0000893220-08-002827.txt : 20120712 0000893220-08-002827.hdr.sgml : 20120712 20081028172509 ACCESSION NUMBER: 0000893220-08-002827 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20081028 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20081028 DATE AS OF CHANGE: 20081028 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DUPONT E I DE NEMOURS & CO CENTRAL INDEX KEY: 0000030554 STANDARD INDUSTRIAL CLASSIFICATION: PLASTIC MATERIAL, SYNTH RESIN/RUBBER, CELLULOS (NO GLASS) [2820] IRS NUMBER: 510014090 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-00815 FILM NUMBER: 081145527 BUSINESS ADDRESS: STREET 1: 1007 MARKET ST CITY: WILMINGTON STATE: DE ZIP: 19898 BUSINESS PHONE: 3027741000 MAIL ADDRESS: STREET 1: 1007 MARKET ST CITY: WILMINGTON STATE: DE ZIP: 19898 8-K 1 w71326e8vk.htm FORM 8-K e8vk
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported) October 28, 2008
E. I. du Pont de Nemours and Company
(Exact Name of Registrant as Specified in Its Charter)
         
Delaware
(State or Other Jurisdiction
Of Incorporation)
  1-815
(Commission
File Number)
  51-0014090
(I.R.S. Employer
Identification No.)
1007 Market Street
Wilmington, Delaware 19898
(Address of principal executive offices)
Registrant’s telephone number, including area code: (302) 774-1000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 


 

Item 8.01   Other Events
E. I. du Pont de Nemours and Company (the “Company”) filed its Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2008 (“Q3 2008 10-Q”) on October 28, 2008. As a participant in the Securities and Exchange Commission’s voluntary XBRL (eXtensible Business Reporting Language) program, the Company has attached as Exhibit 100 to this Current Report on Form 8-K the following components of the Company’s Q3 2008 10-Q formatted in XBRL: (i) the Consolidated Income Statements for the three and nine months ended September 30, 2008 and 2007, (ii) the Condensed Consolidated Balance Sheets as of September 30, 2008 and December 31, 2007, (iii) the Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2008 and 2007, and (iv) the Notes to the Consolidated Financial Statements.
Pursuant to Rule 401 of Regulation S-T, users of this data are advised that the financial information contained in the XBRL-related documents is unaudited and that these are not the official publicly filed financial statements of the Company. The purpose of submitting these XBRL-related documents is to test the related format and technology, and, as a result, investors should continue to rely on the official filed version of the furnished documents and not rely on the information in this Current Report on Form 8-K, including Exhibit 100, in making investment decisions.
In accordance with Rule 402 of Regulation S-T, the information in this Current Report on Form 8-K, including Exhibit 100, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01   Financial Statements and Exhibits
(d)   Exhibits.
    The following exhibits are furnished herewith:
  100   The following financial statements from E. I. du Pont de Nemours and Company’s Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2008, filed on October 28, 2008, formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Income Statements for the three and nine months ended September 30, 2008 and 2007, (ii) the Condensed Consolidated Balance Sheets as of September 30, 2008 and December 31, 2007, (iii) the Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2008 and 2007, and (iv) the Notes to the Consolidated Financial Statements.

2


 

SIGNATURE
     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
  E. I. DU PONT DE NEMOURS AND COMPANY
(Registrant)
 
 
  /s/ Barry J. Niziolek    
  Barry J. Niziolek   
  Vice President and Controller   
 
October 28, 2008

3

EX-100.INS 2 dd-20080930.xml INSTANCE DOCUMENT xxxxx 2006-12-31 xxxxx 2007-12-31 xxxxx 2008-07-01 2008-09-30 xxxxx 2008-01-01 2008-09-30 xxxxx 2007-07-01 2007-09-30 xxxxx 2007-01-01 2007-09-30 xxxxx 2008-09-30 xxxxx 2007-09-30 xbrli:shares xbrli:pure iso4217:USD 163000000 226000000 16357000000 5161000000 18298000000 5916000000 <html><P class="MsoNormal"><A name="note12"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">Note 12. </SPAN></B></A><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"><SPAN style="mso-spacerun: yes"></SPAN>Employee Benefits <BR></SPAN></B><SPAN style="FONT-FAMILY: Arial">The following sets forth the components of the company's net periodic benefit credit for pensions:</SPAN></P> <P class="MsoHeader" style="tab-stops: 243.0pt">&nbsp;</P> <P class="MsoHeader" style="tab-stops: 243.0pt"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN></P> <P class="MsoHeader" style="tab-stops: .25in 1.25in 2.5in 3.75in"><SPAN style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"> <TABLE style="WIDTH: 387pt; BORDER-COLLAPSE: collapse" cellSpacing="0" cellPadding="0" width="516" border="0" x:str> <COLGROUP> <COL style="WIDTH: 159pt; mso-width-source: userset; mso-width-alt: 7753" width="212"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 48pt" width="64"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 48pt" width="64"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 48pt" width="64"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 48pt" width="64"> <TBODY> <TR style="HEIGHT: 25.5pt; mso-height-source: userset" height="34"> <TD class="xl28" style="WIDTH: 159pt; HEIGHT: 25.5pt" width="212" height="34"></TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl30" style="WIDTH: 105pt" width="140" colSpan="3">Three Months Ended September 30,</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl30" style="WIDTH: 105pt" width="140" colSpan="3">Nine Months Ended September 30,</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl28" style="WIDTH: 159pt; HEIGHT: 12.75pt" width="212" height="17"></TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl29" style="WIDTH: 48pt" width="64" x:num>2008</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl30" style="WIDTH: 48pt" width="64" x:num>2007</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl29" style="WIDTH: 48pt" width="64" x:num>2008</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl30" style="WIDTH: 48pt" width="64" x:num>2007</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl28" style="WIDTH: 159pt; HEIGHT: 12.75pt" width="212" height="17"></TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl28" style="WIDTH: 48pt" width="64"></TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl28" style="WIDTH: 48pt" width="64"></TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl28" style="WIDTH: 48pt" width="64"></TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl28" style="WIDTH: 48pt" width="64"></TD></TR> <TR style="HEIGHT: 13.5pt; mso-height-source: userset" height="18"> <TD class="xl28" style="WIDTH: 159pt; HEIGHT: 13.5pt" width="212" height="18">Service cost</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" x:num="53"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>53 </TD> <TD class="xl24"></TD> <TD class="xl24" x:num="100"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>100 </TD> <TD class="xl24"></TD> <TD class="xl24" x:num="159"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>159 </TD> <TD class="xl24"></TD> <TD class="xl24" x:num="294"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>294 </TD></TR> <TR style="HEIGHT: 13.5pt; mso-height-source: userset" height="18"> <TD class="xl28" style="WIDTH: 159pt; HEIGHT: 13.5pt" width="212" height="18">Interest cost</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl25" x:num="323"><SPAN style="mso-spacerun: yes"></SPAN>323 </TD> <TD class="xl25"></TD> <TD class="xl25" x:num="308"><SPAN style="mso-spacerun: yes"></SPAN>308 </TD> <TD class="xl25"></TD> <TD class="xl25" x:num="971"><SPAN style="mso-spacerun: yes"></SPAN>971 </TD> <TD class="xl25"></TD> <TD class="xl25" x:num="919"><SPAN style="mso-spacerun: yes"></SPAN>919 </TD></TR> <TR style="HEIGHT: 13.5pt; mso-height-source: userset" height="18"> <TD class="xl28" style="WIDTH: 159pt; HEIGHT: 13.5pt" width="212" height="18">Expected return on plan assets</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl25" x:num="-486"><SPAN style="mso-spacerun: yes"></SPAN>(486)</TD> <TD class="xl25"></TD> <TD class="xl25" x:num="-450"><SPAN style="mso-spacerun: yes"></SPAN>(450)</TD> <TD class="xl25"></TD> <TD class="xl25" x:num="-1457"><SPAN style="mso-spacerun: yes"></SPAN>(1,457)</TD> <TD class="xl25"></TD> <TD class="xl25" x:num="-1348"><SPAN style="mso-spacerun: yes"></SPAN>(1,348)</TD></TR> <TR style="HEIGHT: 13.5pt; mso-height-source: userset" height="18"> <TD class="xl28" style="WIDTH: 159pt; HEIGHT: 13.5pt" width="212" height="18">Amortization of unrecognized loss</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl25" x:num="14"><SPAN style="mso-spacerun: yes"></SPAN>14 </TD> <TD class="xl25"></TD> <TD class="xl25" x:num="30"><SPAN style="mso-spacerun: yes"></SPAN>30 </TD> <TD class="xl25"></TD> <TD class="xl25" x:num="42"><SPAN style="mso-spacerun: yes"></SPAN>42 </TD> <TD class="xl25"></TD> <TD class="xl25" x:num="88"><SPAN style="mso-spacerun: yes"></SPAN>88 </TD></TR> <TR style="HEIGHT: 13.5pt; mso-height-source: userset" height="18"> <TD class="xl28" style="WIDTH: 159pt; HEIGHT: 13.5pt" width="212" height="18">Amortization of prior service cost</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl26" x:num="5"><SPAN style="mso-spacerun: yes"></SPAN>5 </TD> <TD class="xl25"></TD> <TD class="xl26" x:num="5"><SPAN style="mso-spacerun: yes"></SPAN>5 </TD> <TD class="xl25"></TD> <TD class="xl26" x:num="14"><SPAN style="mso-spacerun: yes"></SPAN>14 </TD> <TD class="xl25"></TD> <TD class="xl26" x:num="14"><SPAN style="mso-spacerun: yes"></SPAN>14 </TD></TR> <TR style="HEIGHT: 6pt; mso-height-source: userset" height="8"> <TD class="xl28" style="WIDTH: 159pt; HEIGHT: 6pt" width="212" height="8"></TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl25"></TD> <TD class="xl25"></TD> <TD class="xl25"></TD> <TD class="xl25"></TD> <TD class="xl25"></TD> <TD class="xl25"></TD> <TD class="xl25"></TD></TR> <TR style="HEIGHT: 13.5pt" height="18"> <TD class="xl28" style="WIDTH: 159pt; HEIGHT: 13.5pt" width="212" height="18">Net periodic benefit credit</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl27" x:num="-91" x:fmla="=SUM(C4:C8)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>(91)</TD> <TD class="xl24"></TD> <TD class="xl27" x:num="-7" x:fmla="=SUM(E4:E8)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>(7)</TD> <TD class="xl24"></TD> <TD class="xl27" x:num="-271" x:fmla="=SUM(G4:G8)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>(271)</TD> <TD class="xl24"></TD> <TD class="xl27" x:num="-33" x:fmla="=SUM(I4:I8)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>(33)</TD></TR> <TR style="HEIGHT: 5.25pt; mso-height-source: userset" height="7"> <TD style="HEIGHT: 5.25pt" height="7"></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD></TR></TBODY></TABLE> <STYLE> <!--table {mso-displayed-decimal-separator:"\."; mso-displayed-thousand-separator:"\,";} @page {margin:1.0in .75in 1.0in .75in; mso-header-margin:.5in; mso-footer-margin:.5in;} tr {mso-height-source:auto;} col {mso-width-source:auto;} br {mso-data-placement:same-cell;} td {padding-top:1px; padding-right:1px; padding-left:1px; mso-ignore:padding; color:windowtext; font-size:10.0pt; font-weight:400; font-style:normal; text-decoration:none; font-family:Arial; mso-generic-font-family:auto; mso-font-charset:0; mso-number-format:General; text-align:general; vertical-align:bottom; border:none; mso-background-source:auto; mso-pattern:auto; mso-protection:locked visible; white-space:nowrap; mso-rotate:0;} ..xl24 {mso-number-format:"_\(\0022$\0022* \#\,\#\#0_\)\;_\(\0022$\0022* \\\(\#\,\#\#0\\\)\;_\(\0022$\0022* \0022-\0022_\)\;_\(\@_\)";} .xl25 {mso-number-format:"_\(* \#\,\#\#0_\)\;_\(* \\\(\#\,\#\#0\\\)\;_\(* \0022-\0022_\)\;_\(\@_\)";} .xl26 {mso-number-format:"_\(* \#\,\#\#0_\)\;_\(* \\\(\#\,\#\#0\\\)\;_\(* \0022-\0022_\)\;_\(\@_\)"; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none;} ..xl27 {mso-number-format:"_\(\0022$\0022* \#\,\#\#0_\)\;_\(\0022$\0022* \\\(\#\,\#\#0\\\)\;_\(\0022$\0022* \0022-\0022_\)\;_\(\@_\)"; border-top:none; border-right:none; border-bottom:2.0pt double windowtext; border-left:none;} .xl28 {font-family:Arial, sans-serif; mso-font-charset:0; vertical-align:top; white-space:normal;} .xl29 {font-weight:700; font-family:Arial, sans-serif; mso-font-charset:0; text-align:center; vertical-align:top; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none; white-space:normal;} .xl30 {font-family:Arial, sans-serif; mso-font-charset:0; text-align:center; vertical-align:top; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none; white-space:normal;} --> </STYLE> </SPAN></P> <P class="MsoHeader" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; tab-stops: .25in 1.25in 2.5in 3.75in"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">The company disclosed in its Consolidated Financial Statements for the year ended December&nbsp;31, 2007, that it expected to contribute approximately $250 to its pension plans, other than to the principal U.S. pension plan in 2008.<SPAN style="mso-spacerun: yes"> </SPAN>As of September 30, 2008, contributions of $210 have been made to these pension plans and the company anticipates additional contributions during the remainder of 2008 to total approximately $40.</SPAN></P> <P class="MsoHeader" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; tab-stops: .25in 1.25in 2.5in 3.75in"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN>&nbsp;</P> <P class="MsoHeader" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; tab-stops: .25in 1.25in 2.5in 3.75in"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">As previously disclosed, effective January 1, 2008, benefit accrual for covered full service employees under the principal U.S. pension plan was reduced to approximately one-third of the previous rate.<SPAN style="mso-spacerun: yes"> </SPAN>Coincident with this change, company contributions to the principal U.S. defined contribution plan were increased.<SPAN style="mso-spacerun: yes"> </SPAN>Contributions to the principal U.S. defined contribution plan were $143 and $42 for the nine-months ended September 30, 2008 and 2007, respectively.</SPAN></P> <P class="MsoHeader" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; tab-stops: .25in 1.25in 2.5in 3.75in"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN>&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">The following sets forth the components of the company's net periodic benefit cost for other long-term employee benefits:</SPAN></P> <P class="MsoNormal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN></P> <P class="MsoNormal"><SPAN style="FONT-SIZE: 5pt; FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN>&nbsp;</P> <P class="MsoNormal"><SPAN style="FONT-SIZE: 5pt; FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"> <TABLE style="WIDTH: 387pt; BORDER-COLLAPSE: collapse" cellSpacing="0" cellPadding="0" width="516" border="0" x:str> <COLGROUP> <COL style="WIDTH: 159pt; mso-width-source: userset; mso-width-alt: 7753" width="212"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 48pt" width="64"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 48pt" width="64"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 48pt" width="64"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 48pt" width="64"> <TBODY> <TR style="HEIGHT: 25.5pt; mso-height-source: userset" height="34"> <TD class="xl28" style="WIDTH: 159pt; HEIGHT: 25.5pt" width="212" height="34"></TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl30" style="WIDTH: 105pt" width="140" colSpan="3">Three Months Ended September 30,</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl30" style="WIDTH: 105pt" width="140" colSpan="3">Nine Months Ended September 30,</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl28" style="WIDTH: 159pt; HEIGHT: 12.75pt" width="212" height="17"></TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl29" style="WIDTH: 48pt" width="64" x:num>2008</TD> <TD class="xl31" style="WIDTH: 9pt" width="12"></TD> <TD class="xl30" style="WIDTH: 48pt" width="64" x:num>2007</TD> <TD class="xl31" style="WIDTH: 9pt" width="12"></TD> <TD class="xl29" style="WIDTH: 48pt" width="64" x:num>2008</TD> <TD class="xl31" style="WIDTH: 9pt" width="12"></TD> <TD class="xl30" style="WIDTH: 48pt" width="64" x:num>2007</TD></TR> <TR style="HEIGHT: 13.5pt; mso-height-source: userset" height="18"> <TD class="xl28" style="WIDTH: 159pt; HEIGHT: 13.5pt" width="212" height="18">Service cost</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" x:num="7"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>7 </TD> <TD class="xl24"></TD> <TD class="xl24" x:num="8"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>8 </TD> <TD class="xl24"></TD> <TD class="xl24" x:num="21"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>21 </TD> <TD class="xl24"></TD> <TD class="xl24" x:num="25"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>25 </TD></TR> <TR style="HEIGHT: 13.5pt; mso-height-source: userset" height="18"> <TD class="xl28" style="WIDTH: 159pt; HEIGHT: 13.5pt" width="212" height="18">Interest cost</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl25" x:num="56"><SPAN style="mso-spacerun: yes"></SPAN>56 </TD> <TD class="xl25"></TD> <TD class="xl25" x:num="61"><SPAN style="mso-spacerun: yes"></SPAN>61 </TD> <TD class="xl25"></TD> <TD class="xl25" x:num="170"><SPAN style="mso-spacerun: yes"></SPAN>170 </TD> <TD class="xl25"></TD> <TD class="xl25" x:num="181"><SPAN style="mso-spacerun: yes"></SPAN>181 </TD></TR> <TR style="HEIGHT: 13.5pt; mso-height-source: userset" height="18"> <TD class="xl28" style="WIDTH: 159pt; HEIGHT: 13.5pt" width="212" height="18">Amortization of unrecognized loss</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl25" x:num="8"><SPAN style="mso-spacerun: yes"></SPAN>8 </TD> <TD class="xl25"></TD> <TD class="xl25" x:num="18"><SPAN style="mso-spacerun: yes"></SPAN>18 </TD> <TD class="xl25"></TD> <TD class="xl25" x:num="24"><SPAN style="mso-spacerun: yes"></SPAN>24 </TD> <TD class="xl25"></TD> <TD class="xl25" x:num="54"><SPAN style="mso-spacerun: yes"></SPAN>54 </TD></TR> <TR style="HEIGHT: 13.5pt; mso-height-source: userset" height="18"> <TD class="xl28" style="WIDTH: 159pt; HEIGHT: 13.5pt" width="212" height="18">Amortization of prior service benefit</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl26" x:num="-26"><SPAN style="mso-spacerun: yes"></SPAN>(26)</TD> <TD class="xl25"></TD> <TD class="xl26" x:num="-39"><SPAN style="mso-spacerun: yes"></SPAN>(39)</TD> <TD class="xl25"></TD> <TD class="xl26" x:num="-79"><SPAN style="mso-spacerun: yes"></SPAN>(79)</TD> <TD class="xl25"></TD> <TD class="xl26" x:num="-117"><SPAN style="mso-spacerun: yes"></SPAN>(117)</TD></TR> <TR style="HEIGHT: 6pt; mso-height-source: userset" height="8"> <TD class="xl28" style="WIDTH: 159pt; HEIGHT: 6pt" width="212" height="8"></TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl25"></TD> <TD class="xl25"></TD> <TD class="xl25"></TD> <TD class="xl25"></TD> <TD class="xl25"></TD> <TD class="xl25"></TD> <TD class="xl25"></TD></TR> <TR style="HEIGHT: 13.5pt; mso-height-source: userset" height="18"> <TD class="xl28" style="WIDTH: 159pt; HEIGHT: 13.5pt" width="212" height="18">Net periodic benefit cost</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl27" x:num="45" x:fmla="=SUM(C3:C6)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>45 </TD> <TD class="xl24"></TD> <TD class="xl27" x:num="48" x:fmla="=SUM(E3:E6)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>48 </TD> <TD class="xl24"></TD> <TD class="xl27" x:num="136" x:fmla="=SUM(G3:G6)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>136 </TD> <TD class="xl24"></TD> <TD class="xl27" x:num="143" x:fmla="=SUM(I3:I6)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>143 </TD></TR> <TR style="HEIGHT: 6.75pt; mso-height-source: userset" height="9"> <TD style="HEIGHT: 6.75pt" height="9"></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD></TR></TBODY></TABLE> <STYLE> <!--table {mso-displayed-decimal-separator:"\."; mso-displayed-thousand-separator:"\,";} @page {margin:1.0in .75in 1.0in .75in; mso-header-margin:.5in; mso-footer-margin:.5in;} tr {mso-height-source:auto;} col {mso-width-source:auto;} br {mso-data-placement:same-cell;} td {padding-top:1px; padding-right:1px; padding-left:1px; mso-ignore:padding; color:windowtext; font-size:10.0pt; font-weight:400; font-style:normal; text-decoration:none; font-family:Arial; mso-generic-font-family:auto; mso-font-charset:0; mso-number-format:General; text-align:general; vertical-align:bottom; border:none; mso-background-source:auto; mso-pattern:auto; mso-protection:locked visible; white-space:nowrap; mso-rotate:0;} ..xl24 {mso-number-format:"_\(\0022$\0022* \#\,\#\#0_\)\;_\(\0022$\0022* \\\(\#\,\#\#0\\\)\;_\(\0022$\0022* \0022-\0022_\)\;_\(\@_\)";} .xl25 {mso-number-format:"_\(* \#\,\#\#0_\)\;_\(* \\\(\#\,\#\#0\\\)\;_\(* \0022-\0022_\)\;_\(\@_\)";} .xl26 {mso-number-format:"_\(* \#\,\#\#0_\)\;_\(* \\\(\#\,\#\#0\\\)\;_\(* \0022-\0022_\)\;_\(\@_\)"; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none;} ..xl27 {mso-number-format:"_\(\0022$\0022* \#\,\#\#0_\)\;_\(\0022$\0022* \\\(\#\,\#\#0\\\)\;_\(\0022$\0022* \0022-\0022_\)\;_\(\@_\)"; border-top:none; border-right:none; border-bottom:2.0pt double windowtext; border-left:none;} .xl28 {font-family:Arial, sans-serif; mso-font-charset:0; vertical-align:top; white-space:normal;} .xl29 {font-weight:700; font-family:Arial, sans-serif; mso-font-charset:0; text-align:center; vertical-align:top; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none; white-space:normal;} .xl30 {font-family:Arial, sans-serif; mso-font-charset:0; text-align:center; vertical-align:top; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none; white-space:normal;} ..xl31 {font-family:Arial, sans-serif; mso-font-charset:0; text-align:center; vertical-align:top; white-space:normal;} --> </STYLE> </SPAN></P> <P class="MsoNormal"><SPAN style="FONT-SIZE: 5pt; FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN>&nbsp;</P> <P class="MsoHeader" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; tab-stops: .25in 1.25in 2.5in 3.75in"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">The company disclosed in its Consolidated Financial Statements for the year ended December&nbsp;31, 2007, that it expected to make payments of approximately $315 to its other long-term employee benefit plans in 2008.<SPAN style="mso-spacerun: yes"> </SPAN>Through September 30, 2008, the company has made benefit payments of $236 related to its other long-term employee benefit plans and anticipates additional payments during the remainder of 2008 to total approximately $79.</SPAN></P> <P class="MsoNormal"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN></B>&nbsp;</P> <STYLE> v\:* {behavior:url(#default#VML);} o\:* {behavior:url(#default#VML);} w\:* {behavior:url(#default#VML);} .shape {behavior:url(#default#VML);} st1\:*{behavior:url(#ieooui) } <!-- /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} p.MsoHeader, li.MsoHeader, div.MsoHeader {margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; tab-stops:center 3.0in right 6.0in; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </STYLE> -122000000 -117000000 <html><P class="MsoNormal"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">Note 14.<SPAN style="mso-spacerun: yes"> </SPAN>Hurricane Charges</SPAN></B></P> <P class="MsoNormal"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN></B>&nbsp;</P><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman; mso-fareast-font-family: Times New Roman; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA">Results of operations in the third quarter of 2008 were affected by two major hurricanes, Ike and Gustav, that struck the Gulf Coast of the United States.<SPAN style="mso-spacerun: yes"> </SPAN>As a result, the company recorded a charge of $227 in the third quarter primarily related to the required clean-up and restoration of manufacturing operations, as well as the write-off of inventory and plant assets that were damaged as a result of the hurricanes.<SPAN style="mso-spacerun: yes"> </SPAN>Hurricane charges reduced segment earnings as follows:<SPAN style="mso-spacerun: yes"> </SPAN>Agriculture &amp; Nutrition - $4; Electronic &amp; Communication Technologies - $2; Performance Materials - $216; and Safety &amp; Protection - $5.<SPAN style="mso-spacerun: yes"> </SPAN>These charges are included in cost of goods sold and other operating charges in the Consolidated Income Statement.</SPAN> <STYLE> st1\:*{behavior:url(#ieooui) } <!-- /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </STYLE> 564000000 683000000 176000000 197000000 <html><P class="MsoNormal" style="MARGIN-BOTTOM: 3pt"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">Interim Financial Statements</SPAN></B></P><SPAN style="FONT-FAMILY: Arial"> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) for interim financial information and the instructions to Form&nbsp;10-Q and Rule&nbsp;10-01 of Regulation&nbsp;S-X.<SPAN style="mso-spacerun: yes"> </SPAN>In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the results for interim periods have been included.<SPAN style="mso-spacerun: yes"> </SPAN>Results for interim periods should not be considered indicative of results for a full year.<SPAN style="mso-spacerun: yes"> </SPAN>These interim Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto contained in the company's Annual Report on Form&nbsp;10-K for the year ended December 31, 2007 as amended on Form 10-K/A (Amendment No. 1), collectively referred to as the '2007 Annual Report'.<SPAN style="mso-spacerun: yes"> </SPAN>The Consolidated Financial Statements include the accounts of the company and all of its subsidiaries in which a controlling interest is maintained, as well as variable interest entities in which DuPont is considered the primary beneficiary.<SPAN style="mso-spacerun: yes"> </SPAN>Certain reclassifications of prior year's data have been made to conform to current year classifications.</SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; mso-fareast-font-family: Times New Roman; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><BR style="mso-special-character: line-break"><BR style="mso-special-character: line-break"></SPAN> <STYLE> <!-- /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </STYLE> </SPAN> <STYLE> <!-- /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </STYLE> </P> -21000000 -33000000 1045000000 365000000 1057000000 420000000 199000000 161000000 150000000 23000000 23440000000 7040000000 25766000000 7717000000 20190000000 6410000000 22414000000 7247000000 3172000000 2942000000 3823000000 3329000000 -794000000 -959000000 8179000000 8368000000 34131000000 38128000000 13160000000 16062000000 1814000000 1209000000 1305000000 1993000000 -605000000 688000000 <html><P class="MsoHeader" style="tab-stops: ..5in"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">Note 9.<SPAN style="mso-spacerun: yes"> </SPAN>Commitments and Contingent Liabilities <BR style="mso-special-character: line-break"><BR style="mso-special-character: line-break"></SPAN></B><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN></B></P> <P class="10KHeading2"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Guarantees</SPAN></P> <P class="10KHeading3" style="MARGIN-BOTTOM: 6pt"><U><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Product Warranty Liability</SPAN></U></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial; LETTER-SPACING: -0.1pt">The company warrants that </SPAN><SPAN style="FONT-FAMILY: Arial">its products meet standard specifications. The company's product warranty liability was $26 and $23 as of September 30, 2008 and December 31, 2007, respectively.<SPAN style="mso-spacerun: yes"> </SPAN>Estimates for warranty costs are based primarily on historical claim experience.</SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; tab-stops: -.5in; mso-hyphenate: none"><SPAN style="FONT-FAMILY: Arial; LETTER-SPACING: -0.1pt"></SPAN>&nbsp;</P> <P class="10KHeading3" style="MARGIN-BOTTOM: 6pt"><U><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Indemnifications</SPAN></U></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; tab-stops: -.5in; mso-hyphenate: none"><SPAN style="FONT-FAMILY: Arial; LETTER-SPACING: -0.1pt">In connection with acquisitions and divestitures, the company has indemnified respective parties against certain liabilities that may arise in connection with these transactions and business activities prior to the completion of the transaction.<SPAN style="mso-spacerun: yes"> </SPAN>The term of these indemnifications, which typically pertain to environmental, tax and product liabilities, is generally indefinite.<SPAN style="mso-spacerun: yes"> </SPAN>In addition, the company indemnifies its duly elected or appointed directors and officers to the fullest extent permitted by Delaware law, against liabilities incurred as a result of their activities for the company, such as adverse judgments relating to litigation matters.<SPAN style="mso-spacerun: yes"> </SPAN>If the indemnified party were to incur a liability or have a liability increase as a result of a successful claim, pursuant to the terms of the indemnification, the company would be required to reimburse the indemnified party.<SPAN style="mso-spacerun: yes"> </SPAN>The maximum amount of potential future payments is generally unlimited.<SPAN style="mso-spacerun: yes"> </SPAN>The carrying amount recorded for all indemnifications as of September 30, 2008 and December 31, 2007 was $95 and $101, respectively.<SPAN style="mso-spacerun: yes"> </SPAN>Although it is reasonably possible that future payments may exceed amounts accrued, due to the nature of indemnified items, it is not possible to make a reasonable estimate of the maximum potential loss or range of loss.<SPAN style="mso-spacerun: yes"> </SPAN>No assets are held as collateral and no specific recourse provisions exist.</SPAN></P> <P class="MsoNormal" style="tab-stops: -.5in; mso-hyphenate: none"><SPAN style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; LETTER-SPACING: -0.1pt"></SPAN>&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN style="COLOR: black; FONT-FAMILY: Arial; mso-fareast-font-family: Batang; mso-fareast-language: KO">In connection with the sale of the majority of the net assets of Textiles and Interiors, the company indemnified the purchasers, subsidiaries of Koch Industries, Inc. (INVISTA), against certain liabilities primarily related to taxes, legal and environmental matters and other representations and warranties under the Purchase and Sale Agreement. The estimated fair value of the indemnity obligations under the Purchase and Sale Agreement was $70 and was included in the indemnifications balance of $95 at September 30, 2008. Under the Purchase and Sale Agreement, the company's total indemnification obligation for the majority of the representations and warranties cannot exceed $1,400. The other indemnities are not subject to this limit.