2.2.0.25falsefalse10601 - Disclosure - Income Taxestruefalsefalse1falsefalseUSDfalsefalse1/1/2010 - 12/31/2010
USD ($)
USD ($) / shares
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<p style="margin-top: 12px; margin-bottom: 0px;"><font style="font-family: Times New Roman;" class="_mt" size="2"><b><a name="txa110441_12"> </a>6. Income Taxes </b></font></p>
<p style="margin-top: 12px; margin-bottom: 0px;"><font style="font-family: Times New Roman;" class="_mt" size="2">Income before income taxes follows (in millions): </font></p>
<p style="margin-top: 0px; margin-bottom: 0px; font-size: 3px;"> </p>
<table class="MetaData" border="0" cellspacing="0" cellpadding="0" width="100%" align="center">
<tr><td width="82%"> </td>
<td valign="bottom" width="2%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="2%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="2%"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr><td style="border-top: #000000 2px solid;" valign="bottom"> <font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid; border-top: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid; border-top: #000000 2px solid;" valign="bottom" colspan="10" align="center"><font style="font-family: Times New Roman;" class="_mt" size="2">Years ended December 31,</font></td>
<td style="border-bottom: #000000 1px solid; border-top: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td></tr>
<tr><td style="border-bottom: #000000 1px solid;" valign="bottom"> <font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>2010</b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"><font style="font-family: Times New Roman;" class="_mt" size="2">2009</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"><font style="font-family: Times New Roman;" class="_mt" size="2">2008</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td></tr>
<tr bgcolor="#cceeff"><td valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">U.S. companies</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>975</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">202</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">801</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td></tr>
<tr><td style="border-bottom: #000000 1px solid;" valign="bottom">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Non-U.S. companies</font></p></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>2,870</b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">1,732</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">2,081</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td></tr>
<tr bgcolor="#cceeff"><td style="border-bottom: #000000 2px solid;" valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Income before income taxes</font></p></td>
<td style="border-bottom: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 2px solid;" valign="top"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>$</b></font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>3,845</b></font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td style="border-bottom: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 2px solid;" valign="top"><font style="font-family: Times New Roman;" class="_mt" size="2">$</font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">1,934</font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td style="border-bottom: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 2px solid;" valign="top"><font style="font-family: Times New Roman;" class="_mt" size="2">$</font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">2,882</font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td></tr></table>
<p style="margin-top: 12px; margin-bottom: 0px;"><font style="font-family: Times New Roman;" class="_mt" size="2">The current and deferred amounts of the provision (benefit) for income taxes follow (in millions): </font></p>
<p style="margin-top: 0px; margin-bottom: 0px; font-size: 3px;"> </p>
<table class="MetaData" border="0" cellspacing="0" cellpadding="0" width="100%" align="center">
<tr><td width="83%"> </td>
<td valign="bottom" width="3%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="3%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="3%"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr><td style="border-top: #000000 2px solid;" valign="bottom"> <font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid; border-top: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid; border-top: #000000 2px solid;" valign="bottom" colspan="10" align="center"><font style="font-family: Times New Roman;" class="_mt" size="2">Years ended December 31,</font></td>
<td style="border-bottom: #000000 1px solid; border-top: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td></tr>
<tr><td style="border-bottom: #000000 1px solid;" valign="bottom"> <font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>2010</b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"><font style="font-family: Times New Roman;" class="_mt" size="2">2009</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"><font style="font-family: Times New Roman;" class="_mt" size="2">2008</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td></tr>
<tr bgcolor="#cceeff"><td valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Current:</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td></tr>
<tr><td valign="top">
<p style="text-indent: -0.5em; margin-left: 1.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Federal</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(8</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">) </font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">4</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td></tr>
<tr bgcolor="#cceeff"><td valign="top">
<p style="text-indent: -0.5em; margin-left: 1.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">State and municipal</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>1</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td></tr>
<tr><td valign="top">
<p style="text-indent: -0.5em; margin-left: 1.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Foreign</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>218</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">152</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">206</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td></tr>
<tr bgcolor="#cceeff"><td valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Deferred:</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td></tr>
<tr><td valign="top">
<p style="text-indent: -0.5em; margin-left: 1.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Federal</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>(7</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>) </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(115</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">) </font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(2,350</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">) </font></td></tr>
