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<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION <br />Description of Business<br />Viacom Inc. including its consolidated subsidiaries (“Viacom” or the “Company”) is a leading global entertainment content company. Viacom engages audiences on television, motion picture, Internet, mobile and video game platforms through many of the world’s best known entertainment brands. Viacom operates through two reporting segments: Media Networks, which includes MTV Networks (“MTVN”) and BET Networks (“BETN”); and Filmed Entertainment. The Media Networks segment provides entertainment content for consumers in key demographics attractive to advertisers, distributors and retailers. The Filmed Entertainment segment produces, finances and distributes motion pictures under the Paramount Pictures, Paramount Vantage, Paramount Classics, MTV Films and Nickelodeon Movies brands. The Filmed Entertainment segment will also continue to release a number of pictures under the DreamWorks brand. It also acquires films for distribution and has various film distribution arrangements with third parties.<br />Basis of Presentation<br />Unaudited Interim Financial Statements<br />The accompanying unaudited consolidated quarterly financial statements have been prepared on a basis consistent with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and pursuant to the rules of the Securities and Exchange Commission (“SEC”). Prior to January 1, 2009 the foreign operations of the Filmed Entertainment segment were consolidated using the U.S. Dollar as the functional currency as the majority of the cash inflows and outflows of these subsidiaries were denominated in U.S. Dollars. Due to changes in the terms and conditions of significant operating arrangements at the Filmed Entertainment segment, effective January 1, 2009 the majority of the cash inflows and outflows of these foreign operations are now denominated in local currency. Accordingly, substantially all of the Company’s foreign operations are consolidated using the local currency as the functional currency. In the opinion of management, the accompanying unaudited financial statements reflect all adjustments, consisting of only normal and recurring adjustments, necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. The results of operations for the periods presented are not necessarily indicative of the results expected for the full year or any future period. These statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, as filed with the SEC on February 12, 2009 (the “2008 Annual Report”). The Company has performed an evaluation of subsequent events through July 28, 2009, which is the date the financial statements were issued.<br /> <br />Use of Estimates<br />Preparing financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities as of the dates presented and the reported amounts of revenues and expenses during the reporting periods presented. Significant estimates inherent in the preparation of the accompanying Consolidated Financial Statements include estimates of film ultimate revenues, product returns, amount of receivables expected to be collected, potential outcome of uncertain tax positions, determination of fair value of acquired assets and liabilities, determination of fair value of stock based compensation and determination of pension benefit assumptions. Estimates are based on past experience and other considerations reasonable under the circumstances. Actual results may differ from these estimates.<br /><br />Accounting Changes<br />Statement No. 160<br />In December 2007, the Financial Accounting Standards Board (the “FASB”) issued Statement No. 160, Noncontrolling Interests in Consolidated Financial Statements—an amendment of ARB No. 51 (“FAS 160”). FAS 160 establishes and provides accounting and reporting standards for the noncontrolling interest in a consolidated subsidiary and for the deconsolidation of a subsidiary. The Company has adopted FAS 160 beginning January 1, 2009 via retrospective application of the presentation and disclosure requirements.<br /><br />The Company adopted Emerging Issues Task Force Topic No. D-98, Classification and Measurement of Redeemable Securities (“EITF D-98”), in conjunction with its adoption of FAS 160. This standard is applicable for all noncontrolling interests where the Company is subject to a put option under which it may be required to repurchase an interest in a consolidated subsidiary from the noncontrolling interest holder. The Company is currently subject to a redeemable put option for an international subsidiary which expires in 2011 and for which redemption value equals fair value as of June 30, 2009. At June 30, 2009 and December 31, 2008, the redemption value of the put was approximately $167 million and $148 million, respectively, and is reflected in the Consolidated Balance Sheets as Redeemable noncontrolling interest. The retrospective impact of applying EITF D-98 was a reduction to opening Retained earnings of $188 million and a reduction to Accumulated other comprehensive (loss) income of $12 million as of December 31, 2007.<br /><br />Discontinued Operations<br />Discontinued operations, net of tax, in 2008 reflects settlement adjustments related to businesses previously sold.</p></font></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES<br /><br />Comprehensive Income<br />Comprehensive income includes net earnings, foreign currency translation adjustments, amortization of amounts related to unfunded benefit plans, unrealized gains or losses on certain derivative instruments and unrealized gains and losses on investments in equity securities which are publicly traded.</p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="13" style="border-top: 2px solid #000000;" align="left" width="401"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="401" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td width="150" align="center" height="13" colspan="5"><font size="2"><b>Quarter Ended</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td width="150" align="center" height="13" colspan="5"><font size="2"><b>Six Months Ended</b></font></td></tr><tr><td height="13" width="401" align="left"><font size="2"><b>Comprehensive Income</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td width="150" align="center" colspan="5" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>June 30,</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td width="150" align="center" colspan="5" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>June 30,</b></font></td></tr><tr><td height="12" style="border-bottom: 1px solid #000000;" align="left" width="401"><font size="2">(in millions)</font></td><td height="12" style="border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="12"><font size="2"><b>2009 </b></font></td><td height="12" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="12"><font size="2"><b>2008 </b></font></td><td height="12" style="border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="12"><font size="2"><b>2009 </b></font></td><td height="12" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="12"><font size="2"><b>2008 </b></font></td></tr><tr><td height="13" style="border-top: 1px solid #000000;" align="left" width="401"><font size="2">Net earnings (Viacom and noncontrolling interests)</font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"><b> 281 </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2">$</font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"> 411 </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"><b> 461 </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2">$</font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"> 685 </font></td></tr><tr><td height="13" width="401" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="60" align="left"><font size="2"><b> </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="60" align="left"><font size="2"><b> </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td></tr><tr><td height="13" width="401" align="left"><font size="2">Other comprehensive income:</font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="60" align="left"><font size="2"><b> </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="60" align="left"><font size="2"><b> </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td></tr><tr><td height="13" width="401" align="left"><font size="2">               Cash flow hedges</font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> (1)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font 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width="60" align="right"><font size="2"> 1 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> 1 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> 1 </font></td></tr><tr><td height="13" width="401" align="left"><font size="2">               Defined benefit pension plans</font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> 106 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> 1 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> 112 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> 1 </font></td></tr><tr><td height="13" width="401" align="left"><font size="2">               Translation of put option</font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"><b> (20)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"> 1 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"><b> (17)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"> - </font></td></tr><tr><td height="4" width="401" align="left"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="401" align="left"><font size="2">Comprehensive income</font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b>$</b></font></td><td height="13" width="60" align="right"><font size="2"><b> 442 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2">$</font></td><td height="13" width="60" align="right"><font size="2"> 403 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b>$</b></font></td><td height="13" width="60" align="right"><font size="2"><b> 557 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2">$</font></td><td height="13" width="60" align="right"><font size="2"> 707 </font></td></tr><tr><td height="13" width="401" align="left"><font size="2">Less: Comprehensive income attributable to noncontrolling interests</font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"><b> 4 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"> 4 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"><b> 7 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"> 8 </font></td></tr><tr><td height="13" width="401" align="left"><font size="2">Comprehensive income attributable to Viacom</font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b>$</b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="60"><font size="2"><b> 438 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2">$</font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="60"><font size="2"> 399 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b>$</b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="60"><font size="2"><b> 550 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2">$</font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="60"><font size="2"> 699 </font></td></tr><tr><td height="13" width="401" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" style="border-top: 3px double #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" style="border-top: 3px double #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;" align="left" width="60"><font size="2"><b> </b></font></td></tr><tr><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="401"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr></table></div><div><font size="2"><p>Earnings per Common Share <br />Basic earnings per common share excludes potentially dilutive securities and is computed by dividing Net Earnings Attributable to Viacom by the weighted average number of common shares outstanding during the period. The determination of diluted earnings per common share includes the potential dilutive effect of stock options, restricted share units (“RSUs”) and performance share units (“PSUs”) based upon the application of the treasury stock method. Anti-dilutive common shares were excluded from the calculation of diluted earnings per common share.<br />The following table sets forth the computation of the common shares outstanding utilized in determining basic and diluted earnings per common share and anti-dilutive shares:<br /></p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="13" style="border-top: 2px solid #000000;" align="left" width="431"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="431" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td width="130" align="center" height="13" colspan="3"><font size="2"><b>Quarter Ended</b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td width="130" align="center" height="13" colspan="3"><font size="2"><b>Six Months Ended</b></font></td></tr><tr><td height="13" width="431" align="left"><font size="2"><b>Common Shares Outstanding and Anti-dilutive Common Shares</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td width="130" align="center" colspan="3" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>June 30,</b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td width="130" align="center" colspan="3" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>June 30,</b></font></td></tr><tr><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="431"><font size="2">(in millions)</font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="60"><font size="2"><b>2009 </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="60"><font size="2"><b>2008 </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="60"><font size="2"><b>2009 </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="60"><font size="2"><b>2008 </b></font></td></tr><tr><td height="13" style="border-top: 1px solid #000000;" align="left" width="431"><font size="2">Weighted average common shares outstanding, basic</font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"><b> 607.0 </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"> 629.2 </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"><b> 606.9 </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"> 634.4 </font></td></tr><tr><td height="13" width="431" align="left"><font size="2">                 Dilutive effect of stock options</font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"><b> - </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> 0.2 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"><b> - </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> 0.4 </font></td></tr><tr><td height="13" width="431" align="left"><font size="2">                 Dilutive effect of RSUs and PSUs</font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"><b> 1.1 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"> 0.7 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"><b> 0.7 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"> 0.7 </font></td></tr><tr><td height="4" width="431" align="left"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="431" align="left"><font size="2">Weighted average common shares outstanding, diluted</font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"><b> 608.1 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"> 630.1 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"><b> 607.6 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"> 635.5 </font></td></tr><tr><td height="13" width="431" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="431" align="left"><font size="2">Anti-dilutive common shares </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"><b> 44.1 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> 46.8 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"><b> 44.5 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> 42.8 </font></td></tr><tr><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="431"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr></table></div><div><font size="2"><p>Reclassification <br />Certain amounts have been reclassified to conform to the 2009 presentation.