160;million
in the second quarter of 2009 representing the remainder of the accrued settlement
offer, net of expenses. The settlement agreement did not have an impact on
the company&amp;#146;s cash flows. &lt;/DIV&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; In the second
quarter of 2007, the U.S.&amp;#160;Coast Guard issued a revocation of acceptance
under the Deepwater Program for eight converted 123-foot patrol boats (the
vessels) based on alleged &amp;#147;hull buckling and shaft alignment problems&amp;#148;
and alleged &amp;#147;nonconforming topside equipment&amp;#148; on the vessels.
The company submitted a written response that argued that the revocation of
acceptance was improper, and in late December 2007, the Coast Guard advised
Integrated Coast Guard Systems (the contractors&amp;#146; joint venture for
performing the Deepwater Program, the &amp;#147;Joint Venture&amp;#148;) that
the Coast Guard was seeking $96.1&amp;#160;million from the Joint Venture
as a result of the revocation of acceptance of the eight vessels delivered
under the 123-foot conversion program. The majority of the costs associated
with the 123-foot conversion effort are associated with the alleged structural
deficiencies of the vessels, which were converted under contracts with the
company and a subcontractor to the company. In May 2008, the Coast Guard advised
the Joint Venture that the Coast Guard would support an investigation by the
U.S.&amp;#160;Department of Justice of the Joint Venture and its subcontractors
instead of pursuing its $96.1&amp;#160;million claim independently. The Department
of Justice had previously issued subpoenas related to the Deepwater Program,
pursuant to which the company has provided responsive documents. On February&amp;#160;6,
2009, the U.S.&amp;#160;Department of Justice notified the U.S.&amp;#160;District
Court for the Northern District of Texas that the U.S.&amp;#160;Government
&amp;#147;is not intervening at this time&amp;#148; in what was then a sealed
False Claims Act complaint. On February&amp;#160;12, 2009, the Court unsealed
the complaint filed by Michael J. DeKort, a former Lockheed Martin employee,
against Integrated Coast Guard Systems, Lockheed Martin Corporation and the
company, relating to the 123-foot conversion effort. Based upon the information
available to the company to date, the company believes that it has substantive
defenses to any potential claims but can give no assurance that the company
will prevail in this litigation. &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt;
font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; In August 2008,
the company disclosed to the Antitrust Division of the U.S.&amp;#160;Department
of Justice possible violations of federal antitrust laws in connection with
the bidding process for certain maintenance contracts at a military installation
in California. In February 2009, the company and the Department of Justice
signed an agreement admitting the company into the Corporate Leniency Program.
As a result of the company&amp;#146;s acceptance into the Program, the company
will be exempt from federal criminal prosecution and criminal fines relating
to the matters the company reported to the Department of Justice if the company
complies with certain conditions, including its continued cooperation with
the government&amp;#146;s investigation and its agreement to make restitution
if the government was harmed by the violations. &lt;/DIV&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; Based upon the
available information regarding matters that are subject to U.S.&amp;#160;Government
investigations, the company believes that the outcome of any such matters
would not have a material adverse effect on its consolidated financial position,
results of operations or cash flows. &lt;/DIV&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; &lt;I&gt;Litigation&lt;/I&gt;&amp;#160;&amp;#150;
Various claims and legal proceedings arise in the ordinary course of business
and are pending against the company and its properties. Based upon the information
available, the company believes that the resolution of any of these various
claims and legal proceedings would not have a material adverse effect on its
consolidated financial position, results of operations, or cash flows. &lt;/DIV&gt;
&lt;!-- XBRL --&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; The company is one of several defendants in litigation
brought by the Orange County Water District in Orange County Superior Court
in California on December&amp;#160;17, 2004, for alleged contribution to volatile
organic chemical contamination of the County&amp;#146;s shallow groundwater.
The lawsuit includes counts against the defendants for violation of the Orange
County Water District Act, the California Super Fund&amp;#160;Act, negligence,
nuisance, trespass and declaratory relief. Among other things, the lawsuit
seeks unspecified damages for the cost of remediation, payment of attorney
fees and costs, and punitive damages. The June 2009 trial date has been vacated
and a status conference has been set for late July 2009. &lt;/DIV&gt; &lt;DIV
style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV
align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size:
10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"&gt;
&lt;I&gt;Insurance Recovery&amp;#160;&amp;#150; &lt;/I&gt;The company is pursuing
legal action against an insurance provider arising out of a disagreement concerning
the coverage of certain losses related to Hurricane Katrina (see Note&amp;#160;10).
The company commenced the action against Factory Mutual Insurance Company
(FM Global) on November&amp;#160;4, 2005, which is now pending in the U.S.&amp;#160;District
Court for the Central District of California, Western Division. In August
2007, the District Court issued an order finding that the excess insurance
policy provided coverage for the company&amp;#146;s Katrina-related loss.
In November 2007, FM Global filed a notice of appeal of the District Court&amp;#146;s
order. On August&amp;#160;14, 2008, the U.S.&amp;#160;Court of Appeals for
the Ninth Circuit reversed the earlier summary judgment order in favor of
the company, holding that the FM Global excess policy unambiguously excludes
damage from the storm surge caused by Hurricane Katrina under its &amp;#147;Flood&amp;#148;
exclusion. The Ninth Circuit remanded the case to the District Court to determine
whether the California efficient proximate cause doctrine affords the company
coverage under the policy even if the Flood exclusion of the policy is unambiguous.
The company filed a Petition for Rehearing En Banc, or in the Alternative,
For Panel Rehearing with the Ninth Circuit on August&amp;#160;27, 2008. On
April&amp;#160;2, 2009, the Ninth Circuit denied the company&amp;#146;s Petition
for Rehearing and remanded the case to the District Court. On June&amp;#160;10,
2009, the company filed a motion seeking leave of court to file a complaint
adding AON Risk Services, Inc. of Southern California as a defendant. Based
on the current status of the litigation, no assurances can be made as to the
ultimate outcome of this matter. &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt;
font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; During 2008, the
company received notification from &lt;FONT style="white-space: nowrap"&gt;Munich-American&lt;/FONT&gt;
Risk Partners (Munich Re), the only remaining insurer within the primary layer
of insurance coverage with which a resolution has not been reached, that it
will pursue arbitration proceedings against the company related to approximately
$19&amp;#160;million owed by Munich Re to Northrop Grumman Risk Management
Inc. (NGRMI), a wholly-owned subsidiary of the company, for certain losses
related to Hurricane Katrina. The company was subsequently notified that Munich
Re also will seek reimbursement of approximately $44&amp;#160;million of funds
previously advanced to NGRMI for payment of claim losses of which Munich Re
provided reinsurance protection to NGRMI pursuant to an executed reinsurance
contract, and $6&amp;#160;million of adjustment expenses. The company believes
that NGRMI is entitled to full reimbursement of its covered losses under the
reinsurance contract and has substantive defenses to the claim of Munich Re
for return of the funds paid to date. &lt;/DIV&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; &lt;I&gt;Provisions
for Legal&amp;#160;&amp;#038; Investigative Matters&lt;/I&gt;&amp;#160;&amp;#150;
Litigation accruals are recorded as charges to earnings when management, after
taking into consideration the facts and circumstances of each matter, including
any settlement offers, has determined that it is probable that a liability
has been incurred and the amount of the loss can be reasonably estimated.
