-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JRjaTLcdf3MfcB+8PsCFzZrsgdU7G7bM7fqHH5nNLVkW5RTigFhX4bGlpmu2+PdO ZQshxfJYiGwzUgrTC9lmGg== 0001104659-09-020979.txt : 20090327 0001104659-09-020979.hdr.sgml : 20090327 20090327170126 ACCESSION NUMBER: 0001104659-09-020979 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20090327 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20090327 DATE AS OF CHANGE: 20090327 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AES CORP CENTRAL INDEX KEY: 0000874761 STANDARD INDUSTRIAL CLASSIFICATION: COGENERATION SERVICES & SMALL POWER PRODUCERS [4991] IRS NUMBER: 541163725 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12291 FILM NUMBER: 09711150 BUSINESS ADDRESS: STREET 1: 4300 WILSON BOULEVARD CITY: ARLINGTON STATE: VA ZIP: 22203 BUSINESS PHONE: 7035221315 MAIL ADDRESS: STREET 1: 4300 WILSON BOULEVARD CITY: ARLINGTON STATE: VA ZIP: 22203 FORMER COMPANY: FORMER CONFORMED NAME: AES CORPORATION DATE OF NAME CHANGE: 19930328 8-K 1 a09-8731_18k.htm 8-K

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): March 27, 2009

 

THE AES CORPORATION
(Exact name of Registrant as specified in its charter)

 

Delaware

 

001-12291

 

54-1163725

(State or other jurisdiction
of incorporation)

 

Commission File Number

 

(IRS Employer

Identification No.)

 

 

 

 

 

4300 Wilson Boulevard, Suite 1100
Arlington, Virginia

 

22203

(Address of principal executive offices)

 

(Zip code)

 

(703) 522-1315

(Registrant’s telephone number, including area code)

 

Not Applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

Item 8.01. Other Events

 

The AES Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008 (the “Form 10-K”) was filed with the Securities and Exchange Commission on February 26, 2009.  Attached as Exhibit 100 to this report are the following financial statements from the Form 10-K formatted in XBRL (eXtensible Business Reporting Language):  (i) the Consolidated Balance Sheets at December 31, 2008 and 2007, (ii) the Consolidated Statements of Operations for the years ended December 31, 2008, 2007 and 2006, (iii) the Consolidated Statements of Cash Flows for the years ended December 31, 2008, 2007 and 2006, (iv) the Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 31, 2008, 2007 and 2006 and (v) the Notes to the Consolidated Financial Statements, tagged as blocks of text.  Users of this data are advised pursuant to Rule 401 of Regulation S-T that the financial and other information contained in the XBRL formatted documents is unaudited and that these are not the official publicly filed financial statements of The AES Corporation.  The purpose of submitting these XBRL formatted documents is to test the related format and technology and, as a result, investors should continue to rely on the official filed version of the furnished documents and should not rely on the information in this Current Report on Form 8-K, including Exhibit 100, in making investment decisions.

 

In accordance with Rule 402 of Regulation S-T, the information in this Current Report on Form 8-K, including Exhibit 100, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 

Item 9.01. Financial Statements and Exhibits

 

Exhibit Number

 

Description

 

 

 

100.INS

 

XBRL Instance Document

 

 

 

100.SCH

 

XBRL Taxonomy Extension Schema Document

 

 

 

100.PRE

 

XBRL Taxonomy Presentation Linkbase Document

 

 

 

100.LAB

 

XBRL Taxonomy Label Linkbase Document

 

 

 

100.CAL

 

XBRL Taxonomy Calculation Linkbase Document

 

 

 

100.DEF

 

XBRL Taxonomy Extension Definition Linkbase Document

 

 



 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Dated: March 27, 2009

 

 

THE AES CORPORATION

 

 

 

 

 

 

 

By:

/s/ Mary E. Wood

 

 

Name: Mary E. Wood

 

 

Title: Vice President & Controller

 

 