<SPAN style="mso-spacerun: yes"> </SPAN>In March 2008, INVISTA filed suit in the Southern District of New York alleging that certain representations and warranties in the Purchase and Sale Agreement were breached and, therefore, that DuPont is obligated to indemnify it. DuPont disagrees with the extent and value of INVISTA's claims. DuPont has not changed its estimate of its total indemnification obligation under the Purchase and Sale Agreement as a result of the lawsuit.</SPAN></P> <P class="MsoNormal" style="tab-stops: -.5in; mso-hyphenate: none"><I><SPAN style="FONT-FAMILY: Arial; LETTER-SPACING: -0.1pt"></SPAN></I>&nbsp;</P> <P class="10KHeading3" style="MARGIN-BOTTOM: 6pt"><U><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Obligations for Equity Affiliates&nbsp;&amp; Others</SPAN></U></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; tab-stops: -.5in; mso-hyphenate: none"><SPAN style="FONT-FAMILY: Arial; LETTER-SPACING: -0.1pt">The company has directly guaranteed various debt obligations under agreements with third parties related to equity affiliates, customers, suppliers and other affiliated and unaffiliated companies.<SPAN style="mso-spacerun: yes"> </SPAN>At September 30, 2008, the company had directly guaranteed $611 of such obligations, and $121 relating to guarantees of historical obligations for divested subsidiaries and affiliates.<SPAN style="mso-spacerun: yes"> </SPAN>This represents the maximum potential amount of future (undiscounted) payments that the company could be required to make under the guarantees.<SPAN style="mso-spacerun: yes"> </SPAN>The company would be required to perform on these guarantees in the event of default by the guaranteed party.<SPAN style="mso-spacerun: yes"> </SPAN>At September 30, 2008 and December 31, 2007, a liability of $134 and $135, respectively, was recorded for these obligations, principally related to obligations of the company's polyester films joint venture which are guaranteed by the company. </SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; tab-stops: -.5in; mso-hyphenate: none; mso-margin-bottom-alt: auto"><SPAN style="FONT-FAMILY: Arial; LETTER-SPACING: -0.1pt"></SPAN>&nbsp;</P><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; LETTER-SPACING: -0.1pt; mso-fareast-font-family: Times New Roman; mso-fareast-language: EN-US; mso-ansi-language: EN-US; mso-bidi-language: AR-SA"><BR style="PAGE-BREAK-BEFORE: always" clear="all"></SPAN> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; tab-stops: -.5in; mso-hyphenate: none; mso-margin-bottom-alt: auto"><SPAN style="FONT-FAMILY: Arial; LETTER-SPACING: -0.1pt">In certain cases, the company has recourse to assets held as collateral, as well as personal guarantees from customers and suppliers.<SPAN style="mso-spacerun: yes"> </SPAN>Assuming liquidation, these assets are estimated to cover approximately 28 percent of the $276 of guaranteed obligations of customers and suppliers.<SPAN style="mso-spacerun: yes"> </SPAN>Set forth below are the company's guaranteed obligations at September 30, 2008:</SPAN></P> <P class="10KHeading3" style="MARGIN-BOTTOM: 6pt; mso-hyphenate: auto; mso-pagination: none"><SPAN style="FONT-FAMILY: Arial"><U></U></SPAN></P> <P class="10KHeading3" style="MARGIN-BOTTOM: 6pt; mso-hyphenate: auto; mso-pagination: none"><U><SPAN style="FONT-FAMILY: Arial"><SPAN style="TEXT-DECORATION: none"> <TABLE style="WIDTH: 443pt; BORDER-COLLAPSE: collapse" cellSpacing="0" cellPadding="0" width="590" border="0" x:str> <COLGROUP> <COL style="WIDTH: 156pt; mso-width-source: userset; mso-width-alt: 7606" width="208"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 50pt; mso-width-source: userset; mso-width-alt: 2413" width="66"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 48pt" width="64"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 48pt" width="64"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 48pt" width="64"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 48pt" width="64"> <TBODY> <TR style="HEIGHT: 25.5pt" height="34"> <TD class="xl30" style="WIDTH: 156pt; HEIGHT: 25.5pt" width="208" height="34">&nbsp;</TD> <TD class="xl30" style="WIDTH: 9pt" width="12">&nbsp;</TD> <TD class="xl31" style="WIDTH: 50pt" width="66">&nbsp;</TD> <TD class="xl31" style="WIDTH: 9pt" width="12">&nbsp;</TD> <TD class="xl31" style="WIDTH: 48pt" width="64">&nbsp;</TD> <TD class="xl31" style="WIDTH: 9pt" width="12">&nbsp;</TD> <TD class="xl45" style="WIDTH: 48pt" width="64">Short- Term</TD> <TD class="xl32" style="WIDTH: 9pt" width="12">&nbsp;</TD> <TD class="xl33" style="WIDTH: 48pt" width="64">Long- Term</TD> <TD class="xl32" style="WIDTH: 9pt" width="12">&nbsp;</TD> <TD class="xl33" style="WIDTH: 48pt" width="64">Total</TD></TR> <TR style="HEIGHT: 29.25pt; mso-height-source: userset" height="39"> <TD class="xl67" style="WIDTH: 272pt; HEIGHT: 29.25pt" width="362" colSpan="5" height="39">Obligations for customers, suppliers and other affiliated and unaffiliated companies<FONT class="font9"><SUP>1, 2</SUP></FONT><FONT class="font5">:</FONT></TD> <TD></TD> <TD class="xl46" style="WIDTH: 48pt" width="64">&nbsp;</TD> <TD class="xl25" style="WIDTH: 9pt" width="12"></TD> <TD class="xl42" style="WIDTH: 48pt" width="64">&nbsp;</TD> <TD class="xl25" style="WIDTH: 9pt" width="12"></TD> <TD class="xl42" style="WIDTH: 48pt" width="64">&nbsp;</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl67" style="WIDTH: 272pt; HEIGHT: 12.75pt" width="362" colSpan="5" height="17"><SPAN style="mso-spacerun: yes"></SPAN>Bank borrowings (terms up to 5 years)</TD> <TD></TD> <TD class="xl47" x:num="425"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>425 </TD> <TD class="xl29"></TD> <TD class="xl43" x:num="140"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>140 </TD> <TD class="xl29"></TD> <TD class="xl43" x:num="565" x:fmla="=SUM(G3:I3)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>565 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl57" style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan="5" height="17"><SPAN style="mso-spacerun: yes"></SPAN>Leases on equipment and facilities (terms up to 2 years)</TD> <TD class="xl56">&nbsp;</TD> <TD class="xl39" x:num="18"><SPAN style="mso-spacerun: yes"></SPAN>18 </TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl39" x:num="0"><SPAN style="mso-spacerun: yes"></SPAN>- </TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl39" x:num="18" x:fmla="=SUM(G4:I4)"><SPAN style="mso-spacerun: yes"></SPAN>18 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl67" style="WIDTH: 272pt; HEIGHT: 12.75pt" width="362" colSpan="5" height="17">Obligations for equity affiliates<FONT class="font8"><SUP>2</SUP></FONT><FONT class="font5">:</FONT></TD> <TD></TD> <TD class="xl49" style="WIDTH: 48pt" width="64">&nbsp;</TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl44" style="WIDTH: 48pt" width="64">&nbsp;</TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl44" style="WIDTH: 48pt" width="64">&nbsp;</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl67" style="WIDTH: 272pt; HEIGHT: 12.75pt" width="362" colSpan="5" height="17"><SPAN style="mso-spacerun: yes"></SPAN>Bank borrowings (terms up to 5 years)</TD> <TD></TD> <TD class="xl48" x:num="5"><SPAN style="mso-spacerun: yes"></SPAN>5 </TD> <TD class="xl27"></TD> <TD class="xl39" x:num="19"><SPAN style="mso-spacerun: yes"></SPAN>19 </TD> <TD class="xl27"></TD> <TD class="xl39" x:num="24" x:fmla="=SUM(G6:I6)"><SPAN style="mso-spacerun: yes"></SPAN>24 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl67" style="WIDTH: 272pt; HEIGHT: 12.75pt" width="362" colSpan="5" height="17"><SPAN style="mso-spacerun: yes"></SPAN>Leases on equipment and facilities (terms of 1 to 2 years)</TD> <TD></TD> <TD class="xl50" x:num="0"><SPAN style="mso-spacerun: yes"></SPAN>- </TD> <TD class="xl27"></TD> <TD class="xl41" x:num="4"><SPAN style="mso-spacerun: yes"></SPAN>4 </TD> <TD class="xl27"></TD> <TD class="xl39" x:num="4" x:fmla="=SUM(G7:I7)"><SPAN style="mso-spacerun: yes"></SPAN>4 </TD></TR> <TR style="HEIGHT: 29.25pt; mso-height-source: userset" height="39"> <TD class="xl68" style="WIDTH: 272pt; HEIGHT: 29.25pt" width="362" colSpan="5" height="39">Total obligations for customers, suppliers, other affiliated and unaffiliated companies and equity affiliates</TD> <TD class="xl31">&nbsp;</TD> <TD class="xl51" style="BORDER-TOP: medium none" x:num="448" x:fmla="=SUM(G3:G7)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>448 </TD> <TD class="xl34">&nbsp;</TD> <TD class="xl35" style="BORDER-TOP: medium none" x:num="163" x:fmla="=SUM(I3:I7)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>163 </TD> <TD class="xl34">&nbsp;</TD> <TD class="xl35" x:num="611" x:fmla="=SUM(K3:K7)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>611 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl68" style="WIDTH: 272pt; HEIGHT: 12.75pt" width="362" colSpan="5" height="17">Obligations for divested subsidiaries and affiliates<FONT class="font8"><SUP>3</SUP></FONT><FONT class="font5">:</FONT></TD> <TD class="xl36" style="BORDER-TOP: medium none">&nbsp;</TD> <TD class="xl52" style="BORDER-TOP: medium none; WIDTH: 48pt" width="64">&nbsp;</TD> <TD class="xl37" style="BORDER-TOP: medium none; WIDTH: 9pt" width="12">&nbsp;</TD> <TD class="xl38" style="BORDER-TOP: medium none; WIDTH: 48pt" width="64">&nbsp;</TD> <TD class="xl37" style="BORDER-TOP: medium none; WIDTH: 9pt" width="12">&nbsp;</TD> <TD class="xl38" style="BORDER-TOP: medium none; WIDTH: 48pt" width="64">&nbsp;</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl67" style="WIDTH: 272pt; HEIGHT: 12.75pt" width="362" colSpan="5" height="17"><SPAN style="mso-spacerun: yes"></SPAN>Conoco (terms from 1 to 18 years)</TD> <TD></TD> <TD class="xl48" x:num="2"><SPAN style="mso-spacerun: yes"></SPAN>2 </TD> <TD class="xl27"></TD> <TD class="xl39" x:num="16"><SPAN style="mso-spacerun: yes"></SPAN>16 </TD> <TD class="xl27"></TD> <TD class="xl39" x:num="18" x:fmla="=SUM(G10:I10)"><SPAN style="mso-spacerun: yes"></SPAN>18 </TD></TR> <TR style="HEIGHT: 30pt; mso-height-source: userset" height="40"> <TD class="xl71" style="WIDTH: 272pt; HEIGHT: 30pt" width="362" colSpan="5" height="40"><SPAN style="mso-spacerun: yes"></SPAN>Consolidation Coal Sales Company (terms from 2 to <BR><SPAN style="mso-spacerun: yes"></SPAN>3 years)</TD> <TD class="xl40">&nbsp;</TD> <TD class="xl50" x:num="0"><SPAN style="mso-spacerun: yes"></SPAN>- </TD> <TD class="xl24">&nbsp;</TD> <TD class="xl41" x:num="103"><SPAN style="mso-spacerun: yes"></SPAN>103 </TD> <TD class="xl24">&nbsp;</TD> <TD class="xl39" x:num="103" x:fmla="=SUM(G11:I11)"><SPAN style="mso-spacerun: yes"></SPAN>103 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl71" style="WIDTH: 272pt; HEIGHT: 12.75pt" width="362" colSpan="5" height="17">Total obligations for divested subsidiaries and affiliates</TD> <TD class="xl31" style="BORDER-TOP: medium none">&nbsp;</TD> <TD class="xl53" style="BORDER-TOP: medium none" x:num="2" x:fmla="=SUM(G10:G11)"><SPAN style="mso-spacerun: yes"></SPAN>2 </TD> <TD class="xl54" style="BORDER-TOP: medium none">&nbsp;</TD> <TD class="xl55" style="BORDER-TOP: medium none" x:num="119" x:fmla="=SUM(I10:I11)"><SPAN style="mso-spacerun: yes"></SPAN>119 </TD> <TD class="xl54" style="BORDER-TOP: medium none">&nbsp;</TD> <TD class="xl55" x:num="121" x:fmla="=SUM(K10:K11)"><SPAN style="mso-spacerun: yes"></SPAN>121 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl37" style="BORDER-TOP: medium none; WIDTH: 156pt; HEIGHT: 12.75pt" width="208" height="17">&nbsp;</TD> <TD class="xl37" style="BORDER-TOP: medium none; WIDTH: 9pt" width="12">&nbsp;</TD> <TD class="xl36" style="BORDER-TOP: medium none">&nbsp;</TD> <TD class="xl36" style="BORDER-TOP: medium none">&nbsp;</TD> <TD class="xl36" style="BORDER-TOP: medium none">&nbsp;</TD> <TD class="xl36" style="BORDER-TOP: medium none">&nbsp;</TD> <TD class="xl58" style="BORDER-TOP: medium none; WIDTH: 48pt" width="64">&nbsp;</TD> <TD class="xl59" style="BORDER-TOP: medium none; WIDTH: 9pt" width="12">&nbsp;</TD> <TD class="xl60" style="BORDER-TOP: medium none; WIDTH: 48pt" width="64">&nbsp;</TD> <TD class="xl59" style="BORDER-TOP: medium none; WIDTH: 9pt" width="12">&nbsp;</TD> <TD class="xl60" style="BORDER-TOP: medium none; WIDTH: 48pt" width="64">&nbsp;</TD></TR> <TR style="HEIGHT: 13.5pt" height="18"> <TD class="xl69" style="WIDTH: 272pt; HEIGHT: 13.5pt" width="362" colSpan="5" height="18">&nbsp;</TD> <TD class="xl61">&nbsp;</TD> <TD class="xl64" x:num="450" x:fmla="=G12+G8"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>450 </TD> <TD class="xl65" style="BORDER-LEFT: medium none" align="middle" x:num="0" x:fmla="=H12+H8"></TD> <TD class="xl28" x:num="282" x:fmla="=I12+I8"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>282 </TD> <TD class="xl65" align="middle" x:num="0" x:fmla="=J12+J8"></TD> <TD class="xl66" x:num="732" x:fmla="=K12+K8"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>732 </TD></TR> <TR style="HEIGHT: 7.5pt; mso-height-source: userset" height="10"> <TD style="HEIGHT: 7.5pt" height="10"></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl62" style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan="7" height="17"><SUP>1</SUP><FONT class="font6"> Existing guarantees for customers, suppliers, and other unaffiliated companies arose as part of contractual agreements.</FONT></TD> <TD class="xl63"></TD> <TD class="xl63"></TD> <TD class="xl63"></TD> <TD class="xl63"></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl62" style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan="7" height="17"><SUP>2</SUP><FONT class="font6"> Existing guarantees for equity affiliates and other affiliated companies arose for liquidity needs in normal operations.</FONT></TD> <TD class="xl63"></TD> <TD class="xl63"></TD> <TD class="xl63"></TD> <TD class="xl63"></TD></TR> <TR style="HEIGHT: 57.75pt; mso-height-source: userset" height="77"> <TD class="xl70" style="WIDTH: 443pt; HEIGHT: 57.75pt" width="590" colSpan="11" height="77"><SUP>3 </SUP><FONT class="font7">The company has guaranteed certain obligations and liabilities related to divested subsidiaries, including Conoco and its subsidiaries and affiliates and Consolidation Coal Sales Company. The Restructuring, Transfer and Separation Agreement between DuPont and Conoco requires Conoco to use its best efforts to have Conoco, or any of its subsidiaries, substitute for DuPont. Conoco and Consolidation Coal Sales Company have indemnified the company for any liabilities the company may incur pursuant to these guarantees.</FONT></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD style="HEIGHT: 12.75pt" height="17"></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD></TR></TBODY></TABLE> <STYLE> <!--table {mso-displayed-decimal-separator:"\."; mso-displayed-thousand-separator:"\,";} @page {margin:1.0in .75in 1.0in .75in; mso-header-margin:.5in; mso-footer-margin:.5in;} .font5 {color:windowtext; font-size:10.0pt; font-weight:400; font-style:normal; text-decoration:none; font-family:Arial, sans-serif; mso-font-charset:0;} .font6 {color:windowtext; font-size:8.0pt; font-weight:400; font-style:normal; text-decoration:none; font-family:Arial; mso-generic-font-family:auto; mso-font-charset:0;} .font7 {color:windowtext; font-size:8.0pt; font-weight:400; font-style:normal; text-decoration:none; font-family:Arial, sans-serif; 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border-bottom:.5pt solid windowtext; border-left:none;} ..xl56 {border-top:none; border-right:.5pt solid windowtext; border-bottom:none; border-left:none;} .xl57 {font-family:Arial, sans-serif; mso-font-charset:0; text-align:left; vertical-align:top;} .xl58 {font-family:Arial, sans-serif; mso-font-charset:0; text-align:center; vertical-align:top; border-top:.5pt solid windowtext; border-right:.5pt solid windowtext; border-bottom:none; border-left:.5pt solid windowtext; white-space:normal;} .xl59 {font-family:Arial, sans-serif; mso-font-charset:0; text-align:center; vertical-align:top; border-top:.5pt solid windowtext; border-right:none; border-bottom:none; border-left:none; white-space:normal;} .xl60 {font-family:Arial, sans-serif; mso-font-charset:0; text-align:center; vertical-align:top; border-top:.5pt solid windowtext; border-right:.5pt solid windowtext; border-bottom:none; border-left:none; white-space:normal;} ..xl61 {border-top:none; border-right:none; border-bottom:2.0pt double windowtext; border-left:none;} .xl62 {font-size:8.0pt; font-family:Arial, sans-serif; mso-font-charset:0;} .xl63 {font-size:8.0pt;} .xl64 {font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"_\(\0022$\0022* \#\,\#\#0_\)\;_\(\0022$\0022* \\\(\#\,\#\#0\\\)\;_\(\0022$\0022* \0022-\0022_\)\;_\(\@_\)"; border-top:none; border-right:.5pt solid windowtext; border-bottom:2.0pt double windowtext; border-left:.5pt solid windowtext;} .xl65 {font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"_\(\0022$\0022* \#\,\#\#0_\)\;_\(\0022$\0022* \\\(\#\,\#\#0\\\)\;_\(\0022$\0022* \0022-\0022_\)\;_\(\@_\)"; border-top:none; border-right:none; border-bottom:2.0pt double windowtext; border-left:.5pt solid windowtext;} .xl66 {font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"_\(\0022$\0022* \#\,\#\#0_\)\;_\(\0022$\0022* \\\(\#\,\#\#0\\\)\;_\(\0022$\0022* \0022-\0022_\)\;_\(\@_\)"; border-top:none; border-right:.5pt solid windowtext; border-bottom:2.0pt double windowtext; border-left:none;} .xl67 {font-family:Arial, sans-serif; mso-font-charset:0; text-align:left; vertical-align:top; white-space:normal;} ..xl68 {font-family:Arial, sans-serif; mso-font-charset:0; text-align:left; vertical-align:top; border-top:.5pt solid windowtext; border-right:none; border-bottom:none; border-left:none; white-space:normal;} .xl69 {font-family:Arial, sans-serif; mso-font-charset:0; text-align:left; vertical-align:top; border-top:none; border-right:none; border-bottom:2.0pt double windowtext; border-left:none; white-space:normal;} .xl70 {font-size:8.0pt; font-family:Arial, sans-serif; mso-font-charset:0; white-space:normal;} .xl71 {font-family:Arial, sans-serif; mso-font-charset:0; text-align:left; vertical-align:top; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none; white-space:normal;} --> </STYLE> </SPAN></SPAN></U></P> <P class="10KHeading3" style="MARGIN-BOTTOM: 6pt; mso-hyphenate: auto; mso-pagination: none"><U><SPAN style="FONT-FAMILY: Arial">Master Operating Leases</SPAN></U></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">As of September 30, 2008, the company had one master operating lease program relating to short-lived equipment.<SPAN style="mso-spacerun: yes"> </SPAN>In connection with this master operating lease program, the company had residual value guarantees in the amount of $102 at September 30, 2008.<SPAN style="mso-spacerun: yes"> </SPAN>The guarantee amounts are tied to the unamortized lease values of the assets under synthetic lease and are due should the company decide neither to renew these leases nor to exercise its purchase option.<SPAN style="mso-spacerun: yes"> </SPAN>At September 30, 2008, the company had no liabilities recorded for these obligations.<SPAN style="mso-spacerun: yes"> </SPAN>Any residual value guarantee amounts paid to the lessor may be recovered by the company from the sale of the assets to a third party.</SPAN></P> <P class="MsoNormal" style="tab-stops: -.5in; mso-hyphenate: none"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial"></SPAN></B>&nbsp;</P><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-fareast-font-family: Times New Roman; mso-fareast-language: EN-US; mso-ansi-language: EN-US; mso-bidi-language: AR-SA"><BR style="PAGE-BREAK-BEFORE: always" clear="all"></SPAN></B> <P class="MsoNormal" style="tab-stops: -.5in; mso-hyphenate: none"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial">Litigation </SPAN></B></P> <P class="10KHeading3"><U><SPAN style="FONT-SIZE: 6pt; FONT-FAMILY: Arial"><SPAN style="TEXT-DECORATION: none"></SPAN></SPAN></U>&nbsp;</P> <P class="10KHeading3" style="MARGIN-BOTTOM: 6pt"><U><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Benlate<SUP>(R)</SUP></SPAN></U></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">In 1991, DuPont began receiving claims by growers that use of Benlate<SUP>(R)</SUP> 50 DF fungicide had caused crop damage.<SPAN style="mso-spacerun: yes"> </SPAN>DuPont has since been served with thousands of lawsuits, most of which have been disposed of through trial, dismissal or settlement.<SPAN style="mso-spacerun: yes"> </SPAN>The status of Benlate<SUP>(R)</SUP> cases is indicated in the table below:</SPAN></P> <P class="10KHeading3"><SPAN style="FONT-STYLE: normal; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-bidi-font-style: italic"></SPAN>&nbsp;</P> <P class="10KHeading3"><SPAN style="FONT-STYLE: normal; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-bidi-font-style: italic"> <TABLE style="WIDTH: 321pt; BORDER-COLLAPSE: collapse" cellSpacing="0" cellPadding="0" width="428" border="0" x:str> <COLGROUP> <COL style="WIDTH: 48pt" span="5" width="64"> <COL style="WIDTH: 81pt; mso-width-source: userset; mso-width-alt: 3949" width="108"> <TBODY> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl24" style="WIDTH: 48pt; HEIGHT: 12.75pt" width="64" height="17">&nbsp;</TD> <TD class="xl24" style="WIDTH: 48pt" width="64">&nbsp;</TD> <TD class="xl24" style="WIDTH: 48pt" width="64">&nbsp;</TD> <TD class="xl24" style="WIDTH: 48pt" width="64">&nbsp;</TD> <TD class="xl25" style="WIDTH: 48pt" width="64">&nbsp;</TD> <TD class="xl26" style="WIDTH: 81pt" width="108">Number of Cases</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl24" style="HEIGHT: 12.75pt" height="17">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl24" style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan="3" height="17">Balance at December 31, 2007</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl27" x:num="14">14 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl24" style="HEIGHT: 12.75pt" height="17"><SPAN style="mso-spacerun: yes"></SPAN>Filed</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl27">-</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl24" style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan="2" height="17"><SPAN style="mso-spacerun: yes"></SPAN>Resolved</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl28" x:num="-1">(1)</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl24" style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan="3" height="17">Balance at March 31, 2008</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl27" x:num="13">13 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl24" style="HEIGHT: 12.75pt" height="17"><SPAN style="mso-spacerun: yes"></SPAN>Filed</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl27">-</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl24" style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan="2" height="17"><SPAN style="mso-spacerun: yes"></SPAN>Resolved</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl28" x:num="-2">(2)</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl24" style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan="3" height="17">Balance at June 30, 2008</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl27" x:num="11" x:fmla="=F8+F6">11 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl24" style="HEIGHT: 12.75pt" height="17"><SPAN style="mso-spacerun: yes"></SPAN>Filed</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl27">-</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl24" style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan="2" height="17"><SPAN style="mso-spacerun: yes"></SPAN>Resolved</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl28">-</TD></TR> <TR style="HEIGHT: 13.5pt" height="18"> <TD class="xl24" style="HEIGHT: 13.5pt; mso-ignore: colspan" colSpan="3" height="18">Balance at September 30, 2008</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl29" style="BORDER-TOP: medium none" x:num="11">11 </TD></TR> <TR style="HEIGHT: 13.5pt" height="18"> <TD class="xl24" style="HEIGHT: 13.5pt" height="18">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD></TR></TBODY></TABLE> <STYLE> <!--table {mso-displayed-decimal-separator:"\."; mso-displayed-thousand-separator:"\,";} @page {margin:1.0in .75in 1.0in .75in; mso-header-margin:.5in; mso-footer-margin:.5in;} tr {mso-height-source:auto;} col {mso-width-source:auto;} br {mso-data-placement:same-cell;} td {padding-top:1px; padding-right:1px; padding-left:1px; mso-ignore:padding; color:windowtext; font-size:10.0pt; font-weight:400; font-style:normal; text-decoration:none; font-family:Arial; mso-generic-font-family:auto; mso-font-charset:0; mso-number-format:General; text-align:general; vertical-align:bottom; border:none; mso-background-source:auto; mso-pattern:auto; mso-protection:locked visible; white-space:nowrap; mso-rotate:0;} ..xl24 {background:white; mso-pattern:auto none;} .xl25 {mso-number-format:"\@"; text-align:center; background:white; mso-pattern:auto none;} .xl26 {mso-number-format:"\@"; text-align:center; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none; background:white; mso-pattern:auto none;} ..xl27 {mso-number-format:"\#\,\#\#0_\)\;\\\(\#\,\#\#0\\\)"; text-align:center; background:white; mso-pattern:auto none;} .xl28 {mso-number-format:"\#\,\#\#0_\)\;\\\(\#\,\#\#0\\\)"; text-align:center; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none; background:white; mso-pattern:auto none;} ..xl29 {mso-number-format:"\#\,\#\#0_\)\;\\\(\#\,\#\#0\\\)"; text-align:center; border-top:.5pt solid windowtext; border-right:none; border-bottom:2.0pt double windowtext; border-left:none; background:white; mso-pattern:auto none;} --> </STYLE> </SPAN></P> <P class="10KHeading3"><SPAN style="FONT-STYLE: normal; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-bidi-font-style: italic"></SPAN>&nbsp;</P> <P class="10KHeading3"><SPAN style="FONT-STYLE: normal; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-bidi-font-style: italic"></SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">At September 30, 2008, there were nine cases pending in Florida state court, involving allegations that Benlate<SUP>(R)</SUP> caused crop damage.<SPAN style="mso-spacerun: yes"> </SPAN>Plaintiffs appealed the court's 2006 dismissal of one of the nine cases for failure to prosecute and the appellate court reinstated the case.<SPAN style="mso-spacerun: yes"> </SPAN>Two of the nine cases, involving twenty-seven Costa Rican fern growers, were tried during the second quarter of 2006 resulting in a $56 judgment against the company, which was reduced to $24 on DuPont's motion.<SPAN style="mso-spacerun: yes"> </SPAN>At trial, the plaintiffs sought damages in the range of $270 to $400.<SPAN style="mso-spacerun: yes"> </SPAN>The plaintiffs and DuPont have appealed the verdict.<SPAN style="mso-spacerun: yes"> </SPAN>DuPont believes that the appeal will be resolved in its favor and, therefore, has not established an accrual relating to the judgment.</SPAN></P> <P class="10KHeading3" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial"></SPAN>&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">At September 30, 2008, there were two shrimp cases in Florida pending against the company.<SPAN style="mso-spacerun: yes"> </SPAN>These cases had been decided in DuPont's favor, but in September 2007, the judge granted plaintiffs' motion for new trial thus reinstating the cases.<SPAN style="mso-spacerun: yes"> </SPAN>The company has appealed. The twenty-six other cases involving damage to shrimp pending against the company in state court in Florida were settled for $2.5 during the second quarter 2007.<SPAN style="mso-spacerun: yes"> </SPAN>Separately, plaintiffs filed a motion seeking sanctions for alleged discovery defaults in all twenty-eight of the cases.<SPAN style="mso-spacerun: yes"> </SPAN>The court denied most of the sanctions sought by plaintiffs, but did impose on DuPont the reasonable and necessary attorney fees incurred by plaintiffs in moving for sanctions.<SPAN style="mso-spacerun: yes"> </SPAN>The company will appeal the ruling once it has been finalized.<SPAN style="mso-spacerun: yes"> </SPAN></SPAN></P> <P class="10KHeading3" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial"></SPAN>&nbsp;</P> <P class="10KHeading3" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-STYLE: normal; FONT-FAMILY: Arial; mso-bidi-font-style: italic">During the first half of 2008, three actions pending against the company were resolved. One reopener and one health effects case were effectively dismissed. Plaintiffs failed in their effort to appeal a second reopener case that had been settled in part for $1.2.</SPAN></P> <P class="10KHeading3" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-STYLE: normal; FONT-FAMILY: Arial; mso-bidi-font-style: italic"></SPAN>&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">The company does not believe that Benlate<SUP>(R)</SUP> caused the damages alleged in each of these cases and denies the allegations of fraud and misconduct.<SPAN style="mso-spacerun: yes"> </SPAN>The company continues to defend itself in ongoing matters.<SPAN style="mso-spacerun: yes"> </SPAN>As of September 30, 2008, the company has incurred costs and expenses of approximately $2,000 associated with these matters.<SPAN style="mso-spacerun: yes"> </SPAN>The company has recovered approximately $275 of its costs and expenses through insurance and does not expect additional insurance recoveries, if any, to be significant.<SPAN style="mso-spacerun: yes"> </SPAN>At September 30, 2008, the company does not have any remaining accruals related to Benlate<SUP>(R)</SUP>.</SPAN></P> <P class="10KHeading3"><U><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt"><SPAN style="TEXT-DECORATION: none"></SPAN></SPAN></U>&nbsp;</P><I><U><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; LETTER-SPACING: -0.1pt; mso-fareast-font-family: Times New Roman; mso-fareast-language: EN-US; mso-ansi-language: EN-US; mso-bidi-language: AR-SA"><BR style="PAGE-BREAK-BEFORE: always" clear="all"></SPAN></U></I> <P class="10KHeading3"><U><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">PFOA </SPAN></U></P> <P class="10KHeading3"><SPAN style="FONT-STYLE: normal; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-bidi-font-style: italic"><SPAN style="mso-spacerun: yes"></SPAN></SPAN></P> <P class="10KHeading3" style="MARGIN-BOTTOM: 3pt"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Environmental Actions Involving the Washington Works Site and Surrounding Area</SPAN></B></P> <P class="10KHeading3" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-STYLE: normal; FONT-FAMILY: Arial; mso-bidi-font-style: italic">In November 2006, DuPont entered into an Order on Consent under the Safe Drinking Water Act (SDWA) with the U.S. Environmental Protection Agency (EPA) establishing a precautionary interim screening level for PFOA (collectively, perfluorooctanoic acids and its salts, including the ammonium salt) of 0.5 parts per billion (ppb) in drinking water sources in the area around the DuPont Washington Works site located in Parkersburg, West Virginia.