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<div> <a name="_AUC25f8e1823bab419096ef375af91cd92d">10. Long-term Customer Financing and Sales of Receivables</a>   Long-term Customer Financing   Long-term receivables consist of trade receivables with payment terms greater than twelve months, long-term loans and lease receivables under sales-type leases. Long-term receivables consist of the following:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">    July 4,      2009     </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">    December 31,           2008          </td> </tr> <tr style="mso-yfti-irow:1"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> Long-term receivables </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">    $  110 </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">         $    169 </td> </tr> <tr style="mso-yfti-irow:2"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> Less allowance for losses </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">            (3) </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                   (7) </td> </tr> <tr style="mso-yfti-irow:3"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">         107 </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">               162 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> Less current portion </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">          (37) </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">              (110) </td> </tr> <tr style="mso-yfti-irow:5;mso-yfti-lastrow:yes"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> Non-current long-term receivables, net </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">    $     70 </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">         $      52 </td> </tr> </table>   The current portion of long-term receivables is included in Accounts receivable and the non-current portion of long-term receivables is included in Other assets in the Company’s condensed consolidated balance sheets.   Certain purchasers of the Company’s infrastructure equipment may request that the Company provide long-term financing (defined as financing with terms greater than one year) in connection with the sale of equipment. These requests may include all or a portion of the purchase price of the equipment. However, the Company’s obligation to provide long-term financing is often conditioned on the issuance of a letter of credit in favor of the Company by a reputable bank to support the purchaser’s credit or a pre-existing commitment from a reputable bank to purchase the long-term receivables from the Company. The Company had outstanding commitments to provide long-term financing to third parties totaling $343 million and $370 million at July 4, 2009 and December 31, 2008, respectively. Of these amounts, $14 million and $266 million were supported by letters of credit or by bank commitments to purchase long-term receivables at July 4, 2009 and December 31, 2008, respectively.   In addition to providing direct financing to certain equipment customers, the Company also assists customers in obtaining financing directly from banks and other sources to fund equipment purchases. The Company had committed to provide financial guarantees relating to customer financing totaling $30 million and $43 million at July 4, 2009 and December 31, 2008, respectively (including $22 million and $23 million at July 4, 2009 and December 31, 2008, respectively, relating to the sale of short-term receivables). Customer financing guarantees outstanding were $3 million and $6 million at July 4, 2009 and December 31, 2008, respectively (including $1 million and $4 million at July 4, 2009 and December 31, 2008, respectively, relating to the sale of short-term receivables).   Sales of Receivables   From time to time, the Company sells accounts receivable and long-term receivables in transactions that qualify as “true-sales”. Certain of these accounts receivable and long-term receivables are sold to third parties on a one-time, non-recourse basis, while others are sold to third parties under committed facilities that involve contractual commitments from these parties to purchase qualifying receivables up to an outstanding monetary limit. Committed facilities may be revolving in nature and, typically, must be renewed annually. The Company may or may not retain the obligation to service the sold accounts receivable and long-term receivables.   At July 4, 2009, the Company had $200 million of committed revolving facilities for the sale of accounts receivable, of which $107 million was utilized. At December 31, 2008, the Company had $532 million of committed revolving facilities for the sale of accounts receivable, of which $497 million was utilized. During the first quarter of 2009, a $400 million committed accounts receivable facility expired and was not renewed. During the second quarter of 2009, a $132 million committed accounts receivable facility was terminated. In June 2009, the Company initiated a new $200 million committed revolving domestic accounts receivable facility.   In addition, as of December 31, 2008, the Company had $435 million of committed facilities associated with the sale of long-term financing receivables for a single customer, of which $262 was utilized. At July 4, 2009, the Company had no significant committed facilities for the sale of long-term receivables.   Total sales of accounts receivable and long-term receivables were $367 million and $921 million during the three month periods ended July 4, 2009 and June 28, 2008, respectively, and $626 million and $1.7 billion for the six month periods ended July 4, 2009 and June 28, 2008, respectively. At July 4, 2009, the Company retained servicing obligations for $233 million of sold accounts receivables and $369 million of long-term receivables compared to $621 of accounts receivables and $400 million of long-term receivables at December, 31, 2008.   Under certain arrangements, the value of accounts receivable sold is covered by credit insurance purchased from third-party insurance companies, less deductibles or self-insurance requirements under the insurance policies. The Company’s total credit exposure, less insurance coverage, to outstanding accounts receivables that have been sold was $22 million and $23 million at July 4, 2009 and December 31, 2008, respectively. <style> /*<![CDATA[*/  /* 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-priority:99; mso-style-qformat: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","serif";} /*]]>*/ </style> </div> <div> <a name="_AUC1a181786f97b47d1898918d7d930cda7">3. Other Financial Data</a>   Statement of Operations Information   Other Charges   Other charges included in Operating earnings (loss) consist of the following:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="426" valign="top" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="150" colspan="2" valign="top" style= "width:112.7pt;padding:0in 2.35pt 0in 2.35pt">        Three Months Ended       </td> <td width="150" colspan="2" valign="top" style= "width:112.7pt;padding:0in 2.35pt 0in 2.35pt">           Six Months Ended         </td> </tr> <tr style="mso-yfti-irow:1"> <td width="426" valign="top" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       July 4,        2009       </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">      June 28,        2008       </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       July 4,        2009       </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">      June 28,        2008       </td> </tr> <tr style="mso-yfti-irow:2"> <td width="426" valign="top" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> Amortization of intangible assets </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $     70 </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $     81 </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $  141 </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $  164 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="426" valign="top" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> Reorganization of businesses </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              49 </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              19 </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">           207 </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              93 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="426" valign="top" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> Facility impairment </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              39 </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              — </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              39 </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              — </td> </tr> <tr style="mso-yfti-irow:5"> <td width="426" valign="top" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> Separation-related transaction costs </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              — </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              20 </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              — </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              20 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="426" valign="top" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> Legal settlements </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">             (55) </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              37 </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">             (55) </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              57 </td> </tr> <tr style="mso-yfti-irow:7;mso-yfti-lastrow:yes"> <td width="426" valign="top" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $  103 </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $  157 </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $  332 </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $  334 </td> </tr> </table>   During the three months ended July 4, 2009, the Company classified a facility as held for sale and wrote it down to its fair value, less estimated selling costs, resulting in an impairment loss of $39 million, which was included in Other charges for the period.   Other Income (Expense)   Interest expense, net, and Other both included in Other income (expense) consist of the following:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="426" valign="top" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="150" colspan="2" valign="top" style= "width:112.7pt;padding:0in 2.35pt 0in 2.35pt">        Three Months Ended       </td> <td width="150" colspan="2" valign="top" style= "width:112.7pt;padding:0in 2.35pt 0in 2.35pt">           Six Months Ended         </td> </tr> <tr style="mso-yfti-irow:1"> <td width="426" valign="top" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       July 4,        2009       </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">      June 28,        2008       </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       July 4,        2009       </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">      June 28,        2008       </td> </tr> <tr style="mso-yfti-irow:2"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Interest expense, net: </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">                  </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">                   </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">                   </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">                   </td> </tr> <tr style="mso-yfti-irow:3"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Interest expense </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $   (49) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">      $     (74) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">      $  (111) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">      $  (152) </td> </tr> <tr style="mso-yfti-irow:4"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Interest income </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">             19 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              64 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              46 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">            140 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="426" valign="top" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $   (30) </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">      $     (10) </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">      $     (65) </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">      $     (12) </td> </tr> <tr style="mso-yfti-irow:6"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Other: </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">                  </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">                   </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">                   </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">                   </td> </tr> <tr style="mso-yfti-irow:7"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Mark-to-market on Sigma Fund investments </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $    68 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">      $      — </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">      $      75 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">      $      — </td> </tr> <tr style="mso-yfti-irow:8"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Foreign currency gain (loss) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">            (34) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              13 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">             (28) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              14 </td> </tr> <tr style="mso-yfti-irow:9"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Investment impairments </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">            (26) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">           (116) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">             (33) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">           (134) </td> </tr> <tr style="mso-yfti-irow:10"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Impairment charges on Sigma Fund investments </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              — </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">               — </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">               — </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">               (4) </td> </tr> <tr style="mso-yfti-irow:11"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:8.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Gain from the extinguishment of the Company’s outstanding long-term debt </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              — </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">               — </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              67 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">               — </td> </tr> <tr style="mso-yfti-irow:12"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:8.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Gain on interest rate swaps </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              — </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">               — </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">               — </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              24 </td> </tr> <tr style="mso-yfti-irow:13"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Other </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">             15 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              11 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              12 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">                 3 </td> </tr> <tr style="mso-yfti-irow:14;mso-yfti-lastrow:yes"> <td width="426" valign="top" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $    23 </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">      $     (92) </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">      $      93 </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">      $     (97) </td> </tr> </table>   During the three months ended December 31, 2007, concurrently with the issuance of debt, the Company entered into several interest rate swaps to convert the fixed rate interest cost of the debt to a floating rate. At the time of entering into these interest rate swaps, the swaps were designated as fair value hedges and qualified for hedge accounting treatment. The swaps were originally designated as fair value hedges of the underlying debt, including the Company’s credit spread. During the three months ended March 29, 2008, the swaps were no longer considered effective hedges because of the volatility in the price of the Company’s fixed-rate domestic term debt and the swaps were dedesignated. In the same period, the Company was able to redesignate the same interest rate swaps as fair value hedges of the underlying debt, exclusive of the Company’s credit spread. For the period of time that the swaps were deemed ineffective hedges, the Company recognized a gain of $24 million, representing the increase in the fair value of the swaps.   Earnings (Loss) Per Common Share   The computation of basic and diluted earnings (loss) per common share attributable to Motorola, Inc. common shareholders is as follows:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="444" valign="top" style= "width:332.7pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="283" colspan="4" valign="top" style= "width:212.0pt;padding:0in 2.35pt 0in 2.35pt">               Amounts attributable to Motorola, Inc.                              common shareholders                            </td> </tr> <tr style="mso-yfti-irow:1"> <td width="444" valign="top" style= "width:332.7pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="141" colspan="2" valign="top" style= "width:106.0pt;padding:0in 2.35pt 0in 2.35pt">     Continuing Operations   </td> <td width="141" colspan="2" valign="top" style= "width:106.0pt;padding:0in 2.35pt 0in 2.35pt">             Net Earnings           </td> </tr> <tr style="mso-yfti-irow:2"> <td width="444" valign="top" style= "width:332.7pt;padding:0in 2.35pt 0in 2.35pt">   Three Months Ended </td> <td width="71" valign="top" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">      July 4,        2009      </td> <td width="71" valign="top" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">     June 28,        2008      </td> <td width="71" valign="top" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">      July 4,        2009      </td> <td width="71" valign="top" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">     June 28,        2008      </td> </tr> <tr style="mso-yfti-irow:3"> <td width="444" valign="bottom" style= "width:332.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 323.35pt; mso-layout-grid-align:none;text-autospace:none"> Basic earnings per common share: </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">                     </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">                     </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">                     </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">                     </td> </tr> <tr style="mso-yfti-irow:4"> <td width="444" valign="bottom" style= "width:332.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 323.35pt; mso-layout-grid-align:none;text-autospace:none"> Earnings </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt"> $            26 </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt"> $              4 </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt"> $            26 </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt"> $              4 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="444" valign="bottom" style= "width:332.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 323.35pt; mso-layout-grid-align:none;text-autospace:none"> Weighted average common shares outstanding </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">      2,293.9 </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">      2,262.6 </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">      2,293.9 </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">      2,262.6 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="444" valign="bottom" style= "width:332.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 323.35pt; mso-layout-grid-align:none;text-autospace:none"> Per share amount </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt"> $        0.01 </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt"> $        0.00 </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt"> $        0.01 </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt"> $        0.00 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="444" valign="bottom" style= "width:332.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 323.35pt; mso-layout-grid-align:none;text-autospace:none"> Diluted earnings per common share: </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">                     </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">                     </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">                     </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">                     </td> </tr> <tr style="mso-yfti-irow:8"> <td width="444" valign="bottom" style= "width:332.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 323.35pt; mso-layout-grid-align:none;text-autospace:none"> Earnings </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt"> $            26 </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt"> $              4 </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt"> $            26 </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt"> $              4 </td> </tr> <tr style="mso-yfti-irow:9"> <td width="444" valign="bottom" style= "width:332.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 323.35pt; mso-layout-grid-align:none;text-autospace:none"> Weighted average common shares outstanding </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">      2,293.9 </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">      2,262.6 </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">      2,293.9 </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">      2,262.6 </td> </tr> <tr style="mso-yfti-irow:10"> <td width="444" valign="bottom" style= "width:332.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 323.35pt; mso-layout-grid-align:none;text-autospace:none"> Add effect of dilutive securities: </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">                     </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">                     </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">                     </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">                     </td> </tr> <tr style="mso-yfti-irow:11"> <td width="444" valign="bottom" style= "width:332.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 323.35pt; mso-layout-grid-align:none;text-autospace:none"> Share-based awards and other </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">            12.5 </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">              6.9 </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt"> $        12.5 </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">              6.9 </td> </tr> <tr style="mso-yfti-irow:12"> <td width="444" valign="bottom" style= "width:332.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 323.35pt; mso-layout-grid-align:none;text-autospace:none"> Diluted weighted average common shares outstanding </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">      2,306.4 </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">      2,269.5 </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">      2,306.4 </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt">      2,269.5 </td> </tr> <tr style="mso-yfti-irow:13;mso-yfti-lastrow:yes"> <td width="444" valign="bottom" style= "width:332.