<br /></p></font></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>NOTE 3. RECENT ACCOUNTING STANDARDS<br /><br />FSP 157-4<br />In April 2009, the FASB issued Staff Position No. 157-4, 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 (“FSP 157-4”), which is effective for interim and annual periods ending after June 15, 2009. FSP 157-4 provides additional guidance for determining fair value and requires new disclosures regarding the categories of fair value instruments, as well as the inputs and valuation techniques utilized to determine fair value and any changes to the inputs and valuation techniques during the period. The staff position did not significantly impact the Company’s financial statements.<br /><br />FSP 107-1 and APB 28-1<br />In April 2009, the FASB issued Staff Position No.107-1 and APB 28-1, Interim Disclosures About Fair Value of Financial Instruments, effective for interim and annual periods ending after June 15, 2009. The staff position requires fair value disclosures of financial instruments on a quarterly basis, as well as new disclosures regarding the methodology and significant assumptions underlying the fair value measures and any changes to the methodology and assumptions during the reporting period. The Company has applied the disclosure provisions as appropriate.<br /><br />Statement No. 166<br />In June 2009, the FASB issued Statement No. 166, Accounting for Transfers of Financial Assets – an amendment of FASB No. 140 (“FAS 140”), Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities (“FAS 166”). FAS 166 amends the criteria for a transfer of a financial asset to be accounted for as a sale, redefines a participating interest for transfers of portions of financial assets, eliminates the qualifying special-purpose entity concept and provides for new disclosures. FAS 166 is effective for the Company beginning in 2010. Should the Company’s accounts receivable securitization programs not qualify for sale treatment under the revised rules, future securitization transactions entered into on or after January 1, 2010 would be classified as debt and the related cash flows would be reflected as a financing activity. The Company is currently assessing the impact of the standard on its securitization programs.<br /><br />Statement No. 167<br />In June 2009, the FASB issued Statement No. 167, Amendments to FASB Interpretation No. 46(R) (“FAS 167”). FAS 167 amends the consolidation guidance for variable interest entities (“VIE”) by requiring an on-going qualitative assessment of which entity has the power to direct matters that most significantly impact the activities of a VIE and has the obligation to absorb losses or benefits that could be potentially significant to the VIE. FAS 167 is effective for the Company beginning in 2010. The Company is currently assessing the impact of the standard on its financial statements.</p></font></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>NOTE 4. INVENTORY <br /></p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="13" style="border-top: 2px solid #000000;" align="left" width="445"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="68"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="89"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="89"><font size="2"> </font></td></tr><tr><td height="13" width="445" align="left"><font size="2"><b>Inventory</b></font></td><td height="13" width="68" align="left"><font size="2"> </font></td><td width="99" align="center" height="13" colspan="2"><font size="2"><b>June 30,</b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="89" align="center"><font size="2"><b>December 31,</b></font></td></tr><tr><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="445"><font size="2">(in millions)</font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="68"><font size="2"> </font></td><td width="99" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2009 </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="89"><font size="2"><b>2008 </b></font></td></tr><tr><td height="13" style="border-top: 1px solid #000000;" align="left" width="445"><font size="2">Film Inventory:</font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="68"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="89"><font size="2"><b> </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="89"><font size="2"> </font></td></tr><tr><td height="13" width="445" align="left"><font size="2">            Released, net of amortization</font></td><td height="13" width="68" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b>$</b></font></td><td height="13" width="89" align="right"><font size="2"><b> 981 </b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="10" align="center"><font size="2"><b>$</b></font></td><td height="13" width="89" align="right"><font size="2"> 840 </font></td></tr><tr><td height="13" width="445" align="left"><font size="2">            Completed, not yet released</font></td><td height="13" width="68" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="89" align="right"><font size="2"><b> 118 </b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="89" align="right"><font size="2"> 263 </font></td></tr><tr><td height="13" width="445" align="left"><font size="2">            In process and other</font></td><td height="13" width="68" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="89"><font size="2"><b> 734 </b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="89"><font size="2"> 826 </font></td></tr><tr><td height="4" width="445" align="left"><font size="2"> </font></td><td height="4" width="68" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="89"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="89"><font size="2"> </font></td></tr><tr><td height="13" width="445" align="left"><font size="2">Total film inventory, net</font></td><td height="13" width="68" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="89" align="right"><font size="2"><b> 1,833 </b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="89" align="right"><font size="2"> 1,929 </font></td></tr><tr><td height="13" width="445" align="left"><font size="2">Programming Inventory:</font></td><td height="13" width="68" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="89" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="89" align="left"><font size="2"> </font></td></tr><tr><td height="13" width="445" align="left"><font size="2">            Original programming, net of amortization</font></td><td height="13" width="68" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="89" align="right"><font size="2"><b> 1,342 </b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="89" align="right"><font size="2"> 1,253 </font></td></tr><tr><td height="13" width="445" align="left"><font size="2">            Acquired program rights, net of amortization</font></td><td height="13" width="68" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="89" align="right"><font size="2"><b> 1,568 </b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="89" align="right"><font size="2"> 1,474 </font></td></tr><tr><td height="13" width="445" align="left"><font size="2">Merchandise and other inventory, net of allowance of $174 and $119</font></td><td height="13" width="68" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="89"><font size="2"><b> 273 </b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="89"><font size="2"> 358 </font></td></tr><tr><td height="4" width="445" align="left"><font size="2"> </font></td><td height="4" width="68" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="89"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="89"><font size="2"> </font></td></tr><tr><td height="13" width="445" align="left"><font size="2">Total inventory, net</font></td><td height="13" width="68" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="89" align="right"><font size="2"><b> 5,016 </b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="89" align="right"><font size="2"> 5,014 </font></td></tr><tr><td height="13" width="445" align="left"><font size="2">Less current portion of inventory, net</font></td><td height="13" width="68" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="89"><font size="2"><b> (869)</b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="89"><font size="2"> (881)</font></td></tr><tr><td height="4" width="445" align="left"><font size="2"> </font></td><td height="4" width="68" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="89"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="89"><font size="2"> </font></td></tr><tr><td height="13" width="445" align="left"><font size="2">Total non-current inventory, net</font></td><td height="13" width="68" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="89"><font size="2"><b> 4,147 </b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="89"><font size="2"> 4,133 </font></td></tr><tr><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="445"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="68"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="89"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="89"><font size="2"> </font></td></tr></table></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p><br />NOTE 5. DEBT<br />Total debt of the Company consists of the following:<br /></p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="13" style="border-top: 2px solid #000000;" align="left" width="470"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="40"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="90"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="90"><font size="2"> </font></td></tr><tr><td height="13" width="470" align="left"><font size="2"><b>Debt</b></font></td><td height="13" width="40" align="left"><font size="2"> </font></td><td width="100" align="center" height="13" colspan="2"><font size="2"><b>June 30,</b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td width="100" align="center" height="13" colspan="2"><font size="2"><b>December 31,</b></font></td></tr><tr><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="470"><font size="2">(in millions)</font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="40"><font size="2"> </font></td><td width="100" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2009 </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td width="100" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2008 </b></font></td></tr><tr><td height="13" style="border-top: 1px solid #000000;" align="left" width="470"><font size="2">Senior Notes and Debentures:</font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="40"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="90"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="90"><font size="2"> </font></td></tr><tr><td height="13" width="470" align="left"><font size="2">                Senior notes due 2009</font></td><td height="13" width="40" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b>$</b></font></td><td height="13" width="90" align="right"><font size="2"><b> - </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2">$</font></td><td height="13" width="90" align="right"><font size="2"> 750 </font></td></tr><tr><td height="13" width="470" align="left"><font size="2">                Senior notes due 2011, 5.750%</font></td><td height="13" width="40" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="90" align="right"><font size="2"><b> 1,497 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="90" align="right"><font size="2"> 1,496 </font></td></tr><tr><td height="13" width="470" align="left"><font size="2">                Senior notes due 2016, 6.250%</font></td><td height="13" width="40" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="90" align="right"><font size="2"><b> 1,496 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="90" align="right"><font size="2"> 1,495 </font></td></tr><tr><td height="13" width="470" align="left"><font size="2">                Senior notes due 2017, 6.125%</font></td><td height="13" width="40" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="90" align="right"><font size="2"><b> 497 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="90" align="right"><font size="2"> 497 </font></td></tr><tr><td height="13" width="470" align="left"><font size="2">                Senior debentures due 2036, 6.875%</font></td><td height="13" width="40" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="90" align="right"><font size="2"><b> 1,734 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="90" align="right"><font size="2"> 1,734 </font></td></tr><tr><td height="13" width="470" align="left"><font size="2">                Senior debentures due 2037, 6.750%</font></td><td height="13" width="40" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="90" align="right"><font size="2"><b> 248 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="90" align="right"><font size="2"> 248 </font></td></tr><tr><td height="13" width="470" align="left"><font size="2">                Senior notes due 2055, 6.850%</font></td><td height="13" width="40" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="90" align="right"><font size="2"><b> 750 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="90" align="right"><font size="2"> 750 </font></td></tr><tr><td height="13" width="470" align="left"><font size="2">Note payable</font></td><td height="13" width="40" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="90" align="right"><font size="2"><b> 112 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="90" align="right"><font size="2"> 136 </font></td></tr><tr><td height="13" width="470" align="left"><font size="2">Commercial paper</font></td><td height="13" width="40" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="90" align="right"><font size="2"><b> 67 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="90" align="right"><font size="2"> - </font></td></tr><tr><td height="13" width="470" align="left"><font size="2">Credit facility</font></td><td height="13" width="40" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="90" align="right"><font size="2"><b> 750 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="90" align="right"><font size="2"> 650 </font></td></tr><tr><td height="13" width="470" align="left"><font size="2">Capital lease and other obligations</font></td><td height="13" width="40" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="90"><font size="2"><b> 223 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="90"><font size="2"> 246 </font></td></tr><tr><td height="4" width="470" align="left"><font size="2"> </font></td><td height="4" width="40" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="90"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="90"><font size="2"> </font></td></tr><tr><td height="13" width="470" align="left"><font size="2">Total long-term debt</font></td><td height="13" width="40" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="90" align="right"><font size="2"><b> 7,374 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="90" align="right"><font size="2"> 8,002 </font></td></tr><tr><td height="12" width="470" align="left"><font size="2">Less current portion of long-term debt</font></td><td height="12" width="40" align="left"><font size="2"> </font></td><td height="12" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="12" style="border-bottom: 1px solid #000000;" align="right" width="90"><font size="2"><b> (99)</b></font></td><td height="12" width="10" align="left"><font size="2"> </font></td><td height="12" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="12" style="border-bottom: 1px solid #000000;" align="right" width="90"><font size="2"> (105)</font></td></tr><tr><td height="4" width="470" align="left"><font size="2"> </font></td><td height="4" width="40" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="90"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="90"><font size="2"> </font></td></tr><tr><td height="17" width="470" align="left"><font size="2">Total non-current portion of long-term debt</font></td><td height="17" width="40" align="left"><font size="2"> </font></td><td height="17" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="17" style="border-bottom: 3px double #000000;" align="right" width="90"><font size="2"><b> 7,275 </b></font></td><td height="17" width="10" align="left"><font size="2"> </font></td><td height="17" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2">$</font></td><td height="17" style="border-bottom: 3px double #000000;" align="right" width="90"><font size="2"> 7,897 </font></td></tr><tr><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="470"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="40"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="90"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="90"><font size="2"> </font></td></tr></table></div><div><font size="2"><p>During the six months ended June 30, 2009, the Company repurchased in the open market or paid off at maturity its $750 million of Senior Notes due June 16, 2009. <br /><br />At June 30, 2009, the total unamortized discount related to the fixed rate Senior Notes and Debentures and the note payable was $28 million and $18 million, respectively. Based on the level of interest rates prevailing at June 30, 2009, the carrying value of the Company’s Senior Notes and Debentures exceeded its fair market value by $250 million. The fair market value of the Company’s publicly traded debt was determined utilizing quoted market prices.