The ultimate resolution of any exposure to the company may vary from earlier
estimates as further facts and circumstances become known. During the three
months ended June&amp;#160;30, 2009, the company recorded provisions totaling
$35&amp;#160;million for various legal and investigative matters. &lt;/DIV&gt;
&lt;/DIV&gt;&lt;!-- END PAGE WIDTH --&gt; </us-gaap:ScheduleOfLossContingenciesByContingencyTextBlock>
<us-gaap:PensionAndOtherPostretirementBenefitsDisclosureTextBlock
contextRef="FY2009Q2YTD">&lt;!-- PAGEBREAK --&gt; &lt;DIV style="width: 87%;
margin-left: 6%"&gt;&lt;!-- BEGIN PAGE WIDTH --&gt; &lt;!-- XBRL --&gt; &lt;!--
XBRL,N --&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size:
10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"&gt;&lt;!--
TABLE 05 --&gt; &lt;TR&gt; &lt;TD width="3%"&gt;&lt;/TD&gt; &lt;TD width="97%"&gt;&lt;/TD&gt;
&lt;/TR&gt; &lt;TR valign="top"&gt; &lt;TD&gt; &lt;B&gt;&lt;FONT style="font-family:
'Times New Roman', Times"&gt;11.&amp;#160;&lt;/FONT&gt;&lt;/B&gt; &lt;/TD&gt;
&lt;TD&gt; &lt;A name='118'&gt;&lt;/A&gt;&lt;B&gt;&lt;FONT style="font-family:
'Times New Roman', Times"&gt;RETIREMENT BENEFITS&lt;/FONT&gt;&lt;/B&gt; &lt;/TD&gt;
&lt;/TR&gt; &lt;/TABLE&gt; &lt;!-- XBRL,BODY --&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; The cost of the
company&amp;#146;s pension plans and medical and life benefits plans is shown
in the following table: &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size:
1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;TABLE border="0" width="100%" align="center"
cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt;&lt;!-- TABLE 01
--&gt; &lt;!-- Table Width Row BEGIN --&gt; &lt;TR style="font-size: 1pt"
valign="bottom"&gt; &lt;TD width="43%"&gt;&amp;nbsp;&lt;/TD&gt; &lt;!-- colindex=01
type=maindata --&gt; &lt;TD width="2%"&gt;&amp;nbsp;&lt;/TD&gt; &lt;!-- colindex=02
type=gutter --&gt; &lt;TD width="2%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=body --&gt; &lt;TD width="2%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=hang1 --&gt; &lt;TD width="3%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=gutter --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=body --&gt; &lt;TD width="1%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=hang1 --&gt; &lt;TD width="3%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=gutter --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=body --&gt; &lt;TD width="1%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=hang1 --&gt; &lt;TD width="3%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=gutter --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=body --&gt; &lt;TD width="1%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=hang1 --&gt; &lt;TD width="3%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=06 type=gutter --&gt; &lt;TD width="2%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=06 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=06 type=body --&gt; &lt;TD width="2%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=06 type=hang1 --&gt; &lt;TD width="3%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=07 type=gutter --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=07 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=07 type=body --&gt; &lt;TD width="1%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=07 type=hang1 --&gt; &lt;TD width="3%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=08 type=gutter --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=08 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=08 type=body --&gt; &lt;TD width="1%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=08 type=hang1 --&gt; &lt;TD width="3%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=09 type=gutter --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=09 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=09 type=body --&gt; &lt;TD width="1%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=09 type=hang1 --&gt; &lt;/TR&gt; &lt;!-- Table Width Row
END --&gt; &lt;TR style="font-size: 10pt" valign="bottom" align="center"&gt;
&lt;TD nowrap align="center" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="15" nowrap align="center" valign="bottom"
style="border-bottom: 1px solid #000000"&gt; Three Months Ended June&amp;#160;30
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="15" nowrap align="center"
valign="bottom" style="border-bottom: 1px solid #000000"&gt; Six Months Ended
June&amp;#160;30 &lt;/TD&gt; &lt;/TR&gt; &lt;TR style="font-size: 10pt" valign="bottom"
align="center"&gt; &lt;TD nowrap align="center" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="7" nowrap align="center"
valign="bottom"&gt; Pension&lt;BR&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD colspan="7" nowrap align="center" valign="bottom"&gt; Medical and&lt;BR&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="7" nowrap align="center"
valign="bottom"&gt; Pension&lt;BR&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD colspan="7" nowrap align="center" valign="bottom"&gt; Medical and&lt;BR&gt;
&lt;/TD&gt; &lt;/TR&gt; &lt;TR style="font-size: 10pt" valign="bottom" align="center"&gt;
&lt;TD nowrap align="center" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="7" nowrap align="center" valign="bottom"
style="border-bottom: 1px solid #000000"&gt; Benefits &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="7" nowrap align="center" valign="bottom"
style="border-bottom: 1px solid #000000"&gt; Life Benefits &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="7" nowrap align="center" valign="bottom"
style="border-bottom: 1px solid #000000"&gt; Benefits &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="7" nowrap align="center" valign="bottom"
style="border-bottom: 1px solid #000000"&gt; Life Benefits &lt;/TD&gt; &lt;/TR&gt;
&lt;TR style="font-size: 8pt" valign="bottom" align="center"&gt; &lt;TD nowrap
align="left" valign="bottom"&gt; &lt;I&gt;&lt;FONT style="font-size: 10pt"&gt;$
in millions&lt;/FONT&gt;&lt;/I&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD colspan="3" nowrap align="center" valign="bottom"&gt; &lt;B&gt;&lt;FONT
style="font-size: 10pt"&gt;2009&lt;/FONT&gt;&lt;/B&gt; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt;
&lt;FONT style="font-size: 10pt"&gt;2008 &lt;/FONT&gt; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt;
&lt;B&gt;&lt;FONT style="font-size: 10pt"&gt;2009&lt;/FONT&gt;&lt;/B&gt; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;FONT style="font-size: 10pt"&gt;2008 &lt;/FONT&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;B&gt;&lt;FONT style="font-size: 10pt"&gt;2009&lt;/FONT&gt;&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;FONT style="font-size: 10pt"&gt;2008 &lt;/FONT&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;B&gt;&lt;FONT style="font-size: 10pt"&gt;2009&lt;/FONT&gt;&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;FONT style="font-size: 10pt"&gt;2008 &lt;/FONT&gt;
&lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom" style="background: #CCEEFF"&gt;
&lt;TD align="left" valign="bottom" style="border-top: 1px solid #000000"&gt;
&lt;DIV style="text-indent: -10pt; margin-left: 10pt"&gt; &lt;B&gt;Components
of Net Periodic Benefit Cost&lt;/B&gt; &lt;/DIV&gt; &lt;/TD&gt; &lt;TD style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom"&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &lt;DIV style="text-indent:
-10pt; margin-left: 20pt"&gt; Service cost &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;$&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;164&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
$ &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 180 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;$&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;12&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
$ &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 13 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;$&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;329&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
$ &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 361 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;$&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;24&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
$ &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 27 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt;
&lt;TR valign="bottom" style="background: #CCEEFF"&gt; &lt;TD nowrap align="left"
valign="bottom"&gt; &lt;DIV style="text-indent: -10pt; margin-left: 20pt"&gt;
Interest cost &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom"&gt; &lt;B&gt;337&lt;/B&gt; &lt;/TD&gt; &lt;TD
nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 334 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;41&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 42