<SPAN style="mso-spacerun: yes"> </SPAN>As part of the Order on Consent, DuPont conducted surveys, sampling and analytical testing of certain area public and private water systems and installed and is operating water treatment systems in the area. </SPAN></P> <P class="10KHeading3" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial"></SPAN>&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">In late 2005 DuPont and the EPA entered into a Memorandum of Understanding (EPA MOU) that required DuPont to monitor PFOA in the soil, air, water and biota around the Washington Works site.<SPAN style="mso-spacerun: yes"> </SPAN>The data generated in the monitoring process is subject to a third party peer review.<SPAN style="mso-spacerun: yes"> </SPAN>At September 30, 2008, DuPont has accruals of about $0.4 to fund its activities under the EPA MOU and Order on Consent.</SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial"></SPAN>&nbsp;</P> <P class="10KHeading3" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-STYLE: normal; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-bidi-font-style: italic"><SPAN style="mso-spacerun: yes"></SPAN></SPAN><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt"></SPAN></B></P> <P class="10KHeading3" style="MARGIN-BOTTOM: 3pt"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">EPA Administrative Complaints</SPAN></B></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">In July and December 2004, the EPA filed administrative complaints against DuPont alleging that the company failed to comply with the technical reporting requirements of the Toxic Substances Control Act (TSCA) and the Resource Conservation and Recovery Act (RCRA) regarding PFOA.<SPAN style="mso-spacerun: yes"> </SPAN>Under a 2005 agreement settling the matter, the company paid civil fines of $10.25 and will complete two Supplemental Environmental Projects at a total cost of $6.25.</SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial"></SPAN>&nbsp;</P> <P class="10KHeading3" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-STYLE: normal; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-bidi-font-style: italic"><SPAN style="mso-spacerun: yes"></SPAN></SPAN><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt"></SPAN></B></P> <P class="10KHeading3" style="TEXT-JUSTIFY: inter-ideograph; MARGIN-BOTTOM: 3pt; TEXT-ALIGN: justify"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Actions: Drinking Water</SPAN></B></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">In August 2001, a class action, captioned Leach v. DuPont, was filed in West Virginia state court against DuPont and the Lubeck Public Service District.<SPAN style="mso-spacerun: yes"> </SPAN>DuPont uses PFOA as a processing aid to manufacture fluoropolymer resins and dispersions at various sites around the world including its Washington Works plant in West Virginia.<SPAN style="mso-spacerun: yes"> </SPAN>The complaint alleged that residents living near the Washington Works facility had suffered, or may suffer, deleterious health effects from exposure to PFOA in drinking water.<SPAN style="mso-spacerun: yes"> </SPAN>The relief sought included damages for medical monitoring, diminution of property values and punitive damages plus injunctive relief to stop releases of PFOA.<SPAN style="mso-spacerun: yes"> </SPAN>DuPont and attorneys for the class reached a settlement agreement in 2004 and as a result, the company established accruals of $108 in 2004.<SPAN style="mso-spacerun: yes"> </SPAN>The agreement was approved by the Wood County Circuit Court on February 28, 2005 after a fairness hearing.<SPAN style="mso-spacerun: yes"> </SPAN>The settlement binds a class of approximately 80,000 residents.<SPAN style="mso-spacerun: yes"> </SPAN>As defined by the court, the class includes those individuals who have consumed, for at least one year, water containing 0.05 ppb or greater of PFOA from any of six designated public water sources or from sole source private wells.</SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial"></SPAN>&nbsp;</P> <P class="10KHeading3" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial"><SPAN style="mso-spacerun: yes"></SPAN></SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">In July 2005, the company paid the plaintiffs' attorneys' fees and expenses of $23 and made a payment of $70, which class counsel has designated to fund a community health project.<SPAN style="mso-spacerun: yes"> </SPAN>The company is also funding a series of health studies by an independent science panel of experts in the communities exposed to PFOA to evaluate available scientific evidence on whether any probable link exists between exposure to PFOA and human disease.<SPAN style="mso-spacerun: yes"> </SPAN>The company expects the independent science panel to complete these health studies between 2008 and year-end 2011 at a total estimated cost of $24, of which $5 was originally placed in an interest-bearing escrow account.<SPAN style="mso-spacerun: yes"> </SPAN>In addition, the company is providing state-of-the art water treatment systems designed to reduce the level of PFOA in water to six area water districts, including the Little Hocking Water Association (LHWA), until the science panel determines that PFOA does not cause disease or until applicable water standards can be met without such treatment.<SPAN style="mso-spacerun: yes"> </SPAN>The estimated cost of constructing, operating and maintaining these systems is about $21 of which $10 was originally placed in an interest-bearing escrow account.<SPAN style="mso-spacerun: yes"> </SPAN>The final two water treatment systems are expected to be brought online in the fourth quarter 2008.<SPAN style="mso-spacerun: yes"> </SPAN>At September 30, 2008, the accrual balance relating to the funding of the independent science panel health study and the water treatment systems was $16, including $11 in interest bearing escrow accounts.</SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial"></SPAN>&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">The settlement resulted in the dismissal of all claims asserted in the lawsuit except for personal injury claims.<SPAN style="mso-spacerun: yes"> </SPAN>If the independent science panel concludes that no probable link exists between exposure to PFOA and any diseases, then the settlement would also resolve personal injury claims.<SPAN style="mso-spacerun: yes"> </SPAN>If it concludes that a probable link does exist between exposure to PFOA and any diseases, then DuPont would also fund up to $235 for a medical monitoring program to pay for such medical testing.<SPAN style="mso-spacerun: yes"> </SPAN>In this event, plaintiffs would retain their right to pursue personal injury claims.<SPAN style="mso-spacerun: yes"> </SPAN>All other claims in the lawsuit would remain dismissed by the settlement.<SPAN style="mso-spacerun: yes"> </SPAN>DuPont believes that it is remote that the panel will find a probable link.<SPAN style="mso-spacerun: yes"> </SPAN>Therefore, at September 30, 2008, the company had not established any accruals related to medical monitoring or personal injury claims.<SPAN style="mso-spacerun: yes"> </SPAN>However, there can be no assurance as to what the independent science panel will conclude.</SPAN></P> <P class="10KHeading3" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial"></SPAN>&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">In June 2007, the LHWA notified DuPont that it intends to file suit under RCRA alleging "imminent and substantial endangerment to health and or the environment" based on detection of PFOA in its wells.<SPAN style="mso-spacerun: yes"> </SPAN>DuPont denies any such endangerment exists and intends to vigorously defend itself if a lawsuit is filed.</SPAN></P> <P class="10KHeading3" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial"></SPAN>&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">In September 2007, LHWA refiled the suit it originally filed in Ohio state court and voluntarily dismissed in 2006. The suit claims that perfluorinated compounds, including PFOA, allegedly released from the Washington Works plant contaminated LHWA's well fields and underlying aquifer.<SPAN style="mso-spacerun: yes"> </SPAN>LHWA's complaint seeks a variety of relief including compensatory and punitive damages, and an injunction requiring DuPont to provide a new "pristine" well field and the infrastructure to deliver it.</SPAN></P> <P class="10KHeading3" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial"></SPAN>&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">In the second quarter 2006, three purported class actions were filed alleging that drinking water had been contaminated by PFOA in excess of 0.05 ppb due to alleged releases from certain DuPont plants.<SPAN style="mso-spacerun: yes"> </SPAN>One of these cases was filed in West Virginia state court on behalf of customers of the Parkersburg City Water District, but was removed on DuPont's motion to the U.S. District Court for the Southern District of West Virginia.<SPAN style="mso-spacerun: yes"> </SPAN>In September 2008, the U.S. District Court ruled that the case could not proceed as a class action. However, the ruling does not prevent the plaintiffs from pursuing individual claims.<SPAN style="mso-spacerun: yes"> </SPAN>The plaintiffs have filed a petition seeking leave from the Fourth Circuit Court of Appeals to appeal the ruling.</SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial"></SPAN>&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">The other two purported class actions were filed in New Jersey.<SPAN style="mso-spacerun: yes"> </SPAN>One was filed in federal court on behalf of individuals who allegedly drank water contaminated by releases from DuPont's Chambers Works plant in Deepwater, New Jersey. <SPAN style="mso-spacerun: yes"></SPAN>The second was filed in state court on behalf of customers serviced primarily by the Pennsville Township Water Department and was removed to New Jersey federal district court on DuPont's motion.<SPAN style="mso-spacerun: yes"> </SPAN>The New Jersey cases have been combined for purposes of discovery and the complaints have been amended to allege that drinking water had been contaminated by PFOA in excess of 0.04 ppb.<SPAN style="mso-spacerun: yes"> </SPAN>A ruling on whether the New Jersey cases can proceed as a class action is expected by the first half of 2009. The company is defending itself vigorously against these lawsuits alleging contamination of drinking water sources. </SPAN></P> <P class="10KHeading3" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial"></SPAN>&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">While DuPont believes that it is reasonably possible that it could incur losses related to PFOA matters in addition to those matters discussed above for which it has established accruals, a range of such losses, if any, cannot be reasonably estimated at this time.</SPAN></P> <P class="10KHeading3" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt"></SPAN></B>&nbsp;</P> <P class="10KHeading3"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Consumer Products Class Actions</SPAN></B></P> <P class="10KHeading3"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt"></SPAN></B>&nbsp;</P> <P class="10KHeading3"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt"> <TABLE style="WIDTH: 321pt; BORDER-COLLAPSE: collapse" cellSpacing="0" cellPadding="0" width="428" border="0" x:str> <COLGROUP> <COL style="WIDTH: 48pt" span="5" width="64"> <COL style="WIDTH: 81pt; mso-width-source: userset; mso-width-alt: 3949" width="108"> <TBODY> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl24" style="WIDTH: 48pt; HEIGHT: 12.75pt" width="64" height="17">&nbsp;</TD> <TD class="xl24" style="WIDTH: 48pt" width="64">&nbsp;</TD> <TD class="xl24" style="WIDTH: 48pt" width="64">&nbsp;</TD> <TD class="xl24" style="WIDTH: 48pt" width="64">&nbsp;</TD> <TD class="xl25" style="WIDTH: 48pt" width="64">&nbsp;</TD> <TD class="xl29" style="WIDTH: 81pt" width="108">Number of Cases</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl24" style="HEIGHT: 12.75pt" height="17">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl24" style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan="3" height="17">Balance at December 31, 2007</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl26" x:num="23">23 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl24" style="HEIGHT: 12.75pt" height="17"><SPAN style="mso-spacerun: yes"></SPAN>Filed</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl26">-</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl24" style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan="2" height="17"><SPAN style="mso-spacerun: yes"></SPAN>Resolved</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl27">-</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl24" style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan="3" height="17">Balance at March 31, 2008</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl26" x:num="23">23 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl24" style="HEIGHT: 12.75pt" height="17"><SPAN style="mso-spacerun: yes"></SPAN>Filed</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl26">-</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl24" style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan="2" height="17"><SPAN style="mso-spacerun: yes"></SPAN>Resolved</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl27" x:num="-1">(1)</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl24" style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan="3" height="17">Balance at June 30, 2008</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl26" x:num="22">22 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl24" style="HEIGHT: 12.75pt" height="17"><SPAN style="mso-spacerun: yes"></SPAN>Filed</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl26">-</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl24" style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan="2" height="17"><SPAN style="mso-spacerun: yes"></SPAN>Resolved</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl26">-</TD></TR> <TR style="HEIGHT: 13.5pt" height="18"> <TD class="xl24" style="HEIGHT: 13.5pt; mso-ignore: colspan" colSpan="3" height="18">Balance at September 30, 2008</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl28" x:num="22">22 </TD></TR> <TR style="HEIGHT: 6pt; mso-height-source: userset" height="8"> <TD class="xl24" style="HEIGHT: 6pt" height="8">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD> <TD class="xl24">&nbsp;</TD></TR></TBODY></TABLE> <STYLE> <!--table {mso-displayed-decimal-separator:"\."; mso-displayed-thousand-separator:"\,";} @page {margin:1.0in .75in 1.0in .75in; mso-header-margin:.5in; mso-footer-margin:.5in;} tr {mso-height-source:auto;} col {mso-width-source:auto;} br {mso-data-placement:same-cell;} td {padding-top:1px; padding-right:1px; padding-left:1px; mso-ignore:padding; color:windowtext; font-size:10.0pt; font-weight:400; font-style:normal; text-decoration:none; font-family:Arial; mso-generic-font-family:auto; mso-font-charset:0; mso-number-format:General; text-align:general; vertical-align:bottom; border:none; mso-background-source:auto; mso-pattern:auto; mso-protection:locked visible; white-space:nowrap; mso-rotate:0;} ..xl24 {background:white; mso-pattern:auto none;} .xl25 {mso-number-format:"\@"; text-align:center; background:white; mso-pattern:auto none;} .xl26 {mso-number-format:"\#\,\#\#0_\)\;\\\(\#\,\#\#0\\\)"; text-align:center; background:white; mso-pattern:auto none;} .xl27 {mso-number-format:"\#\,\#\#0_\)\;\\\(\#\,\#\#0\\\)"; text-align:center; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none; background:white; mso-pattern:auto none;} ..xl28 {mso-number-format:"\#\,\#\#0_\)\;\\\(\#\,\#\#0\\\)"; text-align:center; border-top:.5pt solid windowtext; border-right:none; border-bottom:2.0pt double windowtext; border-left:none; background:white; mso-pattern:auto none;} .xl29 {text-decoration:underline; text-underline-style:single; mso-number-format:"\@"; text-align:center; background:white; mso-pattern:auto none;} --> </STYLE> </SPAN></B></P> <P class="10KHeading3"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt"></SPAN></B>&nbsp;</P> <P class="10KHeading3"><SPAN style="FONT-STYLE: normal; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-bidi-font-style: italic"></SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">As of September 30, 2008, twenty-two intrastate class actions are pending on behalf of consumers who have purchased cookware with Teflon<SUP>(R)</SUP> non-stick coating in federal district courts against DuPont.<SPAN style="mso-spacerun: yes"> </SPAN>The actions were filed on behalf of consumers in California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Illinois, Indiana, Iowa, Kentucky, Massachusetts, Michigan, Missouri, New Jersey, New Mexico, New York, Ohio, Oklahoma, Pennsylvania, South Carolina, Texas and West Virginia.<SPAN style="mso-spacerun: yes"> </SPAN>One of the two actions originally filed in California was dismissed in the second quarter 2008 for failure to prosecute.<SPAN style="mso-spacerun: yes"> </SPAN>By order of the Judicial Panel on Multidistrict Litigation, all of these actions have been combined for coordinated and consolidated pre-trial proceedings in federal district court for the Southern District of Iowa.<SPAN style="mso-spacerun: yes"> </SPAN>Under the court's latest case management order, a ruling on whether these cases can proceed as class actions is expected by the first half of 2009.</SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial"></SPAN>&nbsp;</P> <P class="10KHeading3" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial"><SPAN style="mso-spacerun: yes"></SPAN></SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">The actions allege that DuPont violated state laws by engaging in deceptive and unfair trade practices by failing "to disclose to consumers that products containing Teflon<SUP>(R)</SUP><SPAN style="mso-spacerun: yes"> </SPAN>were or are potentially harmful to consumers" and that DuPont has liability based on state law theories of negligence and strict liability.<SPAN style="mso-spacerun: yes"> </SPAN>The actions allege that Teflon<SUP>(R)</SUP> contained or released harmful and dangerous substances; including a chemical (PFOA) alleged to have been determined to be "likely" to cause cancer in humans.<SPAN style="mso-spacerun: yes"> </SPAN>The actions seek unspecified monetary damages for consumers who purchased cooking products containing Teflon<SUP>(R)</SUP>, as well as the creation of funds for medical monitoring and independent scientific research, attorneys' fees and other relief.<SPAN style="mso-spacerun: yes"> </SPAN>In December 2005, a motion was filed by a single named plaintiff in the Superior Court for the Province of Quebec, Canada seeking authorization to institute a class action on behalf of all Quebec consumers who have purchased or used kitchen items, household appliances or food-packaging containing Teflon<SUP>(R)</SUP> or Zonyl<SUP>(R)</SUP> non-stick coatings.<SPAN style="mso-spacerun: yes"> </SPAN>A ruling on this motion is expected from the Court in 2009.<SPAN style="mso-spacerun: yes"> </SPAN>Damages are not quantified, but are alleged to include the cost of replacement products as well as one hundred dollars per class member as exemplary damages.</SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial"></SPAN>&nbsp;</P> <P class="10KHeading3" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial"><SPAN style="mso-spacerun: yes"></SPAN></SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">The company believes that the twenty-two class actions and the motion filed in Quebec are without merit and, therefore, believes it is remote that it will incur losses related to these actions.<SPAN style="mso-spacerun: yes"> </SPAN>At September 30, 2008, the company had not established any accruals related to these matters.</SPAN></P> <P class="10KHeading3" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><U><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt"><SPAN style="TEXT-DECORATION: none"></SPAN></SPAN></U>&nbsp;</P> <P class="10KHeading3" style="TEXT-JUSTIFY: inter-ideograph; MARGIN-BOTTOM: 3pt; TEXT-ALIGN: justify"><U><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Elastomers Antitrust Matters</SPAN></U></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">Since 2002, the U.S., European Union (EU) and Canadian antitrust authorities have investigated the synthetic rubber markets for possible violations.<SPAN style="mso-spacerun: yes"> </SPAN>These investigations included DuPont Dow Elastomers, LLC (DDE), as a result of its participation in the polychloroprene (PCP) and ethylene propylene diene monomer (EPDM) markets.<SPAN style="mso-spacerun: yes"> </SPAN>DDE was a joint venture between The Dow Chemical Company (Dow) and DuPont. </SPAN></P> <P class="MsoDate">&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">In April 2004, DuPont and Dow entered into a series of agreements under which DuPont obtained complete control over directing DDE's response to these investigations and the related litigation and DuPont agreed to a disproportionate share of the venture's liabilities and costs related to these matters.<SPAN style="mso-spacerun: yes"> </SPAN>Consequently, DuPont bears any potential liabilities and costs up to the initial $150.<SPAN style="mso-spacerun: yes"> </SPAN>Dow is obligated to indemnify DuPont for up to $72.5 by paying 15 to 30 percent toward liabilities and costs in excess of $150.<SPAN style="mso-spacerun: yes"> </SPAN>On June 30, 2005, DDE became a wholly owned subsidiary of DuPont and was renamed DuPont Performance Elastomers, LLC (DPE).</SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial"></SPAN>&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">In July 2007, D<SPAN style="COLOR: navy">P</SPAN>E pled guilty to conspiring to fix prices and paid a fine of CDN $4, approximately $3.8 USD, resolving all criminal antitrust allegations against it related to PCP in Canada.</SPAN><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"> </SPAN></P> <P class="MsoDate">&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">In late March 2007, the EU antitrust authorities issued a Statement of Objections that made antitrust allegations regarding the PCP market against DPE, relating to the joint venture's activities, and DuPont, to which both responded.<SPAN style="mso-spacerun: yes"> </SPAN>In December 2007, the EU antitrust authorities issued their decision, including the imposition of fines against DPE, Dow and DuPont totaling EURO 59.25. <SPAN style="mso-spacerun: yes"></SPAN>In February 2008, DuPont appealed the decision to the EU's Court of First Instance which has jurisdiction to review the findings and adjust the fine. It is very unlikely that the fine would be increased as a result of the review.<SPAN style="mso-spacerun: yes"> </SPAN>In March 2008, the company provisionally paid the fine of EURO 59.25 ($90.9 USD); a portion of the payment may be refunded if the appeal is successful. While a decision on the February 2008 appeal has not been issued, the EU antitrust authorities revised the December 2007 decision by imposing an incremental fine on Dow of EURO 4.425 ($6.5 USD). Dow provisionally paid the incremental fine in the third quarter of 2008 and is seeking reimbursement from DuPont under the agreements between the companies.</SPAN></P> <P class="MsoDate">&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">DDE resolved all criminal antitrust allegations against it related to PCP in the U.S. through a plea agreement with the Department of Justice (DOJ) in January 2005 which was approved by the court on March 29, 2005.<SPAN style="mso-spacerun: yes"> </SPAN>The agreement requires the subsidiary to pay a fine of $84 which, at its election, is being paid in six equal, annual installments.<SPAN style="mso-spacerun: yes"> </SPAN>The annual installment payments for 2005, 2006, 2007 and 2008 have been made.<SPAN style="mso-spacerun: yes"> </SPAN>The agreement also requires the subsidiary to provide ongoing cooperation with the DOJ's investigation.</SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial"></SPAN>&nbsp;</P> <P class="MsoDate"><SPAN style="mso-spacerun: yes"></SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">At September 30, 2008, the company has accruals of approximately $34.5 related to this matter and a receivable of $6.3 for the remaining amount that it expects to be reimbursed by Dow. </SPAN></P> <P class="10KHeading3" style="TEXT-JUSTIFY: inter-ideograph; MARGIN-BOTTOM: 3pt; TEXT-ALIGN: justify"><U><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt"><SPAN style="TEXT-DECORATION: none"></SPAN></SPAN></U>&nbsp;</P> <P class="10KHeading3" style="TEXT-JUSTIFY: inter-ideograph; MARGIN-BOTTOM: 3pt; TEXT-ALIGN: justify"><U><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Spelter, West Virginia </SPAN></U></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">In September 2006, a West Virginia state court certified a class action against DuPont that seeks relief including the provision of remediation services and property value diminution damages for 7,000 residential properties in the vicinity of a closed zinc smelter in Spelter, West Virginia.<SPAN style="mso-spacerun: yes"> </SPAN>The action also seeks medical monitoring for an undetermined number of residents in the class area.<SPAN style="mso-spacerun: yes"> </SPAN>The smelter was owned and operated by at least three companies between 1910 and 2001, including DuPont between 1928 and 1950.<SPAN style="mso-spacerun: yes"> </SPAN>DuPont performed remedial measures at the request of the EPA in the late 1990s and in 2001 repurchased the site to facilitate and complete the remediation.<SPAN style="mso-spacerun: yes"> </SPAN>The fall 2007 trial was conducted in four phases: liability, medical monitoring, property and punitive damages. The jury found against DuPont in all four phases awarding $55.5 for property remediation and $196.2 in punitive damages. In post trial motions, the court adopted the plaintiffs' forty-year medical monitoring plan estimated by plaintiffs to cost $130 and granted plaintiffs' attorneys legal fees of $127 plus $8 in expenses.<SPAN style="mso-spacerun: yes"> </SPAN>In June 2008, DuPont filed its petitions for appeal with the West Virginia Supreme Court seeking review of a number of issues associated with the trial court's decisions before, during and after the trial. On September 25, 2008, the Court decided to accept the case and consider the parties' appeal on the merits. A decision on the appeal is not expected until the second half of 2009. Effective with DuPont posting a bond, the execution of judgment against the company is stayed pending final disposition of DuPont's appeal to the West Virginia Supreme Court of Appeals.<SPAN style="mso-spacerun: yes"> </SPAN>As of September 30, 2008, the company had recorded accruals of $55, although given the uncertainties inherent in litigation, there can be no assurance as to the final outcome.<SPAN style="mso-spacerun: yes"> </SPAN></SPAN></P> <P class="10KHeading3" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt"></SPAN></B>&nbsp;</P> <P class="10KHeading3" style="TEXT-JUSTIFY: inter-ideograph; MARGIN-BOTTOM: 3pt; TEXT-ALIGN: justify"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">General</SPAN></B></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">The company is subject to various lawsuits and claims arising out of the normal course of its business.<SPAN style="mso-spacerun: yes"> </SPAN>These lawsuits and claims include actions based on alleged exposures to products, intellectual property and environmental matters and contract and antitrust claims.<SPAN style="mso-spacerun: yes"> </SPAN><SPAN style="COLOR: black">Management has noted a nationwide trend in purported class actions against chemical manufacturers generally seeking relief such as medical monitoring, property damages, off-site remediation and punitive damages arising from alleged environmental torts without claiming present personal injuries.<SPAN style="mso-spacerun: yes"> </SPAN>Such cases may allege contamination from unregulated substances or remediated sites. </SPAN>Although it is not possible to predict the outcome of these various lawsuits and claims, management does not anticipate they will have a materially adverse effect on the company's consolidated financial position or liquidity.<SPAN style="mso-spacerun: yes"> </SPAN>However, the ultimate liabilities may be significant to results of operations in the period recognized.<SPAN style="mso-spacerun: yes"> </SPAN>The company accrues for contingencies when the information available indicates that it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated.<SPAN style="mso-spacerun: yes"> </SPAN></SPAN></P> <P class="10KHeading3" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-STYLE: normal; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt; mso-bidi-font-style: italic"></SPAN>&nbsp;</P> <P class="10KHeading3" style="TEXT-JUSTIFY: inter-ideograph; MARGIN-BOTTOM: 3pt; TEXT-ALIGN: justify"><U><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Environmental</SPAN></U></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">The company is also subject to contingencies pursuant to environmental laws and regulations that in the future may require the company to take further action to correct the effects on the environment of prior disposal practices or releases of chemical or petroleum substances by the company or other parties. The company accrues for environmental remediation activities consistent with the policy set forth in Note&nbsp;1 in the company's 2007 Annual Report. Much of this liability results from the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, often referred to as Superfund), the Resource Conservation and Recovery Act (RCRA) and similar state laws. These laws require the company to undertake certain investigative and remedial activities at sites where the company conducts or once conducted operations or at sites where company-generated waste was disposed. The accrual also includes estimated costs related to a number of sites identified by the company for which it is probable that environmental remediation will be required, but which are not currently the subject of CERCLA, RCRA or state enforcement activities.</SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial"></SPAN>&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">Remediation activities vary substantially in duration and cost from site to site. These activities, and their associated costs, depend on the mix of unique site characteristics, evolving remediation technologies, diverse regulatory agencies and enforcement policies, as well as the presence or absence of potentially responsible parties. At September 30, 2008, the Condensed Consolidated Balance Sheet included a liability of $366 relating to these matters and, in management's opinion, is appropriate based on existing facts and circumstances. The average time frame, over which the accrued or presently unrecognized amounts may be paid, based on past history, is estimated to be 15-20&nbsp;years. Considerable uncertainty exists with respect to these costs and, under adverse changes in circumstances, potential liability may range up to two to three times the amount accrued as of September&nbsp;30, 2008.</SPAN></P> <P class="10KHeading3" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><U><SPAN style="FONT-SIZE: 8pt; FONT-FAMILY: Arial"><SPAN style="TEXT-DECORATION: none"></SPAN></SPAN></U>&nbsp;</P> <P class="10KHeading3" style="TEXT-JUSTIFY: inter-ideograph; MARGIN-BOTTOM: 3pt; TEXT-ALIGN: justify"><U><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Other</SPAN></U></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; tab-stops: -.5in; mso-hyphenate: none"><SPAN style="FONT-FAMILY: Arial; LETTER-SPACING: -0.1pt">The company has various purchase commitments incident to the ordinary conduct of business.<SPAN style="mso-spacerun: yes"> </SPAN>In the aggregate, such commitments are not at prices in excess of current market nor are they significantly different than amounts disclosed in the company's 2007 Annual Report.<SPAN style="mso-spacerun: yes"> </SPAN></SPAN></P> <P class="MsoNormal"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN></B>&nbsp;</P> <STYLE> v\:* {behavior:url(#default#VML);} o\:* {behavior:url(#default#VML);} w\:* {behavior:url(#default#VML);} .shape {behavior:url(#default#VML);} st1\:*{behavior:url(#ieooui) } <!-- /* Font Definitions */ @font-face {font-family:Batang; panose-1:2 3 6 0 0 1 1 1 1 1; mso-font-alt:??"???; mso-font-charset:129; mso-generic-font-family:auto; mso-font-format:other; mso-font-pitch:fixed; mso-font-signature:1 151388160 16 0 524288 0;} @font-face {font-family:"\@Batang"; panose-1:0 0 0 0 0 0 0 0 0 0; mso-font-charset:129; mso-generic-font-family:auto; mso-font-format:other; mso-font-pitch:fixed; mso-font-signature:1 151388160 16 0 524288 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} p.MsoHeader, li.MsoHeader, div.MsoHeader {margin:0in; 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margin-bottom:.0001pt; mso-pagination:widow-orphan; mso-hyphenate:none; tab-stops:-.5in; mso-layout-grid-align:none; text-autospace:none; font-size:10.0pt; mso-bidi-font-size:11.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; letter-spacing:-.1pt; mso-fareast-language:EN-US; font-style:italic;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </STYLE> 1.11 0.37 1.23 0.41 0.3 0.3 1800000000 1800000000 986330000 989402000 296000000 297000000 <html><P class="MsoNormal" style="MARGIN-BOTTOM: 3pt"><A name="note10"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">Note 10.</SPAN></B></A><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"><SPAN style="mso-spacerun: yes"> </SPAN>Comprehensive Income <BR></SPAN></B><SPAN style="FONT-FAMILY: Arial">The following sets forth the company's total comprehensive income for the periods shown:</SPAN></P> <P class="MsoHeader" style="tab-stops: 243.0pt"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN>&nbsp;</P> <P class="MsoHeader" style="tab-stops: 243.0pt"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"> <TABLE style="WIDTH: 418pt; BORDER-COLLAPSE: collapse" cellSpacing="0" cellPadding="0" width="557" border="0" x:str> <COLGROUP> <COL style="WIDTH: 190pt; mso-width-source: userset; mso-width-alt: 9252" width="253"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 48pt" width="64"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 48pt" width="64"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 48pt" width="64"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 48pt" width="64"> <TBODY> <TR style="HEIGHT: 27pt; mso-height-source: userset" height="36"> <TD class="xl26" style="WIDTH: 190pt; HEIGHT: 27pt" width="253" height="36"></TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl28" style="WIDTH: 105pt" width="140" colSpan="3">Three Months Ended<BR>September 30,</TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl28" style="WIDTH: 105pt" width="140" colSpan="3">Nine Months Ended<BR>September 30,</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl26" style="WIDTH: 190pt; HEIGHT: 12.75pt" width="253" height="17"></TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl27" style="WIDTH: 48pt" width="64" x:num>2008</TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl28" style="WIDTH: 48pt" width="64" x:num>2007</TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl27" style="WIDTH: 48pt" width="64" x:num>2008</TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl28" style="WIDTH: 48pt" width="64" x:num>2007</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl26" style="WIDTH: 190pt; HEIGHT: 12.75pt" width="253" height="17"></TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl26" style="WIDTH: 48pt" width="64"></TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl26" style="WIDTH: 48pt" width="64"></TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl26" style="WIDTH: 48pt" width="64"></TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl26" style="WIDTH: 48pt" width="64"></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl26" style="WIDTH: 190pt; HEIGHT: 12.75pt" width="253" height="17">Net income</TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl29" x:num="367"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>367 </TD> <TD class="xl29"></TD> <TD class="xl29" x:num="526"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>526 </TD> <TD class="xl29"></TD> <TD class="xl29" x:num="2636"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>2,636 </TD> <TD class="xl29"></TD> <TD class="xl29" x:num="2443"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>2,443 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl26" style="WIDTH: 190pt; HEIGHT: 12.75pt" width="253" height="17">Cumulative translation adjustment</TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" x:num="-101"><SPAN style="mso-spacerun: yes"></SPAN>(101)</TD> <TD class="xl24"></TD> <TD class="xl24" x:num="53"><SPAN style="mso-spacerun: yes"></SPAN>53 </TD> <TD class="xl24"></TD> <TD class="xl24" x:num="-26"><SPAN style="mso-spacerun: yes"></SPAN>(26)</TD> <TD class="xl24"></TD> <TD class="xl24" x:num="75"><SPAN style="mso-spacerun: yes"></SPAN>75 </TD></TR> <TR style="HEIGHT: 27.75pt; mso-height-source: userset" height="37"> <TD class="xl26" style="WIDTH: 190pt; HEIGHT: 27.75pt" width="253" height="37">Net revaluation and clearance of cash flow hedges to earnings</TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" x:num="-140"><SPAN style="mso-spacerun: yes"></SPAN>(140)</TD> <TD class="xl24"></TD> <TD class="xl24" x:num="3"><SPAN style="mso-spacerun: yes"></SPAN>3 </TD> <TD class="xl24"></TD> <TD class="xl24" x:num="-118"><SPAN style="mso-spacerun: yes"></SPAN>(118)</TD> <TD class="xl24"></TD> <TD class="xl24" x:num="-6"><SPAN style="mso-spacerun: yes"></SPAN>(6)</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl26" style="WIDTH: 190pt; HEIGHT: 12.75pt" width="253" height="17">Pension benefit plans</TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" x:num="6"><SPAN style="mso-spacerun: yes"></SPAN>6 </TD> <TD class="xl24"></TD> <TD class="xl24" x:num="18"><SPAN style="mso-spacerun: yes"></SPAN>18 </TD> <TD class="xl24"></TD> <TD class="xl24" x:num="31"><SPAN style="mso-spacerun: yes"></SPAN>31 </TD> <TD class="xl24"></TD> <TD class="xl24" x:num="63"><SPAN style="mso-spacerun: yes"></SPAN>63 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl31" style="WIDTH: 190pt; HEIGHT: 12.75pt" width="253" height="17">Other benefit plans</TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" x:num="-12"><SPAN style="mso-spacerun: yes"></SPAN>(12)</TD> <TD class="xl24"></TD> <TD class="xl24" x:num="-22"><SPAN style="mso-spacerun: yes"></SPAN>(22)</TD> <TD class="xl24"></TD> <TD class="xl24" x:num="-37"><SPAN style="mso-spacerun: yes"></SPAN>(37)</TD> <TD class="xl24"></TD> <TD class="xl24" x:num="-50"><SPAN style="mso-spacerun: yes"></SPAN>(50)</TD></TR> <TR style="HEIGHT: 30pt; mso-height-source: userset" height="40"> <TD class="xl26" style="WIDTH: 190pt; HEIGHT: 30pt" width="253" height="40">Net unrealized (losses) gains on available for sale securities</TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl25" x:num="-6"><SPAN style="mso-spacerun: yes"></SPAN>(6)</TD> <TD class="xl24"></TD> <TD class="xl25" x:num="-8"><SPAN style="mso-spacerun: yes"></SPAN>(8)</TD> <TD class="xl24"></TD> <TD class="xl25" x:num="-15"><SPAN style="mso-spacerun: yes"></SPAN>(15)</TD> <TD class="xl24"></TD> <TD class="xl25" x:num="4"><SPAN style="mso-spacerun: yes"></SPAN>4 </TD></TR> <TR style="HEIGHT: 9pt; mso-height-source: userset" height="12"> <TD class="xl26" style="WIDTH: 190pt; HEIGHT: 9pt" width="253" height="12"></TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl26" style="WIDTH: 48pt" width="64"></TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl26" style="WIDTH: 48pt" width="64"></TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl26" style="WIDTH: 48pt" width="64"></TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl26" style="WIDTH: 48pt" width="64"></TD></TR> <TR style="HEIGHT: 13.5pt" height="18"> <TD class="xl26" style="WIDTH: 190pt; HEIGHT: 13.5pt" width="253" height="18" x:str="Total ">Total<SPAN style="mso-spacerun: yes"></SPAN></TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl30" x:num="114" x:fmla="=SUM(C4:C9)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>114 </TD> <TD class="xl29"></TD> <TD class="xl30" x:num="570" x:fmla="=SUM(E4:E9)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>570 </TD> <TD class="xl29"></TD> <TD class="xl30" x:num="2471" x:fmla="=SUM(G4:G9)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>2,471 </TD> <TD class="xl29"></TD> <TD class="xl30" x:num="2529" x:fmla="=SUM(I4:I9)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>2,529 </TD></TR> <TR style="HEIGHT: 7.5pt; mso-height-source: userset" height="10"> <TD class="xl26" style="WIDTH: 190pt; HEIGHT: 7.5pt" width="253" height="10"></TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl26" style="WIDTH: 48pt" width="64"></TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl26" style="WIDTH: 48pt" width="64"></TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl26" style="WIDTH: 48pt" width="64"></TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl26" style="WIDTH: 48pt" width="64"></TD></TR></TBODY></TABLE> <STYLE> <!--table {mso-displayed-decimal-separator:"\."; mso-displayed-thousand-separator:"\,";} @page {margin:1.0in .75in 1.0in .75in; mso-header-margin:.5in; mso-footer-margin:.5in;} tr {mso-height-source:auto;} col {mso-width-source:auto;} br {mso-data-placement:same-cell;} td {padding-top:1px; padding-right:1px; padding-left:1px; mso-ignore:padding; color:windowtext; font-size:10.0pt; font-weight:400; font-style:normal; text-decoration:none; font-family:Arial; mso-generic-font-family:auto; mso-font-charset:0; mso-number-format:General; text-align:general; vertical-align:bottom; border:none; mso-background-source:auto; mso-pattern:auto; mso-protection:locked visible; white-space:nowrap; mso-rotate:0;} ..xl24 {mso-number-format:"_\(* \#\,\#\#0_\)\;_\(* \\\(\#\,\#\#0\\\)\;_\(* \0022-\0022_\)\;_\(\@_\)";} .xl25 {mso-number-format:"_\(* \#\,\#\#0_\)\;_\(* \\\(\#\,\#\#0\\\)\;_\(* \0022-\0022_\)\;_\(\@_\)"; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none;} .xl26 {font-family:Arial, sans-serif; mso-font-charset:0; vertical-align:top; white-space:normal;} .xl27 {font-weight:700; font-family:Arial, sans-serif; mso-font-charset:0; text-align:center; vertical-align:top; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none; white-space:normal;} .xl28 {font-family:Arial, sans-serif; mso-font-charset:0; text-align:center; vertical-align:top; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none; white-space:normal;} .xl29 {font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"_\(\0022$\0022* \#\,\#\#0_\)\;_\(\0022$\0022* \\\(\#\,\#\#0\\\)\;_\(\0022$\0022* \0022-\0022_\)\;_\(\@_\)";} .xl30 {font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"_\(\0022$\0022* \#\,\#\#0_\)\;_\(\0022$\0022* \\\(\#\,\#\#0\\\)\;_\(\0022$\0022* \0022-\0022_\)\;_\(\@_\)"; border-top:none; border-right:none; border-bottom:2.0pt double windowtext; border-left:none;} .xl31 {font-family:Arial, sans-serif; mso-font-charset:0; text-align:left; vertical-align:top; white-space:normal;} --> </STYLE> </SPAN></P> <P class="MsoHeader" style="tab-stops: 27.0pt"><SPAN style="mso-fareast-language: KO"></SPAN></P><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman; mso-fareast-language: EN-US; mso-fareast-font-family: Times New Roman; mso-ansi-language: EN-US; mso-bidi-language: AR-SA"><BR style="mso-special-character: line-break"><BR style="mso-special-character: line-break"></SPAN> <STYLE> v\:* {behavior:url(#default#VML);} o\:* {behavior:url(#default#VML);} w\:* {behavior:url(#default#VML);} .shape {behavior:url(#default#VML);} <!-- /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} p.MsoHeader, li.MsoHeader, div.MsoHeader {margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; tab-stops:center 3.0in right 6.0in; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </STYLE> 1370000000 2953000000 802000000 955000000 866000000 870000000 <html><P class="MsoHeader" style="tab-stops: 27.0pt"><A name="note11"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">Note 1</SPAN></B></A><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">1.<SPAN style="mso-spacerun: yes"> </SPAN>Derivatives and Other Hedging Instruments </SPAN></B></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN style="COLOR: black; FONT-FAMILY: Arial; mso-fareast-font-family: Batang; mso-fareast-language: KO">During the third quarter 2008, the company entered into a cash flow hedge of foreign currency risk. Foreign currency programs involve hedging a portion of foreign currency-denominated revenues outside of the United States. </SPAN><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-weight: bold; mso-fareast-font-family: Batang; mso-fareast-language: KO">The effects of</SPAN><SPAN style="FONT-FAMILY: Arial; mso-fareast-font-family: Batang; mso-fareast-language: KO"> <SPAN style="mso-bidi-font-weight: bold">h</SPAN>edges<SPAN style="COLOR: black"> of foreign currency-denominated revenues are reported on the net sales line of the Consolidated Income Statement. The company's objectives and strategies for holding derivative instruments are included the company's 2007 Annual Report, at Note 23, "Derivatives and Other Hedging Instruments."<SPAN style="mso-spacerun: yes"> </SPAN></SPAN></SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN style="COLOR: black; FONT-FAMILY: Arial; mso-fareast-font-family: Batang; mso-fareast-language: KO"></SPAN>&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN style="COLOR: black; FONT-FAMILY: Arial; mso-fareast-font-family: Batang; mso-fareast-language: KO">Total cash flow ineffectiveness reported in earnings for the three- and nine-month periods ended September 30, 2008 was a pretax loss of $17 and $11, respectively.<SPAN style="mso-spacerun: yes"> </SPAN></SPAN><SPAN style="FONT-FAMILY: Arial">Hedge losses excluded from the assessment of hedge effectiveness for the nine-month period ended September 30, 2008 was $1. There were no reclassifications to earnings for forecasted transactions that did not occur related to cash flow hedges.</SPAN><SPAN style="COLOR: black; FONT-FAMILY: Arial; mso-fareast-font-family: Batang; mso-fareast-language: KO"></SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN style="COLOR: black; FONT-FAMILY: Arial; mso-fareast-font-family: Batang; mso-fareast-language: KO"></SPAN>&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial"></SPAN>&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">The following table summarizes the effect of cash flow hedges on accumulated other comprehensive income (loss) for the periods shown:</SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN>&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"> <TABLE style="WIDTH: 480pt; BORDER-COLLAPSE: collapse" cellSpacing="0" cellPadding="0" width="636" border="0" x:str> <COLGROUP> <COL style="WIDTH: 180pt; mso-width-source: userset; mso-width-alt: 8777" width="240"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 41pt; mso-width-source: userset; mso-width-alt: 1974" width="54"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 41pt; mso-width-source: userset; mso-width-alt: 1974" width="54"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 41pt; mso-width-source: userset; mso-width-alt: 1974" width="54"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 41pt; mso-width-source: userset; mso-width-alt: 1974" width="54"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 41pt; mso-width-source: userset; mso-width-alt: 1974" width="54"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 41pt; mso-width-source: userset; mso-width-alt: 1974" width="54"> <TBODY> <TR style="HEIGHT: 30.75pt; mso-height-source: userset" height="41"> <TD style="WIDTH: 180pt; HEIGHT: 30.75pt" width="240" height="41"></TD> <TD style="WIDTH: 9pt" width="12"></TD> <TD class="xl34" style="WIDTH: 141pt" width="186" colSpan="5">Three Months Ended<BR>September 30, 2008</TD> <TD style="WIDTH: 9pt" width="12"></TD> <TD class="xl34" style="WIDTH: 141pt" width="186" colSpan="5">Nine Months Ended<BR>September 30, 2008</TD></TR> <TR style="HEIGHT: 27pt; mso-height-source: userset" height="36"> <TD class="xl31" style="WIDTH: 180pt; HEIGHT: 27pt" width="240" height="36"></TD> <TD class="xl31" style="WIDTH: 9pt" width="12"></TD> <TD class="xl33" style="WIDTH: 41pt" width="54">Pretax</TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl33" style="WIDTH: 41pt" width="54">Tax</TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl33" style="WIDTH: 41pt" width="54">After-Tax</TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl33" style="WIDTH: 41pt" width="54">Pretax</TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl33" style="WIDTH: 41pt" width="54">Tax</TD> <TD class="xl26" style="WIDTH: 9pt" width="12"></TD> <TD class="xl33" style="WIDTH: 41pt" width="54">After-Tax</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl31" style="WIDTH: 180pt; HEIGHT: 12.75pt" width="240" height="17"></TD> <TD class="xl31" style="WIDTH: 9pt" width="12"></TD> <TD class="xl31" style="WIDTH: 41pt" width="54"></TD> <TD class="xl31" style="WIDTH: 9pt" width="12"></TD> <TD class="xl31" style="WIDTH: 41pt" width="54"></TD> <TD class="xl31" style="WIDTH: 9pt" width="12"></TD> <TD class="xl31" style="WIDTH: 41pt" width="54"></TD> <TD class="xl31" style="WIDTH: 9pt" width="12"></TD> <TD class="xl31" style="WIDTH: 41pt" width="54"></TD> <TD class="xl31" style="WIDTH: 9pt" width="12"></TD> <TD class="xl31" style="WIDTH: 41pt" width="54"></TD> <TD class="xl31" style="WIDTH: 9pt" width="12"></TD> <TD class="xl31" style="WIDTH: 41pt" width="54"></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl31" style="WIDTH: 180pt; HEIGHT: 12.75pt" width="240" height="17">Beginning balance</TD> <TD class="xl32" style="WIDTH: 9pt" width="12"></TD> <TD class="xl27" x:num="102"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>102 </TD> <TD class="xl27"></TD> <TD class="xl27" x:num="-39"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>(39)</TD> <TD class="xl27"></TD> <TD class="xl27" x:num="63" x:fmla="=SUM(C4:E4)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>63 </TD> <TD class="xl27"></TD> <TD class="xl27" x:num="66"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>66 </TD> <TD class="xl27"></TD> <TD class="xl27" x:num="-25"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>(25)</TD> <TD class="xl27"></TD> <TD class="xl27" x:num="41" x:fmla="=SUM(I4:K4)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>41 </TD></TR> <TR style="HEIGHT: 33.75pt; mso-height-source: userset" height="45"> <TD class="xl25" style="WIDTH: 180pt; HEIGHT: 33.75pt" width="240" height="45">Additions and revaluations of derivatives designated as cash flow hedges</TD> <TD class="xl31" style="WIDTH: 9pt" width="12"></TD> <TD class="xl28" x:num="-242"><SPAN style="mso-spacerun: yes"></SPAN>(242)</TD> <TD class="xl28"></TD> <TD class="xl28" x:num="91"><SPAN style="mso-spacerun: yes"></SPAN>91 </TD> <TD class="xl28"></TD> <TD class="xl28" x:num="-151" x:fmla="=SUM(C5:E5)"><SPAN style="mso-spacerun: yes"></SPAN>(151)</TD> <TD class="xl28"></TD> <TD class="xl28" x:num="-150"><SPAN style="mso-spacerun: yes"></SPAN>(150)</TD> <TD class="xl28"></TD> <TD class="xl28" x:num="57"><SPAN style="mso-spacerun: yes"></SPAN>57 </TD> <TD class="xl28"></TD> <TD class="xl28" x:num="-93" x:fmla="=SUM(I5:K5)"><SPAN style="mso-spacerun: yes"></SPAN>(93)</TD></TR> <TR style="HEIGHT: 6.75pt; mso-height-source: userset" height="9"> <TD class="xl24" style="WIDTH: 180pt; HEIGHT: 6.75pt" width="240" height="9"></TD> <TD class="xl31" style="WIDTH: 9pt" width="12"></TD> <TD class="xl28"></TD> <TD class="xl28"></TD> <TD class="xl28"></TD> <TD class="xl28"></TD> <TD class="xl28"></TD> <TD class="xl28"></TD> <TD class="xl28"></TD> <TD class="xl28"></TD> <TD class="xl28"></TD> <TD class="xl28"></TD> <TD class="xl28"></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl25" style="WIDTH: 180pt; HEIGHT: 12.75pt" width="240" height="17">Clearance of hedge results to earnings</TD> <TD class="xl32" style="WIDTH: 9pt" width="12"></TD> <TD class="xl29" x:num="16"><SPAN style="mso-spacerun: yes"></SPAN>16 </TD> <TD class="xl28"></TD> <TD class="xl29" x:num="-5"><SPAN style="mso-spacerun: yes"></SPAN>(5)</TD> <TD class="xl28"></TD> <TD class="xl29" x:num="11" x:fmla="=SUM(C7:E7)"><SPAN style="mso-spacerun: yes"></SPAN>11 </TD> <TD class="xl28"></TD> <TD class="xl29" x:num="-40"><SPAN style="mso-spacerun: yes"></SPAN>(40)</TD> <TD class="xl28"></TD> <TD class="xl29" x:num="15"><SPAN style="mso-spacerun: yes"></SPAN>15 </TD> <TD class="xl28"></TD> <TD class="xl29" x:num="-25" x:fmla="=SUM(I7:K7)"><SPAN style="mso-spacerun: yes"></SPAN>(25)</TD></TR> <TR style="HEIGHT: 6.75pt; mso-height-source: userset" height="9"> <TD class="xl31" style="WIDTH: 180pt; HEIGHT: 6.75pt" width="240" height="9"></TD> <TD class="xl32" style="WIDTH: 9pt" width="12"></TD> <TD class="xl32" style="WIDTH: 41pt" width="54"></TD> <TD class="xl32" style="WIDTH: 9pt" width="12"></TD> <TD class="xl32" style="WIDTH: 41pt" width="54"></TD> <TD class="xl32" style="WIDTH: 9pt" width="12"></TD> <TD class="xl32" style="WIDTH: 41pt" width="54"></TD> <TD class="xl32" style="WIDTH: 9pt" width="12"></TD> <TD class="xl32" style="WIDTH: 41pt" width="54"></TD> <TD class="xl32" style="WIDTH: 9pt" width="12"></TD> <TD class="xl32" style="WIDTH: 41pt" width="54"></TD> <TD class="xl32" style="WIDTH: 9pt" width="12"></TD> <TD class="xl32" style="WIDTH: 41pt" width="54"></TD></TR> <TR style="HEIGHT: 13.5pt" height="18"> <TD class="xl31" style="WIDTH: 180pt; HEIGHT: 13.5pt" width="240" height="18">Balance at September 30, 2008</TD> <TD class="xl31" style="WIDTH: 9pt" width="12"></TD> <TD class="xl30" x:num="-124" x:fmla="=SUM(C4:C7)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>(124)</TD> <TD class="xl27"></TD> <TD class="xl30" x:num="47" x:fmla="=SUM(E4:E7)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>47 </TD> <TD class="xl27"></TD> <TD class="xl30" x:num="-77" x:fmla="=SUM(G4:G7)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>(77)</TD> <TD class="xl27"></TD> <TD class="xl30" x:num="-124" x:fmla="=SUM(I4:I7)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>(124)</TD> <TD class="xl27"></TD> <TD class="xl30" x:num="47" x:fmla="=SUM(K4:K7)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>47 </TD> <TD class="xl27"></TD> <TD class="xl30" x:num="-77" x:fmla="=SUM(M4:M7)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>(77)</TD></TR> <TR style="HEIGHT: 8.25pt; mso-height-source: userset" height="11"> <TD class="xl31" style="WIDTH: 180pt; HEIGHT: 8.25pt" width="240" height="11"></TD> <TD class="xl31" style="WIDTH: 9pt" width="12"></TD> <TD class="xl32" style="WIDTH: 41pt" width="54"></TD> <TD class="xl31" style="WIDTH: 9pt" width="12"></TD> <TD class="xl32" style="WIDTH: 41pt" width="54"></TD> <TD class="xl32" style="WIDTH: 9pt" width="12"></TD> <TD class="xl32" style="WIDTH: 41pt" width="54"></TD> <TD class="xl32" style="WIDTH: 9pt" width="12"></TD> <TD class="xl32" style="WIDTH: 41pt" width="54"></TD> <TD class="xl31" style="WIDTH: 9pt" width="12"></TD> <TD class="xl32" style="WIDTH: 41pt" width="54"></TD> <TD class="xl32" style="WIDTH: 9pt" width="12"></TD> <TD class="xl32" style="WIDTH: 41pt" width="54"></TD></TR> <TR style="HEIGHT: 39pt" height="52"> <TD class="xl31" style="WIDTH: 180pt; HEIGHT: 39pt" width="240" height="52">Amounts expected to be reclassified<BR><SPAN style="mso-spacerun: yes"></SPAN>into earnings over the next twelve <BR><SPAN style="mso-spacerun: yes"></SPAN>months</TD> <TD class="xl31" style="WIDTH: 9pt" width="12"></TD> <TD class="xl30" x:num="-81"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>(81)</TD> <TD class="xl27"></TD> <TD class="xl30" x:num="30"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>30 </TD> <TD class="xl27"></TD> <TD class="xl30" x:num="-51" x:fmla="=SUM(C11:E11)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>(51)</TD> <TD class="xl27"></TD> <TD class="xl30" x:num="-81"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>(81)</TD> <TD class="xl27"></TD> <TD class="xl30" x:num="30"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>30 </TD> <TD class="xl27"></TD> <TD class="xl30" x:num="-51" x:fmla="=SUM(I11:K11)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>(51)</TD></TR> <TR style="HEIGHT: 6.75pt; mso-height-source: userset" height="9"> <TD class="xl24" style="WIDTH: 180pt; HEIGHT: 6.75pt" width="240" height="9"></TD> <TD class="xl31" style="WIDTH: 9pt" width="12"></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD></TR></TBODY></TABLE> <STYLE> <!--table {mso-displayed-decimal-separator:"\."; mso-displayed-thousand-separator:"\,";} @page {margin:1.0in .75in 1.0in .75in; mso-header-margin:.5in; mso-footer-margin:.5in;} tr {mso-height-source:auto;} col {mso-width-source:auto;} br {mso-data-placement:same-cell;} td {padding-top:1px; padding-right:1px; padding-left:1px; mso-ignore:padding; color:windowtext; font-size:10.0pt; font-weight:400; font-style:normal; text-decoration:none; font-family:Arial; mso-generic-font-family:auto; mso-font-charset:0; mso-number-format:General; text-align:general; vertical-align:bottom; border:none; mso-background-source:auto; mso-pattern:auto; mso-protection:locked visible; white-space:nowrap; 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mso-font-charset:0; vertical-align:top; white-space:normal;} .xl32 {font-family:Arial, sans-serif; mso-font-charset:0; text-align:center; vertical-align:top; white-space:normal;} ..xl33 {font-family:Arial, sans-serif; mso-font-charset:0; text-align:center; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none; white-space:normal;} .xl34 {text-align:center; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none; white-space:normal;} --> </STYLE> </SPAN></P> <STYLE> v\:* {behavior:url(#default#VML);} o\:* {behavior:url(#default#VML);} w\:* {behavior:url(#default#VML);} .shape {behavior:url(#default#VML);} st1\:*{behavior:url(#ieooui) } <!-- /* Font Definitions */ @font-face {font-family:Batang; panose-1:2 3 6 0 0 1 1 1 1 1; mso-font-alt:??"???; mso-font-charset:129; mso-generic-font-family:auto; mso-font-format:other; mso-font-pitch:fixed; mso-font-signature:1 151388160 16 0 524288 0;} @font-face {font-family:"\@Batang"; panose-1:0 0 0 0 0 0 0 0 0 0; mso-font-charset:129; mso-generic-font-family:auto; mso-font-format:other; mso-font-pitch:fixed; mso-font-signature:1 151388160 16 0 524288 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} p.MsoHeader, li.MsoHeader, div.MsoHeader {margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; tab-stops:center 3.0in right 6.0in; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </STYLE> Accounting Standards Issued Not Yet Adopted In December 2007, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 141 (revised 2007) "Business Combinations" (SFAS 141R) which replaces SFAS No. 141. SFAS 141R addresses the recognition and measurement of identifiable assets acquired, liabilities assumed, and non-controlling interests in business combinations. SFAS 141R also requires disclosure that enables users of the financial statements to better evaluate the nature and financial effect of business combinations. SFAS 141R applies prospectively to 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. SFAS 141R will be adopted by the company on January 1, 2009. The company does not believe that at the time of adoption SFAS 141R will have a material impact on its Consolidated Financial Statements. This standard requires significantly different accounting treatment for business combinations than current requirements. Thus, accounting for potential future business combinations after adoption may produce a significantly different result and financial statement impact than under current standards. In December 2007, the FASB issued SFAS No. 160, "Noncontrolling Interests in Consolidated Financial Statements-an amendment of Accounting Research Bulletin No. 51" (SFAS 160) which changes the accounting and reporting for minority interests and for the deconsolidation of a subsidiary. It also clarifies that a third-party, non-controlling interest in a consolidated subsidiary is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements. SFAS 160 also requires disclosure that clearly identifies and distinguishes between the interests of the parent and the interests of the non-controlling owners. SFAS 160 is effective for fiscal years beginning after December 15, 2008. SFAS 160 will be adopted by the company on January 1, 2009. The company does not believe that at the time of adoption SFAS 160 will have a material impact on its Consolidated Financial Statements. In March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative Instruments and Hedging Activities, an amendment of FASB Statement No. 133" (SFAS 161). Effective for fiscal years and interim periods beginning after November 15, 2008, the new standard requires enhanced disclosures about derivative and hedging activities that are intended to better convey the purpose of derivative use and the risks managed. A tabular format will display derivatives' fair values and gain or loss recognized and the classification of those amounts within the financial statements. SFAS 161 will not affect the company's financial position or results of operations. The new standard solely affects the disclosure of information. In September 2008, FASB issued FASB Staff Position (FSP) FAS 133-1 and FIN 45-4 which is effective for reporting periods ending after November 15, 2008 and requires additional disclosures on credit derivatives and the payment/performance risk of guarantees accounted for under SFAS 133 and FASB Interpretation No. 45, respectively. FSP FAS 133-1 and FIN 45-4 solely affects the disclosure of information and will not affect the company's financial position or operations. 