<br /><br />At June 30, 2009, the outstanding commercial paper had a weighted average interest rate of 1.05% and an average remaining life of less than 30 days. The commercial paper is classified as long-term debt as the Company has the intent and ability, through utilization of its $3.25 billion revolving credit facility due December 2010, to refinance this debt. The Company’s credit facility contains typical covenants for an investment grade company. The one principal financial covenant requires the Company’s interest coverage for the most recent four consecutive fiscal quarters to be at least 3.0x, which it met at June 30, 2009. As of June 30, 2009, it was 6.7x.<br /><br /></p></font></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>NOTE 6. FINANCIAL INSTRUMENTS<br /><br />The Company’s financial assets and liabilities reflected in the Consolidated Financial Statements at fair value include marketable securities and other financial instruments. Fair value for marketable securities is determined utilizing a market approach based on quoted market prices at period end in active markets. Fair value for other financial instruments is determined utilizing an income approach. The following table summarizes the valuation of the Company’s financial assets and liabilities at June 30, 2009:<br /></p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="13" style="border-top: 2px solid #000000;" align="left" width="231"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="20"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="100"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="center" width="100"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="center" width="100"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="12"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="12"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="center" width="100"><font size="2"> </font></td></tr><tr><td height="13" width="231" align="left"><font size="2"> </font></td><td height="13" width="20" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="100" align="left"><font size="2"><b> </b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td width="110" align="center" height="13" colspan="2"><font size="2"><b>Quoted Prices In</b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td width="110" align="center" height="13" colspan="2"><font size="2"><b>Significant Other</b></font></td><td height="13" width="12" align="left"><font size="2"><b> </b></font></td><td width="112" align="center" height="13" colspan="2"><font size="2"><b>Significant </b></font></td></tr><tr><td height="13" width="231" align="left"><font size="2"> </font></td><td height="13" width="20" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="100" align="left"><font size="2"><b> </b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td width="110" align="center" height="13" colspan="2"><font size="2"><b>Active Markets for</b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td width="110" align="center" height="13" colspan="2"><font size="2"><b>Observable</b></font></td><td height="13" width="12" align="left"><font size="2"><b> </b></font></td><td width="112" align="center" height="13" colspan="2"><font size="2"><b>Unobservable </b></font></td></tr><tr><td height="13" width="231" align="left"><font size="2"><b>Financial Asset (Liability)</b></font></td><td height="13" width="20" align="left"><font size="2"> </font></td><td width="110" align="center" height="13" colspan="2"><font size="2"><b>June 30,</b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td width="110" align="center" height="13" colspan="2"><font size="2"><b>Identical Assets </b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td width="110" align="center" height="13" colspan="2"><font size="2"><b>Inputs</b></font></td><td height="13" width="12" align="left"><font size="2"><b> </b></font></td><td width="112" align="center" height="13" colspan="2"><font size="2"><b>Inputs</b></font></td></tr><tr><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="231"><font size="2">(in millions)</font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="20"><font size="2"> </font></td><td width="110" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2009 </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td width="110" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>Level 1</b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td width="110" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>Level 2</b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="12"><font size="2"><b> </b></font></td><td width="112" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>Level 3</b></font></td></tr><tr><td height="13" style="border-top: 1px solid #000000;" align="left" width="231"><font size="2">Marketable securities</font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="20"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="100"><font size="2"><b> 61 </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="100"><font size="2"><b> 61 </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="100"><font size="2"><b>-</b></font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="12"><font size="2"><b> </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="12"><font size="2"><b>$</b></font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="100"><font size="2"><b>-</b></font></td></tr><tr><td height="13" width="231" align="left"><font size="2">Other financial instruments</font></td><td height="13" width="20" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="100"><font size="2"><b> (56)</b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="100"><font size="2"><b> - </b></font></td><td height="13" width="10" align="right"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="100"><font size="2"><b> (2)</b></font></td><td height="13" width="12" align="right"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="12"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="100"><font size="2"><b> (54)</b></font></td></tr><tr><td height="4" width="231" align="left"><font size="2"> </font></td><td height="4" width="20" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="100"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="right" width="100"><font size="2"><b> </b></font></td><td height="4" width="10" align="right"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="right" width="100"><font size="2"><b> </b></font></td><td height="4" width="12" align="right"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="12"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="right" width="100"><font size="2"><b> </b></font></td></tr><tr><td height="13" width="231" align="left"><font size="2">Total</font></td><td height="13" width="20" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="100"><font size="2"><b> 5 </b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="100"><font size="2"><b> 61 </b></font></td><td height="13" width="10" align="right"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="100"><font size="2"><b> (2)</b></font></td><td height="13" width="12" align="right"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="12"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="100"><font size="2"><b> (54)</b></font></td></tr><tr><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="231"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="20"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="100"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="right" width="100"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="right" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="right" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="right" width="100"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="right" width="12"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="right" width="12"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="right" width="100"><font size="2"> </font></td></tr></table></div><div><font size="2"><p>The $54 million of other financial instruments measured using significant unobservable inputs relates to the Company’s guarantee of certain debt of DW Funding LLC (“DW Funding”) which is more fully described in Note 12. The change in fair value during the reporting period is reflected as a component of Other items, net within the Company’s Consolidated Statements of Earnings. For the quarter and six months ended June 30, 2009 and 2008, the change in fair value had a de minimis impact on the Company’s Consolidated Statements of Earnings. The fair value of the guarantee is determined utilizing a discounted cash flow model. The significant assumptions utilized are the risk-adjusted projected net cash flows of the library, the estimated debt obligations of DW Funding at the projected settlement date and a discount rate of approximately 8%.<br /><br /><br /></p></font></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>NOTE 7. RECEIVABLES <br />Receivables, net (including retained interests in securitizations) were as follows:<br /></p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="13" style="border-top: 2px solid #000000;" align="left" width="446"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="65"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="90"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="90"><font size="2"> </font></td></tr><tr><td height="13" width="446" align="left"><font size="2"><b>Receivables, net (including retained interests in securitizations)</b></font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td width="100" align="center" height="13" colspan="2"><font size="2"><b>June 30,</b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td width="100" align="center" height="13" colspan="2"><font size="2"><b>December 31,</b></font></td></tr><tr><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="446"><font size="2">(in millions)</font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="65"><font size="2"> </font></td><td width="100" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2009 </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td width="100" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2008 </b></font></td></tr><tr><td height="13" style="border-top: 1px solid #000000;" align="left" width="446"><font size="2">Securitized pools of trade receivables</font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="65"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="90"><font size="2"><b> 1,546 </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2">$</font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="90"><font size="2"> 2,348 </font></td></tr><tr><td height="13" width="446" align="left"><font size="2">Interests in securitizations sold to third parties</font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="90"><font size="2"><b> (700)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="90"><font size="2"> (950)</font></td></tr><tr><td height="4" width="446" align="left"><font size="2"> </font></td><td height="4" width="65" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="90"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="90"><font size="2"> </font></td></tr><tr><td height="13" width="446" align="left"><font size="2">Retained interests in securitizations</font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="90" align="right"><font size="2"><b> 846 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="90" align="right"><font size="2"> 1,398 </font></td></tr><tr><td height="13" width="446" align="left"><font size="2">Receivables not subject to securitizations</font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="90"><font size="2"><b> 1,074 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="90"><font size="2"> 972 </font></td></tr><tr><td height="4" width="446" align="left"><font size="2"> </font></td><td height="4" width="65" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="90"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="90"><font size="2"> </font></td></tr><tr><td height="13" width="446" align="left"><font size="2">Receivables, including retained interests in securitizations</font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="90" align="right"><font size="2"><b> 1,920 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="90" align="right"><font size="2"> 2,370 </font></td></tr><tr><td height="13" width="446" align="left"><font size="2">Less allowance for doubtful accounts</font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="90"><font size="2"><b> (111)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="90"><font size="2"> (99)</font></td></tr><tr><td height="4" width="446" align="left"><font size="2"> </font></td><td height="4" width="65" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="90"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="90"><font size="2"> </font></td></tr><tr><td height="13" width="446" align="left"><font size="2">Total receivables, net</font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="90"><font size="2"><b> 1,809 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2">$</font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="90"><font size="2"> 2,271 </font></td></tr><tr><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="446"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="65"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="90"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="90"><font size="2"> </font></td></tr></table></div><div><font size="2"><p>The reduction in the level of securitized receivables sold to third parties during the six months ended June 30, 2009 was due to a scheduled $175 million reduction in the level of participation by a sponsor in one of the Company's securitization programs in the second quarter of 2009, which the Company elected not to replace, and seasonal fluctuations in qualifying receivables. There are no other scheduled reductions in the remaining terms of the securitization facilities, which are subject to renewal on an annual basis. The financial cost of funding and the cash flow impact of the securitization programs to the Company’s operating cash flows are included in Note 13.<br /></p></font></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>NOTE 8. STOCK BASED COMPENSATION <br />During the quarter ended June 30, 2009, the Company granted 2.9 million stock options and 2.6 million RSUs in connection with its annual equity awards under the Company’s Long-Term Management Incentive Plan. For the six months ended June 30, 2009, the Company granted 3.0 million stock options, 2.7 million RSUs and 0.8 million PSUs.