<tr bgcolor="#cceeff"><td valign="top">
<p style="text-indent: -0.5em; margin-left: 1.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">State and municipal</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>22</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">34</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(215</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">) </font></td></tr>
<tr><td style="border-bottom: #000000 1px solid;" valign="bottom">
<p style="text-indent: -0.5em; margin-left: 1.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Foreign</font></p></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>53</b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(137</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">) </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(20</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">) </font></td></tr>
<tr bgcolor="#cceeff"><td style="border-bottom: #000000 2px solid;" valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Provision (benefit) for income taxes</font></p></td>
<td style="border-bottom: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 2px solid;" valign="top"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>$</b></font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>287</b></font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td style="border-bottom: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 2px solid;" valign="top"><font style="font-family: Times New Roman;" class="_mt" size="2">$</font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(74</font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">) </font></td>
<td style="border-bottom: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 2px solid;" valign="top"><font style="font-family: Times New Roman;" class="_mt" size="2">$</font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(2,375</font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">) </font></td></tr></table>
<p style="margin-top: 12px; margin-bottom: 0px;"><font style="font-family: Times New Roman;" class="_mt" size="2">Amounts are reflected in the preceding tables based on the location of the taxing authorities. </font></p>
<p style="margin-top: 0px; margin-bottom: 0px;"><font class="_mt" size="1"> </font> </p>
<p style="margin-top: 0px; margin-bottom: 0px;"><font class="_mt" size="1"> </font> </p>
<p style="margin-top: 0px; margin-bottom: 0px;"><font style="font-family: Times New Roman;" class="_mt" size="2">Reconciliation of the U.S. statutory income tax rate to our effective tax rate for continuing operations follows: </font></p>
<p style="margin-top: 0px; margin-bottom: 0px; font-size: 3px;"> </p>
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<tr><td style="border-top: #000000 2px solid;" valign="bottom"> <font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid; border-top: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid; border-top: #000000 2px solid;" valign="bottom" colspan="10" align="center"><font style="font-family: Times New Roman;" class="_mt" size="2">Years ended December 31,</font></td>
<td style="border-bottom: #000000 1px solid; border-top: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td></tr>
<tr><td style="border-bottom: #000000 1px solid;" valign="bottom"> <font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>2010</b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"><font style="font-family: Times New Roman;" class="_mt" size="2">2009</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"><font style="font-family: Times New Roman;" class="_mt" size="2">2008</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td></tr>
<tr bgcolor="#cceeff"><td valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Statutory U.S. income tax rate</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>35.0</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>%</b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">35.0</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">%</font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">35.0</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">%</font></td></tr>
<tr><td valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">State income tax (benefit), net of federal effect</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>0.1</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(0.5</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">)</font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">0.1</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td></tr>
<tr bgcolor="#cceeff"><td valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Tax holidays </font><font style="font-family: Times New Roman;" class="_mt" size="1">(1)</font><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>(3.1</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>) </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(7.3</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">)</font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(5.3</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">)</font></td></tr>
<tr><td valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Investment and other tax credits </font><font style="font-family: Times New Roman;" class="_mt" size="1">(2)</font><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>(0.9</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>) </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(3.7</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">) (6) </font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(0.6</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">)</font></td></tr>
<tr bgcolor="#cceeff"><td valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Rate difference on foreign earnings</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>(2.2</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>) </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(1.2</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">)</font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">2.0</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td></tr>
<tr><td valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Equity earnings impact </font><font style="font-family: Times New Roman;" class="_mt" size="1">(7)</font><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>(16.6</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>)</b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(24.2</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">)</font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(15.4</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">)</font></td></tr>