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GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The AES Corporation is a holding company (the "Parent Company") that through its subsidiaries and affiliates, (collectively, "AES" or "the Company") operates a geographically diversified portfolio of electricity generation and distribution businesses. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>PRINCIPLES OF CONSOLIDATION</B></FONT><FONT size=2>&#151;The Consolidated Financial Statements of the Company include the accounts of The AES Corporation, its subsidiaries and controlled affiliates, and variable interest entities ("VIEs") of which the Company is the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A VIE is an entity (a)&nbsp;that has a total equity investment at risk that is not sufficient to finance its activities without additional subordinated financial support provided by any parties or (b)&nbsp;where the group of equity holders does not have (i)&nbsp;the ability to make significant decisions about the entity's activities, (ii)&nbsp;the obligation to absorb the entity's expected losses or (iii)&nbsp;the right to receive the entity's expected residual returns or (c)&nbsp;where the voting rights of some equity holders are not proportional to their obligations to absorb expected losses, receive expected residual returns or both, and substantially all of the entity's activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is considered the primary beneficiary of a VIE and thus consolidates the VIE when the Company absorbs a majority of expected losses of the VIE, receives a majority of expected residual returns of the VIE (unless another enterprise receives this majority), or both. The Company performs a qualitative determination as to which variable interest holder is the primary beneficiary, but, when this is not clear, the Company will make the determination based on a computation and allocation of expected losses and expected residual returns. The primary beneficiary determination has not historically required significant judgments or assumptions to be made. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company determines if it is the primary beneficiary when it becomes involved in the VIE. If the Company is the primary beneficiary, it reconsiders this decision when it sells or otherwise disposes of all or part of our variable interests to unrelated parties or if the VIE issues new variable interests to parties other than the Company or its related parties. Conversely, if the Company is not the primary beneficiary, it reconsiders this decision when it acquires additional variable interests in these entities. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>EQUITY METHOD INVESTMENTS</B></FONT><FONT size=2>&#151;Entities (whether or not they are VIEs) over which the Company has the ability to exercise significant influence, but not control, are accounted for using the equity method. The Company periodically assesses the recoverability of its equity method investments. If an identified event or change in circumstances requires an impairment evaluation, management assesses the fair value based on valuation methodologies, including discounted cash flows, estimates of sale proceeds and external appraisals, as appropriate. The difference between the carrying value of the equity method investment and its estimated fair value is recognized as an impairment when the loss in value is deemed other-than-temporary and included in "other non-operating expense" on the Consolidated Statements of Operations. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with Accounting Principles Board ("APB") Opinion No.&nbsp;18, </FONT><FONT size=2><I>The Equity Method of Accounting for Investments in Common Stock</I></FONT><FONT size=2> ("APB No.&nbsp;18") the Company discontinues the application of the equity method when an investment is reduced to zero and is not otherwise committed to provide further financial support for the investee. The Company resumes the application of the equity method if the investee subsequently reports net income to the extent that the Company's share of such net </FONT><FONT size=2>income equals the share of net losses not recognized during the period the equity method was suspended. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>DISCONTINUED OPERATIONS AND RECLASSIFICATIONS</B></FONT><FONT size=2>&#151;Certain immaterial prior period amounts have been reclassified within the Consolidated Financial Statements to conform with current year presentation. In addition, in December&nbsp;2008, the Company sold its coal-fired generation plant, Jiaozuo, in China. These operations were considered to be discontinued operations, as defined under Statement of Financial Accounting Standards ("SFAS") No.&nbsp;144, </FONT><FONT size=2><I>Accounting for the Impairment or Disposal of Long-Lived Assets</I></FONT><FONT size=2> ("SFAS No.&nbsp;144"), and the prior period Consolidated Financial Statements in this Form&nbsp;10-K have been restated to reflect this business as a discontinued operation as discussed in Note&nbsp;21&#151;Discontinued Operations and Held for Sale Businesses. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>USE OF ESTIMATES</B></FONT><FONT size=2>&#151;The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires the Company to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Items subject to such estimates and assumptions include the carrying value and estimated useful lives of long-lived assets; impairment of goodwill and equity method investments; valuation allowances for receivables and deferred tax assets; the recoverability of deferred regulatory assets and the valuation of certain financial instruments, pension liabilities, environmental liabilities and potential litigation claims and settlements. </FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>CASH AND CASH EQUIVALENTS</B></FONT><FONT size=2>&#151;The Company considers unrestricted cash on hand, deposits in banks, certificates of deposit and short-term marketable securities with an original or remaining maturity at the date of acquisition of three months or less to be cash and cash equivalents; such balances approximate fair value. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>RESTRICTED CASH</B></FONT><FONT size=2>&#151;Restricted cash includes cash and cash equivalents which are restricted as to withdrawal or usage. The nature of restrictions includes restrictions imposed by the financing agreements such as security deposits kept as collateral, debt service reserves, maintenance reserves and others, as well as restrictions imposed by long-term power purchase agreements ("PPA"). </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>ALLOWANCE FOR DOUBTFUL ACCOUNTS</B></FONT><FONT size=2>&#151;The Company maintains an allowance for doubtful accounts for estimated uncollectible accounts receivable. The allowance is based on the Company's assessment of known delinquent accounts, historical experience and other currently available evidence of the collectibility and the aging of accounts receivable. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>INVESTMENTS IN MARKETABLE SECURITIES</B></FONT><FONT size=2>&#151;Short-term investments in marketable debt and equity securities consist of securities with original or remaining maturities in excess of three months but less than one year. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketable debt securities that the Company has both the positive intent and ability to hold to maturity are classified as held-to-maturity and are carried at historical cost. Other marketable securities that the Company does not intend to hold to maturity are classified as available-for-sale or trading and are reflected at fair value. Available-for-sale investments are marked-to-market at the end of each reporting period, with unrealized holding gains or losses, which represent changes in the market value </FONT><FONT size=2>of the investment, reflected in accumulated other comprehensive income ("AOCI") a separate component of stockholders' equity. In accordance with SFAS No.&nbsp;115, </FONT><FONT size=2><I>Accounting for Certain Investments in Debt and Equity Securities,</I></FONT><FONT size=2> ("SFAS No.&nbsp;115"), when there is an other-than-temporary decline in the market value of available-for-sale or held-to-maturity investments, the Company recognizes an impairment charge which is classified as "other non-operating expense" on the Consolidated Statements of Operations. Investments classified as trading are marked-to-market on a periodic basis through the Consolidated Statements of Operations. Interest and dividends on investments are reported in interest income. Gains and losses on sales of investments are determined using the specific identification method. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See Note&nbsp;6&#151;Fair Value of Financial Instruments and the Company's Fair Value policy for additional discussion regarding the determination of the fair value of the Company's investments in marketable debt and equity securities. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>PROPERTY, PLANT AND EQUIPMENT</B></FONT><FONT size=2>&#151;Property, plant and equipment are stated at cost. The cost of renewals and betterments that extend the useful life of property, plant and equipment are capitalized. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction progress payments, engineering costs, insurance costs, salaries, interest and other costs directly relating to construction in progress are capitalized during the construction period, provided the completion of the project is deemed probable, or expensed at the time the Company determines that development of a particular project is no longer probable. The continued capitalization of such costs is subject to ongoing risks related to successful completion, including those related to government approvals, siting, financing, construction, permitting and contract compliance. Construction in progress balances are transferred to electric generation and distribution assets when each asset is ready for its intended use. Government subsidies are recorded as a reduction in fixed assets and reflected in investing activities. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation, after consideration of salvage value and asset retirement obligations, is computed primarily using the straight-line method over the estimated useful lives of the assets, which are on a composite or component basis. Maintenance and repairs are charged to expense as incurred. Capital spare parts, including rotable spare parts, are included in electric generation and distribution assets. If the part is considered a component, it is depreciated over its useful life after the part is placed in service. If the part is deemed part of a composite asset, the part is depreciated over its useful life even when being held as a spare part. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>DEFERRED FINANCING COSTS</B></FONT><FONT size=2>&#151;Financing costs are deferred and amortized over the related financing period using the effective interest method or the straight-line method when it does not differ materially from the effective interest method. Make-whole payments in connection with early debt retirements are classified as investing activities. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>GOODWILL AND OTHER INTANGIBLES</B></FONT><FONT size=2>&#151;In accordance with SFAS No.&nbsp;142, </FONT><FONT size=2><I>Goodwill and Other Intangible Assets</I></FONT><FONT size=2> ("SFAS No.&nbsp;142"), the Company recognizes goodwill for the excess of the cost of an acquired entity over the net amount assigned to assets acquired and liabilities assumed. The Company evaluates goodwill and indefinite-lived intangible assets for impairment on an annual basis and whenever events or changes in circumstances trigger an analysis of its carrying value. The Company's annual impairment testing date is October&nbsp;1<SUP>st</SUP>. The evaluation of impairment involves </FONT><FONT size=2>comparing the current fair value of each of the Company's reporting units to their carrying value as required by SFAS No.&nbsp;142. The income approach using a discounted cash flow model ("DCF Model") is primarily used in determining the current fair value of its reporting units. Finite-lived intangible assets are amortized over their useful lives which range from 2&nbsp;- 95&nbsp;years. The Company accounts for emission allowances as intangible assets and charges them to expense when sold or used; granted allowances are valued at zero. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>LONG-LIVED ASSETS</B></FONT><FONT size=2>&#151;In accordance with SFAS No.&nbsp;144, the Company evaluates the impairment of long-lived assets based on the projection of undiscounted cash flows when circumstances indicate that the carrying amount of such assets may not be recoverable or the assets meet the held for sale criteria under SFAS No.&nbsp;144. These events or circumstances may include the relative pricing of wholesale electricity by region, anticipated demand and cost of fuel. If the carrying amount is not recoverable, an impairment charge is recognized for the amount by which the carrying value of the long-lived asset exceeds its fair value. For regulated assets, an impairment charge could be offset by the establishment of a regulatory asset, if recovery through approved rates was probable. For non-regulated assets, an impairment charge would be recognized as a charge against earnings. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fair value of an asset is the amount at which that asset could be bought or sold in a current transaction between willing parties, that is, other than a forced or liquidation sale. Quoted market prices in active markets are the best evidence of fair value and are used as the basis for measurement, if available. In the absence of quoted market prices for identical or similar assets in active markets, fair value is estimated using various internal and external valuation methods including cash flow projections or other indicators of fair value such as bids received, comparable sales or appraisals. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the periodic evaluation of long-lived assets in accordance with the requirements of SFAS No.&nbsp;144, the fair value of the asset can vary if different estimates and assumptions would have been used in our applied valuation techniques. In cases of impairment described in Note&nbsp;19&#151;Impairment Expense, we made our best estimate of fair value using valuation methods based on the most current information at that time. Fluctuations in realized sales proceeds versus the estimated fair value of the asset are generally due to a variety of factors including differences in subsequent market conditions, the level of bidder interest, timing and terms of the transactions and management's analysis of the benefits of the transaction. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>ASSET RETIREMENT OBLIGATIONS</B></FONT><FONT size=2>&#151;In accordance with SFAS No.&nbsp;143, </FONT><FONT size=2><I>Accounting for Asset Retirement Obligations</I></FONT><FONT size=2> ("SFAS No.&nbsp;143"), the Company records the fair value of the liability for a legal obligation to retire an asset in the period in which the obligation is incurred. When a new liability is recognized, the Company will capitalize the costs of the liability by increasing the carrying amount of the related long-lived asset. The liability is accreted to its present value each period and the capitalized cost is depreciated over the useful life of the related asset. Upon settlement of the obligation, the Company eliminates the liability and, based on the actual cost to retire, may incur a gain or loss. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>CONDITIONAL ASSET RETIREMENT OBLIGATIONS</B></FONT><FONT size=2>&#151;Pursuant to Financial Accounting Standards Board ("FASB") Interpretation ("FIN") No.&nbsp;47, </FONT><FONT size=2><I>Accounting for Conditional Asset Retirement Obligations</I></FONT><FONT size=2> ("FIN No.&nbsp;47"), the Company records the estimated fair value of conditional asset retirement obligations. The Company's asset retirement obligations covered by FIN No.&nbsp;47 primarily include conditional obligations to demolish assets or return assets in good working condition at the end </FONT><FONT size=2>of the contractual or concession term, and for the removal of equipment containing asbestos and other contaminants. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>GUARANTOR ACCOUNTING</B></FONT><FONT size=2>&#151;Pursuant to FIN No.&nbsp;45, </FONT><FONT size=2><I>Guarantor's Accounting and Disclosure Requirements for Guarantees, Including Direct Guarantees of Indebtedness of Others</I></FONT><FONT size=2>, at the inception of a guarantee, the Company records the fair value of a guarantee as a liability, with the offset dependent on the circumstances under which the guarantee was issued. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>INCOME TAXES</B></FONT><FONT size=2>&#151;Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of the existing assets and liabilities, and their respective income tax bases. The Company establishes a valuation allowance when it is more likely than not that all or a portion of a deferred tax asset will not be realized. As discussed in Note&nbsp;20&#151;Income Taxes, in June 2006, the FASB issued FIN No.&nbsp;48, </FONT><FONT size=2><I>Accounting for Uncertainty in Income Taxes</I></FONT><FONT size=2>, ("FIN No.&nbsp;48") which applied to our financial statements beginning January&nbsp;1, 2007. The Company adopted FIN No.&nbsp;48 on January&nbsp;1, 2007 and recognized a cumulative effect of $53&nbsp;million of applying the provisions of this Interpretation as an adjustment to beginning retained earnings. FIN No.&nbsp;48 applies to all tax positions accounted for in accordance with SFAS No.&nbsp;109, </FONT><FONT size=2><I>Accounting for Income Taxes</I></FONT><FONT size=2>, ("SFAS No.&nbsp;109") and requires the Company's tax positions to be evaluated under a more-likely-than-not recognition threshold and measurement analysis before they can be recognized for financial statement reporting. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Uncertain tax positions have been classified as noncurrent income tax liabilities unless expected to be paid in one year. The Company's policy for interest and penalties related to income tax exposures is to recognize interest and penalties as a component of the provision for income taxes in the Consolidated Statements of Operations. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>FOREIGN CURRENCY TRANSLATION</B></FONT><FONT size=2>&#151;A business' functional currency is the currency of the primary economic environment in which the business operates and is generally the currency in which the business generates and expends cash. Subsidiaries and affiliates whose functional currency is other than the U.S.&nbsp;Dollar translate their assets and liabilities into U.S.&nbsp;Dollars at the current exchange rates in effect at the end of the fiscal period. The revenue and expense accounts of such subsidiaries and affiliates are translated into U.S.&nbsp;Dollars at the average exchange rates that prevailed during the period. Translation adjustments are included in accumulated other comprehensive loss, a separate component of stockholders' equity. Gains and losses on intercompany foreign currency transactions which are long-term in nature, which the Company does not intend to settle in the foreseeable future, are also recognized in accumulated other comprehensive loss. Gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in determining net income. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>REVENUE RECOGNITION</B></FONT><FONT size=2>&#151;The revenue of the Utilities business is classified as regulated on the Consolidated Statement of Operations. Revenues from the sale of energy are recognized in the period during which the sale occurs. The calculation of revenues earned but not yet billed is based on the number of days not billed in the month, the estimated amount of energy delivered during those days and the estimated average price per customer class for that month. Differences between actual and estimated unbilled revenues have been immaterial. The revenues from the Generation business are classified as non-regulated and are recognized based upon output delivered and capacity provided at </FONT><FONT size=2>rates as specified under contract terms or prevailing market rates. The Company has businesses wherein it makes sales and purchases of power to and from Independent System Operators ("ISOs") and Regional Transmission Organizations ("RTOs"). In those instances, the Company accounts for these transactions on a net hourly basis because the transactions are settled on a net hourly basis. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>GENERAL AND ADMINISTRATIVE EXPENSES</B></FONT><FONT size=2>&#151;General and administrative expenses include corporate and other expenses related to corporate staff functions and initiatives, primarily executive management, finance, legal, human resources, information systems and certain development costs which are not allocable to our business segments. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>REGULATORY ASSETS AND LIABILITIES</B></FONT><FONT size=2>&#151;The Company accounts for certain of its regulated operations under the provisions of SFAS No.&nbsp;71, </FONT><FONT size=2><I>Accounting for the Effects of Certain Types of Regulation</I></FONT><FONT size=2> ("SFAS No.&nbsp;71"). As a result, AES records assets and liabilities that result from the regulated ratemaking process that are not recognized under GAAP for non-regulated entities. Regulatory assets generally represent incurred costs that have been deferred due to the probability of future recovery in customer rates. Regulatory liabilities generally represent obligations to make refunds to customers. Management continually assesses whether the regulatory assets are probable of future recovery by considering factors such as applicable regulatory changes, recent rate orders applicable to other regulated entities and the status of any pending or potential deregulation legislation. If future recovery of costs previously deferred ceases to be probable, the asset write-offs are recognized in continuing operations. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>DERIVATIVES</B></FONT><FONT size=2>&#151;The Company enters into various derivative transactions in order to hedge its exposure to certain market risks. AES primarily uses derivative instruments to manage its interest rate, commodity and foreign currency exposures. The Company does not enter into derivative transactions for trading purposes. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under SFAS No.&nbsp;133, </FONT><FONT size=2><I>Accounting for Derivative Instruments and Hedging Activities</I></FONT><FONT size=2> ("SFAS No.&nbsp;133"), as amended, the Company recognizes all derivatives, except those designated as normal purchase or normal sales at inception as either assets or liabilities in the balance sheet and measures those instruments at fair value. Changes in the fair value of derivatives are recognized in earnings unless specific hedge criteria are met. Gains and losses related to derivative instruments that qualify as hedges are recognized in the same category as generated by the underlying asset or liability. Gains or losses on derivatives that do not qualify for hedge accounting are recognized as interest income or expense for interest rate derivatives, foreign currency gains or losses on foreign currency derivatives, and revenue or cost of sales for commodity derivatives. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SFAS No.&nbsp;133 enables companies to designate qualifying derivatives as hedging instruments based on the exposure being hedged. These hedge designations include fair value hedges and cash flow hedges. Changes in the fair value of a derivative that is highly effective as, and is designated and qualifies as, a fair value hedge are recognized in earnings as offsets to the changes in fair value of the exposure being hedged. Changes in the fair value of a derivative that is highly effective as, and is designated as and qualifies as, a cash flow hedge are deferred in accumulated other comprehensive income and are recognized into earnings as the hedged transactions affect earnings. Any ineffectiveness is recognized in earnings immediately. The ineffective portion is recognized as interest income or expense for interest rate hedges, foreign currency gains or losses on foreign currency hedges, and </FONT><FONT size=2>non-regulated revenue or non-regulated cost of sales for commodity hedges. For all hedge contracts, the Company maintains formal documentation of the hedge and effectiveness testing in accordance with SFAS No.&nbsp;133. If AES deems that the derivative is not highly effective as a hedge, hedge accounting will be discontinued prospectively. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For cash flow hedges of forecasted transactions, AES estimates the future cash flows represented by the forecasted transactions and evaluates the probability of the occurrence and timing of such transactions. Changes in conditions or the occurrence of unforeseen events could require discontinuance of hedge accounting or could affect the timing of the reclassification of gains or losses on cash flow hedges from accumulated other comprehensive loss into earnings. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See Note&nbsp;6&#151;Fair Value of Financial Instruments and the Company's fair value policy for additional discussion regarding the determination of the fair value of the Company's derivative assets and liabilities. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>SHARE-BASED COMPENSATION</B></FONT><FONT size=2>&#151;The Company accounts for stock-based compensation plans under the fair value recognition provision of SFAS No.&nbsp;123, </FONT><FONT size=2><I>Share-Based Payment</I></FONT><FONT size=2>, as amended by SFAS No.&nbsp;148, </FONT><FONT size=2><I>Accounting for Stock-Based Compensation&#151;Transition and Disclosure</I></FONT><FONT size=2> ("SFAS No.&nbsp;123(R)"). Currently, the Company uses a Black-Scholes Option pricing model to estimate the fair value of stock options granted to employees. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AES adopted SFAS No.&nbsp;123(R) effective January&nbsp;1, 2006. For transition purposes, AES elected the modified prospective application method. Under this application method, SFAS No.&nbsp;123(R) applies to new awards and to awards modified, repurchased or cancelled after January&nbsp;1, 2006. The standard requires companies to recognize compensation cost relating to share-based payment transactions in their financial statements. That cost is measured on the grant date based on the fair value of the equity or liability instruments issued and is expensed on a straight-line basis over the requisite service period, net of estimated forfeitures. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, effective January&nbsp;1, 2006, AES adopted FASB Staff Position ("FSP") No.&nbsp;SFAS&nbsp;123(R)-3, </FONT><FONT size=2><I>Transition Election Related to Accounting for the Tax Effects of Share-Based Payment Awards</I></FONT><FONT size=2>, which provides the Company the option to use the "short-cut method" for calculating the historical pool of windfall tax benefits upon adoption of SFAS No.&nbsp;123(R). </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>SALES OF STOCK BY A SUBSIDIARY</B></FONT><FONT size=2>&#151;The issuance or sale of previously unissued shares of stock by a subsidiary of the Company are accounted for as capital transactions as permitted by SEC Staff Accounting Bulletin No.&nbsp;51, </FONT><FONT size=2><I>Accounting for Sales of Stock by a Subsidiary</I></FONT><FONT size=2> ("SAB No.&nbsp;51"). Sales of stock of a subsidiary when no new shares are issued are not treated as capital transactions and may result in either a gain or loss on the sale. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>PENSION AND OTHER POSTRETIREMENT PLANS</B></FONT><FONT size=2>&#151;The Company adopted SFAS No.&nbsp;158, </FONT><FONT size=2><I>Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans</I></FONT><FONT size=2> ("SFAS No.&nbsp;158"), effective December&nbsp;31, 2006, which requires recognition of an asset or liability in the balance sheet reflecting the funded status of pension and other postretirement benefits plans with current-year changes in the funded status recognized in accumulated other comprehensive income. The plan assets are recorded at fair value. The Company recognized a cumulative adjustment to adopt the recognition provisions of SFAS No.&nbsp;158 as of December&nbsp;31, 2006. AES adopted the measurement date provisions </FONT><FONT size=2>of the standard, which require a year-end measurement date of plan assets and obligations for all defined benefit plans, for the fiscal year ended December&nbsp;31, 2008, resulting in a cumulative adjustment to retained earnings of $1&nbsp;million as of December&nbsp;31, 2008. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>MINORITY INTEREST</B></FONT><FONT size=2>&#151;Where the Company's ownership percentage of a consolidated subsidiary is less than 100&nbsp;percent, the minority ownership interests are reported in our Consolidated Balance Sheets as "Minority Interest". The minority ownership interest in our earnings, net of tax, is classified as "Minority interest expense" in our consolidated statements of operations. Although in general, the minority ownership interest in earnings is calculated based on ownership percentage, certain of our wind businesses use the hypothetical liquidation at book value ("HLBV") method in consolidation. HLBV uses a balance sheet approach, which measures equity in income or loss by calculating the change in the amount of net worth partners are legally able to claim based on a liquidation of the entity at the beginning of a reporting period compared to the end of that period. This method is used in AES&nbsp;Wind ventures which contain agreements designating different allocations of value among investors, where the allocations change in form or percentage over the life of the venture. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>FAIR VALUE</B></FONT><FONT size=2>&#151;The Company adopted SFAS No.&nbsp;157, </FONT><FONT size=2><I>Fair Value Measurements</I></FONT><FONT size=2> ("SFAS No.&nbsp;157") for financial assets and liabilities on January&nbsp;1, 2008. SFAS No.&nbsp;157 was applied prospectively, except for changes in fair value of existing derivative financial instruments that include an adjustment for a blockage factor, existing hybrid instruments measured at fair value and financial instruments accounted for in accordance with Emerging Issues Task Force ("EITF") Issue No.&nbsp;02-3, </FONT><FONT size=2><I>Issues Involved in Accounting for Derivative Contracts Held for Trading Purposes and Contracts Involved in Energy Trading and Risk Management Activities</I></FONT><FONT size=2> ("EITF No.&nbsp;02-3"), under which day one gain or loss recognition was prohibited. For these instruments, the impact of the adoption of SFAS No.&nbsp;157 can be recorded as an adjustment to beginning retained earnings in the year of adoption. The Company did not have any of these financial instruments; therefore there is no cumulative impact of the adoption of SFAS No.&nbsp;157 for AES. The adoption of SFAS No.&nbsp;157 did not materially impact the Company's financial condition, results of operations, or cash flows. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company applies SFAS No.&nbsp;157 to determine the fair value of short-term and long-term investments in marketable debt and equity securities, included in the balance sheet line items "Short-term investments" and "Other assets (Noncurrent)", derivative assets, included in "Other current assets" and "Other assets (Noncurrent)" and derivative liabilities, included in "Accrued and other liabilities (current)" and "Other long-term liabilities". Effective January&nbsp;1, 2009, the Company will also apply SFAS No.&nbsp;157 to nonrecurring fair value measurements of nonfinancial assets and liabilities. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair value, as defined in SFAS No.&nbsp;157, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, or exit price. The principal or most advantageous market should be considered from the perspective of the reporting entity. SFAS No.&nbsp;157 requires that the Company reflect the assumptions market participants would use in pricing an asset or liability based on the best information available. Reporting entities are required to consider factors that were not previously measured when determining the fair value of financial instruments. These factors include nonperformance risk (the risk that the obligation will not be fulfilled) and credit risk, both of the reporting entity (for liabilities) and of the counterparty (for assets). Due to the decentralization and nature of derivatives (interest rate swaps) associated with the </FONT><FONT size=2>Company's non-recourse debt, credit risk for AES on such derivatives is assessed at the subsidiary level rather than at the Parent Company level. SFAS No.&nbsp;157 also excludes transaction costs and any adjustments for blockage factors, which were allowable under previous accounting standards, from the instruments' fair value determination. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company uses valuation techniques and methodologies that maximize the use of observable inputs and minimize the use of unobservable inputs. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. The valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments' complexity. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To increase consistency and enhance disclosure of the fair value of financial instruments, SFAS No.&nbsp;157 creates a fair value hierarchy to prioritize the inputs used to measure fair value into three categories. A financial instrument's level within the fair value hierarchy is based on the lowest level of input significant to the fair value measurement, where Level&nbsp;1 is the highest and Level&nbsp;3 is the lowest. The three levels are defined as follows: </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Level&nbsp;1&#151;unadjusted quoted prices in active markets accessible by the reporting entity for identical assets or liabilities. Active markets are those in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Level&nbsp;2&#151;pricing inputs other than quoted market prices included in Level&nbsp;1 that are based on observable market data, that are directly or indirectly observable for substantially the full term of the asset or liability. These include quoted market prices for similar assets or liabilities, quoted market prices for identical or similar assets in markets that are not active, adjusted quoted market prices, inputs from observable data such as interest rate and yield curves, volatilities or default rates observable at commonly quoted intervals or inputs derived from observable market data by correlation or other means. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Level&nbsp;3&#151;pricing inputs that are unobservable, or less observable, from objective sources. Unobservable inputs should only be used to the extent observable inputs are not available. These inputs maintain the concept of an exit price from the perspective of a market participant and should reflect assumptions of other market participants. An entity should consider all market participant assumptions that are available without unreasonable cost and effort. These are given the lowest priority and are generally used in internally developed methodologies to generate management's best estimate of the fair value when no observable market data is available. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fair value of the Company's investments in marketable debt and equity securities is generally based on quoted market prices or other observable market data such as interest rate indices. The Company's marketable investments are primarily certificates of deposit, government debt securities and money market funds. Derivatives are valued using observable data as inputs into internal valuation models. Additional discussion of the Company's investments in marketable debt and equity securities can be found in Note&nbsp;4&#151;Investments in Marketable Securities. The Company's derivatives primarily consist of interest rate swaps, foreign currency instruments, and commodity and embedded derivatives. Additional discussion regarding the nature of these financial instruments and valuation techniques can be found in Note&nbsp;6&#151;Fair Value of Financial Instruments. </FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>2. INVENTORY </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories primarily consist of coal, fuel oil and other raw materials used to generate power, and spare parts and supplies used to maintain power generation and distribution facilities. Most of the Company's inventories are reflected at the lower of cost or market using either the average cost method (81%) or the first-in, first-out ("FIFO") method (17%). The remaining 2% are valued using actual cost and specific identification. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes our inventory balances as of December&nbsp;31, 2008 and 2007: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=313></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>(in millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Coal, fuel oil and other raw materials</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>311</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>236</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Spare parts and supplies</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>263</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>240</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>574</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>476</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>10. LONG-TERM DEBT </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has two types of debt reported on its balance sheet: non-recourse and recourse debt. Non-recourse debt is used to fund investments and capital expenditures for construction and acquisition of our electric power plants, wind farms and distribution companies at our subsidiaries. Non-recourse debt is generally secured by the capital stock, physical assets, contracts and cash flows of the related subsidiary. The default risk is limited to the respective business and is without recourse to the Parent Company and other subsidiaries. Recourse debt is direct borrowings by the Parent Company and is used to fund development, construction or acquisition and serves as equity investments or loans to the affiliates. This debt is with recourse to the Parent Company and is structurally subordinated to the affiliates' non-recourse debt. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recourse and non-recourse debt is carried at amortized cost. The following table summarizes the carrying amount and estimated fair values of the Company's recourse and non-recourse debt as of December&nbsp;31, 2008 and 2007: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=279></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Carrying<BR>Amount </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Fair<BR>Value </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Carrying<BR>Amount </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Fair<BR>Value </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Non-recourse debt</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12,943</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11,200</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12,435</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12,043</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Recourse debt</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,148</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,388</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,555</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,648</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total debt</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18,091</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>15,588</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>17,990</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>17,691</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fair value of non-recourse debt, excluding capital leases, is estimated differently based upon the type of loan. For fixed rate loans, the fair value is estimated using quoted market prices or a discounted cash flow analysis. For variable rate loans, we reported that carrying value approximated fair value in 2007, as the average credit spread of AES' portfolio of variable rate notes was equivalent to the spread between LIBOR and the appropriate current yields. In late 2008, credit spreads increased significantly above historic levels. For the USD, Euro and British Pound markets where we believe the credit spread expansion is material, fair value was estimated using a discounted cash flow analysis. The increase in credit spreads was calculated as the difference between composite fair value curves published by pricing services for the appropriate issuer credit rating and LIBOR. For remaining currencies, we continue to report carrying value is equal to fair value. The estimated fair value was determined using available market information as of December&nbsp;31, 2008 and 2007. The Company is not aware of any factors that would significantly affect the estimated fair value amounts since December&nbsp;31, 2008. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><B>NON-RECOURSE DEBT </B></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the non-recourse debt of the Company as of December&nbsp;31, 2008 and 2007: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=274></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=23></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=40></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times" rowSpan=2><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5 rowSpan=2><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times" rowSpan=2><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2 rowSpan=2><FONT size=1><B>Interest Rate<SUP>(1)</SUP> </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 144pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>NON-RECOURSE DEBT <!-- COMMAND=ADD_SCROPPEDRULE,144pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Maturity </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>VARIABLE RATE:<SUP>(2)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Bank loans</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4.10</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2009-2026</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,401</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,809</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Notes and bonds<SUP>(3)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16.48</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2010-2041</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,844</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,550</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Debt to (or guaranteed by) multilateral, export credit agencies or development banks<SUP>(4)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5.89</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2009-2027</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,093</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>995</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8.96</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2009-2028</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>524</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>212</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>FIXED RATE:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Bank loans</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8.48</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2009-2023</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>426</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>327</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Notes and bonds</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8.06</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2010-2037</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,197</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,244</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Debt to (or guaranteed by) multilateral, export credit agencies or development banks<SUP>(4)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6.75</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2009-2013</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>393</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7.21</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2009-2033</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>65</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>291</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>SUBTOTAL</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12,943</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12,435</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2><SUP>(5)</SUP></FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Less: Current maturities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,074</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,142</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>TOTAL</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11,869</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11,293</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Weighted average interest rate at December&nbsp;31, 2008. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(2)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>The Company has interest rate swaps and interest rate option agreements in an aggregate notional principal amount of approximately $3.6&nbsp;billion on non-recourse debt outstanding at December&nbsp;31, 2008. The swap agreements economically change the variable interest rates on the portion of the debt covered by the notional amounts to fixed rates ranging from approximately 1.93%&nbsp;to 7.00%. The option agreements fix interest rates within a range from 4.50%&nbsp;to 7.00%. The agreements expire at various dates from 2009 through 2027. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(3)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Variable rate notes and bonds consist of approximately $1.7&nbsp;billion of debt issued by our Brazilian subsidiaries with a weighted average interest rate of 16.84% at December&nbsp;31, 2008, and $132&nbsp;million of auction rate bonds issued by IPL. These auction rate bonds have paid the penalty rate of 12% since late September&nbsp;2008 due to failed auctions of these securities. Subsequent to December&nbsp;31, 2008 IPL's auction rate bonds were able to be remarketed at rates lower than these penalty rates. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(4)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Multilateral loans include loans funded and guaranteed by bilaterals, multilaterals, development banks and other similar institutions.&nbsp;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2><B>&nbsp;</B></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(5)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Ekibastuz and Maikuben debt of $164&nbsp;million and Jiaozuo debt of $3&nbsp;million as of December&nbsp;31, 2007 are excluded from non-recourse debt and are included in current and long-term liabilities of held for sale and discontinued businesses in the accompanying Consolidated Balance Sheets. </FONT></DD></DL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Future principal payments on non-recourse debt as of December&nbsp;31, 2008 are set forth in the table below: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=321></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=40></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 45pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>December&nbsp;31, <!-- COMMAND=ADD_SCROPPEDRULE,45pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Annual<BR>Maturities </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,074</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2010</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>955</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2011</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,079</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2012</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>762</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2013</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>955</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Thereafter</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8,118</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total long-term debt</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12,943</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2008, AES subsidiaries in operations had approximately $1.1&nbsp;billion of a number of available but unused committed revolving credit lines to support their working capital, debt service reserves and other business needs. These credit lines can be used in one or more of the following ways: solely for borrowings; solely for letters of credit; or a combination of these uses. The weighted average interest rate on borrowing from these facilities was 11.54% at December&nbsp;31, 2008. In addition to the committed credit lines described above, an operating subsidiary of the Company in Brazil had credit commitments from banks to lend up to $856&nbsp;million at December&nbsp;31, 2008. This credit commitment is subject to certain conditions and can only be used if the Company decides to exercise its preemptive rights to acquire the minority interest shares of Brasiliana held by a third-party in response to a decision by the partner to sell and exercise its preemptive rights to include our ownership portion in the sale. In addition to the credit lines described above, AES subsidiaries with facilities under construction had a total of approximately $2.0&nbsp;billion of committed but unused credit facilities available to fund construction and other related costs. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><I>Non-Recourse Debt Covenants, Restrictions and Defaults </I></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms of the Company's non-recourse debt include certain financial and non-financial covenants. These covenants are limited to subsidiary activity and vary among the subsidiaries. These covenants may include but are not limited to maintenance of certain reserves, minimum levels of working capital and limitations on incurring additional indebtedness. Compliance with certain covenants may not be objectively determinable. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2008 and 2007, approximately $697&nbsp;million and $614&nbsp;million, respectively, of restricted cash was maintained in accordance with certain covenants of the debt agreements, and these amounts were included within restricted cash and debt service reserves and other deposits in the accompanying Consolidated Balance Sheets. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Various lender and governmental provisions restrict the ability of the Company's subsidiaries to transfer their net assets to the Parent Company. Such restricted net assets of subsidiaries amounted to approximately $5&nbsp;billion at December&nbsp;31, 2008. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the Company's subsidiary non-recourse debt in default as of December&nbsp;31, 2008 and is included in the current portion of non-recourse debt unless otherwise indicated: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=223></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=57></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=22></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=33></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times" rowSpan=2><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5 rowSpan=2><FONT size=1><B>December&nbsp;31, 2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times" rowSpan=2><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle rowSpan=2><FONT size=1><B>Primary Nature<BR>of Default </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 38pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>Subsidiary <!-- COMMAND=ADD_SCROPPEDRULE,38pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Default </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Net Assets </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Aixi</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>Payment</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Kelanitissa</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>Covenant</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>50</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Kilroot</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>Covenant</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>77</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>178</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>129</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None of the subsidiaries that are currently in default is a material subsidiary under AES's corporate debt agreements whose acceleration of debt or bankruptcy would trigger an event of default or permit acceleration under such indebtedness. At December&nbsp;31, 2008 none of our subsidiaries met the definition of material subsidiary under our recourse secured and unsecured bond indentures and our unsecured line of credit. All of the subsidiary guarantors under our recourse secured credit facilities are defined as material subsidiaries under that agreement. The bankruptcy or acceleration of material amounts of debt at these entities would cause a cross default under the recourse secured credit facilities. The subsidiary guarantors include the subsidiaries which own AES&nbsp;Eastern Energy, AES&nbsp;Warrior Run, AES&nbsp;Shady Point and AES&nbsp;Hawaii. However, as a result of additional dispositions of assets, other significant reductions in asset carrying values or other matters in the future that may impact our financial position and results of operations or the financial position or results of the individual subsidiary, it is possible that one or more of these subsidiaries could fall within the definition of a "material subsidiary" and thereby upon a bankruptcy or acceleration of its non-recourse debt trigger an event of default and possible acceleration of the indebtedness under the AES Parent Company's outstanding debt securities. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sonel, our subsidiary in Cameroon, and Masinloc, our subsidiary in the Philippines, were in default on total non-recourse debt of $217&nbsp;million and $598&nbsp;million, respectively, at December&nbsp;31, 2008 due to covenant breaches. Subsequent to December&nbsp;31, 2008, both subsidiaries were able to amend the terms of their respective debt agreements and are no longer considered in default, therefore the debt was appropriately classified as long-term at December&nbsp;31, 2008 and was excluded from the debt default table above. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><B>RECOURSE DEBT </B></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the recourse debt of the Company as of December&nbsp;31, 2008 and 2007: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=238></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=76></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=27></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left colSpan=2> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 69pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>RECOURSE DEBT <!-- COMMAND=ADD_SCROPPEDRULE,69pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle><FONT size=1><B>Interest Rate </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Maturity </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Senior Unsecured Note</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>8.75%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2008</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Term Convertible Trust Securities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>6.00%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2008</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>214</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Senior Unsecured Note</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>9.50%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2009</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>154</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>467</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Senior Unsecured Note</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>9.375%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2010</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>214</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>423</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Senior Secured Term Loan</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>LIBOR&nbsp;+&nbsp;1.75%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2011</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>200</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>200</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Senior Unsecured Note</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>8.875%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2011</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>129</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>307</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Senior Unsecured Note</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>8.375%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2011</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>124</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>171</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Second Priority Senior Secured Note</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>8.75%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2013</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>690</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>752</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Senior Unsecured Note</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>7.75%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2014</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>500</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>500</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Senior Unsecured Note</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>7.75%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2015</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>500</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>500</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Senior Unsecured Note</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>8.00%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2017</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,500</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,500</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Senior Unsecured Note</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>8.00%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2020</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>625</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Term Convertible Trust Securities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>6.75%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2029</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>517</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>517</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Unamortized discounts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>SUBTOTAL</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,148</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,555</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Less: Current maturities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(154</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(223</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,994</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,332</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Future principal payments on recourse debt as of December&nbsp;31, 2008 are set forth in the table below: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=301></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=61></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 45pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>December&nbsp;31, <!-- COMMAND=ADD_SCROPPEDRULE,45pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" noWrap align=middle colSpan=2> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 65pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>Annual Maturities <!-- COMMAND=ADD_SCROPPEDRULE,65pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>154</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2010</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>214</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2011</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>453</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2012</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2013</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>690</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Thereafter</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,637</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total long-term debt</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,148</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2><I>Financing and Tender Offer </I></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the second quarter of 2008, the Company completed a number of debt-related transactions that resulted in a net reduction of approximately $360&nbsp;million in aggregate principal of recourse debt. These transactions, described in further detail below, included $223&nbsp;million of debt paid at maturity, the </FONT><FONT size=2>repurchase of the $762&nbsp;million of senior notes maturing from 2009&nbsp;to 2013 that were tendered in the Company's publicly announced tender offer, and the issuance of $625&nbsp;million of 8%&nbsp;Senior Unsecured Notes due 2020 at par value. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The notes repaid at maturity included $223&nbsp;million outstanding 6.0%&nbsp;Junior Subordinated Convertible Debentures due May&nbsp;15, 2008 and 8.75%&nbsp;Senior Unsecured Notes due June&nbsp;15, 2008. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;15, 2008, we issued $625&nbsp;million of 8%&nbsp;Senior Unsecured&nbsp;Notes due 2020 at par&nbsp;value. Deferred financing costs attributable to the issuance of these senior notes were approximately $10&nbsp;million. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June&nbsp;19, 2008 the Company repurchased $762&nbsp;million aggregate principal of senior notes maturing from 2009 to 2013 in connection with its publicly announced tender offer. Specifically, the Company repurchased $313&nbsp;million of the 9.50%&nbsp;Senior&nbsp;Notes due 2009, (the "2009&nbsp;Notes"), $209&nbsp;million of the 9.375%&nbsp;Senior&nbsp;Notes due 2010 (the "2010&nbsp;Notes"), $178&nbsp;million of the 8.875%&nbsp;Senior&nbsp;Notes due 2011 (the "2011&nbsp;Notes"), and $62&nbsp;million of the 8.75% Second Priority Senior Secured&nbsp;Notes due 2013 (the "2013&nbsp;Notes"). The Company recognized and included a pre-tax loss on the retirement of the senior notes for the year ended December&nbsp;31, 2008 of $55&nbsp;million, in "Other expense" which included $52&nbsp;million of tender consideration. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the tender offer for the senior notes in 2008, the Company solicited and received consents from the remaining holders of the 2013&nbsp;Notes to amend the related indenture to conform substantially all of the covenants, except those related to security, to those contained in the indenture governing the Company's senior unsecured notes. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><I>Amendment of Credit Agreement </I></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On July&nbsp;29, 2008, The AES Corporation and certain subsidiary guarantors amended and restated the Company's existing senior secured bank facility ("Bank Facility") pursuant to the terms of the Fourth Amended and Restated Credit and Reimbursement Agreement (the "Amended and Restated Credit Agreement"). The Amended and Restated Credit Agreement provides for a $200&nbsp;million senior secured term loan ("Term Loan") maturing on August&nbsp;10, 2011, and a Revolving Credit Facility ("the Revolver") with available borrowings up to $750&nbsp;million, maturing on June&nbsp;23, 2010. The Amended and Restated Credit Agreement is included as an exhibit to this Form&nbsp;10-K. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company entered into the Amended and Restated Credit Agreement primarily to accomplish the following: (i)&nbsp;increase the size of the Restricted Payments basket to allow the Company to repurchase or pay dividends on equity; (ii)&nbsp;reduce the required minimum Cash Flow Coverage Ratio (as defined therein) and increase the maximum Recourse Debt to Cash Flow Ratio (as defined therein); (iii)&nbsp;clarify and make modifications to the provisions that permit hedging activities; and (iv)&nbsp;make certain other changes, such as excluding certain equity-like securities from the definition of Recourse Debt, amending the financial reporting and environmental notice requirements, clarifying that the term "Permitted Business" includes climate solutions, carbon offsets, biofuels, battery storage and ancillary businesses, including related trading activities and amending certain other definitions and covenants. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2008, the Revolving Credit Facility accrued interest at LIBOR plus 1.5% and there were no outstanding borrowings against the Revolving Credit Facility. The Company had $30&nbsp;million of letters of credit outstanding against the Revolving Credit Facility and $720&nbsp;million was available under the Revolving Credit Facility. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company's senior unsecured credit facility ("Credit Facility") had available borrowings of $423&nbsp;million. At December&nbsp;31, 2008, the Company had no outstanding borrowings under the Credit Facility. The Company had $177&nbsp;million of letters of credit outstanding against the Credit Facility as of December&nbsp;31, 2008. The Credit Facility, which accrues interest at a variable rate indexed to LIBOR and matures in 2010, is being used to support the Company's ongoing share of construction obligations for AES&nbsp;Maritza East&nbsp;1 and for general corporate purposes. AES&nbsp;Maritza East&nbsp;1 is a coal-fired generation project in Bulgaria that began construction in the second quarter of 2006 and is expected to commence operations in 2010. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><I>Recourse Debt Covenants and Guarantees </I></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain of the Company's obligations under the Bank Facilities are guaranteed by its direct subsidiaries through which the Company owns its interests in the Shady Point, Hawaii, Warrior Run and Eastern Energy businesses. The Company's obligations under the Bank Facility and Second Priority Senior Secured&nbsp;Notes are, subject to certain exceptions, secured by: </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;all of the capital stock of domestic subsidiaries owned directly by the Company and 65% of the capital stock of certain foreign subsidiaries owned directly or indirectly by the Company; and </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;certain intercompany receivables, certain intercompany notes and certain intercompany tax sharing agreements. </FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank Facility is subject to mandatory prepayment under certain circumstances. The net cash proceeds from the sale of a Guarantor or any of its subsidiaries must be applied pro rata to repay the Term Loan using 60% of net cash proceeds, reduced to 50% when and if the parent's recourse debt to cash flow ratio is less than&nbsp;5:1. The lenders have the option to waive their pro rata redemption. In the case of sales of assets of or equity interests in IPALCO or any of its subsidiaries, any net cash proceeds of the asset sale remaining after application to the Term Loan facility must be used to reduce commitments under the Revolver, unless the supermajority of banks otherwise agree or unless the facilities are rated at least Ba1 from Moody's and AES' corporate credit rating from S&amp;P is at least BB-. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank Facility contains customary covenants and restrictions on the Company's ability to engage in certain activities, including, but not limited to, limitations on other indebtedness, liens, investments and guarantees; limitations on restricted payments such as shareholder dividends and equity repurchases; restrictions on mergers and acquisitions, sales of assets, leases, transactions with affiliates and off-balance sheet or derivative arrangements; and other financial reporting requirements. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank Facility also contains financial covenants requiring the Company to maintain certain financial ratios including a cash flow to interest coverage ratio, calculated quarterly, which provides that a minimum ratio of the Company's adjusted operating cash flow to the Company's interest charges </FONT><FONT size=2>related to recourse debt of 1.3&#215; must be maintained at all times and a recourse debt to cash flow ratio, calculated quarterly, which provides that the ratio of the Company's total recourse debt to the Company's adjusted operating cash flow must not exceed a maximum of 8.0&#215; at any time of calculation. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms of the Company's Senior Unsecured&nbsp;Notes, Credit Facility, and Second Priority Secured&nbsp;Notes contain certain covenants including, without limitation, limitation on the Company's ability to incur liens or enter into sale and leaseback transactions. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><B>TERM CONVERTIBLE TRUST SECURITIES </B></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 1999, AES&nbsp;Trust&nbsp;III, a wholly owned special purpose business trust, issued 9&nbsp;million of $3.375&nbsp;Term Convertible Preferred Securities ("TECONS") (liquidation value $50) for total proceeds of approximately $518&nbsp;million and concurrently purchased approximately $518&nbsp;million of 6.75%&nbsp;Junior Subordinated Convertible Debentures due 2029 (the "6.75%&nbsp;Debentures" of the Company). The TECONS are consolidated and classified as long-term recourse debt on the Company's balance sheet. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AES, at its option, can redeem the 6.75%&nbsp;Debentures which would result in the required redemption of the TECONS issued by AES&nbsp;Trust&nbsp;III, currently for $50 per TECON. The TECONS must be redeemed upon maturity of the Junior Subordinated Debentures. The TECONS are convertible into the common stock of AES at each holder's option prior to October&nbsp;15, 2029 at the rate of 1.4216, representing a conversion price of $35.17 per share. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends on the TECONS are payable quarterly at an annual rate of 6.75%. The Trust&nbsp;is permitted to defer payment of dividends for up to 20&nbsp;consecutive quarters, provided that the Company has exercised its right to defer interest payments under the corresponding debentures or notes. AES has not exercised the option to defer any dividends at this time. During such deferral periods, dividends on the TECONS would accumulate quarterly and accrue interest, and the Company may not declare or pay dividends on its common stock. All dividends due under the Trust&nbsp;have been paid. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AES&nbsp;Trust&nbsp;III is a VIE under FIN No.&nbsp;46(R). AES's obligations under the Junior Subordinated Debentures and other relevant trust agreements, in aggregate, constitute a full and unconditional guarantee by AES of the TECON Trusts' obligations under the trust securities issued the respective trust. Accordingly, AES consolidates the results of AES&nbsp;Trust&nbsp;III. As of December&nbsp;31, 2008 and 2007, the sole assets of AES&nbsp;Trust&nbsp;III are the Junior Subordinated Debentures. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2000, AES&nbsp;Trust&nbsp;VII, a wholly owned special purpose business trust and a VIE under FIN No.&nbsp;46(R), issued 9.2&nbsp;million of $3.00 TECONS (liquidation value $50) for total proceeds of approximately $460&nbsp;million and concurrently purchased approximately $460&nbsp;million of 6%&nbsp;Junior Subordinated Convertible Debentures due 2008 (the "6%&nbsp;Debentures"). In May&nbsp;2008, the Company used a portion of the proceeds from the issuance of its 8%&nbsp;Senior Unsecured&nbsp;Notes due 2020 to redeem the 6%&nbsp;Debentures and AES&nbsp;Trust&nbsp;VII was dissolved. At December&nbsp;31, 2007, the sole assets of AES&nbsp;Trust&nbsp;VII were the 6%&nbsp;Debentures. </FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>23. EARNINGS PER SHARE </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted earnings per share are based on the weighted average number of shares of common stock and potential common stock outstanding during the period, after giving effect to stock splits. Potential common stock, for purposes of determining diluted earnings per share, includes the effects of dilutive stock options, warrants, deferred compensation arrangements, and convertible securities. The effect of such potential common stock is computed using the treasury stock method or the if-converted method, as applicable. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for income from continuing operations. In the table below, income represents the numerator (in&nbsp;millions) and shares represent the denominator (in&nbsp;millions): </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=8></TD> <TD style="FONT-FAMILY: times" width=124></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=23></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=21></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=39></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=23></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=21></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=39></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=23></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=21></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=39></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>December&nbsp;31, 2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>December&nbsp;31, 2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>December&nbsp;31, 2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Income </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Shares </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>$ per<BR>Share </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Income </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Shares </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>$ per<BR>Share </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Income </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Shares </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>$ per<BR>Share </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1>BASIC EARNINGS PER SHARE</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1>Income from continuing operations</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>1,216</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>669</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>1.82</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>487</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>668</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>0.73</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>168</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>661</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>0.25</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1>EFFECT OF DILUTIVE SECURITIES</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1>Convertible securities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>22</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>15</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(0.02</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1>Stock options and warrants</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>9</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(0.01</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>10</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1>Restricted stock units</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1>DILUTIVE EARNINGS PER SHARE</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>1,238</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>689</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>1.80</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>487</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>678</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>0.72</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>168</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>672</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>0.25</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The calculation of diluted earnings per share excluded 11,150,853, 5,740,727 and 5,164,492 options outstanding at December&nbsp;31, 2008, 2007 and 2006, respectively, that could potentially dilute basic earnings per share in the future. Those options were not included in the computation of diluted earnings per share because the exercise price of those options exceeded the average market price during the related period. In 2008, all convertible debentures were included in the earnings per share calculation. In 2007 and 2006, all convertible debentures were omitted from the earnings per share calculation because they were antidilutive. </FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>18. OTHER INCOME AND EXPENSE </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The components of other income are summarized as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=281></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>Years Ended December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Contract settlement gain</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>135</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Gross receipts tax recovery</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>93</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Legal/dispute settlement</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>39</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>26</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Gain on sale of assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>34</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>24</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Gain on extinguishment of liabilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>199</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>22</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>45</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Insurance proceeds</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>40</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>30</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>67</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>40</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>22</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total other income</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>379</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>358</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>116</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income primarily includes gains on asset sales and extinguishments of liabilities, favorable judgments on legal settlements, and other income from miscellaneous transactions. Other income of $379&nbsp;million for the year ended December&nbsp;31, 2008 included $32&nbsp;million of cash proceeds related to a favorable legal settlement at Southland in California, $23&nbsp;million of gains associated with a sale of land at Eletropaulo and sales of turbines at Itabo, gains on the extinguishment of a tax liability and a legal contingency at Eletropaulo of $117&nbsp;million and $75&nbsp;million, respectively, $29&nbsp;million of insurance recoveries for damaged turbines at Uruguaiana, and compensation of $18&nbsp;million for the impairment associated with the settlement agreement to shut down Hefei. Other income of $358&nbsp;million for the year ended December&nbsp;31, 2007 included a $135&nbsp;million contract settlement gain at Eastern Energy, a $93&nbsp;million gross receipts tax recovery at Eletropaulo and Tiete and $25&nbsp;million from favorable legal settlements totaling $25&nbsp;million at Eletropaulo and Red Oak in New Jersey. Other income of $116&nbsp;million for the year ended December&nbsp;31, 2006 included debt retirement gains at several of our businesses in Latin America. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The components of other expense are summarized as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=281></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>Years Ended December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Loss on extinguishment of liabilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>70</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>106</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>181</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Regulatory special obligations</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>139</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Loss on sale and disposal of assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>34</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>79</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>23</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Legal/dispute settlement</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>19</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>36</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>31</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Write-down of disallowed regulatory assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>36</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>40</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>41</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total other expense</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>163</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>255</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>451</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expense primarily includes losses on asset sales and extinguishment of liabilities, charges from legal disputes, mark to market adjustments on commodity derivatives and losses from other miscellaneous transactions. Other expense of $163&nbsp;million for the year ended December&nbsp;31, 2008 included $69&nbsp;million of losses on the retirement of debt at the Parent Company in connection with the refinancing in June&nbsp;2008, as further discussed in Note&nbsp;10&#151;Long&nbsp;Term Debt, and IPALCO associated with a $375&nbsp;million refinancing in April&nbsp;2008, and losses on disposal of assets primarily at Eletropaulo in Brazil. Other expense of $255&nbsp;million for the year ended December&nbsp;31, 2007 included a loss of $90&nbsp;million on the retirement of senior secured notes at the Parent Company, a $28&nbsp;million increase in legal reserves in Kazakhstan and losses on the sale and disposal of assets at Eletropaulo and Sul. Other expense of $451&nbsp;million for the year ended December&nbsp;31, 2006 included losses on the early extinguishment of debt at several of our Latin American businesses and a loss of $37&nbsp;million on the retirement of debt at the Parent Company. Other expense also included special obligation charges and a provision for recoverability of regulatory assets at Eletropaulo. </FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>7. INVESTMENTS IN AND ADVANCES TO AFFILIATES </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the relevant effective equity ownership interest and carrying values for the Company's investments accounted for under the equity method as of December&nbsp;31, 2008 and 2007. </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=232></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=75></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Carrying Value </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Ownership Interest&nbsp;% </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left colSpan=3> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 28pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>Affiliate <!-- COMMAND=ADD_SCROPPEDRULE,28pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle><FONT size=1><B>Country </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>AES Solar&nbsp;Ltd</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>United States</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>126</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>50</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Barry<SUP>(1)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>United Kingdom</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>100</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>100</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Cartagena<SUP>(1)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>Spain</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>34</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>71</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>71</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>CEMIG</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>Brazil</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Chigen affiliates</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>China</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>179</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>204</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>27</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>27</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Elsta</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>Netherlands</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>138</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>126</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>50</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>50</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Guacolda</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>Chile</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>81</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>67</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>35</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>40</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Huanghua</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>China</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>36</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>49</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>49</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>IC Ictas Energy Group</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>Turkey</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>94</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>78</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>51</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>51</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>InnoVent</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>France</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>37</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>28</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>40</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>40</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>OPGC</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>India</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>192</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>223</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>49</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>49</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Trinidad Generation Unlimited<SUP>(1)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>Trinidad</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>60</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other affiliates</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>United States</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>901</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>768</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Less: Affiliate loan receivables included above<SUP>(2)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(38</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total investments in and advances to affiliates</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>901</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>730</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Represent VIEs in which we hold a significant variable interest. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(2)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Represents participative loan receivable with Cartagena, included in the Receivable from Affiliates line item in the Consolidated Balance Sheets, that absorbs the Company's share of equity method losses as a result of the initial equity investment having been reduced to zero. </FONT></DD></DL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B><I>AES Barry&nbsp;Ltd.&#151;</I></B></FONT><FONT size=2>The Company holds a 100% ownership interest in AES Barry&nbsp;Ltd. ("Barry"), a 230&nbsp;MW gas-fired combined cycle power plant in the United Kingdom. As a result of a debt agreement, no material financial or operating decisions can be made without the banks' consent, and the Company does not control Barry. As of December&nbsp;31, 2008 and 2007 other long-term liabilities included $49&nbsp;million and $74&nbsp;million, respectively, related to this debt agreement. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B><I>Cartagena Energia&#151;</I></B></FONT><FONT size=2>The Company owns 71% of Cartagena Energia ("Cartagena") a 1200&nbsp;MW power plant in Cartagena, Spain completed in November 2006. The Company's initial investment in Cartagena was approximately $29&nbsp;million. Cartagena was determined to be a VIE and the Company is not the primary beneficiary due to the fact that the sole customer of the plant absorbs the majority of the commodity price risk. In December&nbsp;2008, the Company's basis in its investment in Cartagena was reduced to zero and the equity method of accounting was suspended. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B><I>CEMIG&#151;</I></B></FONT><FONT size=2>The Company is a party to a joint venture/consortium agreement through which the Company has a 9.6%&nbsp;equity interest in Companhia Energetica&nbsp;de Minas Gerais ("CEMIG"), an integrated utility in Minas Gerais, Brazil. Although our interest in CEMIG is below the 20%&nbsp;threshold for significant influence, AES has significant influence over the operational and financial policies of CEMIG through representation on the board of directors of CEMIG. In 2002, the Company determined there was an other-than-temporary impairment of its investment in CEMIG and wrote it down to fair market value, $155&nbsp;million. Additionally, AES established a valuation allowance against a deferred tax asset related to the CEMIG investment. The total amount of these charges, net of tax, was $587&nbsp;million. As a result, the Company's investment in CEMIG, is a $484&nbsp;million net liability at December&nbsp;31, 2008 included in the Other Long-Term Liabilities line item on the Consolidated Balance Sheets. The Company has discontinued the application of the equity method in accordance with its accounting policy regarding equity method investments. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B><I>AES&nbsp;Solar Energy&nbsp;Ltd.</I></B></FONT><FONT size=2>&#151;In March&nbsp;2008, the Company formed AES&nbsp;Solar Energy&nbsp;Ltd ("AES&nbsp;Solar"), a joint venture with Riverstone Holdings&nbsp;LLC ("Riverstone"). AES&nbsp;Solar will develop land-based solar photovoltaic panels that capture sunlight to convert into electricity that feed directly into power grids. AES&nbsp;Solar is accounted for under the equity method of accounting based on the Company's 50%&nbsp;ownership and significant influence but not control over the joint venture. Under the terms of the agreement, the Company and Riverstone will each provide up to $500&nbsp;million of capital over the next five years. As of December&nbsp;31, 2008, AES had invested approximately $135&nbsp;million in the joint venture. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B><I>Guohua AES (Huanghua) Wind Power&nbsp;Co.,&nbsp;Ltd</I></B></FONT><FONT size=2>&#151;In May&nbsp;2007, the Company acquired a 49%&nbsp;interest in Guohua AES (Huanghua) Wind Power&nbsp;Co.,&nbsp;Ltd. ("AES&nbsp;Huanghua"), a joint venture that is primarily engaged to develop, construct, own and operate wind farms in China. In the third quarter of 2008, the Company also acquired a 49%&nbsp;interest in three separate wind farm projects in China&#151;Guohua&nbsp;AES ("Hulunbeier") Wind Power&nbsp;Co.,&nbsp;Ltd.; Guohua&nbsp;AES ("Chenba'erhu") Wind Power&nbsp;Co.,&nbsp;Ltd.; and Guohua&nbsp;AES ("Xinba'erhu") Wind Power&nbsp;Co.,&nbsp;Ltd. The Company has invested approximately $20&nbsp;million in the projects to date. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B><I>Trinidad Generation Unlimited</I></B></FONT><FONT size=2>&#151;In 2007, the Company began pursuing a development project to construct and operate a 720&nbsp;MW combined cycle power plant in Trinidad through its wholly owned subsidiary, Trinidad Generation Unlimited ("TGU.") In July&nbsp;2008, a shareholder agreement was executed establishing the Company's ownership interest in TGU at 60% with the remaining 40% interest held by the Government of Trinidad and Tobago. AES is not considered the primary beneficiary of TGU. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><I>Summarized Financial Information </I></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following tables summarize financial information of the Company's 50%-or-less owned affiliates and majority-owned unconsolidated subsidiaries that are accounted for using the equity method. </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=233></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=19></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>50%-or-less Owned Affiliates </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>Majority-Owned Unconsolidated Subsidiaries </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 90pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>Years ended December&nbsp;31, <!-- COMMAND=ADD_SCROPPEDRULE,90pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006<SUP>(1)</SUP> </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Revenues</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,180</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>988</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>938</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>170</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>145</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Gross margin</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>274</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>255</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>275</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>61</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>57</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net income (loss)</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>83</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>194</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>202</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(17</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(22</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=233></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=19></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 45pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>December&nbsp;31, <!-- COMMAND=ADD_SCROPPEDRULE,45pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Current assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>734</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>541</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>222</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>146</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Noncurrent assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,626</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,995</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,297</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,164</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Current liabilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>563</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>278</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>181</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>267</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Noncurrent liabilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,264</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,005</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,072</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,015</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Minority interest</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(163</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(132</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(26</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(14</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Stockholders' equity</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,696</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,385</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>292</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>42</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Includes information pertaining to Kingston Cogeneration Limited Partnership through March&nbsp;2006 and U.S.&nbsp;Wind Force&nbsp;LLC through December&nbsp;2006, the respective disposition dates, and Itabo through May&nbsp;2006, at which time it became a consolidated subsidiary as a result of the Company's purchase of an additional 25%&nbsp;interest in Itabo. Upon consolidation of Itabo, the Company recognized an extraordinary gain of $21&nbsp;million. </FONT></DD></DL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2008, retained earnings included $137&nbsp;million related to the undistributed earnings of affiliates. Distributions received from affiliates were $50&nbsp;million, $59&nbsp;million and $44&nbsp;million for the years ended December&nbsp;31, 2008, 2007 and 2006, respectively. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Refer to Item&nbsp;1 of this Form&nbsp;10-K for additional information on these affiliates. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2></FONT>&nbsp;</P> <P style="FONT-FAMILY: times"><FONT size=2></FONT>&nbsp;</P> <P style="FONT-FAMILY: times"><FONT size=2></FONT>&nbsp;</P> <P style="FONT-FAMILY: times"><FONT size=2></FONT>&nbsp;</P> <P style="FONT-FAMILY: times"><FONT size=2></FONT>&nbsp;</P> <P style="FONT-FAMILY: times"><FONT size=2></FONT>&nbsp;</P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>21. DISCONTINUED OPERATIONS AND HELD FOR SALE BUSINESSES </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the income (loss) on disposal and impairment for the following discontinued operations for the years ended December&nbsp;31, 2008, 2007 and 2006: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=283></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=20></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 38pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>Subsidiary <!-- COMMAND=ADD_SCROPPEDRULE,38pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Central Valley</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>20</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>EDC</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(680</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Eden</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(62</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Indian Queens</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Jiaozuo</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Gain (loss) on disposal and impairment, after taxes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(661</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(57</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December&nbsp;2008, the Company reached an agreement to sell its 70% equity interest in Jiaozuo AES&nbsp;Wanfang Power&nbsp;Co.,&nbsp;Ltd. ("Jiaozuo"), which is reported in the Asia Generation segment, for approximately $73&nbsp;million net of any withholding taxes. The AES Board of Directors approved the sale of Jiaozuo which closed on December&nbsp;15, 2008 and the Company recognized a gain on the sale of approximately $7&nbsp;million. Goodwill of $4&nbsp;million was written off in connection with the gain on sale. This gain is included in the 2008 Gain (loss) from disposal of discontinued businesses line item on the consolidated Statement of Operations for the year ended December&nbsp;31, 2008. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;22, 2007, the Company entered into a definitive agreement with Petr&#243;leos de Venezuela,&nbsp;S.A., ("PDVSA") to sell all of its shares of EDC, a distribution business reported in the Latin America Utilities segment, for $739&nbsp;million net of any withholding taxes. In addition, the agreement provided for the payment of a $120&nbsp;million dividend in 2007 which was declared on March&nbsp;1, 2007 payable to the EDC shareholders of record as of March&nbsp;9, 2007. A wholly-owned subsidiary of the Company was the owner of 82.14% of the outstanding shares of EDC, and therefore, on May&nbsp;31, 2007, received approximately $97&nbsp;million in dividends (representing approximately $99&nbsp;million in gross dividends offset by fees). The sale of EDC and the payment of the purchase price occurred on May&nbsp;16, 2007. EDC is classified as "discontinued operations" and reflected as such on the face of the Consolidated Financial Statements for all periods presented. During the first quarter of 2007, the Company recognized an impairment charge of approximately $638&nbsp;million related to this sale. As a result of the final disposition of EDC in May&nbsp;2007, the Company recognized an additional impairment charge of approximately $42&nbsp;million, net of income and withholding taxes. The total impairment charge of $680&nbsp;million represented the net book value of the Company's investment in EDC less the selling price. The Company impaired the carrying value of EDC's electric generation and distribution assets to their net realizable value. The impairment expense was included in the loss from disposal of discontinued businesses line item on the Consolidated Statement of Operations for the year ended December&nbsp;31, 2007. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In July&nbsp;2007, the Company's wholly-owned subsidiary, Central Valley, sold 100% of its indirect interest in two biomass fired power plants located in central California (the 50&nbsp;MW Delano facility and the 25&nbsp;MW Mendota facility) for $51&nbsp;million. These facilities, along with an associated management company (together, the "Central Valley Businesses") were included in the North America Generation segment. Central Valley is classified as "discontinued operations" in the Company's Consolidated Financial Statements for all periods presented. The Company recognized a gain on the sale of approximately $20&nbsp;million net of income and withholding taxes. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In May&nbsp;2006, the Company reached an agreement to sell 100% of its interest in Eden, a Latin America utility business located in Argentina. Therefore, Eden a wholly-owned subsidiary of AES, was classified as "held for sale" and reflected as such on the Consolidated Financial Statements. In 2006, the Company recognized a $62&nbsp;million impairment charge to adjust the carrying value of Eden's assets to their estimated net realizable value. The impairment expense is included in the 2006 loss from disposal of discontinued businesses line item on the financial statements for the year ended December&nbsp;31, 2007. The Buenos Aires Province in Argentina approved the transaction in May&nbsp;2007. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In September&nbsp;2006, the Company completed the sale of AES Indian Queens Power Limited and AES Indian Queens Operations Limited, collectively "IQP", which was part of the Europe&nbsp;&amp; Africa Generation segment. IQP is an Open Cycle Gas Turbine, located in the U.K. Proceeds from the sale were $28&nbsp;million in cash and the buyer assumed $30&nbsp;million of IQP's debt. The Company recognized a gain on disposal of discontinued businesses of $5&nbsp;million in 2006. The results of operations of IQP and the associated gain on disposal are reflected in the discontinued operations line items on the Consolidated Financial Statements. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information for business components included in discontinued operations is as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=357></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=20></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Revenues</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>100</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>381</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>863</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Income from operations of discontinued businesses (before taxes)</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>108</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>198</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Income tax expense</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(29</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(83</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Income from operations of discontinued businesses</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>79</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>115</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Gain (loss) on disposal of discontinued businesses, after taxes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(661</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(57</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As further discussed in Note&nbsp;22&#151;Acquisitions and Dispositions, in February 2008, the Company entered into an agreement to sell two of its wholly-owned subsidiaries in Kazakhstan, AES&nbsp;Ekibastuz&nbsp;LLP ("Ekibastuz") and Maikuben West&nbsp;LLP ("Maikuben"). These businesses are included in the Europe&nbsp;&amp; Africa Generation segment. Total consideration for the transaction was approximately $1.1&nbsp;billion with potential earn-out provisions up to an additional $381&nbsp;million that may be awarded over a three-year period. These businesses generated total revenues of $114&nbsp;million, $106&nbsp;million, and $78&nbsp;million, and net income (loss) of $61&nbsp;million, $(35)&nbsp;million, and $(47)&nbsp;million for the years ended December&nbsp;31, 2008, 2007 and 2006, respectively, excluding intercompany transactions. The assets and liabilities of these businesses were reclassified to "held for sale" on the Consolidated </FONT><FONT size=2>Balance Sheets for all periods presented prior to the completion of the sale on May&nbsp;30, 2008. As a result of AES's continuing involvement in the management and operations of the businesses after the sale was completed, their results of operations continued to be reflected as part of income from continuing operations for all periods presented. Revenue recognized subsequent to the sale represented the management fees earned for the Company's continued management of the operations of the businesses. </FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>12. CONTINGENCIES </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>ENVIRONMENTAL</B></FONT><FONT size=2>&#151;The Company reviews its obligations as they relate to compliance with environmental laws, including site restoration and remediation. As of December&nbsp;31, 2008, the Company has recognized liabilities of $30&nbsp;million for projected environmental remediation costs. Due to the uncertainties associated with environmental assessment and remediation activities, future costs of </FONT><FONT size=2>compliance or remediation could be higher or lower than the amount currently accrued. Based on currently available information and analysis, the Company believes that it is reasonably possible that costs associated with such liabilities or as yet unknown liabilities may exceed current reserves in amounts that could be material but cannot be estimated as of December&nbsp;31, 2008. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>GUARANTEES, LETTERS OF CREDIT</B></FONT><FONT size=2>&#151;In connection with certain project financing, acquisition, power purchase, and other agreements, AES has expressly undertaken limited obligations and commitments, most of which will only be effective or will be terminated upon the occurrence of future events. In the normal course of business, AES and certain of its subsidiaries enter into various agreements providing financial or performance assurance to third parties on behalf of certain subsidiaries. Such agreements include guarantees and letters of credit. These agreements are entered into primarily to support or enhance the creditworthiness otherwise achieved by a subsidiary on a stand-alone basis, thereby facilitating the availability of sufficient credit to accomplish the subsidiaries' intended business purposes. In addition to the contingent obligations of the Parent Company identified in the table below, the Company's subsidiaries had letters of credit outstanding to support various contingent obligations. At December&nbsp;31, 2008, these letters of credit at our consolidated subsidiaries totaled approximately $1.2&nbsp;billion. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the Parent Company's contingent contractual obligations as of December&nbsp;31, 2008: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=287></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=40></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=37></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=51></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 122pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>Contingent contractual obligations <!-- COMMAND=ADD_SCROPPEDRULE,122pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Amount </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Number of<BR>Agreements </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle><FONT size=1><B>Maximum<BR>Exposure<BR>Range for<BR>Each<BR>Agreement </B></FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Guarantees</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>411</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>34</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>&lt;$1&nbsp;-&nbsp;$53&nbsp;&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Letters of credit&#151;under the Revolving Credit Facility</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>30</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>&lt;$1&nbsp;-&nbsp;$28&nbsp;&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Letters of credit&#151;under the Senior Unsecured Credit Facility</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>177</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>15</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>&lt;$1&nbsp;-&nbsp;$131</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=middle>&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>618</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>53</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=middle>&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Most of the contingent obligations primarily relate to future performance commitments which the Company or its subsidiaries expect to fulfill within the normal course of business. Amounts presented in the above table represent the Parent Company's current undiscounted exposure to guarantees and the range of maximum undiscounted potential exposure to the Parent Company as of December&nbsp;31, 2008. Guarantee termination provisions vary from less than one year to greater than 20&nbsp;years. Some result from the end of a contract period, assignment, asset sale, and change in credit rating or elapsed time. The amounts above include obligations made by the Parent Company for the direct benefit of the lenders associated with the non-recourse debt of subsidiaries of $48&nbsp;million. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The risks associated with these obligations include change of control, construction cost overruns, political risk, tax indemnities, spot market power prices, supplier support and liquidated damages under power purchase agreements for projects in development, under construction and operating. While the Company does not expect to be required to fund any material amounts under these contingent contractual obligations during 2009 or beyond that are not recognized on the Consolidated Balance Sheet, many of the events which would give rise to such an obligation are beyond the Parent </FONT><FONT size=2>Company's control. There can be no assurance that the Parent Company would have adequate sources of liquidity to fund its obligations under these contingent contractual obligations if it were required to make substantial payments thereunder. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2008, the Parent Company paid letter of credit fees which averaged 3.4% per annum on the outstanding amounts of letters of credit. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>LITIGATION</B></FONT><FONT size=2>&#151;The Company is involved in certain claims, suits and legal proceedings in the normal course of business, some of which are described below. The Company has accrued for litigation and claims where it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. The Company believes, based upon information it currently possesses and taking into account established reserves for estimated liabilities and its insurance coverage, that the ultimate outcome of these proceedings and actions is unlikely to have a material adverse effect on the Company's financial statements. However, it is reasonably possible that some matters could be decided unfavorably to the Company, and could require the Company to pay damages or make expenditures in amounts that could be material but cannot be estimated as of December&nbsp;31, 2008. The Company has evaluated claims, in accordance with SFAS&nbsp;No.&nbsp;5, </FONT><FONT size=2><I>Accounting for Contingencies</I></FONT><FONT size=2>, ("SFAS&nbsp;No.&nbsp;5") that it deems both probable and reasonably estimable and accordingly, has recorded aggregate reserves for all claims for approximately $389&nbsp;million and $486&nbsp;million at December&nbsp;31, 2008 and 2007, respectively. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 1989, Centrais El&#233;tricas Brasileiras&nbsp;S.A. ("Eletrobr&#225;s") filed suit in the Fifth&nbsp;District Court in the State of Rio de Janeiro against Eletropaulo Eletricidade de S&#227;o Paulo&nbsp;S.A. ("EEDSP") relating to the methodology for calculating monetary adjustments under the parties' financing agreement. In April&nbsp;1999, the Fifth&nbsp;District Court found for Eletrobr&#225;s and in September&nbsp;2001, Eletrobr&#225;s initiated an execution suit in the Fifth&nbsp;District Court to collect approximately R$937&nbsp;million ($400&nbsp;million) from Eletropaulo (as estimated by Eletropaulo) and a lesser amount from an unrelated company, Companhia de Transmiss&#227;o de Energia El&#233;trica Paulista ("CTEEP") (Eletropaulo and CTEEP were spun off from EEDSP pursuant to its privatization in 1998). In November&nbsp;2002, the Fifth&nbsp;District Court rejected Eletropaulo's defenses in the execution suit. Eletropaulo appealed and in September&nbsp;2003, the Appellate Court of the State of Rio de Janeiro ruled that Eletropaulo was not a proper party to the litigation because any alleged liability had been transferred to CTEEP pursuant to the privatization. In June&nbsp;2006, the Superior Court of Justice ("SCJ") reversed the Appellate Court's decision and remanded the case to the Fifth&nbsp;District Court for further proceedings, holding that Eletropaulo's liability, if any, should be determined by the Fifth&nbsp;District Court. Eletropaulo's subsequent appeals to the Special Court (the highest court within the SCJ) and the Supreme Court of Brazil have been dismissed. Eletrobr&#225;s may resume the execution suit in the Fifth&nbsp;District Court at any time. If Eletrobr&#225;s does so, Eletropaulo will be required to provide security in the amount of its alleged liability. In that case, if Eletrobr&#225;s requests the seizure of such security and the Fifth&nbsp;District Court grants such request, Eletropaulo's results of operations may be materially adversely affected. In addition, in February 2008, CTEEP filed a lawsuit in the Fifth&nbsp;District Court against Eletrobr&#225;s and Eletropaulo seeking a declaration that CTEEP is not liable for any debt under the financing agreement. Eletropaulo believes it has meritorious defenses to the claims asserted against it and will defend itself vigorously in these proceedings; however, there can be no assurances that it will be successful in its efforts.&nbsp;</FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In September&nbsp;1999, a state appellate court in Minas Gerais, Brazil, granted a temporary injunction suspending the effectiveness of a shareholders' agreement between Southern Electric Brasil Participacoes,&nbsp;Ltda. ("SEB") and the state of Minas Gerais concerning CEMIG, an integrated utility in Minas Gerais. The Company's investment in CEMIG is through SEB. This shareholders' agreement granted SEB certain rights and powers in respect of CEMIG ("Special Rights"). In March&nbsp;2000, a lower state court in Minas Gerais held the shareholders' agreement invalid where it purported to grant SEB the Special Rights and enjoined the exercise of the Special Rights. In August&nbsp;2001, the state appellate court denied an appeal of the decision and extended the injunction. In October 2001, SEB filed appeals against the state appellate court's decision with the Federal Superior Court and the Supreme Court of Justice. The state appellate court denied access of these appeals to the higher courts, and in August&nbsp;2002 SEB filed interlocutory appeals against such denial with the Federal Superior Court and the Supreme Court of Justice. In December&nbsp;2004, the Federal Superior Court declined to hear SEB's appeal. However, the Supreme Court of Justice is considering whether to hear SEB's appeal. SEB intends to vigorously pursue a restoration of the value of its investment in CEMIG by all legal means; however, there can be no assurances that it will be successful in its efforts. Failure to prevail in this matter may limit SEB's influence on the daily operation of CEMIG. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In August&nbsp;2000, the Federal Energy Regulation Commission ("FERC") announced an investigation into the organized California wholesale power markets in order to determine whether rates were just and reasonable. Further investigations involved alleged market manipulation. FERC requested documents from each of the AES&nbsp;Southland,&nbsp;LLC plants and AES Placerita,&nbsp;Inc. AES&nbsp;Southland and AES Placerita have cooperated fully with the FERC investigations. AES&nbsp;Southland was not subject to refund liability because it did not sell into the organized spot markets due to the nature of its tolling agreement. AES Placerita is currently subject to refund liability of $588,000 plus interest for spot sales to the California Power Exchange from October&nbsp;2, 2000 to June&nbsp;20, 2001 ("Refund Period"). In September&nbsp;2004, the U.S.&nbsp;Court of Appeals for the Ninth Circuit issued an order addressing FERC's decision not to impose refunds for the alleged failure to file rates, including transaction specific data, for sales during 2000 and 2001 ("September&nbsp;2004&nbsp;Decision"). Although it did not order refunds, the Ninth Circuit remanded the case to FERC for a refund proceeding to consider remedial options. In March&nbsp;2008, FERC issued its order on remand, requiring the parties to engage in settlement discussions before a settlement judge and establishing procedures for an evidentiary hearing if the settlement process failed. In addition, in August&nbsp;2006 in a separate case, the Ninth Circuit confirmed the Refund Period, expanded the transactions subject to refunds to include multi-day transactions, expanded the potential liability of sellers to include any pre-Refund Period tariff violations, and remanded the matter to FERC ("August&nbsp;2006&nbsp;Decision"). Various parties filed petitions for rehearing in November&nbsp;2007. The August&nbsp;2006&nbsp;Decision may allow FERC to reopen closed investigations and order relief. AES&nbsp;Placerita made sales during the periods at issue in the September&nbsp;2004 and August&nbsp;2006&nbsp;Decisions. Both appeals may be subject to further court review, and further FERC proceedings on remand would be required to determine potential liability, if any. Prior to the August&nbsp;2006&nbsp;Decision, AES&nbsp;Placerita's potential liability for the Refund and pre-Refund Periods could have approximated $23&nbsp;million plus interest. However, given the September&nbsp;2004 and August&nbsp;2006&nbsp;Decisions, it is unclear whether AES&nbsp;Placerita's potential liability is less than or exceeds that amount. AES&nbsp;Placerita believes it has meritorious defenses to the claims asserted against it and will defend itself vigorously in these proceedings; however, there can be no assurances that it will be successful in its efforts. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In August&nbsp;2001, the Grid Corporation of Orissa, India ("Gridco"), filed a petition against the Central Electricity Supply Company of Orissa&nbsp;Ltd. ("CESCO"), an affiliate of the Company, with the Orissa Electricity Regulatory Commission ("OERC"), alleging that CESCO had defaulted on its obligations as an OERC-licensed distribution company, that CESCO management abandoned the management of CESCO, and asking for interim measures of protection, including the appointment of an administrator to manage CESCO. Gridco, a state-owned entity, is the sole wholesale energy provider to CESCO. Pursuant to the OERC's August&nbsp;2001 order, the management of CESCO was replaced with a government administrator who was appointed by the OERC. The OERC later held that the Company and other CESCO shareholders were not necessary or proper parties to the OERC proceeding. In August&nbsp;2004, the OERC issued a notice to CESCO, the Company and others giving the recipients of the notice until November&nbsp;2004 to show cause why CESCO's distribution license should not be revoked. In response, CESCO submitted a business plan to the OERC. In February 2005, the OERC issued an order rejecting the proposed business plan. The order also stated that the CESCO distribution license would be revoked if an acceptable business plan for CESCO was not submitted to and approved by the OERC prior to March&nbsp;31, 2005. In its April&nbsp;2, 2005 order, the OERC revoked the CESCO distribution license. CESCO has filed an appeal against the April&nbsp;2, 2005 OERC order and that appeal remains pending in the Indian courts. In addition, Gridco asserted that a comfort letter issued by the Company in connection with the Company's indirect investment in CESCO obligates the Company to provide additional financial support to cover all of CESCO's financial obligations to Gridco. In December&nbsp;2001, Gridco served a notice to arbitrate pursuant to the Indian Arbitration and Conciliation Act of 1996 on the Company, AES Orissa Distribution Private Limited ("AES ODPL"), and Jyoti Structures ("Jyoti") pursuant to the terms of the CESCO Shareholders Agreement between Gridco, the Company, AES ODPL, Jyoti and CESCO (the "CESCO arbitration"). In the arbitration, Gridco appeared to be seeking approximately $189&nbsp;million in damages, plus undisclosed penalties and interest, but a detailed alleged damage analysis was not filed by Gridco. The Company counterclaimed against Gridco for damages. In June&nbsp;2007, a 2-to-1 majority of the arbitral tribunal rendered its award rejecting Gridco's claims and holding that none of the respondents, the Company, AES ODPL, or Jyoti, had any liability to Gridco. The respondents' counterclaims were also rejected. The Company subsequently filed an application to recover its costs of the arbitration, which is under consideration by the tribunal. In addition, in September&nbsp;2007, Gridco filed a challenge of the arbitration award with the local Indian court. In June&nbsp;2008, Gridco filed a separate application with the local Indian court for an order enjoining the Company from selling or otherwise transferring its shares in Orissa Power Generation Corporation&nbsp;Ltd's ("OPGC"), and requiring the Company to provide security in the amount of the contested damages in the CESCO arbitration until Gridco's challenge to the arbitration award is resolved. The Company believes that it has meritorious defenses to the claims asserted against it and will defend itself vigorously in these proceedings; however, there can be no assurances that it will be successful in its efforts. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In early 2002, Gridco made an application to the OERC requesting that the OERC initiate proceedings regarding the terms of OPGC's existing PPA with Gridco. In response, OPGC filed a petition in the Indian courts to block any such OERC proceedings. In early 2005, the Orissa High Court upheld the OERC's jurisdiction to initiate such proceedings as requested by Gridco. OPGC appealed that High Court's decision to the Supreme Court and sought stays of both the High Court's decision and the underlying OERC proceedings regarding the PPAs terms. In April&nbsp;2005, the Supreme </FONT><FONT size=2>Court granted OPGC's requests and ordered stays of the High Court's decision and the OERC proceedings with respect to the PPA's terms. The matter is awaiting further hearing. Unless the Supreme Court finds in favor of OPGC's appeal or otherwise prevents the OERC's proceedings regarding the PPA's terms, the OERC will likely lower the tariff payable to OPGC under the PPA, which would have an adverse impact on OPGC's financials. OPGC believes that it has meritorious claims and defenses and will assert them vigorously in these proceedings; however, there can be no assurances that it will be successful in its efforts. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In March&nbsp;2003, the office of the Federal Public Prosecutor for the State of Sao Paulo, Brazil ("MPF") notified AES&nbsp;Eletropaulo that it had commenced an inquiry related to the Brazilian National Development Bank ("BNDES") financings provided to AES&nbsp;Elpa and AES&nbsp;Transg&#225;s and the rationing loan provided to Eletropaulo, changes in the control of Eletropaulo, sales of assets by Eletropaulo and the quality of service provided by Eletropaulo to its customers, and requested various documents from Eletropaulo relating to these matters. In July&nbsp;2004, the MPF filed a public civil lawsuit in federal court alleging that BNDES&nbsp;violated Law&nbsp;8429/92 (the Administrative Misconduct Act) and BNDES's internal rules by: (1)&nbsp;approving the AES&nbsp;Elpa and AES&nbsp;Transg&#225;s loans; (2)&nbsp;extending the payment terms on the AES&nbsp;Elpa and AES&nbsp;Transg&#225;s loans; (3)&nbsp;authorizing the sale of Eletropaulo's preferred shares at a stock-market auction; (4)&nbsp;accepting Eletropaulo's preferred shares to secure the loan provided to Eletropaulo; and (5)&nbsp;allowing the restructurings of Light Servi&#231;os de Eletricidade&nbsp;S.A. ("Light") and Eletropaulo. The MPF also named AES&nbsp;Elpa and AES&nbsp;Transg&#225;s as defendants in the lawsuit because they allegedly benefited from BNDES's alleged violations. In June&nbsp;2005, AES&nbsp;Elpa and AES&nbsp;Transg&#225;s presented their preliminary answers to the charges. In May&nbsp;2006, the federal court ruled that the MPF could pursue its claims based on the first, second, and fourth alleged violations noted above. The MPF subsequently filed an interlocutory appeal seeking to require the federal court to consider all five alleged violations. Also, in July&nbsp;2006, AES&nbsp;Elpa and AES&nbsp;Transg&#225;s filed an interlocutory appeal seeking to enjoin the federal court from considering any of the alleged violations. The MPF's lawsuit before the federal court has been stayed pending those interlocutory appeals. AES&nbsp;Elpa and AES Transg&#225;s believe they have meritorious defenses to the allegations asserted against them and will defend themselves vigorously in these proceedings; however, there can be no assurances that they will be successful in their efforts. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AES Florestal,&nbsp;Ltd. ("Florestal"), had been operating a pole factory and had other assets, including a wooded area known as "Horto Renner," in the State of Rio&nbsp;Grande do&nbsp;Sul, Brazil (collectively, "Property"). Florestal had been under the control of AES&nbsp;Sul ("Sul") since October 1997, when Sul was created pursuant to a privatization by the Government of the State of Rio&nbsp;Grande do&nbsp;Sul. After it came under the control of Sul, Florestal performed an environmental audit of the entire operational cycle at the pole factory. The audit discovered 200&nbsp;barrels of solid creosote waste and other contaminants at the pole factory. The audit concluded that the prior operator of the pole factory, Companhia Estadual de Energia El&#233;trica ("CEEE"), had been using those contaminants to treat the poles that were manufactured at the factory. Sul and Florestal subsequently took the initiative of communicating with Brazilian authorities, as well as CEEE, about the adoption of containment and remediation measures. The Public Attorney's Office has initiated a civil inquiry (Civil Inquiry n.