<br />Presented below is a summary of the compensation cost recognized in the accompanying Consolidated Statements of Earnings:<br /></p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="13" style="border-top: 2px solid #000000;" align="left" width="341"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="70"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="341" align="left"><font size="2"> </font></td><td height="13" width="70" align="left"><font size="2"> </font></td><td width="150" align="center" height="13" colspan="5"><font size="2"><b>Quarter Ended</b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td width="150" align="center" height="13" colspan="5"><font size="2"><b>Six Months Ended</b></font></td></tr><tr><td height="13" width="341" align="left"><font size="2"><b>Stock Based Compensation Expense</b></font></td><td height="13" width="70" align="left"><font size="2"> </font></td><td width="150" align="center" colspan="5" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>June 30,</b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td width="150" align="center" colspan="5" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>June 30,</b></font></td></tr><tr><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="341"><font size="2">(in millions)</font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="70"><font size="2"> </font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2009 </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2008 </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2009 </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2008 </b></font></td></tr><tr><td height="13" style="border-top: 1px solid #000000;" align="left" width="341"><font size="2">Recognized in earnings:</font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="70"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="341" align="left"><font size="2">     Stock options</font></td><td height="13" width="70" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b>$</b></font></td><td height="13" width="60" align="right"><font size="2"><b> 6 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2">$</font></td><td height="13" width="60" align="right"><font size="2"> 10 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b>$</b></font></td><td height="13" width="60" align="right"><font size="2"><b> 12 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2">$</font></td><td height="13" width="60" align="right"><font size="2"> 18 </font></td></tr><tr><td height="13" width="341" align="left"><font size="2">     Restricted share units</font></td><td height="13" width="70" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> 4 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> 7 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> 11 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> 14 </font></td></tr><tr><td height="13" width="341" align="left"><font size="2">     Performance share units</font></td><td height="13" width="70" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"><b> 9 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"> 5 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"><b> 18 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"> 10 </font></td></tr><tr><td height="4" width="341" align="left"><font size="2"> </font></td><td height="4" width="70" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="341" align="left"><font size="2">           Total compensation cost in earnings</font></td><td height="13" width="70" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"><b> 19 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2">$</font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"> 22 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"><b> 41 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2">$</font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"> 42 </font></td></tr><tr><td height="4" width="341" align="left"><font size="2"> </font></td><td height="4" width="70" align="left"><font size="2"> </font></td><td height="4" style="border-top: 3px double #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 3px double #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 3px double #000000;" align="center" width="10"><font size="2"> </font></td><td height="4" style="border-top: 3px double #000000;" align="left" width="60"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 3px double #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 3px double #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 3px double #000000;" align="center" width="10"><font size="2"> </font></td><td height="4" style="border-top: 3px double #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="4" width="341" align="left"><font size="2"> </font></td><td height="4" width="70" align="left"><font size="2"> </font></td><td height="4" width="10" align="center"><font size="2"><b> </b></font></td><td height="4" width="60" align="left"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" width="10" align="center"><font size="2"> </font></td><td height="4" width="60" align="left"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" width="10" align="center"><font size="2"><b> </b></font></td><td height="4" width="60" align="left"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" width="10" align="center"><font size="2"> </font></td><td height="4" width="60" align="left"><font size="2"> </font></td></tr><tr><td height="13" width="341" align="left"><font size="2">Tax benefit recognized</font></td><td height="13" width="70" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b>$</b></font></td><td height="13" width="60" align="right"><font size="2"><b> 7 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2">$</font></td><td height="13" width="60" align="right"><font size="2"> 8 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b>$</b></font></td><td height="13" width="60" align="right"><font size="2"><b> 15 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2">$</font></td><td height="13" width="60" align="right"><font size="2"> 15 </font></td></tr><tr><td height="4" width="341" align="left"><font size="2"> </font></td><td height="4" width="70" align="left"><font size="2"> </font></td><td height="4" width="10" align="center"><font size="2"><b> </b></font></td><td height="4" width="60" align="left"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" width="10" align="center"><font size="2"> </font></td><td height="4" width="60" align="left"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" width="10" align="center"><font size="2"><b> </b></font></td><td height="4" width="60" align="left"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" width="10" align="center"><font size="2"> </font></td><td height="4" width="60" align="left"><font size="2"> </font></td></tr><tr><td height="13" width="341" align="left"><font size="2">Capitalized stock based compensation expense</font></td><td height="13" width="70" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b>$</b></font></td><td height="13" width="60" align="right"><font size="2"><b> 3 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2">$</font></td><td height="13" width="60" align="right"><font size="2"> 3 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b>$</b></font></td><td height="13" width="60" align="right"><font size="2"><b> 6 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2">$</font></td><td height="13" width="60" align="right"><font size="2"> 6 </font></td></tr><tr><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="341"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="70"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr></table></div><div><font size="2"><p>Total unrecognized compensation cost related to unvested stock option awards and PSUs at June 30, 2009 is approximately $102 million and $52 million, respectively, and is expected to be recognized on a straight-line basis over a weighted-average period of 2 years for each award. Total unrecognized compensation cost related to RSUs at June 30, 2009 is approximately $112 million and is expected to be recognized over a weighted-average period of 2 years. <br /></p></font></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>NOTE 9. PENSION <br />The Company has both funded and unfunded noncontributory defined benefit pension plans covering the majority of domestic employees and retirees, and to a lesser extent international employees and retirees. Net periodic benefit costs and contributions for the Company under its defined benefit pension plans consist of the following:<br /></p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="13" style="border-top: 2px solid #000000;" align="left" width="341"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="70"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="341" align="left"><font size="2"> </font></td><td height="13" width="70" align="left"><font size="2"> </font></td><td width="150" align="center" height="13" colspan="5"><font size="2"><b>Quarter Ended</b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td width="150" align="center" height="13" colspan="5"><font size="2"><b>Six Months Ended</b></font></td></tr><tr><td height="13" width="341" align="left"><font size="2"><b>Net Periodic Benefit Costs & Contributions</b></font></td><td height="13" width="70" align="left"><font size="2"> </font></td><td width="150" align="center" colspan="5" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>June 30,</b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td width="150" align="center" colspan="5" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>June 30,</b></font></td></tr><tr><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="341"><font size="2">(in millions)</font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="70"><font size="2"> </font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2009 </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2008 </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2009 </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2008 </b></font></td></tr><tr><td height="13" style="border-top: 1px solid #000000;" align="left" width="341"><font size="2">Service cost</font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="70"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"><b> 7 </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2">$</font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"> 9 </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"><b> 17 </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2">$</font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"> 18 </font></td></tr><tr><td height="13" width="341" align="left"><font size="2">Interest cost</font></td><td height="13" width="70" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> 9 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> 8 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> 19 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> 17 </font></td></tr><tr><td height="13" width="341" align="left"><font size="2">Expected return on plan assets</font></td><td height="13" width="70" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> (5)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> (7)</font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> (11)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> (14)</font></td></tr><tr><td height="13" width="341" align="left"><font size="2">Recognized actuarial loss</font></td><td height="13" width="70" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> 2 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> 2 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> 7 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> 2 </font></td></tr><tr><td height="13" width="341" align="left"><font size="2">Net curtailment gain</font></td><td height="13" width="70" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"><b> (11)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"> - </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"><b> (11)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"> - </font></td></tr><tr><td height="4" width="341" align="left"><font size="2"> </font></td><td height="4" width="70" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="341" align="left"><font size="2">          Net periodic benefit costs</font></td><td height="13" width="70" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"><b> 2 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2">$</font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"> 12 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"><b> 21 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2">$</font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"> 23 </font></td></tr><tr><td height="13" width="341" align="left"><font size="2"> </font></td><td height="13" width="70" align="left"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-top: 3px double #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;" align="center" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-top: 3px double #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;" align="center" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="341" align="left"><font size="2">Contributions</font></td><td height="13" width="70" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b>$</b></font></td><td height="13" width="60" align="right"><font size="2"><b> 1 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2">$</font></td><td height="13" width="60" align="right"><font size="2"> - </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b>$</b></font></td><td height="13" width="60" align="right"><font size="2"><b> 2 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2">$</font></td><td height="13" width="60" align="right"><font size="2"> 41 </font></td></tr><tr><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="341"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="70"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr></table></div><div><font size="2"><p>The Company curtailed or amended future benefits under certain of its pension plans in the second quarter of 2009. The resulting remeasurement reduced the Company’s pension liability by $184 million, with a corresponding increase of $105 million, net of tax, in comprehensive income.<br /><br />Contributions in 2008 include $40 million of payments to the Company’s domestic funded defined benefit pension plan. Remaining contributions relate to payments on unfunded plans to the extent benefits were paid. After considering the funded status of the Company’s defined benefit plans, minimum required contributions, movements in discount rate, investment performance and related tax consequences, the Company may choose to make contributions to its funded plans from time to time. In July 2009, the Company made a contribution of $112 million to the Company’s domestic funded defined benefit pension plan.