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 323.35pt; mso-layout-grid-align:none;text-autospace:none"> Per share amount </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt"> $        0.01 </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt"> $        0.00 </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt"> $        0.01 </td> <td width="71" valign="bottom" style= "width:53.0pt;padding:0in 2.35pt 0in 2.35pt"> $        0.00 </td> </tr> </table>   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="457" valign="top" style= "width:342.9pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="269" colspan="4" valign="top" style= "width:201.8pt;padding:0in 2.35pt 0in 2.35pt">             Amounts attributable to Motorola, Inc.                           common shareholders                          </td> </tr> <tr style="mso-yfti-irow:1"> <td width="457" valign="top" style= "width:342.9pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="135" colspan="2" valign="top" style= "width:100.9pt;padding:0in 2.35pt 0in 2.35pt">    Continuing Operations  </td> <td width="135" colspan="2" valign="top" style= "width:100.9pt;padding:0in 2.35pt 0in 2.35pt">                Net Loss              </td> </tr> <tr style="mso-yfti-irow:2"> <td width="457" valign="top" style= "width:342.9pt;padding:0in 2.35pt 0in 2.35pt">   Six Months Ended </td> <td width="67" valign="top" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">      July 4,       2009      </td> <td width="67" valign="top" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">    June 28,       2008      </td> <td width="67" valign="top" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">      July 4,       2009      </td> <td width="67" valign="top" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">    June 28,       2008      </td> </tr> <tr style="mso-yfti-irow:3"> <td width="457" valign="bottom" style= "width:342.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 333.55pt; mso-layout-grid-align:none;text-autospace:none"> Basic loss per common share: </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">                    </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">                    </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">                    </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">                    </td> </tr> <tr style="mso-yfti-irow:4"> <td width="457" valign="bottom" style= "width:342.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 333.55pt; mso-layout-grid-align:none;text-autospace:none"> Loss </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">    $     (265) </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">     $    (190) </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">    $     (205) </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">    $     (190) </td> </tr> <tr style="mso-yfti-irow:5"> <td width="457" valign="bottom" style= "width:342.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 333.55pt; mso-layout-grid-align:none;text-autospace:none"> Weighted average common shares outstanding </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">      2,286.5 </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">      2,260.5 </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">      2,286.5 </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">      2,260.5 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="457" valign="bottom" style= "width:342.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 333.55pt; mso-layout-grid-align:none;text-autospace:none"> Per share amount </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">    $    (0.12) </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">    $    (0.08) </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">    $    (0.09) </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">    $    (0.08) </td> </tr> <tr style="mso-yfti-irow:7"> <td width="457" valign="bottom" style= "width:342.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 333.55pt; mso-layout-grid-align:none;text-autospace:none"> Diluted loss per common share: </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">                    </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">                    </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">                    </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">                    </td> </tr> <tr style="mso-yfti-irow:8"> <td width="457" valign="bottom" style= "width:342.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 333.55pt; mso-layout-grid-align:none;text-autospace:none"> Loss </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">   $      (265) </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">    $     (190) </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">    $     (205) </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">    $     (190) </td> </tr> <tr style="mso-yfti-irow:9"> <td width="457" valign="bottom" style= "width:342.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 333.55pt; mso-layout-grid-align:none;text-autospace:none"> Weighted average common shares outstanding </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">      2,286.5 </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">      2,260.5 </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">      2,286.5 </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">      2,260.5 </td> </tr> <tr style="mso-yfti-irow:10"> <td width="457" valign="bottom" style= "width:342.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 333.55pt; mso-layout-grid-align:none;text-autospace:none"> Diluted weighted average common shares outstanding </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">      2,286.5 </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">      2,260.5 </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">      2,286.5 </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">      2,260.5 </td> </tr> <tr style="mso-yfti-irow:11;mso-yfti-lastrow:yes"> <td width="457" valign="bottom" style= "width:342.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 333.55pt; mso-layout-grid-align:none;text-autospace:none"> Per share amount </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">   $     (0.12) </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">   $     (0.08) </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">    $    (0.09) </td> <td width="67" valign="bottom" style= "width:50.45pt;padding:0in 2.35pt 0in 2.35pt">    $    (0.08) </td> </tr> </table>   For the six months ended July 4, 2009 and June 28, 2008, the Company was in a net loss position and, accordingly, the basic and diluted weighted average shares outstanding are equal because any increase to the basic shares would be antidilutive. In the computation of diluted earnings per common share from both continuing operations and on a net earnings basis for the three months ended July 4, 2009 and June 28, 2008, 158.8 million and 196.3 million, respectively, out-of-the-money stock options were excluded because their inclusion would have been antidilutive. In the computation of diluted loss per common share from both continuing operations and on a net loss basis for the six months ended July 4, 2009 and June 28, 2008, the assumed exercise of 190.6 million, and 186.1 million stock options, respectively, were excluded because their inclusion would have been antidilutive.   Balance Sheet Information   Cash and Cash Equivalents   The Company’s cash and cash equivalents (which are highly-liquid investments with an original maturity of three months or less) were $2.9 billion and $3.1 billion at July 4, 2009 and December 31, 2008, respectively. Of these amounts, $367 million and $343 million, respectively, were restricted.   Sigma Fund   The Sigma Fund consists of the following:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="463" valign="top" style= "width:347.2pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="130" colspan="2" valign="top" style= "width:97.55pt;padding:0in 2.35pt 0in 2.35pt">            July 4, 2009          </td> <td width="133" colspan="2" valign="top" style= "width:99.95pt;padding:0in 2.35pt 0in 2.35pt">       December 31, 2008     </td> </tr> <tr style="mso-yfti-irow:1"> <td width="463" valign="top" style= "width:347.2pt;padding:0in 2.35pt 0in 2.35pt"> Fair Value </td> <td width="65" valign="top" style= "width:48.55pt;padding:0in 2.35pt 0in 2.35pt">    Current   </td> <td width="65" valign="top" style= "width:49.0pt;padding:0in 2.35pt 0in 2.35pt"> Non-current </td> <td width="65" valign="top" style= "width:48.55pt;padding:0in 2.35pt 0in 2.35pt">    Current   </td> <td width="69" valign="top" style= "width:51.4pt;padding:0in 2.35pt 0in 2.35pt"> Non-Current </td> </tr> <tr style="mso-yfti-irow:2"> <td width="463" valign="bottom" style= "width:347.2pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:95%;mso-pagination:none;tab-stops:dotted 337.85pt; mso-layout-grid-align:none;text-autospace:none"> Cash </td> <td width="65" valign="bottom" style= "width:48.55pt;padding:0in 2.35pt 0in 2.35pt">   $        — </td> <td width="65" valign="bottom" style= "width:49.0pt;padding:0in 2.35pt 0in 2.35pt">      $  — </td> <td width="65" valign="bottom" style= "width:48.55pt;padding:0in 2.35pt 0in 2.35pt">   $  1,108 </td> <td width="69" valign="bottom" style= "width:51.4pt;padding:0in 2.35pt 0in 2.35pt">      $     — </td> </tr> <tr style="mso-yfti-irow:3"> <td width="463" valign="bottom" style= "width:347.2pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:95%;mso-pagination:none;tab-stops:dotted 337.85pt; mso-layout-grid-align:none;text-autospace:none"> Certificates of deposit </td> <td width="65" valign="bottom" style= "width:48.55pt;padding:0in 2.35pt 0in 2.35pt">              — </td> <td width="65" valign="bottom" style= "width:49.0pt;padding:0in 2.35pt 0in 2.35pt">           — </td> <td width="65" valign="bottom" style= "width:48.55pt;padding:0in 2.35pt 0in 2.35pt">              20 </td> <td width="69" valign="bottom" style= "width:51.4pt;padding:0in 2.35pt 0in 2.35pt">             — </td> </tr> <tr style="mso-yfti-irow:4"> <td width="463" valign="bottom" style= "width:347.2pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:95%;mso-pagination:none;tab-stops:dotted 337.85pt; mso-layout-grid-align:none;text-autospace:none"> Securities: </td> <td width="65" valign="bottom" style= "width:48.55pt;padding:0in 2.35pt 0in 2.35pt">                  </td> <td width="65" valign="bottom" style= "width:49.0pt;padding:0in 2.35pt 0in 2.35pt">               </td> <td width="65" valign="bottom" style= "width:48.55pt;padding:0in 2.35pt 0in 2.35pt">                  </td> <td width="69" valign="bottom" style= "width:51.4pt;padding:0in 2.35pt 0in 2.35pt">                 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="463" valign="bottom" style= "width:347.2pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:95%;mso-pagination:none;tab-stops:dotted 337.85pt; mso-layout-grid-align:none;text-autospace:none"> U.S. government and agency obligations </td> <td width="65" valign="bottom" style= "width:48.55pt;padding:0in 2.35pt 0in 2.35pt">        2,086 </td> <td width="65" valign="bottom" style= "width:49.0pt;padding:0in 2.35pt 0in 2.35pt">           — </td> <td width="65" valign="bottom" style= "width:48.55pt;padding:0in 2.35pt 0in 2.35pt">           752 </td> <td width="69" valign="bottom" style= "width:51.4pt;padding:0in 2.35pt 0in 2.35pt">             — </td> </tr> <tr style="mso-yfti-irow:6"> <td width="463" valign="bottom" style= "width:347.2pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:95%;mso-pagination:none;tab-stops:dotted 337.85pt; mso-layout-grid-align:none;text-autospace:none"> Corporate bonds </td> <td width="65" valign="bottom" style= "width:48.55pt;padding:0in 2.35pt 0in 2.35pt">        1,245 </td> <td width="65" valign="bottom" style= "width:49.0pt;padding:0in 2.35pt 0in 2.35pt">           58 </td> <td width="65" valign="bottom" style= "width:48.55pt;padding:0in 2.35pt 0in 2.35pt">        1,616 </td> <td width="69" valign="bottom" style= "width:51.4pt;padding:0in 2.35pt 0in 2.35pt">          366 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="463" valign="bottom" style= "width:347.2pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:95%;mso-pagination:none;tab-stops:dotted 337.85pt; mso-layout-grid-align:none;text-autospace:none"> Asset-backed securities </td> <td width="65" valign="bottom" style= "width:48.55pt;padding:0in 2.35pt 0in 2.35pt">              93 </td> <td width="65" valign="bottom" style= "width:49.0pt;padding:0in 2.35pt 0in 2.35pt">           — </td> <td width="65" valign="bottom" style= "width:48.55pt;padding:0in 2.35pt 0in 2.35pt">           113 </td> <td width="69" valign="bottom" style= "width:51.4pt;padding:0in 2.35pt 0in 2.35pt">             59 </td> </tr> <tr style="mso-yfti-irow:8"> <td width="463" valign="bottom" style= "width:347.2pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:95%;mso-pagination:none;tab-stops:dotted 337.85pt; mso-layout-grid-align:none;text-autospace:none"> Mortgage-backed securities </td> <td width="65" valign="bottom" style= "width:48.55pt;padding:0in 2.35pt 0in 2.35pt">             65 </td> <td width="65" valign="bottom" style= "width:49.0pt;padding:0in 2.35pt 0in 2.35pt">          14 </td> <td width="65" valign="bottom" style= "width:48.55pt;padding:0in 2.35pt 0in 2.35pt">             81 </td> <td width="69" valign="bottom" style= "width:51.4pt;padding:0in 2.35pt 0in 2.35pt">             41 </td> </tr> <tr style="mso-yfti-irow:9;mso-yfti-lastrow:yes"> <td width="463" valign="top" style= "width:347.2pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="65" valign="top" style= "width:48.55pt;padding:0in 2.35pt 0in 2.35pt">   $  3,489 </td> <td width="65" valign="top" style= "width:49.0pt;padding:0in 2.35pt 0in 2.35pt">      $  72 </td> <td width="65" valign="top" style= "width:48.55pt;padding:0in 2.35pt 0in 2.35pt">   $  3,690 </td> <td width="69" valign="top" style= "width:51.4pt;padding:0in 2.35pt 0in 2.35pt">      $  466 </td> </tr> </table>   The fair market value of investments in the Sigma Fund was $3.6 billion and $4.2 billion at July 4, 2009 and December 31, 2008, respectively.   During the three and six month periods ended July 4, 2009, the Company recorded gains from the change in the fair value of Sigma Fund investments of $68 million and $75 million, respectively, in Other income (expense) in the condensed consolidated statement of operations.   During the fourth quarter of 2008, the Company changed its accounting for changes in the fair value of investments in the Sigma Fund. Prior to the fourth quarter of 2008, the Company distinguished between declines it considered temporary and declines it considered permanent. When it became probable that the Company would not collect all amounts it was owed on a security according to its contractual terms, the Company considered the security to be impaired and recorded the permanent decline in fair value in earnings. During the three and six month periods ended June 28, 2008, the Company recorded $0 and $4 million of permanent impairments of Sigma Fund investments in the condensed consolidated statement of operations, respectively. Declines in fair value of a security that the Company considered temporary were recorded as a component of stockholders’ equity. During the three and six month periods ended June 28, 2008, the Company recorded $5 million and $37 million of temporary declines in the fair value of Sigma Fund investments in its condensed consolidated statements of stockholders’ equity, respectively.   Beginning in the fourth quarter of 2008, the Company began recording all changes in the fair value of investments in the Sigma Fund in the condensed consolidated statements of operations. In its stand-alone financial statements, the Sigma Fund uses “investment company” accounting practices and records all changes in the fair value of the underlying investments in earnings, whether such changes are considered temporary or permanent. The Company determined the underlying accounting practices of the Sigma Fund in its stand-alone financial statements should be retained in the Company’s consolidated financial statements. Accordingly, the Company recorded the cumulative loss of $101 million on investments in the Sigma Fund investments in its consolidated statement of operations during the fourth quarter of 2008. The Company determined amounts that arose in periods prior to the fourth quarter of 2008 were not material to the consolidated results of operations in those periods.   Investments   Investments consist of the following:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="437" valign="top" style= "width:327.7pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="126" colspan="2" valign="top" style= "width:94.8pt;padding:0in 2.35pt 0in 2.35pt">        Recorded Value       </td> <td width="117" colspan="2" valign="top" style= "width:87.8pt;padding:0in 2.35pt 0in 2.35pt">                Less               </td> <td width="46" valign="top" style= "width:34.4pt;padding:0in 2.35pt 0in 2.35pt">   </td> </tr> <tr style="mso-yfti-irow:1"> <td width="437" valign="top" style= "width:327.7pt;padding:0in 2.35pt 0in 2.35pt">   July 4, 2009 </td> <td width="63" valign="top" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt"> Short-term Investments         </td> <td width="63" valign="top" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">   Investments         </td> <td width="59" valign="top" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt"> Unrealized     Gains    </td> <td width="59" valign="top" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt"> Unrealized     Losses   </td> <td width="46" valign="top" style= "width:34.4pt;padding:0in 2.35pt 0in 2.35pt">    Cost    Basis  </td> </tr> <tr style="mso-yfti-irow:2"> <td width="437" valign="bottom" style= "width:327.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:95%;mso-pagination:none;tab-stops:dotted 318.35pt; mso-layout-grid-align:none;text-autospace:none"> Certificates of deposit </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">      $  44 </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">     $     — </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">     $   — </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">     $   — </td> <td width="46" valign="bottom" style= "width:34.4pt;padding:0in 2.35pt 0in 2.35pt"> $     44 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="437" valign="bottom" style= "width:327.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:95%;mso-pagination:none;tab-stops:dotted 318.35pt; mso-layout-grid-align:none;text-autospace:none"> Available-for-sale securities: </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">               </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">                </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="46" valign="bottom" style= "width:34.4pt;padding:0in 2.35pt 0in 2.35pt">             </td> </tr> <tr style="mso-yfti-irow:4"> <td width="437" valign="bottom" style= "width:327.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:95%;mso-pagination:none;tab-stops:dotted 318.35pt; mso-layout-grid-align:none;text-autospace:none"> U.S. government and agency obligations </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">             1 </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">            26 </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">            1 </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="46" valign="bottom" style= "width:34.4pt;padding:0in 2.35pt 0in 2.35pt">         26 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="437" valign="bottom" style= "width:327.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:95%;mso-pagination:none;tab-stops:dotted 318.35pt; mso-layout-grid-align:none;text-autospace:none"> Corporate bonds </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">           — </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">            13 </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="46" valign="bottom" style= "width:34.4pt;padding:0in 2.35pt 0in 2.35pt">         13 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="437" valign="bottom" style= "width:327.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:95%;mso-pagination:none;tab-stops:dotted 318.35pt; mso-layout-grid-align:none;text-autospace:none"> Asset-backed securities </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">           — </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">              1 </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="46" valign="bottom" style= "width:34.4pt;padding:0in 2.35pt 0in 2.35pt">           1 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="437" valign="bottom" style= "width:327.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:95%;mso-pagination:none;tab-stops:dotted 318.35pt; mso-layout-grid-align:none;text-autospace:none"> Mortgage-backed securities </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">           — </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">              3 </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="46" valign="bottom" style= "width:34.4pt;padding:0in 2.35pt 0in 2.35pt">           3 </td> </tr> <tr style="mso-yfti-irow:8"> <td width="437" valign="bottom" style= "width:327.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:95%;mso-pagination:none;tab-stops:dotted 318.35pt; mso-layout-grid-align:none;text-autospace:none"> Common stock and equivalents </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">           — </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">            78 </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">          24 </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="46" valign="bottom" style= "width:34.4pt;padding:0in 2.35pt 0in 2.35pt">        54 </td> </tr> <tr style="mso-yfti-irow:9"> <td width="437" valign="top" style= "width:327.7pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="63" valign="top" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">          45 </td> <td width="63" valign="top" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">         121 </td> <td width="59" valign="top" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">          25 </td> <td width="59" valign="top" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="46" valign="top" style= "width:34.4pt;padding:0in 2.35pt 0in 2.35pt">      141 </td> </tr> <tr style="mso-yfti-irow:10"> <td width="437" valign="bottom" style= "width:327.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:95%;mso-pagination:none;tab-stops:dotted 318.35pt; mso-layout-grid-align:none;text-autospace:none"> Other securities, at cost </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">           — </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">         274 </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="46" valign="bottom" style= "width:34.4pt;padding:0in 2.35pt 0in 2.35pt">      274 </td> </tr> <tr style="mso-yfti-irow:11"> <td width="437" valign="bottom" style= "width:327.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:95%;mso-pagination:none;tab-stops:dotted 318.35pt; mso-layout-grid-align:none;text-autospace:none"> Equity method investments </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">           — </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">            51 </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="46" valign="bottom" style= "width:34.4pt;padding:0in 2.35pt 0in 2.35pt">        51 </td> </tr> <tr style="mso-yfti-irow:12"> <td width="437" valign="top" style= "width:327.7pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="63" valign="top" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">      $  45 </td> <td width="63" valign="top" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">     $  446 </td> <td width="59" valign="top" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">     $  25 </td> <td width="59" valign="top" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">     $   — </td> <td width="46" valign="top" style= "width:34.4pt;padding:0in 2.35pt 0in 2.35pt"> $  466 </td> </tr> <tr style="mso-yfti-irow:13"> <td width="437" valign="top" style= "width:327.7pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="126" colspan="2" valign="top" style= "width:94.8pt;padding:0in 2.35pt 0in 2.35pt">        Recorded Value       </td> <td width="117" colspan="2" valign="top" style= "width:87.8pt;padding:0in 2.35pt 0in 2.35pt">                Less               </td> <td width="46" valign="top" style= "width:34.4pt;padding:0in 2.35pt 0in 2.35pt">   </td> </tr> <tr style="mso-yfti-irow:14"> <td width="437" valign="top" style= "width:327.7pt;padding:0in 2.35pt 0in 2.35pt">   December 31, 2008 </td> <td width="63" valign="top" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt"> Short-term Investments         </td> <td width="63" valign="top" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">   Investments         </td> <td width="59" valign="top" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt"> Unrealized     Gains    </td> <td width="59" valign="top" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt"> Unrealized     Losses   </td> <td width="46" valign="top" style= "width:34.4pt;padding:0in 2.35pt 0in 2.35pt">    Cost    Basis  </td> </tr> <tr style="mso-yfti-irow:15"> <td width="437" valign="bottom" style= "width:327.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 318.35pt; mso-layout-grid-align:none;text-autospace:none"> Certificates of deposit </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">     $  225 </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">     $     — </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">     $   — </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">     $   — </td> <td width="46" valign="bottom" style= "width:34.4pt;padding:0in 2.35pt 0in 2.35pt"> $  225 </td> </tr> <tr style="mso-yfti-irow:16"> <td width="437" valign="bottom" style= "width:327.