1.0.0.3
false
Consolidating Financial Information
false
1
$
false
false
Shares
Standard
http://www.xbrl.org/2003/instance
shares
xbrli
0
USD
Standard
http://www.xbrl.org/2003/iso4217
USD
iso4217
0
USDEPS
Divide
http://www.xbrl.org/2003/iso4217
USD
iso4217
http://www.xbrl.org/2003/instance
shares
xbrli
0
2
0
lo_ConsolidatingFinancialInformationAbstract
lo
false
na
duration
string
Consolidating Financial Information.
false
false
false
false
false
true
false
false
false
|
1
false
false
0
0
false
false
|
Consolidating Financial Information.
false
3
1
us-gaap_ScheduleOfCondensedFinancialStatementsTextBlock
us-gaap
true
na
duration
string
No definition available.
false
false
false
false
false
false
false
false
false
|
1
false
false
0
0
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 9 - us-gaap:ScheduleOfCondensedFinancialStatementsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>9. Consolidating Financial Information</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In June 2009, Lorillard Tobacco issued Notes (see Note 7 for description of the Notes), which
are unconditionally guaranteed by the Company, as primary obligor, for the payment and performance
of Lorillard Tobacco’s obligation in connection therewith.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following sets forth the condensed consolidating balance sheets as of September 30, 2009
and December 31, 2008, condensed consolidating statements of income for the three and nine months
ended September 30, 2009 and 2008, and condensed consolidating statements of cash flows for the
nine months ended September 30, 2009 and 2008 for the Company as parent guarantor (herein referred
to as “Parent”), Lorillard Tobacco (herein referred to as “Issuer”) and all other non-guarantor
subsidiaries of the Company and Lorillard Tobacco. These condensed consolidating financial
statements were prepared in accordance with Rule 3-10 of SEC Regulation S-X, “Financial Statements
of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.” Lorillard
accounts for investments in these subsidiaries under the equity method of accounting.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In September 2009, the unaudited condensed consolidating statements of income for the three
and nine months ended September 30, 2008 were revised by an immaterial amount. The revised amounts
include reclassifications of $2 million and $5 million from selling, general and administrative
expense to cost of sales to more accurately reflect manufacturing costs for the three and nine
month periods, respectively, on the Issuer’s statements of income. There was no impact on
operating income or net income.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The unaudited
condensed consolidated statement of cash flows for the nine months ended
September 30, 2009 includes immaterial reclassifications of amounts previously
disclosed for the three months ended March 31, 2009 and the six months
ended June 30,
2009 for dividends paid from investing cash flows to financing cash flows and
return of capital from financing cash flows to investing cash flows. These immaterial
reclassifications did not impact operating cash flows for any consolidating entity
and had no impact on the consolidated statement of cash flows.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 18pt"><b>Condensed Consolidating Balance Sheets<br />
September 30, 2009<br />
(In millions)<br />
(Unaudited)</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">All</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Total</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Other</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Consolidating</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Parent</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Issuer</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Subsidiaries</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Adjustments</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Consolidated</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Cash and cash equivalents
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">284</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">788</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">442</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1,514</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Accounts receivable, less allowances of $3
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other receivables
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Inventories
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">297</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">297</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Deferred income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">456</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">456</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Other current assets
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">79</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">79</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total current assets
</div></td>
<td> </td>
<td> </td>
<td align="right">284</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,658</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">442</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,384</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Investment in subsidiaries
</div></td>
<td> </td>
<td> </td>
<td align="right">118</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">482</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(600</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Plant and equipment
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">231</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">231</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Prepaid pension assets
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">38</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">38</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Deferred income taxes
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">64</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">64</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Other assets
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">44</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total assets
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">397</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">2,502</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">462</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(600</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$</td>
<td align="right">2,761</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Liabilities and Shareholders’ Equity:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Accounts and drafts payable
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">18</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">18</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Accrued liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right">16</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">345</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(55</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">306</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Settlement costs
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">884</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">884</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total current liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right">16</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,252</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(51</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,217</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Long-term debt
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">751</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">751</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Postretirement pension, medical and
life insurance benefits
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">312</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">312</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Other liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">87</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">100</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right">16</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,402</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(38</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,380</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Shareholders’ Equity:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Common stock
</div></td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Additional paid-in capital
</div></td>
<td> </td>
<td> </td>
<td align="right">232</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">273</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">214</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(487</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">232</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Earnings retained in the business
</div></td>
<td> </td>
<td> </td>
<td align="right">1,198</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(24</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">286</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(262</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,198</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Accumulated other comprehensive loss
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(149</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(149</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">149</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(149</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">1,283</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">100</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">500</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(600</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,283</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Treasury stock
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(902</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(902</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total shareholders’ equity
</div></td>
<td> </td>
<td> </td>
<td align="right">381</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">100</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">500</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(600</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">381</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total liabilities and shareholders’ equity
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">397</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">2,502</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">462</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(600</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$</td>
<td align="right">2,761</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 18pt"><b>Condensed Consolidating Balance Sheets<br />
December 31, 2008<br />
(In millions)</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">All</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Total</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Other</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Consolidating</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Parent</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Issuer</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Subsidiaries</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Adjustments</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Consolidated</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Cash and cash equivalents