&nbsp;24/05) to investigate potential civil liability and has requested that the police station of Triunfo institute a police investigation (IP&nbsp;number&nbsp;1041/05) to investigate potential criminal liability regarding the contamination at the pole factory. The parties filed defenses in response to the civil inquiry. The Public </FONT><FONT size=2>Attorney's Office then requested an injunction which the judge rejected on September&nbsp;26, 2008. The Public Attorney's office has a right to appeal the decision. The environmental agency ("FEPAM") has also started a procedure (Procedure no.&nbsp;088200567/059) to analyze the measures that shall be taken to contain and remediate the contamination. Also, in March&nbsp;2000, Sul filed suit against CEEE in the 2nd&nbsp;Court of Public Treasure of Porto Alegre seeking to register in Sul's name the Property that it acquired through the privatization but that remained registered in CEEE's name. During those proceedings, AES subsequently waived its claim to re-register the Property and asserted a claim to recover the amounts paid for the Property. That claim is pending. In November&nbsp;2005, the 7th&nbsp;Court of Public Treasure of Porto Alegre ruled that the Property must be returned to CEEE. CEEE has had sole possession of Horto Renner since September&nbsp;2006 and of the rest of the Property since April&nbsp;2006. In February 2008, Sul and CEEE signed a "Technical Cooperation Protocol" pursuant to which they requested a new deadline from FEPAM in order to present a proposal. The proposal was delivered on April&nbsp;8, 2008. FEPAM responded by indicating that the parties should undertake the first step of the proposal which would be to retain a contractor. In its response Sul indicated that such step should be undertaken by CEEE as the relevant environmental events resulted from CEEE's operations. It is estimated that remediation could cost approximately R$14.7&nbsp;million ($6.3&nbsp;million). Discussions between Sul and CEEE are ongoing. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In January 2004, the Company received notice of a "Formulation of Charges" filed against the Company by the Superintendence of Electricity of the Dominican Republic. In the "Formulation of Charges," the Superintendence asserts that the existence of three generation companies (Empresa Generadora de Electricidad Itabo,&nbsp;S.A., ("Itabo") Dominican Power Partners, and AES Andres&nbsp;BV) and one distribution company (Empresa Distribuidora de Electricidad del Este,&nbsp;S.A. ("Este")) in the Dominican Republic, violates certain cross-ownership restrictions contained in the General Electricity Law of the Dominican Republic. In February 2004, the Company filed in the First Instance Court of the National District of the Dominican Republic an action seeking injunctive relief based on several constitutional due process violations contained in the "Formulation of Charges" ("Constitutional Injunction"). In February 2004, the Court granted the Constitutional Injunction and ordered the immediate cessation of any effects of the "Formulation of Charges," and the enactment by the Superintendence of Electricity of a special procedure to prosecute alleged antitrust complaints under the General Electricity Law. In March&nbsp;2004, the Superintendence of Electricity appealed the Court's decision. In July&nbsp;2004, the Company divested any interest in Este. The Superintendence of Electricity's appeal is pending. The Company believes it has meritorious defenses to the claims asserted against it and will defend itself vigorously in these proceedings; however, there can be no assurances that it will be successful in its efforts. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In April&nbsp;2004, BNDES filed a collection suit against SEB, a subsidiary of the Company, to obtain the payment of R$3.5&nbsp;billion ($1.5&nbsp;billion), which includes principal, interest and penalties under the loan agreement between BNDES and SEB, the proceeds of which were used by SEB to acquire shares of CEMIG. In May&nbsp;2004, the 15th&nbsp;Federal Circuit Court ("Circuit Court") ordered the attachment of SEB's CEMIG shares, which were given as collateral for the loan, as well as dividends paid by CEMIG to SEB. At the time of the attachment, the shares were worth approximately R$762&nbsp;million ($325&nbsp;million). In December&nbsp;2006, SEB's defense was ruled groundless by the Circuit Court, and in January 2007, SEB filed an appeal to the relevant Federal Court of Appeals. Subsequently, BNDES has seized a total of approximately R$630&nbsp;million ($269&nbsp;million) in attached dividends, with the approval of </FONT><FONT size=2>the Circuit Court. Also, in April&nbsp;2008, BNDES filed a plea to seize the attached CEMIG shares. The Circuit Court will consider BNDES's request to seize the attached CEMIG shares after the net value of the alleged debt is recalculated in light of BNDES's seizure of dividends. SEB believes it has meritorious defenses to the claims asserted against it and will defend itself vigorously in these proceedings; however, there can be no assurances that it will be successful in its efforts. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In July&nbsp;2004, the Corporaci&#243;n Dominicana de Empresas El&#233;ctricas Estatales ("CDEEE") filed lawsuits against Itabo, an affiliate of the Company, in the First and Fifth&nbsp;Chambers of the Civil and Commercial Court of First Instance for the National District. CDEEE alleges in both lawsuits that Itabo spent more than was necessary to rehabilitate two generation units of an Itabo power plant and, in the Fifth&nbsp;Chamber lawsuit, that those funds were paid to affiliates and subsidiaries of AES&nbsp;Gener and Coastal Itabo,&nbsp;Ltd. ("Coastal"), a former shareholder of Itabo, without the required approval of Itabo's board of administration. In the First Chamber lawsuit, CDEEE seeks an accounting of Itabo's transactions relating to the rehabilitation. In November&nbsp;2004, the First Chamber dismissed the case for lack of legal basis. On appeal, in October&nbsp;2005 the Court of Appeals of Santo Domingo ruled in Itabo's favor, reasoning that it lacked jurisdiction over the dispute because the parties' contracts mandated arbitration. The Supreme Court of Justice is considering CDEEE's appeal of the Court of Appeals' decision. In the Fifth&nbsp;Chamber lawsuit, which also names Itabo's former president as a defendant, CDEEE seeks $15&nbsp;million in damages and the seizure of Itabo's assets. In October&nbsp;2005, the Fifth&nbsp;Chamber held that it lacked jurisdiction to adjudicate the dispute given the arbitration provisions in the parties' contracts. The First Chamber of the Court of Appeal ratified that decision in September&nbsp;2006. In a related proceeding, in May&nbsp;2005, Itabo filed a lawsuit in the U.S.&nbsp;District Court for the Southern District of New&nbsp;York seeking to compel CDEEE to arbitrate its claims. The petition was denied in July&nbsp;2005. Itabo's appeal of that decision to the U.S.&nbsp;Court of Appeals for the Second Circuit has been stayed since September&nbsp;2006. Further, in September&nbsp;2006, in an International Chamber of Commerce arbitration, an arbitral tribunal determined that they lacked jurisdiction to decide arbitration claims concerning these disputes. Itabo believes it has meritorious claims and defenses and will assert them vigorously in these proceedings; however, there can be no assurances that it will be successful in its efforts. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In April&nbsp;2006, a putative class action complaint was filed in the U.S.&nbsp;District Court for the Southern District of Mississippi ("District Court") on behalf of certain individual plaintiffs and all residents and/or property owners in the State of Mississippi who allegedly suffered harm as a result of Hurricane Katrina, and against the Company and numerous unrelated companies, whose alleged greenhouse gas emissions allegedly increased the destructive capacity of Hurricane Katrina. The plaintiffs assert unjust enrichment, civil conspiracy/aiding and abetting, public and private nuisance, trespass, negligence, and fraudulent misrepresentation and concealment claims against the defendants. The plaintiffs seek damages relating to loss of property, loss of business, clean-up costs, personal injuries and death, but do not quantify their alleged damages. In August&nbsp;2007, the District Court dismissed the case. The plaintiffs have appealed to the U.S.&nbsp;Court of Appeals for the Fifth&nbsp;Circuit, which heard oral arguments in November&nbsp;2008 and is considering the appeal. The Company believes it has meritorious defenses to the claims asserted against it and will defend itself vigorously in these proceedings; however, there can be no assurances that it will be successful in its efforts. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June&nbsp;2006, AES&nbsp;Ekibastuz was found to have breached a local tax law by failing to obtain a license for use of local water for the period of January&nbsp;1, 2005 through October&nbsp;3, 2005, in a timely manner. As a result, an additional permit fee was imposed, bringing the total permit fee to approximately $135,000. The Company has appealed this decision to the Supreme Court. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June&nbsp;2007, the Competition Committee of the Ministry of Industry and Trade of the Republic of Kazakhstan ordered AES Ust-Kamenogorsk TETS&nbsp;LLP ("UKT") to pay approximately 835&nbsp;million KZT ($7&nbsp;million) to the state for alleged antimonopoly violations in 2005 through January 2007. The Competition Committee also ordered UKT to pay approximately 235&nbsp;million KZT ($2&nbsp;million), as estimated by the Company, to certain customers that allegedly have paid unreasonably high power prices since January 2007. In November&nbsp;2007, the economic court of first instance upheld the Competition Committee's order in part, finding that UKT had violated Kazakhstan's antimonopoly laws, but reduced the damages to be paid to the state to 833&nbsp;million KZT ($7&nbsp;million) and rejected the damages to be paid to customers. The court of appeals (first panel) later affirmed the economic court's decision and, therefore, in June&nbsp;2008, UKT paid the damages. The court of appeals (second panel) rejected UKT's appeal in June&nbsp;2008. UKT has appealed to the Supreme Court of Kazakhstan. The Competition Committee's successor (the Antimonopoly Agency) has not indicated whether it intends to assert claims against UKT for alleged antimonopoly violations post January 2007. UKT believes it has meritorious claims and defenses; however, there can be no assurances that it will prevail in these proceedings. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In July&nbsp;2007, the Competition Committee ordered Nurenergoservice, an AES subsidiary, to pay approximately 18&nbsp;billion KZT ($150&nbsp;million) for alleged antimonopoly violations in 2005 through the first quarter of 2007. The Competition Committee's order was affirmed by the economic court in April&nbsp;2008. Nurenergoservice's subsequent appeals have been unsuccessful to date, including at the court of appeals (first panel), which rejected Nurenergoservice's appeal in July&nbsp;2008. Also, the economic court has issued an injunction to secure Nurenergoservice's alleged liability, freezing Nurenergoservice's bank accounts and prohibiting Nurenergoservice from transferring or disposing of its property. In separate but related proceedings, in August&nbsp;2007, the Competition Committee ordered Nurenergoservice to pay approximately 2&nbsp;billion KZT (approximately $17&nbsp;million) in administrative fines for its alleged antimonopoly violations. Nurenergoservice subsequently appealed to the administrative court of first instance. That appeal has been stayed since October&nbsp;2007 but could resume at any time. The Antimonopoly Agency has not indicated whether it intends to assert claims against Nurenergoservice for alleged antimonopoly violations post first quarter 2007. Nurenergoservice believes it has meritorious claims and defenses; however, there can be no assurances that it will prevail in these proceedings. As Nurenergoservice did not prevail in the economic court or the court of appeals (first panel) with respect to the alleged damages, it will have to pay the alleged damages or risk seizure of its assets. In February 2009, the Antimonopoly Agency seized approximately 783&nbsp;million&nbsp;KZT ($5&nbsp;million) from a frozen Nurenergoservice bank account in partial satisfaction of Nurenergoservice alleged damages liability. Furthermore, if Nurenergoservice does not prevail in the administrative court with respect to the fines, it will have to pay the fines or risk seizure of its assets. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In August&nbsp;2007, the Competition Committee ordered Sogrinsk TETS, a thermal cogeneration plant under AES concession, to terminate its contracts with Nurenergoservice and Ust-Kamenogorsk HPP because of Sogrinsk's alleged antimonopoly violations in 2005 through January 2007. The Competition </FONT><FONT size=2>Committee did not order Sogrinsk to pay any damages or fines. The Kazakhstan courts have affirmed the order, including the Supreme Court of Kazakhstan in October&nbsp;2008. The Antimonopoly Agency has not indicated whether it intends to assert claims against Sogrinsk for alleged antimonopoly violations post January 2007. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In November&nbsp;2007, the Competition Committee initiated an investigation of allegations that Irtysh Power and Light,&nbsp;LLP ("Irtysh"), an AES company which manages the state-owned Ust-Kamenogorsk Heat Nets system, had violated Kazakhstan's antimonopoly laws in January through November&nbsp;2007 by selling power at below-market prices. In February 2008, the Competition Committee determined that the allegations were baseless. The Competition Committee subsequently appeared to initiate an investigation to determine whether Irtysh had illegally coordinated with other AES&nbsp;companies concerning the sale of power, but its successor (the Antimonopoly Agency) has not issued any order or otherwise taken any action on any such investigation to date. Irtysh believes it has meritorious claims and defenses and will assert them vigorously in any formal proceeding; however, there can be no assurances that it will be successful in its efforts. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December&nbsp;2008, the Antimonopoly Agency ordered Ust-Kamenogorsk HPP ("UK&nbsp;HPP"), a hydroelectric plant under AES&nbsp;concession, to pay approximately 1.1&nbsp;billion KZT ($9&nbsp;million) for alleged antimonopoly violations in February through November&nbsp;2007. The economic court has issued an injunction to secure UK&nbsp;HPP's alleged liability, among other things freezing UK&nbsp;HPP's bank accounts. Furthermore, the Antimonopoly Agency has initiated administrative proceedings against UK&nbsp;HPP seeking an unspecified amount of administrative fines for the alleged antimonopoly violations. UK&nbsp;HPP believes it has meritorious defenses and will assert them vigorously; however, there can be no assurances that it will be successful in its efforts. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June&nbsp;2007, the Company received a letter from an outside law firm purportedly representing a shareholder demanding that the Company's Board conduct a review of certain stock option plans, procedures and historical granting and exercise practices, and other matters, and that the Company commence legal proceedings against any officer and/or director who may be liable for damages to the Company. The Board has established a Special Committee, which has retained independent counsel, to consider the demands presented in the letter in light of the work undertaken by the Company in its review of share-based compensation. The Company has not received any communication from the purported shareholder who made the demand since the second half of 2007. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In July&nbsp;2007, AES&nbsp;Energia Cartagena SRL, ("AESEC") initiated arbitration against Initec Energia&nbsp;SA, Mitsubishi Corporation, and MC&nbsp;Power Project Management, SL ("Contractor") to recover damages from the Contractor for its delay in completing the construction of AESEC's majority-owned power facility in Murcia, Spain. In October&nbsp;2007, the Contractor denied AESEC's claims and asserted counterclaims to recover approximately &#128;12&nbsp;million ($17&nbsp;million) for alleged unpaid milestone and scope change order payments, among other things, and an unspecified amount for an alleged early completion bonus. The final hearing is scheduled to begin in June&nbsp;2009. AESEC believes that it has meritorious claims and defenses and will assert them vigorously in these proceedings; however, there can be no assurances that it will be successful in its efforts. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In November&nbsp;2007, the International Brotherhood of Electrical Workers, Local Union No.&nbsp;1395, and sixteen individual retirees, (the "Complainants"), filed a complaint at the Indiana Utility </FONT><FONT size=2>Regulatory Commission ("IURC") seeking enforcement of their interpretation of the 1995&nbsp;final order and associated settlement agreement resolving IPL's basic rate case. The Complainants are requesting that the IURC conduct an investigation of IPL's failure to fund the Voluntary Employee Beneficiary Association Trust&nbsp;("VEBA&nbsp;Trust"), at a level of approximately $19&nbsp;million per year. The VEBA&nbsp;Trust&nbsp;was spun off to an independent trustee in 2001. The complaint seeks an IURC order requiring IPL to make contributions to place the VEBA&nbsp;Trust&nbsp;in the financial position in which it allegedly would have been had IPL not ceased making annual contributions to the VEBA&nbsp;Trust&nbsp;after its spin off. The complaint also seeks an IURC order requiring IPL to resume making annual contributions to the VEBA&nbsp;Trust. IPL filed a motion to dismiss and both parties are seeking summary judgment in the IURC proceeding. To date, no procedural schedule for this proceeding has been established. IPL believes it has meritorious defenses to the Complainants' claims and it will assert them vigorously in response to the complaint; however, there can be no assurances that it will be successful in its efforts. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In September&nbsp;2007, the New&nbsp;York Attorney General issued a subpoena to the Company seeking documents and information concerning the Company's analysis and public disclosure of the potential impacts that greenhouse gas ("GHG") legislation and climate change from GHG emissions might have on the Company's operations and results. The Company has produced documents and information in response to the subpoena. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In October&nbsp;2007, the Ekibastuz Tax Committee issued a notice for the assessment of certain taxes against AES&nbsp;Ekibastuz&nbsp;LLP. A portion of the assessment, approximately $1.7&nbsp;million, relates to alleged environmental pollution. The review by the Ekibastuz Tax Committee is ongoing and their decision on any assessment, including the portion related to alleged environmental pollution, is not yet final. In addition, as the result of a subsequent tax audit which was completed on January&nbsp;24, 2008, an additional amount of approximately 36&nbsp;million KZT in principal, 20&nbsp;million KZT in interest and 13&nbsp;million KZT in penalty (collectively, approximately $600,000), was assessed as underpayment of taxes for the 2004 calendar year and VAT for January 2004. AES&nbsp;Ekibastuz appealed these assessments. However, this position was rejected by the Regional Tax Committee in a decision dated January&nbsp;30, 2008. On February&nbsp;29, 2008, AES&nbsp;Ekibastuz appealed to the Ministry of Finance of the Republic of Kazakhstan and is currently awaiting a decision. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In February 2008, the Native Village of Kivalina, Alaska, and the City of Kivalina filed a complaint in the U.S.&nbsp;District Court for the Northern District of California against the Company and numerous unrelated companies, claiming that the defendants' alleged GHG emissions are destroying the plaintiffs' alleged land. The plaintiffs assert nuisance and concert of action claims against the Company and the other defendants, and a conspiracy claim against a subset of the other defendants. The plaintiffs seek to recover relocation costs, indicated in the complaint to be from $95&nbsp;million to $400&nbsp;million, and other alleged damages from the defendants, which are not quantified. The Company has filed a motion to dismiss the case, which the plaintiffs have opposed. The Company believes it has meritorious defenses to the claims asserted against it and will defend itself vigorously in these proceedings; however, there can be no assurances that it will be successful in its efforts. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A public civil action has been asserted against Eletropaulo and Associa&#231;&#227;o Desportiva Cultural Eletropaulo (the "Associa&#231;&#227;o") relating to alleged environmental damage caused by construction of the Associa&#231;&#227;o near Guarapiranga Reservoir. The initial decision that was upheld on the first appeal found </FONT><FONT size=2>that Eletropaulo should either repair the alleged environmental damage by demolishing certain construction and reforesting the area, pursuant to a project which would cost approximately $628,000, or pay an indemnification amount of approximately $5&nbsp;million. Eletropaulo has appealed this decision to the Supreme Court and is awaiting a decision. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2007, a lower court issued a decision related to a 1993 claim that was filed by the Public Attorney's office against Eletropaulo, the Sao Paulo State Government, SABESP (a state owned company), CETESB (a state owned company) and DAEE (the municipal Water and Electric Energy Department), alleging that they were liable for pollution of the Billings Reservoir as a result of pumping water from Pinheiros River into Billings Reservoir. The events in question occurred while Eletropaulo was a state owned company. The initial lower court decision in 2007 found the parties liable for the payment of R$517.46&nbsp;million ($221&nbsp;million) for remediation. Eletropaulo subsequently appealed the decision and Eletropaulo is still awaiting a decision on the appeal. The filing of the appeal suspended the lower court's decision. Eletropaulo believes it has meritorious defenses to the claims asserted against it and will defend itself vigorously in these proceedings; however, there can be no assurances that it will be successful in its efforts. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In September&nbsp;2008, IPL received a Clean Air Act Section&nbsp;114 information request. The request seeks various information regarding production levels and projects implemented at IPL's generating stations, generally for the time period from January&nbsp;1, 2001 to the date of the information request. This type of information request has been used in the past to assist the EPA in determining whether a plant is in compliance with applicable standards under the Clean Air Act. At this time it is not possible to predict what impact, if any, this request may have on IPL, its results of operation or its financial position. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In November&nbsp;2007, the U.S.&nbsp;Department of Justice ("DOJ") indicated to AES Thames,&nbsp;LLC ("AES&nbsp;Thames") that the U.S.&nbsp;EPA had requested that the DOJ file&nbsp;a federal court action against AES&nbsp;Thames for alleged violations of the Clean Air Act ("CAA"), the Clean Water Act ("CWA"), the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA") and the Emergency Planning and Community Right-to-Know Act ("EPCRA"), in particular alleging that AES&nbsp;Thames had violated (i)&nbsp;the terms of its Prevention of Significant Deterioration ("PSD") air permits in the calculation of its steam load permit limit; and (ii)&nbsp;the CWA, CERCLA and EPCRA in connection with two spills of chlorinating agents. The DOJ subsequently indicated that it would like to settle this matter prior to filing a suit and negotiations are ongoing. During such discussions, the DOJ and EPA have accepted AES&nbsp;Thames method of operation and have asked AES&nbsp;Thames to seek a minor permit modification to clarify the air permit condition. On October&nbsp;21, 2008, the DOJ proposed a civil penalty of $245,000 for the alleged violations. The Company believes that it has meritorious defenses to the claims asserted against it and if a settlement cannot be achieved, the Company will defend itself vigorously in any lawsuit. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December&nbsp;2008, there were press reports that the National Electricity Regulatory Entity of Argentina ("ENRE") had filed a criminal action in the National Criminal and Correctional Court of Argentina against the board of directors and administrators of EDELAP, an AES subsidiary. Although EDELAP has not been officially served with notice of the action, press reports have stated that ENRE's action concerns certain bank cancellations of EDELAP debt in 2006 and 2007, which were accomplished through transactions between the banks and related AES companies. According to press </FONT><FONT size=2>reports, ENRE claims that EDELAP should have reflected in its accounts the alleged benefits of the transactions that were allegedly obtained by the related companies. EDELAP believes that the allegations lack merit; however, there can be no assurances that its board and administrators will be successful in any formal proceedings concerning the allegations. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In January&nbsp;2009, an alleged shareholder of the Company filed a shareholder derivative and putative class action in Delaware state court against the Company and certain members of its board of directors. The plaintiff claims that Section&nbsp;2.17(B) of the Company's bylaws, concerning shareholder action by written consent, is illegal under Delaware law. The plaintiff does not seek damages but declarations that Section&nbsp;2.17(B) is unlawful and void and that the board member defendants breached their respective fiduciary duties of loyalty by adopting that bylaw in October&nbsp;2008. The plaintiff further seeks to recover his litigation costs. The Company defendants believe they have meritorious defenses and will assert them vigorously in these proceedings; however, there can be no assurances that they will be successful in their efforts. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A CAA Section&nbsp;114 information request regarding Cayuga and Somerset was received in February 2009. The request seeks various operating and testing data and other information regarding certain types of projects at the Cayuga and Somerset facilities, generally for the time period from January&nbsp;1, 2000 through the date of the information request. This type of information request has been used in the past to assist the EPA in determining whether a plant is in compliance with applicable standards under the CAA. At this time it is not possible to predict what impact, if any, this request may have on Cayuga and/or Somerset, their results of operation or their financial position. </FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>15. SEGMENT AND GEOGRAPHIC INFORMATION </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Through the end of 2008, the Company organized its operations along two primary lines of business (Generation and Utilities) within four geographic regions: Latin America; North America; Europe&nbsp;&amp; Africa; and Asia&nbsp;&amp; the Middle East&nbsp;("Asia"). The reportable segments included: </FONT></P> <UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Latin America Generation; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Latin America Utilities; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>North America Generation; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>North America Utilities; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Europe&nbsp;&amp; Africa Generation; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Europe&nbsp;&amp; Africa Utilities; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Asia Generation. </FONT></DD></DL></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company's segment reporting reflects how AES managed its operations internally in terms of decision making and evaluating performance through the end of 2008. The Company managed its business primarily on a geographic basis in two distinct lines of business&#151;the generation of electricity ("Generation") and the distribution of electricity ("Utilities"). These businesses are distinguished by the nature of their customers, operational differences, cost structure, regulatory environment and risk exposure. Given the geographic dispersion of our operating units, we further disaggregated the lines of business by region into separate segments to provide further transparency to our shareholders and other external constituents. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Three regions, North America, Latin America and Europe&nbsp;&amp; Africa, are engaged in both Generation and Utility businesses. Our Asia region only has Generation businesses. Accordingly, these businesses and regions accounted for seven segments. In 2008, AES&nbsp;Wind Generation, climate solutions, and certain other initiatives were managed by our alternative energy group. The associated revenue, development costs and operational costs were reported under "Corporate and Other" since its results were not material to the presentation of our operating segments. "Corporate and Other" also included corporate overhead costs which are not directly associated with the operations of our seven </FONT><FONT size=2>primary operating segments; interest income and expense; other intercompany charges such as management fees and self-insurance premiums which are fully eliminated in consolidation. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In early 2009, the Company began to implement certain organizational changes in an effort to streamline the organization. The new structure will continue to be organized along our two lines of business, but within three regions instead of four: (1)&nbsp;North America, (2)&nbsp;Latin America&nbsp;&amp; Africa and (3)&nbsp;Europe, Middle East&nbsp;&amp; Asia ("EMEA"). In addition, we will no longer have an alternative energy group. Instead, AES&nbsp;Wind Generation, will be managed as part of our North America region while climate solutions projects will be managed in the region in which they are located. Management is currently evaluating the impact of the reorganization on the Company's externally reported segments beginning with our Quarterly Report on Form&nbsp;10-Q for the quarter ending March&nbsp;31, 2009, as required under SFAS No.&nbsp;131, </FONT><FONT size=2><I>Disclosures about Segments of an Enterprise and Related Information</I></FONT><FONT size=2> ("SFAS No.&nbsp;131"). </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company uses both revenue and gross margin as key measures to evaluate the performance of its segments. Segment revenue includes inter-segment sales related to the transfer of electricity from generation plants to utilities within Latin America. No inter-segment revenue relationships exist in other segments. Gross margin is defined as total revenue less operating expenses including depreciation and amortization and local fixed operating and other overhead costs. Corporate allocations include certain management fees and self insurance activity which are reflected within segment gross margin. All intra-segment activity has been eliminated with respect to revenue and gross margin within the segment; inter-segment activity has been eliminated within the total consolidated results. All balance sheet information for businesses that were discontinued is segregated and is shown in the line "Discontinued Businesses" in the accompanying segment tables. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The tables below present the breakdown of business segment balance sheet and income statement data as of and for the years ended December&nbsp;31, 2008 through 2006: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=140></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=27></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=27></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=27></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=19></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=19></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=19></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=27></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=27></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=27></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>Total Revenue </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>Intersegment </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>External Revenue </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 27pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>Revenue <!-- COMMAND=ADD_SCROPPEDRULE,27pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=26><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Latin America&#151;Generation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,465</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,510</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,615</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(990</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(885</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(789</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,475</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,625</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,826</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Latin America&#151;Utilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,911</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,172</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,552</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(17</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,911</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,155</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,552</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>North America&#151;Generation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,234</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,168</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,928</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,234</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,168</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,928</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>North America&#151;Utilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,079</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,052</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,032</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,079</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,052</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,032</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Europe&nbsp;&amp; Africa&#151;Generation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,160</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>975</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>852</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,160</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>975</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>852</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Europe&nbsp;&amp; Africa&#151;Utilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>782</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>660</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>570</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>782</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>660</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>570</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Asia&#151;Generation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,264</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>817</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>718</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,264</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>817</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>718</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Corp/Other&nbsp;&amp; eliminations</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(825</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(838</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(758</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>990</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>902</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>789</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>165</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>64</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>31</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total Revenue</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16,070</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>13,516</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11,509</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16,070</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>13,516</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11,509</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV> <P style="FONT-FAMILY: times"><FONT size=2><BR></FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=167></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=22></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=22></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=22></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=19></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=19></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=19></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=22></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=22></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=22></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>Total Gross Margin </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>Intersegment </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>External Gross Margin </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 45pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>Gross Margin <!-- COMMAND=ADD_SCROPPEDRULE,45pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=26><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Latin America&#151;Generation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,394</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>955</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,052</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(975</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(853</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(773</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>419</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>102</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>279</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Latin America&#151;Utilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>885</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>865</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>888</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>998</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>875</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>808</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,883</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,740</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,696</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>North America&#151;Generation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>657</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>702</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>610</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>17</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>13</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>674</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>720</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>623</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>North America&#151;Utilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>261</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>313</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>277</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>265</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>316</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>279</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Europe&nbsp;&amp; Africa&#151;Generation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>294</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>275</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>247</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>297</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>279</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>253</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Europe&nbsp;&amp; Africa&#151;Utilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>57</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>63</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>103</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>57</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>64</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>104</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Asia&#151;Generation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>143</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>176</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>186</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>146</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>180</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>191</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Corp/Other&nbsp;&amp; eliminations</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>43</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>56</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(50</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(52</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(62</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(34</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(9</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total Gross Margin</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,707</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,392</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,419</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,707</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,392</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,419</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2><BR></FONT>&nbsp;</P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=157></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=27></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=27></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=27></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=22></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=22></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=22></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=22></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>Total Assets </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>Depreciation and Amortization </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>Capital Expenditures </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=26><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Latin America&#151;Generation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8,229</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,659</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,909</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>168</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>169</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>154</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>889</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>393</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>126</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Latin America&#151;Utilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,181</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8,780</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,297</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>221</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>199</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>182</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>437</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>394</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>313</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>North America&#151;Generation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,412</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,272</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,303</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>195</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>190</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>167</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>133</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>165</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>125</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>North America&#151;Utilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,093</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,836</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,807</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>152</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>142</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>136</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>107</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>202</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>196</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Europe&nbsp;&amp; Africa&#151;Generation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,856</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,773</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,112</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>61</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>74</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>61</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>425</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>662</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>308</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Europe&nbsp;&amp; Africa&#151;Utilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>988</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,020</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>795</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>64</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>58</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>49</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>161</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>87</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>48</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Asia&#151;Generation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,239</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,180</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,072</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>69</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>53</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>55</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>152</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>62</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Discontinued businesses</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>451</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,830</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>17</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>105</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>46</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>100</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Corp/Other&nbsp;&amp; eliminations</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,810</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,482</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,149</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>63</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>40</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>24</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>577</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>449</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>287</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>34,808</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>34,453</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>31,274</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,001</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>942</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>933</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,887</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,460</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,512</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2><BR></FONT>&nbsp;</P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=163></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=27></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=27></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=27></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=22></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=22></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=22></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=22></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>Investment in and Advances&nbsp;to&nbsp;Affiliates </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>Equity in Earnings&nbsp;(Loss) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=17><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Latin America&#151;Generation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>81</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>67</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>59</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>17</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Latin America&#151;Utilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>North America&#151;Generation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>North America&#151;Utilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Europe&nbsp;&amp; Africa&#151;Generation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>230</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>200</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>131</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>28</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Europe&nbsp;&amp; Africa&#151;Utilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Asia&#151;Generation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>407</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>431</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>376</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>43</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>47</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Discontinued businesses</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Corp/Other&nbsp;&amp; eliminations</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>182</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>31</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>24</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(16</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>901</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>730</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>591</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>33</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>76</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>73</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below presents information about the Company's consolidated operations and long-lived assets, by country, for years ended December&nbsp;31, 2008 through 2006 and as of December&nbsp;31, 2008 and 2007, respectively. Revenues are recorded in the country in which they are earned and assets are recorded in the country in which they are located. </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=235></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>Revenues </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Property, Plant&nbsp;&amp; Equipment, net </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=14><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>United States</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,745</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,641</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,573</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,926</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,448</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Non-U.S.</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Brazil</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,501</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,748</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,119</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,206</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,369</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Chile</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,349</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,011</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>594</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,540</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>968</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Argentina</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>949</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>678</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>542</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>446</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>450</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Pakistan</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>607</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>396</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>318</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>204</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>265</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Dominican Republic</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>601</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>476</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>357</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>634</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>651</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>El&nbsp;Salvador</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>484</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>479</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>437</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>255</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>249</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Hungary</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>466</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>344</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>304</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>211</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>241</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Mexico</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>463</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>399</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>185</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>819</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>838</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Ukraine</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>403</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>330</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>269</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>78</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>104</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Cameroon</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>379</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>330</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>300</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>579</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>504</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>United Kingdom</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>342</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>235</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>222</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>308</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>383</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Colombia</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>291</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>213</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>184</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>395</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>393</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Puerto Rico</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>251</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>245</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>234</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>622</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>620</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Kazakhstan</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>234</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>284</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>215</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>56</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>52</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Panama</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>210</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>175</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>144</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>715</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>582</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Sri Lanka</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>184</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>123</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>92</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>79</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>83</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Qatar</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>161</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>178</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>169</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>526</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>552</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Philippines<SUP>(1)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>148</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>731</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Oman</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>105</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>105</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>114</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>321</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>331</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Bulgaria<SUP>(2)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,329</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>542</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other Non-U.S.&nbsp;</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>197</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>126</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>136</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>413</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>349</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total Non-U.S.&nbsp;</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>13,325</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10,875</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8,936</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14,467</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>13,526</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16,070</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>13,516</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11,509</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>21,393</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>19,974</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Acquired in May 2008, revenues represent results for a partial year. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(2)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Currently under development, facility is not operational at this time. </FONT></DD></DL> <P style="FONT-FAMILY: times" align=center><FONT size=2>206</FONT></P> <P style="FONT-FAMILY: times" align=center><FONT size=2></FONT>&nbsp;</P> <P style="FONT-FAMILY: times" align=center><FONT size=2></FONT>&nbsp;</P> <P style="FONT-FAMILY: times" align=center><FONT size=2></FONT>&nbsp;</P> <P style="FONT-FAMILY: times" align=center><FONT size=2></FONT>&nbsp;</P> <P style="FONT-FAMILY: times" align=center><FONT size=2></FONT>&nbsp;</P> <P style="FONT-FAMILY: times" align=center><FONT size=2></FONT>&nbsp;</P> <P style="FONT-FAMILY: times" align=center><FONT size=2></FONT>&nbsp;</P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>13. BENEFIT PLANS </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DEFINED CONTRIBUTION PLAN</B></FONT><FONT size=2>&#151;The Company sponsors one defined contribution plan, qualified under section&nbsp;401 of the Internal Revenue Code. All employees of the Company are eligible to participate in the plan except for those employees who are not covered by their collective bargaining agreement. The plan provides for Company matching contributions in Company stock, other Company contributions at the discretion of the Compensation Committee of the Board of Directors in Company stock, and discretionary tax deferred contributions from the participants. Participants are fully vested in their own contributions and the Company's matching contributions. Participants vest in other Company contributions ratably over a five-year period ending on the fifth anniversary of their hire date. Company contributions to the plans were approximately $21&nbsp;million, $22&nbsp;million, and $21&nbsp;million for the years ended December&nbsp;31, 2008, 2007, and 2006, respectively. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DEFINED BENEFIT PLANS</B></FONT><FONT size=2>&#151;Certain of the Company's subsidiaries have defined benefit pension plans covering substantially all of their respective employees. Pension benefits are based on years of credited service, age of the participant and average earnings. Of the 24 defined benefit plans, three are at U.S.&nbsp;subsidiaries and the remaining plans are at foreign subsidiaries. In May&nbsp;2007, the Company sold EDC; the impact of this disposition is reflected in the tables below in the Plan settlements line item for the year ended December&nbsp;31, 2007. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company adopted the recognition provisions of SFAS No.&nbsp;158, effective December&nbsp;31, 2006, which requires recognition of an asset or liability in the balance sheet reflecting the funded status of pension and other post-retirement benefits plans with current-year changes in the funded status </FONT><FONT size=2>recognized in stockholders' equity. The Company recognized a cumulative adjustment to adopt the recognition provisions of SFAS No.&nbsp;158 as of December&nbsp;31, 2006. AES adopted the measurement date provisions of the standard, which require a year-end measurement date of plan assets and obligations for all defined benefit plans, for the fiscal year ended December&nbsp;31, 2008 and accordingly, recognized a cumulative adjustment of $1&nbsp;million to retained earnings as of December&nbsp;31, 2008. Prior to the year ended December&nbsp;31, 2008, seven of the Company's defined benefit plans used an early measurement date to value their plan assets and obligations. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table reconciles the Company's funded status, both domestic and foreign, as of December&nbsp;31, 2008 and 2007: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=307></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=20></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=28></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>U.S. </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Foreign </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>U.S. </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Foreign </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>CHANGE IN PROJECTED BENEFIT OBLIGATION:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Benefit obligation at beginning of year</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>513</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,358</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>555</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,213</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Adjustments due to adoption of SFAS No.