<tr bgcolor="#cceeff"><td valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Dividend repatriation</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>(6.6</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>) (9) </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(0.2</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">)</font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">1.0</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td></tr>
<tr><td valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Deferred tax adjustment </font><font style="font-family: Times New Roman;" class="_mt" size="1">(8)</font><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>1.5</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(2.1</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">)</font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td></tr>
<tr bgcolor="#cceeff"><td valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Valuation allowances:</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td></tr>
<tr><td valign="top">
<p style="text-indent: -0.5em; margin-left: 1.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Release of prior period valuation allowances</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">0.6</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(89.1</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">) (3) </font></td></tr>
<tr bgcolor="#cceeff"><td valign="top">
<p style="text-indent: -0.5em; margin-left: 1.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Tax (expenses) benefits not recorded on (income) losses </font><font style="font-family: Times New Roman;" class="_mt" size="1">(4)</font><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>0.1</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">0.4</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(8.7</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">)</font></td></tr>
<tr><td valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Audit settlement </font><font style="font-family: Times New Roman;" class="_mt" size="1">(5)</font><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(0.1</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">)</font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(1.4</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">)</font></td></tr>
<tr bgcolor="#cceeff"><td style="border-bottom: #000000 1px solid;" valign="bottom">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Other items, net</font></p></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>0.2</b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(0.5</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">)</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td></tr>
<tr><td style="border-bottom: #000000 2px solid;" valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Effective income tax (benefit) rate</font></p></td>
<td style="border-bottom: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 2px solid;" valign="top"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>7.5</b></font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>%</b></font></td>
<td style="border-bottom: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 2px solid;" valign="top"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(3.8</font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">)%</font></td>
<td style="border-bottom: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 2px solid;" valign="top"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(82.4</font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">)%</font></td></tr></table>
<p style="margin-top: 3px; margin-bottom: 0px;"><font style="font-family: Times New Roman;" class="_mt" size="1">Significant items that cause our effective tax rate to vary from the U.S. statutory rate of 35% are as follows: </font></p>
<table style="border-collapse: collapse;" class="MetaData" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr><td valign="top" width="3%" align="left"><font style="font-family: Times New Roman;" class="_mt" size="1">(1)</font></td>
<td class="MetaData" valign="top" align="left"><font style="font-family: Times New Roman;" class="_mt" size="1">Certain foreign subsidiaries in China and Taiwan are operating under tax holiday arrangements. The nature and extent of such arrangements vary, and the benefits of existing arrangements phase out in future years (through 2014) according to the specific terms and schedules of the relevant taxing jurisdictions. The impact of tax holidays on net income per share on a diluted basis was $<font class="_mt">0.08</font> in 2010, $<font class="_mt">0.09</font> in 2009, and $<font class="_mt">0.10</font> in 2008. </font></td></tr></table>
<table style="border-collapse: collapse;" class="MetaData" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr><td valign="top" width="3%" align="left"><font style="font-family: Times New Roman;" class="_mt" size="1">(2)</font></td>
<td class="MetaData" valign="top" align="left"><font style="font-family: Times New Roman;" class="_mt" size="1">Primarily related to investment tax credits in Taiwan, employment credits in Mexico and research & development credits in U.S. and France. </font></td></tr></table>
<table style="border-collapse: collapse;" class="MetaData" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr><td valign="top" width="3%" align="left"><font style="font-family: Times New Roman;" class="_mt" size="1">(3)</font></td>
<td class="MetaData" valign="top" align="left"><font style="font-family: Times New Roman;" class="_mt" size="1">In 2008, we released $<font class="_mt">2.5</font> billion of valuation allowances resulting from a change in judgment about the realizability of deferred tax assets established in prior years, as described below. </font></td></tr></table>
<table style="border-collapse: collapse;" class="MetaData" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr><td valign="top" width="3%" align="left"><font style="font-family: Times New Roman;" class="_mt" size="1">(4)</font></td>
<td class="MetaData" valign="top" align="left"><font style="font-family: Times New Roman;" class="_mt" size="1">For all three years presented, we generated positive income from continuing operations in the U.S. In 2008, the current year's tax expense on such income was fully offset by the tax benefit of releasing a portion of valuation allowance to reflect the realization of deferred taxes resulting from the generation of U.S. income. The impact of the release of valuation allowance and consequently not recording tax expense on income generated in the U.S. was a reduction in the rate of <font class="_mt">8.6</font> percentage points for 2008. </font></td></tr></table>