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">19</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">565</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">607</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1,191</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Accounts receivable, less allowances of $2
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other receivables
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">53</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">55</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Inventories
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">255</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">255</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Deferred income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">454</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">454</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total current assets
</div></td>
<td> </td>
<td> </td>
<td align="right">19</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,334</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">609</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,962</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Investment in subsidiaries
</div></td>
<td> </td>
<td> </td>
<td align="right">617</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">641</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,258</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Plant and equipment
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">218</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">218</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Prepaid pension assets
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Deferred income taxes
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">71</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">71</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other assets
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">19</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">34</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total assets
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">631</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">2,319</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">629</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(1,258</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$</td>
<td align="right">2,321</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Liabilities and Shareholders’ Equity:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Accounts and drafts payable
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">30</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">30</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Accrued liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">304</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(49</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">255</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Settlement costs
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">974</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">974</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total current liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,322</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(49</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,273</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Postretirement pension, medical and
life insurance benefits
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">317</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">317</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Other liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">82</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">100</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,721</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(31</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,690</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Shareholders’ Equity:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Common stock
</div></td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Additional paid-in capital
</div></td>
<td> </td>
<td> </td>
<td align="right">222</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">263</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">315</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(578</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">222</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Earnings retained in the business
</div></td>
<td> </td>
<td> </td>
<td align="right">965</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">493</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">345</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(838</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">965</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Accumulated other comprehensive loss
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(158</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(158</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">158</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(158</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">1,031</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">598</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">660</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,258</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,031</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Treasury shares
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(400</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(400</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total shareholders’ equity
</div></td>
<td> </td>
<td> </td>
<td align="right">631</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">598</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">660</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,258</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">631</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total liabilities and shareholders’ equity
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">631</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">2,319</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">629</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(1,258</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$</td>
<td align="right">2,321</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 18pt"><b>Condensed Consolidating Statements of Income<br />
For the Three Months Ended September 30, 2009<br />
(In millions)<br />
(Unaudited)</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">All</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Total</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Other</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Consolidating</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Parent</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Issuer</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Subsidiaries</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Adjustments</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Consolidated</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net sales (including excise taxes of $466)
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1,419</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1,419</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cost of sales
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">931</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">931</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr style="font-size: 10pt">
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Gross profit
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">488</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">488</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Selling, general and administrative (1)
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">253</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(157</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">96</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating income
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">235</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">157</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">392</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Investment income
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest expense
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(15</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(15</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income before taxes
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">221</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">157</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">378</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">86</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">57</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">143</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Equity in earnings of subsidiaries
</div></td>
<td> </td>
<td> </td>
<td align="right">235</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">100</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(335</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">235</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">235</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">100</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(335</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$</td>
<td align="right">235</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>Includes intercompany royalties between Issuer and other subsidiaries of a corresponding
amount.</td>
</tr>
</table>
<div align="center" style="font-size: 10pt; margin-top: 6pt"><b>Condensed Consolidating Statements of Income<br />
For the Nine Months Ended September 30, 2009<br />
(In millions)<br />
(Unaudited)</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">All</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Total</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Other</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Consolidating</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Parent</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Issuer</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Subsidiaries</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Adjustments</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Consolidated</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net sales (including excise taxes of $1,101)
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">3,855</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">3,855</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cost of sales
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,430</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,430</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Gross profit
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,425</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,425</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Selling, general and administrative (1)