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 318.35pt; mso-layout-grid-align:none;text-autospace:none"> Available-for-sale securities: </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">                </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">                </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="46" valign="bottom" style= "width:34.4pt;padding:0in 2.35pt 0in 2.35pt">             </td> </tr> <tr style="mso-yfti-irow:17"> <td width="437" valign="bottom" style= "width:327.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 318.35pt; mso-layout-grid-align:none;text-autospace:none"> U.S. government and agency obligations </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">            — </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">            28 </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">            1 </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="46" valign="bottom" style= "width:34.4pt;padding:0in 2.35pt 0in 2.35pt">         27 </td> </tr> <tr style="mso-yfti-irow:18"> <td width="437" valign="bottom" style= "width:327.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 318.35pt; mso-layout-grid-align:none;text-autospace:none"> Corporate bonds </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">            — </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">            11 </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="46" valign="bottom" style= "width:34.4pt;padding:0in 2.35pt 0in 2.35pt">         11 </td> </tr> <tr style="mso-yfti-irow:19"> <td width="437" valign="bottom" style= "width:327.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 318.35pt; mso-layout-grid-align:none;text-autospace:none"> Asset-backed securities </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">            — </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">              1 </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="46" valign="bottom" style= "width:34.4pt;padding:0in 2.35pt 0in 2.35pt">           1 </td> </tr> <tr style="mso-yfti-irow:20"> <td width="437" valign="bottom" style= "width:327.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 318.35pt; mso-layout-grid-align:none;text-autospace:none"> Mortgage-backed securities </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">            — </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">              4 </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="46" valign="bottom" style= "width:34.4pt;padding:0in 2.35pt 0in 2.35pt">           4 </td> </tr> <tr style="mso-yfti-irow:21"> <td width="437" valign="bottom" style= "width:327.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 318.35pt; mso-layout-grid-align:none;text-autospace:none"> Common stock and equivalents </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">            — </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">          117 </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">            5 </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">           (2) </td> <td width="46" valign="bottom" style= "width:34.4pt;padding:0in 2.35pt 0in 2.35pt">      114 </td> </tr> <tr style="mso-yfti-irow:22"> <td width="437" valign="top" style= "width:327.7pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="63" valign="top" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">         225 </td> <td width="63" valign="top" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">         161 </td> <td width="59" valign="top" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">            6 </td> <td width="59" valign="top" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">           (2) </td> <td width="46" valign="top" style= "width:34.4pt;padding:0in 2.35pt 0in 2.35pt">      382 </td> </tr> <tr style="mso-yfti-irow:23"> <td width="437" valign="bottom" style= "width:327.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 318.35pt; mso-layout-grid-align:none;text-autospace:none"> Other securities, at cost </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">            — </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">         296 </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="46" valign="bottom" style= "width:34.4pt;padding:0in 2.35pt 0in 2.35pt">      296 </td> </tr> <tr style="mso-yfti-irow:24"> <td width="437" valign="bottom" style= "width:327.7pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 318.35pt; mso-layout-grid-align:none;text-autospace:none"> Equity method investments </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">            — </td> <td width="63" valign="bottom" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">            60 </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="59" valign="bottom" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="46" valign="bottom" style= "width:34.4pt;padding:0in 2.35pt 0in 2.35pt">        60 </td> </tr> <tr style="mso-yfti-irow:25;mso-yfti-lastrow:yes"> <td width="437" valign="top" style= "width:327.7pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="63" valign="top" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">     $  225 </td> <td width="63" valign="top" style= "width:47.4pt;padding:0in 2.35pt 0in 2.35pt">     $  517 </td> <td width="59" valign="top" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">     $     6 </td> <td width="59" valign="top" style= "width:43.9pt;padding:0in 2.35pt 0in 2.35pt">     $   (2) </td> <td width="46" valign="top" style= "width:34.4pt;padding:0in 2.35pt 0in 2.35pt"> $  738 </td> </tr> </table>   At July 4, 2009 and December 31, 2008, the Company had $45 million and $225 million, respectively, in short-term investments (which are highly-liquid fixed-income investments with an original maturity greater than three months but less than one year).   During the three and six months ended July 4, 2009, the Company recorded investment impairment charges of $26 million and $33 million, respectively, representing other-than-temporary declines in the value of the Company’s investment portfolio, primarily related to other securities recorded at cost. During the three and six months ended June 28, 2008, the Company recorded investment impairment charges of $116 million and $134 million, respectively, of which $83 million of charges were attributed to an equity security held by the Company as a strategic investment. Investment impairment charges are included in Other within Other income (expense) in the Company’s condensed consolidated statements of operations.   Accounts Receivable   Accounts receivable, net, consists of the following:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">    July 4,      2009     </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">    December 31,           2008          </td> </tr> <tr style="mso-yfti-irow:1"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> Accounts receivable </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt"> $  3,835 </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">        $   3,675 </td> </tr> <tr style="mso-yfti-irow:2"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> Less allowance for doubtful accounts </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">        (146) </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">               (182) </td> </tr> <tr style="mso-yfti-irow:3;mso-yfti-lastrow:yes"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt"> $  3,689 </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">        $   3,493 </td> </tr> </table>   Inventories   Inventories, net, consist of the following:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">    July 4,      2009     </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">    December 31,           2008          </td> </tr> <tr style="mso-yfti-irow:1"> <td width="575" valign="bottom" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 421.9pt; mso-layout-grid-align:none;text-autospace:none"> Work-in-process and production materials </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">       1,309 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">             1,709 </td> </tr> <tr style="mso-yfti-irow:2"> <td width="575" valign="bottom" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 421.9pt; mso-layout-grid-align:none;text-autospace:none"> Finished goods </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt"> $  1,172 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">        $   1,710 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">       2,481 </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">             3,419 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="575" valign="bottom" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 421.9pt; mso-layout-grid-align:none;text-autospace:none"> Less inventory reserves </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">        (821) </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">               (760) </td> </tr> <tr style="mso-yfti-irow:5;mso-yfti-lastrow:yes"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt"> $  1,660 </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">        $   2,659 </td> </tr> </table>   Other Current Assets   Other current assets consists of the following:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">    July 4,      2009     </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">    December 31,           2008          </td> </tr> <tr style="mso-yfti-irow:1"> <td width="575" valign="bottom" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 421.9pt; mso-layout-grid-align:none;text-autospace:none"> Contract-related deferred costs </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt"> $      882 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">        $      861 </td> </tr> <tr style="mso-yfti-irow:2"> <td width="575" valign="bottom" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 421.9pt; mso-layout-grid-align:none;text-autospace:none"> Costs and earnings in excess of billings </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">          784 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">             1,094 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="575" valign="bottom" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 421.9pt; mso-layout-grid-align:none;text-autospace:none"> Contractor receivables </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">          388 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                378 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="575" valign="bottom" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 421.9pt; mso-layout-grid-align:none;text-autospace:none"> Value-added tax refunds receivable </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">          125 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                278 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="575" valign="bottom" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 421.9pt; mso-layout-grid-align:none;text-autospace:none"> Other </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">         451 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                529 </td> </tr> <tr style="mso-yfti-irow:6;mso-yfti-lastrow:yes"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt"> $  2,630 </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">        $   3,140 </td> </tr> </table> Property, Plant and Equipment   Property, plant and equipment, net, consists of the following:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="573" valign="top" style= "width:429.8pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="61" valign="top" style= "width:45.65pt;padding:0in 2.35pt 0in 2.35pt">     July 4,      2009     </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">    December 31,           2008          </td> </tr> <tr style="mso-yfti-irow:1"> <td width="573" valign="top" style= "width:429.8pt;padding:0in 2.35pt 0in 2.35pt"> Land </td> <td width="61" valign="top" style= "width:45.65pt;padding:0in 2.35pt 0in 2.35pt"> $       143 </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">       $       148 </td> </tr> <tr style="mso-yfti-irow:2"> <td width="573" valign="top" style= "width:429.8pt;padding:0in 2.35pt 0in 2.35pt"> Building </td> <td width="61" valign="top" style= "width:45.65pt;padding:0in 2.35pt 0in 2.35pt">       1,899 </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">             1,905 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="573" valign="top" style= "width:429.8pt;padding:0in 2.35pt 0in 2.35pt"> Machinery and equipment </td> <td width="61" valign="top" style= "width:45.65pt;padding:0in 2.35pt 0in 2.35pt">       5,397 </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">             5,687 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="573" valign="top" style= "width:429.8pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="61" valign="top" style= "width:45.65pt;padding:0in 2.35pt 0in 2.35pt">       7,439 </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">             7,740 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="573" valign="top" style= "width:429.8pt;padding:0in 2.35pt 0in 2.35pt"> Less accumulated depreciation </td> <td width="61" valign="top" style= "width:45.65pt;padding:0in 2.35pt 0in 2.35pt">      (5,159) </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">            (5,298) </td> </tr> <tr style="mso-yfti-irow:6;mso-yfti-lastrow:yes"> <td width="573" valign="top" style= "width:429.8pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="61" valign="top" style= "width:45.65pt;padding:0in 2.35pt 0in 2.35pt"> $    2,280 </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">       $    2,442 </td> </tr> </table>   Depreciation expense for the three months ended July 4, 2009 and June 28, 2008 was $121 million and $130 million, respectively. Depreciation expense for the six months ended July 4, 2009 and June 28, 2008 was $240 million and $251 million, respectively.   Other Assets   Other assets consists of the following:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">    July 4,      2009     </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">    December 31,           2008          </td> </tr> <tr style="mso-yfti-irow:1"> <td width="575" valign="bottom" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 421.9pt; mso-layout-grid-align:none;text-autospace:none"> Intangible assets, net of accumulated amortization of $1,237 and $1,106 </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt"> $      727 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">        $      869 </td> </tr> <tr style="mso-yfti-irow:2"> <td width="575" valign="bottom" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 421.9pt; mso-layout-grid-align:none;text-autospace:none"> Royalty license arrangements </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">          270 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                289 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="575" valign="bottom" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 421.9pt; mso-layout-grid-align:none;text-autospace:none"> Value-added tax refunds receivable </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">          113 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                117 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="575" valign="bottom" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 421.9pt; mso-layout-grid-align:none;text-autospace:none"> Contract related deferred costs </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">          110 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                136 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="575" valign="bottom" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 421.9pt; mso-layout-grid-align:none;text-autospace:none"> Long-term receivables, net of allowances of $3 and $7 </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">             70 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                  52 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="575" valign="bottom" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 421.9pt; mso-layout-grid-align:none;text-autospace:none"> Other </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">         386 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                353 </td> </tr> <tr style="mso-yfti-irow:7;mso-yfti-lastrow:yes"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt"> $  1,676 </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">        $   1,816 </td> </tr> </table>   Accrued Liabilities   Accrued liabilities consists of the following:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">    July 4,      2009     </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">    December 31,           2008          </td> </tr> <tr style="mso-yfti-irow:1"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> Deferred revenue </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt"> $  1,565 </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">        $   1,533 </td> </tr> <tr style="mso-yfti-irow:2"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> Compensation </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">          535 </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                703 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> Customer reserves </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">          462 </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                599 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> Customer downpayments </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">          451 </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                496 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> Tax liabilities </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">          340 </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                545 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> Contractor payables </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">          302 </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                318 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> Warranty reserves </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">          235 </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                285 </td> </tr> <tr style="mso-yfti-irow:8"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> Other </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">      2,066 </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">             2,861 </td> </tr> <tr style="mso-yfti-irow:9;mso-yfti-lastrow:yes"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt"> $  5,956 </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">        $   7,340 </td> </tr> </table>   Other Liabilities   Other liabilities consists of the following:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">    July 4,      2009     </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">    December 31,           2008          </td> </tr> <tr style="mso-yfti-irow:1"> <td width="575" valign="bottom" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 421.9pt; mso-layout-grid-align:none;text-autospace:none"> Defined benefit plans, including split dollar life insurance policies </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt"> $  2,104 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">        $   2,202 </td> </tr> <tr style="mso-yfti-irow:2"> <td width="575" valign="bottom" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 421.9pt; mso-layout-grid-align:none;text-autospace:none"> Deferred revenue </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">          215 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                316 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="575" valign="bottom" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 421.9pt; mso-layout-grid-align:none;text-autospace:none"> Unrecognized tax benefits </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">          200 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                312 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="575" valign="bottom" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 421.9pt; mso-layout-grid-align:none;text-autospace:none"> Postretirement health care benefit plan </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">          266 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                261 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="575" valign="bottom" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 421.9pt; mso-layout-grid-align:none;text-autospace:none"> Other </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">         613 </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">                471 </td> </tr> <tr style="mso-yfti-irow:6;mso-yfti-lastrow:yes"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt"> $  3,398 </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">        $   3,562 </td> </tr> </table>   Stockholders’ Equity Information   Share Repurchase Program   During the three and six months ended July 4, 2009, the Company did not repurchase any of its common shares. During the six months ended June 28, 2008, the Company repurchased 9 million of its common shares at an aggregate cost of $138 million, all of which were repurchased during the three months ended March 29, 2008.   Since the inception of its share repurchase program in May 2005, the Company has repurchased a total of 394 million common shares for an aggregate cost of $7.9 billion. All repurchased shares have been retired. The authorization by the Board of Directors to repurchase the Company’s common stock expired in June 2009 and was not renewed.   Payment of Dividends   During the six months ended July 4, 2009, the Company paid $114 million in cash dividends to holders of its common stock, all of which was paid during the three months ended April 4, 2009, related to the payment of a dividend declared in November 2008. In February 2009, the Company announced that its Board of Directors suspended the declaration of quarterly dividends on the Company’s common stock. The Company made no such payment of cash dividends during the three months ended July 4, 2009.   Par Value Change   On May 4, 2009, Motorola stockholders approved a change in the par value of Motorola common stock from $3.00 per share to $.01 per share. The change did not have an impact on the amount of the Company’s Total stockholders’ equity, but it did result in a reclassification of $6.9 billion between Common stock and Additional paid-in capital.   <style> /*<![CDATA[*/ st1:*{behavior:url(#ieooui) }  /* 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-priority:99; mso-style-qformat: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","serif";} /*]]>*/ </style> </div> <div> <a name= "_AUCe694f0224e5940058940bbc5bdf7ae59">13. Reorganization of Businesses</a>   The Company maintains a formal Involuntary Severance Plan (the “Severance Plan”), which permits the Company to offer eligible employees severance benefits based on years of service and employment grade level in the event that employment is involuntarily terminated as a result of a reduction-in-force or restructuring. The Company recognizes termination benefits based on formulas per the Severance Plan at the point in time that future settlement is probable and can be reasonably estimated based on estimates prepared at the time a restructuring plan is approved by management. Exit costs consist of future minimum lease payments on vacated facilities and other contractual terminations. At each reporting date, the Company evaluates its accruals for employee separation and exit costs to ensure the accruals are still appropriate. In certain circumstances, accruals are no longer needed because of efficiencies in carrying out the plans or because employees previously identified for separation resigned from the Company and did not receive severance or were redeployed due to circumstances not foreseen when the original plans were initiated. In these cases, the Company reverses accruals through the condensed consolidated statements of operations where the original charges were recorded when it is determined they are no longer needed.   2009 Charges   During the six months ended July 4, 2009, the Company committed to implement various productivity improvement plans aimed at achieving long-term, sustainable profitability by driving efficiencies and reducing operating costs. All three of the Company’s business segments, as well as corporate functions, are impacted by these plans, with the majority of the impact in the Mobile Devices segment. The employees affected are located in all regions.   During the three months ended July 4, 2009, the Company recorded net reorganization of business charges of $58 million, including $9 million of charges in Costs of sales and $49 million of charges under Other charges in the Company’s condensed consolidated statements of operations. Included in the aggregate $58 million are charges of $60 million for employee separation costs, $18 million for exit costs and $1 million for fixed asset impairment charges, partially offset by $21 million of reversals for accruals no longer needed.   