0000277135 2009-06-30 0000277135 2008-06-30 0000277135 2008-01-01 2008-06-30 0000277135 2008-12-31 0000277135 2009-01-01 2009-06-30 0000277135 2007-12-31 0000277135 2009-04-01 2009-06-30 0000277135 2008-04-01 2008-06-30 iso4217:USD xbrli:shares -14404000 -10693000

8237000

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118633000

3405765000

3515417000

1252634000

1201552000

74558636

78028077

74853304

78641274

1.21

1.42

2.46

2.83

2318000

3765000

4536000

5198000

none

500000000

685000

1097000

42090000

21257000

582431000

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<div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">In June 2008, the FASB issued Staff Position EITF 03-6-1, “Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities” (FSP 03-6-1). FSP 03-6-1 states that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method.  Upon adoption, a company is required to retrospectively adjust its earnings per share data presentation to conform with the FSP 03-6-1 provisions.  FSP 03-6-1 is effective for fiscal years beginning after December 15, 2008.</div><div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">On January 1, 2009, the Company adopted FSP 03-6-1.  The Company’s unvested share-based payment awards, such as certain Performance Shares, Restricted Stock and Restricted Stock Units that contain nonforfeitable rights to dividends meet the criteria of a participating security as defined by FSP 03-6-1.  The adoption of FSP 03-6-1 has changed the methodology of computing the Company’s earnings per share to the two-class method from the treasury stock method.  As a result, the Company has restated previously reported earnings per share.  This change has not affected previously reported consolidated net earnings or net cash flows from operations.  Under the two-class method, earnings are allocated between common stock and participating securities.  FSP 03-6-1 provides guidance that the presentation of basic and diluted earnings per share is required only for each class of common stock and not for participating securities.  As such, the Company will present basic and diluted earnings per share for its one class of common stock.</div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">The two-class method includes an earnings allocation formula that determines earnings per share for each class of common stock according to dividends declared and undistributed earnings for the period.  The Company’s reported net earnings is reduced by the amount allocated to participating securities to arrive at the earnings allocated to common stock shareholders for purposes of calculating earnings per share.</div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">The dilutive effect of participating securities is calculated using the more dilutive of the treasury stock or the two-class method.  The Company has determined the two-class method to be the more dilutive.  As such, the earnings allocated to common stock shareholders in the basic earnings per share calculation is adjusted for the reallocation of undistributed earnings to participating securities as prescribed by FSP 03-6-1 to arrive at the earnings allocated to common stock shareholders for calculating the diluted earnings per share.</div> <div style="DISPLAY: block; TEXT-INDENT: 0pt">  </div><div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">The following table sets forth the computation of basic and diluted earnings per share under the two-class method as prescribed by FSP 03-6-1 (in thousands of dollars, except for share and per share amounts):</div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="TEXT-ALIGN: center" align="left"><table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-ALIGN: center; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><tr style="TEXT-ALIGN: center;"><td valign="bottom" width="44%" style="PADDING-BOTTOM: 2px">  </td><td valign="bottom" width="1%" style="BORDER-TOP: medium none; PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td> <td colspan="6" valign="bottom" width="26%" style="BORDER-TOP: medium none; BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: center"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">Three Months Ended June 30,</div></td> <td nowrap valign="bottom" width="1%" style="BORDER-TOP: medium none; PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%" style="BORDER-TOP: medium none; PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td> <td colspan="6" valign="bottom" width="26%" style="BORDER-TOP: medium none; BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: center"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">Six Months Ended June 30,</div></td> <td nowrap valign="bottom" width="1%" style="BORDER-TOP: medium none; PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td></tr><tr> <td valign="bottom" width="44%" style="PADDING-BOTTOM: 2px">  </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">2009</div></td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">2008</div></td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">2009</div></td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">2008</div></td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"> <td align="left" valign="bottom" width="44%"><div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left">Net earnings as reported</div></td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">92,466</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">113,179</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">188,844</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">227,417</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"><td valign="bottom" width="44%">  </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="44%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left">Less: Distributed earnings available to participating securities</div></td><td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">(750</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left">)</td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">(673</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left">)</td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">(1,440</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left">)</td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">(1,189</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left">)</td></tr><tr bgcolor="white"><td valign="bottom" width="44%">  </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="44%" style="PADDING-BOTTOM: 2px"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left">Less: Undistributed earnings available to participating securities</div></td><td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(1,413</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td><td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(1,998</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td><td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(2,968</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td><td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(3,796</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td></tr><tr bgcolor="white"> <td valign="bottom" width="44%">  </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="44%"><div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left">Numerator for basic earnings per share –</div><div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Undistributed and distributed earnings available to common shareholders</div></td><td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">90,303</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">110,508</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">184,436</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">222,432</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"><td valign="bottom" width="44%">  </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="44%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left">Add: Undistributed earnings allocated to participating securities</div></td><td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">1,413</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">1,998</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">2,968</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">3,796</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"><td valign="bottom" width="44%">  </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="44%" style="PADDING-BOTTOM: 2px"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left">Less: Undistributed earnings reallocated to participating securities</div></td><td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(1,392</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td><td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(1,961</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td><td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(2,929</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td><td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(3,730</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td></tr><tr bgcolor="white"> <td valign="bottom" width="44%">  </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="44%" style="PADDING-BOTTOM: 4px"><div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left">Numerator for diluted earnings per share –</div><div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Undistributed and distributed earnings available to common shareholders</div></td><td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">90,324</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">110,545</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">184,475</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">222,498</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"> <td valign="bottom" width="44%">  </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="44%">  </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="44%"><div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left">Denominator for basic earnings per share – weighted average shares</div></td><td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">73,443,360</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">76,542,071</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">73,852,588</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">77,241,860</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="44%">  </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="44%" style="PADDING-BOTTOM: 2px"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Effect of dilutive securities</div></td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">1,115,276</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">1,486,006</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">1,000,716</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">1,399,414</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"> <td valign="bottom" width="44%">  </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="44%" style="PADDING-BOTTOM: 4px"><div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left">Denominator for diluted earnings per share – weighted average shares adjusted for dilutive securities</div></td><td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"> </td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">74,558,636</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"> </td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">78,028,077</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"> </td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">74,853,304</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"> </td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">78,641,274</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"> <td valign="bottom" width="44%">  </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="44%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Earnings per share Two-class method</div></td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="44%"><div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Basic</div></td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">1.23</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">1.44</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">2.50</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">2.88</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="44%"><div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Diluted</div></td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">1.21</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">1.42</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">2.46</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">2.83</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="44%">  </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr></table></div> </div>