<table style="border-collapse: collapse;" class="MetaData" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr><td valign="top" width="3%" align="left"><font style="font-family: Times New Roman;" class="_mt" size="1">(5)</font></td>
<td class="MetaData" valign="top" align="left"><font style="font-family: Times New Roman;" class="_mt" size="1">In 2009 and 2008, we recorded a $<font class="_mt">2</font> million and $<font class="_mt">40</font> million benefit, respectively, related to a favorable tax settlement with the Canadian Revenue Agency. </font></td></tr></table>
<table style="border-collapse: collapse;" class="MetaData" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr><td valign="top" width="3%" align="left"><font style="font-family: Times New Roman;" class="_mt" size="1">(6)</font></td>
<td class="MetaData" valign="top" align="left"><font style="font-family: Times New Roman;" class="_mt" size="1">In 2009, we recorded a $<font class="_mt">37</font> million tax credit for U.S. Research and Experimentation – expenses incurred from 2005-2009. </font></td></tr></table>
<table style="border-collapse: collapse;" class="MetaData" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr><td valign="top" width="3%" align="left"><font style="font-family: Times New Roman;" class="_mt" size="1">(7)</font></td>
<td class="MetaData" valign="top" align="left"><font style="font-family: Times New Roman;" class="_mt" size="1">Equity in earnings of nonconsolidated affiliates reported in the financials net of tax. </font></td></tr></table>
<table style="border-collapse: collapse;" class="MetaData" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr><td valign="top" width="3%" align="left"><font style="font-family: Times New Roman;" class="_mt" size="1">(8)</font></td>
<td class="MetaData" valign="top" align="left"><font style="font-family: Times New Roman;" class="_mt" size="1">In 2009, we recorded an additional deferred tax asset related to tax free OPEB subsidies. In 2010, we recorded $<font class="_mt">56</font> million charge to write-off deferred tax associated with OPEB subsidy due to a law change. </font></td></tr></table>
<table style="border-collapse: collapse;" class="MetaData" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr><td valign="top" width="3%" align="left"><font style="font-family: Times New Roman;" class="_mt" size="1">(9)</font></td>
<td class="MetaData" valign="top" align="left"><font style="font-family: Times New Roman;" class="_mt" size="1">In 2010, we recorded a $<font class="_mt">265</font> million tax benefit for excess foreign tax credits that resulted from the repatriation of current year earnings of certain foreign subsidiaries. </font></td></tr></table></div>
<p style="margin-top: 12px; margin-bottom: 0px;"><font style="font-family: Times New Roman;" class="_mt" size="2">The tax effects of temporary differences and carryforwards that gave rise to significant portions of the deferred tax assets and liabilities follows (in millions): </font></p>
<p style="margin-top: 0px; margin-bottom: 0px; font-size: 3px;"> </p>
<table class="MetaData" border="0" cellspacing="0" cellpadding="0" width="100%" align="center">
<tr><td width="84%"> </td>
<td valign="bottom" width="3%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="3%"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr><td style="border-top: #000000 2px solid;" valign="bottom"> <font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid; border-top: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid; border-top: #000000 2px solid;" valign="bottom" colspan="6" align="center"><font style="font-family: Times New Roman;" class="_mt" size="2">December 31,</font></td>
<td style="border-bottom: #000000 1px solid; border-top: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td></tr>
<tr><td style="border-bottom: #000000 1px solid;" valign="bottom"> <font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>2010</b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"><font style="font-family: Times New Roman;" class="_mt" size="2">2009</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td></tr>
<tr bgcolor="#cceeff"><td valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Loss and tax credit carryforwards</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> 2,253</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"> 2,134</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td></tr>
<tr><td valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Capitalized research and development</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>61</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">96</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td></tr>
<tr bgcolor="#cceeff"><td valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Asset impairments and restructuring reserves</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>164</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">212</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td></tr>
<tr><td valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Postretirement medical and life benefits</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>349</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">396</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td></tr>
<tr bgcolor="#cceeff"><td valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Inventory</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>60</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">37</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td></tr>
<tr><td valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Other accrued liabilities</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>189</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">252</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td></tr>
<tr bgcolor="#cceeff"><td style="border-bottom: #000000 1px solid;" valign="bottom">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Other employee benefits</font></p></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>324</b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">368</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td></tr>
<tr><td valign="top">
<p style="text-indent: -0.5em; margin-left: 1.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Gross deferred tax assets</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>3,400</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">3,495</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td></tr>
<tr bgcolor="#cceeff"><td style="border-bottom: #000000 1px solid;" valign="bottom">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Valuation allowance</font></p></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>(214</b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>) </b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(245</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">) </font></td></tr>