During the six months ended July 4, 2009, the Company recorded net reorganization of business charges of $262 million, including $55 million of charges in Costs of sales and $207 million of charges under Other charges in the Company’s condensed consolidated statements of operations. Included in the aggregate $262 million are charges of $264 million for employee separation costs, $22 million for exit costs and $18 million for fixed asset impairment charges, partially offset by $42 million of reversals for accruals no longer needed.   The following table displays the net charges incurred by business segment:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="521" valign="top" style= "width:390.65pt;padding:0in 2.35pt 0in 2.35pt"> July 4, 2009 </td> <td width="109" valign="top" style= "width:82.1pt;padding:0in 2.35pt 0in 2.35pt"> Three Months Ended                 </td> <td width="96" valign="top" style= "width:71.95pt;padding:0in 2.35pt 0in 2.35pt"> Six Months Ended               </td> </tr> <tr style="mso-yfti-irow:1"> <td width="521" valign="top" style= "width:390.65pt;padding:0in 2.35pt 0in 2.35pt"> Mobile Devices </td> <td width="109" valign="top" style= "width:82.1pt;padding:0in 2.35pt 0in 2.35pt">              $  33 </td> <td width="96" valign="top" style= "width:71.95pt;padding:0in 2.35pt 0in 2.35pt">          $  161 </td> </tr> <tr style="mso-yfti-irow:2"> <td width="521" valign="top" style= "width:390.65pt;padding:0in 2.35pt 0in 2.35pt"> Home and Networks Mobility </td> <td width="109" valign="top" style= "width:82.1pt;padding:0in 2.35pt 0in 2.35pt">                  12 </td> <td width="96" valign="top" style= "width:71.95pt;padding:0in 2.35pt 0in 2.35pt">                 33 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="521" valign="top" style= "width:390.65pt;padding:0in 2.35pt 0in 2.35pt"> Enterprise Mobility Solutions </td> <td width="109" valign="top" style= "width:82.1pt;padding:0in 2.35pt 0in 2.35pt">                     7 </td> <td width="96" valign="top" style= "width:71.95pt;padding:0in 2.35pt 0in 2.35pt">                 37 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="521" valign="top" style= "width:390.65pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="109" valign="top" style= "width:82.1pt;padding:0in 2.35pt 0in 2.35pt">                  52 </td> <td width="96" valign="top" style= "width:71.95pt;padding:0in 2.35pt 0in 2.35pt">               231 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="521" valign="top" style= "width:390.65pt;padding:0in 2.35pt 0in 2.35pt"> Corporate </td> <td width="109" valign="top" style= "width:82.1pt;padding:0in 2.35pt 0in 2.35pt">                     6 </td> <td width="96" valign="top" style= "width:71.95pt;padding:0in 2.35pt 0in 2.35pt">                 31 </td> </tr> <tr style="mso-yfti-irow:6;mso-yfti-lastrow:yes"> <td width="521" valign="top" style= "width:390.65pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="109" valign="top" style= "width:82.1pt;padding:0in 2.35pt 0in 2.35pt">              $  58 </td> <td width="96" valign="top" style= "width:71.95pt;padding:0in 2.35pt 0in 2.35pt">          $  262 </td> </tr> </table>   The following table displays a rollforward of the reorganization of businesses accruals established for exit costs and employee separation costs from January 1, 2009 to July 4, 2009:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="734" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="400" valign="top" style= "width:299.75pt;padding:0in 2.35pt 0in 2.35pt">       </td> <td width="78" valign="top" style= "width:58.6pt;padding:0in 2.35pt 0in 2.35pt">    Accruals at    January 1,         2009        </td> <td width="57" valign="top" style= "width:42.85pt;padding:0in 2.35pt 0in 2.35pt">   Additional   Charges  </td> <td width="86" valign="top" style= "width:64.65pt;padding:0in 2.35pt 0in 2.35pt">     Adjustments(1) </td> <td width="51" valign="top" style= "width:37.9pt;padding:0in 2.35pt 0in 2.35pt">   Amount     Used   </td> <td width="62" valign="top" style= "width:46.5pt;padding:0in 2.35pt 0in 2.35pt"> Accruals at     July 4,      2009     </td> </tr> <tr style="mso-yfti-irow:1"> <td width="400" valign="top" style= "width:299.75pt;padding:0in 2.35pt 0in 2.35pt"> Exit costs </td> <td width="78" valign="top" style= "width:58.6pt;padding:0in 2.35pt 0in 2.35pt">       $    80 </td> <td width="57" valign="top" style= "width:42.85pt;padding:0in 2.35pt 0in 2.35pt">    $     22 </td> <td width="86" valign="top" style= "width:64.65pt;padding:0in 2.35pt 0in 2.35pt">        $     (8) </td> <td width="51" valign="top" style= "width:37.9pt;padding:0in 2.35pt 0in 2.35pt"> $     (38) </td> <td width="62" valign="top" style= "width:46.5pt;padding:0in 2.35pt 0in 2.35pt">    $     56 </td> </tr> <tr style="mso-yfti-irow:2"> <td width="400" valign="top" style= "width:299.75pt;padding:0in 2.35pt 0in 2.35pt"> Employee separation costs </td> <td width="78" valign="top" style= "width:58.6pt;padding:0in 2.35pt 0in 2.35pt">           170 </td> <td width="57" valign="top" style= "width:42.85pt;padding:0in 2.35pt 0in 2.35pt">         264 </td> <td width="86" valign="top" style= "width:64.65pt;padding:0in 2.35pt 0in 2.35pt">             (33) </td> <td width="51" valign="top" style= "width:37.9pt;padding:0in 2.35pt 0in 2.35pt">      (276) </td> <td width="62" valign="top" style= "width:46.5pt;padding:0in 2.35pt 0in 2.35pt">         125 </td> </tr> <tr style="mso-yfti-irow:3;mso-yfti-lastrow:yes"> <td width="400" valign="top" style= "width:299.75pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="78" valign="top" style= "width:58.6pt;padding:0in 2.35pt 0in 2.35pt">       $  250 </td> <td width="57" valign="top" style= "width:42.85pt;padding:0in 2.35pt 0in 2.35pt">    $  286 </td> <td width="86" valign="top" style= "width:64.65pt;padding:0in 2.35pt 0in 2.35pt">        $   (41) </td> <td width="51" valign="top" style= "width:37.9pt;padding:0in 2.35pt 0in 2.35pt"> $   (314) </td> <td width="62" valign="top" style= "width:46.5pt;padding:0in 2.35pt 0in 2.35pt">    $  181 </td> </tr> </table>   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-padding-alt:0in 4.5pt 0in 4.5pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> (1) </td> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> Includes translation adjustments. </td> </tr> </table>   Exit Costs   At January 1, 2009, the Company had an accrual of $80 million for exit costs attributable to lease terminations. The additional 2009 charges of $22 million are primarily related to the exit of leased facilities and contractual termination costs, both within the Mobile Devices segment. The adjustments of $8 million reflect: (i) $7 million of reversals of accruals no longer needed, and (ii) $1 million of translation adjustments. The $38 million used in 2009 reflects cash payments. The remaining accrual of $56 million, which is included in Accrued liabilities in the Company’s condensed consolidated balance sheets at July 4, 2009, represents future cash payments primarily for lease termination obligations.   Employee Separation Costs   At January 1, 2009, the Company had an accrual of $170 million for employee separation costs, representing the severance costs for approximately 2,000 employees. The 2009 additional charges of $264 million represent severance costs for approximately an additional 6,800 employees, of which 2,200 are direct employees and 4,600 are indirect employees.   The adjustments of $33 million reflect $35 million of reversals of accruals no longer needed, partially offset by $2 million of translation adjustments.   During the six months ended July 4, 2009, approximately 7,200 employees, of which 2,900 were direct employees and 4,300 were indirect employees, were separated from the Company. The $276 million used in 2009 reflects cash payments to these separated employees. The remaining accrual of $125 million, which is included in Accrued liabilities in the Company’s condensed consolidated balance sheets at July 4, 2009, is expected to be paid to approximately 1,600 separated employees in 2009.   2008 Charges   During the six months ended June 28, 2008, the Company committed to implement various productivity improvement plans aimed at achieving long-term, sustainable profitability by driving efficiencies and reducing operating costs.   During the three months ended June 28, 2008, the Company recorded net reorganization of business charges of $20 million, including $1 million of charges in Costs of sales and $19 million of charges under Other charges in the Company’s condensed consolidated statements of operations. Included in the aggregate $20 million are charges of $41 million for employee separation costs, partially offset by $21 million of reversals for accruals no longer needed.   During the six months ended June 28, 2008, the Company recorded net reorganization of business charges of $129 million, including $36 million of charges in Costs of sales and $93 million of charges under Other charges in the Company’s condensed consolidated statements of operations. Included in the aggregate $129 million are charges of $154 million for employee separation costs and $5 million for exit costs, partially offset by $30 million of reversals for accruals no longer needed.   The following table displays the net charges incurred by business segment:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="521" valign="top" style= "width:390.65pt;padding:0in 2.35pt 0in 2.35pt"> June 28, 2008 </td> <td width="109" valign="top" style= "width:82.1pt;padding:0in 2.35pt 0in 2.35pt"> Three Months Ended                 </td> <td width="96" valign="top" style= "width:71.95pt;padding:0in 2.35pt 0in 2.35pt"> Six Months Ended               </td> </tr> <tr style="mso-yfti-irow:1"> <td width="521" valign="top" style= "width:390.65pt;padding:0in 2.35pt 0in 2.35pt"> Mobile Devices </td> <td width="109" valign="top" style= "width:82.1pt;padding:0in 2.35pt 0in 2.35pt">              $     6 </td> <td width="96" valign="top" style= "width:71.95pt;padding:0in 2.35pt 0in 2.35pt">          $     77 </td> </tr> <tr style="mso-yfti-irow:2"> <td width="521" valign="top" style= "width:390.65pt;padding:0in 2.35pt 0in 2.35pt"> Home and Networks Mobility </td> <td width="109" valign="top" style= "width:82.1pt;padding:0in 2.35pt 0in 2.35pt">                     3 </td> <td width="96" valign="top" style= "width:71.95pt;padding:0in 2.35pt 0in 2.35pt">                 23 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="521" valign="top" style= "width:390.65pt;padding:0in 2.35pt 0in 2.35pt"> Enterprise Mobility Solutions </td> <td width="109" valign="top" style= "width:82.1pt;padding:0in 2.35pt 0in 2.35pt">                     3 </td> <td width="96" valign="top" style= "width:71.95pt;padding:0in 2.35pt 0in 2.35pt">                 12 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="521" valign="top" style= "width:390.65pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="109" valign="top" style= "width:82.1pt;padding:0in 2.35pt 0in 2.35pt">                  12 </td> <td width="96" valign="top" style= "width:71.95pt;padding:0in 2.35pt 0in 2.35pt">               112 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="521" valign="top" style= "width:390.65pt;padding:0in 2.35pt 0in 2.35pt"> Corporate </td> <td width="109" valign="top" style= "width:82.1pt;padding:0in 2.35pt 0in 2.35pt">                     8 </td> <td width="96" valign="top" style= "width:71.95pt;padding:0in 2.35pt 0in 2.35pt">                 17 </td> </tr> <tr style="mso-yfti-irow:6;mso-yfti-lastrow:yes"> <td width="521" valign="top" style= "width:390.65pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="109" valign="top" style= "width:82.1pt;padding:0in 2.35pt 0in 2.35pt">              $  20 </td> <td width="96" valign="top" style= "width:71.95pt;padding:0in 2.35pt 0in 2.35pt">          $  129 </td> </tr> </table>   The following table displays a rollforward of the reorganization of businesses accruals established for exit costs and employee separation costs from January 1, 2008 to June 28, 2008:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="408" valign="top" style= "width:305.8pt;padding:0in 2.35pt 0in 2.35pt">       </td> <td width="78" valign="top" style= "width:58.6pt;padding:0in 2.35pt 0in 2.35pt">    Accruals at    January 1,         2008        </td> <td width="57" valign="top" style= "width:42.85pt;padding:0in 2.35pt 0in 2.35pt">     2008 Additional   Charges  </td> <td width="66" valign="top" style= "width:49.5pt;padding:0in 2.35pt 0in 2.35pt">       2008(1) Adjustments          </td> <td width="51" valign="top" style= "width:37.9pt;padding:0in 2.35pt 0in 2.35pt">    2008 Amount     Used   </td> <td width="67" valign="top" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt"> Accruals at    June 28,       2008      </td> </tr> <tr style="mso-yfti-irow:1"> <td width="408" valign="top" style= "width:305.8pt;padding:0in 2.35pt 0in 2.35pt"> Exit costs </td> <td width="78" valign="top" style= "width:58.6pt;padding:0in 2.35pt 0in 2.35pt">       $    42 </td> <td width="57" valign="top" style= "width:42.85pt;padding:0in 2.35pt 0in 2.35pt">    $       5 </td> <td width="66" valign="top" style= "width:49.5pt;padding:0in 2.35pt 0in 2.35pt">      $     (2) </td> <td width="51" valign="top" style= "width:37.9pt;padding:0in 2.35pt 0in 2.35pt"> $     (11) </td> <td width="67" valign="top" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">     $     34 </td> </tr> <tr style="mso-yfti-irow:2"> <td width="408" valign="top" style= "width:305.8pt;padding:0in 2.35pt 0in 2.35pt"> Employee separation costs </td> <td width="78" valign="top" style= "width:58.6pt;padding:0in 2.35pt 0in 2.35pt">           193 </td> <td width="57" valign="top" style= "width:42.85pt;padding:0in 2.35pt 0in 2.35pt">         154 </td> <td width="66" valign="top" style= "width:49.5pt;padding:0in 2.35pt 0in 2.35pt">           (18) </td> <td width="51" valign="top" style= "width:37.9pt;padding:0in 2.35pt 0in 2.35pt">      (152) </td> <td width="67" valign="top" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">          177 </td> </tr> <tr style="mso-yfti-irow:3;mso-yfti-lastrow:yes"> <td width="408" valign="top" style= "width:305.8pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="78" valign="top" style= "width:58.6pt;padding:0in 2.35pt 0in 2.35pt">       $  235 </td> <td width="57" valign="top" style= "width:42.85pt;padding:0in 2.35pt 0in 2.35pt">    $  159 </td> <td width="66" valign="top" style= "width:49.5pt;padding:0in 2.35pt 0in 2.35pt">      $  (20) </td> <td width="51" valign="top" style= "width:37.9pt;padding:0in 2.35pt 0in 2.35pt"> $   (163) </td> <td width="67" valign="top" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">     $  211 </td> </tr> </table>   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-padding-alt:0in 4.5pt 0in 4.5pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> (1) </td> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> Includes translation adjustments. </td> </tr> </table> Exit Costs   At January 1, 2008, the Company had an accrual of $42 million for exit costs attributable to lease terminations. The additional 2008 charges of $5 million were primarily related to contractual termination costs of a planned exit of outsourced design activities. The adjustments of $2 million reflect $3 million of reversals of accruals no longer needed, partially offset by $1 million of translation adjustments. The $11 million used in 2008 reflects cash payments. The remaining accrual of $34 million, which is included in Accrued liabilities in the Company’s condensed consolidated balance sheets at June 28, 2008, represented future cash payments primarily for lease termination obligations.   Employee Separation Costs   At January 1, 2008, the Company had an accrual of $193 million for employee separation costs, representing the severance costs for approximately 2,800 employees. The 2008 additional charges of $154 million represented severance costs for approximately an additional 3,000 employees, of which 1,300 were direct employees and 1,700 were indirect employees.   The adjustments of $18 million reflect $27 million of reversals of accruals no longer needed, partially offset by $9 million of translation adjustments. The $27 million of reversals represent approximately 200 employees.   During the six months ended June 28, 2008, approximately 3,000 employees, of which 1,500 were direct employees and 1,500 were indirect employees, were separated from the Company. The $152 million used in 2008 reflects cash payments to these separated employees. The remaining accrual of $177 million, which is included in Accrued liabilities in the Company’s condensed consolidated balance sheets at June 28, 2008, was expected to be paid to approximately 2,600 during the second half of 2008. Since that time, $128 million has been paid to approximately 2,300 separated employees and $46 million was reversed.   <style> /*<![CDATA[*/ st1:*{behavior:url(#ieooui) }  /* 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-priority:99; mso-style-qformat: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","serif";} /*]]>*/ </style> </div>

<div> <a name= "_AUC58e30e1e79e54c12a3239c79bc19f20c">11. Commitments and Contingencies</a>   Legal   The Company is a defendant in various suits, claims and investigations that arise in the normal course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position, liquidity or results of operations.   Other   The Company is also a party to a variety of agreements pursuant to which it is obligated to indemnify the other party with respect to certain matters. Some of these obligations arise as a result of divestitures of the Company’s assets or businesses and require the Company to hold the other party harmless against losses arising from the settlement of these pending obligations. The total amount of indemnification under these types of provisions is $151 million, of which the Company accrued $55 million at July 4, 2009 for potential claims under these provisions.   In addition, the Company may provide indemnifications for losses that result from the breach of general warranties contained in certain commercial and intellectual property. Historically, the Company has not made significant payments under these agreements. However, there is an increasing risk in relation to patent indemnities given the current legal climate.   In indemnification cases, payment by the Company is conditioned on the other party making a claim pursuant to the procedures specified in the particular contract, which procedures typically allow the Company to challenge the other party’s claims. Further, the Company’s obligations under these agreements for indemnification based on breach of representations and warranties are generally limited in terms of duration, and for amounts not in excess of the contract value, and, in some instances, the Company may have recourse against third parties for certain payments made by the Company.   <style> /*<![CDATA[*/  /* 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-priority:99; mso-style-qformat: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","serif";} /*]]>*/ </style> </div>

<div> <a name="_AUC08eb59ac821f44c78fdf0af82a4719ec">4. Debt and Credit Facilities</a>   Long-Term Debt   During the six months ended July 4, 2009, the Company completed the open market purchase of $199 million of its outstanding long-term debt for an aggregate purchase price of $133 million, including $4 million of accrued interest, all of which occurred during the three months ended April 4, 2009. Included in the $199 million of long-term debt repurchased were repurchases of a principal amount of: (i) $11 million of the $400 million outstanding of the 7.50% Debentures due 2025, (ii) $20 million of the $309 million outstanding of the 6.50% Debentures due 2025, (iii) $14 million of the $299 million outstanding of the 6.50% Debentures due 2028, and (iv) $154 million of the $600 million outstanding of the 6.625% Senior Notes due 2037. The Company recognized a gain of approximately $67 million related to these open market purchases in Other within Other income (expense) in the condensed consolidated statements of operations.   Credit Facilities   In June 2009, the Company elected to amend its domestic syndicated revolving credit facility (as amended from time to time, the “Credit Facility”) that is scheduled to mature in December 2011. As part of the amendment, the Company reduced the size of the Credit Facility to the lesser of: (1) $1.5 billion, or (2) an amount determined based on eligible domestic accounts receivable and inventory. If the Company elects to borrow under the Credit Facility, it would be required to pledge its domestic accounts receivables and, at its option, domestic inventory. As amended, the Credit Facility does not require the Company to meet any financial covenants unless remaining availability under the Credit Facility is less than $225 million. In addition, until borrowings are made under the Credit Facility, the Company is able to use its working capital assets in any capacity in conjunction with other capital market funding alternatives that may be available to the Company. As of and during the six months ended June 4, 2009, there were no outstanding borrowings under this Credit Facility.   <style> /*<![CDATA[*/  /* 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-priority:99; mso-style-qformat: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","serif";} /*]]>*/ </style> </div>