-95947000

-163188000

-101329000

24004000

-12591000

109659219

300000000

34022000

2459000

17957000

-7439000

On June 19, 2009, the Company announced that it plans to become a majority owner of MonotaRO, a direct marketer of maintenance, repair and operating supplies in Japan, in which the Company currently has a 38.3% ownership interest.  MonotaRO held a shareholder meeting which authorized the repurchase of 1.83 million shares.  In August, the Company plans to initiate a tender offer bid for 380,000 MonotaRO shares, allowing the Company to achieve a majority interest in MonotaRO.  The Company expects to invest approximately $4.0 million through the tender offer bid process.  The tender is anticipated to be completed in the third quarter.  At the time majority ownership is obtained, the Company will recognize 100% of the fair value of acquired assets and assumed liabilities.  It is anticipated that this transaction will result in consolidation of MonotaRO’s results and trigger realization of a one time gain which could be significant.

10-Q

20001000

144797000

127696000

270950000

11730000

6781000

0.46

0.40

0.86

0.75

234000

796000

237000

1431000

<div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">NEW ACCOUNTING STANDARDS</div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">In April 2009, the Financial Accounting Standards Board (FASB) issued FASB Staff Position FAS 141(R)-1, “Accounting for Assets Acquired and Liabilities Assumed in a Business Combination That Arise from Contingencies” (FSP 141(R)-1).  FSP 141(R)-1 requires that assets acquired and liabilities assumed in a business combination that arise from contingencies be recognized at fair value if fair value can be reasonably estimated.  If fair value of such an asset or liability cannot be reasonably estimated, the asset or liability would generally be recognized in accordance with FASB Statement No. 5, “Accounting for Contingencies,” and FASB Interpretation No. 14, “Reasonable Estimation of the Amount of a Loss.”  This FSP is effective for assets or liabilities arising from contingencies in business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008.  The Company does not expect the adoption of FSP 141(R)-1 to have a material effect on its results of operations or financial position.</div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"> </div><div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">In April 2009, the FASB issued three Staff Positions intended to provide application guidance and revise the disclosures regarding fair value measurements and impairment of securities.  A summary of each Staff Position is as follows:</div><div><table cellpadding="0" cellspacing="0" id="list" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><tr valign="top"><td align="right" style="WIDTH: 36pt"><div>·  </div></td><td><div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">FSP 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,” addresses the determination of fair values when there is no active market or where the price inputs represent distressed sales.  FSP 157-4 reaffirms the view in SFAS No.157 that the objective of fair value measurement is to reflect an asset’s sale price in an orderly transaction at the date of the financial statements.</div></td></tr></table></div> <div><table cellpadding="0" cellspacing="0" id="list" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><tr valign="top"><td align="right" style="WIDTH: 36pt"><div>·  </div></td><td><div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">FSP 107-1 and APB 28-1, “Interim Disclosures about Fair Value of Financial Instruments,” enhances consistency in financial reporting by increasing the frequency of fair value disclosures to a quarterly basis for any financial instruments that are not currently reflected on the balance sheet at fair value.</div></td></tr></table></div> <div><table cellpadding="0" cellspacing="0" id="list" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><tr valign="top"><td align="right" style="WIDTH: 36pt"><div>·  </div></td><td><div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">FSP 115-2, FAS 124-2, and EITF 99-20-2, “Recognition and Presentation of Other-Than-Temporary Impairments,” provides additional guidance designed to create greater consistency to the timing of impairment recognition and provide greater clarity about the credit and noncredit components of impaired debt securities that are not expected to be sold.</div></td></tr></table></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">The three Staff Positions are effective for interim and annual periods ending after June 15, 2009.  The adoption of these FSPs did not have a material effect on the Company’s results of operations or financial position.</div><div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">In May 2009, the FASB issued Statement of Financial Accounting Standards No. 165, “Subsequent Events” (SFAS No. 165) to provide authoritative accounting literature for subsequent events which was previously addressed only in auditing literature.  SFAS No. 165 addresses events that occur after the balance sheet date but before the issuance of the financial statements.  It distinguishes between subsequent events that should be recognized in the financial statements and those that should not.  Also, it requires disclosure of the date through which subsequent events were evaluated and disclosures for certain non-recognized events.  SFAS No. 165 is effective on a prospective basis for interim or annual financial periods ending after June 15, 2009.  The Company applied the provision of SFAS No. 165 for the period ending June 30, 2009 and disclosed the date through which it has evaluated subsequent events and the basis for choosing that date.  The adoption of SFAS No. 165 did not have a material effect on the Company’s results of operations or financial position.</div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">In June 2009, the FASB issued Statement of Financial Accounting Standards No. 167 (SFAS No. 167) which is a revision to FASB Interpretation No. 46 (Revised December 2003), “Consolidation of Variable Interest Entities.”  This statement changes how a reporting entity determines when an entity that is insufficiently capitalized or is not controlled through voting (or similar rights) should be consolidated.  SFAS No. 167 will require a reporting entity to provide additional disclosures about its involvement with variable interest entities and any significant changes in risk exposure due to that involvement.  SFAS No. 167 will be effective at the start of a reporting entity’s first fiscal year beginning after November 15, 2009, or January 1, 2010, for a calendar year-end entity.  The Company does not expect the adoption of SFAS167 to have a material effect on its results of operations or financial position.</div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">In June 2009, the FASB issued statement No. 168 “The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles” (FASB Statement No. 168) which establishes the FASB Accounting Standards Codification to become the source of authoritative U.S. generally accepted accounting principles to be applied by non-governmental entities.  The Accounting Standards Codification will supersede all existing non-SEC accounting and reporting standards.  FASB Statement No. 168 is effective for interim or annual financial periods ending after September 15, 2009.  The Company will apply this statement for the period ending September 30, 2009, however it does not expect adoption to have a material effect on its results of operations or financial position.</div></div>

2009-06-30 Large Accelerated Filer

-2162000

-1865000

27955000

26481000

3405765000

3515417000

54830000

467395000

488228000

25499000

19960000

707000

1343000

783000

2080000

153929000

184835000

313143000

370658000

5681567963

On July 29, 2009, the Company’s Board of Directors declared a quarterly dividend of 46 cents per share, payable September 1, 2009, to shareholders of record on August 10, 2009.