<tr><td style="border-bottom: #000000 1px solid;" valign="top">
<p style="text-indent: -0.5em; margin-left: 1.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Total deferred tax assets</font></p></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>3,186</b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">3,250</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td></tr>
<tr bgcolor="#cceeff"><td style="border-bottom: #000000 1px solid;" valign="bottom">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Intangible and other assets</font></p></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>(22</b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>) </b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(46</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">) </font></td></tr>
<tr><td style="border-bottom: #000000 1px solid;" valign="top">
<p style="text-indent: -0.5em; margin-left: 1.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Total deferred tax liabilities</font></p></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>(22</b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>) </b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(46</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">) </font></td></tr>
<tr bgcolor="#cceeff"><td style="border-bottom: #000000 2px solid;" valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Net deferred tax assets</font></p></td>
<td style="border-bottom: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 2px solid;" valign="top"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>$</b></font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>3,164</b></font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td style="border-bottom: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 2px solid;" valign="top"><font style="font-family: Times New Roman;" class="_mt" size="2">$</font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">3,204</font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td></tr></table>
<p style="margin-top: 0px; margin-bottom: 0px;"><font class="_mt" size="1"> </font> </p>
<p style="margin-top: 0px; margin-bottom: 0px;"><font class="_mt" size="1"> </font> </p>
<p style="margin-top: 0px; margin-bottom: 0px;"><font style="font-family: Times New Roman;" class="_mt" size="2">The net deferred tax assets are classified in our consolidated balance sheets, as follows (in millions): </font></p>
<p style="margin-top: 0px; margin-bottom: 0px; font-size: 3px;"> </p>
<table class="MetaData" border="0" cellspacing="0" cellpadding="0" width="100%" align="center">
<tr><td width="88%"> </td>
<td valign="bottom" width="2%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="2%"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr><td style="border-top: #000000 2px solid;" valign="bottom"> <font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid; border-top: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid; border-top: #000000 2px solid;" valign="bottom" colspan="6" align="center"><font style="font-family: Times New Roman;" class="_mt" size="2">December 31,</font></td>
<td style="border-bottom: #000000 1px solid; border-top: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td></tr>
<tr><td style="border-bottom: #000000 1px solid;" valign="bottom"> <font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>2010</b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"><font style="font-family: Times New Roman;" class="_mt" size="2">2009</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td></tr>
<tr bgcolor="#cceeff"><td valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Current deferred tax assets</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>431</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">235</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td></tr>
<tr><td valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Non-current deferred tax assets</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>2,790</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">2,982</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td></tr>
<tr bgcolor="#cceeff"><td valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Current deferred tax liabilities</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>(8</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>) </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(1</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">) </font></td></tr>
<tr><td style="border-bottom: #000000 1px solid;" valign="bottom">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Non-current deferred tax liabilities</font></p></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>(49</b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>) </b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(12</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">) </font></td></tr>
<tr bgcolor="#cceeff"><td style="border-bottom: #000000 2px solid;" valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Net deferred tax assets</font></p></td>
<td style="border-bottom: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 2px solid;" valign="top"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>$</b></font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>3,164</b></font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td style="border-bottom: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 2px solid;" valign="top"><font style="font-family: Times New Roman;" class="_mt" size="2">$</font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">3,204</font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td></tr></table>
<p style="margin-top: 12px; margin-bottom: 0px;"><font style="font-family: Times New Roman;" class="_mt" size="2">Details on deferred tax assets for loss and tax credit carryforwards at December 31, 2010 follow (in millions): </font></p>
<p style="margin-top: 0px; margin-bottom: 0px; font-size: 3px;"> </p>
<div class="MetaData">
<table border="0" cellspacing="0" cellpadding="0" width="100%" align="center">
<tr><td width="56%"> </td>
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<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="6%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="6%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="6%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="7%"> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr><td style="border-top: #000000 2px solid;" valign="bottom"> <font class="_mt" size="1"> </font></td>