</p></font></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>NOTE 10. RESTRUCTURING<br /><br />The Company’s restructuring liabilities as of June 30, 2009 by reporting segment are as follows:<br /></p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="6" style="border-top: 2px solid #000000;" align="left" width="271"><font size="2"> </font></td><td height="6" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="6" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="6" style="border-top: 2px solid #000000;" align="left" width="80"><font size="2"> </font></td><td height="6" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="6" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="6" style="border-top: 2px solid #000000;" align="left" width="80"><font size="2"> </font></td><td height="6" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="6" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="6" style="border-top: 2px solid #000000;" align="left" width="80"><font size="2"> </font></td><td height="6" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="6" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="6" style="border-top: 2px solid #000000;" align="left" width="80"><font size="2"> </font></td></tr><tr><td height="13" width="271" align="left"><font size="2"><b>Restructuring Liability</b></font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="80" align="center"><font size="2"><b>Media </b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="80" align="center"><font size="2"><b>Filmed </b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="80" align="center"><font size="2"><b> </b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="80" align="center"><font size="2"><b> </b></font></td></tr><tr><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="271"><font size="2">(in millions)</font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="80"><font size="2"><b>Networks</b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="80"><font size="2"><b>Entertainment</b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="80"><font size="2"><b>Corporate</b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="80"><font size="2"><b>Total</b></font></td></tr><tr><td height="13" style="border-top: 1px solid #000000;" align="right" width="271"><font size="2"><b>December 31, 2008</b></font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2">$</font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="80"><font size="2"> 71 </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2">$</font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="80"><font size="2"> 23 </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2">$</font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="80"><font size="2"> 11 </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2">$</font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="80"><font size="2"> 105 </font></td></tr><tr><td height="4" width="271" align="left"><font size="2"> </font></td><td height="4" width="60" align="left"><font size="2"> </font></td><td height="4" width="10" align="center"><font size="2"><b> </b></font></td><td height="4" width="80" align="left"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"><b> </b></font></td><td height="4" width="10" align="center"><font size="2"><b> </b></font></td><td height="4" width="80" align="left"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"><b> </b></font></td><td height="4" width="10" align="center"><font size="2"><b> </b></font></td><td height="4" width="80" align="left"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"><b> </b></font></td><td height="4" width="10" align="center"><font size="2"><b> </b></font></td><td height="4" width="80" align="left"><font size="2"><b> </b></font></td></tr><tr><td height="13" width="271" align="left"><font size="2">Additions</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="80" align="right"><font size="2"><b> 16 </b></font></td><td height="13" width="10" align="right"><font size="2"><b> </b></font></td><td height="13" width="10" align="right"><font size="2"><b> </b></font></td><td height="13" width="80" align="right"><font size="2"><b> 17 </b></font></td><td height="13" width="10" align="right"><font size="2"><b> </b></font></td><td height="13" width="10" align="right"><font size="2"><b> </b></font></td><td height="13" width="80" align="right"><font size="2"><b> - </b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="80" align="right"><font size="2"><b> 33 </b></font></td></tr><tr><td height="13" width="271" align="left"><font size="2">Severance payments</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="80" align="right"><font size="2"><b> (38)</b></font></td><td height="13" width="10" align="right"><font size="2"><b> </b></font></td><td height="13" width="10" align="right"><font size="2"><b> </b></font></td><td height="13" width="80" align="right"><font size="2"><b> (9)</b></font></td><td height="13" width="10" align="right"><font size="2"><b> </b></font></td><td height="13" width="10" align="right"><font size="2"><b> </b></font></td><td height="13" width="80" align="right"><font size="2"><b> (8)</b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="80" align="right"><font size="2"><b> (55)</b></font></td></tr><tr><td height="13" width="271" align="left"><font size="2">Lease payments</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="80" align="right"><font size="2"><b> (6)</b></font></td><td height="13" width="10" align="right"><font size="2"><b> </b></font></td><td height="13" width="10" align="right"><font size="2"><b> </b></font></td><td height="13" width="80" align="right"><font size="2"><b> - </b></font></td><td height="13" width="10" align="right"><font size="2"><b> </b></font></td><td height="13" width="10" align="right"><font size="2"><b> </b></font></td><td height="13" width="80" align="right"><font size="2"><b> - </b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="80" align="right"><font size="2"><b> (6)</b></font></td></tr><tr><td height="13" width="271" align="left"><font size="2">Revisions to initial estimates</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="80"><font size="2"><b> - </b></font></td><td height="13" width="10" align="right"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="80"><font size="2"><b> (5)</b></font></td><td height="13" width="10" align="right"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="80"><font size="2"><b> - </b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="80"><font size="2"><b> (5)</b></font></td></tr><tr><td height="4" width="271" align="left"><font size="2"> </font></td><td height="4" width="60" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="80"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="80"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="80"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="80"><font size="2"> </font></td></tr><tr><td height="13" width="271" align="right"><font size="2"><b>June 30, 2009</b></font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="80"><font size="2"><b> 43 </b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="80"><font size="2"><b> 26 </b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="80"><font size="2"><b> 3 </b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="80"><font size="2"><b> 72 </b></font></td></tr><tr><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="271"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="80"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="80"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="80"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="80"><font size="2"> </font></td></tr></table></div><div><font size="2"><p>During the second quarter of 2009 the Company incurred $33 million of severance charges included within Selling, general and administrative expenses in the Company’s Consolidated Statement of Earnings. There have been no significant changes to the restructuring plan undertaken in the fourth quarter of 2008. Included in the June 30, 2009 restructuring liability are $23 million of Media Networks and $9 million of Filmed Entertainment obligations related to the 2008 initiatives.<br /></p></font></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>NOTE 11. RELATED PARTY TRANSACTIONS <br />National Amusements, Inc. (“NAI”), through its wholly-owned subsidiary, NAIRI, Inc., is the controlling stockholder of both Viacom and CBS Corporation. Sumner M. Redstone, Chairman, Chief Executive Officer and controlling shareholder of NAI, is the Executive Chairman of the Board and Founder of Viacom and CBS Corporation. In addition, Shari Redstone, who is Sumner Redstone’s daughter, is the President of NAI and the Vice Chair of the Board of Viacom and CBS Corporation. George Abrams, one of the Company’s directors, serves on the boards of both NAI and Viacom and Frederic Salerno, another of the Company’s directors, serves on the boards of both Viacom and CBS Corporation. Philippe Dauman, the Company’s President and Chief Executive Officer, also serves on the boards of both NAI and Viacom. Mr. Dauman has presently recused himself from activity as an NAI board member with respect to all matters relating to the restructuring of NAI’s indebtedness. Transactions between Viacom and related parties are overseen by the Company’s Governance and Nominating Committee.<br />NAI licenses films in the ordinary course of business for its motion picture theaters from all major studios, including Paramount. During the six months ended June 30, 2009 and 2008, Paramount earned revenues from NAI in connection with these licenses in the aggregate amounts of approximately $19 million and $25 million, respectively.<br />Viacom and CBS Corporation Related Party Transactions<br />The Company, in the normal course of business, is involved in transactions with CBS Corporation and its various businesses (“CBS”) that result in the recognition of revenues and expenses by Viacom. Transactions with CBS, through the normal course of business, are settled in cash.<br />Paramount distributes certain television products into the home entertainment market on behalf of CBS. In connection with this agreement, Paramount made payments of $100 million to CBS during the first quarters of 2009 and 2008. Paramount also leases studio space to CBS and licensed motion picture products released before January 1, 2008 to CBS. Additionally, the Media Networks segment recognizes advertising revenues from CBS.<br />The Media Networks segment purchases television programming from CBS. The cost of such purchases is initially recorded as acquired program rights inventory and amortized over the estimated period that revenues will be generated. Both of the Company’s segments place advertisements with CBS.<br />The following table summarizes the transactions with CBS as included in the Company’s Consolidated Financial Statements:<br /></p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="13" style="border-top: 2px solid #000000;" align="left" width="311"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="80"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="80"><font size="2"> </font></td></tr><tr><td height="13" width="311" align="left"><font size="2"><b> </b></font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td width="150" align="center" height="13" colspan="5"><font size="2"><b>Quarter Ended</b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td width="190" align="center" height="13" colspan="5"><font size="2"><b>Six Months Ended</b></font></td></tr><tr><td height="13" width="311" align="left"><font size="2"><b>CBS Related Party Transactions</b></font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td width="150" align="center" colspan="5" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>June 30,</b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td width="190" align="center" colspan="5" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>June 30,</b></font></td></tr><tr><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="311"><font size="2">(in millions)</font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2009 </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2008 </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td width="90" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2009 </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td width="90" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2008 </b></font></td></tr><tr><td height="13" style="border-top: 1px solid #000000;" align="left" width="311"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="80"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="80"><font size="2"> </font></td></tr><tr><td height="13" width="311" align="left"><font size="2"><b>Consolidated Statements of Earnings</b></font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="80" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="80" align="left"><font size="2"> </font></td></tr><tr><td height="13" width="311" align="left"><font size="2">           Revenues</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b>$</b></font></td><td height="13" width="60" align="right"><font size="2"><b> 85 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2">$</font></td><td height="13" width="60" align="right"><font size="2"> 120 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b>$</b></font></td><td height="13" width="80" align="right"><font size="2"><b> 164 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2">$</font></td><td height="13" width="80" align="right"><font size="2"> 207 </font></td></tr><tr><td height="13" width="311" align="left"><font size="2">           Operating expenses</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b>$</b></font></td><td height="13" width="60" align="right"><font size="2"><b> 116 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2">$</font></td><td height="13" width="60" align="right"><font size="2"> 139 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b>$</b></font></td><td height="13" width="80" align="right"><font size="2"><b> 229 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2">$</font></td><td height="13" width="80" align="right"><font size="2"> 251 </font></td></tr><tr><td height="6" width="311" align="left"><font size="2"> </font></td><td height="6" width="60" align="left"><font size="2"> </font></td><td height="6" width="10" align="center"><font size="2"><b> </b></font></td><td height="6" width="60" align="left"><font size="2"> </font></td><td height="6" width="10" align="left"><font size="2"> </font></td><td height="6" width="10" align="center"><font size="2"> </font></td><td height="6" width="60" align="left"><font size="2"> </font></td><td height="6" width="10" align="left"><font size="2"> </font></td><td height="6" width="10" align="left"><font size="2"> </font></td><td height="6" width="80" align="left"><font size="2"> </font></td><td height="6" width="10" align="left"><font size="2"> </font></td><td height="6" width="10" align="left"><font size="2"> </font></td><td height="6" width="80" align="left"><font size="2"> </font></td></tr><tr><td height="13" width="311" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td width="90" align="center" height="13" colspan="2"><font size="2"><b>June 30,</b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td width="90" align="center" height="13" colspan="2"><font size="2"><b>December 31,</b></font></td></tr><tr><td height="13" width="311" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td width="90" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2009 </b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td width="90" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2008 </b></font></td></tr><tr><td height="13" width="311" align="left"><font size="2"><b>Consolidated Balance Sheets</b></font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="80"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="80"><font size="2"> </font></td></tr><tr><td height="13" width="311" align="left"><font size="2">           Accounts receivable</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b>$</b></font></td><td height="13" width="80" align="right"><font size="2"><b> 37 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2">$</font></td><td height="13" width="80" align="right"><font size="2"> 61 </font></td></tr><tr><td height="13" width="311" align="left"><font size="2">           Other assets</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="80"><font size="2"><b> 2 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="80"><font size="2"> 16 </font></td></tr><tr><td height="4" width="311" align="left"><font size="2"> </font></td><td height="4" width="60" align="left"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" width="60" align="left"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" width="60" align="left"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="80"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="80"><font