2.64 0.57 2.91 0.40 2.61 0.56 2.89 0.40 Note 6. Earnings Per Share of Common Stock Set forth below is a reconciliation of the numerator and denominator for basic and diluted earnings per share calculations for the periods indicated: "Three Months Ended September 30," "Nine Months Ended September 30," 2008 2007 2008 2007 Numerator: Net income $367 $526 $2,636 $2,443 Preferred dividends (3) (3) (8) (8) "Net income available to common stockholders" $364 $523 $2,628 $2,435 Denominator: "Weighted-average number of common shares - Basic" 903,134,000 921,106,000 902,131,000 922,958,000 "Dilutive effect of the company's employee compensation plans" 4,816,000 8,210,000 5,942,000 8,816,000 "Weighted-average number of common shares - Diluted" 907,950,000 929,316,000 908,073,000 931,774,000 The following average number of stock options were antidilutive, and therefore, were not included in the diluted earnings per share calculations: "Three Months Ended September 30," "Nine Months Ended September 30," 2008 2007 2008 2007 Average Number of Stock Options 43,028,000 21,416,000 29,066,000 21,534,000 32000000 -32000000 818000000 939000000 <html><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: " Times New Roman??> <P class="MsoNormal" style="mso-layout-grid-align: none"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">Note 2.<SPAN style="mso-spacerun: yes"> </SPAN>Effect of Implementation </SPAN></B><B><SPAN style="COLOR: black; FONT-FAMILY: Arial; mso-fareast-font-family: Batang; mso-fareast-language: KO">of FASB Statement of Financial Accounting Standards </SPAN></B><B><SPAN style="COLOR: black; FONT-FAMILY: Arial; mso-fareast-font-family: Batang; mso-fareast-language: KO">No. 157 "Fair Value Measurements" (SFAS 157)</SPAN></B></P> <P class="MsoHeader"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN></B>&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">Effective January 1, 2008, the company prospectively implemented the provisions of SFAS 157 for financial assets and financial liabilities reported or disclosed at fair value. As permitted by FASB Staff Position No. FAS 157-2, the company elected to defer implementation of the provisions of SFAS 157 for non-financial assets and non-financial liabilities until January 1, 2009, except for non-financial items that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually).</SPAN></P> <P class="MsoNormal"><SPAN style="FONT-FAMILY: Arial"></SPAN>&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">SFAS 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements.<SPAN style="mso-spacerun: yes"> </SPAN>The disclosures focus on the inputs used to measure fair value.<SPAN style="mso-spacerun: yes"> </SPAN></SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial"></SPAN>&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">SFAS 157 establishes the following hierarchy for categorizing these inputs:</SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial"></SPAN>&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">Level 1<SPAN style="mso-spacerun: yes"> </SPAN>-<SPAN style="mso-spacerun: yes"> </SPAN><SPAN style="mso-tab-count: 1"></SPAN>Quoted market prices in active markets for identical assets or liabilities</SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial"></SPAN>&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; MARGIN-LEFT: 1.5in; TEXT-INDENT: -1in; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">Level 2<SPAN style="mso-spacerun: yes"> </SPAN>-<SPAN style="mso-tab-count: 1"> </SPAN>Significant other observable inputs (e.g. quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable such as interest rate and yield curves, and market-corroborated inputs) </SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; MARGIN-LEFT: 1.5in; TEXT-INDENT: -1in; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial"></SPAN>&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; MARGIN-LEFT: 1.5in; TEXT-INDENT: -1in; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">Level 3 - <SPAN style="mso-tab-count: 1"></SPAN>Significant unobservable inputs</SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial"></SPAN>&nbsp;</P> <P class="MsoHeader"><SPAN style="FONT-FAMILY: Arial">At September 30, 2008, the following financial assets and financial liabilities were measured at fair value on a recurring basis using the type of inputs shown:</SPAN><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN></B></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify">&nbsp;</P> <P class="MsoHeader"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN></B></P> <P class="MsoHeader" style="tab-stops: .5in"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"> <TABLE style="WIDTH: 456pt; BORDER-COLLAPSE: collapse" cellSpacing="0" cellPadding="0" width="609" border="0" x:str> <COLGROUP> <COL style="WIDTH: 98pt; mso-width-source: userset; mso-width-alt: 4790" width="131"> <COL style="WIDTH: 28pt; mso-width-source: userset; mso-width-alt: 1353" width="37"> <COL style="WIDTH: 57pt; mso-width-source: userset; mso-width-alt: 2779" width="76"> <COL style="WIDTH: 10pt; mso-width-source: userset; mso-width-alt: 475" width="13"> <COL style="WIDTH: 80pt; mso-width-source: userset; mso-width-alt: 3913" width="107"> <COL style="WIDTH: 12pt; mso-width-source: userset; mso-width-alt: 585" width="16"> <COL style="WIDTH: 80pt; mso-width-source: userset; mso-width-alt: 3913" width="107"> <COL style="WIDTH: 11pt; mso-width-source: userset; mso-width-alt: 548" width="15"> <COL style="WIDTH: 80pt; mso-width-source: userset; mso-width-alt: 3913" width="107"> <TBODY> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl31" style="WIDTH: 98pt; HEIGHT: 12.75pt" width="131" height="17">Financial assets</TD> <TD style="WIDTH: 28pt" width="37"></TD> <TD style="WIDTH: 57pt" width="76"></TD> <TD style="WIDTH: 10pt" width="13"></TD> <TD style="WIDTH: 80pt" width="107"></TD> <TD style="WIDTH: 12pt" width="16"></TD> <TD style="WIDTH: 80pt" width="107"></TD> <TD style="WIDTH: 11pt" width="15"></TD> <TD style="WIDTH: 80pt" width="107"></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl31" style="WIDTH: 98pt; HEIGHT: 12.75pt" width="131" height="17"></TD> <TD></TD> <TD class="xl24" x:str="September 30, ">September 30,<SPAN style="mso-spacerun: yes"></SPAN></TD> <TD></TD> <TD class="xl33" colSpan="5">Fair Value Measurements at September 30, 2008 Using</TD></TR> <TR style="HEIGHT: 12.75pt; mso-height-source: userset" height="17"> <TD style="HEIGHT: 12.75pt" height="17"></TD> <TD></TD> <TD class="xl32" style="WIDTH: 57pt" width="76">2008</TD> <TD></TD> <TD class="xl28">Level 1 Inputs</TD> <TD class="xl24"></TD> <TD class="xl28">Level 2 Inputs</TD> <TD class="xl24"></TD> <TD class="xl28">Level 3 Inputs</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD style="HEIGHT: 12.75pt" height="17"></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD style="HEIGHT: 12.75pt" height="17">Derivatives</TD> <TD></TD> <TD class="xl25" x:num="273"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>273 </TD> <TD></TD> <TD class="xl25" x:num="0"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>- </TD> <TD></TD> <TD class="xl25" x:num="273"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>273 </TD> <TD></TD> <TD class="xl25" x:num="0"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>- </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD style="HEIGHT: 12.75pt" height="17"></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR style="HEIGHT: 25.5pt" height="34"> <TD class="xl27" style="WIDTH: 98pt; HEIGHT: 25.5pt" width="131" height="34">Available-for-sale securities</TD> <TD></TD> <TD class="xl26" x:num="21"><SPAN style="mso-spacerun: yes"></SPAN>21 </TD> <TD></TD> <TD class="xl26" x:num="21"><SPAN style="mso-spacerun: yes"></SPAN>21 </TD> <TD></TD> <TD class="xl26" x:num="0"><SPAN style="mso-spacerun: yes"></SPAN>- </TD> <TD></TD> <TD class="xl26" x:num="0"><SPAN style="mso-spacerun: yes"></SPAN>- </TD></TR> <TR style="HEIGHT: 13.5pt" height="18"> <TD style="HEIGHT: 13.5pt" height="18"></TD> <TD></TD> <TD class="xl30" x:num="294" x:fmla="=SUM(C7,C5)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>294 </TD> <TD></TD> <TD class="xl30" x:num="21" x:fmla="=SUM(E7,E5)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>21 </TD> <TD></TD> <TD class="xl30" x:num="273" x:fmla="=SUM(G7,G5)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>273 </TD> <TD></TD> <TD class="xl30" x:num="0" x:fmla="=SUM(I7,I5)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>- </TD></TR> <TR style="HEIGHT: 13.5pt" height="18"> <TD style="HEIGHT: 13.5pt" height="18"></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD style="HEIGHT: 12.75pt" height="17"></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl31" style="WIDTH: 98pt; HEIGHT: 12.75pt" width="131" height="17">Financial liabilities</TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR style="HEIGHT: 12.75pt; mso-height-source: userset" height="17"> <TD class="xl31" style="WIDTH: 98pt; HEIGHT: 12.75pt" width="131" height="17"></TD> <TD></TD> <TD class="xl24">September 30,</TD> <TD></TD> <TD class="xl33" colSpan="5">Fair Value Measurements at September 30, 2008 Using</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD style="HEIGHT: 12.75pt" height="17"></TD> <TD></TD> <TD class="xl32" style="WIDTH: 57pt" width="76">2008</TD> <TD></TD> <TD class="xl28">Level 1 Inputs</TD> <TD class="xl24"></TD> <TD class="xl28">Level 2 Inputs</TD> <TD class="xl24"></TD> <TD class="xl28">Level 3 Inputs</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD style="HEIGHT: 12.75pt" height="17"></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR style="HEIGHT: 13.5pt" height="18"> <TD style="HEIGHT: 13.5pt" height="18">Derivatives</TD> <TD></TD> <TD class="xl29" x:num="225"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>225 </TD> <TD></TD> <TD class="xl29" x:num="0"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>- </TD> <TD></TD> <TD class="xl29" x:num="225"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>225 </TD> <TD></TD> <TD class="xl29" x:num="0"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>- </TD></TR> <TR style="HEIGHT: 13.5pt" height="18"> <TD style="HEIGHT: 13.5pt" height="18"></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD></TR></TBODY></TABLE> <STYLE> <!--table {mso-displayed-decimal-separator:"\."; 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margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} p.MsoHeader, li.MsoHeader, div.MsoHeader {margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; tab-stops:center 3.0in right 6.0in; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </STYLE> 2074000000 2084000000 <html><P class="MsoHeader" style="tab-stops: ..25in 1.25in 2.5in 3.75in"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">Note 8.<SPAN style="mso-spacerun: yes"> </SPAN>Goodwill and Other Intangible Assets<SPAN style="mso-spacerun: yes"> </SPAN></SPAN></B></P> <P class="MsoHeader" style="tab-stops: .25in 1.25in 2.5in 3.75in"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"><BR></SPAN></B><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">There were no significant changes in goodwill for the nine-month period ended September 30, 2008.</SPAN></P> <P class="MsoHeader" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; tab-stops: .25in 1.25in 2.5in 3.75in"><SPAN style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN>&nbsp;</P> <P class="MsoHeader" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; tab-stops: .25in 1.25in 2.5in 3.75in"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">The gross carrying amounts and accumulated amortization in total and by major class of other intangible assets are as follows:</SPAN></P> <P class="MsoHeader" style="tab-stops: .25in 1.25in 2.5in 3.75in"><SPAN style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN>&nbsp;</P> <P class="MsoHeader" style="tab-stops: .25in 1.25in 2.5in 3.75in"><SPAN style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"> <TABLE style="WIDTH: 477pt; BORDER-COLLAPSE: collapse" cellSpacing="0" cellPadding="0" width="633" border="0" x:str> <COLGROUP> <COL style="WIDTH: 140pt; mso-width-source: userset; mso-width-alt: 6802" width="186"> <COL style="WIDTH: 5pt; mso-width-source: userset; mso-width-alt: 219" width="6"> <COL style="WIDTH: 40pt; mso-width-source: userset; mso-width-alt: 1938" width="53"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 61pt; mso-width-source: userset; mso-width-alt: 2962" width="81"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 40pt; mso-width-source: userset; mso-width-alt: 1938" width="53"> <COL style="WIDTH: 14pt; mso-width-source: userset; mso-width-alt: 694" width="19"> <COL style="WIDTH: 40pt; mso-width-source: userset; mso-width-alt: 1938" width="53"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 61pt; mso-width-source: userset; mso-width-alt: 2962" width="81"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 40pt; mso-width-source: userset; mso-width-alt: 1938" width="53"> <TBODY> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl24" style="WIDTH: 140pt; HEIGHT: 12.75pt" width="186" height="17"></TD> <TD class="xl24" style="WIDTH: 5pt" width="6"></TD> <TD class="xl37" style="WIDTH: 159pt" width="211" colSpan="5" x:num="39721">September 30, 2008</TD> <TD class="xl24" style="WIDTH: 14pt" width="19"></TD> <TD class="xl38" style="WIDTH: 159pt" width="211" colSpan="5" x:num="39447">December 31, 2007</TD></TR> <TR style="HEIGHT: 27pt; mso-height-source: userset" height="36"> <TD class="xl24" style="WIDTH: 140pt; HEIGHT: 27pt" width="186" height="36"></TD> <TD class="xl24" style="WIDTH: 5pt" width="6"></TD> <TD class="xl25" style="WIDTH: 40pt" width="53">Gross</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl25" style="WIDTH: 61pt" width="81">Accumulated Amortization</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl25" style="WIDTH: 40pt" width="53">Net</TD> <TD class="xl28" style="WIDTH: 14pt" width="19"></TD> <TD class="xl25" style="WIDTH: 40pt" width="53">Gross</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl25" style="WIDTH: 61pt" width="81">Accumulated Amortization</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl25" style="WIDTH: 40pt" width="53">Net</TD></TR> <TR style="HEIGHT: 27pt; mso-height-source: userset" height="36"> <TD class="xl24" style="WIDTH: 140pt; HEIGHT: 27pt" width="186" height="36">Intangible assets subject to <BR><SPAN style="mso-spacerun: yes"></SPAN>amortization (Definite-lived):</TD> <TD class="xl24" style="WIDTH: 5pt" width="6"></TD> <TD class="xl24" style="WIDTH: 40pt" width="53"></TD> <TD class="xl24" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" style="WIDTH: 61pt" width="81"></TD> <TD class="xl24" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" style="WIDTH: 40pt" width="53"></TD> <TD class="xl24" style="WIDTH: 14pt" width="19"></TD> <TD class="xl24" style="WIDTH: 40pt" width="53"></TD> <TD class="xl24" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" style="WIDTH: 61pt" width="81"></TD> <TD class="xl24" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" style="WIDTH: 40pt" width="53"></TD></TR> <TR style="HEIGHT: 28.5pt; mso-height-source: userset" height="38"> <TD class="xl29" style="WIDTH: 140pt; HEIGHT: 28.5pt" width="186" height="38">Purchased and licensed <BR><SPAN style="mso-spacerun: yes"></SPAN>technology</TD> <TD class="xl24" style="WIDTH: 5pt" width="6"></TD> <TD class="xl30" x:num="2417"><SPAN style="mso-spacerun: yes"></SPAN>$2,417 </TD> <TD class="xl30"></TD> <TD class="xl30" x:num="-1321"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>(1,321)</TD> <TD class="xl30"></TD> <TD class="xl30" x:num="1096" x:fmla="=SUM(C4:E4)"><SPAN style="mso-spacerun: yes"></SPAN>$1,096 </TD> <TD class="xl30"></TD> <TD class="xl30" x:num="2410"><SPAN style="mso-spacerun: yes"></SPAN>$2,410 </TD> <TD class="xl30"></TD> <TD class="xl30" x:num="-1142"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>(1,142)</TD> <TD class="xl30"></TD> <TD class="xl30" x:num="1268" x:fmla="=SUM(I4:K4)"><SPAN style="mso-spacerun: yes"></SPAN>$1,268 </TD></TR> <TR style="HEIGHT: 12.75pt; mso-height-source: userset" height="17"> <TD class="xl29" style="WIDTH: 140pt; HEIGHT: 12.75pt" width="186" height="17">Patents</TD> <TD class="xl24" style="WIDTH: 5pt" width="6"></TD> <TD class="xl27" x:num="139"><SPAN style="mso-spacerun: yes"></SPAN>139 </TD> <TD class="xl27"></TD> <TD class="xl27" x:num="-53"><SPAN style="mso-spacerun: yes"></SPAN>(53)</TD> <TD class="xl27"></TD> <TD class="xl33" x:num="86" x:fmla="=SUM(C5:E5)"><SPAN style="mso-spacerun: yes"></SPAN>86 </TD> <TD class="xl27"></TD> <TD class="xl27" x:num="155"><SPAN style="mso-spacerun: yes"></SPAN>155 </TD> <TD class="xl27"></TD> <TD class="xl27" x:num="-56"><SPAN style="mso-spacerun: yes"></SPAN>(56)</TD> <TD class="xl27"></TD> <TD class="xl33" x:num="99" x:fmla="=SUM(I5:K5)"><SPAN style="mso-spacerun: yes"></SPAN>99 </TD></TR> <TR style="HEIGHT: 12.75pt; mso-height-source: userset" height="17"> <TD class="xl29" style="WIDTH: 140pt; HEIGHT: 12.75pt" width="186" height="17">Trademarks</TD> <TD class="xl24" style="WIDTH: 5pt" width="6"></TD> <TD class="xl27" x:num="58"><SPAN style="mso-spacerun: yes"></SPAN>58 </TD> <TD class="xl27"></TD> <TD class="xl27" x:num="-18"><SPAN style="mso-spacerun: yes"></SPAN>(18)</TD> <TD class="xl27"></TD> <TD class="xl33" x:num="40" x:fmla="=SUM(C6:E6)"><SPAN style="mso-spacerun: yes"></SPAN>40 </TD> <TD class="xl27"></TD> <TD class="xl27" x:num="53"><SPAN style="mso-spacerun: yes"></SPAN>53 </TD> <TD class="xl27"></TD> <TD class="xl27" x:num="-17"><SPAN style="mso-spacerun: yes"></SPAN>(17)</TD> <TD class="xl27"></TD> <TD class="xl33" x:num="36" x:fmla="=SUM(I6:K6)"><SPAN style="mso-spacerun: yes"></SPAN>36 </TD></TR> <TR style="HEIGHT: 12.75pt; mso-height-source: userset" height="17"> <TD class="xl29" style="WIDTH: 140pt; HEIGHT: 12.75pt" width="186" height="17">Other</TD> <TD class="xl24" style="WIDTH: 5pt" width="6"></TD> <TD class="xl26" x:num="639"><SPAN style="mso-spacerun: yes"></SPAN>639 </TD> <TD class="xl27"></TD> <TD class="xl26" x:num="-265"><SPAN style="mso-spacerun: yes"></SPAN>(265)</TD> <TD class="xl27"></TD> <TD class="xl34" x:num="374" x:fmla="=SUM(C7:E7)"><SPAN style="mso-spacerun: yes"></SPAN>374 </TD> <TD class="xl27"></TD> <TD class="xl26" x:num="536"><SPAN style="mso-spacerun: yes"></SPAN>536 </TD> <TD class="xl27"></TD> <TD class="xl26" x:num="-237"><SPAN style="mso-spacerun: yes"></SPAN>(237)</TD> <TD class="xl27"></TD> <TD class="xl34" x:num="299" x:fmla="=SUM(I7:K7)"><SPAN style="mso-spacerun: yes"></SPAN>299 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl24" style="WIDTH: 140pt; HEIGHT: 12.75pt" width="186" height="17"></TD> <TD class="xl24" style="WIDTH: 5pt" width="6"></TD> <TD class="xl24" style="WIDTH: 40pt" width="53"></TD> <TD class="xl24" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" style="WIDTH: 61pt" width="81"></TD> <TD class="xl24" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" style="WIDTH: 40pt" width="53"></TD> <TD class="xl24" style="WIDTH: 14pt" width="19"></TD> <TD class="xl24" style="WIDTH: 40pt" width="53"></TD> <TD class="xl24" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" style="WIDTH: 61pt" width="81"></TD> <TD class="xl24" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" style="WIDTH: 40pt" width="53"></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl24" style="WIDTH: 140pt; HEIGHT: 12.75pt" width="186" height="17"></TD> <TD class="xl24" style="WIDTH: 5pt" width="6"></TD> <TD class="xl26" x:num="3253" x:fmla="=SUM(C4:C7)"><SPAN style="mso-spacerun: yes"></SPAN>3,253 </TD> <TD class="xl27" align="middle" x:num="0" x:fmla="=SUM(D4:D7)"></TD> <TD class="xl26" x:num="-1657" x:fmla="=SUM(E4:E7)"><SPAN style="mso-spacerun: yes"></SPAN>(1,657)</TD> <TD class="xl27" align="middle" x:num="0" x:fmla="=SUM(F4:F7)"></TD> <TD class="xl26" x:num="1596" x:fmla="=SUM(G4:G7)"><SPAN style="mso-spacerun: yes"></SPAN>1,596 </TD> <TD class="xl27"></TD> <TD class="xl26" x:num="3154" x:fmla="=SUM(I4:I7)"><SPAN style="mso-spacerun: yes"></SPAN>3,154 </TD> <TD class="xl27"></TD> <TD class="xl26" x:num="-1452" x:fmla="=SUM(K4:K7)"><SPAN style="mso-spacerun: yes"></SPAN>(1,452)</TD> <TD class="xl27" align="middle" x:num="0" x:fmla="=SUM(L4:L7)"></TD> <TD class="xl26" x:num="1702" x:fmla="=SUM(M4:M7)"><SPAN style="mso-spacerun: yes"></SPAN>1,702 </TD></TR> <TR style="HEIGHT: 5.25pt; mso-height-source: userset" height="7"> <TD class="xl24" style="WIDTH: 140pt; HEIGHT: 5.25pt" width="186" height="7"></TD> <TD class="xl24" style="WIDTH: 5pt" width="6"></TD> <TD class="xl24" style="WIDTH: 40pt" width="53"></TD> <TD class="xl24" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" style="WIDTH: 61pt" width="81"></TD> <TD class="xl24" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" style="WIDTH: 40pt" width="53"></TD> <TD class="xl24" style="WIDTH: 14pt" width="19"></TD> <TD class="xl24" style="WIDTH: 40pt" width="53"></TD> <TD class="xl24" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" style="WIDTH: 61pt" width="81"></TD> <TD class="xl24" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" style="WIDTH: 40pt" width="53"></TD></TR> <TR style="HEIGHT: 28.5pt; mso-height-source: userset" height="38"> <TD class="xl24" style="WIDTH: 140pt; HEIGHT: 28.5pt" width="186" height="38">Intangible assets not subject to <BR><SPAN style="mso-spacerun: yes"></SPAN>amortization (Indefinite-lived):</TD> <TD class="xl24" style="WIDTH: 5pt" width="6"></TD> <TD class="xl24" style="WIDTH: 40pt" width="53"></TD> <TD class="xl24" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" style="WIDTH: 61pt" width="81"></TD> <TD class="xl24" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" style="WIDTH: 40pt" width="53"></TD> <TD class="xl24" style="WIDTH: 14pt" width="19"></TD> <TD class="xl24" style="WIDTH: 40pt" width="53"></TD> <TD class="xl24" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" style="WIDTH: 61pt" width="81"></TD> <TD class="xl24" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" style="WIDTH: 40pt" width="53"></TD></TR> <TR style="HEIGHT: 12.75pt; mso-height-source: userset" height="17"> <TD class="xl29" style="WIDTH: 140pt; HEIGHT: 12.75pt" width="186" height="17">Trademarks / tradenames</TD> <TD class="xl24" style="WIDTH: 5pt" width="6"></TD> <TD class="xl27" x:num="179"><SPAN style="mso-spacerun: yes"></SPAN>179 </TD> <TD class="xl27"></TD> <TD class="xl35" x:num="0"><SPAN style="mso-spacerun: yes"></SPAN>- </TD> <TD class="xl27"></TD> <TD class="xl27" x:num="179" x:fmla="=SUM(C12:E12)"><SPAN style="mso-spacerun: yes"></SPAN>179 </TD> <TD class="xl27"></TD> <TD class="xl27" x:num="179"><SPAN style="mso-spacerun: yes"></SPAN>179 </TD> <TD class="xl27"></TD> <TD class="xl35" x:str=" -"><SPAN style="mso-spacerun: yes"></SPAN>-<SPAN style="mso-spacerun: yes"></SPAN></TD> <TD class="xl27"></TD> <TD class="xl27" x:num="179" x:fmla="=SUM(I12:K12)"><SPAN style="mso-spacerun: yes"></SPAN>179 </TD></TR> <TR style="HEIGHT: 12.75pt; mso-height-source: userset" height="17"> <TD class="xl29" style="WIDTH: 140pt; HEIGHT: 12.75pt" width="186" height="17">Pioneer germplasm</TD> <TD class="xl24" style="WIDTH: 5pt" width="6"></TD> <TD class="xl26" x:num="975"><SPAN style="mso-spacerun: yes"></SPAN>975 </TD> <TD class="xl27"></TD> <TD class="xl36" x:num="0"><SPAN style="mso-spacerun: yes"></SPAN>- </TD> <TD class="xl27"></TD> <TD class="xl26" x:num="975" x:fmla="=SUM(C13:E13)"><SPAN style="mso-spacerun: yes"></SPAN>975 </TD> <TD class="xl27"></TD> <TD class="xl26" x:num="975"><SPAN style="mso-spacerun: yes"></SPAN>975 </TD> <TD class="xl27"></TD> <TD class="xl36" x:str=" -"><SPAN style="mso-spacerun: yes"></SPAN>-<SPAN style="mso-spacerun: yes"></SPAN></TD> <TD class="xl27"></TD> <TD class="xl26" x:num="975" x:fmla="=SUM(I13:K13)"><SPAN style="mso-spacerun: yes"></SPAN>975 </TD></TR> <TR style="HEIGHT: 8.25pt; mso-height-source: userset" height="11"> <TD class="xl24" style="WIDTH: 140pt; HEIGHT: 8.25pt" width="186" height="11"></TD> <TD class="xl24" style="WIDTH: 5pt" width="6"></TD> <TD class="xl24" style="WIDTH: 40pt" width="53"></TD> <TD class="xl24" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" style="WIDTH: 61pt" width="81"></TD> <TD class="xl24" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" style="WIDTH: 40pt" width="53"></TD> <TD class="xl24" style="WIDTH: 14pt" width="19"></TD> <TD class="xl24" style="WIDTH: 40pt" width="53"></TD> <TD class="xl24" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" style="WIDTH: 61pt" width="81"></TD> <TD class="xl24" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" style="WIDTH: 40pt" width="53"></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl24" style="WIDTH: 140pt; HEIGHT: 12.75pt" width="186" height="17"></TD> <TD class="xl24" style="WIDTH: 5pt" width="6"></TD> <TD class="xl32" x:num="1154" x:fmla="=SUM(C12:C13)"><SPAN style="mso-spacerun: yes"></SPAN>$1,154 </TD> <TD class="xl30"></TD> <TD class="xl32" x:num="0" x:fmla="=SUM(E12:E13)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>- </TD> <TD class="xl30"></TD> <TD class="xl32" x:num="1154" x:fmla="=SUM(G12:G13)"><SPAN style="mso-spacerun: yes"></SPAN>$1,154 </TD> <TD class="xl30"></TD> <TD class="xl32" x:num="1154" x:fmla="=SUM(I12:I13)"><SPAN style="mso-spacerun: yes"></SPAN>$1,154 </TD> <TD class="xl30"></TD> <TD class="xl32" x:num="0"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>- </TD> <TD class="xl30"></TD> <TD class="xl32" x:num="1154" x:fmla="=SUM(M12:M13)"><SPAN style="mso-spacerun: yes"></SPAN>$1,154 </TD></TR> <TR style="HEIGHT: 6.75pt; mso-height-source: userset" height="9"> <TD class="xl24" style="WIDTH: 140pt; HEIGHT: 6.75pt" width="186" height="9"></TD> <TD class="xl24" style="WIDTH: 5pt" width="6"></TD> <TD class="xl24" style="WIDTH: 40pt" width="53"></TD> <TD class="xl24" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" style="WIDTH: 61pt" width="81"></TD> <TD class="xl24" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" style="WIDTH: 40pt" width="53"></TD> <TD class="xl24" style="WIDTH: 14pt" width="19"></TD> <TD class="xl24" style="WIDTH: 40pt" width="53"></TD> <TD class="xl24" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" style="WIDTH: 61pt" width="81"></TD> <TD class="xl24" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" style="WIDTH: 40pt" width="53"></TD></TR> <TR style="HEIGHT: 13.5pt" height="18"> <TD class="xl24" style="WIDTH: 140pt; HEIGHT: 13.5pt" width="186" height="18">Total</TD> <TD class="xl24" style="WIDTH: 5pt" width="6"></TD> <TD class="xl31" x:num="4407" x:fmla="=+C9+C15"><SPAN style="mso-spacerun: yes"></SPAN>$4,407 </TD> <TD class="xl30"></TD> <TD class="xl31" x:num="-1657" x:fmla="=+E9+E15"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>(1,657)</TD> <TD class="xl30"></TD> <TD class="xl31" x:num="2750" x:fmla="=+G9+G15"><SPAN style="mso-spacerun: yes"></SPAN>$2,750 </TD> <TD class="xl30"></TD> <TD class="xl31" x:num="4308" x:fmla="=+I9+I15"><SPAN style="mso-spacerun: yes"></SPAN>$4,308 </TD> <TD class="xl30"></TD> <TD class="xl31" x:num="-1452" x:fmla="=+K9+K15"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>(1,452)</TD> <TD class="xl30"></TD> <TD class="xl31" x:num="2856" x:fmla="=+M9+M15"><SPAN style="mso-spacerun: yes"></SPAN>$2,856 </TD></TR> <TR style="HEIGHT: 6pt; mso-height-source: userset" height="8"> <TD style="HEIGHT: 6pt" height="8"></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD></TR></TBODY></TABLE> <STYLE> <!--table {mso-displayed-decimal-separator:"\."; mso-displayed-thousand-separator:"\,";} @page {margin:1.0in .75in 1.0in .75in; mso-header-margin:.5in; mso-footer-margin:.5in;} tr {mso-height-source:auto;} col {mso-width-source:auto;} br {mso-data-placement:same-cell;} td {padding-top:1px; padding-right:1px; padding-left:1px; mso-ignore:padding; color:windowtext; font-size:10.0pt; font-weight:400; font-style:normal; text-decoration:none; font-family:Arial; mso-generic-font-family:auto; mso-font-charset:0; mso-number-format:General; text-align:general; vertical-align:bottom; border:none; mso-background-source:auto; mso-pattern:auto; mso-protection:locked visible; white-space:nowrap; mso-rotate:0;} ..xl24 {font-family:Arial, sans-serif; mso-font-charset:0; vertical-align:top; white-space:normal;} .xl25 {font-family:Arial, sans-serif; mso-font-charset:0; text-align:center; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none; white-space:normal;} .xl26 {font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"_\(* \#\,\#\#0_\)\;_\(* \\\(\#\,\#\#0\\\)\;_\(* \0022-\0022_\)\;_\(\@_\)"; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none;} .xl27 {font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"_\(* \#\,\#\#0_\)\;_\(* \\\(\#\,\#\#0\\\)\;_\(* \0022-\0022_\)\;_\(\@_\)";} .xl28 {font-family:Arial, sans-serif; mso-font-charset:0; white-space:normal;} .xl29 {font-family:Arial, sans-serif; mso-font-charset:0; text-align:left; vertical-align:top; white-space:normal; padding-left:24px; mso-char-indent-count:2;} .xl30 {font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"_\(\0022$\0022* \#\,\#\#0_\)\;_\(\0022$\0022* \\\(\#\,\#\#0\\\)\;_\(\0022$\0022* \0022-\0022_\)\;_\(\@_\)";} .xl31 {font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"_\(\0022$\0022* \#\,\#\#0_\)\;_\(\0022$\0022* \\\(\#\,\#\#0\\\)\;_\(\0022$\0022* \0022-\0022_\)\;_\(\@_\)"; border-top:none; border-right:none; border-bottom:2.0pt double windowtext; border-left:none;} ..xl32 {font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"_\(\0022$\0022* \#\,\#\#0_\)\;_\(\0022$\0022* \\\(\#\,\#\#0\\\)\;_\(\0022$\0022* \0022-\0022_\)\;_\(\@_\)"; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none;} ..xl33 {font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"_\(* \#\,\#\#0_\)\;_\(* \\\(\#\,\#\#0\\\)\;_\(* \0022-\0022??_\)\;_\(\@_\)";} .xl34 {font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"_\(* \#\,\#\#0_\)\;_\(* \\\(\#\,\#\#0\\\)\;_\(* \0022-\0022??