<td style="border-top: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-top: #000000 2px solid;" valign="bottom" colspan="2"> <font class="_mt" size="1"> </font></td>
<td style="border-top: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid; border-top: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid; border-top: #000000 2px solid;" valign="bottom" colspan="14" align="center"><font style="font-family: Times New Roman;" class="_mt" size="2">Expiration</font></td>
<td style="border-bottom: #000000 1px solid; border-top: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td></tr>
<tr><td style="border-bottom: #000000 1px solid;" valign="bottom"> <font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>Amount</b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" nowrap="nowrap" align="center"><font style="font-family: Times New Roman;" class="_mt" size="2">2011-2015</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" nowrap="nowrap" align="center"><font style="font-family: Times New Roman;" class="_mt" size="2">2016-2020</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" nowrap="nowrap" align="center"><font style="font-family: Times New Roman;" class="_mt" size="2">2021-2030</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"><font style="font-family: Times New Roman;" class="_mt" size="2">Indefinite</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td></tr>
<tr bgcolor="#cceeff"><td valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Net operating losses</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>1,372</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">63</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">155</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">970</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">184</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td></tr>
<tr><td valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Capital losses</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>5</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">5</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td></tr>
<tr bgcolor="#cceeff"><td style="border-bottom: #000000 1px solid;" valign="bottom">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Tax credits</font></p></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>876</b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">21</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">677</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">122</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">56</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td></tr>
<tr><td style="border-bottom: #000000 2px solid;" valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Totals as of December 31, 2010</font></p></td>
<td style="border-bottom: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 2px solid;" valign="top"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>$</b></font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>2,253</b></font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td style="border-bottom: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 2px solid;" valign="top"><font style="font-family: Times New Roman;" class="_mt" size="2">$</font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">89</font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td style="border-bottom: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 2px solid;" valign="top"><font style="font-family: Times New Roman;" class="_mt" size="2">$</font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">832</font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td style="border-bottom: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 2px solid;" valign="top"><font style="font-family: Times New Roman;" class="_mt" size="2">$</font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">1,092</font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td style="border-bottom: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 2px solid;" valign="top"><font style="font-family: Times New Roman;" class="_mt" size="2">$</font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">240</font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td></tr></table></div>
<p style="margin-top: 12px; margin-bottom: 0px;"><font style="font-family: Times New Roman;" class="_mt" size="2">The recognition of windfall tax benefits from stock-based compensation deducted on the tax return is prohibited until realized through a reduction of income tax payable. Cumulative tax benefits totaling $<font class="_mt">263</font> million will be recorded in additional paid-in-capital when the net operating loss carry forward is utilized and the windfall tax benefit can be realized. </font></p>
<p style="margin-top: 12px; margin-bottom: 0px;"><font style="font-family: Times New Roman;" class="_mt" size="2">Deferred tax assets are to be reduced by a valuation allowance if, based on the weight of available positive and negative evidence, it is more likely than not (a likelihood of greater than <font class="_mt">50</font> percent) that some portion or all of the deferred tax assets will not be realized. At December 31, 2007, all of our U.S. deferred tax assets had full valuation allowances. </font></p>
<p style="margin-top: 12px; margin-bottom: 0px;"><font style="font-family: Times New Roman;" class="_mt" size="2">In the second quarter of 2008, we concluded that it was more likely than not that we would realize substantially all of our U.S. deferred tax assets because we expect to generate sufficient levels of income in the U.S. As a result, we released $<font class="_mt">2.4</font> billion of valuation allowances on our U.S. deferred tax assets in the second quarter of 2008. We considered all available evidence, both positive and negative, to determine whether, based on the weight of that evidence, a valuation allowance was needed. </font></p>
<p style="margin-top: 12px; margin-bottom: 0px;"><font style="font-family: Times New Roman;" class="_mt" size="2">The evaluation of the realizability of deferred tax assets is inherently subjective. Following are the key items that provided positive evidence to support the release of the valuation allowance for a large portion of our deferred tax assets in the second quarter of 2008: </font></p>
<p style="margin-top: 0px; margin-bottom: 0px; font-size: 12px;"> </p>
<table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr><td valign="top" width="2%" align="left"><font style="font-family: Times New Roman;" class="_mt" size="2">•</font></td>
<td valign="top" width="1%"><font class="_mt" size="1"> </font></td>
<td valign="top" align="left">
<p align="left"><font style="font-family: Times New Roman;" class="_mt" size="2">Positive pre-tax income in the U.S. for the first half of 2008 and the preceding year; </font></p></td></tr></table>