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;674&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 668
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;82&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 83
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;/TR&gt; &lt;TR valign="bottom"&gt; &lt;TD align="left" valign="bottom"&gt;
&lt;DIV style="text-indent: -10pt; margin-left: 20pt"&gt; Expected return
on plan assets &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom"&gt; &lt;B&gt;(389&lt;/B&gt; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &lt;B&gt;)&lt;/B&gt; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; (474
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; ) &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;(12&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &lt;B&gt;)&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
(16 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; ) &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;(778&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &lt;B&gt;)&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
(949 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; ) &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;(24&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &lt;B&gt;)&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
(32 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; ) &lt;/TD&gt;
&lt;/TR&gt; &lt;TR valign="bottom" style="background: #CCEEFF"&gt; &lt;TD
nowrap align="left" valign="bottom"&gt; &lt;DIV style="text-indent: -10pt;
margin-left: 20pt"&gt; Amortization of: &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt;
&lt;TR valign="bottom"&gt; &lt;TD align="left" valign="bottom"&gt; &lt;DIV
style="text-indent: -10pt; margin-left: 30pt"&gt; Prior service cost (credit)
&lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&lt;B&gt;12&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
10 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;(15&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &lt;B&gt;)&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
(16 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; ) &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;24&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 20
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;(30&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &lt;B&gt;)&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
(32 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; ) &lt;/TD&gt;
&lt;/TR&gt; &lt;TR valign="bottom" style="background: #CCEEFF"&gt; &lt;TD
align="left" valign="bottom"&gt; &lt;DIV style="text-indent: -10pt; margin-left:
30pt"&gt; Net loss from previous years &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;85&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 7 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;7&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 6 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;170&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 13
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;14&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 11
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;/TR&gt; &lt;TR style="font-size: 1pt"&gt; &lt;TD nowrap align="left" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom"&gt;
&lt;TD align="left" valign="bottom"&gt; &lt;DIV style="text-indent: -10pt;
margin-left: 10pt"&gt; &lt;B&gt;Net periodic benefit cost&lt;/B&gt; &lt;/DIV&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &lt;B&gt;$&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &lt;B&gt;209&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; $ &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom"&gt; 57 &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;$&lt;/B&gt; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;33&lt;/B&gt; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; $ &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; 29 &lt;/TD&gt; &lt;TD nowrap
align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;$&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;419&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
$ &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 113 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;$&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;66&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
$ &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 57 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt;
&lt;TR style="font-size: 1pt"&gt; &lt;TD nowrap align="left" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom" style="border-top: 2px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom"
style="background: #CCEEFF"&gt; &lt;TD align="left" valign="bottom"&gt; &lt;DIV
style="text-indent: -10pt; margin-left: 10pt"&gt; &lt;B&gt;Defined contribution
plans cost&lt;/B&gt; &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;$&lt;/B&gt; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;78&lt;/B&gt; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; $ &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; 75 &lt;/TD&gt; &lt;TD nowrap
align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;$&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;160&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
$ &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 150 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt;
&lt;TR style="font-size: 1pt"&gt; &lt;TD nowrap align="left" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom" style="border-top: 2px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;/TABLE&gt; &lt;DIV
align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size:
10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"&gt;
&lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; &lt;I&gt;Employer Contributions&lt;/I&gt;&amp;#160;&amp;#150;
In 2009, the company expects to contribute the required minimum funding level
of approximately $126&amp;#160;million to its pension plans and approximately
$178&amp;#160;million to its other post-retirement benefit plans and also
expects to make additional voluntary pension contributions totaling approximately
$500&amp;#160;million. As of June&amp;#160;30, 2009, contributions of $236&amp;#160;million
and $84&amp;#160;million have been made to the company&amp;#146;s pension
plans and its medical and life benefit plans, respectively. &lt;/DIV&gt; &lt;DIV
style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV
align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size:
10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"&gt;
&lt;I&gt;Defined Contribution Plans&lt;/I&gt;&amp;#160;&amp;#150; The company
also sponsors 401(k) defined contribution plans in which most employees are
eligible to participate, including certain bargaining unit employees. Company
contributions for most plans are based on a cash matching of employee contributions
up to 4&amp;#160;percent of compensation. Certain hourly employees are covered
under a target benefit plan. The company also participates in a multiemployer
plan for certain of the company&amp;#146;s union employees. In addition to
the 401(k) defined contribution benefit, non-union represented employees hired
after June&amp;#160;30, 2008, are eligible to participate in a defined contribution
program in lieu of a defined benefit pension plan. &lt;/DIV&gt; &lt;/DIV&gt;&lt;!--
END PAGE WIDTH --&gt; </us-gaap:PensionAndOtherPostretirementBenefitsDisclosureTextBlock>
<noc:StockCompensationPlansTextBlock contextRef="FY2009Q2YTD">&lt;!-- PAGEBREAK
--&gt; &lt;DIV style="width: 87%; margin-left: 6%"&gt;&lt;!-- BEGIN PAGE WIDTH
--&gt; &lt;DIV style="margin-top: 9pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size:
10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"&gt;
&lt;TR&gt; &lt;TD width="3%"&gt;&lt;/TD&gt; &lt;TD width="97%"&gt;&lt;/TD&gt;
&lt;/TR&gt; &lt;TR valign="top"&gt; &lt;TD&gt; &lt;B&gt;&lt;FONT style="font-family:
'Times New Roman', Times"&gt;12.&amp;#160;&lt;/FONT&gt;&lt;/B&gt; &lt;/TD&gt;
&lt;TD&gt; &lt;A name='119'&gt;&lt;/A&gt;&lt;B&gt;&lt;FONT style="font-family:
'Times New Roman', Times"&gt;STOCK COMPENSATION PLANS&lt;/FONT&gt;&lt;/B&gt;
&lt;/TD&gt; &lt;/TR&gt; &lt;/TABLE&gt; &lt;DIV style="margin-top: 6pt; font-size:
1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left: 0%;
margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New
Roman', Times; color: #000000; background: #FFFFFF"&gt; At June&amp;#160;30,
2009, Northrop Grumman had stock-based compensation awards outstanding under
the following plans: the 2001 Long-Term Incentive Stock Plan, the 1993 Long-Term
Incentive Stock Plan, both applicable to employees, and the 1993 Stock Plan
for Non-Employee Directors and 1995 Stock Plan for Non-Employee Directors,
as amended. All of these plans were approved by the company&amp;#146;s shareholders.