65174000

59351000

46796000

97613000

210208000 198431000 35872000 33219000

218841000

213159000

110723000

97442000

151626000 184380000 310094000 370880000

908295000

1050979000

1744128000

2032091000

Yes

6618000

-82929000

2110678000

2033805000

19645000

20830000

2181430000

2131863000

-1199000

-65000

-207000

-131000

624968000

705877000

1254383000

1385811000

Yes

-163802000

122343000

55421000 146922000

<div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Retirement Plans</div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">A majority of the Company’s employees are covered by a noncontributory profit sharing plan.  This plan provides for annual employer contributions based upon a formula related primarily to earnings before federal income taxes with a minimum contribution of 8% and a maximum contribution of 18% of total eligible compensation paid to all eligible employees.</div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Postretirement Benefits</div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">The Company has a postretirement healthcare benefits plan that provides coverage for a majority of its employees and their dependents should they elect to maintain such coverage upon retirement. Covered employees become eligible for participation when they qualify for retirement while working for the Company.  Participation in the plan is voluntary and requires participants to make contributions toward the cost of the plan, as determined by the Company.</div><div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">The net periodic benefit costs charged to operating expenses, which are valued at the measurement date of January 1 and recognized evenly throughout the year, consisted of the following components (in thousands of dollars):</div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="TEXT-ALIGN: center" align="left"><table cellpadding="0" cellspacing="0" width="90%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-ALIGN: center; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><tr style="TEXT-ALIGN: center;"><td valign="bottom" width="40%" style="PADDING-BOTTOM: 2px">  </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="6" valign="bottom" width="28%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Three Months Ended June 30,</div></td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="6" valign="bottom" width="28%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Six Months Ended June 30,</div></td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td></tr><tr><td valign="bottom" width="40%" style="PADDING-BOTTOM: 2px">  </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">2009</div></td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">2008</div></td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">2009</div></td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">2008</div></td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"> <td align="left" valign="bottom" width="40%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Service cost</div></td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">3,076</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">2,425</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">6,152</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">4,850</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="40%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Interest cost</div></td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">2,682</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">2,372</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">5,365</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">4,745</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="40%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Expected return on assets</div></td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">(851</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left">)</td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">(1,116</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left">)</td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">(1,701</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left">)</td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">(2,232</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left">)</td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="40%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Amortization of transition asset</div></td><td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">(35</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left">)</td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">(36</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left">)</td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">(71</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left">)</td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">(72</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left">)</td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="40%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Amortization of unrecognized losses</div></td><td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">1,033</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">328</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">2,067</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">656</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="40%" style="PADDING-BOTTOM: 2px"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Amortization of prior service credits</div></td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(318</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(304</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(607</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(608</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td></tr><tr bgcolor="#cceeff"> <td align="left" valign="bottom" width="40%" style="PADDING-BOTTOM: 4px"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Net periodic benefit costs</div></td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">5,587</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">3,669</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">11,205</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">7,339</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td></tr></table></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">The Company has established a Group Benefit Trust to fund the plan and process benefit payments.  The funding of the trust is an estimated amount, which is intended to allow the maximum deductible contribution under the Internal Revenue Code of 1986 (IRC), as amended.  There are no minimum funding requirements and the Company intends to follow its practice of funding the maximum deductible contribution under the IRC.  During the three and six months ended June 30, 2009, the Company contributed $1.0 million and $1.8 million, respectively, to the trust.</div></div>