</div></td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">735</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(454</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">282</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating income
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">690</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">454</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,143</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Investment income
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest expense
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(17</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(18</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income before taxes
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">676</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">454</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,129</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">258</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">165</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">423</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Equity in earnings of subsidiaries
</div></td>
<td> </td>
<td> </td>
<td align="right">707</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">289</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(996</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">706</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">707</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">289</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(996</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$</td>
<td align="right">706</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>Includes intercompany royalties between Issuer and other subsidiaries of a corresponding
amount.</td>
</tr>
</table>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 18pt"><b>Condensed Consolidating Statements of Income<br />
For the Three Months Ended September 30, 2008<br />
(In millions)<br />
(Unaudited)</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">All</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Total</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Other</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Consolidating</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Parent</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Issuer</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Subsidiaries</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Adjustments</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Consolidated</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net sales
(including excise taxes of $189)
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1,125</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1,125</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cost of sales
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">655</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">655</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Gross profit
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">470</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">470</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Selling, general and administrative (1)
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">240</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(152</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">88</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating income
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">230</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">152</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">382</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Investment income
</div></td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest expense
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income before taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">232</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">153</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">386</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">93</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">55</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">149</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Equity in earnings of subsidiaries
</div></td>
<td> </td>
<td> </td>
<td align="right">237</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">98</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(335</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">237</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">237</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">98</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(335</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$</td>
<td align="right">237</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>Includes intercompany royalties between Issuer and other subsidiaries of a corresponding
amount.</td>
</tr>
</table>
<div align="center" style="font-size: 10pt; margin-top: 18pt"><b>Condensed Consolidating Statements of Income<br />
For the Nine Months Ended September 30, 2008<br />
(In millions)<br />
(Unaudited)</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">All</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Total</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Other</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Consolidating</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Parent</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Issuer</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Subsidiaries</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Adjustments</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Consolidated</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net sales
(including excise taxes of $536)
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">3,116</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">3,116</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cost of sales
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,839</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,839</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Gross profit
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,277</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,277</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Selling, general and administrative (1)
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">702</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(426</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">276</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating income
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">575</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">426</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,001</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Investment income
</div></td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">20</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest expense
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income before taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">584</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">434</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,019</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income taxes
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">234</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">157</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">390</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Equity in earnings of subsidiaries
</div></td>
<td> </td>
<td> </td>
<td align="right">627</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">277</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(904</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">629</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">627</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">277</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(904</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$</td>
<td align="right">629</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>Includes intercompany royalties between Issuer and other subsidiaries of a corresponding
amount.</td>
</tr>
</table>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 18pt"><b>Condensed Consolidating Statements of Cash Flows<br />
For the Nine Months Ended September 30, 2009<br />
(In millions)<br />
(Unaudited)</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">All</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Total</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Other</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Consolidating</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Parent</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Issuer</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Subsidiaries</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Adjustments</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Consolidated</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash flows from operating activities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">706</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">707</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">289</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(996</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$</td>
<td align="right">706</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Adjustments to reconcile net income to net cash
provided by operating activities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Equity income from subsidiaries
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(707</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(289</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">996</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Depreciation and amortization
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(3</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Share-based compensation
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Changes in operating assets and liabilities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Accounts receivable
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">23</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">23</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Inventories
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(42</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(42</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Accounts payable and accrued liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right">17</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">27</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(6</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">38</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Settlement costs
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(89</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(89</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(84</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(84</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other assets
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Postretirement health and life benefits
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(10</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(10</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Return on investment in subsidiaries