Share-based awards under the employee plans consist of stock option awards
(Stock Options) and restricted stock awards (Stock Awards). &lt;/DIV&gt; &lt;DIV
style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV
align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family:
Arial, Helvetica; color: #000000; background: #FFFFFF"&gt; &lt;B&gt;&lt;FONT
style="font-family: 'Times New Roman', Times"&gt;Compensation Expense&lt;/FONT&gt;&lt;/B&gt;
&lt;/DIV&gt; &lt;DIV align="left" style="margin-left: 0%; margin-right: 0%;
text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color:
#000000; background: #FFFFFF"&gt; Total pre-tax stock-based compensation expense
for the six months ended June&amp;#160;30, 2009, and 2008, was $51&amp;#160;million,
and $83&amp;#160;million, respectively, of which $10&amp;#160;million and
$9&amp;#160;million related to Stock Options and $41&amp;#160;million and
$74&amp;#160;million, related to Stock Awards, respectively. Tax benefits
recognized in the condensed consolidated statements of operations for stock-based
compensation during the six months ended June&amp;#160;30, 2009, and 2008,
were $20&amp;#160;million and $32&amp;#160;million, respectively. In addition,
the company realized tax benefits of $1&amp;#160;million and $22&amp;#160;million
from the exercise of Stock Options and $47&amp;#160;million and $94&amp;#160;million
from the issuance of Stock Awards in the six months ended June&amp;#160;30,
2009 and 2008, respectively. &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt;
font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; At June&amp;#160;30,
2009, there was $215&amp;#160;million of unrecognized compensation expense
related to unvested awards granted under the company&amp;#146;s stock-based
compensation plans, of which $29&amp;#160;million relates to Stock Options
and $186&amp;#160;million relates to Stock Awards. These amounts are expected
to be charged to expense over a &lt;FONT style="white-space: nowrap"&gt;weighted-average&lt;/FONT&gt;
period of 1.6&amp;#160;years. &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt;
font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color:
#000000; background: #FFFFFF"&gt; &lt;B&gt;&lt;FONT style="font-family: 'Times
New Roman', Times"&gt;Stock Options&lt;/FONT&gt;&lt;/B&gt; &lt;/DIV&gt; &lt;DIV
align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size:
10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"&gt;
The fair value of each of the company&amp;#146;s Stock Option awards is estimated
on the date of grant using a &lt;FONT style="white-space: nowrap"&gt;Black-Scholes&lt;/FONT&gt;
option-pricing model that uses the assumptions noted in the table below. The
fair value of the company&amp;#146;s Stock Option awards is expensed on a
straight-line basis over the vesting period of the options, which is generally
three to four years. Expected volatility is based on an average of (1)&amp;#160;historical
volatility of the company&amp;#146;s stock and (2)&amp;#160;implied volatility
from traded options on the company&amp;#146;s stock. The risk-free rate for
periods within the contractual life of the Stock Option award is based on
the yield curve of a zero-coupon U.S.&amp;#160;Treasury bond on the date the
award is granted with a maturity equal to the expected term of the award.
The company uses historical data to estimate future forfeitures. The expected
term of awards granted is derived from historical experience under the company&amp;#146;s
stock-based compensation plans and represents the period of time that awards
granted are expected to be outstanding. &lt;/DIV&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; The significant
weighted-average assumptions relating to the valuation of the company&amp;#146;s
Stock Options for the six months ended June&amp;#160;30, 2009 and 2008, were
as follows: &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0"
style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; &lt;!-- Table Width Row BEGIN --&gt; &lt;TR style="font-size:
1pt" valign="bottom"&gt; &lt;TD width="89%"&gt;&amp;nbsp;&lt;/TD&gt; &lt;!--
colindex=01 type=maindata --&gt; &lt;TD width="2%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=gutter --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=body --&gt; &lt;TD width="1%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=hang1 --&gt; &lt;TD width="3%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=gutter --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=body --&gt; &lt;TD width="1%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=hang1 --&gt; &lt;/TR&gt; &lt;!-- Table Width Row
END --&gt; &lt;TR style="font-size: 8pt" valign="bottom" align="center"&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt;
&lt;B&gt;&lt;FONT style="font-size: 10pt"&gt;2009&lt;/FONT&gt;&lt;/B&gt; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;FONT style="font-size: 10pt"&gt;2008 &lt;/FONT&gt;
&lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom" style="background: #CCEEFF"&gt;
&lt;TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000"&gt;
&lt;DIV style="text-indent: -10pt; margin-left: 10pt"&gt; Dividend yield &lt;/DIV&gt;
&lt;/TD&gt; &lt;TD style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
1px solid #000000"&gt; &lt;B&gt;3.3&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom" style="border-top: 1px solid #000000"&gt; &lt;B&gt;%&lt;/B&gt;
&lt;/TD&gt; &lt;TD style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
1px solid #000000"&gt; 1.8 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"
style="border-top: 1px solid #000000"&gt; % &lt;/TD&gt; &lt;/TR&gt; &lt;TR
valign="bottom"&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &lt;DIV
style="text-indent: -10pt; margin-left: 10pt"&gt; Volatility rate &lt;/DIV&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&lt;B&gt;25&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&lt;B&gt;%&lt;/B&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom"&gt; 20 &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom"&gt; % &lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom" style="background:
#CCEEFF"&gt; &lt;TD align="left" valign="bottom"&gt; &lt;DIV style="text-indent:
-10pt; margin-left: 10pt"&gt; Risk-free interest rate &lt;/DIV&gt; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;1.7&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &lt;B&gt;%&lt;/B&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
2.8 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; % &lt;/TD&gt;
&lt;/TR&gt; &lt;TR valign="bottom"&gt; &lt;TD align="left" valign="bottom"&gt;
&lt;DIV style="text-indent: -10pt; margin-left: 10pt"&gt; Expected option
life (years) &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom"&gt; &lt;B&gt;6&lt;/B&gt; &lt;/TD&gt; &lt;TD
nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 6 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt;
&lt;/TABLE&gt; &lt;DIV align="left" style="margin-left: 0%; margin-right:
0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times;
color: #000000; background: #FFFFFF"&gt; &lt;/DIV&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; The weighted-average
grant date fair value of Stock Options granted during the six months ended
June&amp;#160;30, 2009 and 2008, was $7 and $15, per share, respectively.
&lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; Stock Option activity for the six months ended June&amp;#160;30,
2009, was as follows: &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size:
1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;TABLE border="0" width="100%" align="center"
cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; &lt;!-- Table
Width Row BEGIN --&gt; &lt;TR style="font-size: 1pt" valign="bottom"&gt; &lt;TD
width="44%"&gt;&amp;nbsp;&lt;/TD&gt; &lt;!-- colindex=01 type=maindata --&gt;
&lt;TD width="2%"&gt;&amp;nbsp;&lt;/TD&gt; &lt;!-- colindex=02 type=gutter
--&gt; &lt;TD width="5%" align="right"&gt;&amp;nbsp;&lt;/TD&gt; &lt;!-- colindex=02
type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=body --&gt; &lt;TD width="5%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=hang1 --&gt; &lt;TD width="2%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=gutter --&gt; &lt;TD width="5%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=body --&gt; &lt;TD width="5%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=hang1 --&gt; &lt;TD width="2%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=gutter --&gt; &lt;TD width="7%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=body --&gt; &lt;TD width="7%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=hang1 --&gt; &lt;TD width="2%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=gutter --&gt; &lt;TD width="5%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=body --&gt; &lt;TD width="5%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=05 type=hang1 --&gt; &lt;/TR&gt; &lt;!-- Table Width Row
END --&gt; &lt;TR style="font-size: 10pt" valign="bottom" align="center"&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt;
Shares&lt;BR&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3"
nowrap align="center" valign="bottom"&gt; Weighted-&lt;BR&gt; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; Weighted-Average&lt;BR&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt; Aggregate&lt;BR&gt;
&lt;/TD&gt; &lt;/TR&gt; &lt;TR style="font-size: 10pt" valign="bottom" align="center"&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt;
Under Option&lt;BR&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
colspan="3" nowrap align="center" valign="bottom"&gt; Average&lt;BR&gt; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; Remaining&lt;BR&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt; Intrinsic
Value&lt;BR&gt; &lt;/TD&gt; &lt;/TR&gt; &lt;TR style="font-size: 8pt" valign="bottom"
align="center"&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;FONT style="font-size: 10pt"&gt;(In thousands) &lt;/FONT&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;FONT style="font-size: 10pt"&gt;Exercise Price &lt;/FONT&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;FONT style="font-size: 10pt"&gt;Contractual Term &lt;/FONT&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;FONT style="font-size: 10pt"&gt;($ in millions) &lt;/FONT&gt;
&lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom" style="background: #CCEEFF"&gt;
&lt;TD align="left" valign="bottom" style="border-top: 1px solid #000000"&gt;
&lt;DIV style="text-indent: -10pt; margin-left: 10pt"&gt; Outstanding at January&amp;#160;1,
2009 &lt;/DIV&gt; &lt;/TD&gt; &lt;TD style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 1px solid #000000"&gt; 13,481 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
1px solid #000000"&gt; $ &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; 54 &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom" style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
1px solid #000000"&gt; 4.2&amp;#160;years &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom" style="border-top: 1px solid #000000"&gt;
$ &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
1px solid #000000"&gt; 18 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt;
&lt;TR valign="bottom"&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&lt;DIV style="text-indent: -10pt; margin-left: 20pt"&gt; Granted &lt;/DIV&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
2,711 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
45 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;/TR&gt; &lt;TR valign="bottom" style="background: #CCEEFF"&gt; &lt;TD
nowrap align="left" valign="bottom"&gt; &lt;DIV style="text-indent: -10pt;
margin-left: 20pt"&gt; Exercised &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; (443 &lt;/TD&gt; &lt;TD nowrap
align="left" valign="bottom"&gt; ) &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom"&gt; 43 &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt;
&lt;TR valign="bottom"&gt; &lt;TD align="left" valign="bottom"&gt; &lt;DIV
style="text-indent: -10pt; margin-left: 20pt"&gt; Cancelled and forfeited
&lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
(298 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; ) &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 54
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;/TR&gt; &lt;TR style="font-size: 1pt"&gt; &lt;TD nowrap align="left" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom"
style="background: #CCEEFF"&gt; &lt;TD align="left" valign="bottom"&gt; &lt;DIV
style="text-indent: -10pt; margin-left: 10pt"&gt; &lt;B&gt;Outstanding at
June&amp;#160;30, 2009&lt;/B&gt; &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;15,451&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&lt;B&gt;$&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&lt;B&gt;53&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&lt;B&gt;4.3&amp;#160;years&lt;/B&gt; &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;$&lt;/B&gt; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;19&lt;/B&gt; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt;
&lt;TR style="font-size: 1pt"&gt; &lt;TD nowrap align="left" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom" style="border-top: 2px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom"&gt;
&lt;TD align="left" valign="bottom"&gt; &lt;DIV style="text-indent: -10pt;
margin-left: 20pt"&gt; Vested and expected to vest in the &lt;/DIV&gt; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;/TR&gt; &lt;TR valign="bottom" style="background: #CCEEFF"&gt; &lt;TD
align="left" valign="bottom"&gt; &lt;DIV style="text-indent: -10pt; margin-left:
30pt"&gt; future at June&amp;#160;30, 2009 &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 15,254 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; $ &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; 53 &lt;/TD&gt; &lt;TD nowrap
align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; 4.1&amp;#160;years &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; $ &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; 19 &lt;/TD&gt; &lt;TD nowrap
align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;TR
style="font-size: 1pt"&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom"&gt;
&lt;TD align="left" valign="bottom"&gt; &lt;DIV style="text-indent: -10pt;
margin-left: 10pt"&gt; Exercisable at June&amp;#160;30, 2009 &lt;/DIV&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
11,551 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; $ &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
52 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 3.4&amp;#160;years
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
$ &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 17 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt;
&lt;TR style="font-size: 1pt"&gt; &lt;TD nowrap align="left" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom" style="border-top: 2px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom"
style="background: #CCEEFF"&gt; &lt;TD align="left" valign="bottom"&gt; &lt;DIV
style="text-indent: -10pt; margin-left: 10pt"&gt; Available for grant at June&amp;#160;30,
2009 &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; 8,734 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;/TR&gt; &lt;TR style="font-size: 1pt"&gt; &lt;TD nowrap align="left"
valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom" style="border-top: 2px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;/TR&gt; &lt;/TABLE&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; &lt;/DIV&gt; &lt;DIV
style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV
align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size:
10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"&gt;
The total intrinsic value of options exercised during the six months ended
June&amp;#160;30, 2009 and 2008, was $3&amp;#160;million and $57&amp;#160;million,
respectively. Intrinsic value is measured as the excess of the fair market
value at the date of exercise (for options exercised) or at June&amp;#160;30,
2009 (for outstanding options), over the applicable exercise price. &lt;/DIV&gt;
&lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size:
10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"&gt;
&lt;B&gt;&lt;FONT style="font-family: 'Times New Roman', Times"&gt;Stock Awards&lt;/FONT&gt;&lt;/B&gt;
&lt;/DIV&gt; &lt;DIV align="left" style="margin-left: 0%; margin-right: 0%;
text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color:
#000000; background: #FFFFFF"&gt; Compensation expense for Stock Awards is
measured at the grant date based on fair value and recognized over the vesting
period. The fair value of Stock Awards is determined based on the closing
market price of the company&amp;#146;s common stock on the grant date. For
purposes of measuring compensation expense, the amount of shares ultimately
expected to vest is estimated at each reporting date based on management&amp;#146;s
expectations regarding the relevant performance criteria. In the table below,
the share adjustment resulting from the final performance measure is considered
granted in the period that the related grant is vested. During the six months
ended June&amp;#160;30, 2009, 2.5&amp;#160;million shares of common stock