size="2"> </font></td></tr><tr><td height="13" width="311" align="left"><font size="2">                       Total due from CBS</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="80"><font size="2"><b> 39 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2">$</font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="80"><font size="2"> 77 </font></td></tr><tr><td height="13" width="311" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-top: 3px double #000000;" align="left" width="80"><font size="2"><b> </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;" align="center" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;" align="left" width="80"><font size="2"> </font></td></tr><tr><td height="13" width="311" align="left"><font size="2">           Accounts payable</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b>$</b></font></td><td height="13" width="80" align="right"><font size="2"><b> 4 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2">$</font></td><td height="13" width="80" align="right"><font size="2"> 6 </font></td></tr><tr><td height="13" width="311" align="left"><font size="2">           Participants' share, residuals and royalties payable</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="80" align="right"><font size="2"><b> 197 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="80" align="right"><font size="2"> 160 </font></td></tr><tr><td height="13" width="311" align="left"><font size="2">           Programming rights, current</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="80" align="right"><font size="2"><b> 156 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="80" align="right"><font size="2"> 156 </font></td></tr><tr><td height="13" width="311" align="left"><font size="2">           Programming rights, noncurrent</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="80" align="right"><font size="2"><b> 169 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="80" align="right"><font size="2"> 242 </font></td></tr><tr><td height="13" width="311" align="left"><font size="2">           Other liabilities</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="80"><font size="2"><b> 9 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="80"><font size="2"> 13 </font></td></tr><tr><td height="4" width="311" align="left"><font size="2"> </font></td><td height="4" width="60" align="left"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" width="60" align="left"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" width="60" align="left"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="80"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="80"><font size="2"> </font></td></tr><tr><td height="13" width="311" align="left"><font size="2">                       Total due to CBS </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="80"><font size="2"><b> 535 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2">$</font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="80"><font size="2"> 577 </font></td></tr><tr><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="311"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="80"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="80"><font size="2"> </font></td></tr></table></div><div><font size="2"><p>Other Related Party Transactions <br />In the normal course of business, the Company is involved in related party transactions with equity investees, principally related to investments in unconsolidated VIEs as more fully described in Note 13. These related party transactions primarily relate to the provision of advertising services, licensing of film and programming content and the distribution of films for which the impact on the Company’s Consolidated Financial Statements is as follows:<br /></p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="13" style="border-top: 2px solid #000000;" align="left" width="341"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="65"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="65"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="341" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td width="160" align="center" height="13" colspan="5"><font size="2"><b>Quarter Ended</b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td width="150" align="center" height="13" colspan="5"><font size="2"><b>Six Months Ended</b></font></td></tr><tr><td height="13" width="341" align="left"><font size="2"><b>Other Related Party Transactions</b></font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td width="160" align="center" colspan="5" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>June 30,</b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td width="150" align="center" colspan="5" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>June 30,</b></font></td></tr><tr><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="341"><font size="2">(in millions)</font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td width="75" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2009 </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td width="75" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2008 </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2009 </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2008 </b></font></td></tr><tr><td height="13" style="border-top: 1px solid #000000;" align="left" width="341"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="65"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="65"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="341" align="left"><font size="2"><b>Consolidated Statements of Earnings</b></font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td></tr><tr><td height="13" width="341" align="left"><font size="2">           Revenues</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b>$</b></font></td><td height="13" width="65" align="right"><font size="2"><b> 78 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2">$</font></td><td height="13" width="65" align="right"><font size="2"> 91 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b>$</b></font></td><td height="13" width="60" align="right"><font size="2"><b> 186 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2">$</font></td><td height="13" width="60" align="right"><font size="2"> 200 </font></td></tr><tr><td height="13" width="341" align="left"><font size="2">           Operating expenses</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b>$</b></font></td><td height="13" width="65" align="right"><font size="2"><b> 45 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2">$</font></td><td height="13" width="65" align="right"><font size="2"> 50 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b>$</b></font></td><td height="13" width="60" align="right"><font size="2"><b> 110 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2">$</font></td><td height="13" width="60" align="right"><font size="2"> 127 </font></td></tr><tr><td height="13" width="341" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td></tr><tr><td height="13" width="341" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td width="70" align="center" height="13" colspan="2"><font size="2"><b>June 30,</b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td width="70" align="center" height="13" colspan="2"><font size="2"><b>December 31,</b></font></td></tr><tr><td height="13" width="341" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td width="70" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2009 </b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td width="70" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2008 </b></font></td></tr><tr><td height="13" width="341" align="left"><font size="2"><b>Consolidated Balance Sheets</b></font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="341" align="left"><font size="2">           Accounts receivable</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b>$</b></font></td><td height="13" width="60" align="right"><font size="2"><b> 104 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2">$</font></td><td height="13" width="60" align="right"><font size="2"> 88 </font></td></tr><tr><td height="13" width="341" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td></tr><tr><td height="13" width="341" align="left"><font size="2">           Accounts payable</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b>$</b></font></td><td height="13" width="60" align="right"><font size="2"><b> 44 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2">$</font></td><td height="13" width="60" align="right"><font size="2"> 25 </font></td></tr><tr><td height="13" width="341" align="left"><font size="2">           Participants' share, residuals and royalties payable</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> 35 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> 58 </font></td></tr><tr><td height="13" width="341" align="left"><font size="2">           Other liabilities</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> 56 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> 55 </font></td></tr><tr><td height="13" width="341" align="left"><font size="2">           Long-term debt</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"><b> 112 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"> 136 </font></td></tr><tr><td height="4" width="341" align="left"><font size="2"> </font></td><td height="4" width="60" align="left"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" width="65" align="left"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" width="65" align="left"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="341" align="left"><font size="2">                       Total due to other related parties</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="65" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"><b> 247 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2">$</font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"> 274 </font></td></tr><tr><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="341"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="65"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="65"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr></table></div><div><font size="2"><p>All other related party transactions are not material in the periods presented.</p></font></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>NOTE 12. COMMITMENTS AND CONTINGENCIES <br /> <br />As more fully described in Note 18 of the 2008 Annual Report, the Company’s commitments primarily consist of programming and talent commitments, operating lease arrangements, purchase obligations for goods and services, contingent consideration for acquisitions and future funding commitments related to certain equity investments, including a put option in respect of DW Funding. Additionally, as described in Note 1, the Company is subject to a redeemable put option with respect to an international subsidiary which expires in 2011 and is classified as Redeemable noncontrolling interest in the Consolidated Balance Sheets. These arrangements result from the Company’s normal course of business and represent obligations that may be payable over several years.<br /><br />Guarantees<br />In the course of its business, the Company both provides and receives the benefit of indemnities that are intended to allocate certain risks associated with business transactions. The Company guarantees debt on certain of our unconsolidated investments, including principal and interest, of approximately $236 million (including $204 million relating to certain unsecured debt of DW Funding) at June 30, 2009 and has accrued a liability of $56 million (including $54 million relating to DW Funding) in respect of such exposures, which is reflected as a component of Other liabilities – noncurrent in the Consolidated Balance Sheet.<br />At June 30, 2009, the Company’s aggregate guarantee related to lease commitments of divested businesses, primarily Famous Players and Blockbuster Inc. (“Blockbuster”), was $887 million (including $130 million attributable to Blockbuster) with a recorded liability of $245 million, reflecting the estimated fair value of the guarantees at their inception, including certain assumed renewals, which may or may not occur. Based on the Company’s consideration of financial information available to it, the lessees’ performance in meeting their lease obligations, the underlying economic factors impacting the lessees’ business models and where applicable, letters of credit on the Company’s behalf, the Company believes its accruals are sufficient to meet any future obligations. As more fully described in the 2008 Annual Report, under the terms of its separation from the former Viacom Inc. (“Former Viacom”), which is now known as CBS Corporation, we and Blockbuster have agreed to indemnify Former Viacom and the Company with respect to any amount paid under these guarantees. Blockbuster’s indemnification obligations are secured by $75 million in letters of credit to the Company’s benefit. Additionally, in connection with the separation, the Company agreed to indemnify Former Viacom with respect to certain theater lease obligations associated with Famous Players, which Former Viacom sold in 2005.<br /><br />Legal Matters<br />Litigation is inherently uncertain and always difficult to predict. However, based on our understanding and evaluation of the relevant facts and circumstances, the Company believes that the legal matters described below and other litigation to which the Company is a party are not likely, in the aggregate, to have a material adverse effect on its results of operations, financial position or cash flows.<br /><br />In March 2007, the Company filed a complaint in the United States District Court for the Southern District of New York against Google Inc. (“Google”) and its wholly-owned subsidiary YouTube, alleging that Google and YouTube violated and continue to violate the Company’s copyrights. The Company is seeking both damages and injunctive relief, and the lawsuit is currently in discovery.<br /><br />In September 2007, Brantley, et al. v. NBC Universal, Inc., et al., was filed in the United States District Court for the Central District of California against the Company and several other program content providers on behalf of a purported nationwide class of cable and satellite subscribers. The plaintiffs also sued several major cable and satellite program distributors. Plaintiffs allege that separate contracts between the program providers and the cable and satellite operator defendants providing for the sale of programming in specific tiers each unreasonably restrain trade in a variety of markets in violation of the Sherman Act. In March 2008, the court granted the defendants’ motion to dismiss the plaintiffs’ first amended complaint. The plaintiffs subsequently filed a second amended complaint seeking, among other things, treble monetary damages in an unspecified amount and an injunction to compel the offering of channels on an “à la carte” basis. In September 2008, the defendants’ motion to dismiss the second amended complaint was denied. In May 2009, plaintiffs filed a third amended complaint for which motions that are potentially dispositive of the matter are now pending before the court. The Company believes the plaintiffs’ position in this litigation is without merit and intends to continue to vigorously defend this lawsuit.