<div> <a name="_AUC4908b7d8c42742e2940a2cf24cfa6921">5. Risk Management</a>   Derivative Financial Instruments   Foreign Currency Risk   The Company uses financial instruments to reduce its overall exposure to the effects of currency fluctuations on cash flows. The Company’s policy prohibits speculation in financial instruments for profit on the exchange rate price fluctuation, trading in currencies for which there are no underlying exposures, or entering into transactions for any currency to intentionally increase the underlying exposure. Instruments that are designated as part of a hedging relationship must be effective at reducing the risk associated with the exposure being hedged and are designated as part of a hedging relationship at the inception of the contract. Accordingly, changes in market values of hedge instruments must be highly correlated with changes in market values of underlying hedged items both at the inception of the hedge and over the life of the hedge contract.   The Company’s strategy related to foreign exchange exposure management is to offset the gains or losses on the financial instruments against losses or gains on the underlying operational cash flows or investments based on the operating business units’ assessment of risk. The Company enters into derivative contracts for some of the Company’s non-functional currency receivables and payables, which are primarily denominated in major currencies that can be traded on open markets. The Company typically uses forward contracts and options to hedge these currency exposures. In addition, the Company enters into derivative contracts for some firm commitments and some forecasted transactions, which are designated as part of a hedging relationship if it is determined that the transaction qualifies for hedge accounting under the provisions of Statement of Financial Accounting Standards (“SFAS”) No. 133, “Accounting for Derivative Instruments and Hedging Activities.” A portion of the Company’s exposure is from currencies that are not traded in liquid markets and these are addressed, to the extent reasonably possible, by managing net asset positions, product pricing and component sourcing.   At July 4, 2009 and December 31, 2008, the Company had outstanding foreign exchange contracts totaling $1.8 billion and $2.6 billion, respectively. Management believes that these financial instruments should not subject the Company to undue risk due to foreign exchange movements because gains and losses on these contracts should generally offset losses and gains on the underlying assets, liabilities and transactions, except for the ineffective portion of the instruments, which are charged to Other within Other income (expense) in the Company’s condensed consolidated statements of operations.   The following table shows the five largest net notional amounts of the positions to buy or sell foreign currency as of July 4, 2009 and the corresponding positions as of December 31, 2008:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="151" colspan="2" valign="top" style= "width:113.45pt;padding:0in 2.35pt 0in 2.35pt">           Notional Amount          </td> </tr> <tr style="mso-yfti-irow:1"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt">   Net Buy (Sell) by Currency </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">    July 4,      2009     </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">    December 31,           2008          </td> </tr> <tr style="mso-yfti-irow:2"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> Chinese Renminbi </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">   $  (469) </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">         $   (481) </td> </tr> <tr style="mso-yfti-irow:3"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> Brazilian Real </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">        (401) </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">              (356) </td> </tr> <tr style="mso-yfti-irow:4"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> Euro </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">        (297) </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">              (445) </td> </tr> <tr style="mso-yfti-irow:5"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> Japanese Yen </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">        (116) </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">               542 </td> </tr> <tr style="mso-yfti-irow:6;mso-yfti-lastrow:yes"> <td width="575" valign="top" style= "width:431.25pt;padding:0in 2.35pt 0in 2.35pt"> British Pound </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">         152 </td> <td width="92" valign="top" style= "width:69.25pt;padding:0in 2.35pt 0in 2.35pt">               122 </td> </tr> </table>   Interest Rate Risk   At July 4, 2009, the Company’s short-term debt consisted primarily of $36 million of short-term variable rate foreign debt. At July 4, 2009, the Company has $3.9 billion of long-term debt, including the current portion of long-term debt, which is primarily priced at long-term, fixed interest rates.   As part of its domestic liability management program, the Company historically entered into interest rate swaps (“Hedging Agreements”) to synthetically modify the characteristics of interest rate payments for certain of its outstanding long-term debt from fixed-rate payments to short-term variable rate payments. During the fourth quarter of 2008, the Company terminated all of its Hedging Agreements. The termination of the Hedging Agreements resulted in cash proceeds of approximately $158 million and a net gain of approximately $173 million, which was deferred and is being recognized as a reduction of interest expense over the remaining term of the associated debt.   Additionally, one of the Company’s European subsidiaries has outstanding interest rate agreements (“Interest Agreements”) relating to a Euro-denominated loan. The interest on the Euro-denominated loan is variable. The Interest Agreements change the characteristics of interest rate payments from variable to maximum fixed-rate payments. The Interest Agreements are not accounted for as a part of a hedging relationship and, accordingly, the changes in the fair value of the Interest Agreements are included in Other income (expense) in the Company’s condensed consolidated statements of operations. During the second quarter of 2009, the Company’s European subsidiary terminated a portion of the Interest Agreements to ensure that the notional amount of the Interest Agreements matched the amount outstanding under the Euro-denominated loan. The termination of the Interest Agreements resulted in an expense of approximately $2 million. The weighted average fixed rate payments on these Interest Agreements was 5.02%. The fair value of the Interest Agreements at July 4, 2009 and December 31, 2008 were $(3) million and $(2) million, respectively.   Counterparty Risk   The use of derivative financial instruments exposes the Company to counterparty credit risk in the event of nonperformance by counterparties. However, the Company’s risk is limited to the fair value of the instruments when the derivative is in an asset position. The Company actively monitors its exposure to credit risk. At present time, all of the counterparties have investment grade credit ratings. The Company is not exposed to material credit risk with any single counterparty. As of July 4, 2009, the Company was exposed to an aggregate credit risk of $7 million with all counterparties.   The Company adopted Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standard (“SFAS”) No. 161, “Disclosures about Derivative Instruments and Hedging Activities—an amendment of FASB Statement No. 133” on January 1, 2009, which provides for additional disclosure related to derivative instruments and hedging activities.   The following table summarizes the fair values and location in our condensed consolidated balance sheet of all derivatives held by the Company:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="453" valign="top" style= "width:339.65pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="273" colspan="4" valign="top" style= "width:205.05pt;padding:0in 2.35pt 0in 2.35pt">               Fair Values of Derivative Instruments             </td> </tr> <tr style="mso-yfti-irow:1"> <td width="453" valign="top" style= "width:339.65pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="127" colspan="2" valign="top" style= "width:95.1pt;padding:0in 2.35pt 0in 2.35pt">                Assets               </td> <td width="147" colspan="2" valign="top" style= "width:109.95pt;padding:0in 2.35pt 0in 2.35pt">                 Liabilities               </td> </tr> <tr style="mso-yfti-irow:2"> <td width="453" valign="top" style= "width:339.65pt;padding:0in 2.35pt 0in 2.35pt">     July 4, 2009 </td> <td width="53" valign="top" style= "width:.55in;padding:0in 2.35pt 0in 2.35pt">       Fair    Value   </td> <td width="74" valign="top" style= "width:55.5pt;padding:0in 2.35pt 0in 2.35pt">      Balance        Sheet     Location    </td> <td width="53" valign="top" style= "width:.55in;padding:0in 2.35pt 0in 2.35pt">       Fair    Value   </td> <td width="94" valign="top" style= "width:70.35pt;padding:0in 2.35pt 0in 2.35pt">         Balance           Sheet         Location       </td> </tr> <tr style="mso-yfti-irow:3"> <td width="453" valign="bottom" style= "width:339.65pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;mso-pagination:none;tab-stops:dotted 330.3pt; mso-layout-grid-align:none;text-autospace:none"> Derivatives designated as hedging instruments: </td> <td width="53" valign="bottom" style= "width:.55in;padding:0in 2.35pt 0in 2.35pt">             </td> <td width="74" valign="bottom" style= "width:55.5pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="53" valign="bottom" style= "width:.55in;padding:0in 2.35pt 0in 2.35pt">             </td> <td width="94" valign="bottom" style= "width:70.35pt;padding:0in 2.35pt 0in 2.35pt">   </td> </tr> <tr style="mso-yfti-irow:4"> <td width="453" valign="bottom" style= "width:339.65pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;mso-pagination:none;tab-stops:dotted 330.3pt; mso-layout-grid-align:none;text-autospace:none"> Foreign exchange contracts </td> <td width="53" valign="bottom" style= "width:.55in;padding:0in 2.35pt 0in 2.35pt">    $     5 </td> <td width="74" valign="bottom" style= "width:55.5pt;padding:0in 2.35pt 0in 2.35pt"> Other assets </td> <td width="53" valign="bottom" style= "width:.55in;padding:0in 2.35pt 0in 2.35pt">    $     7 </td> <td width="94" valign="bottom" style= "width:70.35pt;padding:0in 2.35pt 0in 2.35pt"> Other liabilities </td> </tr> <tr style="mso-yfti-irow:5"> <td width="453" valign="bottom" style= "width:339.65pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;mso-pagination:none;tab-stops:dotted 330.3pt; mso-layout-grid-align:none;text-autospace:none"> Derivatives not designated as hedging instruments: </td> <td width="53" valign="bottom" style= "width:.55in;padding:0in 2.35pt 0in 2.35pt">             </td> <td width="74" valign="bottom" style= "width:55.5pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="53" valign="bottom" style= "width:.55in;padding:0in 2.35pt 0in 2.35pt">             </td> <td width="94" valign="bottom" style= "width:70.35pt;padding:0in 2.35pt 0in 2.35pt">   </td> </tr> <tr style="mso-yfti-irow:6"> <td width="453" valign="bottom" style= "width:339.65pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;mso-pagination:none;tab-stops:dotted 330.3pt; mso-layout-grid-align:none;text-autospace:none"> Foreign exchange contracts </td> <td width="53" valign="bottom" style= "width:.55in;padding:0in 2.35pt 0in 2.35pt">         16 </td> <td width="74" valign="bottom" style= "width:55.5pt;padding:0in 2.35pt 0in 2.35pt"> Other assets </td> <td width="53" valign="bottom" style= "width:.55in;padding:0in 2.35pt 0in 2.35pt">         65 </td> <td width="94" valign="bottom" style= "width:70.35pt;padding:0in 2.35pt 0in 2.35pt"> Other liabilities </td> </tr> <tr style="mso-yfti-irow:7"> <td width="453" valign="bottom" style= "width:339.65pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;mso-pagination:none;tab-stops:dotted 330.3pt; mso-layout-grid-align:none;text-autospace:none"> Interest agreement contracts </td> <td width="53" valign="bottom" style= "width:.55in;padding:0in 2.35pt 0in 2.35pt">         — </td> <td width="74" valign="bottom" style= "width:55.5pt;padding:0in 2.35pt 0in 2.35pt"> Other assets </td> <td width="53" valign="bottom" style= "width:.55in;padding:0in 2.35pt 0in 2.35pt">           3 </td> <td width="94" valign="bottom" style= "width:70.35pt;padding:0in 2.35pt 0in 2.35pt"> Other liabilities </td> </tr> <tr style="mso-yfti-irow:8"> <td width="453" valign="bottom" style= "width:339.65pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:9.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;mso-pagination:none;tab-stops:dotted 330.3pt; mso-layout-grid-align:none;text-autospace:none"> Total derivatives not designated as hedging instruments </td> <td width="53" valign="bottom" style= "width:.55in;padding:0in 2.35pt 0in 2.35pt">         16 </td> <td width="74" valign="bottom" style= "width:55.5pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="53" valign="bottom" style= "width:.55in;padding:0in 2.35pt 0in 2.35pt">         68 </td> <td width="94" valign="bottom" style= "width:70.35pt;padding:0in 2.35pt 0in 2.35pt">   </td> </tr> <tr style="mso-yfti-irow:9;mso-yfti-lastrow:yes"> <td width="453" valign="bottom" style= "width:339.65pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:11.8pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;mso-pagination:none;tab-stops:dotted 330.3pt; mso-layout-grid-align:none;text-autospace:none"> Total derivatives </td> <td width="53" valign="bottom" style= "width:.55in;padding:0in 2.35pt 0in 2.35pt">    $  21 </td> <td width="74" valign="bottom" style= "width:55.5pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="53" valign="bottom" style= "width:.55in;padding:0in 2.35pt 0in 2.35pt">    $  75 </td> <td width="94" valign="bottom" style= "width:70.35pt;padding:0in 2.35pt 0in 2.35pt">   </td> </tr> </table>   The following table summarizes the effect of derivative instruments in our condensed consolidated statements of operations:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="424" valign="top" style= "width:317.9pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="136" colspan="2" valign="top" style= "width:102.05pt;padding:0in 2.35pt 0in 2.35pt">             July 4, 2009           </td> <td width="166" valign="top" style= "width:124.75pt;padding:0in 2.35pt 0in 2.35pt">   </td> </tr> <tr style="mso-yfti-irow:1"> <td width="424" valign="top" style= "width:317.9pt;padding:0in 2.35pt 0in 2.35pt">   Loss on the Derivative Instrument </td> <td width="75" valign="top" style= "width:56.1pt;padding:0in 2.35pt 0in 2.35pt"> Three Months       Ended      </td> <td width="61" valign="top" style= "width:45.95pt;padding:0in 2.35pt 0in 2.35pt"> Six Months     Ended    </td> <td width="166" valign="top" style= "width:124.75pt;padding:0in 2.35pt 0in 2.35pt">                 Statement of           Operations Location          </td> </tr> <tr style="mso-yfti-irow:2"> <td width="424" valign="bottom" style= "width:317.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;mso-pagination:none;tab-stops:dotted 308.55pt; mso-layout-grid-align:none;text-autospace:none"> Derivatives in fair value hedging relationships: </td> <td width="75" valign="bottom" style= "width:56.1pt;padding:0in 2.35pt 0in 2.35pt">                  </td> <td width="61" valign="bottom" style= "width:45.95pt;padding:0in 2.35pt 0in 2.35pt">                </td> <td width="166" valign="bottom" style= "width:124.75pt;padding:0in 2.35pt 0in 2.35pt">   </td> </tr> <tr style="mso-yfti-irow:3"> <td width="424" valign="bottom" style= "width:317.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;mso-pagination:none;tab-stops:dotted 308.55pt; mso-layout-grid-align:none;text-autospace:none"> Foreign exchange contracts </td> <td width="75" valign="bottom" style= "width:56.1pt;padding:0in 2.35pt 0in 2.35pt">       $    — </td> <td width="61" valign="bottom" style= "width:45.95pt;padding:0in 2.35pt 0in 2.35pt">     $    — </td> <td width="166" valign="bottom" style= "width:124.75pt;padding:0in 2.35pt 0in 2.35pt"> Foreign currency gain (loss) </td> </tr> <tr style="mso-yfti-irow:4"> <td width="424" valign="bottom" style= "width:317.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;mso-pagination:none;tab-stops:dotted 308.55pt; mso-layout-grid-align:none;text-autospace:none"> Derivatives not designated as hedging instruments: </td> <td width="75" valign="bottom" style= "width:56.1pt;padding:0in 2.35pt 0in 2.35pt">                  </td> <td width="61" valign="bottom" style= "width:45.95pt;padding:0in 2.35pt 0in 2.35pt">                </td> <td width="166" valign="bottom" style= "width:124.75pt;padding:0in 2.35pt 0in 2.35pt">   </td> </tr> <tr style="mso-yfti-irow:5"> <td width="424" valign="bottom" style= "width:317.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;mso-pagination:none;tab-stops:dotted 308.55pt; mso-layout-grid-align:none;text-autospace:none"> Interest rate contracts </td> <td width="75" valign="bottom" style= "width:56.1pt;padding:0in 2.35pt 0in 2.35pt">              (3) </td> <td width="61" valign="bottom" style= "width:45.95pt;padding:0in 2.35pt 0in 2.35pt">            (8) </td> <td width="166" valign="bottom" style= "width:124.75pt;padding:0in 2.35pt 0in 2.35pt"> Other income (expense) </td> </tr> <tr style="mso-yfti-irow:6"> <td width="424" valign="bottom" style= "width:317.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;mso-pagination:none;tab-stops:dotted 308.55pt; mso-layout-grid-align:none;text-autospace:none"> Foreign exchange contracts </td> <td width="75" valign="bottom" style= "width:56.1pt;padding:0in 2.35pt 0in 2.35pt">            (54) </td> <td width="61" valign="bottom" style= "width:45.95pt;padding:0in 2.35pt 0in 2.35pt">          (85) </td> <td width="166" valign="bottom" style= "width:124.75pt;padding:0in 2.35pt 0in 2.35pt"> Other income (expense) </td> </tr> <tr style="mso-yfti-irow:7;mso-yfti-lastrow:yes"> <td width="424" valign="bottom" style= "width:317.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:9.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;mso-pagination:none;tab-stops:dotted 308.55pt; mso-layout-grid-align:none;text-autospace:none"> Total derivatives not designated as hedging instruments </td> <td width="75" valign="bottom" style= "width:56.1pt;padding:0in 2.35pt 0in 2.35pt">       $   (57) </td> <td width="61" valign="bottom" style= "width:45.95pt;padding:0in 2.35pt 0in 2.35pt">     $   (93) </td> <td width="166" valign="bottom" style= "width:124.75pt;padding:0in 2.35pt 0in 2.35pt">   </td> </tr> </table>   The following table summarizes the losses recognized in the condensed consolidated financial statements:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="291" valign="top" style= "width:218.6pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="136" colspan="2" valign="top" style= "width:102.05pt;padding:0in 2.35pt 0in 2.35pt">             July 4, 2009           </td> <td width="299" valign="top" style= "width:224.05pt;padding:0in 2.35pt 0in 2.35pt">   </td> </tr> <tr style="mso-yfti-irow:1"> <td width="291" valign="top" style= "width:218.6pt;padding:0in 2.35pt 0in 2.35pt">   Foreign Exchange Contracts </td> <td width="75" valign="top" style= "width:56.1pt;padding:0in 2.35pt 0in 2.35pt"> Three Months       Ended      </td> <td width="61" valign="top" style= "width:45.95pt;padding:0in 2.35pt 0in 2.35pt"> Six Months     Ended    </td> <td width="299" valign="top" style= "width:224.05pt;padding:0in 2.35pt 0in 2.35pt">                                  Financial Statement                                           Location                                         </td> </tr> <tr style="mso-yfti-irow:2"> <td width="291" valign="bottom" style= "width:218.6pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;mso-pagination:none;tab-stops:dotted 209.25pt; mso-layout-grid-align:none;text-autospace:none"> Derivatives in cash flow hedging relationships: </td> <td width="75" valign="bottom" style= "width:56.1pt;padding:0in 2.35pt 0in 2.35pt">                 </td> <td width="61" valign="bottom" style= "width:45.95pt;padding:0in 2.35pt 0in 2.35pt">                </td> <td width="299" valign="bottom" style= "width:224.05pt;padding:0in 2.35pt 0in 2.35pt">   </td> </tr> <tr style="mso-yfti-irow:3"> <td width="291" valign="bottom" style= "width:218.6pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;mso-pagination:none;tab-stops:dotted 209.25pt; mso-layout-grid-align:none;text-autospace:none"> Loss recognized in Accumulated other comprehensive income (loss) (effective portion) </td> <td width="75" valign="bottom" style= "width:56.1pt;padding:0in 2.35pt 0in 2.35pt">        $   (2) </td> <td width="61" valign="bottom" style= "width:45.95pt;padding:0in 2.35pt 0in 2.35pt">     $     (2) </td> <td width="299" valign="bottom" style= "width:224.05pt;padding:0in 2.35pt 0in 2.35pt"> Foreign currency translation adjustments, net of tax </td> </tr> <tr style="mso-yfti-irow:4"> <td width="291" valign="bottom" style= "width:218.6pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;mso-pagination:none;tab-stops:dotted 209.25pt; mso-layout-grid-align:none;text-autospace:none"> Loss reclassified from Accumulated other comprehensive income (loss) into Net loss (effective portion) </td> <td width="75" valign="bottom" style= "width:56.1pt;padding:0in 2.35pt 0in 2.35pt">             (4) </td> <td width="61" valign="bottom" style= "width:45.95pt;padding:0in 2.35pt 0in 2.35pt">          (10) </td> <td width="299" valign="bottom" style= "width:224.05pt;padding:0in 2.35pt 0in 2.35pt"> Cost of sales/Sales </td> </tr> <tr style="mso-yfti-irow:5;mso-yfti-lastrow:yes"> <td width="291" valign="bottom" style= "width:218.6pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:8.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:90%;mso-pagination:none;tab-stops:dotted 209.25pt; mso-layout-grid-align:none;text-autospace:none"> Gain (loss) recognized in Net loss on derivative (ineffective portion and amount excluded from effectiveness testing) </td> <td width="75" valign="bottom" style= "width:56.1pt;padding:0in 2.35pt 0in 2.35pt">             — </td> <td width="61" valign="bottom" style= "width:45.95pt;padding:0in 2.35pt 0in 2.35pt">           — </td> <td width="299" valign="bottom" style= "width:224.05pt;padding:0in 2.35pt 0in 2.35pt"> Other income (expense) </td> </tr> </table> Fair Value of Financial Instruments   The Company’s financial instruments include cash equivalents, Sigma Fund investments, short-term investments, accounts receivable, long-term receivables, accounts payable, accrued liabilities, derivatives and other financing commitments. The Company’s Sigma Fund, available-for-sale investment portfolios and derivatives are recorded in the Company’s consolidated balance sheets at fair value. All other financial instruments, with the exception of long-term debt, are carried at cost, which is not materially different than the instruments’ fair values.   Using quoted market prices and market interest rates, the Company determined that the fair value of long-term debt at July 4, 2009 was $3.2 billion, compared to a face value of $3.8 billion. Since considerable judgment is required in interpreting market information, the fair value of the long-term debt is not necessarily indicative of the amount which could be realized in a current market exchange.   <style> /*<![CDATA[*/  /* 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-priority:99; mso-style-qformat: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","serif";} /*]]>*/ </style> </div>

<div> <a name= "_AUC2e5670c8df1648c89952599e37e60827">8. Share-Based Compensation Plans</a>   Compensation expense for the Company’s employee stock options, stock appreciation rights, employee stock purchase plans, restricted stock and restricted stock units (“RSUs”) was as follows:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="426" valign="top" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="150" colspan="2" valign="top" style= "width:112.7pt;padding:0in 2.35pt 0in 2.35pt">        Three Months Ended       </td> <td width="150" colspan="2" valign="top" style= "width:112.7pt;padding:0in 2.35pt 0in 2.35pt">           Six Months Ended         </td> </tr> <tr style="mso-yfti-irow:1"> <td width="426" valign="top" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       July 4,        2009       </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">      June 28,        2008       </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       July 4,        2009       </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">      June 28,        2008       </td> </tr> <tr style="mso-yfti-irow:2"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Share-based compensation expense included in: </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">                 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">                 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">                  </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">                  </td> </tr> <tr style="mso-yfti-irow:3"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Costs of sales </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">        $     8 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">        $  10 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $     17 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $     18 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Selling, general and administrative expenses </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">            43 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">            48 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              84 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              95 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Research and development expenditures </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">             23 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">             30 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              49 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              53 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Share-based compensation expense included in Operating earnings (loss) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">            74 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">            88 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">           150 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">           166 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Tax benefit </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">             23 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">             28 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              47 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              52 </td> </tr> <tr style="mso-yfti-irow:8;mso-yfti-lastrow:yes"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Share-based compensation expense, net of tax </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">        $  51 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">        $  60 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $  103 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $  114 </td> </tr> </table>   In the second quarter of 2009, the Company’s broad-based equity grant consisted of 34.8 million RSUs and 9.7 million stock options. The total compensation expense related to RSUs is $162 million, net of estimated forfeitures, with a fair market value of $6.22 per RSU. The total compensation expense related to stock options is $26 million, net of estimated forfeitures, at a Black-Scholes value of $3.52 per stock option. The expense for substantially all RSUs and stock options will be recognized over a period of 4 years.   Stock Option Exchange   On May 14, 2009, the Company initiated a tender offer for certain eligible employees (excluding executive officers and directors) to exchange certain out-of-the-money options for new options with an exercise price equal to the fair market value of the Company’s stock as of the grant date. In order to be eligible for the exchange, the options had to have been granted prior to June 1, 2007, expire after December 31, 2009 and have an exercise price equal to or greater than $12.00. The offering period closed on June 12, 2009. On that date, 97 million options were tendered and exchanged for 43 million new options with an exercise price of $6.73 and a ratable annual vesting period over two years. The exchange program was designed so that the fair market value of the new options would not be greater than the fair market value of the options exchanged. The resulting incremental compensation expense was not material to the Company’s consolidated financial statements.   <style> /*<![CDATA[*/  /* 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-priority:99; mso-style-qformat: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","serif";} /*]]>*/ </style> </div>