were issued to employees in settlement of prior year stock awards that were
fully vested, with a total value upon issuance of $111&amp;#160;million and
a grant date fair value of $161&amp;#160;million. During the six months ended
June&amp;#160;30, 2008, 2.9&amp;#160;million shares of common stock were issued
to employees in settlement of prior year stock awards that were fully vested,
with a total value upon issuance of $233&amp;#160;million and a grant date
fair value of $155&amp;#160;million. There were 1.6&amp;#160;million Stock
Awards granted in the six months ended June&amp;#160;30, 2008, with a weighted-average
grant date fair value of $74 per share. &lt;/DIV&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; Stock Award activity
for the six months ended June&amp;#160;30, 2009, was as follows: &lt;/DIV&gt;
&lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0"
style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; &lt;!-- Table Width Row BEGIN --&gt; &lt;TR style="font-size:
1pt" valign="bottom"&gt; &lt;TD width="51%"&gt;&amp;nbsp;&lt;/TD&gt; &lt;!--
colindex=01 type=maindata --&gt; &lt;TD width="2%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=gutter --&gt; &lt;TD width="5%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=body --&gt; &lt;TD width="5%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=02 type=hang1 --&gt; &lt;TD width="3%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=gutter --&gt; &lt;TD width="7%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=body --&gt; &lt;TD width="7%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=03 type=hang1 --&gt; &lt;TD width="3%"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=gutter --&gt; &lt;TD width="7%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=lead --&gt; &lt;TD width="1%" align="right"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=body --&gt; &lt;TD width="7%" align="left"&gt;&amp;nbsp;&lt;/TD&gt;
&lt;!-- colindex=04 type=hang1 --&gt; &lt;/TR&gt; &lt;!-- Table Width Row
END --&gt; &lt;TR style="font-size: 10pt" valign="bottom" align="center"&gt;
&lt;TD nowrap align="center" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt;
Stock&lt;BR&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3"
nowrap align="center" valign="bottom"&gt; Weighted-Average&lt;BR&gt; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; Weighted-Average&lt;BR&gt; &lt;/TD&gt; &lt;/TR&gt; &lt;TR
style="font-size: 10pt" valign="bottom" align="center"&gt; &lt;TD nowrap align="center"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD colspan="3" nowrap align="center" valign="bottom"&gt; Awards&lt;BR&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; Grant Date&lt;BR&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt; Remaining&lt;BR&gt;
&lt;/TD&gt; &lt;/TR&gt; &lt;TR style="font-size: 8pt" valign="bottom" align="center"&gt;
&lt;TD nowrap align="center" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center" valign="bottom"&gt;
&lt;FONT style="font-size: 10pt"&gt;(In thousands) &lt;/FONT&gt; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;FONT style="font-size: 10pt"&gt;Fair Value &lt;/FONT&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD colspan="3" nowrap align="center"
valign="bottom"&gt; &lt;FONT style="font-size: 10pt"&gt;Contractual Term &lt;/FONT&gt;
&lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom" style="background: #CCEEFF"&gt;
&lt;TD align="left" valign="bottom" style="border-top: 1px solid #000000"&gt;
&lt;DIV style="text-indent: -10pt; margin-left: 10pt"&gt; Outstanding at January&amp;#160;1,
2009 &lt;/DIV&gt; &lt;/TD&gt; &lt;TD style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 1px solid #000000"&gt; 3,276 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
1px solid #000000"&gt; $ &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; 75 &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom" style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
1px solid #000000"&gt; 1.4&amp;#160;years &lt;/TD&gt; &lt;TD nowrap align="left"
valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;/TR&gt; &lt;TR valign="bottom"&gt; &lt;TD align="left" valign="bottom"&gt;
&lt;DIV style="text-indent: -10pt; margin-left: 20pt"&gt; Granted (including
performance adjustment on shares vested) &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 2,354 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 45 &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt;
&lt;TR valign="bottom" style="background: #CCEEFF"&gt; &lt;TD nowrap align="left"
valign="bottom"&gt; &lt;DIV style="text-indent: -10pt; margin-left: 20pt"&gt;
Vested &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; (185 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
) &lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
66 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;/TR&gt; &lt;TR valign="bottom"&gt; &lt;TD nowrap align="left" valign="bottom"&gt;
&lt;DIV style="text-indent: -10pt; margin-left: 20pt"&gt; Forfeited &lt;/DIV&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
(173 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; ) &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; 71
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;/TR&gt; &lt;TR style="font-size: 1pt"&gt; &lt;TD nowrap align="left" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 1px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 1px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
1px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom"
style="background: #CCEEFF"&gt; &lt;TD align="left" valign="bottom"&gt; &lt;DIV
style="text-indent: -10pt; margin-left: 10pt"&gt; &lt;B&gt;Outstanding at
June&amp;#160;30, 2009&lt;/B&gt; &lt;/DIV&gt; &lt;/TD&gt; &lt;TD&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;5,272&lt;/B&gt; &lt;/TD&gt;
&lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;$&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;62&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt; &lt;B&gt;1.7&amp;#160;years&lt;/B&gt;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;/TR&gt; &lt;TR style="font-size: 1pt"&gt; &lt;TD nowrap align="left" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD nowrap align="right" valign="bottom" style="border-top: 2px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top: 2px
solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap
align="right" valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;/TR&gt; &lt;TR valign="bottom"&gt;
&lt;TD align="left" valign="bottom"&gt; &lt;DIV style="text-indent: -10pt;
margin-left: 10pt"&gt; Available for grant at June&amp;#160;30, 2009 &lt;/DIV&gt;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
2,251 &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;/TR&gt; &lt;TR style="font-size: 1pt"&gt; &lt;TD nowrap align="left"
valign="bottom" style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt;
&lt;TD style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD
nowrap align="right" valign="bottom" style="border-top: 2px solid #000000"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom" style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"
style="border-top: 2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD style="border-top:
2px solid #000000"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;TD&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right"
valign="bottom"&gt; &amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="right" valign="bottom"&gt;
&amp;nbsp; &lt;/TD&gt; &lt;TD nowrap align="left" valign="bottom"&gt; &amp;nbsp;
&lt;/TD&gt; &lt;/TR&gt; &lt;/TABLE&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; &lt;/DIV&gt; &lt;/DIV&gt;
</noc:StockCompensationPlansTextBlock> <us-gaap:IncomeTaxDisclosureTextBlock
contextRef="FY2009Q2YTD">&lt;!-- PAGEBREAK --&gt; &lt;DIV style="width: 87%;
margin-left: 6%"&gt;&lt;!-- BEGIN PAGE WIDTH --&gt; &lt;DIV style="margin-top:
9pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; &lt;/DIV&gt; &lt;DIV
style="margin-top: 12pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;TABLE
width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size:
10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"&gt;
&lt;TR&gt; &lt;TD width="3%"&gt;&lt;/TD&gt; &lt;TD width="97%"&gt;&lt;/TD&gt;
&lt;/TR&gt; &lt;TR valign="top"&gt; &lt;TD&gt; &lt;B&gt;&lt;FONT style="font-family:
'Times New Roman', Times"&gt;13.&amp;#160;&lt;/FONT&gt;&lt;/B&gt; &lt;/TD&gt;
&lt;TD&gt; &lt;A name='120'&gt;&lt;/A&gt;&lt;B&gt;&lt;FONT style="font-family:
'Times New Roman', Times"&gt;INCOME TAXES&lt;/FONT&gt;&lt;/B&gt; &lt;/TD&gt;
&lt;/TR&gt; &lt;/TABLE&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; The company&amp;#146;s effective tax rates on income
from continuing operations were 33.9&amp;#160;percent and 34.0&amp;#160;percent
for the three and six months ended June&amp;#160;30, 2009, and 34.6&amp;#160;percent
and 35.0&amp;#160;percent for the same periods in 2008. The company accounts
for uncertain tax positions in accordance with the recognition standards established
by Financial Accounting Standards Board Interpretation No. (FIN) 48&amp;#160;&amp;#150;
&lt;I&gt;Accounting for Uncertainty in Income Taxes&amp;#160;&amp;#150; an
interpretation of FASB Statement 109&lt;/I&gt;. In this regard, an uncertain
tax position represents the company&amp;#146;s expected treatment of a tax
position taken in a filed tax return, or planned to be taken in a future tax
return, that has not been reflected in measuring income tax expense for financial
reporting purposes. &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size:
1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left: 0%;
margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New
Roman', Times; color: #000000; background: #FFFFFF"&gt; The company recognizes
accrued interest and penalties related to uncertain tax positions in federal
and foreign income tax expense. The company files income tax returns in the
U.S.&amp;#160;federal jurisdiction, and various state and foreign jurisdictions.