--12-31

21476000

31891000

576433000

564728000

<div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">W.W. Grainger, Inc. distributes facilities maintenance products and provides services used by businesses and institutions primarily in the United States, Canada and Mexico to keep their facilities and equipment running.  In this report, the words “Company” or “Grainger” mean W.W. Grainger, Inc. and its subsidiaries.</div><div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">The Condensed Consolidated Financial Statements of the Company and the related notes are unaudited and should be read in conjunction with the consolidated financial statements and related notes for the year ended December 31, 2008, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC).</div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">The Condensed Consolidated Balance Sheet as of December 31, 2008, has been derived from the audited consolidated financial statements at that date, but does not include all of the disclosures required by accounting principles generally accepted in the United States of America for complete financial statements.</div><div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">The unaudited financial information reflects all adjustments (primarily consisting of normal recurring adjustments) which, in the opinion of management, are necessary for a fair presentation of the statements contained herein.</div><div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">The Company has evaluated subsequent events through July 31, 2009, the date the financial statements were issued.</div></div>

73623181

5412000

9369000

-41776000

27761000

2025025000

2144109000

-4135000

-409000

-2351000

1599000

126488000

115638000

206801000

219978000

1.23

1.44

2.50

2.88

471039000

521042000

941240000

1015153000

1533263000

1756856000

2998511000

3417902000

396290000

113437000

416291000

258234000

2996000

7442000

232610000

118722000

878000

-8800000

119887000

162380000

928796000

930311000

53981000

52556000

899843000

1009932000

273000

1236000

674000

2040000

<div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">In June 2009, the Company acquired the remaining 50.1% of its joint venture in India, Asia Pacific Brands India Private Limited (Asia Pacific Brands), for $1.2 million.  Asia Pacific Brands had revenue of approximately US$32 million for its fiscal year ended March 31, 2009.  The Company originally paid $5.4 million for its ownership interest which was effective July 21, 2008.  At the time of the original investment, the Company and its joint venture partner each made a $1.1 million capital infusion which was intended to help grow the business.  In the fourth quarter of 2008, the Company wrote-off its investment in this joint venture due to the economic slowdown in India and the loss of a major supplier which accounted for approximately 25% of the joint venture’s annual revenue.  These conditions severely affected Asia Pacific Brands’ ability to secure additional financing to meet its current obligations and continue as a going concern.  Up through the time that the investment was written-off, the Company used the equity method to account for this investment.  Over the past six months Asia Pacific Brands’ business has improved.  It has been able to streamline its operations, strengthen its management and enhance its supplier base.  The results of Asia Pacific Brands are now included in the Company’s consolidated results from the date of acquisition.  Due to the immaterial nature of this transaction, disclosure of pro forma results were not considered necessary.</div></div>