&nbsp;158 measurment date provisions</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Service cost</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Interest cost</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>32</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>453</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>30</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>393</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Employee contributions</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>20</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>15</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Plan amendments</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Plan settlements</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(58</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Benefits paid</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(32</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(377</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(29</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(344</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net transfer in</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Actuarial loss (gain)</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>26</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>138</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(52</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>459</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Effect of foreign currency exchange rate change</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,106</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>669</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Benefit obligation as of December&nbsp;31</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>557</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,498</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>513</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,358</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>CHANGE IN PLAN ASSETS:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Fair value of plan assets at beginning of year</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>430</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,587</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>422</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,538</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Actual return on plan assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(129</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>268</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>34</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>762</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Employer contributions</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>59</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>138</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>113</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Employee contributions</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>20</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>15</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Plan settlements</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(40</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Benefits paid</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(32</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(377</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(29</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(344</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Acquisitions/divestitures</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Effect of foreign currency exchange rate change</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(884</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>542</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Fair value of plan assets as of December&nbsp;31</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>327</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,752</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>430</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,587</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>RECONCILIATION OF FUNDED STATUS</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Funded status as of December&nbsp;31</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(230</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(746</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(83</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(771</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the amounts recognized on the Consolidated Balance Sheets, both domestic and foreign, as of December&nbsp;31, 2008 and 2007: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=314></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=20></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=23></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=23></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>U.S. </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Foreign </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>U.S. </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Foreign </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>AMOUNTS RECOGNIZED ON THE CONSOLIDATED BALANCE SHEETS</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Noncurrent assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>22</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>50</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Accrued benefit liability&#151;current</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Accrued benefit liability&#151;long-term</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(230</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(765</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(83</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(819</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net amount recognized at end of year</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(230</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(746</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(83</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(771</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the Company's accumulated benefit obligation, both domestic and foreign, as of December&nbsp;31, 2008 and 2007: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=294></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>U.S. </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Foreign </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>U.S. </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Foreign </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Accumulated Benefit Obligation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>541</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,335</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>510</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,323</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Information for pension plans with an accumulated benefit obligation in excess of plan assets:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Projected benefit obligation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>557</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,336</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>513</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,173</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Accumulated benefit obligation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>541</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,179</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>510</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,143</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Fair value of plan assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>327</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,570</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>430</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,351</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Information for pension plans with a projected benefit obligation in excess of plan assets:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Projected benefit obligation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>557</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,339</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>513</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,173</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Fair value of plan assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>327</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,571</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>430</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,351</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR></TBODY></TABLE></DIV> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below demonstrates the significant weighted average assumptions used in the calculation of benefit obligation and net periodic benefit cost, both domestic and foreign, as of December&nbsp;31, 2008 and 2007: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=300></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=14></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=23></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=14></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=23></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>U.S. </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Foreign </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>U.S. </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Foreign </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Benefit Obligation:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Discount rates</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6.26</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11.78</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6.48</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11.25</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Rates of compensation increase</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4.75</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5.97</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4.75</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6.93</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Periodic Benefit Cost:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Discount rate</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6.48</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11.25</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5.64</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11.73</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Expected long-term rate of return on plan assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7.77</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12.31</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8.00</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12.41</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Rate of compensation increase</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4.75</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6.93</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4.75</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6.98</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A subsidiary of the Company has a defined benefit obligation of $528&nbsp;million and $482&nbsp;million at December&nbsp;31, 2008 and 2007, respectively, and uses salary bands to determine future benefit costs rather than a rate of compensation increases. Rates of compensation increases in the table above do not include amounts related to this specific defined benefit plan. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company establishes its estimated long-term return on plan assets considering various factors, which include the targeted asset allocation percentages, historic returns and expected future returns. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The measurement of pension obligations, costs and liabilities is dependent on a variety of assumptions. These assumptions include estimates of the present value of projected future pension payments to all plan participants, taking into consideration the likelihood of potential future events such as salary increases and demographic experience. These assumptions may have an effect on the amount and timing of future contributions. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The assumptions used in developing the required estimates include the following key factors: </FONT></P> <UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Discount rates; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Salary growth; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Retirement rates; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Inflation; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Expected return on plan assets; and </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Mortality rates. </FONT></DD></DL></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The effects of actual results differing from the Company's assumptions are accumulated and amortized over future periods and, therefore, generally affect our recognized expense in such future periods. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sensitivity of our pension funded status and stockholders' equity to the indicated increase or decrease in the discount rate and long-term rate of return on plan assets assumptions is shown below. Note that these sensitivities may be asymmetric, and are specific to the base conditions at year-end </FONT><FONT size=2>2008. They also may not be additive, so the impact of changing multiple factors simultaneously cannot be calculated by combining the individual sensitivities shown. The December&nbsp;31, 2008 funded status is affected by December&nbsp;31, 2008 assumptions. Pension expense for 2008 is affected by December&nbsp;31, 2007 assumptions. The impact on pension expense from a one percentage point change in these assumptions is shown in the table below (in&nbsp;millions): </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=346></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Increase of 1% in the discount rate</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(10</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Decrease of 1% in the discount rate</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>15</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Increase of 1% in the long-term rate of return on plan assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(39</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Decrease of 1% in the long-term rate of return on plan assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>39</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the components of the net periodic benefit cost, both domestic and foreign, for the years ended December&nbsp;31, 2008 through 2006: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=250></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=23></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=23></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=23></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=17><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 147pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>Components of Net Periodic Benefit Cost: <!-- COMMAND=ADD_SCROPPEDRULE,147pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>U.S. </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Foreign </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>U.S. </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Foreign </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>U.S. </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Foreign </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=17><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Service cost</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Interest cost</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>32</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>453</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>30</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>393</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>30</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>356</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Expected return on plan assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(34</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(412</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(33</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(333</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(29</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(255</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Amortization of initial net asset</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Amortization of prior service cost</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Amortization of net loss</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Curtailment gain recognized</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Settlement gain recognized</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total pension cost</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>51</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>13</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>59</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>107</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the year ended December&nbsp;31, 2006, $(102)&nbsp;million (prior to the adjustment for the adoption of SFAS No.&nbsp;158), was included in other comprehensive income arising from a change in the additional minimum pension liability. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the amounts reflected in Accumulated Other Comprehensive Income on the Consolidated Balance Sheet as of December&nbsp;31, 2008 that have not yet been recognized as components of net periodic benefit cost: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=291></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=11></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=23></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=11></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=23></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>December&nbsp;31, 2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Accumluated Other Comprehensive Income </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Amounts expected to be reclassified to earnings in next fiscal year </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>U.S. </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Foreign </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>U.S. </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Foreign </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Initial net transition asset</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Prior service cost</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Unrecognized net actuarial loss</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(393</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(392</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the Company's target allocation for 2008 and pension plan asset allocation, both domestic and foreign, as of December&nbsp;31, 2008 and 2007: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=165></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=50></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=50></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>Percentage of Plan Assets<BR>as of December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=3><FONT size=1><B>Target Allocations </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 53pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>Asset Category <!-- COMMAND=ADD_SCROPPEDRULE,53pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle><FONT size=1><B>U.S. </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle><FONT size=1><B>Foreign </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>U.S. </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Foreign </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>U.S. </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Foreign </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Equity securities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>27% - 74%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>29% - 30%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>54.57</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>22.24</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>60.89</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>24.64</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Debt securities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>26% - 54%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>65%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>37.08</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>72.30</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>28.87</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>69.40</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Real estate</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>0% - 9%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>1%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1.91</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1.23</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.84</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1.28</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>0% - 9%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>4% - 5%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6.44</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4.23</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7.40</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4.68</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total pension cost</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=middle><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>100.00</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>100.00</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>100.00</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>100.00</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The U.S.&nbsp;plans seek to achieve the following long-term investment objectives: </FONT></P> <UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Maintenance of sufficient income and liquidity to pay retirement benefits and other lump sum payments; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Long-term rate of return in excess of the annualized inflation rate; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Long-term rate of return (net of relevant fees that meet or exceed the assumed actuarial rate); </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Long-term competitive rate of return on investments, net of expenses, that is equal to or exceeds various benchmark rates. </FONT></DD></DL></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consistent with the above, the allocation is reviewed periodically to determine a suitable asset allocation which seeks to control risk through portfolio diversification and takes into account, among other possible factors, the above-stated objectives, in conjunction with current funding levels, cash flow conditions and economic and industry trends. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The investment strategy of the foreign plans seeks to maximize return on investment while minimizing risk. Our assumed asset allocation uses a lower exposure to equities to closely match </FONT><FONT size=2>market conditions and near term forecasts. Some of the Company's plans hold investments that are illiquid. These assets are held by our subsidiaries in Brazil and total $279&nbsp;million and represent 9% of total plan assets at December&nbsp;31, 2008. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the scheduled cash flows for U.S. and foreign expected employer contributions and expected future benefit payments, both domestic and foreign: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=306></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>U.S. </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Foreign </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Expected employer contribution in 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>21</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>133</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Expected benefit payments for fiscal year ending:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>32</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>297</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2010</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>32</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>324</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2011</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>33</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>339</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2012</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>34</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>352</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2013</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>36</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>366</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2014&nbsp;-&nbsp;2018</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>202</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,034</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR></TBODY></TABLE></DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>6. FAIR VALUE OF FINANCIAL INSTRUMENTS </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fair value of current financial assets, current financial liabilities, debt service reserves and other deposits is estimated to be equal to their reported carrying amounts. The fair value of non-recourse debt, excluding capital leases, is estimated differently based upon the type of loan. For variable rate loans, carrying value approximates fair value. For fixed rate loans, the fair value is estimated using quoted market prices or discounted cash flow analyses. See Note&nbsp;10&#151;Long-Term Debt for additional information on the fair value and carrying value of debt. The fair value of interest rate swap, cap and floor agreements, foreign currency forwards and swaps, and energy derivatives is the estimated net amount that the Company would receive or pay to terminate the agreements as of the balance sheet date. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The estimated fair values of the Company's assets and liabilities have been determined using available market information. The estimates are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In September&nbsp;2006, the FASB issued SFAS No.&nbsp;157, which provided a framework for measuring fair value and established a fair value hierarchy of the valuation techniques used to measure the fair value of financial assets and liabilities and expands disclosures about fair value measurement. The </FONT><FONT size=2>Company adopted the provisions of SFAS No.&nbsp;157 as of January&nbsp;1, 2008, for financial assets and liabilities. Although the adoption of SFAS No.&nbsp;157 did not materially impact the Company's financial condition, results of operations or cash flow, additional disclosures about our fair value measurements are discussed below. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><B>Valuation Techniques: </B></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SFAS No.&nbsp;157 describes three main approaches to measuring the fair value of assets and liabilities: (1)&nbsp;market approach; (2)&nbsp;income approach and (3)&nbsp;cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The Company does not currently determine the fair value of any of our financial assets and liabilities using the cost approach. Financial assets and liabilities that are measured at fair value on a recurring basis at AES fall into two broad categories: investments and derivatives. Our investments are generally measured at fair value using the market approach and our derivatives are valued using the income approach. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><B><I>Investments </I></B></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These investments generally consist of debt and equity securities. Equity securities are adjusted to fair value using quoted market prices. Debt securities primarily consist of certificates of deposit, government debt securities and money market funds held by our Brazilian subsidiaries. The implementation of SFAS No.&nbsp;157 did not result in a material change in the fair value of these investments due to the fact that these investments are primarily held by highly rated institutions and governmental agencies and therefore, the consideration of counterparty credit risk did not have a material impact on the determination of fair value. Returns and pricing on these instruments are generally indexed to the CDI (Brazilian equivalent to LIBOR), Selic (overnight borrowing rate) or IGPM (inflation) rates in Brazil and are adjusted based on the banks' assessment of the specific businesses. Fair value is determined based on comparisons to market data obtained for similar assets and are considered Level&nbsp;2 inputs. The Company holds some auction rate securities through IPALCO Enterprises&nbsp;Inc. ("IPALCO"), a U.S.&nbsp;subsidiary in Indiana. The fair value of these securities was $2&nbsp;million as of December&nbsp;31, 2008. Based on the current credit environment, these were evaluated for potential impairment and were determined to not be impaired at this time. For more detail regarding the fair value of investments see Note&nbsp;4&#151;Investments in Marketable Securities. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><B><I>Derivatives </I></B></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When deemed appropriate, the Company manages its risk from interest and foreign currency exchange rate and commodity price fluctuations through the use of derivative financial assets and liabilities. The Company's derivatives are primarily interest rate swaps on non-recourse debt to establish a fixed rate on variable rate debt, foreign exchange instruments to hedge against currency fluctuations and derivatives or embedded derivatives associated with commodity contracts. The Company's subsidiaries are counterparties to various interest rate swaps, interest rate options, foreign currency </FONT><FONT size=2>swaps and commodity and embedded derivatives in certain agreements, generally PPAs. The fair value of our derivative portfolio was determined using internal valuation models, most of which are based on observable market inputs including interest rate curves and forward and spot prices for currencies and commodities. The primary pricing inputs used in determining the fair value of our interest rate swaps and our foreign currency exchange swaps are LIBOR swap rates and forward foreign exchange curves with the same duration as the instrument as reported in published information provided by pricing services. For each derivative, the projected forward swap rate is used to determine the stream of cash flows over the remaining term of the contract. The cash flows are then discounted using a spot discount rate to determine the fair value. To the extent that management can estimate the fair value of these assets or liabilities without the use of significant unobservable inputs, these derivatives are included in Level&nbsp;2. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative assets and liabilities included in Level&nbsp;3 are also valued using the income approach. Consistent with our Level&nbsp;2 financial assets and liabilities, the stream of cash flows over the remaining term of the contract is calculated. The cash flows are then discounted using a spot discount rate to determine the fair value. In certain instances, the published curve may not extend through the remaining term of the contract and management must make assumptions to extrapolate the curve. Additionally, in the absence of quoted prices, we may rely on "indicative pricing" quotes from financial institutions to input into our valuation model for certain of our foreign currency swaps. These indicative pricing quotes do not constitute either a bid or ask price and therefore are not considered observable market data. These fair value measurements also include adjustments for credit risk. The magnitude of the credit risk adjustment for contracts with certain counterparties resulted in a Level&nbsp;3 classification for these contracts as of December&nbsp;31, 2008. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><B>Fair Value Considerations: </B></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In determining the fair value of our financial instruments, the Company considers the source of observable market data inputs, liquidity of the instrument, the credit risk and risk of nonperformance of itself or the counterparty to the contract. The conditions and criteria used to assess these factors are: </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Sources of Market Assumptions: </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company derives most of its financial instrument market assumptions from market efficient data sources (e.g.,&nbsp;Bloomberg and Platt's). In some cases, where market data is not readily available, management uses comparable market sources and empirical evidence to derive market assumptions to determine a financial instrument's fair value. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Market liquidity: </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Market liquidity is assessed by the Company based on criteria as to whether the financial instrument participates in an active or inactive market. An active market can be defined as a spot market or settlement mechanism environment and also a potential forward/futures market that is based on the activity in the forward/futures market. A financial instrument is considered to be in an active market if the prices are fully transparent to the market participants, can be measured by market bid and ask quotes, the market has a relatively large proportion of trading volume as compared to the Company's current trading volume and the market has a significant number of market participants that </FONT><FONT size=2>will allow the market to rapidly absorb the quantity of the assets traded without significantly affecting the market price. Other factors the Company considers when determining whether a market is active or inactive include the presence of government or regulatory control over pricing that could make it difficult to establish a market based price upon entering into a transaction. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Nonperformance risk: </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The impact of nonperformance risk that includes credit risk considers changes in current market conditions, readily available information on nonperformance risk, letters of credit, collateral, other arrangements available and the nature of master netting arrangements. The Company and its subsidiaries are counterparties to various interest rate swaps, interest rate options, foreign currency swaps, derivatives and embedded derivatives which subject the Company to nonperformance risk. The financial instruments held at the subsidiary level are generally non-recourse to the Parent Company. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonperformance risk on the investments held by the Company is incorporated in the investment's exit price that is derived from quoted market data that is used to mark-to-market the investment. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonperformance risk on the Company's derivative instruments is an adjustment to the initial asset/liability fair value position that is derived from internally developed valuation models that utilize observable market inputs such as LIBOR interest swap rates, foreign exchange forward curves, and market commodity pricing or, in certain cases, utilize management assumptions to generate extrapolated inputs from observable market data. The Company adjusts for nonperformance risk by deducting a credit valuation adjustment ("CVA") that calculates counterparty risk based on the counterparty's margin or debt spread and the tenor of the respective derivative instrument. The counterparty for a derivative asset position is considered to be the bank or government sponsored banking entity or counterparty to the PPA of the respective subsidiary. The CVA for asset positions is based on the counterparty's credit ratings and debt spreads or, in the absence of readily obtainable credit information, the respective country debt spreads is used as a proxy. The counterparty for a derivative liability position is primarily the Parent Company or the subsidiary. The CVA for liability positions is based on the Parent Company's or the subsidiary's current debt spread, replacement margin with lenders, or in the absence of readily obtainable credit information, the debt spread of the subsidiary's offtaker or the respective country debt spreads are used as a proxy. If the instrument is recourse to the Parent Company, the Parent Company's current debt spread is used to adjust for nonperformance risk. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All derivative instruments are analyzed individually and are subject to unique risk exposures. The aggregate counterparty credit risk adjustments applied to the Company's derivative asset position was $39&nbsp;million for the year ended December&nbsp;31, 2008 decreasing the asset position. The aggregate credit risk adjustments applied to the Company's derivative liability position was $105&nbsp;million for the year ended December&nbsp;31, 2008 decreasing the liability position. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Assets and Liabilities at Fair Value </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the carrying value and fair value of the Company's financial assets and liabilities as of December&nbsp;31, 2008 and 2007. </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=259></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Carrying<BR>Amount </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Fair<BR>Value<SUP>(1)</SUP> </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Carrying<BR>Amount </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Fair<BR>Value<SUP>(1)</SUP> </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>Assets</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Marketable securities<SUP>(2)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,413</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,413</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,374</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,374</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Derivatives<SUP>(3)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>350</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>350</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>199</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>199</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,763</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,763</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,573</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,573</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>Liabilities</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Debt<SUP>(4)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18,091</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>15,588</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>17,990</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>17,691</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Derivatives<SUP>(3)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>534</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>534</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>318</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>318</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total liabilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18,625</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16,122</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18,308</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18,009</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>See the Company's fair value policy in Note&nbsp;1 for further detail regarding the fair value hierarchy. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(2)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>See Note&nbsp;4&#151;Investments in Marketable Securities for additional information regarding the classification of marketable securities in the Fair Value Hierarchy in accordance with SFAS No.&nbsp;157. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(3)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>See Note&nbsp;5&#151;Derivative Instruments for additional information regarding the classification of derivative instruments in the Fair Value Hierarchy in accordance with SFAS No.&nbsp;157. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(4)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>See Note&nbsp;10&#151;Long-Term Debt for additional information regarding the fair value of debt. </FONT></DD></DL></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>22. ACQUISITIONS AND DISPOSITIONS </B></FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Acquisitions </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In April&nbsp;2008, the Company completed the purchase of a 92% interest in a 660 gross&nbsp;MW coal-fired thermal power generation facility in Masinloc, Philippines ("Masinloc") from the Power Sector Assets&nbsp;&amp; Liabilities Management Corporation, a state enterprise, for $930&nbsp;million in cash. Project financing of $665&nbsp;million was obtained from International Finance Corporation ("IFC"), the Asian Development Bank and a consortium of commercial banks. IFC is also an 8% minority shareholder in Masinloc. AES immediately embarked upon a comprehensive rehabilitation program to improve the output, reliability and general condition of the plant. Environmental clean-up costs have been estimated pending a detailed study. Including transaction costs and completion of the planned upgrade program to improve environmental and operational performance, the total project cost is estimated to be $1.1&nbsp;billion. Beginning on the acquisition date in April&nbsp;2008, the results of operations of Masinloc are reflected in the Consolidated Financial Statements. The Company finalized the purchase price allocation of this acquisition in the fourth quarter of 2008. </FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Dispositions </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;30, 2008, the Company completed the sale of two of its wholly-owned subsidiaries in Kazakhstan, Ekibastuz, a coal-fired generation plant, and Maikuben, a coal mine. Total consideration received in the transaction was approximately $1.1&nbsp;billion with additional potential earn-out provisions, a three-year management fee arrangement and a capital expenditures program bonus of up to approximately $380&nbsp;million. The earn-out bonus for 2008 is primarily based on EBITDA, a non-GAAP measure, and the calculation is currently being finalized. If the business meets the EBITDA threshold, the earn-out bonus could range from $60&nbsp;million to $105&nbsp;million depending on EBITDA. If the business does not meet the minimum EBITDA threshold, no earn-out bonus is paid. No earn-out provision has been recognized as of December&nbsp;31, 2008, as the Company has not completed discussions with the counterparty relative to the calculation to permit recognition under U.S.&nbsp;GAAP. The earn-out will be recognized when it becomes determinable and probable. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of AES's continuing involvement in the management and operations of the businesses through its three-year management and operation agreement, the results of operations from Ekibastuz and Maikuben were included in income from continuing operations through the disposition date. Income earned as a result of the three-year management and operation agreement was recognized as management fee income for all periods subsequent to the disposition. The management fee income earned for the year ended December&nbsp;31, 2008 was $12&nbsp;million and is included as revenue in the Europe&nbsp;&amp; Africa Generation segment. A portion of the sale proceeds was used to pay down recourse debt as discussed in Note&nbsp;10&#151;Long-Term Debt. The Company plans to use the remaining proceeds </FONT><FONT size=2>from the sale of these businesses to fund operations, invest in growth initiatives, or to pay down additional debt. Excluding income earned under the three-year management and operation agreement subsequent to the sale of the business in May&nbsp;2008, Ekibastuz and Maikuben generated revenue of $114&nbsp;million, $106&nbsp;million and $78&nbsp;million for the years ended December&nbsp;31, 2008, 2007 and 2006, respectively. </FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>20. INCOME TAXES </B></FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><B>INCOME TAX PROVISION </B></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the expense for income taxes on continuing operations, for the years ended December&nbsp;31, 2008, 2007 and 2006: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=271></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Federal:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Current</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(50</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Deferred</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>122</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>39</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>State</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Current</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Deferred</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(12</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Current</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>611</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>475</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>455</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Deferred</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>37</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>187</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(70</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>774</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>679</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>359</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <UL> <P style="FONT-FAMILY: times"><FONT size=2><B>EFFECTIVE AND STATUTORY RATE RECONCILIATION </B></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes a reconciliation of the U.S.&nbsp;statutory federal income tax rate to the Company's effective tax rate, as a percentage of income before taxes for the years ended December&nbsp;31, 2008, 2007 and 2006: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=293></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Statutory Federal tax rate</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>35</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>35</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>35</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>State taxes, net of Federal tax benefit</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Taxes on foreign earnings</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Valuation allowance</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(22</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Cumulative translation allowance</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>21</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Gain on sale of Kazakhstan businesses</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(12</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Taxes on cash repatriation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other&#151;net</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Effective tax rate</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>28</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>45</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>39</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>DEFERRED INCOME TAXES</B></FONT><FONT size=2>&#151;Deferred income taxes reflect the net tax effects of (a)&nbsp;temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and (b)&nbsp;operating loss and tax credit carry forwards. These items are stated at the enacted tax rates that are expected to be in effect when taxes are actually paid or recovered. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2008, the Company had federal net operating loss carry forwards for tax purposes of approximately $1.6&nbsp;billion which expire from 2020 to 2027. Approximately $68&nbsp;million of the net operating loss carry forward relates to stock option deductions and will be recorded to additional paid-in capital when realized. The Company also had federal general business tax credit carry forwards for tax purposes of approximately $18&nbsp;million expiring primarily from 2021 to 2028, and federal alternative minimum tax credits of approximately $15&nbsp;million that carry forward without expiration. The Company had state net operating loss carry forwards as of December&nbsp;31, 2008 of approximately $3.0&nbsp;billion expiring in years 2012 to 2028. The Company also has federal and state net operating loss carry forwards of $315&nbsp;million expiring from 2025 to 2026 for a U.S.&nbsp;entity that is not included in its U.S.&nbsp;consolidated tax group. As of December&nbsp;31, 2008, the Company had foreign net operating loss carry forwards of approximately $2.8&nbsp;billion that expire at various times beginning in 2009 and some of which carry forward without expiration, and tax credits available in foreign jurisdictions of approximately $37&nbsp;million, $5&nbsp;million of which expire in 2009 to 2011, $21&nbsp;million of which expire in 2012 to 2019 and $11&nbsp;million of which carry forward without expiration. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The valuation allowance decreased by $210&nbsp;million during 2008 to $1.4&nbsp;billion at December&nbsp;31, 2008. This net decrease was primarily the result of decreases in deferred tax assets at certain Brazilian subsidiaries that required corresponding decreases in the valuation allowances. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The valuation allowance increased by $178&nbsp;million during 2007 to $1.6&nbsp;billion at December&nbsp;31, 2007. This net increase was primarily the result of increases in deferred tax assets at certain Brazilian subsidiaries that required corresponding increases in the valuation allowances. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The valuation allowance decreased by $50&nbsp;million during 2006 to $1.4&nbsp;billion at December&nbsp;31, 2006. This net decrease was primarily the result of the removal of valuation allowance against deferred tax assets at foreign subsidiaries. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company believes that it is more likely than not that the remaining deferred tax assets as shown below will be realized when future taxable income is generated through the reversal of existing taxable temporary differences and income that is expected to be generated by businesses that have long-term contracts or a history of generating taxable income. The Company is monitoring the utilization of its deferred tax asset for its U.S.&nbsp;consolidated net operating loss carryforward. Although management believes it is more likely than not that this deferred tax asset will be realized through generation of sufficient taxable income prior to expiration of the loss carry forwards, such realization is not assured. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the deferred tax assets and liabilities, as of December&nbsp;31, 2008 and 2007: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=291></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=28></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=28></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Differences between book and tax basis of property</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,673</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,622</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other taxable temporary differences</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>326</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>248</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total deferred tax liability</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,999</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,870</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Operating loss carry forwards</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,214</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,427</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Capital loss carry forwards</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(298</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(362</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Bad debt and other book provisions</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(495</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(614</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Retirement costs</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(169</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(184</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Tax credit carry forwards</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(70</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(85</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Cumulative translation allowances</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(240</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(215</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other deductible temporary differences</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(482</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(299</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total gross deferred tax asset</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,968</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3,186</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Less: valuation allowance</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,409</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,619</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total net deferred tax asset</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,559</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,567</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net deferred tax liability</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>440</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>303</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company considers undistributed earnings of certain foreign subsidiaries to be indefinitely reinvested outside of the United States and, accordingly, no U.S.&nbsp;deferred taxes have been recorded with respect to such earnings as allowed under APB No.&nbsp;23, </FONT><FONT size=2><I>Accounting for Income Taxes&#151;Special Areas</I></FONT><FONT size=2>. Should the earnings be remitted as dividends, the Company may be subject to additional U.S.&nbsp;taxes, net of allowable foreign tax credits. It is not practicable to estimate the amount of any additional taxes which may be payable on the undistributed earnings. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from operations in certain countries is subject to reduced tax rates as a result of satisfying specific commitments regarding employment and capital investment. The Company's income tax benefits related to the tax status of these operations are estimated to be $46&nbsp;million, $56&nbsp;million and $42&nbsp;million for the years ended December&nbsp;31, 2008, 2007 and 2006, respectively. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the income (loss) from continuing operations, before income taxes, net equity in earnings of affiliates and minority interest, for the years ended December&nbsp;31, 2008, 2007 and 2006: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=266></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>U.S.&nbsp;</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(314</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(165</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(49</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Non-U.S.&nbsp;</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,065</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,686</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>963</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,751</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,521</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>914</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the third and fourth quarters of 2008, the Company implemented a planning strategy at&nbsp;Termoelectricia del Golfo and&nbsp;Termoelectrica del Pe&#241;oles, respectively. This strategy resulted in a deferred tax benefit of approximately $47&nbsp;million. The benefit is a partial reversal of a $52&nbsp;million deferred tax charge that was recorded in the fourth quarter of 2007 for the Mexican law change that established the Flat Rate Business Tax ("IETU"). </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><B>UNCERTAIN TAX POSITIONS </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Uncertain tax positions have been classified as non-current income tax liabilities unless expected to be paid in one year. The Company's policy for interest and penalties related to income tax exposures is to recognize interest and penalties as a component of the provision for income taxes in the Consolidated Statements of Operations. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2008 and 2007, the total amount of gross accrued income tax related interest included in the Consolidated Balance Sheets was $25&nbsp;million and $29&nbsp;million, respectively. The total amount of gross accrued income tax related penalties included in the Consolidated Balance Sheet as of December&nbsp;31, 2008 and 2007 was $5&nbsp;million and $8&nbsp;million, respectively. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The total expense for interest related to unrecognized tax benefits for the years ended December&nbsp;31, 2008 and 2007 amounted to $2&nbsp;million and $15&nbsp;million, respectively. For the years ended December&nbsp;31, 2008 and 2007, the total (benefit) expense for penalties related to unrecognized tax benefits amounted to $(2)&nbsp;million and $4&nbsp;million, respectively. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are potentially subject to income tax audits in numerous jurisdictions in the U.S. and internationally until the applicable statute of limitation expires. Tax audits by their nature are often </FONT><FONT size=2>complex and can require several years to complete. The following is a summary of tax years potentially subject to examination in the significant tax and business jurisdictions in which we operate: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=247></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=115></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 42pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>Jurisdiction <!-- COMMAND=ADD_SCROPPEDRULE,42pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Tax Years Subject to Examination </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Argentina</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2003-2008</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Brazil</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2003-2008</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Cameroon</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2007-2008</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Chile</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1998-2008</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>El&nbsp;Salvador</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2005-2008</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>United Kingdom</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1999-2008</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>United States (Federal)</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1992-2008</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2008 and 2007, the total amount of unrecognized tax benefits was $555&nbsp;million and $590&nbsp;million, respectively. The total amount of unrecognized tax benefits that would benefit the effective tax rate as of December&nbsp;31, 2008 and 2007 is $527&nbsp;million and $533&nbsp;million, respectively, of which $131&nbsp;million and $144&nbsp;million, respectively, would be in the form of tax attributes that would attract a full valuation allowance. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The total amount of unrecognized tax benefits anticipated to result in a net decrease of unrecognized tax benefits within 12&nbsp;months of December&nbsp;31, 2008 is estimated to be between $20&nbsp;million and $27&nbsp;million. The estimated decrease is primarily due to anticipated audit closures, other tax payments and lapses in statutes of limitations. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December&nbsp;31, 2008 and 2007: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=313></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Balance at January&nbsp;1</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>590</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>559</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Additions for current year tax positions</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Additions for tax positions of prior years</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>80</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>39</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Reductions for tax positions of prior years</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(26</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(21</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Effects of foreign currency translation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(74</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Settlements</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(18</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(22</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Lapse of statute of limitations</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Balance at December&nbsp;31</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>555</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>590</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company and certain of its subsidiaries are currently under examination by the relevant taxing authorities for various tax years. The Company regularly assesses the potential outcome of these examinations in each of the taxing jurisdictions when determining the adequacy of the amount of unrecognized tax benefit recorded. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, we believe we have appropriately accrued for our uncertain tax benefits. However, audit outcomes and the timing of audit settlements and future events that would impact our previously recorded unrecognized tax benefits and the range of anticipated increases or decreases in unrecognized tax benefits are subject to significant uncertainty. It is possible </FONT><FONT size=2>that the ultimate outcome of current or future examinations may exceed current unrecognized tax benefits in amounts that could be material, but cannot be estimated as of December&nbsp;31, 2008. Our effective tax rate and net income in any given future period could therefore be materially impacted. </FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>27. SUBSEQUENT EVENTS </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December&nbsp;23, 2008, the local Chilean SEC approved Gener's share issuance of approximately 945&nbsp;million shares at a price of $162.50 Chilean Pesos. The proceeds of the share issuance was $246&nbsp;million and Gener anticipates using these proceeds for future expansion plans, working capital and other operating needs. The preemptive rights period began on January&nbsp;7, 2009 remained open for 30&nbsp;days and closed on February&nbsp;5, 2009. During the preemptive rights period AES, through its wholly-owned subsidiary, Cachagua, paid $175&nbsp;million to maintain its current ownership percentage of approximately 70.6%. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;9, 2009, the government of the Dominican Republic, the government-owned power companies and the power companies sector ("generation companies"), signed two Memorandums of Understanding (each an "MOU"). The first MOU provides for the settlement of outstanding 2008 accounts receivables ("2008&nbsp;A/R") held by the generation companies from distribution companies through the payment of government-issued bonds of which the Company's three generation businesses have been allocated $110&nbsp;million. This MOU also states that the bonds can be used to offset fiscal taxes, but that element will need to be approved by the National Congress of the Dominican Republic during their first legislative session of 2009. The second MOU acknowledges that the bond payment does not fully satisfy the outstanding 2008&nbsp;A/R balance. The residual amount outstanding after the bond payment will be fully settled by the distribution companies, within a timeframe to be negotiated in the near future. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is AES' intention to accept these bonds as settlement for approximately $110&nbsp;million of outstanding 2008&nbsp;A/R, under the assumption that the bonds will have the ability to offset fiscal taxes. The Company's businesses will have approximately $58&nbsp;million of 2008&nbsp;A/R outstanding after the bond payment that will be subject to the terms of the second MOU. The intention of the distribution companies is to pay approximately $35&nbsp;million of these receivables in 2009. Therefore, AES has appropriately reclassified $23&nbsp;million to long-term receivables on the Company's Consolidated Balance Sheet as of December&nbsp;31, 2008. </FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>4. INVESTMENTS IN MARKETABLE SECURITIES </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the Company's investments in marketable debt and equity securities classified as trading and available-for-sale as of December&nbsp;31, 2008 and 2007 by type of investment and by level within the fair value hierarchy in accordance with SFAS No.&nbsp;157. Financial assets and liabilities have been classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the determination of the fair value of the assets and liabilities and their placement within the fair value hierarchy levels. </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=237></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=32></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=32></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=32></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=14><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Level&nbsp;1<SUP>(1)</SUP> </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Level&nbsp;2<SUP>(1)</SUP> </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Level&nbsp;3<SUP>(1)</SUP> </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Total </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Total </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=14><FONT size=1><B>(in millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>AVAILABLE-FOR-SALE:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Unsecured debentures<SUP>(2)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>674</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>674</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>573</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Certificates of deposit<SUP>(2)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>493</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>493</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>147</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Government debt securities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>32</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>32</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>268</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Mutual funds</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>273</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Common stock</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>42</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Money market funds</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>21</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>21</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>42</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>42</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>26</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Subtotal</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,262</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,263</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,332</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>TRADING:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Government debt securities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Subtotal</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>TOTAL</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,262</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,263</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,338</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>See the Company's fair value policy in Note&nbsp;1 for further detail regarding the fair value hierarchy and Note&nbsp;6&#151;Fair Value of Financial Instruments for further detail on types of investments held. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(2)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Unsecured debentures are instruments similar to certificates of deposit that are held primarily by our subsidiaries in Brazil. The unsecured debentures and certificates of deposit included here do not qualify as cash equivalents under SFAS No.&nbsp;95, </FONT><FONT size=2><I>Statement of Cash Flows</I></FONT><FONT size=2>, but meet the definition of a security under SFAS No.&nbsp;115 and are therefore classified as available-for-sale securities. </FONT></DD></DL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the Company's investments in marketable debt securities classified as held-to-maturity as of December&nbsp;31, 2008 and 2007: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=317></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>(in millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Government debt securities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>93</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Certificates of deposit</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>45</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>36</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>150</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>36</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <UL> <UL><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> </UL></UL> <UL> <UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>At December&nbsp;31, 2008 and 2007, $14&nbsp;million and $28&nbsp;million, respectively, of investments classified as held-to-maturity were restricted or pledged as collateral for certain debt arrangements. </FONT></DD></DL></UL></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The amortized cost approximated fair value of the held-to-maturity investments at December&nbsp;31, 2008 and 2007. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2008, the stated maturities for the investments (including restricted investments) ranged from one month to three years. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the unrealized gains and losses related to sales of and investments in available-for-sale securities. There were no realized gains or losses on the sale of available-for-sale securities. </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=259></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>(in millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Gains (losses) included in other comprehensive income</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Proceeds from sales</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,006</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,345</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,706</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Gross realized gains on sales</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Gross realized losses on sales</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company recognized other-than-temporary impairment charges of $15&nbsp;million and $52&nbsp;million for the years ended December&nbsp;31, 2008 and 2007, respectively. There was no other-than-temporary impairment expense in 2006. In 2008, the impairment primarily related to the Company's investment in a company developing a commercial facility for a "blue&nbsp;gas" (coal&nbsp;to gas) technology project. The Company made this investment in September&nbsp;2007 and accounted for the investment in convertible preferred shares under the cost method of accounting. During the fourth quarter of 2008, the market value of the shares materially declined due to downward trends in the capital markets and management concluded that the decline was other-than-temporary and recorded an impairment charge of $10&nbsp;million. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2007, other-than-temporary impairment related to the Company's investment in AgCert International ("AgCert"). The Company made its first significant investment in the greenhouse gas ("GHG") emission area, acquiring a 9.9% ownership interest in AgCert for $52&nbsp;million in May 2006 </FONT><FONT size=2>and, in accordance with SFAS No.&nbsp;115, classified these securities as "available-for-sale". AgCert is an Ireland-based company which uses agricultural sources to produce GHG emission offsets under the Kyoto protocol. At that time, our investment in the stock, which was traded on the London Stock Exchange was classified as a long-term available-for-sale investment and revalued at the end of each reporting period, with changes in the market value of the investment reflected in accumulated other comprehensive income. There was a material decline in the market value of these securities, based on a continual decline in the traded market price during the year ended December&nbsp;31, 2007, and the Company recognized an other-than-temporary impairment charge of $52&nbsp;million. </FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>9. REGULATORY ASSETS&nbsp;&amp; LIABILITIES </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has recorded regulatory assets and liabilities that it expects to pass through to its customers in accordance with, and subject to, regulatory provisions as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" width=276></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=14></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=22></TD> <TD style="FONT-FAMILY: times" width=14></TD> <TD style="FONT-FAMILY: times" width=95></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle><FONT size=1><B>Recovery Period </B></FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>REGULATORY ASSETS</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>Current regulatory assets:</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Brazil tariff recoveries<SUP>(2)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Energy purchases</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>76</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>168</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>Over tariff reset period</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Transmission costs, regulatory fees and other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>121</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>127</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>Over tariff reset period</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>El&nbsp;Salvador tariff recoveries<SUP>(3)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>136</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>58</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>Over tariff reset period</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other<SUP>(4)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>27</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>Various</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>Total current regulatory assets</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>351</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>380</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-TOP: 11pt; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>Noncurrent regulatory assets:</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Defined benefit pension obligations<SUP>(1)(5)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>281</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>88</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>Various</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Deferred Income Taxes<SUP>(1)(6)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>75</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>72</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>Various</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Brazil tariff recoveries<SUP>(2)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Energy purchases</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>31</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>47</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>Over tariff reset period</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Transmission costs, regulatory fees and other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>48</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>39</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>Over tariff reset period</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other<SUP>(4)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>106</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>106</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>Various</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>Total noncurrent regulatory assets</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>541</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>352</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>TOTAL REGULATORY ASSETS</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>892</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>732</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>REGULATORY LIABILITIES</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>Current regulatory liabilities:</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Efficiency program costs<SUP>(7)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>116</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>145</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>Over tariff reset period</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Brazil tariff recoveries<SUP>(2)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Energy purchases</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>31</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>62</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>Over tariff reset period</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Transmission costs, regulatory fees and other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>44</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>62</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>Over tariff reset period</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other<SUP>(4)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>39</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>Various</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>Total current regulatory liabilities</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>205</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>308</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-TOP: 11pt; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>Noncurrent regulatory liabilities:</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Asset retirement obligations<SUP>(8)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>459</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>443</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>Over book life of assets</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Brazil special obligations<SUP>(9)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>291</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>351</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>To be determined</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Brazil tariff recoveries<SUP>(2)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Energy purchases</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>22</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>Over tariff reset period</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Transmission costs, regulatory fees and other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>Over tariff reset period</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Deferred income taxes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>Various</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other<SUP>(4)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>23</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>Various</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>Total noncurrent regulatory liabilities</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>779</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>846</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>TOTAL REGULATORY LIABILITIES</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>984</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,154</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Past expenditures on which the Company does not earn a rate of return. </FONT></DD></DL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(2)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Recoverable per ANEEL regulations through the Annual Tariff Adjustment ("IRT"). These costs are generally non-controllable costs and primarily consist of purchased electricity, energy transmission costs, and sector costs that are considered volatile. These costs are recovered in 24&nbsp;installments through the annual IRT&nbsp;process and are amortized over the tariff reset period. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(3)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Deferred fuel costs incurred by our El&nbsp;Salvador subsidiaries associated with purchase of energy from El&nbsp;Salvador spot market and the power generation plants. In El&nbsp;Salvador, the deferred fuel adjustment represents the variance between the actual fuel costs and the fuel costs recovered in the tariffs. The variance is recovered semi-annually at the tariff reset period. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(4)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Includes assets with and without a rate of return. Other current regulatory assets that do not earn a rate of return were $9&nbsp;million and $18&nbsp;million, as of December&nbsp;31, 2008 and 2007, respectively. Other noncurrent regulatory assets that do not earn a rate of return were $83&nbsp;million and $82&nbsp;million, as of December&nbsp;31, 2008 and 2007, respectively. Those without a rate of return that are recoverable based on specific rate orders primarily consist of the following: </FONT><FONT size=2><BR><BR></FONT> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Deferred fuel costs: expected to be recovered through future fuel adjustment charges. In the United States, deferred fuel costs at IPL represent variances between estimated and actual fuel and purchased power costs. IPL is permitted to recover underestimated fuel and purchased power costs in future rates. </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Transmission service costs and other administrative costs from IPL's participation in the Midwest ISO&nbsp;market. Recovery of costs is probable, but the timing is not yet determined. </FONT></DD></DL></DD></DL> <UL> <P style="FONT-FAMILY: times"><FONT size=2>Other Current and Noncurrent Regulatory Liabilities consist of: </FONT></P> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Penalties and fees from regulators at our Brazil subsidiaries and financial transmission rights used to hedge exposure in the Midwest ISO&nbsp;market that are credited per specific rate orders. </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Costs incurred by our Brazilian subsidiaries associated with monthly energy price variances between the wholesale energy market prices owed to the power generation plants producing free energy and the capped price reimbursed by the local distribution companies which are passed through to the final customers through energy tariffs. <BR><BR></FONT></DD></DL></UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(5)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>SFAS No.&nbsp;71 allows the defined pension and postretirement benefit obligation to be recorded as a regulatory asset equal to the previously unrecognized actuarial gains and losses and prior service costs that are expected to be recovered through future rates. Pension expense is recognized based on the plan's actuarially determined pension liability. Recovery of costs is probable, but not yet determined. The increase in the regulatory asset of $193&nbsp;million at December&nbsp;31, 2008 is primarily a result of a lower than expected return on assets in 2008. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(6)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Probable of recovery through future rates, based upon established regulatory practices, which permit the recovery of current taxes. This asset is offset by a deferred tax liability and is expected to be recovered, without interest, over the period book-tax timing differences reverse and become current taxes. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(7)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Payments received for costs expected to be incurred to improve the efficiency of our plants in Brazil that are recovered as part of the IRT. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(8)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Non-legal asset retirement obligation for removal costs which do not have an associated legal retirement obligation as defined by SFAS No.&nbsp;143. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(9)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Obligations established by ANEEL in Brazil associated with electric utility concessions and represent amounts received from customers or donations not subject to return. These donations are allocated to support energy network expansion and to improve utility operations to meet customers' needs. The maturity term is established by ANEEL whose settlement shall occur when the concession ends. </FONT></DD></DL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The current portion of regulatory assets and liabilities are recorded in either other current assets or accrued and other liabilities, respectively, on the accompanying Consolidated Balance Sheets. The noncurrent portion of the regulatory assets and liabilities is recorded in either other assets or other long-term liabilities, respectively, in the accompanying Consolidated Balance Sheets. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes regulatory assets by region as of December&nbsp;31, 2008 and 2007: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=313></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Latin America</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>413</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>441</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>North America</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>479</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>286</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Europe&nbsp;&amp; Africa</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total regulatory assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>892</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>732</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes regulatory liabilities by region as of December&nbsp;31, 2008 and 2007: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=306></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Latin America</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>508</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>709</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>North America</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>476</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>445</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total regulatory liabilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>984</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,154</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2><B></B></FONT>&nbsp;</P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>3. PROPERTY, PLANT&nbsp;&amp; EQUIPMENT </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the components of the electric generation and distribution assets and other and estimated useful lives: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=313></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=40></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times" rowSpan=2><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5 rowSpan=2><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times" rowSpan=2><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2 rowSpan=2><FONT size=1><B>Estimated<BR>Useful&nbsp;Life </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>(in millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Electric generation and distribution facilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3&nbsp;-&nbsp;50 yrs.</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>21,973</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>21,978</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other buildings</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5&nbsp;-&nbsp;50 yrs.</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,673</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,839</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Furniture, fixtures and equipment</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3&nbsp;-&nbsp;30 yrs.</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>532</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>593</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2&nbsp;-&nbsp;50 yrs.</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>466</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>272</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total electric generation and distribution assets and other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>24,644</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>24,682</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Accumulated depreciation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(7,515</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(7,519</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net electric generation and distribution assets and other<SUP>(1)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>17,129</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>17,163</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Net electric generation and distribution assets and other related to Jiaozuo of $70&nbsp;million and Ekibastuz and Maikuben of $151&nbsp;million as of December&nbsp;31, 2007 are excluded from the table above and are included in the noncurrent assets and liabilities of held for sale and discontinued businesses. </FONT></DD></DL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes interest capitalized during development and construction on qualifying assets for the years ended December&nbsp;31, 2008, 2007 and 2006: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=289></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>(in millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Interest capitalized during development&nbsp;&amp; construction</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>176</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>86</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>50</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR></TBODY></TABLE></DIV> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoveries of liquidating damages from construction delays and government subsidies are reflected as a reduction in the related projects' construction costs. Approximately $11.5&nbsp;billion of property, plant and equipment, net of accumulated depreciation, was mortgaged, pledged or subject to liens as of December&nbsp;31, 2008. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation expense, including the amortization of assets recorded under capital leases, was $973&nbsp;million, $898&nbsp;million and $802&nbsp;million for the years ended December&nbsp;31, 2008, 2007 and 2006, respectively. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net electric generation and distribution assets and other include unamortized internal use software costs of $104&nbsp;million and $35&nbsp;million as of December&nbsp;31, 2008 and 2007, respectively. Amortization expense associated with software costs was $41&nbsp;million, $20&nbsp;million and $21&nbsp;million for the years ended December&nbsp;31, 2008, 2007 and 2006. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes regulated and non-regulated generation and distribution facilities property, plant and equipment and accumulated depreciation as of December&nbsp;31, 2008 and 2007: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=288></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>(in millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Regulated assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9,751</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10,710</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Regulated accumulated depreciation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3,901</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(4,219</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Regulated generation, distribution assets, and other, net</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,850</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,491</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Non-regulated assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14,893</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>13,972</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Non-regulated accumulated depreciation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3,614</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3,300</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Non-regulated generation, distribution assets, and other, net</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11,279</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10,672</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total generation and distribution assets, and other, net</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>17,129</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>17,163</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the amounts recognized, which were related to asset retirement obligations, for the years ended December&nbsp;31, 2008 and 2007: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=321></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>(in millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Balance at January&nbsp;1</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>64</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>51</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Additional liabilities incurred</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Liabilities settled</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Accretion expense</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Change in estimated cash flows</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Translation adjustments</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Balance at December&nbsp;31</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>70</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>64</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company's retirement obligations covered by SFAS No.&nbsp;143 primarily include active ash landfills, water treatment basins and the removal or dismantlement of certain plant and equipment. The fair value of legally restricted assets for purposes of settling asset retirement obligations was less than $1&nbsp;million as of December&nbsp;31, 2008 and 2007. </FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>8. GOODWILL AND OTHER INTANGIBLE ASSETS </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SFAS No.&nbsp;142 requires that goodwill be evaluated for impairment at the reporting unit level. A reporting unit is an operating segment as defined by SFAS No.&nbsp;131</FONT><FONT size=2><I>, Disclosures about Segments of an Enterprise and Related Information</I></FONT><FONT size=2>, ("SFAS No.&nbsp;131"), or a component or combination of components within an operating segment with similar economic characteristics that are one level below an operating segment. Generally, each AES business constitutes a reporting unit. Reporting units have been acquired generally in separate transactions. In the event that more than one reporting unit is acquired in a single acquisition, the fair value of each reporting unit is determined, and that fair value is allocated to the assets and liabilities of that unit. If the determined fair value of the reporting unit exceeds the amount allocated to the net assets of the reporting unit, goodwill is assigned to that reporting unit. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the changes in the carrying amount of goodwill, by segment as of December&nbsp;31, 2008, 2007 and 2006: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=152></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=28></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=40></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=40></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=28></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=40></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=40></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=28></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=20><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Carrying<BR>amount </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Acquisitions </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Translation<BR>adjustments<BR>and&nbsp;Other </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Carrying<BR>amount </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Acquisitions </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Translation<BR>adjustments<BR>and&nbsp;Other </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Carrying<BR>amount </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1>Latin America&#151;Generation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>902</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>905</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>906</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1>Latin America&#151;Utilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>133</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>133</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>133</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1>North America&#151;Generation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>101</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(9</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>110</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>11</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(11</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>110</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1>North America&#151;Utilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1>Europe&nbsp;&amp; Africa&#151;Generation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>166</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(40</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>206</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>203</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1>Europe&nbsp;&amp; Africa&#151;Utilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1>Asia&#151;Generation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>78</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>65</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1><SUP>(1)</SUP></FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(11</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>24</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>24</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1>Corp/Other&nbsp;&amp; eliminations</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>37</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>32</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>32</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>1,421</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>71</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(66</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>1,416</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>11</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(9</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>1,414</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> <DL compact> <DT style="MARGIN-BOTTOM: -9pt; FONT-FAMILY: times"><FONT size=1><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=1>Includes goodwill acquired for the period of $65&nbsp;million related to the acquisition of Masinloc. </FONT></DD></DL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company conducts its annual goodwill impairment analysis as of October&nbsp;1<SUP>st</SUP> each year. For the years ended December&nbsp;31, 2008 and 2007, the Company had no goodwill impairment. Goodwill impairment of $2&nbsp;million was recognized during the year ended December&nbsp;31, 2006 at one of our European generation plants. The fair value of the reporting unit was determined by the income approach using a discounted cash flow valuation model as current quoted market prices were not always available and there was not sufficient evidence that the reporting unit could be bought or sold in the market place between willing third parties. Goodwill impairment is included in "Impairment expense" on the Consolidated Statement of Operations. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following tables summarize the balances comprising other intangibles in the accompanying Consolidated Balance Sheets for the years ending December&nbsp;31, 2008 and 2007: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=203></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=47></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=42></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=39></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>December&nbsp;31, 2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Gross Balance </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Accumulated<BR>Amortization </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Net Balance </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Sales concessions</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>165</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(77</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>88</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>All other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>520</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(108</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>412</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>685</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(185</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>500</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=203></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=47></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=42></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=39></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>December&nbsp;31, 2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Gross Balance </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Accumulated<BR>Amortization </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Net Balance </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Sales concessions</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>175</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(72</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>103</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>All other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>464</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(101</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>363</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>639</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(173</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>466</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <UL> <UL><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> </UL></UL> <UL> <UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>All other consists primarily of market access, fuel sourcing and other intangible assets acquired upon the Company's acquisition of certain properties in the state of New&nbsp;York in 1999. </FONT></DD></DL></UL></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2008, the Company acquired intangible assets of $85&nbsp;million the largest of which was the acquisition of landfill gas rights in El&nbsp;Salvador. The acquired intangible assets included $59&nbsp;million which were subject to amortization with an average amortization period of 20&nbsp;years and $26&nbsp;million of intangible assets not subject to amortization. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the estimated amortization expense, broken down by intangible asset category, for 2009 through 2013: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=227></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=14><FONT size=1><B>Estimated amortization expense </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2010 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2011 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2012 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2013 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=14><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Sales concessions</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>All other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>13</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>21</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>21</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>21</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>20</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>19</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible asset amortization expense was $19&nbsp;million, $23&nbsp;million and $23&nbsp;million for the years ended December&nbsp;31, 2008, 2007 and 2006, respectively. Intangible assets included in the tables above that are not subject to amortization primarily consist of land use rights and emission allowances, which had a carrying value of $83&nbsp;million at December&nbsp;31, 2008 and $56&nbsp;million at December&nbsp;31, 2007. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2></FONT>&nbsp;</P> <P style="FONT-FAMILY: times"><FONT size=2></FONT>&nbsp;</P> <P style="FONT-FAMILY: times"><FONT size=2></FONT>&nbsp;</P> <P style="FONT-FAMILY: times"><FONT size=2></FONT>&nbsp;</P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>5. DERIVATIVE INSTRUMENTS </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AES utilizes derivative financial instruments to hedge interest rate risk, foreign exchange risk and commodity price risk. The Company utilizes interest rate derivatives to hedge interest rate risk on variable rate debt. Most of AES's interest rate derivatives are designated and qualify as cash flow hedges. Currency forwards, options and swap agreements are utilized by the Company to hedge foreign exchange risk. The Company utilizes electric and fuel derivative instruments, including swaps, options, forwards and futures, to hedge the risk related to electricity sales and fuel purchases. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain derivatives are not designated as hedging instruments. While these instruments economically hedge interest rate risk, foreign exchange risk or commodity price risk, they do not qualify for hedge accounting treatment as defined by SFAS No.&nbsp;133. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the Company's investments in derivative instruments as of December&nbsp;31, 2008 by type of derivative and by level within the fair value hierarchy in accordance with SFAS No.&nbsp;157. Financial assets and liabilities have been classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the </FONT><FONT size=2>determination of the fair value of the assets and liabilities and their placement within the fair value hierarchy levels. </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=191></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=44></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=51></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=35></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=43></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=4><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>December&nbsp;31,<BR>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Quoted Market<BR>Prices in Active<BR>Market for<BR>Identical Assets<BR>(Level&nbsp;1) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Significant<BR>Other<BR>Observable<BR>Inputs<BR>(Level&nbsp;2) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Significant<BR>Unobservable<BR>Inputs<BR>(Level&nbsp;3) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=4><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>(in millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=4> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>Assets</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=4> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Current assets:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Commodity derivatives</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>132</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>91</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>41</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign currency derivatives</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Interest rate swaps</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=4>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total current assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>134</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>92</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>42</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=4>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=4> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Noncurrent assets:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Commodity derivatives</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>191</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>182</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign currency derivatives</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Interest rate swaps</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=4>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total noncurrent assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>216</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>207</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=4>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>350</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>101</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>249</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=4>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=4> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>Liabilities</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=4> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Current liabilities:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Commodity derivatives</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign currency derivatives</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign currency forwards and swaps</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>15</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>15</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Interest rate swaps</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>99</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>75</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>24</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Interest rate caps and floors</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=4>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total current liabilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>125</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>97</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>28</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=4>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=4> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Noncurrent liabilities:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Commodity derivatives</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign currency derivatives</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign currency forwards and swaps</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>45</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>45</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Interest rate swaps</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>340</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>118</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>222</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Interest rate caps and floors</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=4>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total noncurrent liabilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>409</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>119</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>290</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=4>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total liabilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>534</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>216</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>318</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=4>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level&nbsp;3) for the year ended December&nbsp;31, 2008: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=301></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=40></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Level&nbsp;3 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>(in millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Beginning balance at December&nbsp;31, 2007<SUP>(1)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>84</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total gains/losses (realized/unrealized)<SUP>(1)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Included in earnings</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(106</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Included in other comprehensive income</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>75</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Purchases, issuances and settlements<SUP>(1)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>141</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Assets transferred in/(out) of Level&nbsp;3</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(26</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Liabilities transferred (in)/out of Level&nbsp;3<SUP>(2)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(237</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Ending balance at December&nbsp;31, 2008<SUP>(1)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(69</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total gains/losses for the period included in earnings attributable to the change in unrealized gains/losses relating to assets and liabilities held at December&nbsp;31, 2008 and 2007</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <UL> <UL><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> </UL></UL> <UL> <UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Derivative assets and (liabilities) are presented on a net basis. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(2)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Liabilities transferred into Level&nbsp;3 primarily resulted from an increase in the significance of the judgments used in applying observable inputs to credit valuation adjustments in the valuation of these derivative instruments. </FONT></DD></DL></UL></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The maximum length of time over which AES is hedging its exposure to variability in future cash flows for forecasted interest, foreign currency and commodity transactions is 19&nbsp;years, 20&nbsp;years and 2&nbsp;years, respectively. For the years ended December&nbsp;31, 2008, 2007 and 2006, pre-tax (losses) gains of $(35)&nbsp;million, $(2)&nbsp;million, and $3&nbsp;million, respectively, were reclassified into earnings as a result of the discontinuance of a cash flow hedge because it was probable that the forecasted transaction would not occur by the end of the originally specified time period (as documented at the inception of the hedging relationship) or within an additional two-month time period. The Company recognized after-tax (losses) gains of $(8)&nbsp;million, $6&nbsp;million, and $18&nbsp;million related to the ineffective portion of derivatives qualifying as cash flow hedges for the years ended December&nbsp;31, 2008, 2007 and 2006, respectively. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After-tax gains (losses) related to the changes in fair value of derivatives that do not qualify for hedge accounting were $10&nbsp;million, $(21) million and $22&nbsp;million for the years ended December&nbsp;31, 2008, 2007 and 2006, respectively. The after-tax losses include embedded foreign currency derivatives, interest rate options, commodity derivatives and embedded derivatives. The composition and methodology for fair value determination of derivative assets and liabilities are further discussed in Note&nbsp;6&#151;Fair Value of Financial Instruments. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amounts recognized in accumulated other comprehensive loss due to hedges, after income taxes, during the years ended December&nbsp;31, 2008, 2007 and 2006, respectively, are as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=173></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=30></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=51></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=51></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=32></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=42></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 45pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>December&nbsp;31, <!-- COMMAND=ADD_SCROPPEDRULE,45pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Balance,<BR>beginning<BR>of year </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Reclassification<BR>to earnings </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Reclassification<BR>upon sale or<BR>disposal </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Change in<BR>fair value </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Balance,<BR>December&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=14><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(232</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>76</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(107</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(263</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2007</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(113</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(52</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(67</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(232</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2006</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(382</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>278</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(113</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approximately $16&nbsp;million of the pre-tax accumulated other comprehensive loss related to derivative instruments as of December&nbsp;31, 2008 is expected to be recognized as a decrease to income from continuing operations before income taxes over the next twelve months. This estimate includes estimated losses of $0&nbsp;million, $1&nbsp;million and $15&nbsp;million related to foreign currency, commodity and interest rate instruments, respectively. The estimated commodity losses of $1&nbsp;million relate to a power purchase agreement where the normal purchase normal sale scope exception from derivative accounting was elected as of December&nbsp;31, 2008, which will also result in an estimated $8&nbsp;million decrease to income from continuing operations before income taxes over the next twelve months due to the amortization of the derivative asset of $187&nbsp;million. The balance in accumulated other comprehensive loss related to derivative transactions will be reclassified into earnings as interest expense is recognized for hedges of interest rate risk, as depreciation is recognized for hedges of interest that is capitalized, as foreign currency transaction and translation gains and losses are recognized for hedges of foreign currency exposure, and as electric and gas sales and purchases are recognized for hedges of forecasted electric and fuel transactions. These balances are included in the Consolidated Statement of Cash Flows as operating and/or investing activities based on the nature of the underlying transaction. </FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>11. COMMITMENTS </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>OPERATING LEASES</B></FONT><FONT size=2>&#151;As of December&nbsp;31, 2008, the Company was obligated under long-term non-cancelable operating leases, primarily for certain transmission lines, office rental and site leases. Rental expense for lease commitments under these operating leases for the years ended December&nbsp;31, 2008, 2007 and 2006 was $74&nbsp;million, $64&nbsp;million and $17&nbsp;million, respectively. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below sets forth the future minimum lease commitments under these operating leases at December&nbsp;31, 2008 for 2009 through 2013 and thereafter: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=317></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=45></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 45pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>December&nbsp;31, <!-- COMMAND=ADD_SCROPPEDRULE,45pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Future<BR>Commitments<BR>for Operating<BR>Leases </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>64</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2010</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>59</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2011</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>59</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2012</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>59</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2013</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>59</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Thereafter</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>193</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>493</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>CAPITAL LEASES</B></FONT><FONT size=2>&#151;Several AES subsidiaries lease operating and office equipment and vehicles that are considered capital lease transactions. These capital leases are recognized in Property, Plant and Equipment within "Electric generation and distribution assets" and primarily relate to transmission lines at our subsidiaries in Brazil. The gross value of the leased assets for the years ended December&nbsp;31, 2008 and 2007 was $95&nbsp;million and $69&nbsp;million, respectively. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table is a schedule by years of future minimum lease payments under capital leases together with the present value of the net minimum lease payments at December&nbsp;31, 2008 for 2009 through 2013 and thereafter: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=321></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=40></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 45pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>December&nbsp;31, <!-- COMMAND=ADD_SCROPPEDRULE,45pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Future<BR>Minimum<BR>Lease<BR>Payments </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2010</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2011</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2012</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2013</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Thereafter</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>116</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>158</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Less: Imputed interest</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>96</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Present value of total minimum lease payments</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>62</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>SALE/LEASEBACK</B></FONT><FONT size=2>&#151;In May&nbsp;1999, a subsidiary of the Company acquired six electric generating stations from New&nbsp;York State Electric and Gas ("NYSEG"). Concurrently, the subsidiary sold two of the plants to an unrelated third party for $666&nbsp;million and simultaneously entered into a leasing arrangement with the unrelated party. This transaction has been accounted for as a sale/leaseback with operating lease treatment. In May&nbsp;2007, the subsidiary purchased a portion of the lessor's interest in a trust estate that holds the leased plants. Future minimum lease commitments under the lease agreement are reduced by the subsidiary's interest in the plants. Rental expense was $34&nbsp;million, $42&nbsp;million and $54&nbsp;million for the years ended December&nbsp;31, 2008, 2007 and 2006, respectively. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the future minimum lease commitments under the sale/leaseback arrangement at December&nbsp;31, 2008 for 2009 through 2013 and thereafter: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=317></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=45></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 45pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>December&nbsp;31, <!-- COMMAND=ADD_SCROPPEDRULE,45pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Future<BR>Minimum<BR>Lease<BR>Commitments </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>39</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2010</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>41</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2011</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>43</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2012</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>44</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2013</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>46</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Thereafter</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>531</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>744</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>CONTRACTS</B></FONT><FONT size=2>&#151;Operating subsidiaries of the Company have entered into contracts for the purchase of electricity from third parties that primarily include energy auction agreements at our Brazil subsidiaries with extended terms from 2009 through 2042. Purchases in the years ended December&nbsp;31, 2008, 2007 and 2006 were approximately $1.5&nbsp;billion, $2.2&nbsp;billion and $1.2&nbsp;billion, respectively. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below sets forth the future commitments under these electricity purchase contracts at December&nbsp;31, 2008 for 2009 through 2013 and thereafter: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=317></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=45></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 45pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>December&nbsp;31, <!-- COMMAND=ADD_SCROPPEDRULE,45pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Future Commitments for Electricity Purchase Contracts </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,754</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2010</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,021</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2011</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,366</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2012</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,588</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2013</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,451</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Thereafter</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>36,085</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>47,265</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating subsidiaries of the Company have entered into various long-term contracts for the purchase of fuel subject to termination only in certain limited circumstances. Purchases in the years ended December&nbsp;31, 2008, 2007 and 2006 were $1.8&nbsp;billion, $1.3&nbsp;billion and $844&nbsp;million, respectively. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below sets forth the future commitments under these fuel contracts as of December&nbsp;31, 2008 for 2009 through 2013 and thereafter: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=317></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=45></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 45pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>December&nbsp;31, <!