<div> <a name= "_AUCbfd6d96e457643dcb8a3e6c53b1bacd4">2. Discontinued Operations</a>   During the six months ended July 4, 2009, the Company completed the sale of: (i) Good Technology, and (ii) the biometrics business, which includes its Printrak trademark. Collectively, the Company received $163 million in net cash and recorded a net gain on sale of the businesses of $175 million before income taxes, which is included in Earnings from discontinued operations, net of tax, in the Company’s condensed consolidated statements of operations. The operating results of these businesses (each of which was formerly included as part of the Enterprise Mobility Solutions segment), through the date of their respective dispositions are reported as discontinued operations in the condensed consolidated financial statements for the period ending July 4, 2009. For all other applicable prior periods, the operating results of these businesses have not been reclassified as discontinued operations, since the results are not material to the Company’s condensed consolidated financial statements.   The following table displays summarized activity in the Company’s condensed consolidated statements of operations for discontinued operations during the six months ended July 4, 2009, all of which occurred during the three months ended April 4, 2009. The Company had no such activity during the three months ended July 4, 2009.   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="667" valign="top" style= "width:500.5pt;padding:0in 2.35pt 0in 2.35pt">   Six Months Ended </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">    July 4,    2009    </td> </tr> <tr style="mso-yfti-irow:1"> <td width="667" valign="bottom" style= "width:500.5pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 491.15pt; mso-layout-grid-align:none;text-autospace:none"> Net sales </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">    $     19 </td> </tr> <tr style="mso-yfti-irow:2"> <td width="667" valign="bottom" style= "width:500.5pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 491.15pt; mso-layout-grid-align:none;text-autospace:none"> Operating loss </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">          (11) </td> </tr> <tr style="mso-yfti-irow:3"> <td width="667" valign="bottom" style= "width:500.5pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 491.15pt; mso-layout-grid-align:none;text-autospace:none"> Gains on sales of investments and businesses, net </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">         175 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="667" valign="bottom" style= "width:500.5pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 491.15pt; mso-layout-grid-align:none;text-autospace:none"> Earnings before income taxes </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">         162 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="667" valign="bottom" style= "width:500.5pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 491.15pt; mso-layout-grid-align:none;text-autospace:none"> Income tax expense </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">         102 </td> </tr> <tr style="mso-yfti-irow:6;mso-yfti-lastrow:yes"> <td width="667" valign="bottom" style= "width:500.5pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 491.15pt; mso-layout-grid-align:none;text-autospace:none"> Earnings from discontinued operations, net of tax </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">           60 </td> </tr> </table>   <style> /*<![CDATA[*/  /* 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-priority:99; mso-style-qformat: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","serif";} /*]]>*/ </style> </div>

<div> <a name="_AUC18310b4e49604f3cb92e2879bb724419">9. Fair Value Measurements</a>   The Company adopted Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards (“SFAS”) No. 157, “Fair Value Measurements” (“SFAS 157”) on January 1, 2008 for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. SFAS 157 defines fair value, establishes a consistent framework for measuring fair value and expands disclosure requirements about fair value measurements. SFAS 157 does not change the accounting for those instruments that were, under previous GAAP, accounted for at cost or contract value. In February 2008, the FASB issued Staff Position No. 157-2 (“FSP 157-2”), which delays the effective date of SFAS 157 one year for all non-financial assets and non-financial liabilities, except those recognized or disclosed at fair value in the financial statements on a recurring basis. Under FSP 157-2, the Company has applied the measurement criteria of SFAS 157 to the remaining assets and liabilities as of the second quarter of 2009. The Company has no non-financial assets and liabilities that are required to be measured at fair value on a recurring basis as of July 4, 2009.   The Company holds certain fixed income securities, equity securities and derivatives, which must be measured using the SFAS 157 prescribed fair value hierarchy and related valuation methodologies. SFAS 157 specifies a hierarchy of valuation techniques based on whether the inputs to each measurement are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions about current market conditions. The prescribed fair value hierarchy and related valuation methodologies are as follows:   Level 1—Quoted prices for identical instruments in active markets.   Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations, in which all significant inputs are observable in active markets.   Level 3—Valuations derived from valuation techniques, in which one or more significant inputs are unobservable.   The levels of the Company’s financial assets and liabilities that are carried at fair value were as follows:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="539" valign="top" style= "width:403.9pt;padding:0in 2.35pt 0in 2.35pt"> July 4, 2009 </td> <td width="42" valign="top" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt"> Level 1 </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">   Level 2 </td> <td width="42" valign="top" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt"> Level 3 </td> <td width="51" valign="top" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">    Total   </td> </tr> <tr style="mso-yfti-irow:1"> <td width="539" valign="bottom" style= "width:403.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 394.55pt; mso-layout-grid-align:none;text-autospace:none"> Assets: </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">            </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">                </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">            </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">                </td> </tr> <tr style="mso-yfti-irow:2"> <td width="539" valign="bottom" style= "width:403.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 394.55pt; mso-layout-grid-align:none;text-autospace:none"> Sigma Fund securities: </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">            </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">                </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">            </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">                </td> </tr> <tr style="mso-yfti-irow:3"> <td width="539" valign="bottom" style= "width:403.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:9.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 394.55pt; mso-layout-grid-align:none;text-autospace:none"> U.S. government and agency obligations </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt"> $   — </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt"> $  2,086 </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt"> $   — </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt"> $  2,086 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="539" valign="bottom" style= "width:403.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:10.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 394.55pt; mso-layout-grid-align:none;text-autospace:none"> Corporate bonds </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">       — </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">     1,241 </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">       62 </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">     1,303 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="539" valign="bottom" style= "width:403.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:9.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 394.55pt; mso-layout-grid-align:none;text-autospace:none"> Asset-backed securities </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">       — </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           83 </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">       10 </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           93 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="539" valign="bottom" style= "width:403.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:9.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 394.55pt; mso-layout-grid-align:none;text-autospace:none"> Mortgage-backed securities </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">       — </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           71 </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">         8 </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           79 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="539" valign="bottom" style= "width:403.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 394.55pt; mso-layout-grid-align:none;text-autospace:none"> Available-for-sale securities: </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">            </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">                </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">            </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">                </td> </tr> <tr style="mso-yfti-irow:8"> <td width="539" valign="bottom" style= "width:403.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:9.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 394.55pt; mso-layout-grid-align:none;text-autospace:none"> U.S. government and agency obligations </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">       — </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           26 </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">       — </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           26 </td> </tr> <tr style="mso-yfti-irow:9"> <td width="539" valign="bottom" style= "width:403.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:10.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 394.55pt; mso-layout-grid-align:none;text-autospace:none"> Corporate bonds </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">       — </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           13 </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">       — </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           13 </td> </tr> <tr style="mso-yfti-irow:10"> <td width="539" valign="bottom" style= "width:403.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:9.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 394.55pt; mso-layout-grid-align:none;text-autospace:none"> Asset-backed securities </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">       — </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">             1 </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">       — </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">             1 </td> </tr> <tr style="mso-yfti-irow:11"> <td width="539" valign="bottom" style= "width:403.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:9.55pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 394.55pt; mso-layout-grid-align:none;text-autospace:none"> Mortgage-backed securities </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">       — </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">             3 </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">       — </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">             3 </td> </tr> <tr style="mso-yfti-irow:12"> <td width="539" valign="bottom" style= "width:403.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:10.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 394.55pt; mso-layout-grid-align:none;text-autospace:none"> Common stock and equivalents </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">       78 </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           — </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">       — </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           78 </td> </tr> <tr style="mso-yfti-irow:13"> <td width="539" valign="bottom" style= "width:403.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 394.55pt; mso-layout-grid-align:none;text-autospace:none"> Derivative assets </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">       — </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           21 </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">       — </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           21 </td> </tr> <tr style="mso-yfti-irow:14"> <td width="539" valign="bottom" style= "width:403.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 394.55pt; mso-layout-grid-align:none;text-autospace:none"> Liabilities: </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">            </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">                </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">            </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">                </td> </tr> <tr style="mso-yfti-irow:15;mso-yfti-lastrow:yes"> <td width="539" valign="bottom" style= "width:403.9pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 394.55pt; mso-layout-grid-align:none;text-autospace:none"> Derivative liabilities </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">       — </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           75 </td> <td width="42" valign="bottom" style= "width:31.85pt;padding:0in 2.35pt 0in 2.35pt">       — </td> <td width="51" valign="bottom" style= "width:38.55pt;padding:0in 2.35pt 0in 2.35pt">           75 </td> </tr> </table>   The following table summarizes the changes in fair value of our Level 3 assets:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="426" valign="top" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="150" colspan="2" valign="top" style= "width:112.7pt;padding:0in 2.35pt 0in 2.35pt">        Three Months Ended       </td> <td width="150" colspan="2" valign="top" style= "width:112.7pt;padding:0in 2.35pt 0in 2.35pt">           Six Months Ended         </td> </tr> <tr style="mso-yfti-irow:1"> <td width="426" valign="top" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       July 4,        2009       </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">      June 28,        2008       </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       July 4,        2009       </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">      June 28,        2008       </td> </tr> <tr style="mso-yfti-irow:2"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Beginning balance </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $  109 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">        $  39 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $  134 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">        $  35 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Transfers to Level 3 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              10 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">             — </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              11 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">            10 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Purchases, issuances, settlements and payments received </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">            (29) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">             — </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">            (53) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">             — </td> </tr> <tr style="mso-yfti-irow:5"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Impairment losses recognized on Sigma Fund investments included Other income (expense) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              — </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">             — </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">               (1) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">             (4) </td> </tr> <tr style="mso-yfti-irow:6"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Mark-to-market on Sigma Fund investments included in Other income (expense) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">            (10) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">             — </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">            (11) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">             — </td> </tr> <tr style="mso-yfti-irow:7"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Unrealized losses in Sigma Fund investments included in Accumulated other comprehensive income (loss) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              — </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">               4 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              — </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">               2 </td> </tr> <tr style="mso-yfti-irow:8;mso-yfti-lastrow:yes"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Ending balance </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $     80 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">        $  43 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $     80 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">        $  43 </td> </tr> </table>   Valuation Methodologies   Quoted market prices in active markets are available for investments in common stock and equivalents and, as such, these investments are classified within Level 1.   The securities classified above as Level 2 are primarily those that are professionally managed within the Sigma Fund. The Company primarily relies on valuation pricing models and broker quotes to determine the fair value of investments in the Sigma Fund. The valuation models are developed and maintained by third party pricing services and use a number of standard inputs to the valuation model including benchmark yields, reported trades, broker/dealer quotes where the party is standing ready and able to transact, issuer spreads, benchmark securities, bids, offers and other reference data. The valuation model may prioritize these inputs differently at each balance sheet date for any given security, based on market conditions. Not all of the standard inputs listed will be used each time in the valuation models. For each asset class, quantifiable inputs related to perceived market movements and sector news may be considered in addition to the standard inputs.   In determining the fair value of the Company’s interest rate swap derivatives, the Company uses the present value of expected cash flows based on market observable interest rate yield curves commensurate with the term of each instrument and the credit default swap market to reflect the credit risk of either the Company or the counterparty. For foreign currency derivatives, the Company’s approach is to use forward contract and option valuation models employing market observable inputs, such as spot currency rates, time value and option volatilities. Since the Company primarily uses observable inputs in its valuation of its derivative assets and liabilities, they are considered Level 2.   Level 3 fixed income securities are debt securities that do not have actively traded quotes on the date the Company presents its condensed consolidated balance sheets and require the use of unobservable inputs, such as indicative quotes from dealers and qualitative input from investment advisors, to value these securities.   At July 4, 2009, the Company has $373 million of investments in money market mutual funds classified as Cash and cash equivalents in its condensed consolidated balance sheets. The money market funds have quoted market prices that are generally equivalent to par.   <style> /*<![CDATA[*/ st1:*{behavior:url(#ieooui) }  /* 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-priority:99; mso-style-qformat: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","serif";} /*]]>*/ </style> </div>

<div> <a name= "_AUCbe9bb4b26da24cb582bb8961f55f1991">14. Acquisitions related Intangibles</a>   Intangible Assets   Amortized intangible assets were comprised of the following:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="446" valign="top" style= "width:334.5pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="140" colspan="2" valign="top" style= "width:105.1pt;padding:0in 2.35pt 0in 2.35pt">             July 4, 2009            </td> <td width="140" colspan="2" valign="top" style= "width:105.1pt;padding:0in 2.35pt 0in 2.35pt">        December 31, 2008       </td> </tr> <tr style="mso-yfti-irow:1"> <td width="446" valign="top" style= "width:334.5pt;padding:0in 2.35pt 0in 2.35pt">       </td> <td width="70" valign="top" style= "width:52.4pt;padding:0in 2.35pt 0in 2.35pt">       Gross    Carrying     Amount    </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">   Accumulated Amortization           </td> <td width="70" valign="top" style= "width:52.4pt;padding:0in 2.35pt 0in 2.35pt">       Gross    Carrying     Amount    </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">   Accumulated Amortization           </td> </tr> <tr style="mso-yfti-irow:2"> <td width="446" valign="top" style= "width:334.5pt;padding:0in 2.35pt 0in 2.35pt"> Completed technology </td> <td width="70" valign="top" style= "width:52.4pt;padding:0in 2.35pt 0in 2.35pt">    $  1,121 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">    $      710 </td> <td width="70" valign="top" style= "width:52.4pt;padding:0in 2.35pt 0in 2.35pt">    $  1,127 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">    $      633 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="446" valign="top" style= "width:334.5pt;padding:0in 2.35pt 0in 2.35pt"> Patents </td> <td width="70" valign="top" style= "width:52.4pt;padding:0in 2.35pt 0in 2.35pt">            288 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">            151 </td> <td width="70" valign="top" style= "width:52.4pt;padding:0in 2.35pt 0in 2.35pt">            292 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">            125 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="446" valign="top" style= "width:334.5pt;padding:0in 2.35pt 0in 2.35pt"> Customer-related </td> <td width="70" valign="top" style= "width:52.4pt;padding:0in 2.35pt 0in 2.35pt">            276 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">            125 </td> <td width="70" valign="top" style= "width:52.4pt;padding:0in 2.35pt 0in 2.35pt">            277 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">            104 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="446" valign="top" style= "width:334.5pt;padding:0in 2.35pt 0in 2.35pt"> Licensed technology </td> <td width="70" valign="top" style= "width:52.4pt;padding:0in 2.35pt 0in 2.35pt">            130 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">            120 </td> <td width="70" valign="top" style= "width:52.4pt;padding:0in 2.35pt 0in 2.35pt">            129 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">            118 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="446" valign="top" style= "width:334.5pt;padding:0in 2.35pt 0in 2.35pt"> Other intangibles </td> <td width="70" valign="top" style= "width:52.4pt;padding:0in 2.35pt 0in 2.35pt">            149 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">            131 </td> <td width="70" valign="top" style= "width:52.4pt;padding:0in 2.35pt 0in 2.35pt">            150 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">            126 </td> </tr> <tr style="mso-yfti-irow:7;mso-yfti-lastrow:yes"> <td width="446" valign="top" style= "width:334.5pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="70" valign="top" style= "width:52.4pt;padding:0in 2.35pt 0in 2.35pt">    $  1,964 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">    $   1,237 </td> <td width="70" valign="top" style= "width:52.4pt;padding:0in 2.35pt 0in 2.35pt">    $  1,975 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">    $   1,106 </td> </tr> </table>   Amortization expense on intangible assets, which is included within Other and Eliminations, was $70 million and $81 million for the three months ended July 4, 2009 and June 28, 2008, respectively, and $141 million and $164 million for the six months ended July 4, 2009 and June 28, 2008, respectively. As of July 4, 2009, annual amortization expense is estimated to be $278 million for 2009, $256 million in 2010, $242 million in 2011, $49 million in 2012 and $29 million in 2013.   