The IRS is currently examining the company&amp;#146;s U.S.&amp;#160;income
tax returns for &lt;FONT style="white-space: nowrap"&gt;2001-2006.&lt;/FONT&gt;
In addition, open tax years related to state and foreign jurisdictions remain
subject to examination, but are not material. &lt;/DIV&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; In 2008, the company
reached a tentative partial settlement agreement with Internal Revenue Service
(IRS) Appeals on substantially all of the remaining issues from the IRS&amp;#146;
examination of the company&amp;#146;s tax returns for the years ended &lt;FONT
style="white-space: nowrap"&gt;2001-2003.&lt;/FONT&gt; This agreement is subject
to review by the Congressional Joint Committee on Taxation (Joint Committee).
Although the final outcome is not determinable until the Joint Committee completes
its review during 2009, it is reasonably possible that the company may recognize
net tax benefits of approximately $50&amp;#160;million during 2009. &lt;/DIV&gt;
&lt;P align="center" style="font-size: 10pt; font-family: 'Times New Roman',
Times; color: #000000; background: #FFFFFF"&gt; &lt;BR&gt; &amp;nbsp; &lt;/DIV&gt;&lt;!--
END PAGE WIDTH --&gt; </us-gaap:IncomeTaxDisclosureTextBlock> <us-gaap:ScheduleOfNewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock
contextRef="FY2009Q2" /> <us-gaap:SegmentReportingDisclosureTextBlock
contextRef="FY2008Q2" /> <us-gaap:CommitmentsAndContingenciesDisclosureTextBlock
contextRef="FY2009Q2YTD">&lt;!-- PAGEBREAK --&gt; &lt;DIV style="width: 87%;
margin-left: 6%"&gt;&lt;!-- BEGIN PAGE WIDTH --&gt; &lt;!-- XBRL --&gt; &lt;!--
XBRL,N --&gt; &lt;DIV style="margin-top: 9pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size:
10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"&gt;
&lt;TR&gt; &lt;TD width="3%"&gt;&lt;/TD&gt; &lt;TD width="97%"&gt;&lt;/TD&gt;
&lt;/TR&gt; &lt;TR valign="top"&gt; &lt;TD&gt; &lt;B&gt;&lt;FONT style="font-family:
'Times New Roman', Times"&gt;10.&amp;#160;&lt;/FONT&gt;&lt;/B&gt; &lt;/TD&gt;
&lt;TD&gt; &lt;A name='117'&gt;&lt;/A&gt;&lt;B&gt;&lt;FONT style="font-family:
'Times New Roman', Times"&gt;COMMITMENTS AND CONTINGENCIES&lt;/FONT&gt;&lt;/B&gt;
&lt;/TD&gt; &lt;/TR&gt; &lt;/TABLE&gt; &lt;DIV align="left" style="margin-left:
3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; &lt;/DIV&gt; &lt;!--
XBRL,BODY --&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; &lt;I&gt;Contract Performance Contingencies&lt;/I&gt;&amp;#160;&amp;#150;
Contract profit margins may include estimates of revenues not contractually
agreed to between the customer and the company for matters such as contract
changes, negotiated settlements, claims and requests for equitable adjustment
for previously unanticipated contract costs. These estimates are based upon
management&amp;#146;s best assessment of the underlying causal events and
circumstances, and are included in determining contract profit margins to
the extent of expected recovery based on contractual entitlements and the
probability of successful negotiation with the customer. As of June&amp;#160;30,
2009, the recognized amounts related to the aforementioned items are not material
individually or in the aggregate. &lt;/DIV&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; In conjunction
with its second quarter 2009 review of contract cost estimates to reflect
costs for improved design, engineering, production and quality processes and
the weld inspections undertaken as a result of leaks discovered in the USS
San&amp;#160;Antonio&amp;#146;s (LPD17) lube oil system, the company&amp;#146;s
Gulf Coast Shipbuilding operations began conducting an assessment of a quality
issue relating to certain pipe welds that could affect ships currently in
production and previously delivered. The company is currently working with
its customers to determine the nature, scope and potential impact of this
issue and to determine the extent of rework that will be required to satisfactorily
resolve this issue. Based on information available to date, including ongoing
technical analysis of the issue, the company does not believe that this matter
will have a material adverse effect upon its consolidated financial position,
results of operations or cash flows. &lt;/DIV&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; &lt;I&gt;Guarantees
of Subsidiary Performance Obligations&lt;/I&gt;&amp;#160;&amp;#150; From time
to time in the ordinary course of business, the company guarantees performance
obligations of its subsidiaries under certain contracts. In addition, the
company&amp;#146;s subsidiaries may enter into joint ventures, teaming and
other business arrangements (the &amp;#147;Business Arrangements&amp;#148;)
to support the company&amp;#146;s products and services in domestic and international
markets. The company generally aims to limit its exposure to its subsidiary&amp;#146;s
investment in the Business Arrangement, or to the extent of such subsidiary&amp;#146;s
obligations under the applicable contract. In some cases, however, the company
may be required to guarantee performance by the Business Arrangement and,
in such cases, the company generally obtains cross-indemnification from the
other members of the Business Arrangement. At June&amp;#160;30, 2009, the
company is not aware of any existing event of default that would require it
to satisfy any of these guarantees. &lt;/DIV&gt; &lt;DIV style="margin-top:
6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; &lt;I&gt;Environmental
Matters&lt;/I&gt;&amp;#160;&amp;#150; In accordance with company policy on
environmental remediation, the estimated cost to complete remediation has
been accrued where it is probable that the company will incur such costs in
the future to address environmental impacts at currently or formerly owned
or leased operating facilities, or at sites where it has been named a Potentially
Responsible Party (PRP) by the Environmental Protection Agency, or similarly
designated by other environmental agencies. These accruals do not include
any litigation costs related to environmental matters. To assess the potential
impact on the company&amp;#146;s consolidated financial statements, management
estimates the total reasonably possible remediation costs that could be incurred
by the company, taking into account currently available facts on each site
as well as the current state of technology and prior experience in remediating
contaminated sites. These estimates are reviewed periodically and adjusted
to reflect changes in facts and technical and legal circumstances. Management
estimates that as of June&amp;#160;30, 2009, the range of reasonably possible
future costs for environmental remediation sites is $187&amp;#160;million
to $267&amp;#160;million, of which $236&amp;#160;million is accrued in other
current liabilities. Factors that could result in changes to the company&amp;#146;s
estimates include: modification of planned remedial actions, increases or
decreases in the estimated time required to remediate, discovery of more extensive
contamination than anticipated, changes in laws and regulations affecting
remediation requirements, and improvements in remediation technology. Should
other PRPs not pay their allocable share of remediation costs, the company
may have to incur costs in addition to those already estimated and accrued.
Based upon the available information, the company believes that the outcome
of these matters would not have a material adverse effect on its consolidated
financial position, results of operations or cash flows. &lt;/DIV&gt; &lt;DIV
style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV
align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size:
10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"&gt;
&lt;I&gt;Hurricane Impacts&amp;#160;&amp;#150; &lt;/I&gt;During the third
quarter of 2008, the Gulf Coast shipyards were affected by Hurricane Gustav.
