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&lt;p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"&gt;
&lt;/p&gt;
&lt;p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;b&gt;9. CONTINGENT
LIABILITIES&lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 2%"&gt;
&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;b&gt;&lt;i&gt;Legal
Proceedings&lt;/i&gt;&lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"&gt;
&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;In addition to
commitments and obligations in the ordinary course of business, the
Company is subject to various claims, other pending and potential
legal actions for damages, investigations relating to governmental
laws and regulations and other matters arising out of the normal
conduct of its business. When accruing for contingencies related to
litigation, the Company considers the degree of probability and
range of possible loss. An estimated loss contingency is accrued in
the Company&amp;#x2019;s consolidated financial statements if it is
probable that a liability has been incurred and the amount of the
loss can be reasonably estimated. Because litigation is inherently
unpredictable and unfavorable resolutions could occur, assessing
contingencies is highly subjective and requires judgments about
future events. The Company regularly reviews contingencies to
determine the adequacy of the accruals and related disclosures. The
amount of ultimate loss may differ from these estimates. It is
possible that cash flows or results of operations could be
materially affected in any particular period by the unfavorable
resolution of one or more of these contingencies.&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"&gt;
&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;The Company
recognizes income from the favorable outcome of legal settlements,
judgments or other resolution of legal and regulatory matters when
the associated cash or assets are received.&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"&gt;
&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;Estimated loss
contingencies related to litigation and regulatory matters and
income from favorable resolution of legal and regulatory matters
are recognized in litigation (credits)/charges, net in the
Company&amp;#x2019;s condensed consolidated statements of
earnings.&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 2%"&gt;
&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;b&gt;&lt;i&gt;Income
Taxes&lt;/i&gt;&lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"&gt;
&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;See Note 8 for
discussion of contingencies related to the Company&amp;#x2019;s income
taxes.&lt;/font&gt;&lt;/p&gt;
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&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;b&gt;&lt;i&gt;Other
Matters&lt;/i&gt;&lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"&gt;
&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;The Company
also becomes involved from time-to-time in litigation and
regulatory matters incidental to its business, including, but not
limited to, personal injury claims, employment matters, commercial
disputes, intellectual property matters, inclusion as a potentially
responsible party for environmental clean-up costs, and litigation
in connection with acquisitions and divestitures. The Company
intends to vigorously defend itself against such litigation and
does not currently believe that the outcome of any such litigation
will have a material adverse effect on the Company&amp;#x2019;s
consolidated financial statements.&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"&gt;
&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;From time to
time, the Company receives subpoenas or requests for information
from various government agencies relating to the business,
accounting or disclosure practices of customers or suppliers. The
responses to these subpoenas and requests for information sometimes
require considerable time and effort, and can result in
considerable costs being incurred by the Company. The Company
expects to incur additional costs in the future in connection with
existing and future requests. Such subpoenas and requests also can
lead to the assertion of claims or the commencement of legal
proceedings against the Company.&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"&gt;
&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;Also from time
to time, the Company may determine that products marketed,
manufactured, or distributed by the Company may not meet Company
specifications, published standards or regulatory requirements. In
such circumstances, the Company will investigate and take
appropriate corrective action. Such actions can lead to costs to
repair or replace affected products, temporary interruptions in
product sales and action by regulators, and can impact results of
operations.&lt;/font&gt;&lt;/p&gt;
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          <NonNumericTextHeader>9. CONTINGENT
LIABILITIES

Legal
Proceedings

In addition to
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