false No

5108000

4166000

53000

-3366000

68505000

64895000

36036038

34878190

3794397000

3670726000

102735000

109566000

<div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Effective January 1, 2009 the Company revised its segment disclosure.  The Company has two reportable segments:  the United States and Canada.  In the first quarter of 2009, the Company integrated the Lab Safety Supply business into the Grainger Industrial Supply business and results are now reported under the United States segment.  The Canada segment reflects the results for Acklands – Grainger, Inc., the Company’s Canadian branch-based distribution business.  Other Businesses include the following:  Grainger, S.A. de C.V. (Mexico), Asia Pacific Brands India Private Limited (India), Grainger Caribe Inc. (Puerto Rico), Grainger China LLC (China) and Grainger Panama S.A. (Panama).  These businesses generate revenue through the distribution of facilities maintenance products.  Prior year segment amounts have been restated in a consistent manner.  Following is a summary of segment results (in thousands of dollars):</div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="TEXT-ALIGN: center" align="left"><table cellpadding="0" cellspacing="0" width="95%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-ALIGN: center; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><tr style="TEXT-ALIGN: center;"><td valign="bottom" width="40%" style="PADDING-BOTTOM: 2px">  </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="14" valign="bottom" width="58%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Three Months Ended June 30, 2009</div></td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td></tr><tr><td valign="bottom" width="40%" style="PADDING-BOTTOM: 2px">  </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">United States</div></td> <td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Canada</div></td> <td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Other Businesses</div></td> <td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Total</div></td> <td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"> <td align="left" valign="bottom" width="40%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Total net sales</div></td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">1,353,795</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">160,724</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">27,901</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">1,542,420</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="40%" style="PADDING-BOTTOM: 2px"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Intersegment net sales</div></td> <td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(8,957</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(81</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(119</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(9,157</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td></tr><tr bgcolor="#cceeff"> <td align="left" valign="bottom" width="40%" style="PADDING-BOTTOM: 4px"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Net sales to external customers</div></td> <td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">1,344,838</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">160,643</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">27,782</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">1,533,263</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"> <td valign="bottom" width="40%">  </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="40%" style="PADDING-BOTTOM: 4px"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Segment operating earnings (losses)</div></td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">176,533</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">9,740</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">(3,284</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left">)</td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">182,989</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"> <td valign="bottom" width="40%">  </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr></table></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"> </div><div style="TEXT-ALIGN: center" align="center"><table cellpadding="0" cellspacing="0" width="95%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-ALIGN: center; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><tr style="TEXT-ALIGN: center;"><td valign="bottom" width="40%" style="PADDING-BOTTOM: 2px">  </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="14" valign="bottom" width="58%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Three Months Ended June 30, 2008</div></td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td></tr><tr><td valign="bottom" width="40%" style="PADDING-BOTTOM: 2px">  </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">United States</div></td> <td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Canada</div></td> <td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Other Businesses</div></td> <td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Total</div></td> <td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"> <td align="left" valign="bottom" width="40%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Total net sales</div></td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">1,542,921</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">197,867</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">30,527</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">1,771,315</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="40%" style="PADDING-BOTTOM: 2px"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Intersegment net sales</div></td> <td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(14,285</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">–</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(174</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(14,459</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td></tr><tr bgcolor="#cceeff"> <td align="left" valign="bottom" width="40%" style="PADDING-BOTTOM: 4px"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Net sales to external customers</div></td> <td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">1,528,636</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">197,867</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">30,353</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">1,756,856</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"> <td valign="bottom" width="40%">  </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="40%" style="PADDING-BOTTOM: 4px"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Segment operating earnings (losses)</div></td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">209,721</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">16,013</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">(1,927</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left">)</td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">223,807</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"> <td valign="bottom" width="40%">  </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr></table></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="TEXT-ALIGN: center" align="center"><table cellpadding="0" cellspacing="0" width="95%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-ALIGN: center; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><tr style="TEXT-ALIGN: center;"><td valign="bottom" width="40%" style="PADDING-BOTTOM: 2px">  </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="14" valign="bottom" width="58%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Six Months Ended June 30, 2009</div></td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td></tr><tr><td valign="bottom" width="40%" style="PADDING-BOTTOM: 2px">  </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">United States</div></td> <td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Canada</div></td> <td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Other Businesses</div></td> <td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Total</div></td> <td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"> <td align="left" valign="bottom" width="40%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Total net sales</div></td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">2,662,532</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">304,519</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">50,433</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">3,017,484</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="40%" style="PADDING-BOTTOM: 2px"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Intersegment net sales</div></td> <td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(18,650</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(93</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(230</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(18,973</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td></tr><tr bgcolor="#cceeff"> <td align="left" valign="bottom" width="40%" style="PADDING-BOTTOM: 4px"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Net sales to external customers</div></td> <td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">2,643,882</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">304,426</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">50,203</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">2,998,511</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"> <td valign="bottom" width="40%">  </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="40%" style="PADDING-BOTTOM: 4px"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Segment operating earnings (losses)</div></td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">349,718</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">15,694</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">(6,218</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left">)</td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">359,194</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"> <td valign="bottom" width="40%">  </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr></table></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="TEXT-ALIGN: center" align="center"><table cellpadding="0" cellspacing="0" width="95%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-ALIGN: center; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><tr style="TEXT-ALIGN: center;"><td valign="bottom" width="40%" style="PADDING-BOTTOM: 2px">  </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="14" valign="bottom" width="58%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Six Months Ended June 30, 2008</div></td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td></tr><tr><td valign="bottom" width="40%" style="PADDING-BOTTOM: 2px">  </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">United States</div></td> <td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Canada</div></td> <td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Other