Amortized intangible assets, excluding goodwill, by business segment:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="446" valign="top" style= "width:334.5pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="140" colspan="2" valign="top" style= "width:105.1pt;padding:0in 2.35pt 0in 2.35pt">             July 4, 2009            </td> <td width="140" colspan="2" valign="top" style= "width:105.1pt;padding:0in 2.35pt 0in 2.35pt">        December 31, 2008       </td> </tr> <tr style="mso-yfti-irow:1"> <td width="446" valign="top" style= "width:334.5pt;padding:0in 2.35pt 0in 2.35pt">       </td> <td width="70" valign="top" style= "width:52.4pt;padding:0in 2.35pt 0in 2.35pt">       Gross    Carrying     Amount    </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">   Accumulated Amortization           </td> <td width="70" valign="top" style= "width:52.4pt;padding:0in 2.35pt 0in 2.35pt">       Gross    Carrying     Amount    </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">   Accumulated Amortization           </td> </tr> <tr style="mso-yfti-irow:2"> <td width="446" valign="top" style= "width:334.5pt;padding:0in 2.35pt 0in 2.35pt"> Mobile Devices </td> <td width="70" valign="top" style= "width:52.4pt;padding:0in 2.35pt 0in 2.35pt">    $        45 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">    $        45 </td> <td width="70" valign="top" style= "width:52.4pt;padding:0in 2.35pt 0in 2.35pt">    $        45 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">    $        45 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="446" valign="top" style= "width:334.5pt;padding:0in 2.35pt 0in 2.35pt"> Home and Networks Mobility </td> <td width="70" valign="top" style= "width:52.4pt;padding:0in 2.35pt 0in 2.35pt">            712 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">            544 </td> <td width="70" valign="top" style= "width:52.4pt;padding:0in 2.35pt 0in 2.35pt">            722 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">            522 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="446" valign="top" style= "width:334.5pt;padding:0in 2.35pt 0in 2.35pt"> Enterprise Mobility Solutions </td> <td width="70" valign="top" style= "width:52.4pt;padding:0in 2.35pt 0in 2.35pt">         1,207 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">            648 </td> <td width="70" valign="top" style= "width:52.4pt;padding:0in 2.35pt 0in 2.35pt">         1,208 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">            539 </td> </tr> <tr style="mso-yfti-irow:5;mso-yfti-lastrow:yes"> <td width="446" valign="top" style= "width:334.5pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="70" valign="top" style= "width:52.4pt;padding:0in 2.35pt 0in 2.35pt">    $  1,964 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">    $   1,237 </td> <td width="70" valign="top" style= "width:52.4pt;padding:0in 2.35pt 0in 2.35pt">    $  1,975 </td> <td width="70" valign="top" style= "width:52.7pt;padding:0in 2.35pt 0in 2.35pt">    $   1,106 </td> </tr> </table>   Goodwill   The following tables display a rollforward of the carrying amount of goodwill from January 1, 2009 to July 4, 2009, by business segment:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="732" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="447" valign="top" style= "width:334.9pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="78" valign="top" style= "width:58.6pt;padding:0in 2.35pt 0in 2.35pt">    January 1,         2009        </td> <td width="84" valign="top" style= "width:63.35pt;padding:0in 2.35pt 0in 2.35pt">   Adjustments(1) </td> <td width="64" valign="top" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt">   Dispositions          </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">    July 4,      2009     </td> </tr> <tr style="mso-yfti-irow:1"> <td width="447" valign="top" style= "width:334.9pt;padding:0in 2.35pt 0in 2.35pt"> Home and Networks Mobility </td> <td width="78" valign="top" style= "width:58.6pt;padding:0in 2.35pt 0in 2.35pt">     $  1,409 </td> <td width="84" valign="top" style= "width:63.35pt;padding:0in 2.35pt 0in 2.35pt">         $   (3) </td> <td width="64" valign="top" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt">     $    — </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt"> $  1,406 </td> </tr> <tr style="mso-yfti-irow:2"> <td width="447" valign="top" style= "width:334.9pt;padding:0in 2.35pt 0in 2.35pt"> Enterprise Mobility Solutions </td> <td width="78" valign="top" style= "width:58.6pt;padding:0in 2.35pt 0in 2.35pt">          1,428 </td> <td width="84" valign="top" style= "width:63.35pt;padding:0in 2.35pt 0in 2.35pt">              (1) </td> <td width="64" valign="top" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt">          (11) </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">      1,416 </td> </tr> <tr style="mso-yfti-irow:3;mso-yfti-lastrow:yes"> <td width="447" valign="top" style= "width:334.9pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="78" valign="top" style= "width:58.6pt;padding:0in 2.35pt 0in 2.35pt">     $  2,837 </td> <td width="84" valign="top" style= "width:63.35pt;padding:0in 2.35pt 0in 2.35pt">         $   (4) </td> <td width="64" valign="top" style= "width:47.9pt;padding:0in 2.35pt 0in 2.35pt">     $   (11) </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt"> $  2,822 </td> </tr> </table>   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-padding-alt:0in 4.5pt 0in 4.5pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> (1) </td> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> Includes translation adjustments. </td> </tr> </table> <style> /*<![CDATA[*/ st1:*{behavior:url(#ieooui) }  /* 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-priority:99; 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<div> <a name="_AUC622550631db9438f83f1060e06fd1976">6. Income Taxes</a>   The Company evaluates its deferred income taxes on a quarterly basis to determine if valuation allowances are required by considering available evidence, including historical and projected taxable income and tax planning strategies that are both prudent and feasible. As of December 31, 2008, the Company’s U.S. operations had generated two consecutive years of pre-tax losses, which are attributable to the Mobile Devices segment. During 2007 and 2008, the Home and Networks Mobility and Enterprise Mobility Solution businesses (collectively referred to as the “Broadband Mobility Solutions businesses”) were profitable in the U.S. and worldwide. Because of the 2007 and 2008 losses at Mobile Devices and the near-term forecasts for the Mobile Devices business, the Company believes that the weight of negative historic evidence precludes it from considering any forecasted income from the Mobile Devices business in its analysis of the recoverability of deferred tax assets. However, based on the sustained profits of the Broadband Mobility Solutions businesses, the Company believes that the weight of positive historic evidence allows it to include forecasted income from the Broadband Mobility Solutions businesses in its analysis of the recoverability of its deferred tax assets. The Company also considered in its analysis tax planning strategies that are prudent and can be reasonably implemented. Based on all available positive and negative evidence, we concluded that a partial valuation allowance should be recorded against the net deferred tax assets of our U.S. operations. During the year ended December 31, 2008, the Company recorded a valuation allowance of $2.1 billion for foreign tax credits, general business credits, capital losses and state tax carry forwards that are more likely than not to expire. The Company also recorded valuation allowances of $126 million in 2008 relating to tax carryforwards and deferred tax assets of non-U.S. subsidiaries, including Brazil, China and Spain, that the Company believes are more likely than not to expire or go unused.   During the six months ended July 4, 2009, the Company recorded additional U.S. valuation allowances of approximately $110 million, consisting of a $150 million increase during the three months ended April 4, 2009, primarily relating to deferred tax assets generated on the disposition of a subsidiary, offset by a reduction of approximately $40 million during the three months ended July 4, 2009, to reflect an expected cash refund of certain general business credits that the Company plans to claim on its 2008 and 2009 tax returns. Additionally, the Company increased the valuation allowance on non-U.S. subsidiaries by $53 million during the six months ended July 4, 2009, all of which was recorded during the three months ended July 4, 2009.   The Company had unrecognized tax benefits of $495 million and $914 million, at July 4, 2009 and December 31, 2008, respectively, of which approximately $160 million and $580 million, respectively, if recognized, would affect the effective tax rate, net of resulting changes to valuation allowances. During the six months ended July 4, 2009, the Company concluded its Internal Revenue Service (IRS) audits for tax years 1996-2003. As a result of the foregoing and resolution of Non-U.S. audits, the Company reduced its unrecognized tax benefits by $454 million, of which $31 million was recognized as a tax benefit and the remainder primarily reduced tax carry forwards and other deferred tax assets.   The Company has audits pending in several tax jurisdictions. Although the final resolution of the Company’s global tax disputes is uncertain, based on current information, in the opinion of the Company’s management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position, liquidity or results of operations. However, an unfavorable resolution of the Company’s global tax disputes could have a material adverse effect on the Company’s consolidated financial position, liquidity or results of operations in the periods in which the matters are ultimately resolved.   Based on the potential outcome of the Company’s global tax examinations, the expiration of the statute of limitations for specific jurisdictions, or the continued ability to satisfy tax incentive obligations, it is reasonably possible that the unrecognized tax benefits will decrease within the next 12 months. The associated net tax benefits, which would favorably impact the effective tax rate, exclusive of valuation allowance changes, are estimated to be in the range of $0 to $250 million, with cash payments not expected to exceed $100 million. <style> /*<![CDATA[*/ st1:*{behavior:url(#ieooui) }  /* 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-priority:99; mso-style-qformat: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","serif";} /*]]>*/ </style> </div>

<div> <a name="_AUC0dfe96bdafa74b85b135ec7fd7c3a273">1. Basis of Presentation</a>   The condensed consolidated financial statements as of July 4, 2009 and for the three and six months ended July 4, 2009 and June 28, 2008, include, in the opinion of management, all adjustments (consisting of normal recurring adjustments and reclassifications) necessary to present fairly the Company’s consolidated financial position, results of operations and cash flows for all periods presented.   Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2008. The results of operations for the three and six months ended July 4, 2009 are not necessarily indicative of the operating results to be expected for the full year. Certain amounts in prior period financial statements and related notes have been reclassified to conform to the 2009 presentation.   The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Furthermore, in connection with preparation of the condensed consolidated financial statements and in accordance with recently issued Statement of Financial Accounting Standards No. 165 “Subsequent Events” (SFAS 165), the Company evaluated subsequent events after July 4, 2009 through the date and time the financial statements were issued on August 4, 2009.   In June 2009, the FASB issued SFAS 168, ”The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles - a replacement of FASB Statement No 162.” SFAS 168 established the effective date for use of the FASB codification for interim and annual periods ending after September 15, 2009. Companies should account for the adoption of the guidance on a prospective basis. The Company does not anticipate the adoption of SFAS 168 will have a material impact on their financial statements. The Company will update their disclosures for the appropriate FASB codification references after adoption, in the third quarter of 2009.   In June 2009, the FASB also issued SFAS 167 ”Amendments to FASB Interpretation No. 46", and SFAS 166 ”Accounting for Transfers of Financial Assets - an Amendment of FASB Statement No. 140.” SFAS 167 amends the existing guidance around FIN 46(R), to address the elimination of the concept of a qualifying special purpose entity. Also, it replaces the quantitative-based risks and rewards calculation for determining which enterprise has a controlling financial interest in a variable interest entity with an approach focused on identifying which enterprise has the power to direct the activities of a variable interest entity and the obligation to absorb losses of the entity or the right to receive benefits from the entity. Additionally, SFAS 167 provides for additional disclosures about an enterprise’s involvement with a variable interest entity. SFAS 166 amends SFAS 140 to eliminate the concept of a qualifying special purpose entity, amends the derecognition criteria for a transfer to be accounted for as a sale under SFAS 140, and will require additional disclosure over transfers accounted for as a sale. The effective date for both pronouncements is for the first fiscal year beginning after November 15, 2009, and will require retrospective application. The Company is still assessing the potential impact of adopting these two statements.   <style> /*<![CDATA[*/ st1:*{behavior:url(#ieooui) }  /* 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-priority:99; mso-style-qformat: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","serif";} /*]]>*/ </style> </div>

<div> <a name="_AUC310b139dc9f64985ac901d8f935ff447">7. Retirement Benefits</a>   Pension Benefit Plans   The net periodic pension costs for the Regular Pension Plan, Officers’ Plan, the Motorola Supplemental Pension Plan (“MSPP”) and Non-U.S. plans were as follows:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="411" valign="top" style= "width:308.0pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="158" colspan="3" valign="top" style= "width:118.35pt;padding:0in 2.35pt 0in 2.35pt">                July 4, 2009               </td> <td width="158" colspan="3" valign="top" style= "width:118.35pt;padding:0in 2.35pt 0in 2.35pt">               June 28, 2008              </td> </tr> <tr style="mso-yfti-irow:1"> <td width="411" valign="top" style= "width:308.0pt;padding:0in 2.35pt 0in 2.35pt">   Three Months Ended </td> <td width="50" valign="top" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt"> Regular Pension </td> <td width="58" valign="top" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">   Officers’ and MSPP </td> <td width="50" valign="top" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">     Non     U.S.    </td> <td width="50" valign="top" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt"> Regular Pension </td> <td width="58" valign="top" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">   Officers’ and MSPP </td> <td width="50" valign="top" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">     Non     U.S.    </td> </tr> <tr style="mso-yfti-irow:2"> <td width="411" valign="bottom" style= "width:308.0pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 298.65pt; mso-layout-grid-align:none;text-autospace:none"> Service cost </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">   $      4 </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">     $   — </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">   $      5 </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">   $    25 </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">     $     1 </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">    $     2 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="411" valign="bottom" style= "width:308.0pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 298.65pt; mso-layout-grid-align:none;text-autospace:none"> Interest cost </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">         84 </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">            2 </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">         15 </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">         81 </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">            2 </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">           1 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="411" valign="bottom" style= "width:308.0pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 298.65pt; mso-layout-grid-align:none;text-autospace:none"> Expected return on plan assets </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">        (95) </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">           (1) </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">        (12) </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">        (98) </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">           (1) </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">           3 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="411" valign="bottom" style= "width:308.0pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 298.65pt; mso-layout-grid-align:none;text-autospace:none"> Amortization of: </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">             </td> </tr> <tr style="mso-yfti-irow:6"> <td width="411" valign="bottom" style= "width:308.0pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 298.65pt; mso-layout-grid-align:none;text-autospace:none"> Unrecognized net loss </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">         19 </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">            1 </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">           1 </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">         13 </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">         — </td> </tr> <tr style="mso-yfti-irow:7"> <td width="411" valign="bottom" style= "width:308.0pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 298.65pt; mso-layout-grid-align:none;text-autospace:none"> Unrecognized prior service cost </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">         — </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">         — </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">          (8) </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">         — </td> </tr> <tr style="mso-yfti-irow:8"> <td width="411" valign="bottom" style= "width:308.0pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 298.65pt; mso-layout-grid-align:none;text-autospace:none"> Settlement/curtailment loss </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">            1 </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">            1 </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">         — </td> </tr> <tr style="mso-yfti-irow:9;mso-yfti-lastrow:yes"> <td width="411" valign="bottom" style= "width:308.0pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 298.65pt; mso-layout-grid-align:none;text-autospace:none"> Net periodic pension cost </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">   $    12 </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">     $     3 </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">   $      9 </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">   $    13 </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">     $     3 </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">    $     6 </td> </tr> </table>   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="409" valign="top" style= "width:307.0pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="158" colspan="3" valign="top" style= "width:118.85pt;padding:0in 2.35pt 0in 2.35pt">                July 4, 2009               </td> <td width="158" colspan="3" valign="top" style= "width:118.85pt;padding:0in 2.35pt 0in 2.35pt">               June 28, 2008              </td> </tr> <tr style="mso-yfti-irow:1"> <td width="409" valign="top" style= "width:307.0pt;padding:0in 2.35pt 0in 2.35pt">   Six Months Ended </td> <td width="51" valign="top" style= "width:37.9pt;padding:0in 2.35pt 0in 2.35pt"> Regular Pension </td> <td width="58" valign="top" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">   Officers’ and MSPP </td> <td width="50" valign="top" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">     Non     U.S.    </td> <td width="51" valign="top" style= "width:37.9pt;padding:0in 2.35pt 0in 2.35pt"> Regular Pension </td> <td width="58" valign="top" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">   Officers’ and MSPP </td> <td width="50" valign="top" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">     Non     U.S.    </td> </tr> <tr style="mso-yfti-irow:2"> <td width="409" valign="bottom" style= "width:307.0pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 297.65pt; mso-layout-grid-align:none;text-autospace:none"> Service cost </td> <td width="51" valign="bottom" style= "width:37.9pt;padding:0in 2.35pt 0in 2.35pt"> $         8 </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">     $   — </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">   $    11 </td> <td width="51" valign="bottom" style= "width:37.9pt;padding:0in 2.35pt 0in 2.35pt"> $      49 </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">     $     1 </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">   $    15 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="409" valign="bottom" style= "width:307.0pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 297.65pt; mso-layout-grid-align:none;text-autospace:none"> Interest cost </td> <td width="51" valign="bottom" style= "width:37.9pt;padding:0in 2.35pt 0in 2.35pt">       169 </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">            4 </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">         31 </td> <td width="51" valign="bottom" style= "width:37.9pt;padding:0in 2.35pt 0in 2.35pt">       162 </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">            3 </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">         33 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="409" valign="bottom" style= "width:307.0pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 297.65pt; mso-layout-grid-align:none;text-autospace:none"> Expected return on plan assets </td> <td width="51" valign="bottom" style= "width:37.9pt;padding:0in 2.35pt 0in 2.35pt">      (190) </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">           (1) </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">        (26) </td> <td width="51" valign="bottom" style= "width:37.9pt;padding:0in 2.35pt 0in 2.35pt">      (196) </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">           (1) </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">        (26) </td> </tr> <tr style="mso-yfti-irow:5"> <td width="409" valign="bottom" style= "width:307.0pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 297.65pt; mso-layout-grid-align:none;text-autospace:none"> Amortization of: </td> <td width="51" valign="bottom" style= "width:37.9pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="51" valign="bottom" style= "width:37.9pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">              </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">              </td> </tr> <tr style="mso-yfti-irow:6"> <td width="409" valign="bottom" style= "width:307.0pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 297.65pt; mso-layout-grid-align:none;text-autospace:none"> Unrecognized net loss </td> <td width="51" valign="bottom" style= "width:37.9pt;padding:0in 2.35pt 0in 2.35pt">          39 </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">            1 </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">           2 </td> <td width="51" valign="bottom" style= "width:37.9pt;padding:0in 2.35pt 0in 2.35pt">          26 </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">            1 </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">         — </td> </tr> <tr style="mso-yfti-irow:7"> <td width="409" valign="bottom" style= "width:307.0pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 297.65pt; mso-layout-grid-align:none;text-autospace:none"> Unrecognized prior service cost </td> <td width="51" valign="bottom" style= "width:37.9pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">         — </td> <td width="51" valign="bottom" style= "width:37.9pt;padding:0in 2.35pt 0in 2.35pt">        (15) </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">         — </td> </tr> <tr style="mso-yfti-irow:8"> <td width="409" valign="bottom" style= "width:307.0pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 297.65pt; mso-layout-grid-align:none;text-autospace:none"> Settlement/curtailment loss </td> <td width="51" valign="bottom" style= "width:37.9pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">            3 </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="51" valign="bottom" style= "width:37.9pt;padding:0in 2.35pt 0in 2.35pt">          — </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">            2 </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">          — </td> </tr> <tr style="mso-yfti-irow:9;mso-yfti-lastrow:yes"> <td width="409" valign="bottom" style= "width:307.0pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 297.65pt; mso-layout-grid-align:none;text-autospace:none"> Net periodic pension cost </td> <td width="51" valign="bottom" style= "width:37.9pt;padding:0in 2.35pt 0in 2.35pt"> $      26 </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">     $     7 </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">   $    18 </td> <td width="51" valign="bottom" style= "width:37.9pt;padding:0in 2.35pt 0in 2.35pt"> $      26 </td> <td width="58" valign="bottom" style= "width:43.55pt;padding:0in 2.35pt 0in 2.35pt">     $     6 </td> <td width="50" valign="bottom" style= "width:37.4pt;padding:0in 2.35pt 0in 2.35pt">   $    22 </td> </tr> </table>   During the three months ended July 4, 2009, contributions of $20 million and $14 million were made to the Company’s Regular Pension and Non-U.S. plans, respectively. During the six months ended July 4, 2009, contributions of $80 million and $22 million were made to the Company’s Regular Pension and Non-U.S. plans, respectively.   