_\)\;_\(\@_\)"; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none;} ..xl35 {font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"_\(* \#\,\#\#0_\)\;_\(* \\\(\#\,\#\#0\\\)\;_\(* \0022-\0022_\)\;_\(\@_\)"; text-align:right;} ..xl36 {font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"_\(* \#\,\#\#0_\)\;_\(* \\\(\#\,\#\#0\\\)\;_\(* \0022-\0022_\)\;_\(\@_\)"; text-align:right; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none;} ..xl37 {font-weight:700; font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"\[ENG\]\[$-409\]mmmm\\ d\\\,\\ yyyy\;\@"; text-align:center; vertical-align:top; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none; white-space:normal;} .xl38 {font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"\[ENG\]\[$-409\]mmmm\\ d\\\,\\ yyyy\;\@"; text-align:center; vertical-align:top; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none; white-space:normal;} --> </STYLE> </SPAN></P> <P class="MsoHeader" style="tab-stops: ..25in 1.25in 2.5in 3.75in"><SPAN style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN>&nbsp;</P> <P class="MsoHeader" style="tab-stops: .25in 1.25in 2.5in 3.75in"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 6pt; FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN></B></P> <P class="MsoHeader" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; tab-stops: .25in 1.25in 2.5in 3.75in"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">The aggregate amortization expense for definitive-lived intangible assets was $54 and $53 for the three-month periods ended September 30, 2008 and 2007, respectively, and $226 and $163 for the nine-month periods ended September 30, 2008 and 2007.<SPAN style="mso-spacerun: yes"> </SPAN>The estimated aggregate pretax amortization expense for 2008 and each of the next five years is approximately $280, $290, $275, $260, $210 and $180.</SPAN></P> <P class="MsoHeader" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; tab-stops: .25in 1.25in 2.5in 3.75in"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN>&nbsp;</P> <STYLE> v\:* {behavior:url(#default#VML);} o\:* {behavior:url(#default#VML);} w\:* {behavior:url(#default#VML);} .shape {behavior:url(#default#VML);} <!-- /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} p.MsoHeader, li.MsoHeader, div.MsoHeader {margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; tab-stops:center 3.0in right 6.0in; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </STYLE> 3250000000 630000000 3352000000 470000000 <html><P class="MsoHeader" style="MARGIN-BOTTOM: 6pt; tab-stops: .25in 1.25in 2.5in 3.75in"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">Note 5.<SPAN style="mso-spacerun: yes"> </SPAN>Provision for Income Taxes<SPAN style="mso-spacerun: yes"> </SPAN></SPAN></B></P> <P class="MsoHeader" style="TEXT-JUSTIFY: inter-ideograph; MARGIN-BOTTOM: 6pt; TEXT-ALIGN: justify; tab-stops: .25in 1.25in 2.5in 3.75in"><SPAN style="COLOR: black; FONT-FAMILY: Arial; mso-fareast-font-family: MS Mincho; mso-fareast-language: JA">In the third quarter 2008, the company recorded a tax provision of $98, including $85 of tax expense associated with the company's policy of hedging the foreign currency-denominated monetary assets and liabilities of its operations, $81 of tax benefit related to the hurricane related charge and $18 tax benefit related to favorable tax settlements. Year-to-date 2008 also includes $133 of tax benefit associated with the company's hedging policy.</SPAN></P> <P class="MsoHeader" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="COLOR: black; FONT-FAMILY: Arial; mso-fareast-font-family: MS Mincho; mso-fareast-language: JA">In the third quarter 2007, the company recorded a tax provision of $102, including $38 of tax benefit associated with the company's policy of hedging the foreign currency-denominated monetary assets and liabilities of its operations. Year-to-date 2007 also includes $5 of tax expense associated with the company's hedging policy.</SPAN></P> <P class="MsoHeader" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="COLOR: black; FONT-FAMILY: Arial; mso-fareast-font-family: MS Mincho; mso-fareast-language: JA"></SPAN>&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">Each year the company files hundreds of tax returns in the various national, state and local income taxing jurisdictions in which it operates.<SPAN style="mso-spacerun: yes"> </SPAN>These tax returns are subject to examination and possible challenge by the taxing authorities.<SPAN style="mso-spacerun: yes"> </SPAN>Positions challenged by the taxing authorities may be settled or appealed by the company.<SPAN style="mso-spacerun: yes"> </SPAN>As a result, there is an uncertainty in income taxes recognized in the company's financial statements in accordance with SFAS No. 109, "Accounting for Income Taxes" (SFAS 109) and FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" (FIN 48).<SPAN style="mso-spacerun: yes"> </SPAN></SPAN><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-weight: bold; mso-fareast-font-family: Batang; mso-fareast-language: KO">During the third quarter 2008, the company reduced its global unrecognized tax benefits approximately $180, the majority of the reduction due to the resolution of uncertain tax positions with various tax authorities. </SPAN><SPAN style="COLOR: black; FONT-FAMILY: Arial">It is reasonably possible that changes to the company's global unrecognized tax benefits could be significant, however, due to the uncertainty regarding the timing of completion of audits and possible outcomes, a current estimate of the range of increases or decreases that may occur within the next twelve months can not be made.</SPAN><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-weight: bold; mso-fareast-font-family: Batang; mso-fareast-language: KO"></SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN>&nbsp;</P> <STYLE> <!-- /* Font Definitions */ @font-face {font-family:"MS Mincho"; 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font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} p.MsoHeader, li.MsoHeader, div.MsoHeader {margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; tab-stops:center 3.0in right 6.0in; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </STYLE> 802000000 102000000 706000000 98000000 -1970000000 -3190000000 2856000000 2750000000 320000000 113000000 272000000 98000000 <html><P class="MsoHeader" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; tab-stops: .25in 1.25in 2.5in 3.75in"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">Note 7.<SPAN style="mso-spacerun: yes"> </SPAN>Inventories</SPAN></B></P> <P><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman; mso-fareast-font-family: Times New Roman; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"> <TABLE style="WIDTH: 459pt; BORDER-COLLAPSE: collapse" cellSpacing="0" cellPadding="0" width="613" border="0" x:str> <COLGROUP> <COL style="WIDTH: 287pt; mso-width-source: userset; mso-width-alt: 14006" width="383"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 77pt; mso-width-source: userset; mso-width-alt: 3766" width="103"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 77pt; mso-width-source: userset; mso-width-alt: 3766" width="103"> <TBODY> <TR style="HEIGHT: 27.75pt; mso-height-source: userset" height="37"> <TD class="xl29" style="WIDTH: 287pt; HEIGHT: 27.75pt" width="383" height="37"></TD> <TD class="xl29" style="WIDTH: 9pt" width="12"></TD> <TD class="xl31" style="WIDTH: 77pt" width="103">September 30,<BR>2008</TD> <TD class="xl30" style="WIDTH: 9pt" width="12"></TD> <TD class="xl32" style="WIDTH: 77pt" width="103">December 31, 2007</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl29" style="WIDTH: 287pt; HEIGHT: 12.75pt" width="383" height="17"></TD> <TD class="xl29" style="WIDTH: 9pt" width="12"></TD> <TD class="xl29" style="WIDTH: 77pt" width="103"></TD> <TD class="xl29" style="WIDTH: 9pt" width="12"></TD> <TD class="xl29" style="WIDTH: 77pt" width="103"></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl29" style="WIDTH: 287pt; HEIGHT: 12.75pt" width="383" height="17">Finished products</TD> <TD class="xl29" style="WIDTH: 9pt" width="12"></TD> <TD class="xl25" x:num="3658"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>3,658 </TD> <TD class="xl25"></TD> <TD class="xl25" x:num="3043"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>3,043 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl29" style="WIDTH: 287pt; HEIGHT: 12.75pt" width="383" height="17">Semifinished products</TD> <TD class="xl29" style="WIDTH: 9pt" width="12"></TD> <TD class="xl26" x:num="1684"><SPAN style="mso-spacerun: yes"></SPAN>1,684 </TD> <TD class="xl26"></TD> <TD class="xl26" x:num="1865"><SPAN style="mso-spacerun: yes"></SPAN>1,865 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl29" style="WIDTH: 287pt; HEIGHT: 12.75pt" width="383" height="17">Raw materials and supplies</TD> <TD class="xl29" style="WIDTH: 9pt" width="12"></TD> <TD class="xl27" x:num="1118"><SPAN style="mso-spacerun: yes"></SPAN>1,118 </TD> <TD class="xl26"></TD> <TD class="xl27" x:num="1000"><SPAN style="mso-spacerun: yes"></SPAN>1,000 </TD></TR> <TR style="HEIGHT: 7.5pt; mso-height-source: userset" height="10"> <TD class="xl29" style="WIDTH: 287pt; HEIGHT: 7.5pt" width="383" height="10"></TD> <TD class="xl29" style="WIDTH: 9pt" width="12"></TD> <TD class="xl29" style="WIDTH: 77pt" width="103"></TD> <TD class="xl29" style="WIDTH: 9pt" width="12"></TD> <TD class="xl29" style="WIDTH: 77pt" width="103"></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl29" style="WIDTH: 287pt; HEIGHT: 12.75pt" width="383" height="17"></TD> <TD class="xl29" style="WIDTH: 9pt" width="12"></TD> <TD class="xl26" x:num="6460" x:fmla="=SUM(C3:C5)"><SPAN style="mso-spacerun: yes"></SPAN>6,460 </TD> <TD class="xl26"></TD> <TD class="xl26" x:num="5908" x:fmla="=SUM(E3:E5)"><SPAN style="mso-spacerun: yes"></SPAN>5,908 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl24" style="WIDTH: 287pt; HEIGHT: 12.75pt" width="383" height="17">Adjustment of inventories to a last-in, first-out (LIFO) basis</TD> <TD class="xl29" style="WIDTH: 9pt" width="12"></TD> <TD class="xl27" x:num="-825"><SPAN style="mso-spacerun: yes"></SPAN>(825)</TD> <TD class="xl26"></TD> <TD class="xl27" x:num="-630"><SPAN style="mso-spacerun: yes"></SPAN>(630)</TD></TR> <TR style="HEIGHT: 6.75pt; mso-height-source: userset" height="9"> <TD class="xl29" style="WIDTH: 287pt; HEIGHT: 6.75pt" width="383" height="9"></TD> <TD class="xl29" style="WIDTH: 9pt" width="12"></TD> <TD class="xl29" style="WIDTH: 77pt" width="103"></TD> <TD class="xl29" style="WIDTH: 9pt" width="12"></TD> <TD class="xl29" style="WIDTH: 77pt" width="103"></TD></TR> <TR style="HEIGHT: 13.5pt" height="18"> <TD class="xl29" style="WIDTH: 287pt; HEIGHT: 13.5pt" width="383" height="18">Total</TD> <TD class="xl29" style="WIDTH: 9pt" width="12"></TD> <TD class="xl28" x:num="5635" x:fmla="=SUM(C7:C8)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>5,635 </TD> <TD class="xl25"></TD> <TD class="xl28" x:num="5278" x:fmla="=SUM(E7:E8)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>5,278 </TD></TR> <TR style="HEIGHT: 5.25pt; mso-height-source: userset" height="7"> <TD class="xl29" style="WIDTH: 287pt; HEIGHT: 5.25pt" width="383" height="7"></TD> <TD class="xl29" style="WIDTH: 9pt" width="12"></TD> <TD class="xl29" style="WIDTH: 77pt" width="103"></TD> <TD class="xl29" style="WIDTH: 9pt" width="12"></TD> <TD class="xl29" style="WIDTH: 77pt" width="103"></TD></TR></TBODY></TABLE> <STYLE> <!--table {mso-displayed-decimal-separator:"\."; mso-displayed-thousand-separator:"\,";} @page {margin:1.0in .75in 1.0in .75in; mso-header-margin:.5in; mso-footer-margin:.5in;} tr {mso-height-source:auto;} col {mso-width-source:auto;} br {mso-data-placement:same-cell;} td {padding-top:1px; padding-right:1px; padding-left:1px; mso-ignore:padding; color:windowtext; font-size:10.0pt; font-weight:400; font-style:normal; text-decoration:none; font-family:Arial; mso-generic-font-family:auto; mso-font-charset:0; mso-number-format:General; text-align:general; vertical-align:bottom; border:none; mso-background-source:auto; mso-pattern:auto; mso-protection:locked visible; white-space:nowrap; mso-rotate:0;} ..xl24 {font-family:Arial, sans-serif; mso-font-charset:0; white-space:normal;} ..xl25 {mso-number-format:"_\(\0022$\0022* \#\,\#\#0_\)\;_\(\0022$\0022* \\\(\#\,\#\#0\\\)\;_\(\0022$\0022* \0022-\0022_\)\;_\(\@_\)";} .xl26 {mso-number-format:"_\(* \#\,\#\#0_\)\;_\(* \\\(\#\,\#\#0\\\)\;_\(* \0022-\0022_\)\;_\(\@_\)";} .xl27 {mso-number-format:"_\(* \#\,\#\#0_\)\;_\(* \\\(\#\,\#\#0\\\)\;_\(* \0022-\0022_\)\;_\(\@_\)"; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none;} ..xl28 {mso-number-format:"_\(\0022$\0022* \#\,\#\#0_\)\;_\(\0022$\0022* \\\(\#\,\#\#0\\\)\;_\(\0022$\0022* \0022-\0022_\)\;_\(\@_\)"; border-top:none; border-right:none; border-bottom:2.0pt double windowtext; border-left:none;} .xl29 {font-family:Arial, sans-serif; mso-font-charset:0; vertical-align:top; white-space:normal;} .xl30 {font-weight:700; font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"\[ENG\]\[$-409\]mmmm\\ d\\\,\\ yyyy\;\@"; vertical-align:top; white-space:normal;} .xl31 {font-weight:700; font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"\@"; text-align:center; vertical-align:top; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none; white-space:normal;} ..xl32 {font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"\@"; text-align:center; vertical-align:top; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none; white-space:normal;} --> </STYLE> </SPAN></B> <STYLE> v\:* {behavior:url(#default#VML);} o\:* {behavior:url(#default#VML);} w\:* {behavior:url(#default#VML);} .shape {behavior:url(#default#VML);} <!-- /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} p.MsoHeader, li.MsoHeader, div.MsoHeader {margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; tab-stops:center 3.0in right 6.0in; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </STYLE> </P> 5278000000 5635000000 22553000000 25011000000 34131000000 38128000000 8541000000 9421000000 5955000000 7402000000 131000000 152000000 442000000 443000000 5000000 2000000 10000000 5000000 -1043000000 1908000000 -1020000000 -1682000000 1426000000 494000000 2443000000 526000000 2636000000 367000000 157000000 162000000 4363000000 5210000000 <html><P class="MsoHeader" style="tab-stops: ..5in"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">Note 3.<SPAN style="mso-spacerun: yes"> </SPAN>Other Income, Net </SPAN></B></P> <P class="MsoHeader" style="tab-stops: ..5in"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN>&nbsp;</P> <P class="MsoHeader" style="tab-stops: .5in"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"> <TABLE style="WIDTH: 444pt; BORDER-COLLAPSE: collapse" cellSpacing="0" cellPadding="0" width="592" border="0" x:str> <COLGROUP> <COL style="WIDTH: 216pt; mso-width-source: userset; mso-width-alt: 10532" width="288"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 48pt" width="64"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 48pt" width="64"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 48pt" width="64"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 48pt" width="64"> <TBODY> <TR style="HEIGHT: 25.5pt; mso-height-source: userset" height="34"> <TD class="xl28" style="WIDTH: 216pt; HEIGHT: 25.5pt" width="288" height="34"></TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl31" style="WIDTH: 105pt" width="140" colSpan="3">Three Months Ended September 30,</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl31" style="WIDTH: 105pt" width="140" colSpan="3">Nine Months Ended September 30,</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl28" style="WIDTH: 216pt; HEIGHT: 12.75pt" width="288" height="17"></TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl30" style="WIDTH: 48pt" width="64" x:num>2008</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl31" style="WIDTH: 48pt" width="64" x:num>2007</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl30" style="WIDTH: 48pt" width="64" x:num>2008</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl31" style="WIDTH: 48pt" width="64" x:num>2007</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl28" style="WIDTH: 216pt; HEIGHT: 12.75pt" width="288" height="17"></TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl28" style="WIDTH: 48pt" width="64"></TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl28" style="WIDTH: 48pt" width="64"></TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl28" style="WIDTH: 48pt" width="64"></TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl28" style="WIDTH: 48pt" width="64"></TD></TR> <TR style="HEIGHT: 14.25pt" height="19"> <TD class="xl28" style="WIDTH: 216pt; HEIGHT: 14.25pt" width="288" height="19">Cozaar <SUP>(R)</SUP><FONT class="font5">/Hyzaar<SUP>(R)</SUP></FONT><FONT class="font5"> income</FONT></TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" x:num="258"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>258 </TD> <TD class="xl24"></TD> <TD class="xl24" x:num="235"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>235 </TD> <TD class="xl24"></TD> <TD class="xl24" x:num="755"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>755 </TD> <TD class="xl24"></TD> <TD class="xl24" x:num="698"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>698 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl28" style="WIDTH: 216pt; HEIGHT: 12.75pt" width="288" height="17">Royalty income</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl25" x:num="31"><SPAN style="mso-spacerun: yes"></SPAN>31 </TD> <TD class="xl25"></TD> <TD class="xl25" x:num="28"><SPAN style="mso-spacerun: yes"></SPAN>28 </TD> <TD class="xl25"></TD> <TD class="xl25" x:num="78"><SPAN style="mso-spacerun: yes"></SPAN>78 </TD> <TD class="xl25"></TD> <TD class="xl25" x:num="75"><SPAN style="mso-spacerun: yes"></SPAN>75 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl28" style="WIDTH: 216pt; HEIGHT: 12.75pt" width="288" height="17">Interest income</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl25" x:num="36"><SPAN style="mso-spacerun: yes"></SPAN>36 </TD> <TD class="xl25"></TD> <TD class="xl25" x:num="38"><SPAN style="mso-spacerun: yes"></SPAN>38 </TD> <TD class="xl25"></TD> <TD class="xl25" x:num="103"><SPAN style="mso-spacerun: yes"></SPAN>103 </TD> <TD class="xl25"></TD> <TD class="xl25" x:num="117"><SPAN style="mso-spacerun: yes"></SPAN>117 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl28" style="WIDTH: 216pt; HEIGHT: 12.75pt" width="288" height="17">Equity in earnings of affiliates</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl25" x:num="13"><SPAN style="mso-spacerun: yes"></SPAN>13 </TD> <TD class="xl25"></TD> <TD class="xl25" x:num="2"><SPAN style="mso-spacerun: yes"></SPAN>2 </TD> <TD class="xl25"></TD> <TD class="xl25" x:num="95"><SPAN style="mso-spacerun: yes"></SPAN>95 </TD> <TD class="xl25"></TD> <TD class="xl25" x:num="26"><SPAN style="mso-spacerun: yes"></SPAN>26 </TD></TR> <TR style="HEIGHT: 13.5pt; mso-height-source: userset" height="18"> <TD class="xl28" style="WIDTH: 216pt; HEIGHT: 13.5pt" width="288" height="18">Net gains on sales of assets</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl25" x:num="1"><SPAN style="mso-spacerun: yes"></SPAN>1 </TD> <TD class="xl25"></TD> <TD class="xl25" x:num="25"><SPAN style="mso-spacerun: yes"></SPAN>25 </TD> <TD class="xl25"></TD> <TD class="xl25" x:num="15"><SPAN style="mso-spacerun: yes"></SPAN>15 </TD> <TD class="xl25"></TD> <TD class="xl25" x:num="58"><SPAN style="mso-spacerun: yes"></SPAN>58 </TD></TR> <TR style="HEIGHT: 14.25pt" height="19"> <TD class="xl28" style="WIDTH: 216pt; HEIGHT: 14.25pt" width="288" height="19">Net exchange gains (losses) <FONT class="font6"><SUP>1</SUP></FONT></TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl25" x:num="52"><SPAN style="mso-spacerun: yes"></SPAN>52 </TD> <TD class="xl25"></TD> <TD class="xl25" x:num="-18"><SPAN style="mso-spacerun: yes"></SPAN>(18)</TD> <TD class="xl25"></TD> <TD class="xl25" x:num="-127"><SPAN style="mso-spacerun: yes"></SPAN>(127)</TD> <TD class="xl25"></TD> <TD class="xl25" x:num="-34"><SPAN style="mso-spacerun: yes"></SPAN>(34)</TD></TR> <TR style="HEIGHT: 14.25pt" height="19"> <TD class="xl28" style="WIDTH: 216pt; HEIGHT: 14.25pt" width="288" height="19">Miscellaneous income and expenses, net <FONT class="font6"><SUP>2</SUP></FONT></TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl26" x:num="29"><SPAN style="mso-spacerun: yes"></SPAN>29 </TD> <TD class="xl25"></TD> <TD class="xl26" x:num="55"><SPAN style="mso-spacerun: yes"></SPAN>55 </TD> <TD class="xl25"></TD> <TD class="xl26" x:num="138"><SPAN style="mso-spacerun: yes"></SPAN>138 </TD> <TD class="xl25"></TD> <TD class="xl26" x:num="105"><SPAN style="mso-spacerun: yes"></SPAN>105 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl28" style="WIDTH: 216pt; HEIGHT: 12.75pt" width="288" height="17"></TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl29" style="WIDTH: 48pt" width="64"></TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl29" style="WIDTH: 48pt" width="64"></TD> <TD class="xl29" style="WIDTH: 9pt" width="12"></TD> <TD class="xl29" style="WIDTH: 48pt" width="64"></TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl29" style="WIDTH: 48pt" width="64"></TD></TR> <TR style="HEIGHT: 13.5pt" height="18"> <TD class="xl28" style="WIDTH: 216pt; HEIGHT: 13.5pt" width="288" height="18">Total</TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl27" x:num="420" x:fmla="=SUM(C4:C10)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>420 </TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl27" x:num="365" x:fmla="=SUM(E4:E11)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>365 </TD> <TD class="xl24"></TD> <TD class="xl27" x:num="1057" x:fmla="=SUM(G4:G10)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>1,057 </TD> <TD class="xl28" style="WIDTH: 9pt" width="12"></TD> <TD class="xl27" x:num="1045" x:fmla="=SUM(I4:I11)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>1,045 </TD></TR> <TR style="HEIGHT: 8.25pt; mso-height-source: userset" height="11"> <TD style="HEIGHT: 8.25pt" height="11"></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD></TR></TBODY></TABLE> <STYLE> <!--table {mso-displayed-decimal-separator:"\."; mso-displayed-thousand-separator:"\,";} @page {margin:1.0in .75in 1.0in .75in; mso-header-margin:.5in; mso-footer-margin:.5in;} ..font5 {color:windowtext; font-size:10.0pt; font-weight:400; font-style:normal; text-decoration:none; font-family:Arial, sans-serif; mso-font-charset:0;} ..font6 {color:windowtext; font-size:10.0pt; font-weight:400; font-style:normal; text-decoration:none; font-family:Arial, sans-serif; mso-font-charset:0;} ..font7 {color:windowtext; font-size:10.0pt; font-weight:400; font-style:normal; text-decoration:none; font-family:Symbol, serif; mso-font-charset:2;} tr {mso-height-source:auto;} col {mso-width-source:auto;} br {mso-data-placement:same-cell;} td {padding-top:1px; padding-right:1px; padding-left:1px; mso-ignore:padding; color:windowtext; font-size:10.0pt; font-weight:400; font-style:normal; text-decoration:none; font-family:Arial; mso-generic-font-family:auto; mso-font-charset:0; mso-number-format:General; text-align:general; vertical-align:bottom; border:none; mso-background-source:auto; mso-pattern:auto; mso-protection:locked visible; white-space:nowrap; mso-rotate:0;} ..xl24 {mso-number-format:"_\(\0022$\0022* \#\,\#\#0_\)\;_\(\0022$\0022* \\\(\#\,\#\#0\\\)\;_\(\0022$\0022* \0022-\0022_\)\;_\(\@_\)";} .xl25 {mso-number-format:"_\(* \#\,\#\#0_\)\;_\(* \\\(\#\,\#\#0\\\)\;_\(* \0022-\0022_\)\;_\(\@_\)";} .xl26 {mso-number-format:"_\(* \#\,\#\#0_\)\;_\(* \\\(\#\,\#\#0\\\)\;_\(* \0022-\0022_\)\;_\(\@_\)"; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none;} ..xl27 {mso-number-format:"_\(\0022$\0022* \#\,\#\#0_\)\;_\(\0022$\0022* \\\(\#\,\#\#0\\\)\;_\(\0022$\0022* \0022-\0022_\)\;_\(\@_\)"; border-top:none; border-right:none; border-bottom:2.0pt double windowtext; border-left:none;} .xl28 {font-family:Arial, sans-serif; mso-font-charset:0; vertical-align:top; white-space:normal;} .xl29 {font-family:Arial, sans-serif; mso-font-charset:0; text-align:center; vertical-align:top; white-space:normal;} ..xl30 {font-weight:700; font-family:Arial, sans-serif; mso-font-charset:0; text-align:center; vertical-align:top; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none; white-space:normal;} ..xl31 {font-family:Arial, sans-serif; mso-font-charset:0; text-align:center; vertical-align:top; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none; white-space:normal;} --> </STYLE> </SPAN></P> <P class="MsoHeader" style="tab-stops: .5in"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN>&nbsp;</P> <P class="MsoHeader" style="TEXT-JUSTIFY: inter-ideograph; MARGIN-LEFT: 18.7pt; TEXT-INDENT: -18.7pt; TEXT-ALIGN: justify; tab-stops: 18.7pt"><SUP><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">1</SPAN></SUP><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"><SPAN style="mso-tab-count: 1"> </SPAN>The company routinely uses forward exchange contracts to offset its net exposures, by currency, related to its foreign currency-denominated monetary assets and liabilities.<SPAN style="mso-spacerun: yes"> </SPAN>The objective of this program is to maintain an approximately balanced position in foreign currencies in order to minimize, on an after-tax basis, the effects of exchange rate changes on net monetary asset positions.<SPAN style="mso-spacerun: yes"> </SPAN>The net pretax exchange gains and losses are largely offset by the associated tax impact.<B style="mso-bidi-font-weight: normal"></B></SPAN></P> <P class="MsoHeader" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; tab-stops: 1.25in 2.5in 3.75in"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN>&nbsp;</P> <P class="MsoHeader" style="TEXT-JUSTIFY: inter-ideograph; MARGIN-LEFT: 18.7pt; TEXT-INDENT: -18.7pt; TEXT-ALIGN: justify; tab-stops: 18.7pt 1.25in 2.5in 3.75in"><SUP><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">2</SPAN></SUP><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"><SPAN style="mso-tab-count: 1"> </SPAN>Miscellaneous income and expenses, net, includes interest items, insurance recoveries, litigation settlements, and other items. </SPAN></P> <P class="MsoNormal"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN></B>&nbsp;</P> <STYLE> v\:* {behavior:url(#default#VML);} o\:* {behavior:url(#default#VML);} w\:* {behavior:url(#default#VML);} .shape {behavior:url(#default#VML);} <!-- /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} p.MsoHeader, li.MsoHeader, div.MsoHeader {margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; tab-stops:center 3.0in right 6.0in; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </STYLE> 7255000000 7233000000 32000000 -24000000 -1695000000 0 -1037000000 -1123000000 -13000000 -72000000 -27000000 -53000000 -1019000000 -1406000000 -233000000 -210000000 237000000 237000000 -72000000 -37000000 1330000000 2974000000 431000000 94000000 10860000000 11083000000 5683000000 7438000000 979000000 332000000 1050000000 360000000 <html><P class="MsoNormal" style="MARGIN-BOTTOM: 6pt"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">Note 4.<SPAN style="mso-spacerun: yes"> </SPAN>Restructuring Activities</SPAN></B></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; tab-stops: 9.0pt"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">During the three and nine months ended September 30, 2008, there were no significant changes in estimates related to liabilities established for restructuring initiatives recorded in 2006.<SPAN style="mso-spacerun: yes"> </SPAN>A complete discussion of all restructuring initiatives is included in the company's 2007 Annual Report in Note 4, "Restructuring Activities."<SPAN style="mso-spacerun: yes"> </SPAN></SPAN></P> <P class="MsoNormal" style="tab-stops: 9.0pt"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN>&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">The account balances and activity for the company's restructuring programs are as follows:</SPAN></P> <P class="MsoNormal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN>&nbsp;</P> <P class="MsoNormal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"> <TABLE style="WIDTH: 219pt; BORDER-COLLAPSE: collapse" cellSpacing="0" cellPadding="0" width="292" border="0" x:str> <COLGROUP> <COL style="WIDTH: 159pt; mso-width-source: userset; mso-width-alt: 7753" width="212"> <COL style="WIDTH: 9pt; mso-width-source: userset; mso-width-alt: 438" width="12"> <COL style="WIDTH: 51pt; mso-width-source: userset; mso-width-alt: 2486" width="68"> <TBODY> <TR style="HEIGHT: 25.5pt" height="34"> <TD style="WIDTH: 159pt; HEIGHT: 25.5pt" width="212" height="34"></TD> <TD style="WIDTH: 9pt" width="12"></TD> <TD class="xl24" style="WIDTH: 51pt" width="68">2006 Programs</TD></TR> <TR style="HEIGHT: 17.25pt; mso-height-source: userset" height="23"> <TD class="xl25" style="WIDTH: 159pt; HEIGHT: 17.25pt" width="212" height="23">Balance at December 31, 2007</TD> <TD class="xl25" style="WIDTH: 9pt" width="12"></TD> <TD class="xl26" x:num="70"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>70 </TD></TR> <TR style="HEIGHT: 17.25pt; mso-height-source: userset" height="23"> <TD class="xl27" style="WIDTH: 159pt; HEIGHT: 17.25pt" width="212" height="23">Employee separation payments</TD> <TD class="xl25" style="WIDTH: 9pt" width="12"></TD> <TD class="xl31" x:num="-41"><SPAN style="mso-spacerun: yes"></SPAN>(41)</TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD style="HEIGHT: 12.75pt" height="17">Credits to income</TD> <TD class="xl25" style="WIDTH: 9pt" width="12"></TD> <TD class="xl30" x:num="-5"><SPAN style="mso-spacerun: yes"></SPAN>(5)</TD></TR> <TR style="HEIGHT: 7.5pt; mso-height-source: userset" height="10"> <TD class="xl25" style="WIDTH: 159pt; HEIGHT: 7.5pt" width="212" height="10"></TD> <TD class="xl25" style="WIDTH: 9pt" width="12"></TD> <TD class="xl28" style="WIDTH: 51pt" width="68"></TD></TR> <TR style="HEIGHT: 13.5pt" height="18"> <TD class="xl25" style="WIDTH: 159pt; HEIGHT: 13.5pt" width="212" height="18" x:str="Balance at September 30, 2008 ">Balance at September 30, 2008<SPAN style="mso-spacerun: yes"></SPAN></TD> <TD class="xl25" style="WIDTH: 9pt" width="12"></TD> <TD class="xl29" x:num="24" x:fmla="=SUM(C2:C4)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>24 </TD></TR> <TR style="HEIGHT: 7.5pt; mso-height-source: userset" height="10"> <TD style="HEIGHT: 7.5pt" height="10"></TD> <TD></TD> <TD></TD></TR></TBODY></TABLE> <STYLE> <!