<table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr><td valign="top" width="2%" align="left"><font style="font-family: Times New Roman;" class="_mt" size="2">•</font></td>
<td valign="top" width="1%"><font class="_mt" size="1"> </font></td>
<td valign="top" align="left">
<p align="left"><font style="font-family: Times New Roman;" class="_mt" size="2">The impact of positive results in the Display Technologies operating segment and the royalty income generated from the foreign locations in this segment; </font></p></td></tr></table>
<table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr><td valign="top" width="2%" align="left"><font style="font-family: Times New Roman;" class="_mt" size="2">•</font></td>
<td valign="top" width="1%"><font class="_mt" size="1"> </font></td>
<td valign="top" align="left">
<p align="left"><font style="font-family: Times New Roman;" class="_mt" size="2">The number of years remaining to utilize our net operating loss carryforwards; and </font></p></td></tr></table>
<table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr><td valign="top" width="2%" align="left"><font style="font-family: Times New Roman;" class="_mt" size="2">•</font></td>
<td valign="top" width="1%"><font class="_mt" size="1"> </font></td>
<td valign="top" align="left">
<p align="left"><font style="font-family: Times New Roman;" class="_mt" size="2">Increased confidence in our longer-term forecasted income levels, which were supported by detailed sensitivity analyses. </font></p></td></tr></table>
<p style="margin-top: 12px; margin-bottom: 0px;"><font style="font-family: Times New Roman;" class="_mt" size="2">At June 30, 2008, the following items were considered as negative evidence in our valuation allowance assessment, but were less heavily weighted than our positive evidence: </font></p>
<p style="margin-top: 0px; margin-bottom: 0px; font-size: 12px;"> </p>
<table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr><td valign="top" width="2%" align="left"><font style="font-family: Times New Roman;" class="_mt" size="2">•</font></td>
<td valign="top" width="1%"><font class="_mt" size="1"> </font></td>
<td valign="top" align="left">
<p align="left"><font style="font-family: Times New Roman;" class="_mt" size="2">Uncertainty of future taxable earnings; </font></p></td></tr></table>
<table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr><td valign="top" width="2%" align="left"><font style="font-family: Times New Roman;" class="_mt" size="2">•</font></td>
<td valign="top" width="1%"><font class="_mt" size="1"> </font></td>
<td valign="top" align="left">
<p align="left"><font style="font-family: Times New Roman;" class="_mt" size="2">Historical utilization of deferred tax assets caused largely by non-recurring items; and </font></p></td></tr></table>
<table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr><td valign="top" width="2%" align="left"><font style="font-family: Times New Roman;" class="_mt" size="2">•</font></td>
<td valign="top" width="1%"><font class="_mt" size="1"> </font></td>
<td valign="top" align="left">
<p align="left"><font style="font-family: Times New Roman;" class="_mt" size="2">Economic and consumer demand uncertainty. </font></p></td></tr></table>
<p style="margin-top: 12px; margin-bottom: 0px;"><font style="font-family: Times New Roman;" class="_mt" size="2">U.S. deferred tax liabilities totaled $<font class="_mt">26</font> million at December 31, 2008, and therefore, were not a significant factor in our assessment of the realizability of deferred tax assets. </font></p>
<p style="margin-top: 12px; margin-bottom: 0px;"><font style="font-family: Times New Roman;" class="_mt" size="2">In the second half of 2008, we utilized a portion of the remaining valuation allowance to offset U.S. income tax expense (or benefit) that would otherwise have been recorded on income (or losses) in the U.S. and therefore, reflected no net U.S. income tax expense. As our income for the second half of 2008 was lower than our June 30, 2008 forecast for this period, we adjusted our estimate of valuation allowances by $<font class="_mt">115</font> million in the second half of 2008. In 2009, we began providing U.S. income tax expense (or benefit) on U.S. earnings (losses). </font></p>
<p style="margin-top: 0px; margin-bottom: 0px;"><font class="_mt" size="1"> </font> </p>
<p style="margin-top: 0px; margin-bottom: 0px;"><font style="font-family: Times New Roman;" class="_mt" size="2">Certain shorter-lived deferred tax assets such as those represented by capital loss carry forwards and state tax net operating loss carry forwards, as well as other federal and state tax credits, will remain with a valuation allowance recorded against them as of December 31, 2010, because we cannot conclude that it is more likely than not that we will earn income of the character required to utilize these assets before they expire. U.S. profits of approximately $<font class="_mt">8.3</font> billion will be required to fully realize the deferred tax assets as of December 31, 2010. Of that amount, $<font class="_mt">4.9</font> billion of U.S. profits will be required over the next <font class="_mt">15</font> years to fully realize the deferred tax assets associated with federal net operating loss carry forwards. The remaining deferred tax assets will be realized as the underlying temporary differences reverse over an extended period. The amount of U.S. and foreign deferred tax assets that have remaining valuation allowances at December 31, 2010 and 2009 was $<font class="_mt">214</font> million and $<font class="_mt">245</font> million, respectively. </font></p>
<p style="margin-top: 12px; margin-bottom: 0px;"><font style="font-family: Times New Roman;" class="_mt" size="2">We currently provide income taxes on the earnings of foreign subsidiaries and affiliated companies to the extent these earnings are currently taxable or expected to be remitted. As of December 31, 2010, taxes have not been provided on approximately $<font class="_mt">8.9</font> billion of accumulated foreign unremitted earnings that are expected to remain invested indefinitely. It is not practical to calculate the unrecognized deferred tax liability on those earnings. Our cash, cash equivalents, and short-term investments are held in various locations throughout the world. At December 31, 2010, about half of the consolidated amount was held outside of the U.S. Almost all of the amounts held outside of the U.S. are available for repatriation subject to relevant tax consequences. We utilize a variety of tax planning and financing strategies to ensure that our worldwide cash is available in the locations in which it is needed. </font></p>