<br /></p></font></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>NOTE 13. SUPPLEMENTAL CASH FLOW AND OTHER INFORMATION <br /></p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="13" style="border-top: 2px solid #000000;" align="left" width="351"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="351" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td width="150" align="center" height="13" colspan="5"><font size="2"><b>Quarter Ended</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td width="150" align="center" height="13" colspan="5"><font size="2"><b>Six Months Ended</b></font></td></tr><tr><td height="13" width="351" align="left"><font size="2"><b>Supplemental Cash Flow Information</b></font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td width="150" align="center" colspan="5" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>June 30,</b></font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td width="150" align="center" colspan="5" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>June 30,</b></font></td></tr><tr><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="351"><font size="2">(in millions)</font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2009 </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2008 </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2009 </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2008 </b></font></td></tr><tr><td height="13" style="border-top: 1px solid #000000;" align="left" width="351"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="60"><font size="2"><b> </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="60"><font size="2"><b> </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="60"><font size="2"><b> </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="60"><font size="2"><b> </b></font></td></tr><tr><td height="13" width="351" align="left"><font size="2">Cash paid for interest</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b>$</b></font></td><td height="13" width="60" align="right"><font size="2"><b> 196 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2">$</font></td><td height="13" width="60" align="right"><font size="2"> 213 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b>$</b></font></td><td height="13" width="60" align="right"><font size="2"><b> 219 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2">$</font></td><td height="13" width="60" align="right"><font size="2"> 250 </font></td></tr><tr><td height="13" width="351" align="left"><font size="2">Cash paid for income taxes</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b>$</b></font></td><td height="13" width="60" align="right"><font size="2"><b> 183 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2">$</font></td><td height="13" width="60" align="right"><font size="2"> 295 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b>$</b></font></td><td height="13" width="60" align="right"><font size="2"><b> 246 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2">$</font></td><td height="13" width="60" align="right"><font size="2"> 439 </font></td></tr><tr><td height="4" width="351" align="left"><font size="2"> </font></td><td height="4" width="60" align="left"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" width="60" align="left"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" width="60" align="left"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" width="60" align="left"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" width="60" align="left"><font size="2"> </font></td></tr><tr><td height="13" width="351" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td></tr><tr><td height="13" width="351" align="left"><font size="2"><b>Receivable Securitization Arrangements:</b></font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td width="150" align="center" height="13" colspan="5"><font size="2"><b> </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td width="150" align="center" height="13" colspan="5"><font size="2"><b> </b></font></td></tr><tr><td height="13" width="351" align="left"><font size="2">Receivable interests sold to investors at beginning of the period</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b>$</b></font></td><td height="13" width="60" align="right"><font size="2"><b> 950 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2">$</font></td><td height="13" width="60" align="right"><font size="2"> 950 </font></td></tr><tr><td height="13" width="351" align="left"><font size="2">Proceeds from the sale of receivables</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> 2,069 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> 2,232 </font></td></tr><tr><td height="13" width="351" align="left"><font size="2">Cash interest paid</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> 14 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> 21 </font></td></tr><tr><td height="13" width="351" align="left"><font size="2">Cash remitted</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> (2,158)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> (2,259)</font></td></tr><tr><td height="13" width="351" align="left"><font size="2">Cash remitted related to reduction in sponsor participation</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"><b> (175)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"> - </font></td></tr><tr><td height="4" width="351" align="left"><font size="2"> </font></td><td height="4" width="60" align="left"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" width="60" align="left"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" width="60" align="left"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="351" align="left"><font size="2">Receivable interests sold to investors at end of the period</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"><b> 700 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2">$</font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"> 944 </font></td></tr><tr><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="351"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="4" style="border-top: 2px solid #000000;" align="left" width="351"><font size="2"> </font></td><td height="4" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="4" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="4" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="4" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="4" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="4" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="4" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="4" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="4" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="4" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="4" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="4" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="351" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td></tr><tr><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="351"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" style="border-top: 2px solid #000000;" align="left" width="351"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="351" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td width="150" align="center" height="13" colspan="5"><font size="2"><b>Quarter Ended</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td width="150" align="center" height="13" colspan="5"><font size="2"><b>Six Months Ended</b></font></td></tr><tr><td height="13" width="351" align="left"><font size="2"><b>Interest Expense, net</b></font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td width="150" align="center" colspan="5" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>June 30,</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td width="150" align="center" colspan="5" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>June 30,</b></font></td></tr><tr><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="351"><font size="2">(in millions)</font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="60"><font size="2"><b>2009 </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="60"><font size="2"><b>2008 </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="60"><font size="2"><b>2009 </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="60"><font size="2"><b>2008 </b></font></td></tr><tr><td height="13" style="border-top: 1px solid #000000;" align="left" width="351"><font size="2">Interest expense</font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"><b> (112)</b></font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2">$</font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"> (132)</font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"><b> (224)</b></font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2">$</font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"> (260)</font></td></tr><tr><td height="13" width="351" align="left"><font size="2">Interest income</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"><b> 3 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"> 9 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"><b> 6 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"> 20 </font></td></tr><tr><td height="4" width="351" align="left"><font size="2"> </font></td><td height="4" width="60" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="351" align="left"><font size="2">Interest expense, net</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"><b> (109)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2">$</font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"> (123)</font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"><b> (218)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2">$</font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"> (240)</font></td></tr><tr><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="351"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="4" style="border-top: 2px solid #000000;" align="left" width="351"><font size="2"> </font></td><td height="4" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="4" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="4" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="4" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="4" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="4" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="4" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="4" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="4" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="4" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="4" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="4" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="351" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td></tr><tr><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="351"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" style="border-top: 2px solid #000000;" align="left" width="351"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="351" align="left"><font size="2"> </font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td width="150" align="center" height="13" colspan="5"><font size="2"><b>Quarter Ended</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td width="150" align="center" height="13" colspan="5"><font size="2"><b>Six Months Ended</b></font></td></tr><tr><td height="13" width="351" align="left"><font size="2"><b>Other Items, net</b></font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td width="150" align="center" colspan="5" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>June 30,</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td width="150" align="center" colspan="5" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>June 30,</b></font></td></tr><tr><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="351"><font size="2">(in millions)</font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2009 </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2008 </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2009 </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2008 </b></font></td></tr><tr><td height="13" style="border-top: 1px solid #000000;" align="left" width="351"><font size="2">Loss on securitization programs</font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"><b> (3)</b></font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2">$</font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"> (6)</font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"><b> (9)</b></font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2">$</font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"> (15)</font></td></tr><tr><td height="13" width="351" align="left"><font size="2">Foreign exchange (loss) gain</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> (11)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> (6)</font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> (24)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> 12 </font></td></tr><tr><td height="13" width="351" align="left"><font size="2">Impairment of minority investment</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> - </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> - </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> - </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> (12)</font></td></tr><tr><td height="13" width="351" align="left"><font size="2">Other losses</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"><b> (1)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"> - </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"><b> (1)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"> - </font></td></tr><tr><td height="4" width="351" align="left"><font size="2"> </font></td><td height="4" width="60" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="351" align="left"><font size="2">Other items, net</font></td><td height="13" width="60" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"><b> (15)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2">$</font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"> (12)</font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"><b> (34)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2">$</font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"> (15)</font></td></tr><tr><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="351"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr></table></div><div><font size="2"><p>Investments in Variable Interest Entities<br />In the normal course of business, the Company enters into joint ventures or makes investments with business partners that support its underlying business strategy and provide the ability to enter new markets to expand the reach of its brands, develop new programming and/or distribute its existing content. In certain instances, an entity in which the Company makes an investment may qualify as a VIE. The Company’s investments in unconsolidated and consolidated VIEs are further described in Note 5 of the 2008 Annual Report.<br /><br />Unconsolidated Variable Interest Entities<br />At June 30, 2009, in addition to the Company’s aggregate investment carrying value in VIEs of $147 million, it had future contractual funding commitments of $202 million as well as $54 million recorded for its guarantee related to DW Funding. The impact of the Company’s unconsolidated VIEs on its Consolidated Financial Statements, including related party transactions, is further described in Note 11 and Note 12.<br /><br />Consolidated Variable Interest Entities<br />As of June 30, 2009, there are $103 million of assets and $80 million of liabilities included within the Company’s Consolidated Balance Sheet in respect of MTV Tr3s’ investment interest in a Hispanic-oriented television broadcaster. The impact of the operating results of this consolidated VIE was not significant to the Company’s revenues, expenses or operating income for the quarter and six months ended June 30, 2009.<br /></p></font></div></body></html>