--table {mso-displayed-decimal-separator:"\."; mso-displayed-thousand-separator:"\,";} @page {margin:1.0in .75in 1.0in .75in; mso-header-margin:.5in; mso-footer-margin:.5in;} tr {mso-height-source:auto;} col {mso-width-source:auto;} br {mso-data-placement:same-cell;} td {padding-top:1px; padding-right:1px; padding-left:1px; mso-ignore:padding; color:windowtext; font-size:10.0pt; font-weight:400; font-style:normal; text-decoration:none; font-family:Arial; mso-generic-font-family:auto; mso-font-charset:0; mso-number-format:General; text-align:general; vertical-align:bottom; border:none; mso-background-source:auto; mso-pattern:auto; mso-protection:locked visible; white-space:nowrap; mso-rotate:0;} ..xl24 {text-align:center; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none; white-space:normal;} .xl25 {font-family:Arial, sans-serif; mso-font-charset:0; vertical-align:top; white-space:normal;} .xl26 {mso-number-format:"_\(\0022$\0022* \#\,\#\#0_\)\;_\(\0022$\0022* \\\(\#\,\#\#0\\\)\;_\(\0022$\0022* \0022-\0022_\)\;_\(\@_\)";} .xl27 {font-family:Arial, sans-serif; mso-font-charset:0; white-space:normal;} .xl28 {font-family:Arial, sans-serif; mso-font-charset:0; text-align:center; vertical-align:top; white-space:normal;} .xl29 {mso-number-format:"_\(\0022$\0022* \#\,\#\#0_\)\;_\(\0022$\0022* \\\(\#\,\#\#0\\\)\;_\(\0022$\0022* \0022-\0022_\)\;_\(\@_\)"; border-top:none; border-right:none; border-bottom:2.0pt double windowtext; border-left:none;} .xl30 {mso-number-format:"_\(* \#\,\#\#0_\)\;_\(* \\\(\#\,\#\#0\\\)\;_\(* \0022-\0022_\)\;_\(\@_\)"; text-align:right; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none;} .xl31 {mso-number-format:"_\(* \#\,\#\#0_\)\;_\(* \\\(\#\,\#\#0\\\)\;_\(* \0022-\0022_\)\;_\(\@_\)"; text-align:right;} --> </STYLE> </SPAN></P> <P class="MsoNormal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN>&nbsp;</P> <P class="MsoNormal"><I style="mso-bidi-font-style: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN></I></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; tab-stops: 9.0pt"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">As of September 30, 2008, approximately 1,200 employees were separated relating to the 2006 Agriculture &amp; Nutrition refocus plan. There have been no additional employee separations under the Coatings &amp; Color Technologies business transformation plan since December 31, 2007.<I style="mso-bidi-font-style: normal"><U></U></I></SPAN></P> <P class="MsoNormal" style="tab-stops: 9.0pt"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN>&nbsp;</P> <STYLE> v\:* {behavior:url(#default#VML);} o\:* {behavior:url(#default#VML);} w\:* {behavior:url(#default#VML);} .shape {behavior:url(#default#VML);} <!-- /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </STYLE> 9945000000 11458000000 22395000000 6675000000 24709000000 7297000000 <html><P class="MsoNormal"><SPAN style="FONT-SIZE: 6pt; FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN></P> <P class="MsoNormal"><A name="note13"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">Note 13.</SPAN></B></A><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"><SPAN style="mso-spacerun: yes"> </SPAN>Segment Information</SPAN></B></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"><BR></SPAN></B><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">Segment sales include transfers.<SPAN style="mso-spacerun: yes"> </SPAN>Segment pretax operating income/(loss) (PTOI) is defined as operating income/(loss) before income taxes, minority interests, exchange gains/(losses), corporate expenses and net interest.<SPAN style="mso-spacerun: yes"> </SPAN></SPAN></P> <P class="MsoNormal">&nbsp;</P> <P class="MsoNormal"> <TABLE style="WIDTH: 496pt; BORDER-COLLAPSE: collapse" cellSpacing="0" cellPadding="0" width="658" border="0" x:str> <COLGROUP> <COL style="WIDTH: 80pt; mso-width-source: userset; mso-width-alt: 3913" width="107"> <COL style="WIDTH: 1pt; mso-width-source: userset; mso-width-alt: 36" width="1"> <COL style="WIDTH: 44pt; mso-width-source: userset; mso-width-alt: 2121" width="58"> <COL style="WIDTH: 8pt; mso-width-source: userset; mso-width-alt: 402" width="11"> <COL style="WIDTH: 53pt; mso-width-source: userset; mso-width-alt: 2560" width="70"> <COL style="WIDTH: 6pt; mso-width-source: userset; mso-width-alt: 292" width="8"> <COL style="WIDTH: 53pt; mso-width-source: userset; mso-width-alt: 2560" width="70"> <COL style="WIDTH: 10pt; mso-width-source: userset; mso-width-alt: 475" width="13"> <COL style="WIDTH: 50pt; mso-width-source: userset; mso-width-alt: 2450" width="67"> <COL style="WIDTH: 11pt; mso-width-source: userset; mso-width-alt: 548" width="15"> <COL style="WIDTH: 43pt; mso-width-source: userset; mso-width-alt: 2084" width="57"> <COL style="WIDTH: 7pt; mso-width-source: userset; mso-width-alt: 329" width="9"> <COL style="WIDTH: 41pt; mso-width-source: userset; mso-width-alt: 1974" width="54"> <COL style="WIDTH: 8pt; mso-width-source: userset; mso-width-alt: 402" width="11"> <COL style="WIDTH: 31pt; mso-width-source: userset; mso-width-alt: 1499" width="41"> <COL style="WIDTH: 11pt; mso-width-source: userset; mso-width-alt: 512" width="14"> <COL style="WIDTH: 39pt; mso-width-source: userset; mso-width-alt: 1901" width="52"> <TBODY> <TR style="HEIGHT: 49.5pt; mso-height-source: userset" height="66"> <TD class="xl33" style="WIDTH: 80pt; HEIGHT: 49.5pt" width="107" height="66">Three Months Ended<BR>September 30,</TD> <TD class="xl28" style="WIDTH: 1pt" width="1"></TD> <TD class="xl33" style="WIDTH: 44pt" width="58">Agriculture &amp; Nutrition</TD> <TD class="xl28" style="WIDTH: 8pt" width="11"></TD> <TD class="xl33" style="WIDTH: 53pt" width="70">Coatings &amp; Color Technologies</TD> <TD class="xl28" style="WIDTH: 6pt" width="8"></TD> <TD class="xl33" style="WIDTH: 53pt" width="70">Electronic &amp; Communica-tion Technologies</TD> <TD class="xl38" style="WIDTH: 10pt" width="13"><SUP></SUP></TD> <TD class="xl33" style="WIDTH: 50pt" width="67">Performance Materials</TD> <TD class="xl28" style="WIDTH: 11pt" width="15"></TD> <TD class="xl33" style="WIDTH: 43pt" width="57">Safety &amp; Protection</TD> <TD class="xl28" style="WIDTH: 7pt" width="9"></TD> <TD class="xl33" style="WIDTH: 41pt" width="54">Pharma-ceuticals</TD> <TD class="xl28" style="WIDTH: 8pt" width="11"></TD> <TD class="xl33" style="WIDTH: 31pt" width="41">Other</TD> <TD class="xl26" style="WIDTH: 11pt" width="14"></TD> <TD class="xl33" style="WIDTH: 39pt" width="52">Total <FONT class="font5"><SUP>1</SUP></FONT></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl25" style="WIDTH: 80pt; HEIGHT: 12.75pt" width="107" height="17"></TD> <TD class="xl25" style="WIDTH: 1pt" width="1"></TD> <TD class="xl25" style="WIDTH: 44pt" width="58"></TD> <TD class="xl25" style="WIDTH: 8pt" width="11"></TD> <TD class="xl25" style="WIDTH: 53pt" width="70"></TD> <TD class="xl25" style="WIDTH: 6pt" width="8"></TD> <TD class="xl25" style="WIDTH: 53pt" width="70"></TD> <TD class="xl39" style="WIDTH: 10pt" width="13"><SUP></SUP></TD> <TD class="xl25" style="WIDTH: 50pt" width="67"></TD> <TD class="xl25" style="WIDTH: 11pt" width="15"></TD> <TD class="xl25" style="WIDTH: 43pt" width="57"></TD> <TD class="xl25" style="WIDTH: 7pt" width="9"></TD> <TD class="xl25" style="WIDTH: 41pt" width="54"></TD> <TD class="xl25" style="WIDTH: 8pt" width="11"></TD> <TD class="xl25" style="WIDTH: 31pt" width="41"></TD> <TD class="xl27" style="WIDTH: 11pt" width="14"></TD> <TD class="xl25" style="WIDTH: 39pt" width="52"></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl31" style="WIDTH: 80pt; HEIGHT: 12.75pt" width="107" height="17" x:num>2008</TD> <TD class="xl25" style="WIDTH: 1pt" width="1"></TD> <TD class="xl25" style="WIDTH: 44pt" width="58"></TD> <TD class="xl25" style="WIDTH: 8pt" width="11"></TD> <TD class="xl25" style="WIDTH: 53pt" width="70"></TD> <TD class="xl25" style="WIDTH: 6pt" width="8"></TD> <TD class="xl25" style="WIDTH: 53pt" width="70"></TD> <TD class="xl39" style="WIDTH: 10pt" width="13"><SUP></SUP></TD> <TD class="xl25" style="WIDTH: 50pt" width="67"></TD> <TD class="xl25" style="WIDTH: 11pt" width="15"></TD> <TD class="xl25" style="WIDTH: 43pt" width="57"></TD> <TD class="xl25" style="WIDTH: 7pt" width="9"></TD> <TD class="xl25" style="WIDTH: 41pt" width="54"></TD> <TD class="xl25" style="WIDTH: 8pt" width="11"></TD> <TD class="xl25" style="WIDTH: 31pt" width="41"></TD> <TD class="xl27" style="WIDTH: 11pt" width="14"></TD> <TD class="xl25" style="WIDTH: 39pt" width="52"></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl25" style="WIDTH: 80pt; HEIGHT: 12.75pt" width="107" height="17">Segment sales</TD> <TD class="xl25" style="WIDTH: 1pt" width="1"></TD> <TD class="xl34" x:num="1303"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>1,303 </TD> <TD class="xl34"></TD> <TD class="xl34" x:num="1757"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>1,757 </TD> <TD class="xl34"></TD> <TD class="xl34" x:num="1054"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>1,054 </TD> <TD class="xl40"><SUP></SUP></TD> <TD class="xl34" x:num="1708"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>1,708 </TD> <TD class="xl34"></TD> <TD class="xl34" x:num="1529"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>1,529 </TD> <TD class="xl34"></TD> <TD class="xl34" x:num="0"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>- </TD> <TD class="xl34"></TD> <TD class="xl34" x:num="45"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>45 </TD> <TD class="xl43"></TD> <TD class="xl34" x:num="7396"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>7,396 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl32" style="WIDTH: 80pt; HEIGHT: 12.75pt" width="107" height="17">Less transfers</TD> <TD class="xl25" style="WIDTH: 1pt" width="1"></TD> <TD class="xl36" x:num="0"><SPAN style="mso-spacerun: yes"></SPAN>- </TD> <TD class="xl35"></TD> <TD class="xl36" x:num="-14" x:fmla="=-47+33"><SPAN style="mso-spacerun: yes"></SPAN>(14)</TD> <TD class="xl35"></TD> <TD class="xl36" x:num="-38" x:fmla="=-101+63"><SPAN style="mso-spacerun: yes"></SPAN>(38)</TD> <TD class="xl37"><SUP></SUP></TD> <TD class="xl36" x:num="-11" x:fmla="=-35+24"><SPAN style="mso-spacerun: yes"></SPAN>(11)</TD> <TD class="xl35"></TD> <TD class="xl36" x:num="-30"><SPAN style="mso-spacerun: yes"></SPAN>(30)</TD> <TD class="xl35"></TD> <TD class="xl36" x:num="0"><SPAN style="mso-spacerun: yes"></SPAN>- </TD> <TD class="xl35"></TD> <TD class="xl36" x:num="-6"><SPAN style="mso-spacerun: yes"></SPAN>(6)</TD> <TD class="xl42"></TD> <TD class="xl36" x:num="-99" x:fmla="=SUM(C5:O5)"><SPAN style="mso-spacerun: yes"></SPAN>(99)</TD></TR> <TR style="HEIGHT: 8.25pt; mso-height-source: userset" height="11"> <TD class="xl25" style="WIDTH: 80pt; HEIGHT: 8.25pt" width="107" height="11"></TD> <TD class="xl25" style="WIDTH: 1pt" width="1"></TD> <TD class="xl29" style="WIDTH: 44pt" width="58"></TD> <TD class="xl25" style="WIDTH: 8pt" width="11"></TD> <TD class="xl29" style="WIDTH: 53pt" width="70"></TD> <TD class="xl25" style="WIDTH: 6pt" width="8"></TD> <TD class="xl29" style="WIDTH: 53pt" width="70"></TD> <TD class="xl39" style="WIDTH: 10pt" width="13"><SUP></SUP></TD> <TD class="xl29" style="WIDTH: 50pt" width="67"></TD> <TD class="xl25" style="WIDTH: 11pt" width="15"></TD> <TD class="xl29" style="WIDTH: 43pt" width="57"></TD> <TD class="xl25" style="WIDTH: 7pt" width="9"></TD> <TD class="xl29" style="WIDTH: 41pt" width="54"></TD> <TD class="xl25" style="WIDTH: 8pt" width="11"></TD> <TD class="xl29" style="WIDTH: 31pt" width="41"></TD> <TD class="xl27" style="WIDTH: 11pt" width="14"></TD> <TD class="xl29" style="WIDTH: 39pt" width="52"></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl25" style="WIDTH: 80pt; HEIGHT: 12.75pt" width="107" height="17">Net sales</TD> <TD class="xl25" style="WIDTH: 1pt" width="1" x:str=" "><SPAN style="mso-spacerun: yes"></SPAN></TD> <TD class="xl35" x:num="1303" x:fmla="=+C4+C5"><SPAN style="mso-spacerun: yes"></SPAN>1,303 </TD> <TD class="xl35"></TD> <TD class="xl35" x:num="1743" x:fmla="=+E4+E5"><SPAN style="mso-spacerun: yes"></SPAN>1,743 </TD> <TD class="xl35"></TD> <TD class="xl35" x:num="1016" x:fmla="=+G4+G5"><SPAN style="mso-spacerun: yes"></SPAN>1,016 </TD> <TD class="xl37"><SUP></SUP></TD> <TD class="xl35" x:num="1697" x:fmla="=+I4+I5"><SPAN style="mso-spacerun: yes"></SPAN>1,697 </TD> <TD class="xl35"></TD> <TD class="xl35" x:num="1499" x:fmla="=+K4+K5"><SPAN style="mso-spacerun: yes"></SPAN>1,499 </TD> <TD class="xl35"></TD> <TD class="xl35" x:num="0" x:fmla="=+M4+M5"><SPAN style="mso-spacerun: yes"></SPAN>- </TD> <TD class="xl35"></TD> <TD class="xl35" x:num="39" x:fmla="=+O4+O5"><SPAN style="mso-spacerun: yes"></SPAN>39 </TD> <TD class="xl42"></TD> <TD class="xl35" x:num="7297" x:fmla="=+Q4+Q5"><SPAN style="mso-spacerun: yes"></SPAN>7,297 </TD></TR> <TR style="HEIGHT: 22.5pt" height="30"> <TD class="xl25" style="WIDTH: 80pt; HEIGHT: 22.5pt" width="107" height="30">Pretax operating<BR><SPAN style="mso-spacerun: yes"></SPAN>income (loss)</TD> <TD class="xl25" style="WIDTH: 1pt" width="1"></TD> <TD class="xl35" x:num="-21"><SPAN style="mso-spacerun: yes"></SPAN>(21)</TD> <TD class="xl47" x:num><SUP>5</SUP></TD> <TD class="xl35" x:num="190"><SPAN style="mso-spacerun: yes"></SPAN>190 </TD> <TD class="xl37"><SUP></SUP></TD> <TD class="xl35" x:num="137"><SPAN style="mso-spacerun: yes"></SPAN>137 </TD> <TD class="xl47" x:num><SUP>5</SUP></TD> <TD class="xl35" x:num="-91"><SPAN style="mso-spacerun: yes"></SPAN>(91)</TD> <TD class="xl47" x:num><SUP>5</SUP></TD> <TD class="xl35" x:num="251"><SPAN style="mso-spacerun: yes"></SPAN>251 </TD> <TD class="xl47" x:num><SUP>5</SUP></TD> <TD class="xl35" x:num="260"><SPAN style="mso-spacerun: yes"></SPAN>260 </TD> <TD class="xl37"><SUP></SUP></TD> <TD class="xl35" x:num="-44"><SPAN style="mso-spacerun: yes"></SPAN>(44)</TD> <TD class="xl47"><SUP></SUP></TD> <TD class="xl35" x:num="682" x:fmla="=+C8+E8+G8+I8+K8+M8+O8"><SPAN style="mso-spacerun: yes"></SPAN>682 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl30" style="WIDTH: 80pt; HEIGHT: 12.75pt" width="107" height="17"></TD> <TD class="xl25" style="WIDTH: 1pt" width="1"></TD> <TD class="xl25" style="WIDTH: 44pt" width="58"></TD> <TD class="xl25" style="WIDTH: 8pt" width="11"></TD> <TD class="xl25" style="WIDTH: 53pt" width="70"></TD> <TD class="xl25" style="WIDTH: 6pt" width="8"></TD> <TD class="xl25" style="WIDTH: 53pt" width="70"></TD> <TD class="xl39" style="WIDTH: 10pt" width="13"><SUP></SUP></TD> <TD class="xl25" style="WIDTH: 50pt" width="67"></TD> <TD class="xl25" style="WIDTH: 11pt" width="15"></TD> <TD class="xl25" style="WIDTH: 43pt" width="57"></TD> <TD class="xl25" style="WIDTH: 7pt" width="9"></TD> <TD class="xl25" style="WIDTH: 41pt" width="54"></TD> <TD class="xl25" style="WIDTH: 8pt" width="11"></TD> <TD class="xl25" style="WIDTH: 31pt" width="41"></TD> <TD class="xl27" style="WIDTH: 11pt" width="14"></TD> <TD class="xl25" style="WIDTH: 39pt" width="52"></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl31" style="WIDTH: 80pt; HEIGHT: 12.75pt" width="107" height="17" x:num>2007</TD> <TD class="xl25" style="WIDTH: 1pt" width="1"></TD> <TD class="xl25" style="WIDTH: 44pt" width="58"></TD> <TD class="xl25" style="WIDTH: 8pt" width="11"></TD> <TD class="xl25" style="WIDTH: 53pt" width="70"></TD> <TD class="xl25" style="WIDTH: 6pt" width="8"></TD> <TD class="xl25" style="WIDTH: 53pt" width="70"></TD> <TD class="xl39" style="WIDTH: 10pt" width="13"><SUP></SUP></TD> <TD class="xl25" style="WIDTH: 50pt" width="67"></TD> <TD class="xl25" style="WIDTH: 11pt" width="15"></TD> <TD class="xl25" style="WIDTH: 43pt" width="57"></TD> <TD class="xl25" style="WIDTH: 7pt" width="9"></TD> <TD class="xl25" style="WIDTH: 41pt" width="54"></TD> <TD class="xl25" style="WIDTH: 8pt" width="11"></TD> <TD class="xl25" style="WIDTH: 31pt" width="41"></TD> <TD class="xl27" style="WIDTH: 11pt" width="14"></TD> <TD class="xl25" style="WIDTH: 39pt" width="52"></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl25" style="WIDTH: 80pt; HEIGHT: 12.75pt" width="107" height="17">Segment sales</TD> <TD class="xl25" style="WIDTH: 1pt" width="1"></TD> <TD class="xl34" x:num="1067"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>1,067 </TD> <TD class="xl34"></TD> <TD class="xl34" x:num="1649"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>1,649 </TD> <TD class="xl34"></TD> <TD class="xl34" x:num="935"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>935 </TD> <TD class="xl40"><SUP></SUP></TD> <TD class="xl34" x:num="1651"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>1,651 </TD> <TD class="xl34"></TD> <TD class="xl34" x:num="1408"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>1,408 </TD> <TD class="xl34"></TD> <TD class="xl34" x:num="0"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>- </TD> <TD class="xl34"></TD> <TD class="xl34" x:num="43"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>43 </TD> <TD class="xl43"></TD> <TD class="xl34" x:num="6753"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>6,753 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl32" style="WIDTH: 80pt; HEIGHT: 12.75pt" width="107" height="17">Less transfers</TD> <TD class="xl25" style="WIDTH: 1pt" width="1"></TD> <TD class="xl36" x:num="0"><SPAN style="mso-spacerun: yes"></SPAN>- </TD> <TD class="xl35"></TD> <TD class="xl36" x:num="-12"><SPAN style="mso-spacerun: yes"></SPAN>(12)</TD> <TD class="xl35"></TD> <TD class="xl36" x:num="-31"><SPAN style="mso-spacerun: yes"></SPAN>(31)</TD> <TD class="xl37"><SUP></SUP></TD> <TD class="xl36" x:num="-9"><SPAN style="mso-spacerun: yes"></SPAN>(9)</TD> <TD class="xl35"></TD> <TD class="xl36" x:num="-21"><SPAN style="mso-spacerun: yes"></SPAN>(21)</TD> <TD class="xl35"></TD> <TD class="xl36" x:num="0"><SPAN style="mso-spacerun: yes"></SPAN>- </TD> <TD class="xl35"></TD> <TD class="xl36" x:num="-5"><SPAN style="mso-spacerun: yes"></SPAN>(5)</TD> <TD class="xl42"></TD> <TD class="xl36" x:num="-78"><SPAN style="mso-spacerun: yes"></SPAN>(78)</TD></TR> <TR style="HEIGHT: 6pt; mso-height-source: userset" height="8"> <TD class="xl24" style="HEIGHT: 6pt" height="8"></TD> <TD class="xl25" style="WIDTH: 1pt" width="1"></TD> <TD class="xl25" style="WIDTH: 44pt" width="58"></TD> <TD class="xl25" style="WIDTH: 8pt" width="11"></TD> <TD class="xl25" style="WIDTH: 53pt" width="70"></TD> <TD class="xl25" style="WIDTH: 6pt" width="8"></TD> <TD class="xl25" style="WIDTH: 53pt" width="70"></TD> <TD class="xl39" style="WIDTH: 10pt" width="13"><SUP></SUP></TD> <TD class="xl25" style="WIDTH: 50pt" width="67"></TD> <TD class="xl25" style="WIDTH: 11pt" width="15"></TD> <TD class="xl25" style="WIDTH: 43pt" width="57"></TD> <TD class="xl25" style="WIDTH: 7pt" width="9"></TD> <TD class="xl25" style="WIDTH: 41pt" width="54"></TD> <TD class="xl25" style="WIDTH: 8pt" width="11"></TD> <TD class="xl25" style="WIDTH: 31pt" width="41"></TD> <TD class="xl27" style="WIDTH: 11pt" width="14"></TD> <TD class="xl25" style="WIDTH: 39pt" width="52"></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl25" style="WIDTH: 80pt; HEIGHT: 12.75pt" width="107" height="17">Net sales</TD> <TD class="xl25" style="WIDTH: 1pt" width="1"></TD> <TD class="xl35" x:num="1067" x:fmla="=SUM(C11:C12)"><SPAN style="mso-spacerun: yes"></SPAN>1,067 </TD> <TD class="xl35"></TD> <TD class="xl35" x:num="1637" x:fmla="=SUM(E11:E12)"><SPAN style="mso-spacerun: yes"></SPAN>1,637 </TD> <TD class="xl35"></TD> <TD class="xl35" x:num="904" x:fmla="=SUM(G11:G12)"><SPAN style="mso-spacerun: yes"></SPAN>904 </TD> <TD class="xl37"><SUP></SUP></TD> <TD class="xl35" x:num="1642" x:fmla="=SUM(I11:I12)"><SPAN style="mso-spacerun: yes"></SPAN>1,642 </TD> <TD class="xl35"></TD> <TD class="xl35" x:num="1387" x:fmla="=SUM(K11:K12)"><SPAN style="mso-spacerun: yes"></SPAN>1,387 </TD> <TD class="xl35"></TD> <TD class="xl35" x:num="0" x:fmla="=SUM(M11:M12)"><SPAN style="mso-spacerun: yes"></SPAN>- </TD> <TD class="xl35"></TD> <TD class="xl35" x:num="38" x:fmla="=SUM(O11:O12)"><SPAN style="mso-spacerun: yes"></SPAN>38 </TD> <TD class="xl42"></TD> <TD class="xl35" x:num="6675" x:fmla="=SUM(Q11:Q12)"><SPAN style="mso-spacerun: yes"></SPAN>6,675 </TD></TR> <TR style="HEIGHT: 22.5pt" height="30"> <TD class="xl25" style="WIDTH: 80pt; HEIGHT: 22.5pt" width="107" height="30">Pretax operating<BR><SPAN style="mso-spacerun: yes"></SPAN>income (loss)</TD> <TD class="xl25" style="WIDTH: 1pt" width="1"></TD> <TD class="xl35" x:num="-96"><SPAN style="mso-spacerun: yes"></SPAN>(96)</TD> <TD class="xl35"></TD> <TD class="xl35" x:num="204"><SPAN style="mso-spacerun: yes"></SPAN>204 </TD> <TD class="xl37"><SUP></SUP></TD> <TD class="xl35" x:num="138"><SPAN style="mso-spacerun: yes"></SPAN>138 </TD> <TD class="xl37"><SUP></SUP></TD> <TD class="xl35" x:num="196"><SPAN style="mso-spacerun: yes"></SPAN>196 </TD> <TD class="xl47"><SUP></SUP></TD> <TD class="xl35" x:num="313"><SPAN style="mso-spacerun: yes"></SPAN>313 </TD> <TD class="xl35"></TD> <TD class="xl35" x:num="237"><SPAN style="mso-spacerun: yes"></SPAN>237 </TD> <TD class="xl37"><SUP></SUP></TD> <TD class="xl35" x:num="-76"><SPAN style="mso-spacerun: yes"></SPAN>(76)</TD> <TD class="xl47" x:num><SUP>2</SUP></TD> <TD class="xl35" x:num="916" x:fmla="=+C15+E15+G15+I15+K15+M15+O15"><SPAN style="mso-spacerun: yes"></SPAN>916 </TD></TR> <TR style="HEIGHT: 14.25pt" height="19"> <TD style="HEIGHT: 14.25pt" height="19"></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD class="xl41"><SUP></SUP></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD class="xl35"></TD> <TD class="xl44"></TD> <TD></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl28" style="WIDTH: 80pt; HEIGHT: 12.75pt" width="107" height="17"></TD> <TD class="xl28" style="WIDTH: 1pt" width="1"></TD> <TD class="xl28" style="WIDTH: 44pt" width="58"></TD> <TD class="xl28" style="WIDTH: 8pt" width="11"></TD> <TD class="xl28" style="WIDTH: 53pt" width="70"></TD> <TD class="xl28" style="WIDTH: 6pt" width="8"></TD> <TD class="xl28" style="WIDTH: 53pt" width="70"></TD> <TD class="xl38" style="WIDTH: 10pt" width="13"><SUP></SUP></TD> <TD class="xl28" style="WIDTH: 50pt" width="67"></TD> <TD class="xl28" style="WIDTH: 11pt" width="15"></TD> <TD class="xl28" style="WIDTH: 43pt" width="57"></TD> <TD class="xl28" style="WIDTH: 7pt" width="9"></TD> <TD class="xl28" style="WIDTH: 41pt" width="54"></TD> <TD class="xl28" style="WIDTH: 8pt" width="11"></TD> <TD class="xl28" style="WIDTH: 31pt" width="41"></TD> <TD class="xl26" style="WIDTH: 11pt" width="14"></TD> <TD class="xl28" style="WIDTH: 39pt" width="52"></TD></TR> <TR style="HEIGHT: 56.25pt; mso-height-source: userset" height="75"> <TD class="xl33" style="WIDTH: 80pt; HEIGHT: 56.25pt" width="107" height="75">Nine Months Ended<BR>September 30,</TD> <TD class="xl28" style="WIDTH: 1pt" width="1"></TD> <TD class="xl33" style="WIDTH: 44pt" width="58">Agriculture &amp; Nutrition</TD> <TD class="xl28" style="WIDTH: 8pt" width="11"></TD> <TD class="xl33" style="WIDTH: 53pt" width="70">Coatings &amp; Color Technologies</TD> <TD class="xl28" style="WIDTH: 6pt" width="8"></TD> <TD class="xl33" style="WIDTH: 53pt" width="70">Electronic &amp; Communica-tion Technologies</TD> <TD class="xl38" style="WIDTH: 10pt" width="13"><SUP></SUP></TD> <TD class="xl33" style="WIDTH: 50pt" width="67">Performance Materials</TD> <TD class="xl28" style="WIDTH: 11pt" width="15"></TD> <TD class="xl33" style="WIDTH: 43pt" width="57">Safety &amp; Protection</TD> <TD class="xl28" style="WIDTH: 7pt" width="9"></TD> <TD class="xl33" style="WIDTH: 41pt" width="54">Pharma-ceuticals</TD> <TD class="xl28" style="WIDTH: 8pt" width="11"></TD> <TD class="xl33" style="WIDTH: 31pt" width="41">Other</TD> <TD class="xl26" style="WIDTH: 11pt" width="14"></TD> <TD class="xl33" style="WIDTH: 39pt" width="52">Total <FONT class="font5"><SUP>1</SUP></FONT></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl25" style="WIDTH: 80pt; HEIGHT: 12.75pt" width="107" height="17"></TD> <TD class="xl25" style="WIDTH: 1pt" width="1"></TD> <TD class="xl25" style="WIDTH: 44pt" width="58"></TD> <TD class="xl25" style="WIDTH: 8pt" width="11"></TD> <TD class="xl25" style="WIDTH: 53pt" width="70"></TD> <TD class="xl25" style="WIDTH: 6pt" width="8"></TD> <TD class="xl25" style="WIDTH: 53pt" width="70"></TD> <TD class="xl39" style="WIDTH: 10pt" width="13"><SUP></SUP></TD> <TD class="xl25" style="WIDTH: 50pt" width="67"></TD> <TD class="xl25" style="WIDTH: 11pt" width="15"></TD> <TD class="xl25" style="WIDTH: 43pt" width="57"></TD> <TD class="xl25" style="WIDTH: 7pt" width="9"></TD> <TD class="xl25" style="WIDTH: 41pt" width="54"></TD> <TD class="xl25" style="WIDTH: 8pt" width="11"></TD> <TD class="xl25" style="WIDTH: 31pt" width="41"></TD> <TD class="xl27" style="WIDTH: 11pt" width="14"></TD> <TD class="xl25" style="WIDTH: 39pt" width="52"></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl31" style="WIDTH: 80pt; HEIGHT: 12.75pt" width="107" height="17" x:num>2008</TD> <TD class="xl25" style="WIDTH: 1pt" width="1"></TD> <TD class="xl25" style="WIDTH: 44pt" width="58"></TD> <TD class="xl25" style="WIDTH: 8pt" width="11"></TD> <TD class="xl25" style="WIDTH: 53pt" width="70"></TD> <TD class="xl25" style="WIDTH: 6pt" width="8"></TD> <TD class="xl25" style="WIDTH: 53pt" width="70"></TD> <TD class="xl39" style="WIDTH: 10pt" width="13"><SUP></SUP></TD> <TD class="xl25" style="WIDTH: 50pt" width="67"></TD> <TD class="xl25" style="WIDTH: 11pt" width="15"></TD> <TD class="xl25" style="WIDTH: 43pt" width="57"></TD> <TD class="xl25" style="WIDTH: 7pt" width="9"></TD> <TD class="xl25" style="WIDTH: 41pt" width="54"></TD> <TD class="xl25" style="WIDTH: 8pt" width="11"></TD> <TD class="xl25" style="WIDTH: 31pt" width="41"></TD> <TD class="xl27" style="WIDTH: 11pt" width="14"></TD> <TD class="xl25" style="WIDTH: 39pt" width="52"></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl25" style="WIDTH: 80pt; HEIGHT: 12.75pt" width="107" height="17">Segment sales</TD> <TD class="xl25" style="WIDTH: 1pt" width="1"></TD> <TD class="xl34" x:num="6727"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>6,727 </TD> <TD class="xl34"></TD> <TD class="xl34" x:num="5269"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>5,269 </TD> <TD class="xl34"></TD> <TD class="xl34" x:num="3154"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>3,154 </TD> <TD class="xl40"><SUP></SUP></TD> <TD class="xl34" x:num="5231"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>5,231 </TD> <TD class="xl34"></TD> <TD class="xl34" x:num="4477"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>4,477 </TD> <TD class="xl34"></TD> <TD class="xl34" x:num="0"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>- </TD> <TD class="xl34"></TD> <TD class="xl34" x:num="129"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>129 </TD> <TD class="xl43"></TD> <TD class="xl34" x:num="24987"><SPAN style="mso-spacerun: yes"></SPAN>$24,987 </TD></TR> <TR style="HEIGHT: 20.25pt; mso-height-source: userset" height="27"> <TD class="xl32" style="WIDTH: 80pt; HEIGHT: 20.25pt" width="107" height="27">Less transfers</TD> <TD class="xl25" style="WIDTH: 1pt" width="1"></TD> <TD class="xl36" x:num="0"><SPAN style="mso-spacerun: yes"></SPAN>- </TD> <TD class="xl35"></TD> <TD class="xl36" x:num="-47"><SPAN style="mso-spacerun: yes"></SPAN>(47)</TD> <TD class="xl35"></TD> <TD class="xl36" x:num="-101"><SPAN style="mso-spacerun: yes"></SPAN>(101)</TD> <TD class="xl37"><SUP></SUP></TD> <TD class="xl36" x:num="-34"><SPAN style="mso-spacerun: yes"></SPAN>(34)</TD> <TD class="xl35"></TD> <TD class="xl36" x:num="-81"><SPAN style="mso-spacerun: yes"></SPAN>(81)</TD> <TD class="xl35"></TD> <TD class="xl36" x:num="0"><SPAN style="mso-spacerun: yes"></SPAN>- </TD> <TD class="xl35"></TD> <TD class="xl36" x:num="-15"><SPAN style="mso-spacerun: yes"></SPAN>(15)</TD> <TD class="xl42"></TD> <TD class="xl36" x:num="-278" x:fmla="=SUM(C22:O22)"><SPAN style="mso-spacerun: yes"></SPAN>(278)</TD></TR> <TR style="HEIGHT: 8.25pt; mso-height-source: userset" height="11"> <TD class="xl25" style="WIDTH: 80pt; HEIGHT: 8.25pt" width="107" height="11"></TD> <TD class="xl25" style="WIDTH: 1pt" width="1"></TD> <TD class="xl29" style="WIDTH: 44pt" width="58"></TD> <TD class="xl25" style="WIDTH: 8pt" width="11"></TD> <TD class="xl29" style="WIDTH: 53pt" width="70"></TD> <TD class="xl25" style="WIDTH: 6pt" width="8"></TD> <TD class="xl29" style="WIDTH: 53pt" width="70"></TD> <TD class="xl39" style="WIDTH: 10pt" width="13"><SUP></SUP></TD> <TD class="xl29" style="WIDTH: 50pt" width="67"></TD> <TD class="xl25" style="WIDTH: 11pt" width="15"></TD> <TD class="xl29" style="WIDTH: 43pt" width="57"></TD> <TD class="xl25" style="WIDTH: 7pt" width="9"></TD> <TD class="xl29" style="WIDTH: 41pt" width="54"></TD> <TD class="xl25" style="WIDTH: 8pt" width="11"></TD> <TD class="xl29" style="WIDTH: 31pt" width="41"></TD> <TD class="xl27" style="WIDTH: 11pt" width="14"></TD> <TD class="xl29" style="WIDTH: 39pt" width="52"></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl25" style="WIDTH: 80pt; HEIGHT: 12.75pt" width="107" height="17">Net sales</TD> <TD class="xl25" style="WIDTH: 1pt" width="1" x:str=" "><SPAN style="mso-spacerun: yes"></SPAN></TD> <TD class="xl35" x:num="6727" x:fmla="=+C21+C22"><SPAN style="mso-spacerun: yes"></SPAN>6,727 </TD> <TD class="xl35"></TD> <TD class="xl35" x:num="5222" x:fmla="=+E21+E22"><SPAN style="mso-spacerun: yes"></SPAN>5,222 </TD> <TD class="xl35"></TD> <TD class="xl35" x:num="3053" x:fmla="=+G21+G22"><SPAN style="mso-spacerun: yes"></SPAN>3,053 </TD> <TD class="xl37"><SUP></SUP></TD> <TD class="xl35" x:num="5197" x:fmla="=+I21+I22"><SPAN style="mso-spacerun: yes"></SPAN>5,197 </TD> <TD class="xl35"></TD> <TD class="xl35" x:num="4396" x:fmla="=+K21+K22"><SPAN style="mso-spacerun: yes"></SPAN>4,396 </TD> <TD class="xl35"></TD> <TD class="xl35" x:num="0" x:fmla="=+M21+M22"><SPAN style="mso-spacerun: yes"></SPAN>- </TD> <TD class="xl35"></TD> <TD class="xl35" x:num="114" x:fmla="=+O21+O22"><SPAN style="mso-spacerun: yes"></SPAN>114 </TD> <TD class="xl42"></TD> <TD class="xl35" x:num="24709" x:fmla="=+Q21+Q22"><SPAN style="mso-spacerun: yes"></SPAN>24,709 </TD></TR> <TR style="HEIGHT: 22.5pt" height="30"> <TD class="xl25" style="WIDTH: 80pt; HEIGHT: 22.5pt" width="107" height="30">Pretax operating<BR><SPAN style="mso-spacerun: yes"></SPAN>income (loss)</TD> <TD class="xl25" style="WIDTH: 1pt" width="1"></TD> <TD class="xl35" x:num="1269"><SPAN style="mso-spacerun: yes"></SPAN>1,269 </TD> <TD class="xl47" x:num><SUP>5</SUP></TD> <TD class="xl35" x:num="627"><SPAN style="mso-spacerun: yes"></SPAN>627 </TD> <TD class="xl37"><SUP></SUP></TD> <TD class="xl35" x:num="482"><SPAN style="mso-spacerun: yes"></SPAN>482 </TD> <TD class="xl47" x:num><SUP>5</SUP></TD> <TD class="xl35" x:num="351"><SPAN style="mso-spacerun: yes"></SPAN>351 </TD> <TD class="xl47" x:num><SUP>5</SUP></TD> <TD class="xl35" x:num="825"><SPAN style="mso-spacerun: yes"></SPAN>825 </TD> <TD class="xl47" x:num><SUP>5</SUP></TD> <TD class="xl35" x:num="760"><SPAN style="mso-spacerun: yes"></SPAN>760 </TD> <TD class="xl37"><SUP></SUP></TD> <TD class="xl35" x:num="-69"><SPAN style="mso-spacerun: yes"></SPAN>(69)</TD> <TD class="xl47" x:num><SUP>4</SUP></TD> <TD class="xl35" x:num="4245" x:fmla="=+C25+E25+G25+I25+K25+M25+O25"><SPAN style="mso-spacerun: yes"></SPAN>4,245 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl30" style="WIDTH: 80pt; HEIGHT: 12.75pt" width="107" height="17"></TD> <TD class="xl25" style="WIDTH: 1pt" width="1"></TD> <TD class="xl25" style="WIDTH: 44pt" width="58"></TD> <TD class="xl25" style="WIDTH: 8pt" width="11"></TD> <TD class="xl25" style="WIDTH: 53pt" width="70"></TD> <TD class="xl25" style="WIDTH: 6pt" width="8"></TD> <TD class="xl25" style="WIDTH: 53pt" width="70"></TD> <TD class="xl39" style="WIDTH: 10pt" width="13"><SUP></SUP></TD> <TD class="xl25" style="WIDTH: 50pt" width="67"></TD> <TD class="xl25" style="WIDTH: 11pt" width="15"></TD> <TD class="xl25" style="WIDTH: 43pt" width="57"></TD> <TD