-- COMMAND=ADD_SCROPPEDRULE,45pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Future<BR>Commitments<BR>for Fuel<BR>Contracts </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,113</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2010</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,798</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2011</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,462</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2012</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,391</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2013</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,337</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Thereafter</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>13,740</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>21,841</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company's subsidiaries entered into other various long-term contracts. These contracts are mainly for construction projects, service and maintenance, transmission of electricity and other operation services. Payments under these contracts for the years ended December&nbsp;31, 2008, 2007 and 2006 were $1.9&nbsp;billion, $840&nbsp;million and $596&nbsp;million, respectively, </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below sets forth the future commitments under these other purchase contracts as of December&nbsp;31, 2008 for 2009 through 2013 and thereafter: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=304></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=58></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 45pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>December&nbsp;31, <!-- COMMAND=ADD_SCROPPEDRULE,45pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Future<BR>Commitments for<BR>Other Purchase<BR>Contracts </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,403</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2010</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,463</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2011</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,004</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2012</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>917</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2013</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>783</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Thereafter</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14,354</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>20,924</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2><B></B></FONT>&nbsp;</P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>14. STOCKHOLDERS' EQUITY </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><B>STOCK REPURCHASE </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August&nbsp;7, 2008, the Company's Board of Directors approved a share repurchase plan for up to $400&nbsp;million of its outstanding common stock. The Board authorization permits the Company to repurchase shares over a six month period ending February&nbsp;7, 2009. Shares of common stock repurchased under this plan through December&nbsp;31, 2008 totaled 10,691,267 at a total cost of $143&nbsp;million plus commissions of $0.3&nbsp;million (average of $13.41 per share including commissions). The remaining amount authorized to be purchased under the share repurchase plan as of December&nbsp;31, 2008 was $257&nbsp;million. The shares of stock repurchased have been classified as treasury stock and accounted for using the cost method. A total of 10,691,267 shares were held in treasury stock at December&nbsp;31, 2008. At December&nbsp;31, 2007, there were no shares of common stock held in treasury stock. The Company did not retire any shares of treasury stock during the year ended December&nbsp;31, 2008. No shares of common stock were repurchased subsequent to December&nbsp;31, 2008 and the Board authorization of the plan expired on February&nbsp;7, 2009. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><B>ACCUMULATED OTHER COMPREHENSIVE LOSS </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the balances comprising accumulated other comprehensive loss net of tax, as of December&nbsp;31, 2008 and 2007: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=298></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign currency translation adjustment</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,584</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,023</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Unrealized derivative losses</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>263</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>232</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Unfunded pension obligation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>171</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>123</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,018</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,378</FONT></TD></TR></TBODY></TABLE></DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>16. SHARE-BASED COMPENSATION </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>STOCK OPTIONS</B></FONT><FONT size=2>&#151;AES grants options to purchase shares of common stock under stock option plans. Under the terms of the plans, the Company may issue options to purchase shares of the Company's common stock at a price equal to 100% of the market price at the date the option is granted. Stock options are generally granted based upon a percentage of an employee's base salary. Stock options issued under these plans in 2008, 2007 and 2006 have a three-year vesting schedule and vest in one-third increments over the three-year period. The stock options have a contractual term of ten years. At December&nbsp;31, 2008, approximately 19&nbsp;million shares were remaining for award under the plans. In all circumstances, stock options granted by AES do not entitle the holder the right, or obligate AES, to settle the stock option in cash or other assets of AES. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The weighted average fair value of each option grant has been estimated, as of the grant date, using the Black-Scholes option-pricing model with the following weighted average assumptions: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=289></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=14></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=14></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=14></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Expected volatility</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>37</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>29</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>30</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Expected annual dividend yield</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Expected option term (years)</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Risk-free interest rate</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3.04</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4.67</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4.63</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning January&nbsp;1, 2006, the Company exclusively relies on implied volatility as the expected volatility to determine the fair value using the Black-Scholes option-pricing model. The implied volatility may be exclusively relied upon due to the following factors: </FONT></P> <UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>The Company utilizes a valuation model that is based on a constant volatility assumption to value its employee share options; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>The implied volatility is derived from options to purchase AES common stock that are actively traded; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>The market prices of both the traded options and the underlying share are measured at a similar point in time to each other and on a date reasonably close to the grant date of the employee share options; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>The traded options have exercise prices that are both near-the-money and close to the exercise price of the employee share options; and </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>The remaining maturities of the traded options on which the estimate is based are at least one year. </FONT></DD></DL></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to SAB No.&nbsp;107, the Company used a simplified method to determine the expected term based on the average of the original contractual term and the pro rata vesting term. This simplified method was used for stock options granted during the years ended December&nbsp;31, 2007 and 2006. In 2008, the Company continued to use the simplified method pursuant to SAB No.&nbsp;110, which amends SAB No.&nbsp;107 and allows for the continued use of the simplified method under certain circumstances for stock options accounted for under SFAS No.&nbsp;123(R). This is appropriate given a lack of relevant </FONT><FONT size=2>stock option exercise data. This simplified method may be used as the Company's stock options have the following characteristics: </FONT></P> <UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>The stock options are granted at-the-money; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Exercisability is conditional only on performing service through the vesting date; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>If an employee terminates service prior to vesting, the employee forfeits the stock options; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>If an employee terminates service after vesting, the employee has a limited time to exercise the stock option; and </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>The stock option is nonhedgeable and not transferable. </FONT></DD></DL></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company does not discount the grant date fair values determined to estimate post-vesting restrictions. Post-vesting restrictions include black-out periods when the employee is not able to exercise stock options based on their potential knowledge of information prior to the release of that information to the public. The assumptions that the Company has made in determining the grant date fair value of its stock options and the estimated forfeiture rates represent its best estimate. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Using the above assumptions, the weighted average fair value of each stock option granted was $7.65, $8.49 and $6.82, for the years ended December&nbsp;31, 2008, 2007, and 2006, respectively. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the components of stock-based compensation related to employee stock options recognized in the Company's financial statements: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=293></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Pre-tax compensation expense</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>15</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>17</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Tax benefit</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Stock options expense, net of tax</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total intrinsic value of options exercised</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>41</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>78</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total grant date fair value of options vested</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>13</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Cash received from the exercise of stock options</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>17</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>50</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>78</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Windfall tax benefits realized from the exercised stock options</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There was no cash used to settle stock options or compensation cost capitalized as part of the cost of an asset for the years ended December&nbsp;31, 2008, 2007 and 2006. As of December&nbsp;31, 2008, $16&nbsp;million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted average period of approximately 1.7&nbsp;years. There were no modifications to stock option awards during the year ended December&nbsp;31, 2008. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A summary of the option activity for year ended December&nbsp;31, 2008 follows (number of options in thousands, dollars in&nbsp;millions except per option amounts): </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=274></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=28></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=38></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=31></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Options </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Weighted<BR>Average<BR>Exercise<BR>Price </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Weighted<BR>Average<BR>Remaining<BR>Contractual<BR>Term<BR>(in years) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Aggregate<BR>Intrinsic<BR>Value </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Outstanding at December&nbsp;31, 2007</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>24,737</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18.23</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Exercised year to date</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,595</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10.50</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Forfeited and expired year to date</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(990</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>24.72</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Granted year to date</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,156</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18.86</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Outstanding at December&nbsp;31, 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>24,308</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18.52</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4.1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Vested and expected to vest at December&nbsp;31, 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>23,652</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18.48</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4.0</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Eligible for exercise at December&nbsp;31, 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>20,563</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18.30</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3.2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company's closing stock price on the last trading day of the fourth quarter of 2008 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December&nbsp;31, 2008. The amount of the aggregate intrinsic value will change based on the fair market value of the Company's stock. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company initially recognizes compensation cost on the estimated number of instruments for which the requisite service is expected to be rendered. In 2008, AES has estimated a forfeiture rate of 16.87% and 10.19% for stock options granted to non-officer employees and officer employees of AES, respectively. In 2007, based on actual experience, AES reevaluated the forfeiture rates for non-officer employees for its prior year grants and adjusted the rate to 14.70% from 8.55% for the plan year ended December&nbsp;31, 2006. Those estimates will be revised if subsequent information indicates that the actual number of instruments forfeited is likely to differ from previous estimates. Based on the estimated forfeiture rates, the Company expects to expense $14&nbsp;million on a straight-line basis over a three year period (approximately $4.6&nbsp;million per year) related to stock options granted during the year ended December&nbsp;31, 2008. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><B>RESTRICTED STOCK </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>Restricted Stock Units Without Market Conditions</B></FONT><FONT size=2>&#151;The Company issues restricted stock units ("RSUs") without market conditions under its long-term compensation plan. The RSUs are generally granted based upon a percentage of the participant's base salary. The units have a three-year vesting schedule and vest in one-third increments over the three-year period. The units are then required to be held for an additional two years before they can be redeemed for shares, and thus become transferable. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the years ended December&nbsp;31, 2008, 2007, and 2006, RSUs issued without a market condition had a grant date fair value equal to the closing price of the Company's stock on the grant date. The Company does not discount the grant date fair values to reflect any post-vesting restrictions. RSUs </FONT><FONT size=2>without a market condition granted to non-executive employees during the years ended December&nbsp;31, 2008, 2007, and 2006 had grant date fair values per RSU of $18.87, $22.28 and $17.57, respectively. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the components of the Company's stock-based compensation related to its employee RSUs issued without market conditions recognized in the Company's financial statements: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=293></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>RSU expense before income tax</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Tax benefit</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>RSU expense, net of tax</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total intrinsic value of RSUs converted<SUP>(1)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total fair value of RSUs vested</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <UL> <UL><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> </UL></UL> <UL> <UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>59,000 RSUs were converted during the year ended December&nbsp;31, 2008. No RSUs were converted during the years ended December&nbsp;31, 2007 and 2006. </FONT></DD></DL></UL></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There was no cash used to settle RSUs or compensation cost capitalized as part of the cost of an asset for the years ended December&nbsp;31, 2008, 2007 and 2006. As of December&nbsp;31, 2008, $16&nbsp;million of total unrecognized compensation cost related to RSUs without the market condition is expected to be recognized over a weighted average period of approximately 1.8&nbsp;years. There were no modifications to RSU awards during the year ended December&nbsp;31, 2008. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A summary of the RSUs activity for the year ended December&nbsp;31, 2008 follows (number of RSUs in thousands, dollars in&nbsp;millions except per unit amounts): </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=322></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=19></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=36></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=34></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>RSUs </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Weighted<BR>Average<BR>Grant-date<BR>Fair Values </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Weighted<BR>Average<BR>Remaining<BR>Vesting<BR>Term </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Nonvested at December&nbsp;31, 2007</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,311</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>20.17</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Vested year to date</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(597</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>19.26</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Forfeited and expired year to date</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(153</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>19.83</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Granted year to date</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>974</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18.87</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Nonvested at December&nbsp;31, 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,535</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>19.73</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1.7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Vested at December&nbsp;31, 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,213</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14.05</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Vested and expected to vest at December&nbsp;31, 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,459</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16.08</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The weighted average grant date fair value of RSUs without a market condition granted during year ended December&nbsp;31, 2008, was $18.87. The fair value of RSUs without a market condition that vested during the years ended December&nbsp;31, 2008, 2007 and 2006 was $10&nbsp;million, $10&nbsp;million and $7&nbsp;million, respectively. RSUs without a market condition vesting during the years ended December&nbsp;31, 2008, 2007 and 2006 were 597,000, 714,000 and 569,000, respectively. 59,000&nbsp;RSUs were converted </FONT><FONT size=2>during the year ended December&nbsp;31, 2008. No RSUs were converted during the years ended December&nbsp;31, 2007 and 2006. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The total grant date fair value of RSUs granted without a market condition was $15&nbsp;million during the year ended December&nbsp;31, 2008. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>Restricted Stock Units With Market Conditions</B></FONT><FONT size=2>&#151;Restricted stock units issued to officers of the Company have a three-year vesting schedule and include a market condition to vest. Vesting will occur if the applicable continued employment conditions are satisfied and the Total Stockholder Return ("TSR") on AES&nbsp;common stock exceeds the TSR of the Standard and Poor's&nbsp;500 ("S&amp;P&nbsp;500") over the three-year measurement period beginning on January&nbsp;1st&nbsp;in the year of grant and ending after three years on December&nbsp;31st. In certain situations where the TSR of both AES common stock and the S&amp;P&nbsp;500 exhibit&nbsp;a gain over the measurement period, the grant may vest without the TSR of AES common stock exceeding the TSR of the S&amp;P&nbsp;500, if the Compensation Committee exercises its discretion to permit such vesting. The units are then required to be held for an additional two years subsequent to vesting before they can be redeemed for shares, and thus become transferable. In all circumstances, restricted stock units granted by AES do not entitle the holder the right, or obligate AES, to settle the restricted stock unit in cash or other assets of AES. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The effect of the market condition on restricted stock units issued to officers of the Company is reflected in the award's fair value on the grant date for the year ended December&nbsp;31, 2008. A discount of 14% was applied to the closing price of the Company's stock on the date of grant to estimate the fair value to reflect the market condition for RSUs with market conditions granted during the year ended December&nbsp;31, 2008. RSUs that included a market condition granted during the year ended December&nbsp;31, 2008 and 2007 had a grant date fair value per RSU of $16.23 and $18.27, respectively. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the components of the Company's stock-based compensation related to its RSUs granted with market conditions recognized in the Company's financial statements: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=293></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>RSU expense before income tax</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Tax benefit</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>RSU expense, net of tax</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total intrinsic value of RSUs converted<SUP>(1)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total fair value of RSUs vested</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <UL> <UL><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> </UL></UL> <UL> <UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>No RSUs were converted during the years ended December&nbsp;31, 2008, 2007 or 2006. </FONT></DD></DL></UL></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There was no cash used to settle RSUs or compensation cost capitalized as part of the cost of an asset for the years ended December&nbsp;31, 2008, 2007 and 2006. As of December&nbsp;31, 2008, $5&nbsp;million of total unrecognized compensation cost related to RSUs with a market condition is expected to be recognized over a weighted average period of approximately 1.7&nbsp;years. There were no modifications to RSU awards during the year ended December&nbsp;31, 2008. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A summary of the restricted stock unit activity for the year ended December&nbsp;31, 2008 follows (number of RSUs in thousands, $ in&nbsp;millions except per unit amounts): </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=322></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=19></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=36></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=34></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>RSUs </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Weighted<BR>Average<BR>Grant-date<BR>Fair Values </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Weighted<BR>Average<BR>Remaining<BR>Vesting<BR>Term </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Nonvested at December&nbsp;31, 2007</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>872</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>15.30</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Vested year to date</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(352</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16.81</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Forfeited and expired year to date</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(22</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>15.35</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Granted year to date</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>267</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16.23</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Nonvested at December&nbsp;31, 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>765</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14.93</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1.1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Vested at December&nbsp;31, 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>900</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12.04</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Vested and expected to vest at December&nbsp;31, 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,665</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>13.38</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The weighted average grant date fair value of RSUs with a market condition granted during year ended December&nbsp;31, 2008, was $16.23. RSUs with a market condition that vested during the years ended December&nbsp;31, 2008 and 2007 were 352,000 and 548,000, respectively. No RSUs with a market condition vested during the year ended December&nbsp;31, 2006. No RSUs were converted during the years ended December&nbsp;31, 2008, 2007 and 2006. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The total grant date fair value of RSUs with a market condition granted during the year ended December&nbsp;31, 2008 was $3.9&nbsp;million. If no discount was applied to reflect the market condition for RSUs issued to officers, the total grant date fair value of RSUs with a market condition granted during year ended December&nbsp;31, 2008 would have increased by $0.6&nbsp;million. </FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>19. IMPAIRMENT EXPENSE </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment expense for the years ended December&nbsp;31, 2008, 2007 and 2006 consisted of: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=321></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=40></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>(in millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>LNG projects in North America</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>67</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Uruguaiana</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>36</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>South African peakers</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>31</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Hefei</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Non-power development project</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>15</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>175</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the fourth quarter of 2008 and in response to the financial market crisis, the Company reviewed and prioritized projects in the development pipeline. From this review, the Company determined that </FONT><FONT size=2>the carrying value exceeded the future discounted cash flows for certain projects. In accordance with SFAS No.&nbsp;144, the Company recorded a total pre-tax impairment charge of $75&nbsp;million ($34&nbsp;million, net of minority interest and income taxes) related to two liquefied natural gas projects in North America and a non-power development project at one of our facilities in North America. These projects were reported in the North America Generation segment. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following an initial impairment charge in the fourth quarter of 2007 at Uruguaiana, there were impairment charges of $36&nbsp;million recognized during the first three quarters of 2008. The impairment was triggered by a combination of gas curtailments and increases in the spot market price of energy in 2007 that continued in 2008. The additional impairment charges in 2008 were primarily due to fixed asset purchase agreements in place. Uruguaiana is a thermoelectric generation plant located in Brazil and reported in the Latin America Generation segment. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company recognized impairment charges totaling $31&nbsp;million related to a project in South Africa the Company withdrew from during the first quarter of 2008. These represented project development costs and an impairment of turbine deposits related to the project. All costs capitalized and incurred on the project have been written off as no future benefit is expected from these assets. This project was reported in the Europe &amp; Africa Generation segment. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Anhui Development and Reform commission issued notice to our Hefei plant in China, in March 2007 as a result of the 2007 State Council's decision to shut down smaller, inefficient and potentially polluting generation units nationwide. A settlement agreement was signed March&nbsp;30, 2008 to end the contractual PPA arrangement. In accordance with SFAS No.&nbsp;144, management concluded that the assets were impaired in March 2008, since the long-lived asset group would be sold or otherwise disposed of significantly before the end of its previously estimated life. As a result, impairment charges of $18&nbsp;million were recognized associated with the settlement agreement to shut down the Hefei plant, which is reported in the Asia Generation segment. </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=321></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=40></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>(in millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Uruguaiana</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>352</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Placerita</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>25</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>AgCert</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Coal Creek</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>408</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the fourth quarter of 2007, the combination of gas curtailments and increases in the spot market price of energy triggered an impairment analysis of Uruguaiana's long-lived assets for recoverability. Based on the accounting guidance provided by SFAS No.&nbsp;144, management concluded that an impairment occurred during fourth quarter 2007 due to the carrying amount of its long-lived asset exceeding its fair value. The expected present value of future cash flows was used to estimate fair value. As a result of this impairment analysis, a pre-tax impairment charge of $352&nbsp;million was recognized which represents a full impairment of the fixed assets. Uruguaiana is a thermoelectric plant located in Brazil and is reported in the Latin America Generation segment. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In August&nbsp;2007, Placerita, a gas-fired combined cycle generation plant located in the United States, sustained property damage to the compressor section in one of its gas turbines. This event triggered an impairment analysis of the plant's long-lived assets, which resulted in a pre-tax impairment charge of approximately $25&nbsp;million, which represents the net book value of the plant. It was determined that no future net cash flows would be received from the use of this long-lived asset and it was fully impaired. Placerita is reported in the North America Generation segment. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In May&nbsp;2006, AES advanced AgCert, a United Kingdom based corporation that produces emission reduction credits, cash of $52&nbsp;million. AES recognized this prepayment as a long-term asset as consideration for future CER credits and AgCert stock warrants. The asset is revalued each period based on current exchange rates. In the fourth quarter of 2007, AgCert notified AES that it was not able to meet its contractual obligations to deliver CERs, which triggered an analysis of the asset's recoverability. AgCert's financial information indicated a significant decrease in liquidity. As a result of the decline in liquidity and AgCert's inability to fulfill its contractual obligations for future delivery of the CERs, the Company recognized a pre-tax impairment charge of $14&nbsp;million using the net present value of forecasted operations. This investment and long-term asset are reported in the Corporate and Other segment. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the third quarter of 2007, AES made a decision to curtail operations at Coal Creek Minerals,&nbsp;LLC ("Coal Creek"), a coal mining company, due to its inability to meet expected financial projections. The abandonment of Coal Creek triggered an impairment analysis of its long-lived assets, which resulted in a pre-tax impairment charge of approximately $10&nbsp;million. The fair market value for fixed assets was estimated by evaluating the probability of all assets to be sold and the most recent sale price attributed to other assets recently sold. Coal Creek is owned by one of our subsidiaries, Cavanal Minerals, which is reported in the North America Generation segment. </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=321></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=40></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>(in millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Chigen</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Itabo</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>17</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the fourth quarter of 2006, as a result of performing the annual goodwill impairment analysis of AES China Generating&nbsp;Co.&nbsp;Ltd ("Chigen") in accordance with SFAS No.&nbsp;142, a potential impairment of its equity investment in Wuhu, a coal-fired plant located in China, was identified. As part of the subsequent impairment analysis, the fair value of this investment was analyzed and determined to be less than the carrying value, resulting in a pre-tax impairment charge of $6&nbsp;million. Chigen is reported in the Asia Generation segment. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June&nbsp;2006, AES recognized a pre-tax impairment charge of $5&nbsp;million related to five gas turbines that were classified as held for sale at Itabo. The impairment loss was recognized based on bids received from potential buyers that indicated the market value of the turbines was lower than the carrying value. Itabo is included in the results of the Latin America Generation segment. AES began consolidating Itabo subsequent to its purchase of an additional ownership interest in May&nbsp;2006. </FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>24. RISKS AND UNCERTAINTIES </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AES is a global power producer in 29 countries on five continents. See additional discussion of the Company's principal markets in Note&nbsp;15&#151;Segment and Geographic Information. Our principal lines of business are Generation and Utilities. The Generation line of business uses a wide range of technologies, including coal, gas, hydroelectric, and biomass as fuel to generate electricity. Our Utilities business is comprised of businesses that transmit, distribute, and in certain circumstances generate power. In addition, the Company continues to expand our reach into the renewables area. These efforts include projects primarily in wind and solar. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AES is a global power producer in 29 countries on five continents. See additional discussion of the Company's principal markets in Note&nbsp;15&#151;Segment and Geographic Information. Our principal lines of business are Generation and Utilities. The Generation line of business uses a wide range of technologies, including coal, gas, hydroelectric, and biomass as fuel to generate electricity. Our Utilities business is comprised of businesses that transmit, distribute, and in certain circumstances generate power. In addition, the Company continues to expand our reach into the renewables area. These efforts include projects primarily in wind and solar. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>POLITICAL AND ECONOMIC RISKS&#151;</B></FONT><FONT size=2>The Company's market capitalization has been negatively impacted largely in the second half of 2008. During this period, credit markets and global markets deteriorated and experienced increased market volatility, which can pose risks to the overall liquidity of our businesses with heightened unpredictability in currencies, counterparty credit risk and the widening of credit spreads in certain markets. If market conditions are protracted or continue to deteriorate, the Company may be at risk to decreased earnings and cash flows due to, among other factors, adverse fluctuations in the commodities and foreign currency spot markets or deterioration in global macroeconomic conditions. With the tightening of the credit markets, there is a risk that future investments may not be able to be financed through accessing capital and debt markets and may be subject to restrictions in the near future. Currently, the Company has a below-investment grade rating from Standard&nbsp;&amp; Poor's of BBB-. This may limit the ability of the Company to finance new and existing development projects to cash currently available on hand and through reinvestment of earnings. As of December&nbsp;31, 2008, the Company had $903&nbsp;million of unrestricted cash available. As a result of the impact of the 2008 credit market environment, the Company has evaluated current development projects in the pipeline to assess their future profitability. Impairment expense was recognized in the fourth quarter of 2008 related to these development projects in the pipeline that the Company considered to be impaired or for which they decided to cease future development efforts. These impairment charges represented a net $34&nbsp;million impact on the Company's earnings, but impairments may continue or could increase in the future if the credit market continues to worsen. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During 2008, approximately 83% of our revenue, and all of our revenue from discontinued businesses, was generated outside the United States and a significant portion of our international operations is conducted in developing countries. While our growth strategy has evolved as 2008 has progressed, to a focus on targeted projects in order to maintain our liquidity, we continue to invest in projects in developing countries because the growth rates and the opportunity to implement operating improvements and achieve higher operating margins may be greater than those typically achievable in more developed countries. International operations, particularly the operation, financing and development of projects in developing countries, entail significant risks and uncertainties, including, without limitation: </FONT></P> <UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>economic, social and political instability in any particular country or region; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>adverse changes in currency exchange rates; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>government restrictions on converting currencies or repatriating funds; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>unexpected changes in foreign laws and regulations or in trade, monetary or fiscal policies; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>high inflation and monetary fluctuations; </FONT></DD></DL></UL> <UL> <UL></UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>restrictions on imports of coal, oil, gas or other raw materials required by our generation businesses to operate; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>threatened or consummated expropriation or nationalization of our assets by foreign governments; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>unwillingness of governments, government agencies or similar organizations to honor their contracts; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>inability to obtain access to fair and equitable political, regulatory, administrative and legal systems; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>adverse changes in government tax policy; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>difficulties in enforcing our contractual rights or enforcing judgments or obtaining a just result in local jurisdictions; and </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>potentially adverse tax consequences of operating in multiple jurisdictions. </FONT></DD></DL></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any of these factors, individually or in combination with others, could materially and adversely affect our business, results of operations and financial condition. In addition, our Latin American operations experience volatility in revenues and earnings which have caused and are expected to cause significant volatility in our results of operations and cash flows. The volatility is caused by regulatory and economic difficulties, political instability and currency devaluations being experienced in many of these countries. This volatility reduces the predictability and enhances the uncertainty associated with cash flows from these businesses. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our inability to predict, influence or respond appropriately to changes in law or regulatory schemes, including any inability to obtain expected or contracted increases in electricity tariff rates or tariff adjustments for increased expenses, could adversely impact our results of operations or our ability to meet publicly announced projections or analyst's expectations. Furthermore, changes in laws or regulations or changes in the application or interpretation of regulatory provisions in jurisdictions where we operate, particularly our Utilities where electricity tariffs are subject to regulatory review or approval, could adversely affect our business, including, but not limited to: </FONT></P> <UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>changes in the determination, definition or classification of costs to be included as reimbursable or pass-through costs; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>changes in the definition or determination of controllable or non-controllable costs; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>changes in the definition of events which may or may not qualify as changes in economic equilibrium; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>changes in the timing of tariff increases; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>other changes in the regulatory determinations under the relevant concessions; or </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>changes in environmental regulations, including regulations relating to GHG emissions in any of our businesses. </FONT></DD></DL></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any of the above events may result in lower margins for the affected businesses, which can adversely affect our business. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>RISKS RELATED TO FOREIGN CURRENCIES</B></FONT><FONT size=2>&#151;AES operates businesses in many foreign environments and such operations in foreign countries may be impacted by significant fluctuations in foreign currency exchange rates. The Company's financial position and results of operations have been significantly affected by fluctuations in the value of the Brazilian real, the Argentine peso, the Dominican Republic peso, the Euro, the Chilean peso, the Colombian peso and the Philippine peso relative to the U.S.&nbsp;Dollar. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>RISKS RELATED TO POWER SALES CONTRACTS</B></FONT><FONT size=2>&#151;Several of the Company's power plants rely on power sales contracts with one or a limited number of entities for the majority of, and in some case all of, the relevant plant's output over the term of the power sales contract. The remaining term of the power sales contracts related to the Company's power plants range from less than one to 41&nbsp;years. No single customer accounted for 10% or more of total revenues in 2008, 2007, or 2006. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The cash flows and results of operations of such plants are dependent on the credit quality of the purchasers and the continued ability of their customers and suppliers to meet their obligations under the relevant power sales contract. If a substantial portion of the Company's long-term power sales contracts were modified or terminated, the Company would be adversely affected to the extent that it was unable to find other customers at the same level of contract profitability. The loss of one or more significant power sales contracts or the failure by any of the parties to a power sales contract to fulfill its obligations thereunder could have a material adverse impact on the Company's business, results of operations and financial condition. </FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>25. OFF-BALANCE SHEET ARRANGEMENTS AND RELATED PARTY TRANSACTIONS </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IPL, a consolidated subsidiary of the Company, formed IPL Funding Corporation ("IPL Funding") in 1996 to purchase, on a revolving basis, up to $50&nbsp;million of the retail accounts receivable and related collections of IPL. IPL Funding is consolidated by IPL and IPALCO since it meets requirements set forth in SFAS No.&nbsp;140, </FONT><FONT size=2><I>Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities,</I></FONT><FONT size=2> to be considered a qualified special-purpose entity. IPL Funding has entered into a purchase facility with unrelated parties ("the Purchasers") pursuant to which the Purchasers agree to purchase from IPL Funding, on a revolving basis, up to $50&nbsp;million of the receivables purchased from IPL. During 2008, this agreement was extended through May&nbsp;26, 2009. Accounts receivable on the Company's Consolidated Balance Sheets are stated net of the $50&nbsp;million sold. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IPL retains servicing responsibilities for its role as a collection agent on the amounts due on the sold receivables. However, the Purchasers assume the risk of collection on the purchased receivables without recourse to IPL in the event of a loss. While no direct recourse to IPL exists, it risks loss in the event collections are not sufficient to allow for full recovery of its retained interests. No servicing asset or liability is recognized since the servicing fee paid to IPL approximates a market rate. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The carrying values of the retained interest is determined by allocating the carrying value of the receivables between the assets sold and the interests retained based on relative fair value. The key assumptions in estimating fair value are credit losses, the selection of discount rates, and expected receivables turnover rate. As a result of short accounts receivable turnover period and historically low credit losses, the impact of these assumptions has not been significant to the fair value. The hypothetical effect on the fair value of the retained interests assuming both a 10% and a 20% </FONT><FONT size=2>unfavorable variation in credit losses or discount rates is not material due to the short turnover of receivables and historically low credit loss history. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The losses recognized on the sales of receivables were $2&nbsp;million, $3&nbsp;million and $3&nbsp;million for the years ended December&nbsp;31, 2008, 2007 and 2006, respectively. These losses are included in other operating expense on the Consolidated Statements of Operations. The amount of the losses recognized depends on the previous carrying amount of the financial assets involved in the transfer, allocated between the assets sold and the interests that continue to be held by the transferor based on their relative fair value at the date of transfer, and the proceeds received. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IPL's retained interest in the receivables sold was $83&nbsp;million and $64&nbsp;million at December&nbsp;31, 2008 and 2007, respectively. There were no proceeds from new securitizations for each of the years ended December&nbsp;31, 2008, 2007 and 2006. Servicing fees of $0.6&nbsp;million were received for each of the years ended December&nbsp;31, 2008, 2007 and 2006. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IPL and IPL Funding provide certain indemnities to the Purchasers, including indemnification in the event that there is a breach of representations and warranties made with respect to the purchased receivables. IPL Funding and IPL each have agreed to indemnify the Purchasers on an after-tax basis for any and all damages, losses, claims, liabilities, penalties, taxes, costs and expenses at any time imposed on or incurred by the indemnified parties arising out of or otherwise relating to the purchase facility, subject to certain limitations as defined in the Purchase Facility. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Purchase Facility, if IPL fails to maintain certain financial covenants regarding interest coverage and debt to capital, it would constitute a "termination event." As of December&nbsp;31, 2008, IPL was in compliance with such covenants. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of IPL's current credit rating, the facility agent has the ability to: </FONT></P> <UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>(i)</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>replace IPL as the collection agent; and <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>(ii)</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>declare a "lock-box" event. </FONT></DD></DL></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under a lock-box event or a termination event, the facility agent has the ability to require all proceeds of purchased receivables of IPL to be directed to lock-box accounts within 45&nbsp;days of notifying IPL. A termination event would also: </FONT></P> <UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>(i)</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>give the facility agent the option to take control of the lock-box account; and <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>(ii)</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>give the Purchasers the option to discontinue the purchase of new receivables and cause all proceeds of the purchased receivables to be used to reduce the Purchaser's investment and to pay other amounts owed to the Purchasers and the facility agent. </FONT></DD></DL></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This would have the effect of reducing the operating capital available to IPL by the aggregate amount of such purchased receivables (currently $50&nbsp;million). </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Panamanian businesses are partially owned by the Government of Panama (the "Government"). The Government, in turn, partially owns the distribution companies within Panama. For the years ended December&nbsp;31, 2008, 2007 and 2006, our Panamanian businesses recognized electricity sales to the Government totaling $203&nbsp;million, $168&nbsp;million and $141&nbsp;million, respectively. For the same period, our Panamanian businesses purchased electricity which excludes transmission </FONT><FONT size=2>charges from the Government totaling $27&nbsp;million, $24&nbsp;million and $15&nbsp;million, respectively. As of December&nbsp;31, 2008 and 2007, our Panamanian businesses owed the Government $2&nbsp;million and $3&nbsp;million, respectively, payable on normal trade terms. For the same period, the Government owed our Panamanian businesses $29&nbsp;million and $44&nbsp;million, respectively, payable on normal trade terms. </FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>26. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) </B></FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Quarterly Financial Data </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following tables summarize the unaudited quarterly statements of operations for the Company for 2008 and 2007. Amounts reflect all adjustments necessary in the opinion of management for a fair statement of the results for interim periods. </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=299></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>Quarter ended 2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Mar 31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>June&nbsp;30 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Sept 30 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Dec 31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>(in&nbsp;millions, except per share data)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Revenues</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,081</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,126</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,319</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,544</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Gross margin</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,042</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,029</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>962</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>674</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Income from continuing operations, net of tax</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>232</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>902</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>147</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(65</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Discontinued operations, net of tax</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net income</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>233</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>903</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>145</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(47</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-TOP: 12pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Basic income per share:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Income from continuing operations, net of tax</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.35</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1.34</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.22</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(0.10</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Discontinued operations, net of tax</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.03</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Basic income per share</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.35</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1.34</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.22</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(0.07</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-TOP: 12pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Diluted income per share:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Income from continuing operations, net of tax</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.34</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1.31</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.22</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(0.10</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Discontinued operations, net of tax</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.03</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Diluted income per share</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.34</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1.31</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.22</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(0.07</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV> <P style="FONT-FAMILY: times"><FONT size=2><BR></FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=299></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>Quarter ended 2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Mar 31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>June&nbsp;30 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Sept 30 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Dec 31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>(in&nbsp;millions, except per share data)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Revenues</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,072</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,320</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,468</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,656</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Gross margin</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>841</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>898</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>844</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>809</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Income from continuing operations, net of tax</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>110</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>282</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>92</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Discontinued operations, net of tax</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(571</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(28</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net (loss) income</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(461</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>254</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>104</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-TOP: 11pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Basic income per share:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Income from continuing operations, net of tax</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.17</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.42</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.14</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Discontinued operations, net of tax</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(0.86</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(0.04</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.02</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.01</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Basic (loss) income per share</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(0.69</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.38</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.16</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.01</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-TOP: 11pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Diluted income per share:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Income from continuing operations, net of tax</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.16</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.41</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.14</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Discontinued operations, net of tax</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(0.84</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(0.04</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.01</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.01</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Diluted (loss) income per share</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(0.68</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.37</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.15</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.01</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times" align=center><FONT size=2><B>SCHEDULE I CONDENSED FINANCIAL INFORMATION OF REGISTRANT <BR><BR>UNCONSOLIDATED BALANCE SHEETS <BR><BR>(IN MILLIONS) <BR></B></FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=365></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=27></TD> <TD style="FONT-FAMILY: times" width=14></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=27></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" align=middle colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>ASSETS</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Current Assets:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Cash and cash equivalents</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>200</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>913</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Restricted cash</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>13</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>15</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Accounts and notes receivable from subsidiaries</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>710</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>932</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Deferred income taxes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>19</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Prepaid expenses and other current assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>43</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>62</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total current assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>985</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,933</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Investment in and advances to subsidiaries and affiliates</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,659</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,220</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Office Equipment:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Cost</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>66</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>67</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Accumulated depreciation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(34</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(29</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Office equipment, net</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>32</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>38</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other Assets:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Deferred financing costs (net of accumulated amortization of $89 and $75, respectively)</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>67</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>71</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Deferred income taxes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>311</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>522</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>213</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total other assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>381</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>806</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9,057</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8,997</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" align=middle colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>LIABILITIES AND STOCKHOLDERS' EQUITY</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Current Liabilities:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Accounts payable</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Accrued and other liabilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>210</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>261</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Senior notes payable&#151;current portion</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>154</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>223</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total current liabilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>364</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>491</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Long-term Liabilities:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Term loan</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>200</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>200</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Senior notes payable</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,277</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,615</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Junior subordinated notes and debentures payable</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>517</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>517</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other long-term liabilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>30</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total long-term liabilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,024</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,342</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Stockholders' equity:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Common stock</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Additional paid-in capital</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,832</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,776</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Accumulated loss</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,241</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Accumulated other comprehensive loss</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3,018</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,378</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Treasury stock</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(144</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total stockholders' equity</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,669</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,164</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9,057</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8,997</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times" align=center><FONT size=2><B><BR><BR>STATEMENTS OF UNCONSOLIDATED OPERATIONS <BR><BR>(IN MILLIONS) <BR></B></FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=346></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=20></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=20></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>For the Years Ended December&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Revenues from subsidiaries and affiliates</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>36</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>32</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>38</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Equity in earnings (losses) of subsidiaries and affiliates</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,019</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>588</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>882</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Interest income</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>173</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>155</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>48</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>General and administrative expenses</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(264</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(411</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(293</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Interest expense</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(516</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(471</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(443</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Income (loss) before income taxes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,448</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(107</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>232</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Income tax benefit (expense)</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(215</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>15</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net income (loss)</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,233</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(95</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>247</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times" align=center><FONT size=2><B><BR><BR>STATEMENTS OF UNCONSOLIDATED CASH FLOWS <BR><BR>(IN MILLIONS) <BR></B></FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=315></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=28></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=28></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=20></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>For the Years Ended December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net cash provided by operating activities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>863</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>213</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>288</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>Investing Activities:</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Proceeds from asset sales, net of expenses</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>55</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>120</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Investment in and advances to subsidiaries</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,098</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(899</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(337</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Acquisitions, net of cash acquired</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(95</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(103</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Return of capital</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>89</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>265</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Increase in restricted cash</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Additions to property, plant and equipment</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(23</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(199</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(37</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net cash used in investing activities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,125</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(788</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(348</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>Financing Activities:</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Borrowings of notes payable and other coupon bearing securities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>625</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,000</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Repayments of notes payable and other coupon bearing securities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,037</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,315</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(150</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Return of investment on equity capital contributions</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>117</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Loans from subsidiaries</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>90</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>534</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Proceeds from issuance of common stock</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>28</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>58</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>78</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Purchase of treasury stock</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(143</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Payments for deferred financing costs</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(14</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(27</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(9</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net cash (used in) provided by financing activities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(451</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,250</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>36</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Increase (decrease) in cash and cash equivalents</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(713</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>675</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(24</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Cash and cash equivalents, beginning</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>913</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>238</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>262</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Cash and cash equivalents, ending</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>200</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>913</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>238</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>Schedule of non-cash investing and financing activities:</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Cash payments for interest, net of amounts capitalized</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>469</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>416</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>419</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Cash payments for income taxes, net of refunds</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times" align=center><FONT size=2><B><BR>NOTES TO SCHEDULE I <BR></B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><B>1. Application of Significant Accounting Principles </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>Accounting for Subsidiaries and Affiliates</B></FONT><FONT size=2>&#151;The AES&nbsp;Corporation (the "Company") has accounted for the earnings of its subsidiaries on the equity method in the unconsolidated financial information. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>Revenues</B></FONT><FONT size=2>&#151;Construction management fees earned by the parent from its consolidated subsidiaries are eliminated. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>Income Taxes</B></FONT><FONT size=2>&#151;Effective January&nbsp;1, 2007, the Company adopted the provisions set forth in FIN No.&nbsp;48, </FONT><FONT size=2><I>Accounting for Uncertainty in Income Taxes</I></FONT><FONT size=2>, ("FIN No.&nbsp;48"). Under FIN No.&nbsp;48, positions taken on the Company's income tax return which satisfy a more-likely-than-not threshold will be recognized in the financial statements. The unconsolidated income tax expense or benefit computed for the Company in accordance with SFAS No.&nbsp;109, </FONT><FONT size=2><I>Accounting for Income Taxes</I></FONT><FONT size=2>, reflects the tax assets and liabilities of the Company on a stand-alone basis and the effect of filing a consolidated U.S.&nbsp;income tax return with certain other affiliated companies. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>Accounts and&nbsp;Notes Receivable from Subsidiaries</B></FONT><FONT size=2>&#151;such amounts have been shown in current or long-term assets based on terms in agreements with subsidiaries, but payment is dependent upon meeting conditions precedent in the subsidiary loan agreements. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><B>Selected Unconsolidated Balance Sheet Data: </B></FONT></P></UL><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=339></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=44></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=44></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>December&nbsp;31,<BR>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>December&nbsp;31,<BR>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>Assets</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Investment in and advances to subsidiaries and affiliates</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,659</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,220</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Deferred income taxes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>311</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>522</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total other assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>381</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>806</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9,057</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8,997</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-TOP: 12pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>Liabilities&nbsp;&amp; Stockholders' Equity</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other long-term liabilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>30</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total long-term liabilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,024</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,342</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Additional paid-in capital</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,832</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,776</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Accumulated loss</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,241</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Accumulated other comprehensive loss</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3,018</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,378</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total stockholders' equity</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,669</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,164</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total liabilities&nbsp;&amp; stockholders' equity</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9,057</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8,997</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR></TBODY></TABLE></DIV> <P style="FONT-FAMILY: times"><FONT size=2><B>Selected Unconsolidated Operations Data: </B></FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=350></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=20></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>For the Year Ended December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Equity in earnings of subsidiaries and affiliates</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,019</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>588</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>882</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-TOP: 12pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Income (loss) before cumulative effect of change in accounting principle</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>1,448</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>(107</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2><BR>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>232</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Income (loss) before income taxes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,448</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(107</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>232</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Income tax benefit</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(215</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>15</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net income (loss)</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,233</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(95</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>247</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2><B>2.&nbsp;Notes Payable </B></FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=212></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=62></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=27></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=30></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times" rowSpan=2><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5 rowSpan=2><FONT size=1><B>December&nbsp;31, </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times" rowSpan=2><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2 rowSpan=2><FONT size=1><B>Final<BR>Maturity </B></FONT></TH> <TH style="FONT-FAMILY: times" rowSpan=2><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2 rowSpan=2><FONT size=1><B>First Call<BR>Date(1) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Interest Rate </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>(in&nbsp;millions)</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Senior Secured&nbsp;Term Loan</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>LIBOR&nbsp;+&nbsp;1.75</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2011</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>200</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>200</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Senior Secured&nbsp;Notes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8.750</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2013</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5/15/08</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>690</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>752</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Senior&nbsp;Notes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8.000</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2017</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,500</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,500</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Senior&nbsp;Notes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7.750</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2015</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>500</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>500</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Senior&nbsp;Notes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8.750</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2008</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Senior&nbsp;Notes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9.500</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2009</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>154</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>467</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Senior&nbsp;Notes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9.375</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2010</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>214</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>423</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Senior&nbsp;Notes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8.875</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2011</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>129</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>307</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Senior&nbsp;Notes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8.375</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2011</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>124</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>171</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Senior&nbsp;Notes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7.750</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2014</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>500</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>500</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Senior&nbsp;Notes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8.000</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2020</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>625</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Convertible Junior Subordinated Debentures</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6.000</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2008</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>214</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Convertible Junior Subordinated Debentures</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6.750</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2029</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>517</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>517</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Unamortized discounts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>SUBTOTAL</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,148</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,555</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Less: Current maturities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(154</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(223</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,994</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,332</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>(1)</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>The first call date represents the date that the Company, at its option, can call the related debt. </FONT></DD></DL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>FUTURE MATURITIES OF DEBT</B></FONT><FONT size=2>&#151;Scheduled maturities of total debt for continuing operations at December&nbsp;31, 2008 are: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=338></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>154</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2010</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>214</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2011</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>453</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2012</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2013</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>690</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Thereafter</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,637</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,148</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2><B>3. Dividends from Subsidiaries and Affiliates </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash dividends received from consolidated subsidiaries and from affiliates accounted for by the equity method were as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=281></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2007 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2006 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Subsidiaries</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>738</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>737</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>808</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Affiliates</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>61</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>21</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>19</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2><B>4. Guarantees and Letters of Credit </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>GUARANTEES</B></FONT><FONT size=2>&#151;In connection with certain of its project financing, acquisition, and power purchase agreements, the Company has expressly undertaken limited obligations and commitments, most of which will only be effective or will be terminated upon the occurrence of future events. These obligations and commitments, excluding those collateralized by letter of credit and other obligations discussed below, were limited as of December&nbsp;31, 2008, by the terms of the agreements, to an aggregate of approximately $411&nbsp;million representing 34 agreements with individual exposures ranging from less than $1&nbsp;million up to $53&nbsp;million. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>LETTERS OF CREDIT</B></FONT><FONT size=2>&#151;At December&nbsp;31, 2008, the Company had $207&nbsp;million in letters of credit outstanding representing 19 agreements with individual exposures ranging from less than $1&nbsp;million up to $131&nbsp;million, which operate to guarantee performance relating to certain project development and construction activities and subsidiary operations. In 2008, the Company paid letter of credit fees which averaged 3.4% per annum on the outstanding amounts. In addition, the Company had less than $1&nbsp;million in surety bonds outstanding at December&nbsp;31, 2008. </FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times" align=center><FONT size=2><B>SCHEDULE II <BR><BR>VALUATION AND QUALIFYING ACCOUNTS <BR><BR>(IN MILLIONS) <BR></B></FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=209></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=33></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=28></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=41></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=34></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=33></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Additions </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>Deductions </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Balance at<BR>Beginning<BR>of the<BR>Period </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Charged<BR>to Costs<BR>and<BR>Expenses </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Translation<BR>Adjustment </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Amounts<BR>Written off </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Balance at<BR>the End of<BR>the Period </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Allowance for accounts receivables<BR>(current and noncurrent)</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Year ended December&nbsp;31, 2006</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>485</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>87</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>39</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(280</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>331</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Year ended December&nbsp;31, 2007</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>331</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>179</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>53</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(192</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>371</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Year ended December&nbsp;31, 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>371</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>127</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(100</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(65</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>333</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR></TBODY></TABLE></DIV></BODY></HTML> 1615000000 1762000000 1718000000 465000000 621000000 479000000 1347000000 1161000000 1097000000 49000000 18000000 4000000 434000000 647000000 134000000 37000000 30000000 1583000000 2979000000 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <UL> <P style="FONT-FAMILY: times"><FONT size=2><B>NEW ACCOUNTING PRONOUNCEMENTS </B></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2><I>SFAS No.&nbsp;157, Fair Value Measurements </I></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In September 2006, the FASB issued SFAS No.&nbsp;157. SFAS No.&nbsp;157 provides enhanced guidance for using fair value to measure assets and liabilities, but does not expand the application of fair value accounting to any new circumstances. The Company adopted SFAS No.&nbsp;157 on January&nbsp;1, 2008. See the Company's Fair Value policy footnote above for additional details. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><I>FSP No.&nbsp;157-1: Application of FASB Statement No.&nbsp;157 to FASB Statement No.&nbsp;13 and Other Accounting Pronouncements That Address Fair Value Measurements for Purposes of Lease Classification or Measurement under Statement 13 ("FSP No.&nbsp;157-1"). </I></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In February 2008, the FASB issued FASB Staff Position ("FSP") No.&nbsp;157-1. FSP No.&nbsp;157-1 excludes SFAS No.&nbsp;13, </FONT><FONT size=2><I>Accounting for Leases</I></FONT><FONT size=2>, ("SFAS No.&nbsp;13") and most other accounting pronouncements that address fair value measurement of leases from the scope of SFAS No.&nbsp;157. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><I>FSP No.&nbsp;157-2: Effective Date of FASB Statement No.&nbsp;157 ("FSP No.&nbsp;157-2"). </I></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In February 2008, the FASB issued FSP No.&nbsp;157-2, which delays the effective date of SFAS No.&nbsp;157 for all nonrecurring fair value measurements of nonfinancial assets and liabilities until fiscal years beginning after November&nbsp;15, 2008, or January&nbsp;1, 2009 for AES. AES continues to evaluate the future impact of SFAS No.&nbsp;157 on these assets and liabilities but at this time does not believe the impact will be material. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><I>FSP No.&nbsp;157-3: Determining the Fair Value of a Financial Asset When the Market for That Asset is Not Active ("FSP No.&nbsp;157-3"). </I></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In October 2008, the FASB issued FSP No.&nbsp;157-3, which clarifies the application of SFAS No.&nbsp;157 in a market that is not active and provides an example to illustrate key considerations in determining the fair value of a financial asset when the market for that financial asset is not active. The guidance emphasizes that determining fair value in an inactive market depends on the facts and circumstances and may require the use of significant judgments. FSP No.&nbsp;157-3 is effective upon issuance, including prior periods for which financial statements have not been issued, and therefore was effective for AES at September&nbsp;30, 2008. The adoption of FSP No.&nbsp;157-3 did not have a material impact on the Company. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><I>SFAS No.&nbsp;159: The Fair Value Option for Financial Assets and Financial Liabilities&#151;including an amendment of FAS No.&nbsp;115 ("SFAS No.&nbsp;159"). </I></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In February 2007, the FASB issued SFAS No.&nbsp;159, which allows entities to choose, at specified election dates, to measure eligible financial assets and liabilities at fair value that are not otherwise required to be measured at fair value. If a company elects the fair value option for an eligible item, changes in that item's fair value in subsequent reporting periods must be recognized in current earnings. The Company adopted SFAS No.&nbsp;159 effective January&nbsp;1, 2008. As allowed by the standard, the Company did not elect the fair value option for the measurement of any eligible assets or liabilities. Therefore, the January&nbsp;1, 2008 adoption did not have an impact on the Company. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><I>FSP FAS&nbsp;133-1 and FIN&nbsp;45-4: Disclosures about Credit Derivatives and Certain Guarantees: An Amendment of FASB Statement No.&nbsp;133 and FASB Interpretation No.45; and Clarification of the Effective Date of FASB Statement No.&nbsp;161 ("FSP No.&nbsp;FAS&nbsp;133-1&nbsp;&amp; FIN&nbsp;45-4" or "the FSP"). </I></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In September&nbsp;2008, the FASB issued the FSP to address the concerns of financial statement users that existing disclosure requirements under SFAS No.&nbsp;133 do not adequately reflect the potential adverse effects of changes in credit risk on the financial statements of the sellers of credit derivatives. FSP No.&nbsp;FAS&nbsp;133-1&nbsp;&amp; FIN&nbsp;45-4 requires disclosure of additional information about these potential adverse effects of changes in credit risk on the financial position, financial performance, and cash flows of sellers of credit derivatives. The disclosures are required for all credit derivatives, whether freestanding or embedded in a hybrid instrument. The FSP also amends FIN No.&nbsp;45 to require additional disclosure about the current status of the payment performance risk of a guarantee. This new disclosure applies to all guarantees, not just those related to credit risk. The provisions in the FSP are effective for reporting periods ending after November&nbsp;15, 2008, or December&nbsp;31, 2008 for AES. AES has incorporated these additional disclosures into its Form&nbsp;10-K for the year ended December&nbsp;31, 2008. Comparative disclosures are required for periods subsequent to adoption. Additionally, the FSP clarifies that SFAS No.&nbsp;161 is effective for all periods, including quarterly and annual periods beginning after November&nbsp;15, 2008, or January&nbsp;1, 2009 for AES. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><I>FSP No.&nbsp;FAS&nbsp;140-4 and FIN&nbsp;46(R)-8: Disclosures by Public Entities (Enterprises) about Transfers of Financial Assets and Interests in Variable Interest Entities ("FSP No.&nbsp;FAS&nbsp;140-4&nbsp;&amp; FIN&nbsp;46(R)-8"). </I></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December&nbsp;2008, the FASB issued FSP No.&nbsp;FAS&nbsp;140-4&nbsp;&amp; FIN&nbsp;46(R)-8, which expands the required disclosures pertaining to an enterprise's involvement with VIEs and is intended to provide more transparent information related to that involvement. The new disclosure requirements include additional information regarding consolidated VIEs as well as a requirement for sponsors of a VIE to disclose certain information even if they do not hold a significant financial interest in the VIE. FSP No.&nbsp;FAS&nbsp;140-4&nbsp;&amp; FIN&nbsp;46(R)-8 is effective for reporting periods ending after December&nbsp;15, 2008 but there was no material impact to our disclosures. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following accounting standards have been issued, but as of December&nbsp;31, 2008 are not yet effective and have not been adopted by AES. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><I>SFAS No.&nbsp;141(revised 2007): Business Combinations ("SFAS No.&nbsp;141(R)") and SFAS No.&nbsp;160: Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB No.&nbsp;51 ("SFAS No.&nbsp;160"). </I></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December&nbsp;2007, the FASB issued SFAS No.&nbsp;141(R) and SFAS No.&nbsp;160. SFAS No.&nbsp;141(R) will significantly change how business acquisitions are accounted for at the acquisition date and in subsequent periods. The standard changes the accounting for the business combination at the acquisition date to a fair value based approach rather than the cost allocation approach currently used. Other differences include changes in the accounting for acquisition related costs, contingencies and income taxes. SFAS No.&nbsp;160 changes the accounting and reporting for minority interests, which will be classified as a component of equity and will be referred to as noncontrolling interests. SFAS No.&nbsp;141(R) and SFAS No.&nbsp;160 will be effective for public companies for fiscal years beginning on or after December&nbsp;15, 2008, January&nbsp;1, 2009 for AES. SFAS No.&nbsp;141(R) and SFAS No.&nbsp;160 will be applied </FONT><FONT size=2>prospectively, except for the presentation and disclosure requirements in SFAS No.&nbsp;160 for existing minority interests which will require retroactive adoption. Early adoption is prohibited. AES has not completed its analysis of the potential future impact of SFAS No.&nbsp;141(R) and SFAS No.&nbsp;160. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><I>SFAS No.&nbsp;161: Disclosures about Derivative Instruments and Hedging Activities, an amendment of SFAS No.&nbsp;133 ("SFAS No.&nbsp;161"). </I></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In March 2008, the FASB issued SFAS No.&nbsp;161, which expands the disclosure requirements under SFAS No.&nbsp;133. The enhanced quantitative and qualitative disclosures will include how and why an entity uses derivative instruments, how derivative instruments and related hedged items are accounted for and how derivative instruments and related hedged items affect an entity's financial position, financial performance and cash flows. SFAS No.&nbsp;161 is effective for the Company on January&nbsp;1, 2009. SFAS No.&nbsp;161 also amends SFAS No.&nbsp;107, </FONT><FONT size=2><I>Disclosures about Fair Value Instruments</I></FONT><FONT size=2> ("SFAS No.&nbsp;107"), to clarify that derivative instruments are subject to SFAS No.&nbsp;107 disclosure requirements regarding concentration of credit risk. The Company will incorporate the additional disclosures beginning with its Form&nbsp;10-Q for the three months ending March&nbsp;31, 2009. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><I>SFAS No 162: The Hierarchy of Generally Accepted Accounting Principles ("SFAS No.&nbsp;162"). </I></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In May 2008, the FASB issued SFAS No.&nbsp;162, which identifies the framework, or hierarchy for selecting accounting principles to be used in preparing financial statements presented in conformity with U.S.&nbsp;GAAP. SFAS No.&nbsp;162 amends the existing U.S.&nbsp;GAAP hierarchy established and set forth in the American Institute of Certified Public Accountants ("AICPA") Statement of Auditing Standards No.&nbsp;69, </FONT><FONT size=2><I>The Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles</I></FONT><FONT size=2> ("SAS&nbsp;69"). The framework serves as a guide in determining the appropriate accounting treatment to be used for a transaction or event. We do not expect SFAS No.&nbsp;162 to have an impact on the Company's current accounting practices. The Standard will become effective 60&nbsp;days following the SEC's approval of Public Company Accounting Oversight Board ("PCAOB") amendments to AU&nbsp;Section&nbsp;411, </FONT><FONT size=2><I>The Meaning of Present Fairly in Conformity with Generally Accepted Accounting Principle</I></FONT><FONT size=2>s. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><I>FSP No.&nbsp;FAS&nbsp;142-3: Determination of the Useful Life of Intangible Assets ("FSP No.&nbsp;FAS&nbsp;142-3"). </I></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In April 2008, the FASB issued FSP No.&nbsp;FAS&nbsp;142-3, which amends the factors considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset under SFAS No.&nbsp;142. FSP No.&nbsp;142-3 requires a consistent approach between the useful life of a recognized intangible asset under SFAS No.&nbsp;142 and the period of expected cash flows used to measure the fair value of an asset under SFAS No.&nbsp;141(R). The FSP also requires enhanced disclosures when an intangible asset's expected future cash flows are affected by an entity's intent and/or ability to renew or extend the arrangement. FSP No.&nbsp;142-3 is effective for financial statements issued for fiscal years beginning after December&nbsp;15, 2008, January&nbsp;1, 2009 for AES, and is to be applied prospectively. Early adoption is prohibited. AES has not completed its analysis of the potential impact of FSP No.&nbsp;142-3, but does not believe the adoption will have a material impact on the Company's financial condition, results of operations, or cash flows. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><I>FSP No.&nbsp;APB&nbsp;14-1: Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement) ("FSP No.&nbsp;APB&nbsp;14-1"). </I></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In May 2008, the FASB issued FSP No.&nbsp;APB&nbsp;14-1, which clarifies that convertible debt instruments that may be settled in cash or other assets upon conversion are not addressed by APB No.&nbsp;14, </FONT><FONT size=2><I>Accounting for Convertible Debt and Debt Issued with Stock Purchase Warrants</I></FONT><FONT size=2>. Additionally, FSP APB No.&nbsp;14-1 requires an entity to separately account for the liability and equity components of a convertible instrument to reflect an entity's nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. FSP APB No.&nbsp;14-1 also expands the disclosure requirements regarding convertible debt instrument terms and how the instrument is reflected in an entity's financial statements. AES has reviewed the impact of FSP No.&nbsp;APB&nbsp;14-1 and determined that FSP No.&nbsp;APB&nbsp;14-1 is not applicable for any of the Company's instruments. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><I>EITF&nbsp;08-3: Accounting by Lessees for Maintenance Deposits ("EITF&nbsp;08-3"). </I></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June 2008, the Emerging Issues Task Force ("EITF") issued EITF&nbsp;08-3, which clarifies how a lessee accounts for nonrefundable maintenance deposits. Under EITF&nbsp;08-3, nonrefundable maintenance deposits will be recorded as a deposit asset and as reimbursable maintenance is performed by the lessee, the underlying maintenance is expensed or capitalized in accordance with the lessee's accounting policy. EITF&nbsp;08-3 is effective for the Company beginning on January&nbsp;1, 2009. Early adoption is not permitted. The effect of adoption will be reflected as a change in accounting principle through a cumulative effect adjustment to the opening balance of retained earnings in the year of adoption. AES is currently reviewing the potential impact of EITF&nbsp;08-3, but at this time does not believe it will have a material impact on the Company's financial statements. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><I>FSP No.&nbsp;FAS&nbsp;132(R)-1: Employers' Disclosures about Postretirement Benefit Plan Assets ("FSP No.&nbsp;FAS&nbsp;132(R)-1"). </I></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December&nbsp;2008, the FASB issued FSP No.&nbsp;FAS&nbsp;132(R)-1, which provides guidance regarding an employer's disclosures about plan assets of a defined benefit pension or other postretirement plan. The FSP is effective for fiscal years ending after December&nbsp;15, 2009, or the year ending December&nbsp;31, 2009 for AES. The Company will incorporate the required disclosures in its Form&nbsp;10-K for the year ending December&nbsp;31, 2009. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><I>EITF&nbsp;08-6: Equity Method Investment Accounting Considerations ("EITF&nbsp;08-6"). </I></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In November 2008, EITF&nbsp;08-6 was issued. This Issue clarifies the accounting for certain transactions and impairment considerations involving equity method investments. EITF&nbsp;08-6 makes certain amendments to APB&nbsp;18. The Company does not expect EITF&nbsp;08-6 to have a significant impact on current practice. EITF&nbsp;08-6 is effective for fiscal years beginning on or after December&nbsp;15, 2008, and interim periods within those fiscal years, consistent with the effective dates of Statement&nbsp;141(R) and Statement&nbsp;160, or January&nbsp;1, 2009 for AES. </FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>17. SUBSIDIARY STOCK </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Minority interest includes $60&nbsp;million of cumulative preferred stock of subsidiaries at December&nbsp;31, 2008 and 2007. The total annual dividend requirement was approximately $3&nbsp;million at December&nbsp;31, 2008 and 2007. Each series of preferred stock is redeemable solely at the option of the issuer at prices between $101 and $118 per share. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On November&nbsp;6, 2008, a wholly-owned subsidiary of the Company, Inversiones Cachagua Limitada ("Cachagua"), sold a 9.6% ownership interest in AES&nbsp;Gener in a private transaction for $174.9&nbsp;million. The sale reduced the Company's ownership percentage of AES&nbsp;Gener from 80.2% to 70.6%. The Company recognized a pre-tax loss of $30.8&nbsp;million, including $3.6&nbsp;million of related fees, from this transaction in the fourth quarter of 2008. The net proceeds from this transaction was used exclusively for Gener's capital increase as approved by Gener's Extraordinary Shareholders Meeting on November&nbsp;19, 2008. See further discussion of Gener's 2009 capital increase in Note&nbsp;27&#151;Subsequent Events. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In May and October 2007, Cachagua sold a 0.9% and 10.2% ownership interest, respectively, in AES Gener for $330.9&nbsp;million. The sale reduced the Company's ownership percentage of AES Gener to 80.2%. The Company recorded a pre-tax gain on the sale of $134.2&nbsp;million, including $8.3&nbsp;million of related fees. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><B>Sale of Subsidiary Stock and Brasiliana Restructuring</B></FONT><FONT size=2>&#151;In September&nbsp;2006, Brasiliana's wholly owned subsidiary, Transg&#225;s, sold a 33%&nbsp;economic ownership in Eletropaulo, a regulated electric utility in Brazil. Despite the reduction in economic ownership, there was no change in Brasiliana's voting interest in Eletropaulo and Brasiliana continues to control Eletropaulo. Transg&#225;s received $522&nbsp;million in net proceeds on the sale. On October&nbsp;5, 2006 Transg&#225;s, sold an additional 5%&nbsp;economic ownership in Eletropaulo for $78&nbsp;million in net proceeds. For the year ended December&nbsp;31, 2006, AES recognized a pre-tax loss of $535&nbsp;million primarily as a result of the recognition of previously deferred currency translation losses. </FONT></P></BODY></HTML> -1000000 EX-100.SCH 3 aes-20081231.xsd EX-100.SCH 0010 - CONSOLIDATED BALANCE SHEETS link:presentationLink link:calculationLink 0020 - CONSOLIDATED STATEMENTS OF OPERATIONS link:presentationLink link:calculationLink 0030 - CONSOLIDATED STATEMENTS OF CASH FLOWS link:presentationLink link:calculationLink 0040 - CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY link:presentationLink link:definitionLink link:calculationLink 0050 - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS link:presentationLink 0001 - DOCUMENT AND ENTITY INFORMATION link:presentationLink link:calculationLink 0011 - CONSOLIDATED BALANCE SHEETS (Parenthetical) link:presentationLink 0025 - CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) link:presentationLink 0045 - CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) link:presentationLink link:definitionLink 0060 - SCHEDULES link:presentationLink EX-100.PRE 4 aes-20081231_pre.xml EX-100.PRE EX-100.LAB 5 aes-20081231_lab.xml EX-100.LAB NEW ACCOUNTING PRONOUNCEMENTS Accounts payable Accrued and other liabilities Other intangible assets, accumulated amortization Accumulated other comprehensive loss Property, plant and equipment: Accumulated depreciation Acquisitions - net of cash acquired Assets acquired in noncash asset exchange Assets acquired in acquisition of subsidiary Liabilities assumed in acquisition of subsidiary Additional paid-in capital Adjustments to net income (loss): Accounts receivable, reserves Impairment expense Current assets of discontinued and held for sale businesses Noncurrent assets of discontinued and held for sale businesses Assets of Disposal Group, Including Discontinued Operation Cash and cash equivalents Cash and cash equivalents, beginning Cash and cash equivalents, ending Cash payments for interest, net of amounts capitalized Increase (decrease) in accounts payable and accrued liabilities (Increase) decrease in accounts receivable Increase (decrease) in income taxes and other income tax payables, net (Increase) decrease in inventory (Increase) decrease in prepaid expenses and other current assets Changes in operating assets and liabilities: CONTINGENCIES AND COMMITMENTS Common stock, shares authorized Common stock, shares outstanding Common stock ($0.01 par value, 1,200,000,000 shares authorized; 673,478,012 issued and 662,786,745 outstanding at December 31, 2008 and 670,339,855 issued and outstanding at December 31, 2007) Comprehensive income COMPREHENSIVE INCOME (LOSS) RISKS AND UNCERTAINTIES CONDENSED FINANCIAL INFORMATION OF REGISTRANT Property, plant and equipment: Construction in progress Cost of Domestic Regulated Electric Cost of sales: non-regulated Cost of Sales: Total cost of sales Cost of Goods Sold, Electric, Total Cost of Transmission, Other Cost of Worldwide Unregulated Electric CURRENT LIABILITIES Total current liabilities LONG-TERM DEBT Provision for deferred taxes Depreciation and amortization DERIVATIVE INSTRUMENTS DILUTED EARNINGS (LOSS) PER SHARE DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS AND HELD FOR SALE BUSINESSES INVESTMENTS IN AND ADVANCES TO AFFILIATES (Gain) loss on disposal and impairment write-down - discontinued operations Income from operations of discontinued businesses, income tax expense Income from operations of discontinued businesses, income tax expense Gain (loss) from disposal of discontinued businesses, income tax benefit Gain (loss) from disposal of discontinued businesses, net of income tax benefit of $-, $8, and $-, respectively Income from operations of discontinued businesses, net of income tax expense of $4, $29 and $83, respectively Proceeds from the sale of businesses Assets disposed of in noncash asset exchange Net equity in earnings of affiliates Effect of exchange rate changes on cash Effect of SFAS No. 158 measurement date change Revenues: Total revenues Payments for deferred financing costs Loss on the extinguishment of debt General and administrative expenses GROSS MARGIN Gross margin Income from Continuing Operations Diluted earnings (loss) per share: income from continuing operations, net of tax Basic earnings (loss) per share: income from continuing operations, net of tax INCOME FROM CONTINUING OPERATIONS Income from Discontinued Operations, Net of Tax Diluted earnings (loss) per share: discontinued operations, net of tax Basic earnings (loss) per share: discontinued operations, net of tax Diluted earnings (loss) per share: extraordinary items, net of tax Basic earnings (loss) per share: extraordinary items, net of tax INCOME TAXES Cash payments for income taxes, net of refunds (Increase) decrease in other assets (Increase) decrease in restricted cash Other intangible assets, net of accumulated amortization of $185 and $173, respectively Interest expense Accrued interest Inventory Investments in and advances to affiliates INVESTMENTS IN DEBT AND EQUITY SECURITIES INVESTMENTS IN MARKETABLE SECURITIES Property, plant and equipment: Land Current liabilities of discontinued and held for sale businesses Long-term liabilities of discontinued and held for sale businesses LIABILITIES AND STOCKHOLDERS' EQUITY TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY Contingencies Minority interest expense MINORITY INTEREST (including discontinued businesses of $- and $-, respectively) FINANCING ACTIVITIES: Net cash provided by (used in) financing activities INVESTING ACTIVITIES: Net cash used in investing activities OPERATING ACTIVITIES: Net cash provided by operating activities Repayment of affiliated loan Net income (loss) Net income (loss) Total increase (decrease) in cash and cash equivalents NEW ACCOUNTING PRONOUNCEMENTS NEW ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED NONCURRENT ASSETS LONG-TERM LIABILITIES Total long-term liabilities GENERAL Adjustments to net income, other Change in unfunded pensions obligation adjustment (net of income tax (benefit) expense of $(26), $5 and $--, respectively) Change in unfunded pensions obligation adjustment (net of income tax (benefit) expense of $(26), $5 and $--, respectively) Change in derivative fair value (including a reclassification of earnings, net of tax) Change in derivative fair value (including a reclassification to earnings of $76, $(52) and $(6), respectively, net of an income tax expense (benefit) of $60, $(70) and $195, respectively) Foreign currency translation adjustment (net of income tax (benefit) expense of $(53), $33 and $13, respectively) Foreign currency translation adjustment, reclassification to earnings Minimum pension liability adjustment (net of income tax benefit of $--, $-- and $2, respectively) Minimum pension liability adjustment, tax benefit Change in derivative fair value, reclassification to earnings Change in fair value of available-for-sale securities (net of income tax expense (benefit) of $--, $3 and $(2), respectively) Change in fair value of available for sale securities, tax Change in fair value of available-for-sale securities, tax expense (benefit) Other current assets Other investing Other financing Other non-operating expense BENEFIT PLANS Prepaid expenses Issuance of common stock Contributions from minority interests Proceeds from the sale of assets Payments to Acquire Short-term Invesments Sale of short-term investments Property, plant and equipment, net Public Utilities, Property, Plant and Equipment, Accumulated Depreciation Purchase of long-term available-for-sale securities Loan advances Affiliate advances and equity investments Capital expenditures Purchase of short-term investments Accounts receivable, net of reserves of $254 and $255, respectively Purchase of treasury stock Distributions to minority interests Restricted cash Accumulated deficit Revenues: regulated Revenues: non-regulated INVENTORY ACQUISITIONS RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS SUBSEQUENT EVENTS VALUATION AND QUALIFYING ACCOUNTS SEGMENTS SEGMENT AND GEOGRAPHIC INFORMATION Short-term investments SIGNIFICANT NEW ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY GOODWILL AND OTHER INTANGIBLE ASSETS SUPPLEMENTAL DISCLOSURES: Extraordinary items, income tax expense CURRENT ASSETS Total current assets Treasury Stock Treasury Stock Common Stock Common Stock PROPERTY, PLANT & EQUIPMENT Property, Plant and Equipment: TOTAL ASSETS Interest income Deferred financing costs, net of accumulated amortization of $272 and $227, respectively Deferred financing costs, accumulated amortization Other long-term liabilities OTHER INCOME AND EXPENSE Deferred income taxes - noncurrent SHARE-BASED COMPENSATION Deferred income taxes-current Deferred income taxes-noncurrent ASSETS Income (Loss) before Extraordinary Items Net Income (Loss) FAIR VALUE OF FINANCIAL INSTRUMENTS SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) Treasury stock, at cost (10,691,267 and 0 shares at December 31, 2008 and 2007, respectively) Effect of SFAS No. 158 recognition of funded status (net of income tax expense of $--, $-- and $60, respectively) BASIC EARNINGS (LOSS) PER SHARE Increase (Decrease) in Stockholders' Equity STOCK REPURCHASE PLAN Common stock, shares issued Other assets BASIC EARNINGS (LOSS) PER SHARE: DILUTED EARNINGS (LOSS) PER SHARE: Earnings Per Share COMMITMENTS Increase (decrease) in other liabilities INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES, EQUITY IN EARNINGS OF AFFILIATES AND MINORITY INTEREST Common stock, par value Treasury stock, shares Foreign currency translation adjustment, tax Foreign currency translation adjustment, tax (benefit) expense Change in derivative fair value, tax expense (benefit) Change in unfunded pensions obligation adjustment, tax Change in unfunded pensions obligation, tax (benefit) expense (Loss) gain on sale of subsidiary stock Income (Loss) from Continuing Operations before Income Taxes, Equity in Earnings of Affiliates and Minority Interest Total stockholders' equity Balance, beginning Balance, ending Receivable from affiliates Income tax expense Foreign currency transaction (losses) gains on net monetary position Pension and other post-retirement liabilities Extraordinary items, net of income tax expense of $-, $- and $- INCOME (LOSS) BEFORE EXTRAORDINARY ITEMS Cumulative effect of change in accounting principle presented on income statement, income tax benefit Cumulative effect of change in accounting principle, net of income tax benefit Basic (loss) earnings per share, cumulative effect of change in accounting principle, net of tax Diluted (loss) earnings per share, cumulative effect of change in accounting principle, net of tax Other expense Other income Additional Paid-In Capital Additional Paid-In Capital Accumulated Deficit Accumulated Deficit Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss (LOSS) INCOME BEFORE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE Stock compensation Acquisition of treasury stock, shares Cumulative effect of adoption of FIN No. 48 Comprehensive Income Comprehensive Income SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES: Acquisition of treasury stock Commitments and Contingent Liabilities (see Note 11 and 12) Shares, beginning balance Shares, ending balance Property, plant and equipment: Electric generation, distribution assets, and other Electric generation, distribution assets and other property, plant and equipment other than Land and Construction in Progress. Property, plant and equipment: Electric generation, distribution assets, and other Assets, Noncurrent, Other Than Property, Plant and Equipment [Abstract] Other assets: Assets, Noncurrent, Other than Property, Plant and Equipment Total other assets Noncurrent assets other than Property, Plant and Equipment. Debt Service Reserves and Other Deposits Reserves set aside for servicing of debt, and other deposits. Debt service reserves and other deposits (Gain) loss from sale of investments and impairment expense Cash flow statement add back for the net realized gain or loss on investments sold during the period, which, for cash flow reporting, is a component of proceeds from investing activities as well as the charge against earnings resulting from the aggregate write down of all assets from their carrying value to their fair value. Minority Interest in Net Income (Loss) of Consolidated Entities, Cash Flow Impact Minority interest expense Cash flow statement add back for the amount of net income (loss) for the period allocated to noncontrolling shareholders, partners, or other equity holders in one or more of the entities included in the reporting entity's consolidated financial statements. Payments to Acquire Emission Allowances Purchase of emission allowances Cash outflows associated with the acquisition of emission allowances. Proceeds from the sales of emission allowances Cash inflows associated with the sale of emission allowances. (Increase) Decrease in Debt Service Reserves and Other Assets The net change during the reporting period in Debt service reserves and other assets as reported in the statement of cash flows. (Increase) decrease in debt service reserves and other assets Borrowings (Repayments) Under the Revolving Credit Facilities, Net The net cash inflows (outflows) associated with the revolving credit facilities. Borrowings (repayments) under the revolving credit facilities, net Payments for Financed Capital Expenditures Financed capital expenditures Cash outflows associated with the extinguishment of financed capital expenditures (operating payables outstanding for greater than 90 days). Liabilities extinguished due to sale of assets Supplemental disclosure of liabilities extinguished due to the sale of assets or businesses. Subsidiary sale of stock The SAB 51 adjustment to additional paid-in capital resulting from the issuance of new shares of common stock by a subsidiary. Stock Issued During Period, Value, Benefit Plans and Exercise of Stock Options and Warrants, Net of Tax The value of stock issued during the period related to benefit plans and the exercise of stock options and warrants, net of tax. Issuance of common stock under benefit plans and exercise of stock options and warrants, (net of income tax benefit of $1, $2 and $--, respectively) Issuance of common stock under benefit plans and exercise of stock options and warrants, tax The tax expense (benefit) of stock issued during the period related to benefit plans and the exercise of stock options and warrants. Issuance of common stock under benefit plans and exercise of stock options and warrants, tax benefit Issuance of common stock under benefit plans and exercise of stock options and warrants, shares The number of shares of stock issued during the period related to benefit plans and the exercise of stock options and warrants, net of tax. Application of Recognition Provisions of Sfas 158 Effect on Accumulated Other Comprehensive Income, Tax The tax expense (benefit) related to the application of the Recognition provision of SFAS 158 effect on accumulated Other Comprehensive Income. Effect of SFAS No. 158 recognition of funded status, tax expense Non-recourse debt-current portion The current portion of the entity's non-recourse debt. Non-recourse debt is secured by the capital stock, physical assets, contracts and cash flows of the related subsidiary. The risk is limited to the respective subsidiary business and is without recourse to the Parent Company and other subsidiaries. Recourse debt-current portion The current portion of the entity's recourse debt. Recourse debt is direct borrowings by the Parent Company that is structurally subordinate to the affiliates' non-recourse debt. Non-recourse debt The non-current portion of the entity's non-recourse debt. Non-recourse debt is secured by the capital stock, physical assets, contracts and cash flows of the related subsidiary. The risk is limited to the respective subsidiary business and is without recourse to the Parent Company and other subsidiaries. Recourse debt The non-current portion of the entity's recourse debt. Recourse debt is direct borrowings by the Parent Company that is structurally subordinate to the affiliates' non-recourse debt. Discontinued Businesses Included in Minority Interest The Minority Interest's share of the discontinued businesses held on the balance sheet. Discontinued businesses included in minority interest Issuance of recourse debt Cash inflows associated with the issuance of recourse debt. Issuance of non-recourse debt Cash inflows associated with the issuance of non-recourse debt. Repayments of Recourse Debt Repayments of recourse debt Cash outflows associated with repayments of recourse debt. Repayments of Non-Recourse Debt Repayments of non-recourse debt Cash outflows associated with repayments of non-recourse debt. Non-recourse debt assumed in acquisition of subsidiary Noncash or Part Noncash Acquisition, Non-Recourse Debt Assumed Supplemental disclosure of non-recourse debt assumed through a noncash or part noncash acquisition. FINANCIAL STATEMENT PRESENTATION Notes to Condensed Consolidated Financial Statements REGULATORY ASSETS & LIABILITIES Detailed information about regulatory assets and liabilities, including current and noncurrent assets created when regulatory agencies permit the deferral of costs to the balance sheet that would otherwise be required to appear on the company's income statement and would be charged against current expenses or revenues, as well as current and noncurrent liabilities created when regulatory agencies permit the deferral of revenues to the balance sheet or resulting from rate actions of a regulator. CONTINGENCIES Disclosures of environmental and other loss contingencies involving any existing condition, situation, or set of circumstances involving uncertainty as of the balance sheet date (or prior to issuance of the financial statements). IMPAIRMENT EXPENSE Disclosure regarding the company's impairment expense in detail. SUBSIDIARY PREFERRED STOCK Disclosure pertaining to subsidiary preferred stock held by the company. EARNINGS PER SHARE Complete disclosure pertaining to an entity's basic and diluted earnings per share. OFF-BALANCE SHEET ARRANGEMENTS AND RELATED PARTY TRANSACTIONS Disclosure pertaining to the company's off-balance sheet arrangements and related party transactions. Cost of Transmission Cost incurred at regulated businesses for transmission operations and maintenance by total kilowatt-hours paid to affiliates and others. Cost of sales: regulated Gain on sale of investments Gain or loss on sale of investments, including marketable securities, equity, and other investments held by the entity. Document Entity Information DISPOSITIONS Description of material business disposals completed during the period, including background, timing, and gain or loss on sale. ACQUISITIONS AND DISPOSITIONS Financial Statement Schedules Disclosure of transaction detail relating to subsidiary preferred stock included in minority interest and the sale of subsidiary stock. SUBSIDIARY STOCK EX-100.CAL 6 aes-20081231_cal.xml EX-100.CAL EX-100.DEF 7 aes-20081231_def.xml EX-100.DEF
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