The Company has amended its Regular Pension Plan, the Officers’ Plan and MSPP such that: (i) no participant shall accrue any benefits or additional benefits on or after March 1, 2009, and (ii) no compensation increases earned by a participant on or after March 1, 2009 shall be used to compute any accrued benefit.   Postretirement Health Care Benefit Plans   Net postretirement health care expenses consist of the following:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="426" valign="top" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="150" colspan="2" valign="top" style= "width:112.7pt;padding:0in 2.35pt 0in 2.35pt">        Three Months Ended       </td> <td width="150" colspan="2" valign="top" style= "width:112.7pt;padding:0in 2.35pt 0in 2.35pt">           Six Months Ended         </td> </tr> <tr style="mso-yfti-irow:1"> <td width="426" valign="top" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       July 4,        2009       </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">      June 28,        2008       </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       July 4,        2009       </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">      June 28,        2008       </td> </tr> <tr style="mso-yfti-irow:2"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Service cost </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">        $    1 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">        $    2 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">        $     2 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $      3 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Interest cost </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              7 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              7 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">            14 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">             13 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Expected return on plan assets </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">             (4) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">             (5) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">             (8) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">            (10) </td> </tr> <tr style="mso-yfti-irow:5"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Amortization of: </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">                 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">                 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">                 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">                  </td> </tr> <tr style="mso-yfti-irow:6"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Unrecognized net loss </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              2 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              2 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">               4 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">                3 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:7.3pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Unrecognized prior service cost </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">             (1) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">             (1) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              (2) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              (1) </td> </tr> <tr style="mso-yfti-irow:8;mso-yfti-lastrow:yes"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Net postretirement health care expense </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">        $    5 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">        $    5 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">        $  10 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $      8 </td> </tr> </table>   The Company made no contributions to its postretirement healthcare fund during the three and six months ended July 4, 2009.   The Company maintains a number of endorsement split-dollar life insurance policies on now-retired officers under a plan that was frozen prior to December 31, 2004. The Company had purchased the life insurance policies to insure the lives of employees and then entered into a separate agreement with the employees that split the policy benefits between the Company and the employee. Motorola owns the policies, controls all rights of ownership, and may terminate the insurance policies. To effect the split-dollar arrangement, Motorola endorsed a portion of the death benefits to the employee and upon the death of the employee, the employee’s beneficiary typically receives the designated portion of the death benefits directly from the insurance company and the Company receives the remainder of the death benefits. During the three and six months ended July 4, 2009, the Company recorded $1 million and $3 million, respectively, in expenses related to this plan.   <style> /*<![CDATA[*/ st1:*{behavior:url(#ieooui) }  /* 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-priority:99; mso-style-qformat: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","serif";} /*]]>*/ </style> </div>

<div> <a name="_AUCaa12ec9dd35e44ccb0dc76e77e51d0de">12. Segment Information</a>   The Company reports financial results for the following operating business segments:   •     The Mobile Devices segment designs, manufactures, sells and services wireless handsets with integrated software and accessory products, and licenses intellectual property.   •     The Home and Networks Mobility segment designs, manufactures, sells, installs and services: (i) digital video, Internet Protocol video and broadcast network interactive set-tops (“digital entertainment devices”), end-to-end video delivery systems, broadband access infrastructure platforms, and associated data and voice customer premise equipment to cable television and telecom service providers (collectively, referred to as the “home business”), and (ii) wireless access systems, including cellular infrastructure systems and wireless broadband systems, to wireless service providers (collectively, referred to as the “network business”).   •     The Enterprise Mobility Solutions segment designs, manufactures, sells, installs and services analog and digital two-way radio, voice and data communications products and systems for private networks, wireless broadband systems and end-to-end enterprise mobility solutions to a wide range of enterprise markets, including government and public safety agencies (which, together with all sales to distributors of two-way communication products, are referred to as the “government and public safety market”), as well as retail, energy and utilities, transportation, manufacturing, healthcare and other commercial customers (which, collectively, are referred to as the “commercial enterprise market”).   The following table summarizes the Net sales and Operating earnings (loss) by operating business segment:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="475" valign="top" style= "width:356.2pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="126" colspan="2" valign="top" style= "width:94.25pt;padding:0in 2.35pt 0in 2.35pt">                Net Sales            </td> <td width="126" colspan="2" valign="top" style= "width:94.25pt;padding:0in 2.35pt 0in 2.35pt">     Operating Earnings                (Loss)              </td> </tr> <tr style="mso-yfti-irow:1"> <td width="475" valign="top" style= "width:356.2pt;padding:0in 2.35pt 0in 2.35pt">   Three Months Ended </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">    July 4,      2009     </td> <td width="67" valign="top" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">    June 28,       2008      </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">    July 4,      2009     </td> <td width="67" valign="top" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">    June 28,       2008      </td> </tr> <tr style="mso-yfti-irow:2"> <td width="475" valign="bottom" style= "width:356.2pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 346.85pt; mso-layout-grid-align:none;text-autospace:none"> Mobile Devices </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt"> $  1,829 </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">    $  3,334 </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">   $  (253) </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">    $   (346) </td> </tr> <tr style="mso-yfti-irow:3"> <td width="475" valign="bottom" style= "width:356.2pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 346.85pt; mso-layout-grid-align:none;text-autospace:none"> Home and Networks Mobility </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">       2,001 </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">        2,738 </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">         153 </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">           245 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="475" valign="bottom" style= "width:356.2pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 346.85pt; mso-layout-grid-align:none;text-autospace:none"> Enterprise Mobility Solutions </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">      1,685 </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">         2,042 </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">         227 </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">          377 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="475" valign="top" style= "width:356.2pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">       5,515 </td> <td width="67" valign="top" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">        8,114 </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">         127 </td> <td width="67" valign="top" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">           276 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="475" valign="bottom" style= "width:356.2pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 346.85pt; mso-layout-grid-align:none;text-autospace:none"> Other and Eliminations </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">          (18) </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">             (32) </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">        (117) </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">         (271) </td> </tr> <tr style="mso-yfti-irow:7"> <td width="475" valign="bottom" style= "width:356.2pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 346.85pt; mso-layout-grid-align:none;text-autospace:none"> Net sales </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt"> $  5,497 </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">    $  8,082 </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">                </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">                  </td> </tr> <tr style="mso-yfti-irow:8"> <td width="475" valign="bottom" style= "width:356.2pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 346.85pt; mso-layout-grid-align:none;text-autospace:none"> Operating earnings (loss) </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">                 </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">                   </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">            10 </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">               5 </td> </tr> <tr style="mso-yfti-irow:9"> <td width="475" valign="bottom" style= "width:356.2pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 346.85pt; mso-layout-grid-align:none;text-autospace:none"> Total other income (expense) </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">                 </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">                   </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">           23 </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">           (63) </td> </tr> <tr style="mso-yfti-irow:10;mso-yfti-lastrow:yes"> <td width="475" valign="bottom" style= "width:356.2pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 346.85pt; mso-layout-grid-align:none;text-autospace:none"> Earnings (loss) from continuing operations before income taxes </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">                 </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">                   </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">   $      33 </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">    $     (58) </td> </tr> </table>   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="471" valign="top" style= "width:353.15pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="130" colspan="2" valign="top" style= "width:97.3pt;padding:0in 2.35pt 0in 2.35pt">                Net Sales             </td> <td width="126" colspan="2" valign="top" style= "width:94.25pt;padding:0in 2.35pt 0in 2.35pt">     Operating Earnings                (Loss)              </td> </tr> <tr style="mso-yfti-irow:1"> <td width="471" valign="top" style= "width:353.15pt;padding:0in 2.35pt 0in 2.35pt">   Six Months Ended </td> <td width="63" valign="top" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">     July 4,      2009     </td> <td width="67" valign="top" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">    June 28,       2008      </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">    July 4,      2009     </td> <td width="67" valign="top" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">    June 28,       2008      </td> </tr> <tr style="mso-yfti-irow:2"> <td width="471" valign="bottom" style= "width:353.15pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 343.8pt; mso-layout-grid-align:none;text-autospace:none"> Mobile Devices </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt"> $     3,630 </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt"> $     6,633 </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">   $  (762) </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">    $   (764) </td> </tr> <tr style="mso-yfti-irow:3"> <td width="471" valign="bottom" style= "width:353.15pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 343.8pt; mso-layout-grid-align:none;text-autospace:none"> Home and Networks Mobility </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">        3,992 </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">         5,121 </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">         268 </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">           398 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="471" valign="bottom" style= "width:353.15pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 343.8pt; mso-layout-grid-align:none;text-autospace:none"> Enterprise Mobility Solutions </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">        3,284 </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">        3,848 </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">         383 </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">          627 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="471" valign="top" style= "width:353.15pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="63" valign="top" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">      10,906 </td> <td width="67" valign="top" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">       15,602 </td> <td width="59" valign="top" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">        (111) </td> <td width="67" valign="top" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">           261 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="471" valign="bottom" style= "width:353.15pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 343.8pt; mso-layout-grid-align:none;text-autospace:none"> Other and Eliminations </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">            (38) </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">            (72) </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">        (328) </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">         (525) </td> </tr> <tr style="mso-yfti-irow:7"> <td width="471" valign="bottom" style= "width:353.15pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 343.8pt; mso-layout-grid-align:none;text-autospace:none"> Net sales </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt"> $  10,868 </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt"> $  15,530 </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">                </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">                  </td> </tr> <tr style="mso-yfti-irow:8"> <td width="471" valign="bottom" style= "width:353.15pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 343.8pt; mso-layout-grid-align:none;text-autospace:none"> Operating earnings (loss) </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">                  </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">                    </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">        (439) </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">         (264) </td> </tr> <tr style="mso-yfti-irow:9"> <td width="471" valign="bottom" style= "width:353.15pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 343.8pt; mso-layout-grid-align:none;text-autospace:none"> Total other income (expense) </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">                  </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">                    </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">           38 </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">           (51) </td> </tr> <tr style="mso-yfti-irow:10;mso-yfti-lastrow:yes"> <td width="471" valign="bottom" style= "width:353.15pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 343.8pt; mso-layout-grid-align:none;text-autospace:none"> Loss from continuing operations before income taxes </td> <td width="63" valign="bottom" style= "width:47.25pt;padding:0in 2.35pt 0in 2.35pt">                  </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">                    </td> <td width="59" valign="bottom" style= "width:44.2pt;padding:0in 2.35pt 0in 2.35pt">   $  (401) </td> <td width="67" valign="bottom" style= "width:50.05pt;padding:0in 2.35pt 0in 2.35pt">    $   (315) </td> </tr> </table>   The Operating loss in Other and Eliminations consists of the following:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 2.35pt 0in 2.35pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="426" valign="top" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="150" colspan="2" valign="top" style= "width:112.7pt;padding:0in 2.35pt 0in 2.35pt">        Three Months Ended       </td> <td width="150" colspan="2" valign="top" style= "width:112.7pt;padding:0in 2.35pt 0in 2.35pt">           Six Months Ended         </td> </tr> <tr style="mso-yfti-irow:1"> <td width="426" valign="top" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt">     </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       July 4,        2009       </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">      June 28,        2008       </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       July 4,        2009       </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">      June 28,        2008       </td> </tr> <tr style="mso-yfti-irow:2"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Amortization of intangible assets </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $     70 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $     81 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $  141 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $  164 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Share-based compensation expense(1) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              50 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              74 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">           111 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">           143 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Corporate expenses(2) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              46 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              51 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">           100 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">           124 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Reorganization of business charges </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">                6 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">                8 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              31 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              17 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Separation-related transaction costs </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              — </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              20 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              — </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              20 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="426" valign="bottom" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt"> <p class="MsoNormal" align="left" style= "margin-top:0in;margin-right:5.05pt; margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:left; text-indent:-5.05pt;line-height:93%;mso-pagination:none;tab-stops:dotted 309.95pt; mso-layout-grid-align:none;text-autospace:none"> Legal settlements </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">             (55) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              37 </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">             (55) </td> <td width="75" valign="bottom" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">              57 </td> </tr> <tr style="mso-yfti-irow:8;mso-yfti-lastrow:yes"> <td width="426" valign="top" style= "width:319.3pt;padding:0in 2.35pt 0in 2.35pt">   </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $  117 </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $  271 </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $  328 </td> <td width="75" valign="top" style= "width:56.35pt;padding:0in 2.35pt 0in 2.35pt">       $  525 </td> </tr> </table>   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-padding-alt:0in 4.5pt 0in 4.5pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> (1) </td> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> Primarily comprised of: (i) compensation expense related to the Company’s employee stock options, stock appreciation rights and employee stock purchase plans, and (ii) compensation expenses related to the restricted stock and restricted stock units granted to the corporate employees. </td> </tr> <tr style="mso-yfti-irow:1;mso-yfti-lastrow:yes"> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> (2) </td> <td valign="top" style="padding:0in 4.5pt 0in 4.5pt"> Primarily comprised of: (i) general corporate-related expenses, (ii) various corporate programs, representing developmental businesses and research and development projects, which are not included in any reporting segment, and (iii) the Company’s wholly-owned finance subsidiary. </td> </tr> </table>   <style> /*<![CDATA[*/ st1:*{behavior:url(#ieooui) }  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; 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