As a result of the storm, the Gulf Coast shipyards experienced a shut-down
for several days, and a resulting minor delay in ship construction throughout
the yards; however the storm caused no significant physical damage to the
yards. Shipbuilding&amp;#146;s sales and operating income in 2008 were reduced
by approximately $100&amp;#160;million and $13&amp;#160;million, respectively,
during the second half of 2008 due to lost production and additional costs
resulting from the shut-down. &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt;
font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left:
0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times
New Roman', Times; color: #000000; background: #FFFFFF"&gt; Also during the
third quarter of 2008, a subcontractor&amp;#146;s operations in Texas were
severely impacted by Hurricane Ike. The subcontractor produces compartments
for two of the LPD amphibious transport dock ships under construction at the
Gulf Coast shipyards. As a result of the delays and cost growth caused by
the subcontractor&amp;#146;s resulting production impacts, Shipbuilding&amp;#146;s
2008 operating income was reduced by approximately $23&amp;#160;million during
the second half of 2008. &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size:
1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left: 0%;
margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New
Roman', Times; color: #000000; background: #FFFFFF"&gt; In August 2005, the
company&amp;#146;s Gulf Coast operations were significantly impacted by Hurricane
Katrina and the company&amp;#146;s shipyards in Louisiana and Mississippi
sustained significant windstorm damage from the hurricane. As a result of
the storm, the company incurred costs to replace or repair destroyed or damaged
assets, suffered losses under its contracts, and incurred substantial costs
to clean up and recover its operations. As of the date of the storm, the company
had a comprehensive insurance program that provided coverage for, among other
things, property damage, business interruption impact on net profitability,
and costs associated with &lt;FONT style="white-space: nowrap"&gt;clean-up&lt;/FONT&gt;
and recovery. The company has recovered a portion of its Hurricane Katrina
claim and expects that its remaining claim will be resolved separately with
the two remaining insurers, including FM Global (See Note&amp;#160;9). &lt;/DIV&gt;
&lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; The company has full entitlement to any insurance
recoveries related to business interruption impacts resulting from these hurricanes.
However, because of uncertainties concerning the ultimate determination of
recoveries related to business interruption claims, in accordance with company
policy, no such amounts are recognized until they are resolved with the insurers.
Furthermore, due to the uncertainties with respect to the company&amp;#146;s
disagreement with FM Global in relation to the Hurricane Katrina claim, no
receivables have been recognized by the company in the accompanying condensed
consolidated financial statements for insurance recoveries from FM Global.
&lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; In accordance with U.S.&amp;#160;Government cost
accounting regulations affecting the majority of the company&amp;#146;s contracts,
the cost of insurance premiums for property damage and business interruption
coverage, other than &amp;#147;coverage of profit&amp;#148;, is an allowable
expense that may be charged to contracts. Because a substantial portion of
long-term contracts at the shipyards are flexibly-priced, the government customer
would benefit from a portion of insurance recoveries in excess of the net
book value of damaged assets and &lt;FONT style="white-space: nowrap"&gt;clean-up&lt;/FONT&gt;
and restoration costs paid by the company. When such insurance recoveries
occur, the company is obligated to return a portion of these amounts to the
government. &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; &lt;I&gt;Co-Operative Agreements&lt;/I&gt;&amp;#160;&amp;#150;
In 2003, Shipbuilding executed agreements with the states of Mississippi and
Louisiana whereby Shipbuilding leases facility improvements and equipment
from Mississippi and from a non-profit economic development corporation in
Louisiana in exchange for certain commitments by Shipbuilding to these states.
As of June&amp;#160;30, 2009, Shipbuilding has fully met its obligations under
the Mississippi agreement and has met all but one requirement under the Louisiana
agreement. Failure by Shipbuilding to meet the remaining Louisiana commitment
would result in reimbursement by Shipbuilding to Louisiana in accordance with
the agreement. As of June&amp;#160;30, 2009, Shipbuilding expects that the
remaining commitment under the Louisiana agreement will be met based on its
most recent business plan. &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size:
1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left: 0%;
margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New
Roman', Times; color: #000000; background: #FFFFFF"&gt; &lt;I&gt;Financial
Arrangements&lt;/I&gt;&amp;#160;&amp;#150; In the ordinary course of business,
the company uses standby letters of credit and guarantees issued by commercial
banks and surety bonds issued principally by insurance companies to guarantee
the performance on certain contracts and to support the company&amp;#146;s
self-insured workers&amp;#146; compensation plans. At June&amp;#160;30, 2009,
there were $519&amp;#160;million of unused stand-by letters of credit, $129&amp;#160;million
of bank guarantees, and $447&amp;#160;million of surety bonds outstanding.
&lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; The company has also guaranteed a $200&amp;#160;million
loan made to Shipbuilding in connection with the Gulf Opportunity Zone Industrial
Revenue Bonds issued in December 2006. Under the loan agreement, the company
guaranteed repayment of the principal and interest to the Trustee and the
underlying bondholders. &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size:
1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left: 0%;
margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New
Roman', Times; color: #000000; background: #FFFFFF"&gt; &lt;I&gt;Indemnifications&lt;/I&gt;&amp;#160;&amp;#150;
The company has retained certain warranty, environmental, income tax, and
other potential liabilities in connection with certain divestitures. The settlement
of these liabilities is not expected to have a material adverse effect on
the company&amp;#146;s consolidated financial position, results of operations,
or cash flows. &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size: 1pt"&gt;&amp;nbsp;&lt;/DIV&gt;
&lt;DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent:
0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000;
background: #FFFFFF"&gt; &lt;I&gt;U.S.&amp;#160;Government Claims&lt;/I&gt;&amp;#160;&amp;#150;
Annually, the company files cost submissions to the U.S.&amp;#160;Government
to support its claimed amounts of overhead, home office and other indirect
costs. On occasions, these cost submissions result in questioned costs, claims
and or penalty assertions by the U.S.&amp;#160;Government which give rise
to dispute resolution in various forms. The company believes it has adequately
provided for the ultimate outcome of any such matters based on, among other
considerations, its assessment of the relevant government regulations. The
company does not believe that the outcome of any such matters would have a
material adverse effect on its consolidated financial position, results of
operations, or cash flows. &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size:
1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left: 0%;
margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New
Roman', Times; color: #000000; background: #FFFFFF"&gt; &lt;I&gt;Operating
Leases&lt;/I&gt;&amp;#160;&amp;#150; Rental expense for operating leases,
excluding discontinued operations, for the three and six months ended June&amp;#160;30,
2009 was $144&amp;#160;million and $284&amp;#160;million, respectively, net
of immaterial amounts of sublease rental income, and $163&amp;#160;million
and $301&amp;#160;million, respectively, for the three and six months ended
June&amp;#160;30, 2008. &lt;/DIV&gt; &lt;DIV style="margin-top: 6pt; font-size:
1pt"&gt;&amp;nbsp;&lt;/DIV&gt; &lt;DIV align="left" style="margin-left: 0%;
margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New
Roman', Times; color: #000000; background: #FFFFFF"&gt; &lt;I&gt;Related Party
Transactions&lt;/I&gt;&amp;#160;&amp;#150; For all periods presented, the
company had no material related party transactions. &lt;/DIV&gt; &lt;/DIV&gt;&lt;!--
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