<html><head><meta content="text/html; charset=utf-8" /></head><body><div><font size="2"><p>NOTE 14. REPORTING SEGMENTS<br /> <br />The following tables set forth the Company’s financial performance by reporting segment. The Company’s reporting segments have been determined in accordance with the Company’s internal management structure. The Company manages its operations through two reporting segments: (i) Media Networks and (ii) Filmed Entertainment. Typical intersegment transactions include the purchase of advertising by the Filmed Entertainment segment on Media Networks’ properties and the purchase of Filmed Entertainment’s feature films exhibition rights by Media Networks. The elimination of such intercompany transactions in the Consolidated Financial Statements is included within eliminations in the table below. Operating income is used as the measure of segment profit performance.<br /></p></font></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="13" style="border-top: 2px solid #000000;" align="left" width="381"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="30"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="381" align="left"><font size="2"> </font></td><td height="13" width="30" align="left"><font size="2"> </font></td><td width="150" align="center" height="13" colspan="5"><font size="2"><b>Quarter Ended</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td width="150" align="center" height="13" colspan="5"><font size="2"><b>Six Months Ended</b></font></td></tr><tr><td height="13" width="381" align="left"><font size="2"><b>Revenues by Segment</b></font></td><td height="13" width="30" align="left"><font size="2"><b> </b></font></td><td width="150" align="center" colspan="5" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>June 30,</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td width="150" align="center" colspan="5" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>June 30,</b></font></td></tr><tr><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="381"><font size="2">(in millions)</font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="30"><font size="2"> </font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2009 </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2008 </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2009 </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2008 </b></font></td></tr><tr><td height="13" style="border-top: 1px solid #000000;" align="left" width="381"><font size="2">Media Networks</font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="30"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"><b> 1,966 </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2">$</font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"> 2,136 </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"><b> 3,831 </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2">$</font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"> 4,153 </font></td></tr><tr><td height="13" width="381" align="left"><font size="2">Filmed Entertainment</font></td><td height="13" width="30" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> 1,380 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> 1,771 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> 2,467 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> 2,917 </font></td></tr><tr><td height="13" width="381" align="left"><font size="2">Eliminations</font></td><td height="13" width="30" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"><b> (47)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"> (50)</font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"><b> (94)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"> (96)</font></td></tr><tr><td height="4" width="381" align="left"><font size="2"> </font></td><td height="4" width="30" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="381" align="left"><font size="2">Total revenues</font></td><td height="13" width="30" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="left" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"><b> 3,299 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="left" width="10"><font size="2">$</font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"> 3,857 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="left" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"><b> 6,204 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="left" width="10"><font size="2">$</font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"> 6,974 </font></td></tr><tr><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="381"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="30"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" style="border-top: 2px solid #000000;border-bottom: 2px solid #000000;" align="left" width="381"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;border-bottom: 2px solid #000000;" align="left" width="30"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" style="border-top: 2px solid #000000;" align="left" width="381"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="30"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="381" align="left"><font size="2"> </font></td><td height="13" width="30" align="left"><font size="2"> </font></td><td width="150" align="center" height="13" colspan="5"><font size="2"><b>Quarter Ended</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td width="150" align="center" height="13" colspan="5"><font size="2"><b>Six Months Ended</b></font></td></tr><tr><td height="13" width="381" align="left"><font size="2"><b>Operating Income (Loss) </b></font></td><td height="13" width="30" align="left"><font size="2"><b> </b></font></td><td width="150" align="center" colspan="5" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>June 30,</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td width="150" align="center" colspan="5" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>June 30,</b></font></td></tr><tr><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="381"><font size="2">(in millions)</font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="30"><font size="2"> </font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2009 </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2008 </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2009 </b></font></td><td height="13" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td width="70" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2008 </b></font></td></tr><tr><td height="13" style="border-top: 1px solid #000000;" align="left" width="381"><font size="2">Media Networks</font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="30"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"><b> 671 </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2">$</font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"> 765 </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"><b> 1,300 </b></font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2">$</font></td><td height="13" style="border-top: 1px solid #000000;" align="right" width="60"><font size="2"> 1,459 </font></td></tr><tr><td height="13" width="381" align="left"><font size="2">Filmed Entertainment</font></td><td height="13" width="30" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"><b> (25)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"> 86 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"><b> (148)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"> 23 </font></td></tr><tr><td height="4" width="381" align="left"><font size="2"> </font></td><td height="4" width="30" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="381" align="left"><font size="2">Total segment operating income</font></td><td height="13" width="30" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> 646 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> 851 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> 1,152 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> 1,482 </font></td></tr><tr><td height="13" width="381" align="left"><font size="2">Corporate expenses</font></td><td height="13" width="30" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> (61)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> (59)</font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> (122)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> (123)</font></td></tr><tr><td height="13" width="381" align="left"><font size="2">Eliminations</font></td><td height="13" width="30" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"><b> 1 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"> - </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"><b> (2)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"> - </font></td></tr><tr><td height="4" width="381" align="left"><font size="2"> </font></td><td height="4" width="30" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="381" align="left"><font size="2">Total operating income</font></td><td height="13" width="30" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> 586 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> 792 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> 1,028 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> 1,359 </font></td></tr><tr><td height="13" width="381" align="left"><font size="2">Interest expense, net</font></td><td height="13" width="30" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> (109)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> (123)</font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> (218)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> (240)</font></td></tr><tr><td height="13" width="381" align="left"><font size="2">Equity in losses of investee companies</font></td><td height="13" width="30" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> (23)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> (10)</font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"><b> </b></font></td><td height="13" width="60" align="right"><font size="2"><b> (56)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="60" align="right"><font size="2"> (16)</font></td></tr><tr><td height="13" width="381" align="left"><font size="2">Other items, net</font></td><td height="13" width="30" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"><b> (15)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"> (12)</font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"><b> (34)</b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="60"><font size="2"> (15)</font></td></tr><tr><td height="4" width="381" align="left"><font size="2"> </font></td><td height="4" width="30" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr><tr><td height="13" width="381" align="left"><font size="2">Earnings from continuing operations before provision for income taxes</font></td><td height="13" width="30" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="left" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"><b> 439 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="left" width="10"><font size="2">$</font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"> 647 </font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="left" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"><b> 720 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="left" width="10"><font size="2">$</font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="60"><font size="2"> 1,088 </font></td></tr><tr><td height="12" style="border-bottom: 2px solid #000000;" align="left" width="381"><font size="2"> </font></td><td height="12" style="border-bottom: 2px solid #000000;" align="left" width="30"><font size="2"> </font></td><td height="12" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="12" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="12" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="12" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="12" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="12" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="12" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="12" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td><td height="12" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="12" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="12" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="60"><font size="2"> </font></td></tr></table></div><div><table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="13" style="border-top: 2px solid #000000;" align="left" width="472"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="59"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="80"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 2px solid #000000;" align="left" width="80"><font size="2"> </font></td></tr><tr><td height="13" width="472" align="left"><font size="2"><b>Total Assets</b></font></td><td height="13" width="59" align="left"><font size="2"> </font></td><td width="90" align="center" height="13" colspan="2"><font size="2"><b>June 30,</b></font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td width="90" align="center" height="13" colspan="2"><font size="2"><b>December 31,</b></font></td></tr><tr><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="472"><font size="2">(in millions)</font></td><td height="13" style="border-bottom: 1px solid #000000;" align="left" width="59"><font size="2"> </font></td><td width="90" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2009 </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td width="90" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="13"><font size="2"><b>2008 </b></font></td></tr><tr><td height="4" style="border-top: 1px solid #000000;" align="left" width="472"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="59"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="80"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="80"><font size="2"> </font></td></tr><tr><td height="13" width="472" align="left"><font size="2">Media Networks</font></td><td height="13" width="59" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b>$</b></font></td><td height="13" width="80" align="right"><font size="2"><b> 15,650 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2">$</font></td><td height="13" width="80" align="right"><font size="2"> 15,784 </font></td></tr><tr><td height="13" width="472" align="left"><font size="2">Filmed Entertainment</font></td><td height="13" width="59" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"><b> </b></font></td><td height="13" width="80" align="right"><font size="2"><b> 5,506 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" width="10" align="center"><font size="2"> </font></td><td height="13" width="80" align="right"><font size="2"> 6,001 </font></td></tr><tr><td height="13" width="472" align="left"><font size="2">Corporate/Eliminations</font></td><td height="13" width="59" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="80"><font size="2"><b> 239 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="13" style="border-bottom: 1px solid #000000;" align="right" width="80"><font size="2"> 702 </font></td></tr><tr><td height="4" width="472" align="left"><font size="2"> </font></td><td height="4" width="59" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"><b> </b></font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="80"><font size="2"><b> </b></font></td><td height="4" width="10" align="left"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="center" width="10"><font size="2"> </font></td><td height="4" style="border-top: 1px solid #000000;" align="left" width="80"><font size="2"> </font></td></tr><tr><td height="13" width="472" align="left"><font size="2">Total assets</font></td><td height="13" width="59" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2"><b>$</b></font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="80"><font size="2"><b> 21,395 </b></font></td><td height="13" width="10" align="left"><font size="2"> </font></td><td height="13" style="border-bottom: 3px double #000000;" align="center" width="10"><font size="2">$</font></td><td height="13" style="border-bottom: 3px double #000000;" align="right" width="80"><font size="2"> 22,487 </font></td></tr><tr><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="472"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="59"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="80"><font size="2"> </font></td><td height="13" style="border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="10"><font size="2"> </font></td><td height="13" style="border-top: 3px double #000000;border-bottom: 2px solid #000000;" align="left" width="80"><font size="2"> </font></td></tr></table></div></body></html>