</div></td>
<td> </td>
<td> </td>
<td align="right">1,224</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">350</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,574</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net cash provided by (used in) operating activities
</div></td>
<td> </td>
<td> </td>
<td align="right">1,240</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">633</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">286</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,574</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">585</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash flows from investing activities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Return of capital
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">100</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(100</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Additions to plant and equipment
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(39</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(39</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net cash provided by (used in) investing activities
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">61</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(100</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(39</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash flows from financing activities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Dividends paid
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(473</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,224</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(450</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,674</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(473</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Shares repurchased
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(502</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(502</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Proceeds from issuance of long-term debt
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">750</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">750</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Debt issuance costs
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Excess tax benefits from share-based arrangements
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net cash provided by (used in) financing activities
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(975</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(472</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(450</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,674</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(223</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Change in cash and cash equivalents
</div></td>
<td> </td>
<td> </td>
<td align="right">265</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">222</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(164</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">323</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash and cash equivalents, beginning of year
</div></td>
<td> </td>
<td> </td>
<td align="right">19</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">566</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">606</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,191</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash and cash equivalents, end of period
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">284</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">788</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">442</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1,514</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 18pt"><b>Condensed Consolidating Statements of Cash Flows<br />
For the Nine Months Ended September 30, 2008<br />
(In millions)<br />
(Unaudited)</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">All</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Total</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Other</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Consolidating</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Parent</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Issuer</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Subsidiaries</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Adjustments</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Consolidated</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash flows from operating activities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">629</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">627</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">277</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(904</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$</td>
<td align="right">629</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Adjustments to reconcile net income to net cash
provided by operating activities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Equity income from subsidiaries
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(627</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(277</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">904</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Depreciation and amortization
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred income taxes
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">85</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">84</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Share-based compensation
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Investment income
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Changes in operating assets and liabilities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Accounts receivable
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(13</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(13</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Inventories
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(38</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(38</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Accounts payable and accrued liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right">32</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(10</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(10</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Settlement costs
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(24</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(24</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">44</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">56</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Other assets
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Postretirement health and life benefits
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(8</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(8</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Return on investment in subsidiaries
</div></td>
<td> </td>
<td> </td>
<td align="right">1,001</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">580</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,581</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net cash provided by (used in) operating activities
</div></td>
<td> </td>
<td> </td>
<td align="right">1,034</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">996</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">279</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,581</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">728</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash flows from investing activities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Purchases of investments
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(550</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(250</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(800</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Proceeds from maturities of investments
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">500</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">500</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Proceeds from sales of investments
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">48</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">480</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">528</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Return of capital
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">150</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(150</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Additions to plant and equipment
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(35</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(35</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net cash provided by investing activities
</div></td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">113</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">230</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(150</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">193</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash flows from financing activities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Dividends paid
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(649</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,001</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(730</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,731</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(649</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Shares repurchased
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(274</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(274</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net cash used in financing activities
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(923</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,001</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(730</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,731</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(923</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Change in cash and cash equivalents
</div></td>
<td> </td>
<td> </td>
<td align="right">111</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">108</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(221</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash and cash equivalents, beginning of year
</div></td>
<td> </td>
<td> </td>
<td align="right">64</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">416</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">730</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,210</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash and cash equivalents, end of period
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">175</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">524</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">509</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right"><font style="font-family: Symbol">¾</font></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1,208</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="19" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note
false
false
|
No definition available.
No authoritative reference available.
false
false
1
2
false
UnKnown
UnKnown
UnKnown
false
true