Businesses</div></td> <td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Total</div></td> <td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"> <td align="left" valign="bottom" width="40%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Total net sales</div></td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">3,012,276</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">375,170</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">55,072</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">3,442,518</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="40%" style="PADDING-BOTTOM: 2px"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Intersegment net sales</div></td> <td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(24,388</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">–</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(228</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(24,616</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td></tr><tr bgcolor="#cceeff"> <td align="left" valign="bottom" width="40%" style="PADDING-BOTTOM: 4px"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Net sales to external customers</div></td> <td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">2,987,888</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">375,170</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">54,844</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">3,417,902</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"> <td valign="bottom" width="40%">  </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="40%" style="PADDING-BOTTOM: 4px"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Segment operating earnings (losses)</div></td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">404,854</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">27,688</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">(6,151</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left">)</td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">426,391</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"> <td valign="bottom" width="40%">  </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr></table></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="TEXT-ALIGN: center" align="center"><table cellpadding="0" cellspacing="0" width="95%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-ALIGN: center; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><tr style="TEXT-ALIGN: center;"><td valign="bottom" width="40%" style="PADDING-BOTTOM: 2px">  </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">United States</div></td> <td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Canada</div></td> <td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Other Businesses</div></td> <td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Total</div></td> <td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td></tr><tr><td align="left" valign="bottom" width="40%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Segment assets:</div></td> <td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="PADDING-BOTTOM: 2px"> </td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="PADDING-BOTTOM: 2px"> </td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="PADDING-BOTTOM: 2px"> </td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="PADDING-BOTTOM: 2px"> </td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"> <td align="left" valign="bottom" width="40%" style="PADDING-BOTTOM: 4px"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">June 30, 2009</div></td> <td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">2,173,493</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">464,849</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">147,237</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">2,785,579</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"> <td valign="bottom" width="40%">  </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="40%" style="PADDING-BOTTOM: 4px"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">December 31, 2008</div></td> <td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">2,310,484</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">448,660</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">133,111</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">2,892,255</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"> <td valign="bottom" width="40%">  </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td><td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right"> </td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr></table></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt">  </div><div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Following are reconciliations of segment information with the consolidated totals per the financial statements (in thousands of dollars):</div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"> </div><div style="TEXT-ALIGN: center" align="center"><table cellpadding="0" cellspacing="0" width="95%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-ALIGN: center; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><tr style="TEXT-ALIGN: center;"><td valign="bottom" width="44%" style="PADDING-BOTTOM: 2px">  </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="6" valign="bottom" width="26%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Three Months Ended June 30,</div></td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="6" valign="bottom" width="26%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Six Months Ended June 30,</div></td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td></tr><tr><td valign="bottom" width="44%" style="PADDING-BOTTOM: 2px">  </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">2009</div></td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">2008</div></td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">2009</div></td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">2008</div></td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td></tr><tr><td align="left" valign="bottom" width="44%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Operating earnings:</div></td> <td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="14" valign="bottom" width="54%" style="PADDING-BOTTOM: 2px"> </td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"> <td align="left" valign="bottom" width="44%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: -45.9pt" align="left">Total operating earnings for reportable segments</div></td><td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">182,989</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">223,807</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">359,194</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="11%" style="TEXT-ALIGN: right">426,391</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="44%" style="PADDING-BOTTOM: 2px"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: -45.9pt" align="left">Unallocated expenses and eliminations</div></td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(29,060</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(38,972</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(46,051</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(55,733</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td></tr><tr bgcolor="#cceeff"> <td align="left" valign="bottom" width="44%" style="PADDING-BOTTOM: 4px"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: -45.9pt" align="left">Total consolidated operating earnings</div></td> <td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">153,929</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">184,835</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">313,143</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="11%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">370,658</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td></tr></table></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="TEXT-ALIGN: center" align="center"><table cellpadding="0" cellspacing="0" width="95%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-ALIGN: center; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><tr style="TEXT-ALIGN: center;"><td valign="bottom" width="70%" style="PADDING-BOTTOM: 2px">  </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">June 30, 2009</div></td> <td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Dec. 31, 2008</div></td> <td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td></tr><tr><td align="left" valign="bottom" width="70%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Assets:</div></td> <td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="6" valign="bottom" width="28%" style="PADDING-BOTTOM: 2px"> </td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"> <td align="left" valign="bottom" width="70%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Total assets for reportable segments</div></td><td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">2,785,579</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">2,892,255</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="70%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Elimination of intersegment assets</div></td><td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">(2,470</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left">)</td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">(2,095</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left">)</td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="70%" style="PADDING-BOTTOM: 2px"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Unallocated assets</div></td> <td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">622,656</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">625,257</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"> <td align="left" valign="bottom" width="70%" style="PADDING-BOTTOM: 4px"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Total consolidated assets</div></td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">3,405,765</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">3,515,417</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td></tr></table></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Unallocated expenses and unallocated assets primarily relate to the Company headquarters’ support services, which are not part of any business segment.  Unallocated expenses include payroll and benefits, depreciation and other costs associated with headquarters-related support services.  Unallocated assets primarily include non-operating cash and cash equivalents, certain prepaid expenses, deferred income taxes and non-operating property, buildings and equipment – net.</div><div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Unallocated expenses decreased $9.9 million and $9.7 million for the three and six months ended June 30, 2009, respectively.  The decrease in unallocated expenses is primarily due to lower payroll and benefits and a $6.0 million provision for a legal reserve in 2008 that did not repeat in 2009.</div><div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">The unallocated assets as of June 30, 2009 were essentially flat when compared to the unallocated assets at December 31, 2008.</div></div>