<p style="margin-top: 12px; margin-bottom: 0px;"><font style="font-family: Times New Roman;" class="_mt" size="2">The following is a tabular reconciliation of the total amount of unrecognized tax benefits (in millions): </font></p>
<p style="margin-top: 0px; margin-bottom: 0px; font-size: 3px;"> </p>
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<td style="border-bottom: #000000 1px solid; border-top: #000000 2px solid;" valign="bottom" colspan="2" align="center"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>2010</b></font></td>
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<td style="border-bottom: #000000 1px solid; border-top: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid; border-top: #000000 2px solid;" valign="bottom" colspan="2" align="center"><font style="font-family: Times New Roman;" class="_mt" size="2">2009</font></td>
<td style="border-bottom: #000000 1px solid; border-top: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td></tr>
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<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Balance at January 1</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>40</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">40</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td></tr>
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<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Additions based on tax positions related to the current year</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>2</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">6</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td></tr>
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<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Additions for tax positions of prior years</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>1</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">14</font></td>
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<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Reductions for tax positions of prior years</font></p></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>(13</b></font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>) </b></font></td>
<td valign="bottom"><font class="_mt" size="1"> </font></td>
<td valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(4</font></td>
<td valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">) </font></td></tr>
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<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Settlements and lapse of statute of limitations</font></p></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>(7</b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>) </b></font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">(16</font></td>
<td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2">) </font></td></tr>
<tr><td style="border-bottom: #000000 2px solid;" valign="top">
<p style="text-indent: -0.5em; margin-left: 0.5em;"><font style="font-family: Times New Roman;" class="_mt" size="2">Balance at December 31</font></p></td>
<td style="border-bottom: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 2px solid;" valign="top"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>$</b></font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2"><b>23</b></font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"><b> </b></font></td>
<td style="border-bottom: #000000 2px solid;" valign="bottom"><font class="_mt" size="1"> </font></td>
<td style="border-bottom: #000000 2px solid;" valign="top"><font style="font-family: Times New Roman;" class="_mt" size="2">$</font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" align="right"><font style="font-family: Times New Roman;" class="_mt" size="2">40</font></td>
<td style="border-bottom: #000000 2px solid;" valign="top" nowrap="nowrap"><font style="font-family: Times New Roman;" class="_mt" size="2"> </font></td></tr></table></div>
<p style="margin-top: 12px; margin-bottom: 0px;"><font style="font-family: Times New Roman;" class="_mt" size="2">Included in the balance at December 31, 2010 and 2009 are $<font class="_mt">18</font> million and $<font class="_mt">35</font> million, respectively, of unrecognized tax benefits that would impact our effective tax rate if recognized. </font></p>
<p style="margin-top: 12px; margin-bottom: 0px;"><font style="font-family: Times New Roman;" class="_mt" size="2">We recognize accrued interest and penalties associated with uncertain tax positions as part of tax expense. For the years ended December 31, 2010, 2009 and 2008, the amounts recognized in interest expense and income were immaterial. The amounts accrued at December 31, 2010 and 2009 for the payment of interest and penalties were not significant. </font></p>
<p style="margin-top: 12px; margin-bottom: 0px;"><font style="font-family: Times New Roman;" class="_mt" size="2">While we expect the amount of unrecognized tax benefits to change in the next 12 months, we do not expect the change to have a significant impact on the results of operations or our financial position. </font></p>
<p style="margin-top: 12px; margin-bottom: 0px;"><font style="font-family: Times New Roman;" class="_mt" size="2">Corning Incorporated, as the common parent company, and all 80%-or-more-owned U.S. subsidiaries join in the filing of consolidated U.S. federal income tax returns. All such returns for periods ended through December 31, 2004, have been audited by and settled with the Internal Revenue Service (IRS). The statute of limitations to audit the 2005 and 2006 U.S. federal income tax expired in 2009 and 2010, respectively, except to the extent that the loss generated in 2005 is utilized in a subsequent year. In that instance, the statute for the 2005 year may be re-opened. </font></p>
<p style="margin-top: 12px; margin-bottom: 0px;"><font style="font-family: Times New Roman;" class="_mt" size="2">Corning Incorporated and U.S. subsidiaries file income tax returns on a combined, unitary or stand-alone basis in multiple state and local jurisdictions, which generally have statutes of limitations ranging from <font class="_mt">3</font> to <font class="_mt">5</font> years. Various state income tax returns are currently in the process of examination or administrative appeal. </font></p>
<p style="margin-top: 12px; margin-bottom: 0px;"><font style="font-family: Times New Roman;" class="_mt" size="2">Our foreign subsidiaries file income tax returns in the countries in which they have operations. Generally, these countries have statutes of limitations ranging from <font class="_mt">3</font> to <font class="_mt">7</font> years. Years still open to examination by foreign tax authorities in major jurisdictions include Japan (2006 onward) and Taiwan (2008 onward). </font></p> </div>6. Income Taxes
Income before income taxes follows (in millions):
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