class="xl25" style="WIDTH: 7pt" width="9"></TD> <TD class="xl25" style="WIDTH: 41pt" width="54"></TD> <TD class="xl25" style="WIDTH: 8pt" width="11"></TD> <TD class="xl25" style="WIDTH: 31pt" width="41"></TD> <TD class="xl27" style="WIDTH: 11pt" width="14"></TD> <TD class="xl25" style="WIDTH: 39pt" width="52"></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl31" style="WIDTH: 80pt; HEIGHT: 12.75pt" width="107" height="17" x:num>2007</TD> <TD class="xl25" style="WIDTH: 1pt" width="1"></TD> <TD class="xl25" style="WIDTH: 44pt" width="58"></TD> <TD class="xl25" style="WIDTH: 8pt" width="11"></TD> <TD class="xl25" style="WIDTH: 53pt" width="70"></TD> <TD class="xl25" style="WIDTH: 6pt" width="8"></TD> <TD class="xl25" style="WIDTH: 53pt" width="70"></TD> <TD class="xl39" style="WIDTH: 10pt" width="13"><SUP></SUP></TD> <TD class="xl25" style="WIDTH: 50pt" width="67"></TD> <TD class="xl25" style="WIDTH: 11pt" width="15"></TD> <TD class="xl25" style="WIDTH: 43pt" width="57"></TD> <TD class="xl25" style="WIDTH: 7pt" width="9"></TD> <TD class="xl25" style="WIDTH: 41pt" width="54"></TD> <TD class="xl25" style="WIDTH: 8pt" width="11"></TD> <TD class="xl25" style="WIDTH: 31pt" width="41"></TD> <TD class="xl27" style="WIDTH: 11pt" width="14"></TD> <TD class="xl25" style="WIDTH: 39pt" width="52"></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl25" style="WIDTH: 80pt; HEIGHT: 12.75pt" width="107" height="17">Segment sales</TD> <TD class="xl25" style="WIDTH: 1pt" width="1"></TD> <TD class="xl34" x:num="5591"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>5,591 </TD> <TD class="xl34"></TD> <TD class="xl34" x:num="4909"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>4,909 </TD> <TD class="xl34"></TD> <TD class="xl34" x:num="2834"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>2,834 </TD> <TD class="xl40"><SUP></SUP></TD> <TD class="xl34" x:num="4919"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>4,919 </TD> <TD class="xl34"></TD> <TD class="xl34" x:num="4244"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>4,244 </TD> <TD class="xl34"></TD> <TD class="xl34" x:num="0"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>- </TD> <TD class="xl34"></TD> <TD class="xl34" x:num="136"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>136 </TD> <TD class="xl43"></TD> <TD class="xl34" x:num="22633"><SPAN style="mso-spacerun: yes"></SPAN>$22,633 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl32" style="WIDTH: 80pt; HEIGHT: 12.75pt" width="107" height="17">Less transfers</TD> <TD class="xl25" style="WIDTH: 1pt" width="1"></TD> <TD class="xl36" x:num="0"><SPAN style="mso-spacerun: yes"></SPAN>- </TD> <TD class="xl35"></TD> <TD class="xl36" x:num="-40"><SPAN style="mso-spacerun: yes"></SPAN>(40)</TD> <TD class="xl35"></TD> <TD class="xl36" x:num="-90"><SPAN style="mso-spacerun: yes"></SPAN>(90)</TD> <TD class="xl37"><SUP></SUP></TD> <TD class="xl36" x:num="-26"><SPAN style="mso-spacerun: yes"></SPAN>(26)</TD> <TD class="xl35"></TD> <TD class="xl36" x:num="-68"><SPAN style="mso-spacerun: yes"></SPAN>(68)</TD> <TD class="xl35"></TD> <TD class="xl36" x:num="0"><SPAN style="mso-spacerun: yes"></SPAN>- </TD> <TD class="xl35"></TD> <TD class="xl36" x:num="-14"><SPAN style="mso-spacerun: yes"></SPAN>(14)</TD> <TD class="xl42"></TD> <TD class="xl36" x:num="-238"><SPAN style="mso-spacerun: yes"></SPAN>(238)</TD></TR> <TR style="HEIGHT: 6pt; mso-height-source: userset" height="8"> <TD class="xl24" style="HEIGHT: 6pt" height="8"></TD> <TD class="xl25" style="WIDTH: 1pt" width="1"></TD> <TD class="xl25" style="WIDTH: 44pt" width="58"></TD> <TD class="xl25" style="WIDTH: 8pt" width="11"></TD> <TD class="xl25" style="WIDTH: 53pt" width="70"></TD> <TD class="xl25" style="WIDTH: 6pt" width="8"></TD> <TD class="xl25" style="WIDTH: 53pt" width="70"></TD> <TD class="xl39" style="WIDTH: 10pt" width="13"><SUP></SUP></TD> <TD class="xl25" style="WIDTH: 50pt" width="67"></TD> <TD class="xl25" style="WIDTH: 11pt" width="15"></TD> <TD class="xl25" style="WIDTH: 43pt" width="57"></TD> <TD class="xl25" style="WIDTH: 7pt" width="9"></TD> <TD class="xl25" style="WIDTH: 41pt" width="54"></TD> <TD class="xl25" style="WIDTH: 8pt" width="11"></TD> <TD class="xl25" style="WIDTH: 31pt" width="41"></TD> <TD class="xl27" style="WIDTH: 11pt" width="14"></TD> <TD class="xl25" style="WIDTH: 39pt" width="52"></TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl25" style="WIDTH: 80pt; HEIGHT: 12.75pt" width="107" height="17">Net sales</TD> <TD class="xl25" style="WIDTH: 1pt" width="1"></TD> <TD class="xl35" x:num="5591" x:fmla="=SUM(C28:C29)"><SPAN style="mso-spacerun: yes"></SPAN>5,591 </TD> <TD class="xl35"></TD> <TD class="xl35" x:num="4869" x:fmla="=SUM(E28:E29)"><SPAN style="mso-spacerun: yes"></SPAN>4,869 </TD> <TD class="xl35"></TD> <TD class="xl35" x:num="2744" x:fmla="=SUM(G28:G29)"><SPAN style="mso-spacerun: yes"></SPAN>2,744 </TD> <TD class="xl37"><SUP></SUP></TD> <TD class="xl35" x:num="4893" x:fmla="=SUM(I28:I29)"><SPAN style="mso-spacerun: yes"></SPAN>4,893 </TD> <TD class="xl35"></TD> <TD class="xl35" x:num="4176" x:fmla="=SUM(K28:K29)"><SPAN style="mso-spacerun: yes"></SPAN>4,176 </TD> <TD class="xl35"></TD> <TD class="xl35" x:num="0" x:fmla="=SUM(M28:M29)"><SPAN style="mso-spacerun: yes"></SPAN>- </TD> <TD class="xl35"></TD> <TD class="xl35" x:num="122" x:fmla="=SUM(O28:O29)"><SPAN style="mso-spacerun: yes"></SPAN>122 </TD> <TD class="xl42"></TD> <TD class="xl35" x:num="22395" x:fmla="=SUM(Q28:Q29)"><SPAN style="mso-spacerun: yes"></SPAN>22,395 </TD></TR> <TR style="HEIGHT: 22.5pt" height="30"> <TD class="xl25" style="WIDTH: 80pt; HEIGHT: 22.5pt" width="107" height="30">Pretax operating<BR><SPAN style="mso-spacerun: yes"></SPAN>income (loss)</TD> <TD class="xl25" style="WIDTH: 1pt" width="1"></TD> <TD class="xl35" x:num="983"><SPAN style="mso-spacerun: yes"></SPAN>983 </TD> <TD class="xl35"></TD> <TD class="xl35" x:num="624"><SPAN style="mso-spacerun: yes"></SPAN>624 </TD> <TD class="xl37"><SUP></SUP></TD> <TD class="xl35" x:num="438"><SPAN style="mso-spacerun: yes"></SPAN>438 </TD> <TD class="xl37"><SUP></SUP></TD> <TD class="xl35" x:num="573"><SPAN style="mso-spacerun: yes"></SPAN>573 </TD> <TD class="xl47" x:num><SUP>3</SUP></TD> <TD class="xl35" x:num="922"><SPAN style="mso-spacerun: yes"></SPAN>922 </TD> <TD class="xl35"></TD> <TD class="xl35" x:num="703"><SPAN style="mso-spacerun: yes"></SPAN>703 </TD> <TD class="xl37"><SUP></SUP></TD> <TD class="xl35" x:num="-169"><SPAN style="mso-spacerun: yes"></SPAN>(169)</TD> <TD class="xl47" x:num><SUP>6</SUP></TD> <TD class="xl35" x:num="4074" x:fmla="=+C32+E32+G32+I32+K32+M32+O32"><SPAN style="mso-spacerun: yes"></SPAN>4,074 </TD></TR> <TR style="HEIGHT: 12.75pt" height="17"> <TD class="xl25" style="WIDTH: 80pt; HEIGHT: 12.75pt" width="107" height="17"></TD> <TD class="xl25" style="WIDTH: 1pt" width="1"></TD> <TD class="xl35"></TD> <TD class="xl35"></TD> <TD class="xl35"></TD> <TD class="xl37"><SUP></SUP></TD> <TD class="xl35"></TD> <TD class="xl45"><SUP></SUP></TD> <TD class="xl46"></TD> <TD class="xl37"><SUP></SUP></TD> <TD class="xl35"></TD> <TD class="xl35"></TD> <TD class="xl35"></TD> <TD class="xl37"><SUP></SUP></TD> <TD class="xl35"></TD> <TD class="xl45"><SUP></SUP></TD> <TD class="xl35"></TD></TR></TBODY></TABLE> <STYLE> <!--table {mso-displayed-decimal-separator:"\."; mso-displayed-thousand-separator:"\,";} @page {margin:1.0in .75in 1.0in .75in; mso-header-margin:.5in; mso-footer-margin:.5in;} ..font5 {color:windowtext; font-size:8.0pt; font-weight:400; font-style:normal; text-decoration:none; font-family:Arial, sans-serif; mso-font-charset:0;} tr {mso-height-source:auto;} col {mso-width-source:auto;} br {mso-data-placement:same-cell;} td {padding-top:1px; padding-right:1px; padding-left:1px; mso-ignore:padding; color:windowtext; font-size:10.0pt; font-weight:400; font-style:normal; text-decoration:none; font-family:Arial; mso-generic-font-family:auto; mso-font-charset:0; mso-number-format:General; text-align:general; vertical-align:bottom; border:none; mso-background-source:auto; mso-pattern:auto; mso-protection:locked visible; white-space:nowrap; mso-rotate:0;} ..xl24 {font-size:8.0pt; font-family:Arial, sans-serif; mso-font-charset:0;} ..xl25 {font-size:8.0pt; font-family:Arial, sans-serif; mso-font-charset:0; vertical-align:top; white-space:normal;} .xl26 {font-size:8.0pt; font-family:Arial, sans-serif; mso-font-charset:0; text-align:left; white-space:normal;} .xl27 {font-size:8.0pt; font-family:Arial, sans-serif; mso-font-charset:0; text-align:left; vertical-align:top; white-space:normal;} .xl28 {font-size:8.0pt; font-family:Arial, sans-serif; mso-font-charset:0; text-align:center; white-space:normal;} .xl29 {font-size:8.0pt; font-family:Arial, sans-serif; mso-font-charset:0; text-align:center; vertical-align:top; white-space:normal;} .xl30 {font-size:8.0pt; font-family:Arial, sans-serif; mso-font-charset:0; text-align:left; vertical-align:top; white-space:normal; padding-left:12px; mso-char-indent-count:1;} .xl31 {font-size:8.0pt; font-weight:700; font-family:Arial, sans-serif; mso-font-charset:0; text-align:left; vertical-align:top; white-space:normal;} .xl32 {font-size:8.0pt; font-family:Arial, sans-serif; mso-font-charset:0; white-space:normal;} .xl33 {font-size:8.0pt; font-family:Arial, sans-serif; mso-font-charset:0; text-align:center; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none; white-space:normal;} ..xl34 {font-size:8.0pt; font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"_\(\0022$\0022* \#\,\#\#0_\)\;_\(\0022$\0022* \\\(\#\,\#\#0\\\)\;_\(\0022$\0022* \0022-\0022_\)\;_\(\@_\)";} .xl35 {font-size:8.0pt; font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"_\(* \#\,\#\#0_\)\;_\(* \\\(\#\,\#\#0\\\)\;_\(* \0022-\0022_\)\;_\(\@_\)";} .xl36 {font-size:8.0pt; font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"_\(* \#\,\#\#0_\)\;_\(* \\\(\#\,\#\#0\\\)\;_\(* \0022-\0022_\)\;_\(\@_\)"; border-top:none; border-right:none; border-bottom:.5pt solid windowtext; border-left:none;} .xl37 {font-size:8.0pt; font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"_\(* \#\,\#\#0_\)\;_\(* \\\(\#\,\#\#0\\\)\;_\(* \0022-\0022_\)\;_\(\@_\)";} .xl38 {font-size:8.0pt; font-family:Arial, sans-serif; mso-font-charset:0; text-align:center; white-space:normal;} ..xl39 {font-size:8.0pt; font-family:Arial, sans-serif; mso-font-charset:0; vertical-align:top; white-space:normal;} .xl40 {font-size:8.0pt; font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"_\(\0022$\0022* \#\,\#\#0_\)\;_\(\0022$\0022* \\\(\#\,\#\#0\\\)\;_\(\0022$\0022* \0022-\0022_\)\;_\(\@_\)";} .xl41 {font-family:Arial, sans-serif; mso-font-charset:0;} .xl42 {font-size:8.0pt; font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"_\(* \#\,\#\#0_\)\;_\(* \\\(\#\,\#\#0\\\)\;_\(* \0022-\0022_\)\;_\(\@_\)"; text-align:left;} .xl43 {font-size:8.0pt; font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"_\(\0022$\0022* \#\,\#\#0_\)\;_\(\0022$\0022* \\\(\#\,\#\#0\\\)\;_\(\0022$\0022* \0022-\0022_\)\;_\(\@_\)"; text-align:left;} .xl44 {text-align:left;} .xl45 {font-size:8.0pt; font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"_\(* \#\,\#\#0_\)\;_\(* \\\(\#\,\#\#0\\\)\;_\(* \0022-\0022_\)\;_\(\@_\)"; text-align:left;} .xl46 {font-size:8.0pt; font-family:Arial, sans-serif; mso-font-charset:0; mso-number-format:"_\(* \#\,\#\#0_\)\;_\(* \\\(\#\,\#\#0\\\)\;_\(* \0022-\0022_\)\;_\(\@_\)"; text-align:center;} ..xl47 {font-size:8.0pt; font-family:Arial, sans-serif; mso-font-charset:0; text-align:left;} --> </STYLE> </P> <P class="MsoNormal">&nbsp;</P> <P class="MsoNormal"><SUP><SPAN style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">1</SPAN></SUP><SPAN style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"> A reconciliation of the pretax operating income totals reported for the operating segments to the applicable line item on the <SPAN style="mso-spacerun: yes"></SPAN></SPAN></P> <P class="MsoNormal"><SPAN style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman; mso-fareast-font-family: Times New Roman; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><SPAN style="mso-spacerun: yes"></SPAN>Consolidated Financial Statements is as follows:</SPAN></P> <P class="MsoNormal">&nbsp;</P> <P class="MsoNormal"> <TABLE style="WIDTH: 410pt; BORDER-COLLAPSE: collapse" cellSpacing="0" cellPadding="0" width="545" border="0" x:str> <COLGROUP> <COL style="WIDTH: 190pt; mso-width-source: userset; mso-width-alt: 9252" width="253"> <COL style="WIDTH: 7pt; mso-width-source: userset; mso-width-alt: 329" width="9"> <COL style="WIDTH: 48pt" width="64"> <COL style="WIDTH: 7pt; mso-width-source: userset; mso-width-alt: 329" width="9"> <COL style="WIDTH: 48pt" width="64"> <COL style="WIDTH: 7pt; mso-width-source: userset; mso-width-alt: 329" width="9"> <COL style="WIDTH: 48pt" width="64"> <COL style="WIDTH: 7pt; mso-width-source: userset; mso-width-alt: 329" width="9"> <COL style="WIDTH: 48pt" width="64"> <TBODY> <TR style="HEIGHT: 12.75pt; mso-height-source: userset" height="17"> <TD class="xl26" style="WIDTH: 190pt; HEIGHT: 12.75pt" width="253" height="17"></TD> <TD class="xl26" style="WIDTH: 7pt" width="9"></TD> <TD class="xl25" style="WIDTH: 103pt" width="137" colSpan="3">Three Months Ended</TD> <TD class="xl26" style="WIDTH: 7pt" width="9"></TD> <TD class="xl25" style="WIDTH: 103pt" width="137" colSpan="3">Nine Months Ended</TD></TR> <TR style="HEIGHT: 15pt" height="20"> <TD class="xl26" style="WIDTH: 190pt; HEIGHT: 15pt" width="253" height="20"></TD> <TD class="xl26" style="WIDTH: 7pt" width="9"></TD> <TD class="xl27" style="WIDTH: 103pt" width="137" colSpan="3">September 30,</TD> <TD class="xl26" style="WIDTH: 7pt" width="9"></TD> <TD class="xl27" style="WIDTH: 103pt" width="137" colSpan="3">September 30,</TD></TR> <TR style="HEIGHT: 15pt" height="20"> <TD class="xl24" style="WIDTH: 190pt; HEIGHT: 15pt" width="253" height="20"></TD> <TD class="xl25" style="WIDTH: 7pt" width="9"></TD> <TD class="xl28" style="WIDTH: 48pt" width="64" x:num>2008</TD> <TD class="xl25" style="WIDTH: 7pt" width="9"></TD> <TD class="xl27" style="WIDTH: 48pt" width="64" x:num>2007</TD> <TD class="xl25" style="WIDTH: 7pt" width="9"></TD> <TD class="xl28" style="WIDTH: 48pt" width="64" x:num>2008</TD> <TD class="xl25" style="WIDTH: 7pt" width="9"></TD> <TD class="xl27" style="WIDTH: 48pt" width="64" x:num>2007</TD></TR> <TR style="HEIGHT: 14.25pt" height="19"> <TD class="xl26" style="WIDTH: 190pt; HEIGHT: 14.25pt" width="253" height="19">Total segment PTOI</TD> <TD class="xl26" style="WIDTH: 7pt" width="9"></TD> <TD class="xl29" style="WIDTH: 48pt" width="64" x:num="682"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>682 </TD> <TD class="xl29" style="WIDTH: 7pt" width="9"></TD> <TD class="xl29" style="WIDTH: 48pt" width="64" x:num="916"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>916 </TD> <TD class="xl29" style="WIDTH: 7pt" width="9"></TD> <TD class="xl29" style="WIDTH: 48pt" width="64" x:num="4245"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>4,245 </TD> <TD class="xl29" style="WIDTH: 7pt" width="9"></TD> <TD class="xl29" style="WIDTH: 48pt" width="64" x:num="4074"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>4,074 </TD></TR> <TR style="HEIGHT: 14.25pt" height="19"> <TD class="xl26" style="WIDTH: 190pt; HEIGHT: 14.25pt" width="253" height="19">Net exchange gains/(losses), including affiliates</TD> <TD class="xl26" style="WIDTH: 7pt" width="9"></TD> <TD class="xl30" style="WIDTH: 48pt" width="64" x:num="45"><SPAN style="mso-spacerun: yes"></SPAN>45 </TD> <TD class="xl30" style="WIDTH: 7pt" width="9"></TD> <TD class="xl30" style="WIDTH: 48pt" width="64" x:num="-30"><SPAN style="mso-spacerun: yes"></SPAN>(30)</TD> <TD class="xl30" style="WIDTH: 7pt" width="9"></TD> <TD class="xl30" style="WIDTH: 48pt" width="64" x:num="-139"><SPAN style="mso-spacerun: yes"></SPAN>(139)</TD> <TD class="xl30" style="WIDTH: 7pt" width="9"></TD> <TD class="xl30" style="WIDTH: 48pt" width="64" x:num="-50"><SPAN style="mso-spacerun: yes"></SPAN>(50)</TD></TR> <TR style="HEIGHT: 15pt" height="20"> <TD class="xl26" style="WIDTH: 190pt; HEIGHT: 15pt" width="253" height="20">Corporate expenses and net interest</TD> <TD class="xl26" style="WIDTH: 7pt" width="9"></TD> <TD class="xl31" style="WIDTH: 48pt" width="64" x:num="-257"><SPAN style="mso-spacerun: yes"></SPAN>(257)</TD> <TD class="xl30" style="WIDTH: 7pt" width="9"></TD> <TD class="xl31" style="WIDTH: 48pt" width="64" x:num="-256"><SPAN style="mso-spacerun: yes"></SPAN>(256)</TD> <TD class="xl30" style="WIDTH: 7pt" width="9"></TD> <TD class="xl31" style="WIDTH: 48pt" width="64" x:num="-754"><SPAN style="mso-spacerun: yes"></SPAN>(754)</TD> <TD class="xl30" style="WIDTH: 7pt" width="9"></TD> <TD class="xl31" style="WIDTH: 48pt" width="64" x:num="-774"><SPAN style="mso-spacerun: yes"></SPAN>(774)</TD></TR> <TR style="HEIGHT: 12pt; mso-height-source: userset" height="16"> <TD class="xl26" style="WIDTH: 190pt; HEIGHT: 12pt" width="253" height="16">Income before income taxes and minority interests</TD> <TD class="xl26" style="WIDTH: 7pt" width="9"></TD> <TD class="xl32" style="WIDTH: 48pt" width="64" x:num="470" x:fmla="=SUM(C4:C6)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>470 </TD> <TD class="xl29" style="WIDTH: 7pt" width="9"></TD> <TD class="xl32" style="WIDTH: 48pt" width="64" x:num="630" x:fmla="=SUM(E4:E6)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>630 </TD> <TD class="xl29" style="WIDTH: 7pt" width="9"></TD> <TD class="xl32" style="WIDTH: 48pt" width="64" x:num="3352" x:fmla="=SUM(G4:G6)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>3,352 </TD> <TD class="xl29" style="WIDTH: 7pt" width="9"></TD> <TD class="xl32" style="WIDTH: 48pt" width="64" x:num="3250" x:fmla="=SUM(I4:I6)"><SPAN style="mso-spacerun: yes"></SPAN>$<SPAN style="mso-spacerun: yes"> </SPAN>3,250 </TD></TR> <TR style="HEIGHT: 6pt; mso-height-source: userset" height="8"> <TD style="HEIGHT: 6pt" height="8"></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD> <TD></TD></TR></TBODY></TABLE> <STYLE> <!-- /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </STYLE> </P> <P class="MsoNormal"><SUP><SPAN style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN></SUP> <STYLE> <!-- /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </STYLE> </P> <P> <STYLE> <!-- /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </STYLE> <SPAN style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman; mso-fareast-font-family: Times New Roman; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><SUP><SPAN style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman; mso-fareast-font-family: Times New Roman; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA">2</SPAN></SUP> <STYLE> <!-- /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </STYLE> Includes a $40 litigation related charge in connection with an environmental matter related to a discontinued business.<SPAN style="mso-spacerun: yes"> </SPAN>See Note 9 for more details.</SPAN> <STYLE> <!-- /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </STYLE> </P><SPAN style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"> <P class="MsoNormal"><SUP><SPAN style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">3</SPAN></SUP>Includes a $52 charge in connection with the elastomers antitrust matters.<SPAN style="mso-spacerun: yes"> </SPAN>See Note 9 for more information.</SPAN><SPAN style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-fareast-font-family: MS Mincho; mso-fareast-language: JA"></SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-fareast-font-family: MS Mincho; mso-fareast-language: JA"></SPAN>&nbsp;</P><SPAN style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-fareast-font-family: MS Mincho; mso-fareast-language: JA"> <P class="MsoNormal"><SUP><SPAN style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">4</SPAN></SUP>Includes a $51 benefit from a litigation settlement</SPAN><SPAN style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">.</SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-fareast-font-family: MS Mincho; mso-fareast-language: JA"></SPAN>&nbsp;</P><SPAN style="FONT-SIZE: 8pt; COLOR: black; FONT-FAMILY: Arial; mso-fareast-font-family: MS Mincho; mso-fareast-language: JA"> <P class="MsoNormal"><SUP><SPAN style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">5</SPAN></SUP>Includes a $227 charge for damaged facilities, inventory write-offs, clean-up costs, and other costs related to the hurricanes, in the following segments: Agriculture &amp; Nutrition - $4; Electronic &amp; Communication Technologies - $2; Performance Materials - $216; and Safety &amp; Protection - $5.<SPAN style="mso-spacerun: yes"> </SPAN>See Note 14 for additional information.</SPAN></P> <P><SPAN style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman; mso-fareast-font-family: Times New Roman; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><SUP><SPAN style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman; mso-fareast-font-family: Times New Roman; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA">6</SPAN></SUP> <STYLE> <!-- /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </STYLE> Includes a $55 litigation related charge in connection with an environmental matter related to a discontinued business.<SPAN style="mso-spacerun: yes"> </SPAN>See Note 9 for more details.</SPAN> <STYLE> <!-- /* Font Definitions */ @font-face {font-family:"MS Mincho"; panose-1:2 2 6 9 4 2 5 8 3 4; mso-font-alt:"?????? ??????"; mso-font-charset:128; mso-generic-font-family:roman; mso-font-format:other; mso-font-pitch:fixed; mso-font-signature:1 134676480 16 0 131072 0;} @font-face {font-family:"\@MS Mincho"; panose-1:0 0 0 0 0 0 0 0 0 0; mso-font-charset:128; mso-generic-font-family:roman; mso-font-format:other; mso-font-pitch:fixed; mso-font-signature:1 134676480 16 0 131072 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </STYLE> </P> <P>&nbsp;</P> 2534000000 804000000 2794000000 873000000 <html><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"> <P class="MsoNormal"><A name="note1"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">Note 1.</SPAN></B></A><A name="note1"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"><SPAN style="mso-spacerun: yes"> </SPAN>Summary of Significant Accounting Policies<BR style="mso-special-character: line-break"><BR style="mso-special-character: line-break"></SPAN></B></P> <P class="MsoNormal" style="MARGIN-BOTTOM: 3pt"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">Interim Financial Statements</SPAN></B></P><SPAN style="FONT-FAMILY: Arial"> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial">The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) for interim financial information and the instructions to Form&nbsp;10-Q and Rule&nbsp;10-01 of Regulation&nbsp;S-X.<SPAN style="mso-spacerun: yes"> </SPAN>In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the results for interim periods have been included.<SPAN style="mso-spacerun: yes"> </SPAN>Results for interim periods should not be considered indicative of results for a full year.<SPAN style="mso-spacerun: yes"> </SPAN>These interim Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto contained in the company's Annual Report on Form&nbsp;10-K for the year ended December 31, 2007 as amended on Form 10-K/A (Amendment No. 1), collectively referred to as the '2007 Annual Report'.<SPAN style="mso-spacerun: yes"> </SPAN>The Consolidated Financial Statements include the accounts of the company and all of its subsidiaries in which a controlling interest is maintained, as well as variable interest entities in which DuPont is considered the primary beneficiary.<SPAN style="mso-spacerun: yes"> </SPAN>Certain reclassifications of prior year's data have been made to conform to current year classifications.</SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; mso-fareast-font-family: Times New Roman; mso-fareast-language: EN-US; mso-ansi-language: EN-US; mso-bidi-language: AR-SA"><BR style="mso-special-character: line-break"><BR style="mso-special-character: line-break"></SPAN> <STYLE> <!-- /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </STYLE> </SPAN><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">Accounting Standards Issued Not Yet Adopted </SPAN></B></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN style="FONT-FAMILY: Arial"></SPAN>&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN style="FONT-FAMILY: Arial">In December 2007, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 141 (revised 2007) "Business Combinations" (SFAS 141R) which replaces SFAS No. 141.<SPAN style="mso-spacerun: yes"> </SPAN>SFAS 141R addresses the recognition and measurement of identifiable assets acquired, liabilities assumed, and non-controlling interests in business combinations.<SPAN style="mso-spacerun: yes"> </SPAN>SFAS 141R also requires disclosure that enables users of the financial statements to better evaluate the nature and financial effect of business combinations.<SPAN style="mso-spacerun: yes"> </SPAN>SFAS 141R applies prospectively to 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.<SPAN style="mso-spacerun: yes"> </SPAN>SFAS 141R will be adopted by the company on January 1, 2009.<SPAN style="mso-spacerun: yes"> </SPAN><SPAN style="COLOR: black">The company does not believe that at the time of adoption SFAS 141R will have a material impact on its Consolidated Financial Statements. This standard requires significantly different accounting treatment for business combinations than current requirements. Thus, accounting for potential future business combinations after adoption may produce a significantly different result and financial statement impact than under current standards. </SPAN></SPAN></P> <P class="MsoHeader" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial"></SPAN>&nbsp;</P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN style="FONT-FAMILY: Arial">In December 2007, the FASB issued SFAS No. 160, "Noncontrolling Interests in Consolidated Financial Statements-an amendment of Accounting Research Bulletin No. 51" (SFAS 160)</SPAN><SPAN style="COLOR: red; FONT-FAMILY: Arial; mso-fareast-font-family: MS Mincho; mso-fareast-language: JA"> </SPAN><SPAN style="FONT-FAMILY: Arial; mso-fareast-font-family: MS Mincho; mso-fareast-language: JA">which changes the</SPAN><SPAN style="FONT-FAMILY: Arial"> accounting and reporting for minority interests and for the deconsolidation of a subsidiary. It also clarifies that a third-party, non-controlling interest in a consolidated subsidiary is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements.<SPAN style="mso-spacerun: yes"> </SPAN>SFAS 160 also requires disclosure that clearly identifies and distinguishes between the interests of the parent and the interests of the non-controlling owners. SFAS 160 is effective for fiscal years beginning after December 15, 2008.<SPAN style="mso-spacerun: yes"> </SPAN>SFAS 160 will be adopted by the company on January 1, 2009.<SPAN style="mso-spacerun: yes"> </SPAN></SPAN><SPAN style="COLOR: black; FONT-FAMILY: Arial; mso-bidi-font-family: Arial">The company does not believe that at the time of adoption SFAS 160 will have a material impact on its Consolidated Financial Statements.</SPAN><SPAN style="FONT-FAMILY: Arial"><SPAN style="mso-spacerun: yes"> </SPAN></SPAN><SPAN style="COLOR: black; FONT-FAMILY: Arial; mso-bidi-font-family: Arial"></SPAN></P> <P class="MsoHeader" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><B style="mso-bidi-font-weight: normal"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN></B>&nbsp;</P> <P class="MsoHeader" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman">In March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative Instruments and Hedging Activities, an amendment of FASB Statement No. 133" (SFAS 161). Effective for fiscal years and interim periods beginning after November 15, 2008, the new standard requires enhanced disclosures about derivative and hedging activities that are intended to better convey the purpose of derivative use and the risks managed.<SPAN style="mso-spacerun: yes"> </SPAN>A tabular format will display derivatives' fair values and gain or loss recognized and the classification of those amounts within the financial statements.<SPAN style="mso-spacerun: yes"> </SPAN>SFAS 161 will not affect the company's financial position or results of operations. <SPAN style="mso-spacerun: yes"></SPAN>The new standard solely affects the disclosure of information.</SPAN></P> <P class="MsoHeader" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN>&nbsp;</P> <P class="MsoNormal"><SPAN style="COLOR: black; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt">In September 2008, FASB issued FASB Staff Position (FSP) FAS 133-1 and FIN 45-4 which is effective for reporting periods ending after November 15, 2008 and requires additional disclosures on credit derivatives and the payment/performance risk of guarantees accounted for under </SPAN><SPAN style="COLOR: black; FONT-FAMILY: Arial">SFAS 133 and </SPAN><SPAN style="COLOR: black; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt">FASB Interpretation No. 45, respectively.</SPAN><SPAN style="COLOR: black; FONT-FAMILY: Arial"> FSP FAS 133-1 and FIN 45-4 solely affects the disclosure of information and will not affect the company's financial position or operations.</SPAN><SPAN style="COLOR: black; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt"></SPAN></P> <P class="MsoNormal" style="TEXT-JUSTIFY: inter-ideograph; TEXT-ALIGN: justify; mso-layout-grid-align: none"><SPAN style="FONT-FAMILY: Arial; mso-bidi-font-family: Times New Roman"></SPAN>&nbsp;</P> <P class="MsoNormal"> <STYLE> <!-- /* Font Definitions */ @font-face {font-family:"MS Mincho"; panose-1:2 2 6 9 4 2 5 8 3 4; mso-font-alt:"?????? ??????"; mso-font-charset:128; mso-generic-font-family:roman; mso-font-format:other; mso-font-pitch:fixed; mso-font-signature:1 134676480 16 0 131072 0;} @font-face {font-family:" Arial"; panose-1:0 0 0 0 0 0 0 0 0 0; mso-font-alt:Arial; mso-font-charset:0; mso-generic-font-family:auto; mso-font-format:other; mso-font-pitch:auto; mso-font-signature:3 0 0 0 1 0;} @font-face {font-family:"\@MS Mincho"; panose-1:0 0 0 0 0 0 0 0 0 0; mso-font-charset:128; mso-generic-font-family:roman; mso-font-format:other; mso-font-pitch:fixed; mso-font-signature:1 134676480 16 0 131072 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} p.MsoHeader, li.MsoHeader, div.MsoHeader {margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; tab-stops:center 3.0in right 6.0in; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:EN-US;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </STYLE> </SPAN></B></A></P> 11136000000 12674000000 87041000 87041000 6727000000 6727000000 EX-100.SCH 3 dd-20080930.xsd SCHEMA DOCUMENT link:presentationLink EX-100.CAL 4 dd-20080930_cal.xml CALCULATION LINKBASE DOCUMENT EX-100.LAB 5 dd-20080930_lab.xml LABELS LINKBASE DOCUMENT EX-100.PRE 6 dd-20080930_pre.xml PRESENTATION LINKBASE DOCUMENT EX-100.DEF 7 dd-20080930_def.xml DEFINITION LINKBASE DOCUMENT