<div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">The Company generally warrants the products it sells against defects for one year.  For a significant portion of warranty claims, the manufacturer of the product is responsible for the expenses associated with this warranty program.  For warranty expenses not covered by the manufacturer, the Company provides a reserve for future costs based on historical experience.  The warranty reserve activity was as follows (in thousands of dollars):</div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="TEXT-ALIGN: center" align="center"><table cellpadding="0" cellspacing="0" width="80%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-ALIGN: center; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><tr style="TEXT-ALIGN: center;"><td valign="bottom" width="70%" style="PADDING-BOTTOM: 2px">  </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="6" valign="bottom" width="28%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Six Months Ended June 30,</div></td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td></tr><tr><td valign="bottom" width="70%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: center">  </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">2009</div></td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">2008</div></td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td></tr><tr bgcolor="#cceeff"> <td align="left" valign="bottom" width="70%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Beginning balance</div></td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">3,218</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">3,442</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="70%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Returns</div></td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">(5,626</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left">)</td> <td align="left" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="12%" style="TEXT-ALIGN: right">(5,997</td> <td nowrap valign="bottom" width="1%" style="TEXT-ALIGN: left">)</td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="70%" style="PADDING-BOTTOM: 2px"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Provision</div></td> <td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">5,550</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">6,064</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td></tr><tr bgcolor="white"> <td align="left" valign="bottom" width="70%" style="PADDING-BOTTOM: 4px"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Ending balance</div></td> <td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">3,142</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td><td align="left" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td><td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td><td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">3,509</td><td nowrap valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: center"> </td></tr></table></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div></div>

804000

-7050000

816000

111000

-49611000

-89218000

2294414000

2217954000

255373000

290802000

<div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">As previously reported, in December 2007, the Company received a letter from the Commercial Litigation Branch of the Civil Division of the Department of Justice (the “DOJ”) regarding the Company’s contract with the United States General Services Administration (the “GSA”).  The letter suggested that the Company had not complied with its disclosure obligations and the contract’s pricing provisions, and had potentially overcharged government customers under the contract.</div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Discussions relating to the Company’s compliance with its disclosure obligations and the contract’s pricing provisions are ongoing.  The timing and outcome of these discussions are uncertain and could include settlement or civil litigation by the DOJ to recover, among other amounts, treble damages and penalties under the False Claims Act.  While this matter is not expected to have a material adverse effect on the Company’s financial position, an unfavorable resolution could result in significant payments by the Company.  The Company continues to believe that it has complied with the GSA contract in all material respects.</div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div></div>

-1345000

6868000

120528000

-22107000

-948000

-19429000

24841000

27478000

0.50

2564000

1780000

72479000 95915000

59160000

71201000

121250000

143463000

-2303000

-455000

-3049000

222000

0000277135 W.W. Grainger, Inc.

12000000

-20568000

-38525000

92466000

113179000

188844000

227417000